valerie tytel joins us. what's the latest?ie: we're seeing dollar-yen backup of 139 after a bout of strength from the yen, as jgb yields leapt higher. we are now seeing weakness. it has been a whipsaw of a morning. jgb yields are now 10 basis points higher, trading almost five basis points above the original 50 basis point target. we have the 10-year yield six basis points above the previous target from the bank of japan. and then japanese banks, again a steeper yield curve is a good thing for japanese banks. we're seeing japanese banks surge this morning, up 3.8%. one of the best sess of this year for those banks. lastly, u.s. 10-year yields are back below 4%, after searching to 4.08 yesterday they are headed for year-to-date highs after strong data and speculation on the yield curve control break. we're seeing them just shy of 4% at 3.99. a bit of a whipsaw in markets this morning, lizzy. lizzy: thanks for that update. here's what we're watching out for the rest of the day. at 10:00 a.m. u.k. time we get eurozone consumer co

joining is bloomberg's lizzy burden valerie tytel. we should start with news out of china supporting the currency. lizzy: the yuan is jumping, china stepped up its support. they have also changed the capital curbs to attract inflows, and on top of that beijing is considering easing home buying restrictions in some of china's biggest cities. all of this in response to the disappointing gdp figures on monday. dani: china is not ok with continued weakness but looking at the equity market, it is down with not much of a reaction, and it goes to the question, is this enough? are we putting a band-aid over the issues? the property market is huge but the analyst commentary seems to say this is not large-scale enough to change the fundamental picture. valerie: we might have to wait for the meeting next friday for any formal announcements. speculation is it will not be enough to boost the equity market or enough to return foreign inflows, even with the new capital curbs. overnight there were options that expired at 7:20, and perhaps the pboc is

. >> bloomberg's charlotte yang there, time for a roundtable with valerie tytel and joe easton. i want to dive deeper into that china news with both of you. the polyp euro did not quite announced large stimulus, this is no bazooka but it is a strong recognition of the economic challenges facing china. what you did not hear yesterday was president xi's signature slogan, how is it for a living not speculation? we have got top leaders holding another meeting today. should we expect more news about this stimulus or key roles like the pboc governor or foreign minister? >> i think that what we are expecting, there is another meeting today with the fomc, the committee that meets outside of the broader committee. they were actually expecting to make some changes to leadership in terms of the pboc governor, he was chosen as party secretary not too long ago and had been widely tapped as the next pboc governor. i think it's too early to see if there's anything there or with the foreign minister that has been missing in action for the last month. i don't know if going to see any stimulus me

that is lizzy burden and valerie tytel. you can get a roundup of the stories in today's addition of daybreak. channel survivors -- i just went to come back to asml because we are looking out for any commentary on china and american restrictions. the ceo and the earnings release that upcoming u.s. measures to close some loopholes and restrict tech exports to china measures will not have any major impact. this comes off the back of earnings where they have upgraded their view muffle your guidance with net sales growth around 30% saying the shape of the debt chip recovery growth is unclear in market segments are more cautious currently. we will go back to another set of earnings, the u.s. bank earnings as wall street majors reports and we will discuss bank of america in their soaring profit and morgan stanley's wealth units topping estimates. we will discuss goldman before the bell next on bloomberg. ♪ >> it is not a given that you have a recession. with unemployment where it is, and inflation coming down under 4%, decent econ

joining me is bloomberg's valerie tytel. feel like we can exhort literally every topic except cpi today. valerie: it's going to be a big one, dani. my i will be on that month on month print. the consensus is going for a softer number on that core cpi. we need to get to a 0.2% month on month pace for the fed to feel comfortable about the inflation fight has been won. we hear from not one, not two, but three fed speakers, we have neel kashkari, raphael bostic, and loretta mester. the market will be listening to any change in direction. dani: when we got the fed minutes last week, we saw the pause narrative was not as agreed-upon as we originally thought. what i was looking at earlier in the week, used car prices coming in. the new york fed's one-year inflation expectation also came in. that seems like it would lend itself to a cooler print this time, but the market is shaping up that way, which makes it a dangerous play if it goes the other way. >> the key concern out there is we are now passed of the easy part of disinflation.

time now for our roundtable as always with bloomberg's valerie tytel.let's get back to earnings because it was a big night for tech, alphabet leading with a revenue beat as google fence off ai competition. meanwhile microsoft fell on tepid sales weighed down by slowing demand for cloud services and snap tumbled after it forecast a wider third-quarter loss than expected. we get meta-earnings later at the first and say i fever broke out, what are you expecting? >> ai fever, let's see if that fever is still running hot. to me it is all about keeping this bull market going. we are so close to those all-time records in the s&p. just 5% away, the nasdaq is just 7% away and the dow jones is within 4% of all-time highs. a lot continuation of this equity optimism, this equity will market depends on how tech shares and tech earnings go this week. met up being one of the big beneficiaries of the ai tech boom, whatever you want to call it of the magnificent seven. they are the second-highest returning year to date, over 150 percent. i think a lot of continuation of

with this morning's roundtable is valerie tytel and jill disis. great to have you both this morning but we have got to start with cpi. the numbers year-over-year comes in to 3%, down six percentage points from the june 2022 peak. core inflation declined to its lowest year-over-year rate since october 2021. jill, it seems reasonable to ask, could july be the last rate hike from the fed? jill: it certainly could. we have heard so many times from jay powell and all these fed officials. you look at new york then-president john williams saying we need to look at the data to see how to make these decisions going forward. powell has said we're looking at live decisions later this year. even though the dot plot implies, the rate hike, they have set a lot of that is contingent on what the data shows. this inflation data is good. obviously, energy prices rising high in 2022 off of the back of ukraine but this is a pretty positive sign if we're looking to see when rate hikes will let off. >> it was a great sign if you look at that key component powell has po

with our roundtable is lizzy burden and valerie tytel. lizzy, we have all been waiting for what basil iii regulations would look like. lizzy: the new rules for capital requirements that u.s. bank regulators will announce next week will be stricter than the international standard. it is part of the u.s. version of basel three, the post-financial crisis agreement. dani: the risk weightings will be changing, not necessarily capital requirements. we look at balance sheet and design risk to everything. regulators are saying for residential mortgages you will not get higher risk assigned to them. valerie: then new information was this focus on residential capital they have to hold against that. it is 20 percentage points higher than the basil three framework. the other key thing is this new regulation will target banks with just $100 billion in assets. before the stricter capital controls from u.s. regulators did not kick in until you were $250 billion worth of assets. it will be more to handle for u.s. regional banks. dani: we will get regiona

joining us is valerie tytel of the bloomberg markets team. i mentioned it was a weird day for stocks. today will be equally as weird. we used to call it triple which impaired now we are just calling it options expiry. $2.4 trillion of options are set to expire plus we had the nasdaq rebalancing to take away magnificent seven weightings. with all that technically, it could be an odd and volatile date and equity market. valerie: we see perhaps volume spike and less liquid stocks given that affects today. -- given that op ex today. today is the last day for passive funds to rebalance their own portfolios. the thing about this is we have known about the rebalancing for almost three weeks and nasdaq announced on july 3. the thing that is still in question is what exactly the new weights will be. they will snap the market caps at the close today and use that to rebalance the stocks. it is uncertain but the market has known about it for quite a while. i'm not sure what effect we will see. the nasdaq sunk over 2% yesterday and maybe that caused -- th