Speaker 1: Live from the Bloomberg Interactive Burger Studios. This is Bloomberg
Speaker 1: day Break for Tuesday, December two. Coming up this hour,
Speaker 1: the Bank of Japan shocks markets with a big policy pivot.
Speaker 1: In January six, committee recommends severe punishment for former President Trump.
Speaker 1: F t X co founder Sam Bankman Freed could be
Speaker 1: on his way home from the Bahamas, and Twitter turmoil
Speaker 1: continues after Elon must stay silent over his role at
Speaker 1: the company. Los Angeles jury finds disgraced movie mogul Harvey
Speaker 1: Weinstein guilty of break plus protesters target a New York
Speaker 1: councilman for supporting drag Story Hour. I'm Michael laugh More Ahead,
Speaker 1: I'm John stash Our Sports. The Factors beat the Rams.
Speaker 1: The Islanders got shot out the Red Hot Necks. So
Speaker 1: it's Golden State tonight. That's all's training. Ahead on Bloomberg
Speaker 1: day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one, O six one, Boston, Bloomberg nine sixties,
Speaker 1: San Francisco, Sirius x M one nine Team, and around
Speaker 1: the world. Old on Bloomberg Radio dot Com and via
Speaker 1: the Bloomberg Business op Good morning. I'm Nathan Hagar and
Speaker 1: I'm Karen Moscow. Any US dock index futures are a
Speaker 1: little change this morning. We checked the markets all day
Speaker 1: long here on Bloomberg Radio. Right now, SNP futures are
Speaker 1: again little change. Down futures are as well, and as
Speaker 1: DAG futures are lower, down a quarter per cent or
Speaker 1: twenty nine points. That Dacks in Germany's down a third percent.
Speaker 1: Ten year treasury down twenty thirty seconds, you know, three
Speaker 1: point six five percent. Nathan here, and we begin this
Speaker 1: morning overseas with the banka je of Hans sparking big
Speaker 1: market moves. This morning. In a hawk is shift bo
Speaker 1: j Governor Harohico Corona doubled a camp on tenure yields,
Speaker 1: paving the way for possible policy normalization under a new governor.
Speaker 1: The yen has strengthened sharply in response, while government bonds
Speaker 1: are slumping. The Bank of Japan is building the move
Speaker 1: as a way to enhance monetary easing, but Blue Bay
Speaker 1: Asset Management portfolio manager Russell Matthew says it could be
Speaker 1: the start of an exit it from stimulus policy. Do
Speaker 1: you think that this is just an isolated move? Absolutely
Speaker 1: not this is the beginning of normalization. They've been increasingly
Speaker 1: struggling to hold um uh, you know, the the the
Speaker 1: the their hard policy mix, the emergency policy mix that
Speaker 1: that that's now sort of changed and we're on the
Speaker 1: we're on the pathway to normalization um and the market
Speaker 1: is going to be pretty volatile as we progress along
Speaker 1: that path. Russell Matthews along with others at Blue they
Speaker 1: have long predicted the b o j's hockey is shift
Speaker 1: and taking a look at the end right now it
Speaker 1: is stronger by three and a half percent against the
Speaker 1: dollar at one thirty two point to four. While Nathan
Speaker 1: Trading in Asia Pacific overnight was dominated by the bo
Speaker 1: J news and we get the recount from Bloomberg's Annabel
Speaker 1: Rulers in Sydney. What policy makers are now going to
Speaker 1: allow is the ten year yield to reach point five
Speaker 1: percent on its trading band that had previously been set
Speaker 1: the upper limited point to five percent. So a huge
Speaker 1: change for US yields moving higher. Stocks slumping across the board,
Speaker 1: particular in these sectors that are more sensitive two rising
Speaker 1: yields like property tex stalks. Financials though absolutely jumping with
Speaker 1: the likes of Mitsubishi UFJ. That's a huge lender there
Speaker 1: in Japan, rising by the most in six years. Otherwise,
Speaker 1: the major story markets today is what's happening in China.
Speaker 1: We are continuing to monitor that COVID outbreak there. We
Speaker 1: did see the c s I three hundred trading in
Speaker 1: the red in Sydney. I'm Annabel Druler's Wimbo daybreak. All right, Annabel, thanks,
Speaker 1: Let's stay overseas for another story out of Asia. Social
Speaker 1: media posts in China signal COVID deaths may be much
Speaker 1: higher than Beijing's official count, and now Beijing is confirming
Speaker 1: it has changed the method for counting COVID fatalities, narrowing
Speaker 1: the definition. China reported just five deaths tied to COVID today,
Speaker 1: but bonn yeelds across the globe are rising this morning, Nathan,
Speaker 1: thanks to that policy shift from the Bank of Japan.
Speaker 1: US stock indix futures are a little changed after four days.
Speaker 1: A loss is initially propelled by hawkish rhetoric from the FED.
Speaker 1: Optimism about a policy pivot could finally be waning, but
Speaker 1: if not, in stocks push higher. Former New York Fan
Speaker 1: president Bill Dudley says that could lead to more tightening.
Speaker 1: The market thinks that the Federal blank, what's the unemployer
Speaker 1: rates starts going up to the market is basically saying
Speaker 1: that the FIT doesn't mean what it says. That they're
Speaker 1: saying this to try to talk tough, but when the
Speaker 1: going gets difficult, the Fed will fold. I don't believe that.
Speaker 1: I think Paul's going to do what he says. And
Speaker 1: former New York Fed governor and Bloomberg opinion columnist Bill
Speaker 1: Dudley made the comments on Bloomberg Surveillance. Catch the program
Speaker 1: weekday morning jan Bloomberg Radio and Television, or subscribe to
Speaker 1: the Daily Bloomberg Surveillance podcast on Apples, Spotify, and anywhere
Speaker 1: else you get your podcasts. Let's start to politics now, Karen,
Speaker 1: because we have some major developments in the US centered
Speaker 1: on Donald Trump. A House committee has recommended the former
Speaker 1: president be prosecuted for his role in the January six
Speaker 1: assault on the US capital. Now. This marks the first
Speaker 1: ever such referral for a former president after a seventeen
Speaker 1: month investigation. Democratic Maryland Congressman Jamie Raskin says the former
Speaker 1: president would be disqualified from holding office if convicted. The
Speaker 1: committee has developed significant evidence that President Trump intended to
Speaker 1: disrupt the peaceful transfer transition of power under our constitution.
Speaker 1: Marilyn Congressman Jamie Raskin says former President Trump failed in
Speaker 1: his constitutional duty while turning from politics to crypto Now Nathan,
Speaker 1: it was a wild day in court for former ft
Speaker 1: X CEO Sam Bankman Freed, who could now be headed
Speaker 1: back to the US sooner than we thought. Bloomberg. Steve
Speaker 1: Rappaport joins US Live with that story. Stave, good morning,
Speaker 1: Good morning, Karen, and Nathan. Mixed messages were the order
Speaker 1: of the day, with Bankman Freed and his attorney not
Speaker 1: exactly on the same page. SPF said in court he
Speaker 1: was ready to face the music in the US, but
Speaker 1: at the same hearing, his local lawyer said he was
Speaker 1: unaware of the plan. Later in the day, Jeron Roberts
Speaker 1: appear to reverse himself, telling reporters Bankman Freed would not
Speaker 1: fight extradition to the US, where he faces charges of
Speaker 1: fraud over the sudden collapse of f t X. Last week,
Speaker 1: Bankman Freed said he planned to fight extradition. Sources tell
Speaker 1: Bloomberg the change of heart is in part motivated by
Speaker 1: the expectation that he will be able to get bail
Speaker 1: here in the US. Live in New York. I'm Steve Rappaport,
Speaker 1: Bloomberg Daybreak. All right, Steve, Thanks, And it wouldn't be
Speaker 1: a day in December if we didn't have more news
Speaker 1: on Twitter. The latest development has Elon Musk saying the
Speaker 1: company will now vote on Twitter policy matters and leave
Speaker 1: it only to Blue members. Bloomberg said Baxter has the story.
Speaker 1: This coming after fifty seven percent of the respondence to
Speaker 1: his poll about whether he should step down said yes.
Speaker 1: Musk does say that this was in response to somebody
Speaker 1: who had messaged him earlier in the day. Now there
Speaker 1: were more than ten million votes saying that he should
Speaker 1: relinquish his role. Musk also tweeted that nobody wanted his
Speaker 1: job and that it would be impossible to find a successor,
Speaker 1: although he didn't directly address whether he was going to
Speaker 1: step down. In San Francisco, I'm at Baxter Bloomberg Daybreak, Okay, ed, thanks, futures,
Speaker 1: little change this morning, straight ahead, your latest local headlines
Speaker 1: in the check of sports. This is Bloomberg and it
Speaker 1: is now thirty two degrees in Central Park. We have
Speaker 1: a look at some of the other stories making news
Speaker 1: in New York and around the world. Now with bloomberg
Speaker 1: S Michael bar Good Morning, Michael, Good Morning, Nathan. Los
Speaker 1: Angeles jurors found disgrace movie mogul Harvey Weinstein guilty of
Speaker 1: rape and sexual assault of one of the four accusers
Speaker 1: he was charged with abusing. Weinstein was found guilty involving
Speaker 1: a woman who said he appeared uninvited at her hotel
Speaker 1: room door during a Los Angeles film festival in Weinstein,
Speaker 1: who was two years into a twenty three year sentence
Speaker 1: for a rape and sexual assault conviction in New York,
Speaker 1: to get up to twenty four years in prison in California.
Speaker 1: When he sentenced. New York Council member Eric Bacher was
Speaker 1: targeted by a group that calls itself Gaze against Groomer's.
Speaker 1: Bacher says, over the weekend they protested outside the Drag
Speaker 1: Story Hour, in which a person in drag reads children's
Speaker 1: books to kids at public library. It's a very successful
Speaker 1: and popular program around the country. Unfortunately, on the Internet
Speaker 1: there are these very dark and unhinged of memes that
Speaker 1: really have convinced some of these people that children are
Speaker 1: being sexually groomed, says. Two of the protesters made it
Speaker 1: as far as the lobby inside his apartment building after
Speaker 1: scrolling anti gay slurs on the sidewalk in front. They
Speaker 1: were arrested for trespassing. The NYPD says a thirty year
Speaker 1: old woman is under arrest after police say she broke
Speaker 1: into actor Robert de Niro's home while he was inside.
Speaker 1: Police say she was stealing his Christmas gifts. The suspect,
Speaker 1: Shanie Amlis, has twenty six prior arrests and was known
Speaker 1: to police so much so they spotted her in the
Speaker 1: area on Manhattan's Upper east Side and began to follow her,
Speaker 1: allegedly trying to break into other homes. A dedication ceremony
Speaker 1: was held in Central Park for a group of black
Speaker 1: and Hispanic men who became known as the Central Park Five.
Speaker 1: An entrance to the park was renamed as the Gate
Speaker 1: of the Exhonerated in honor of the five men wrongly
Speaker 1: convicted for attack and a rave in the park. New
Speaker 1: York Mayor Eric Adams said the location will be a
Speaker 1: landmark in civil rights history. We should be haveing school
Speaker 1: trips to talk about this story. The men were cleared
Speaker 1: in two thousand two and received a forty one million
Speaker 1: dollars settlement from the city. Globally is twenty four hours
Speaker 1: a day on air and on Bloomberg Quick Take, powered
Speaker 1: by more than twenty seven hundred journalists and analysts more
Speaker 1: than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan.
Speaker 1: All right, Michael, thanks the time of the Bloomberg Sports Utday,
Speaker 1: brought to you by Tri State Outing. For that, we
Speaker 1: bring in John's stash our. Good morning, John, Good morning,
Speaker 1: Nathan Nixon. Rangers have both won seven in a row.
Speaker 1: Look to keep the streets going tonight at the Garden.
Speaker 1: It's the Knicks and the Warriors, always a hot ticket
Speaker 1: when Golden State comes in. Although no Steph Curry and
Speaker 1: the Warriors are under five hundred. The Rangers play in Pittsburgh.
Speaker 1: Islanders were in Colorado, scoreless through sixty five minutes and
Speaker 1: then only one goal scoring in the shootout. The Ads
Speaker 1: won one nothing. Isles got forties six days from Helios Rokin,
Speaker 1: but they've now lost four of their last five. Rams
Speaker 1: and Packers figured to be two of the best of
Speaker 1: the NFC this year. They are certainly not Green Bay
Speaker 1: and fifteen degree weather one of four to twelve, and
Speaker 1: the Rams with their tent lost Hie the record for
Speaker 1: most defeats by defending Super Bowl champions. Short work week
Speaker 1: for the Jets. They host Jacksonville on Thursday. Of Mike
Speaker 1: White can play hill be Zack Wilson against the Jaguars
Speaker 1: Trevor Lawrence. They were the first two picks of draft.
Speaker 1: Lawrence has been playing great for Jacksonville. Wilson returned Sunday
Speaker 1: due to whites injury. He wasn't quite as bad as
Speaker 1: he was before he got bens, but certainly made some mistakes.
Speaker 1: His coaches Robert Salah, this kid's gonna be a good quarterback.
Speaker 1: Um there the the NFL and this this new instant
Speaker 1: coffee world that we're in just does not want to
Speaker 1: give people time and uh and so we look at
Speaker 1: him and he is just nitpicked with it and just
Speaker 1: with a fine tooth column. Everything that he does pretty
Speaker 1: much must win for the Jets Thursday if they hope
Speaker 1: to make the playoffs and City FI, the Mets introduced
Speaker 1: their new Japanese import code I singa set Lugo puts
Speaker 1: out of the Mets bullpen in the past seven years.
Speaker 1: He has signed with San Diego, Tom Brownie and pitch
Speaker 1: for Cincinnati for eleven years. Once through, a perfect game
Speaker 1: has passed away at sixty two, John Stashward, Bloomberg Sports.
Speaker 1: All right, John, Thanks, Bloomberg Sports is brought to you
Speaker 1: by Autie. Don't let someone else drive off in the
Speaker 1: outye model you've always wanted. Visit your local tri state
Speaker 1: autie dealer to get behind the wheel of yours today,
Speaker 1: or visit autie Offers dot com for more information. Expecting
Speaker 1: sunshine today with hr forty degrees cleared, a partly cloudy
Speaker 1: to night, up for twenties for overnight lows, and we'll
Speaker 1: be back near forty in the sunshine tomorrow. Right now
Speaker 1: in Central Park, it is clear and thirty two degrees.
Speaker 1: SMP futures down four points, Staff futures up for and
Speaker 1: Nasdaq futures are lower by thirty points ten. Your treasury
Speaker 1: yield right now three point six five percent. Live from
Speaker 1: coast to coast, from New York to San Francisco, Boston
Speaker 1: to Washington, d C. Nationwide on Sirius, x amp, the
Speaker 1: Bloomberg Business App, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 1: Good morning. I'm Nathan Hagar. We continue to watch the
Speaker 1: yen this morning, surging by three point three percent against
Speaker 1: the dollar one thirty two point five three as markets
Speaker 1: continue to assess this surprise move by outgoing Bank of
Speaker 1: Japan Governor Harohiko Coroda to adjust the yield curve control
Speaker 1: policy for the Central Bank in Japan, doubling the cap
Speaker 1: on tenure yields from a quarter percent to a half percent.
Speaker 1: Joining us now with more analysis is Kit Jukes, the
Speaker 1: chief Effex strategist associate A general. Kit. It's great to
Speaker 1: speak with you this morning. What was your reaction to
Speaker 1: this move and should the market b as surprised as
Speaker 1: it seems to be. I'm going to go with wow
Speaker 1: was my reaction? I think to be honest, Um, yeah,
Speaker 1: I think that we thought they were going to do
Speaker 1: something like this in April at the end of Mr
Speaker 1: Coroda's terms, So yeah, four months early, just before Christmas.
Speaker 1: Quite markets, it's got to move. Um So yeah, And
Speaker 1: you know, I think you have to at least, you know,
Speaker 1: put it in the context that that they've been completely
Speaker 1: alone really in their in their monetary policy stance through
Speaker 1: through this crisis or through this year. The widening interest
Speaker 1: rate differential with the United States. The rise in usc
Speaker 1: els has seen dolly Yan rise from hundred and ten
Speaker 1: to a hundred and fifty UM. There's a long way
Speaker 1: to go about the other way, you know, if you
Speaker 1: signal that that's all going to slowly start to unwind. Now,
Speaker 1: of course it wasn't all unwind. But but if we
Speaker 1: look through at the future from here and we say
Speaker 1: normalization of Japanese policy, you know, the end of the
Speaker 1: FED hiking cycle, not a million miles away from where
Speaker 1: we are, you can look at dolly in and think, yeah,
Speaker 1: it could go down a lot lower than this over
Speaker 1: the medium longer term, and and yeah, so we're going
Speaker 1: to do too much on the first day, And the
Speaker 1: Bank of Japan will will stress the fact that this
Speaker 1: is being done for the orderly function of the bond market,
Speaker 1: which doesn't function in an orderly fashion at all at
Speaker 1: the moment, and isn't really intended to be an easier
Speaker 1: tightening in monetary policy. But I'm not sure we'll hear
Speaker 1: any of that. I wouldn't be surprised if it if
Speaker 1: it goes further than this. Yeah, as you say, Corona
Speaker 1: did say that this was about improving bond market functioning.
Speaker 1: Not necessarily a policy pivot, but do you see this
Speaker 1: as a first step toward a policy normalization from the
Speaker 1: BOJ Not in a quick step, but I see there's
Speaker 1: a tightening in monetary conditions, and I think that's what matters.
Speaker 1: I don't think that it's um you know, it's not
Speaker 1: certainly not, you know, I think if let's bring this way,
Speaker 1: if I thought that we were going to see this
Speaker 1: in April, I don't think this means I'm going to
Speaker 1: see another one in April. I think this is April's
Speaker 1: one now, if you like. In terms of a policy mood,
Speaker 1: so it's not part of a chain. But I think
Speaker 1: it's the monetary conditions that do matter. You're tightening those
Speaker 1: and and you're raising interest rate levels that people can
Speaker 1: earn um. So you know, the sectors of the sectors
Speaker 1: of the economy that don't like higher interest threads are
Speaker 1: going to feel it in the same way as they
Speaker 1: would here. You know, it's sort of it smells and
Speaker 1: sounds like you know, like like like a like a
Speaker 1: red height wood in the United States or the UK,
Speaker 1: and so i'll call it that in Japan, I think
Speaker 1: for now it's also a catalyst for me. It's important
Speaker 1: for the currency market because, um, you know, the Japanese
Speaker 1: are the biggest holders of foreign assets in the world,
Speaker 1: and so they hold any enormal number of foreign assets
Speaker 1: and they've made very done, very well out of them
Speaker 1: in this period of yen weakness. It's very hard not
Speaker 1: to see this as a signal to them hedge that
Speaker 1: fex risk and if they're heading that effets risk there
Speaker 1: de facto buying yen and they'll make it get stronger.
Speaker 1: So you know that that to me is the bit.
Speaker 1: This smells and sounds and feels and looks like monetary
Speaker 1: tightening whatever you want to call it. It tightens finale
Speaker 1: a mount conditions. Um. And it's probably you know, yen
Speaker 1: positive for the medium term, not just for today. Does
Speaker 1: that add further two dollar negative then yeah, it feeds
Speaker 1: into the whole pattern. I mean, I think again when
Speaker 1: the last standout puts raises not in policy rates, but
Speaker 1: but it's it's yield, it's yield target at which it
Speaker 1: will intervene in the bond market. Um. And the Fed
Speaker 1: you know, is going to slow in February. We most
Speaker 1: people expect at twenty five basis point hike and then
Speaker 1: we'll see how many of those we get. Very very
Speaker 1: hard not to see that, as you know, further nail
Speaker 1: in the coffin of the of this really incredible period
Speaker 1: of dollars strains, the second biggest or or the biggest
Speaker 1: dollar rally since the one that ended in February. So
Speaker 1: we got about thirty seconds left here, Kit, we're staring
Speaker 1: at one two for the end right now. How much
Speaker 1: further does the end go down? It came from one ten.
Speaker 1: I mean I think you know, I think you can
Speaker 1: get some one and twenty in six months time. Ways
Speaker 1: that the end has form of overshooting targets that I
Speaker 1: put down as forecasts when it has these most this
Speaker 1: is the fifth one it's done since the mid nineties,
Speaker 1: and they were all bigger than this. The Christians great
Speaker 1: to have you on with this, kid, especially after a
Speaker 1: move like this. Really appreciate your insights, Kid Jukes, Chief
Speaker 1: f X strategist associate A general. I imagine we're gonna
Speaker 1: be keeping it our on the end for some time
Speaker 1: here right now, stronger against the dollar by just about
Speaker 1: three point three percent, training at one thirty two point
Speaker 1: five seven. As for other g ten currencies. The Euro
Speaker 1: right now at one point zero six to seven against
Speaker 1: the dollar, British pound one point to one three eight
Speaker 1: futures little change to lower right now. SMP futures are
Speaker 1: down seven points, Staff futures down seventeen and NASDAC futures
Speaker 1: are lower by thirty nine points. Tenure treasury down twenty
Speaker 1: one thirty seconds. Yield on the tenure in the US
Speaker 1: three point six six percent. This is Bloomberg Markets, headlines
Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot Com, the Bloomberg Business and at Bloomberg Quick Take.
Speaker 1: This is a Bloomberg Business lash and I'm Karen Moscow
Speaker 1: Treasury yields rising, Global equities falling after the Bank of
Speaker 1: Japan emulated as central bank piers with a hankish move
Speaker 1: that lifted the end to its highest in more than
Speaker 1: four months and sent domestic bonn yields twenty basis points higher.
Speaker 1: We check the markets all day long here on Bloomberg.
Speaker 1: SMP futures there are down five points now down about
Speaker 1: a tenth of uppercent. Down futures are a little changed.
Speaker 1: NASTACK futures down three tenths of upper cent or thirty
Speaker 1: three points. The decks in Germany's down a half pert
Speaker 1: down about a quarter percent. I should say ten your
Speaker 1: treasury down twenty one thirty seconds. Heel three point six
Speaker 1: six percent. They yield on the two year four point
Speaker 1: to seven percent. NI Max Screwed oil is at one
Speaker 1: point one percent of seventy nine cents at seventy five
Speaker 1: cents of barrel comic school of one percent or eighteen
Speaker 1: dollar sixty cents at eighteen sixteen thirty announced the euro
Speaker 1: one point six to eight against the dollar, British found
Speaker 1: one point one four one, the yen one thirty two
Speaker 1: point four seven and bitcoin this morning at one it's
Speaker 1: at sixteen thousand, eight hundred dollars. And as a Bloomberg
Speaker 1: Business flash, now here's Michael bar with Moore on what's
Speaker 1: going on around the world. Muncale, good morning, Good morning, Karen.
Speaker 1: A House committee recommended that Donald Trump he prosecuted for
Speaker 1: his role in the January sixth assault on the US capital,
Speaker 1: the first ever such referral of a former president. Representative
Speaker 1: Jamie Raskin said it would disqualify Trump from holding off
Speaker 1: as if convicted. The Supreme Court granted a temporary stay
Speaker 1: on the immigration restriction known as Title forty two. It
Speaker 1: was expiring tomorrow. The nineteen Republican led States filed an appeal.
Speaker 1: Monday night football, the Packers beat the Rams twelve in
Speaker 1: the NHL. The Islanders lost in a shootout to the
Speaker 1: Avalanche one ZIP. The Capitols and Bruins were winners. Global
Speaker 1: News twenty four hours a day on air and on
Speaker 1: Boomberg Quick Tank, powered by more than twenty seven under
Speaker 1: journalists and analyst more than a hundred twenty countries. I'm
Speaker 1: Michael Barr, and this is Bloomberg. Nathan him Michael. Thanks.
Speaker 1: It's five twenty three on Wall Street. I'm Nathan Hagar.
Speaker 1: This is Bloomberg Daybreak, and our focus this morning is
Speaker 1: sharply on the Bank of Japan. But that doesn't mean
Speaker 1: we're taking our eyes off the Federal Reserve. FED policy
Speaker 1: and conjecture about future policy have largely shaped the direction
Speaker 1: of markets over this past week. Now, let's get the
Speaker 1: view from a former Central Bank member. Bill Dudley served
Speaker 1: as president of the New York Fed for nearly a decade. Now,
Speaker 1: he's a professor at Princeton and a columnist for Bloomberg Opinion.
Speaker 1: Dudley sat down with Bloomberg's Tom Keene and Lisa Abramowitz
Speaker 1: on Bloomberg Surveillance to take stock of the Fed's latest
Speaker 1: move and what's ahead for the new year. Let's listen
Speaker 1: in what does the data point of January twelve, the
Speaker 1: inflation reports signal to the Fed where possibly they will
Speaker 1: have three data points lined up marking some form of disinflation.
Speaker 1: All have been very clear that to chief success he
Speaker 1: needs to see moderation of goods prices, which he is seeing,
Speaker 1: moderation of services prices excluding housing, which he's not seeing,
Speaker 1: and more slack in the labor market which he's not seeing.
Speaker 1: So the only achieved one of the three goals. So
Speaker 1: the thing to focus on is what's happening to the
Speaker 1: services inflation excluding housing that we know housing is going
Speaker 1: to come down with a lag, And what's happening in
Speaker 1: the labor market. You know we have you know, less
Speaker 1: player employment increase. We need to see payeral games of
Speaker 1: fifty thousand, seventy five a month. We need to see
Speaker 1: an increase in the employment rate of from to generate
Speaker 1: and just slack in the layer market. We need to
Speaker 1: get inflation down in the services sector bill. I've been
Speaker 1: confused by the market response after we got the latest
Speaker 1: FED meeting. There hasn't been a real increase in bond yields,
Speaker 1: and there is still priced into the market a lower
Speaker 1: terminal rate than with the FED is saying that they
Speaker 1: are going to do. How do you understand that? There's
Speaker 1: two possible explanations. Number one, the market thinks that the
Speaker 1: Federal blank, what's the unemployer rate? Starts going up, So
Speaker 1: the market is basically saying that the Fed doesn't mean
Speaker 1: what it says. That they're saying this to try to
Speaker 1: talk tough, but when the going gets difficult, the FED
Speaker 1: will fold. That's one possible explanation. I don't believe that.
Speaker 1: I think Paul's gonna do what he says. And number two,
Speaker 1: they may just have a more benign view about how
Speaker 1: fast inflation is going to come down. I think the
Speaker 1: market is overweighting the improvement and goods price inflation. We
Speaker 1: knew goods price inflation was going to come down for
Speaker 1: two reasons. Number one, the switching in the pandemic has
Speaker 1: reduced the demand for good versus services. And two, we
Speaker 1: knew that some of these supply chain disruptions we're gonna normally.
Speaker 1: The fact that used car prices are falling out was
Speaker 1: no surprise to anybody. At the same time, people point
Speaker 1: to the fact that credit card receivables are going up,
Speaker 1: people are borrowing more. It indicates that cushion is getting
Speaker 1: used up and there will be a music stoppage at
Speaker 1: the beginning of the year, that people will stop spending,
Speaker 1: and perhaps they already are. How do you push back
Speaker 1: against that and say, no, there is actually more momentum,
Speaker 1: more item miss and behind that that this fed has
Speaker 1: to curb. Well, one aspect of goods price in flesh
Speaker 1: and going down is the oval flesh rates lower, so
Speaker 1: people's wages go a bit further than they were before.
Speaker 1: And you said, you know, the excess savings is coming down,
Speaker 1: but still there's no about trulli and a half money
Speaker 1: savings above what you expect the situation to be if
Speaker 1: we hadn't had those large fiscal transfers. Finally, there's gonna
Speaker 1: be a lot more income for people caused by indexing.
Speaker 1: So look at SoCal security eight point seven percent increase
Speaker 1: coming next month. That's a hundred billion dollar increase in
Speaker 1: federal spending. All those people are going to go out
Speaker 1: and spend that money. That's former New York Fed President
Speaker 1: Bill Dudley speaking with Lisa Abramo It's and Tom Keane
Speaker 1: on Bloomberg Surveillance. You can catch more of that interview
Speaker 1: and conversations just like it on the latest edition of
Speaker 1: the Bloomberg Surveillance podcast. Subscribe on Apple, Spotify or anywhere
Speaker 1: else you get your podcast. That this morning's top stories,
Speaker 1: local headlines just to head first, Today's Bloomberg weather forecast.
Speaker 1: High pressure has control the weather. It have contained and
Speaker 1: moved towards the Tri state area coming in from the west.
Speaker 1: Will have sunshine today and temperature should be close to
Speaker 1: forty degrees generally clear. Tonight, the city will drop the
Speaker 1: thirty It'll fall into the teens in some of the suburbs.
Speaker 1: Hig pressure is still in control. Tomorrow. We'll have more sunshine,
Speaker 1: high forty cloudy Thursday, with rain developing the afternoon, a
Speaker 1: high close to forty five. I'm Rob Caroline with your
Speaker 1: three day forecast on Bloomberg eleven three oh broadcasting live
Speaker 1: from the Bloomberg Interactive Broker Studio in New York Bloomberg
Speaker 1: Elving three to Washington, d C. Bloomberg one to Boston,
Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine
Speaker 1: six to the country, Sirius XM to the one nineteen
Speaker 1: and around the globe the Bloomberg Business at and Bloomberg
Speaker 1: Radio dot com. This is Bloomberg Daybreak and we're coming
Speaker 1: up to five thirty on Wall Street. Good morning. I'm
Speaker 1: Karen Moscow, I'm Nathan and Hagar. Bloomberg Daybreak is brought
Speaker 1: to you by Innovation Refunds. Your business may be eligible
Speaker 1: to receive a payroll tax refund. The application takes around
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Speaker 1: small to medium sized business may be eligible for a
Speaker 1: refund of up to twenty six thousand dollars per employee
Speaker 1: kept on the payroll during the pandemic. Find out at
Speaker 1: get Refunds dot com. And we're nearly four hours away
Speaker 1: from the open of US trading. Let's get you up
Speaker 1: to date on the news you need to know. At
Speaker 1: this hour, we begin to overseas with the Bank of Japan.
Speaker 1: Governor Harahiku Kuroda shocked markets overnight by adjusting the central
Speaker 1: banks yield curve control program. Bloomberg Daybreak Asia anchor Brian
Speaker 1: Curtis has the details. The shocking move sparked a massive
Speaker 1: jump in the en and a big drop in the nick.
Speaker 1: The b o J will now allow Japan's ten year
Speaker 1: bond yields to rise to about half a percentage point.
Speaker 1: That's up from the previous upper limit of a quarter
Speaker 1: percentage point. The central Bank kept its target on the
Speaker 1: yield unchanged around zero percent, and left it short term
Speaker 1: interest rate at minus zero point one percent. Bright Curtis,
Speaker 1: Bloomberg Daybreak. All right, Brian, thank you, and let's look
Speaker 1: at that jump in the yen. It's right now at
Speaker 1: one thirty two point four or five against the dollar.
Speaker 1: Staying overseas in Asia, Karen's social media posts in China
Speaker 1: signal at COVID deaths may be much higher than Beijing's
Speaker 1: official count. Now, China confirms it has changed its method
Speaker 1: for counting fatalities, narrowing the definition of a COVID death.
Speaker 1: China reported just five fatalities tied to the virus today.
Speaker 1: Well back here in the US, Nathan futures are that
Speaker 1: will change after four days of loss. Is initially propelled
Speaker 1: by hawkish fed rhetoric bets on a recession or ramping
Speaker 1: up A Former New York Fed President Bill Dudley says
Speaker 1: he expects a downturn to be relatively controlled. I don't
Speaker 1: expect the recession quite yet, and the COMMUNI still has
Speaker 1: considerable for momentum. I think the recession, when it finally
Speaker 1: does occur, will be mild. This is a recession. If
Speaker 1: it occurs, it's completely induced by the Fed to generate
Speaker 1: more slack in the labor market. Former New York Fan
Speaker 1: governor and Bloomberg opinion columnist Bill Dudley may have the
Speaker 1: comments on Bloomberg Survey Lance catch the program we Gay
Speaker 1: Mornings on Bloomberg Radio and Television. In politics, the House
Speaker 1: committee investigating the January six attack has recommended prosecution for
Speaker 1: former President Donald Trump, marking the first ever such referral.
Speaker 1: A decision on whether to prosecute lines with the Department
Speaker 1: of Justice. And turning from politics to Krypto Now, Nathan,
Speaker 1: it was a wild day in court for Sam Bankman Free,
Speaker 1: the former ft X CEO. Can now we headed back
Speaker 1: to the US sooner than we thought. We get more
Speaker 1: from Bloomberg Steve Rappaport, Steve, good Morning, Karen and Nathan.
Speaker 1: It's never a good sign when the attorney and the
Speaker 1: defendant are not on the same page. That scenario unfolded
Speaker 1: in court yesterday when bankman Freed said he was ready
Speaker 1: to waive his right to fight extradition to the US.
Speaker 1: That caught his local lawyer off guard, who said he
Speaker 1: was not aware of the plan. Jaren Roberts later told
Speaker 1: reporters bankman Freed would not fight extradition to the U
Speaker 1: s where he's charged with fraud related to the collapse
Speaker 1: of f t X Live in New York. I'm Steve Rappaport,
Speaker 1: Bloomberg Day Break. Okay, Steve, thank you. Futures little changed
Speaker 1: this morning, and straight ahead, we have your latest local
Speaker 1: headlines and a check of sports. This is Bloomberg and
Speaker 1: One on Wall Street. We've bringing Michael war for a
Speaker 1: look at what's going on in New York and around
Speaker 1: the world. Michael, thank you very much. Nathan. Disgraced movie
Speaker 1: mogul Harvey Weinstein has been convicted of several more sexual
Speaker 1: assault charges. Of the seven sexual assault charges Weinstein was
Speaker 1: on trial for in Los Angeles, the jury convicted him
Speaker 1: of three, including the rape of a former Italian actress
Speaker 1: in the jury could not agree on other charges involving
Speaker 1: other accusers, including one represented by attorney Gloria Allred, who
Speaker 1: says her client THO is focused on the guilty verdicts
Speaker 1: that that was justice, so she's thinking of others in
Speaker 1: addition to herself. Weinstein faces another twenty or so years
Speaker 1: in prison for the convictions he's already serving a twenty
Speaker 1: three years sentence in New York. Drag Story Hour and
Speaker 1: a New York City council member who supports it are
Speaker 1: the latest targets of protests. Councilman Eric Bacher says protesters,
Speaker 1: alvanized by online conspiracy theories, tried to disrupt the weekend
Speaker 1: reading event at a New York City public library and Chelsea.
Speaker 1: They were blocked from entering, but yesterday two protesters made
Speaker 1: it into the lobby of Bacher's apartment nearby, scrolling anti
Speaker 1: gay slurs on the sidewalk in front. It's a really
Speaker 1: disgusting conspiracy theory that people have latched onto, and it's
Speaker 1: they're they're really taking this way too far, believes, arrested
Speaker 1: to protesters for trespassing. Writers on some New York City
Speaker 1: subway lines may see less service on Mondays and Fridays,
Speaker 1: and an increase on weekends, according to data from the
Speaker 1: mt A. The changes come as remote work continues to
Speaker 1: keep weekday ridership down. New Jersey lawmakers gave final approval
Speaker 1: to legislation overhauling rules to get a firearm carry permit
Speaker 1: after this summer's U. S. Supreme Court ruling expanded gun
Speaker 1: rights global needs twenty four hours a day on a
Speaker 1: rand on Bloomberg quick Take powered by more than journalist
Speaker 1: antalists in more than countries. I'm Michael bar This is
Speaker 1: Bloomberg Nath. Thanks Michael three on Wall Street time for
Speaker 1: the Bloomberg Sports update, brought to you by Tri stayed out.
Speaker 1: Here's John Stashower. Okay, Nathan Chilly Knight in Green Bay.
Speaker 1: Packers kept their faint playoff hopes alive. Beat the Rams
Speaker 1: twelve Aaron Rodgers now one nine straight Monday Nighters. Baker Mayfield,
Speaker 1: the Rams new quarterback, did better when he hadn't practiced
Speaker 1: with them. A week after he debuted with a comeback win, Mayfield,
Speaker 1: through an interception, got sacked five times. The next day
Speaker 1: is Thursday. Jets and Jaguars that met life for the
Speaker 1: Jets just lost to Detroit. A lot of criticism of
Speaker 1: Jets coach Robert Sala for faulty clock management in the
Speaker 1: Jets final drive. And I was trying to beat New
Speaker 1: York on a challenge and that's the one I overthought.
Speaker 1: It didn't matter. We're not playing for downs at this situation. UM,
Speaker 1: We're playing for time and UM. And when you look
Speaker 1: at it all, I definitely probably cost us one more snap,
Speaker 1: uh in that in that transaction. So I'm uh something
Speaker 1: that I definitely need to be better. I definitely overthought it.
Speaker 1: And uh, I wish I could have that one. But
Speaker 1: I had the Jets had more time, they could have
Speaker 1: gained some more yards in their game time fuegal attempt
Speaker 1: might not have had to be a fifty eight yard
Speaker 1: A lot of talk also about the end of the
Speaker 1: Giants win at Washington, Commanders upset about an illegal formation
Speaker 1: penalty that wiped out a touchdown and a non past
Speaker 1: interference call on their final play. Giants visit Minnesota Saturday.
Speaker 1: Philadelphia visits Dallas. Eagles. Quarterback jail And Hurts may not
Speaker 1: play as an an injured shoulder. Islanders lost at Colorado
Speaker 1: one nothing gonna shoot out the Rangers play tonight in Pittsburgh.
Speaker 1: The Rangers have won seventh straight and so have the Knicks.
Speaker 1: They hold Golden State today as a national holiday in
Speaker 1: Argentina as they honor the World Cup champions. John Stasheller
Speaker 1: Bloomberg Sports Nathan Well deserved day off for Argentina. Thank you,
Speaker 1: John and Bloomberg Sports. Was brought to you by Audie.
Speaker 1: Don't let someone else drive off in the Audi model
Speaker 1: you've always wanted. Visit your local Price State Auntie dealer
Speaker 1: to get behind the wheel of yours today, or visit
Speaker 1: Autie Offers dot com for more information on Wall Street
Speaker 1: time for the Tri State Business Report. For that we
Speaker 1: bring in, Bloomberg, said Corey. A planned strike by New
Speaker 1: York Uber drivers fizzled on Monday, despite a call for
Speaker 1: a boycott of the app. The New York Taxi Workers
Speaker 1: Alliance asked Uber drivers to turn off the app for
Speaker 1: twenty four hours starting at midnight on Sunday to protest
Speaker 1: Uber's attempts to block wage increases approved by the Taxi
Speaker 1: and Limousine Commission. New Jersey businesses would have to give
Speaker 1: severan's pay to workers and mass layoffs starting next year
Speaker 1: under legislation that's headed to Governor Phil Murphy for his signature.
Speaker 1: State lawmakers passed the bill to put into effect changes
Speaker 1: that were first enacted in January of two thousand twenty
Speaker 1: and postponed during the pandemic. Hartford's Planning and Zoning Commission
Speaker 1: has approved to propose new Connecticut Children's Medical Center tower.
Speaker 1: It'll face Washington Street and significantly increase the hospital's size.
Speaker 1: Stanford advocate says it will be eight stories tall and
Speaker 1: take up one d thousand ware feet. Beat your Bloomberg
Speaker 1: dry State business report. I'm ed, Corey alright, ed, thank you.
Speaker 1: It's five thirty six on Wall Street. The following is
Speaker 1: an editorial from Bloomberg Opinion. This editorial was written by
Speaker 1: the Bloomberg Editorial Board. There's no climate security for the
Speaker 1: world without a protected Amazon, Brazil's President elect louise In
Speaker 1: Nacio Lula da Silva told a cheering crowd at climate
Speaker 1: talks in Egypt last month He's right. Limiting global warming
Speaker 1: requires saving the planet's largest rainforest, which shriveled under outgoing
Speaker 1: president Jaire Bolsonato after the previous government's neglect. Lula deserves
Speaker 1: credit for putting the Amazon back on the agenda, but
Speaker 1: he has little time to waste. His first priority should
Speaker 1: be to revive forest oversight agencies, expand protections for indigenous
Speaker 1: people in lands, and crack down on surging violence in
Speaker 1: the Amazon region. That will require Lula to reach beyond
Speaker 1: his core supporters and persuade a broad cross section of
Speaker 1: Brazilians to embrace a greener future. Brazil's president elect hopes
Speaker 1: to halt deforestation in the Amazon. He can't do it alone.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash
Speaker 1: Opinion or O P I n go on the Bloomberg terminal.
Speaker 1: These has been Bloomberg Opinion. Listen for Bloomberg opinion editorials
Speaker 1: every weekday. At this time, terminal customers can read more
Speaker 1: at O P I n go. SMP futures right now
Speaker 1: down seven points to down, futures down twenty one. NAZAC
Speaker 1: futures are lower by thirty eight points. Ten year treasury
Speaker 1: is down twenty one thirty seconds. The old three point
Speaker 1: six six percent yield on the two year four point
Speaker 1: to seven percent. Nim X scrudes higher by one of
Speaker 1: the third percent up a dollar seventy six nineteen of
Speaker 1: barrel comex golds up one percent or eighteen fifty It's
Speaker 1: eighteen sixteen twenty announced and the yen three and a
Speaker 1: half percent stronger against the dollar at one thirty two
Speaker 1: point three three. Will get much more on the Bank
Speaker 1: of Japan's surprise decision on yield curve control with Bloomberg's
Speaker 1: Paul Jackson straight Ahead, markets headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot Com, The Bloomberg
Speaker 1: Business Outland at Bloomberg Quick Take. This is a Bloomberg
Speaker 1: business lash and I'm Karen Moscow and treasury yields are rising.
Speaker 1: US DOCK Index futures are lower after the Bank of
Speaker 1: Japan emulated at Central Bank piers with a sudden hawk
Speaker 1: ish move that lifted the end to a four month
Speaker 1: peak and raised expectations of further policy tightening. Check the
Speaker 1: markets all day long here on bloomberg s and P futures.
Speaker 1: They're down eight points now down to tens of uppercent.
Speaker 1: Down futures down a tenth of upper cent or thirty points,
Speaker 1: and NASDAG futures down four tens per cent or forty
Speaker 1: three points ten year treasury down twenty two thirty seconds,
Speaker 1: you'll three point six six percent. They yield on the
Speaker 1: two year four point to seven percent. Nim Ex screwed
Speaker 1: oil is I've wanted a third percent of a dollar
Speaker 1: at seventy six dollars nineteen cents of barrel call makes
Speaker 1: gold up one percent or eighteen dollar sixty cents at
Speaker 1: eighteen sixteen thirty. And now the euro one point six
Speaker 1: three nine against the dollar, British pound one zero, and
Speaker 1: the yen one thirty two point three five and bitcoin
Speaker 1: is at one point at about sixteen thousand, eight hundred dollars.
Speaker 1: And as a Bloomberg business flash, now here's Michael Barr
Speaker 1: with Moore on less going on around the world. Michael Karen,
Speaker 1: thank you very much. The House January six Committee is
Speaker 1: urging the Justice Department to bring criminal charges against former
Speaker 1: President Donald Trump for the violent Capital Riot. The biopartisan
Speaker 1: panel says Trump and his associates helped him launch a
Speaker 1: pressure campaign to try to overturn his twenty twenty election loss.
Speaker 1: A jury in Los Angeles found disgraced film producer Harvey
Speaker 1: Weinstein guilty of three counts of sexual assault, including rape,
Speaker 1: Monday Night football. The Packers beat the Rams twenty four
Speaker 1: twelve in the NHL. The Islanders lost in his shootout
Speaker 1: to the Avalanche one zip. The Capitals and Bruins were winners.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than any seven hundred
Speaker 1: journalist and analysts in more than a hundred twenty countries.
Speaker 1: Michael barn this is Bloomberg. Nathan Okay, Michael. Thanks, It's
Speaker 1: forty two on Wall Street. This is Bloomberg day Break.
Speaker 1: Good morning. I'm Nathan Hagar along with Karen Moscow. Look
Speaker 1: at some of the other stories making news this morning.
Speaker 1: We get more economic data today. The government issues housing
Speaker 1: data at eight thirty am Wall Street time, and it
Speaker 1: is expected to be a dose of bad news. Bloomberg's
Speaker 1: viny Dell Judeace reports the housing market is born the
Speaker 1: brunt of the federal reserves inflation fight rising interest rates.
Speaker 1: The average rate and the thirty year fixed mortgages doubled
Speaker 1: from record lows consider the prior months data. October housing
Speaker 1: starts declined for the third time in four months. October
Speaker 1: building permits also slumped. On Welcome News, as we head
Speaker 1: into a new year. The heat del Judace Bloomberg Day Break.
Speaker 1: All right, Vinnie, thank you well, I'm the corporate front
Speaker 1: this morning, Shares of Credit Suite are declining. Both City
Speaker 1: and RBC are saying the troubled lender needs to give
Speaker 1: greater visibility on its planned strategic overhaul for a stock
Speaker 1: to recover. One City analyst says he has little conviction
Speaker 1: in the plan based upon limited disclosure and recent company
Speaker 1: track records. Still, he has a by rating on Credits,
Speaker 1: so we is thanks to its valuation and well, RBC
Speaker 1: welcomes the bank's decisive actions. It does not see a
Speaker 1: rerating without more details on a plan. Well, Karen, we
Speaker 1: saw it. Shares of Disney fall yesterday as that stock
Speaker 1: extends a lengthy cell off that took it to him
Speaker 1: more than two year. Low slump came after a somewhat
Speaker 1: disappointing opening weekend for the company's Avatar sequel. It was
Speaker 1: one of the most expensive movies in Hollywood history. Disney
Speaker 1: lowered its guidance for the opening weekend, and the stock
Speaker 1: is now down forty this year, on track for its
Speaker 1: biggest annual decline in decades. Right now, Disney's little changed
Speaker 1: in the pre market. Coming up today, Nathan, Not only
Speaker 1: am I likely to get a package from FedEx, but
Speaker 1: they're going to deliver earnings as well. Yeah, we get
Speaker 1: a preview of those results from Bloombergy's Dug Prisoner. These
Speaker 1: results will provide an early look at the peak shipping season.
Speaker 1: Back in September, FedEx spooked the market and triggered a
Speaker 1: broad decline when it withdrew its forecast and cited worsening
Speaker 1: business conditions in multiple regions. Since then, other companies in
Speaker 1: the shipping industry have warned of weakness due to economic
Speaker 1: headwinds and waning consumer interest in e commerce after a
Speaker 1: pandemic boom. FedEx has already begun furloughing employees and parking
Speaker 1: planes as part of a multibillion dollar cost cutting plan
Speaker 1: in New York. I'm Doug Prisoner Bloomberg day Break, and
Speaker 1: we'll see if we get an earning surprise from FedEx
Speaker 1: for the holidays. Thank you for that, Doug. Now let's
Speaker 1: get to our top story this morning, the surprise from
Speaker 1: the Bank of Japan on yield curve control policy, doubling
Speaker 1: the camp on tenure yields were joined now by Paul Jackson,
Speaker 1: Economics editor for Japan, Korea and Australia for Bloomberg News, Paul,
Speaker 1: the market saw this as a pretty big surprise, judging
Speaker 1: by the move in the end this morning. How big
Speaker 1: a surprise is this historically? For boj this is a
Speaker 1: total surprise. Our survey of forty seven economists, a lot
Speaker 1: of them predicted this one. So this was certainly an
Speaker 1: out of the blue Christmas surprise for everyone. You saw
Speaker 1: that markets reacted very strongly across the wide range of assets. Uh,
Speaker 1: this was totally unexpected. There's been a lot of local
Speaker 1: media reports and also reporting from Bloomberg of potential change,
Speaker 1: to an agreement between the Banka Japan and the government
Speaker 1: or about a review, and this all pointed towards change
Speaker 1: happening after Governor Corona steps down in April, that there
Speaker 1: was going to be changed in December. Lo one had it.
Speaker 1: What's the thinking among the people that you're talking to
Speaker 1: about why Governor Corona decided to do this now instead
Speaker 1: of waiting for a successor to do it? When you
Speaker 1: were just speaking with Kit Jukes from Syche generally at
Speaker 1: this hour, he says that he expected the move in
Speaker 1: April exactly. I think that was the consensus that would
Speaker 1: wait until we had a new a new governor in place.
Speaker 1: So I think there's maybe two things going on here.
Speaker 1: I think one is that during this year we've had
Speaker 1: some very very intense moments of pressure on the p
Speaker 1: h A s easing framework and up put pressure on yields,
Speaker 1: and we just kind of in a little pocket where,
Speaker 1: you know, helped by the FED and other other moves,
Speaker 1: there was a little less pressure on our markets, on
Speaker 1: on that yield cap. So when you want to change
Speaker 1: the settings, you want to do it when there's less
Speaker 1: pressure on it, so that the things don't go crazy
Speaker 1: when you make the change. So I think that's point
Speaker 1: number one, and point number two is he's kind of
Speaker 1: corrected helping his successor by opening the door to a
Speaker 1: potential normalization of policy when the new governor comes in
Speaker 1: by making this first initial step. But ultimately it's up
Speaker 1: to the next governor to decide what he or she's
Speaker 1: going to do. It's an interesting point, Paul, because the
Speaker 1: commentary we heard from Governor Corona seemed to downplay the
Speaker 1: idea that this was a policy shift, at least for now,
Speaker 1: saying that this move was about, uh, improving the functioning
Speaker 1: of the bond market. From the people that you're speaking to,
Speaker 1: are they buying that message? Well, it's kind of central bankers,
Speaker 1: you know, one oh one giving one hand and take
Speaker 1: away with the other, give an ob signal and a downsticking.
Speaker 1: But at the same time, So rather than frightening markets
Speaker 1: and saying, hey, look this is a is a is
Speaker 1: a ray tip were tightening policy? Is that he's saying no, no,
Speaker 1: this has nothing to do with that. It's about extending
Speaker 1: the sustainability of our stimulus. By in that way, he
Speaker 1: gives both options to his successor. But in terms of
Speaker 1: the market reaction, well, I think it's very clear, Uh,
Speaker 1: they see in one direction, Hey, this paves the way
Speaker 1: to timing. Now, what's the potential ripple effect here for
Speaker 1: not just global markets, but for global central banks. I mean,
Speaker 1: it seems as though the drumbeat has been for tighter
Speaker 1: policy around the world. Is this just the Bank of
Speaker 1: Japan hopping on the bandwagon here? Could this have some
Speaker 1: further effect on where policy goes for other central banks
Speaker 1: around the world. Well, and on this point, I would
Speaker 1: say that you know the rest of the central banking world, Um,
Speaker 1: save perhaps the p BOC UH, they've already been racing
Speaker 1: to hike rates and to absolutely squash inflation. Now, as
Speaker 1: you know, Japan is a bit of an outlier. It's
Speaker 1: been trying to spark inflation for more than a decade,
Speaker 1: being incredible difficulty creating price growth in Japan, so that
Speaker 1: take on the need esteem this has always been a
Speaker 1: bit different from your major banks, So I think it's
Speaker 1: the b O J moving more in the direction of
Speaker 1: where everyone else is. So in terms of the policy
Speaker 1: implications for those other central banks, I don't think they're
Speaker 1: that big. But in terms of the policy that the
Speaker 1: implication is for markets, I think they are big because
Speaker 1: when you think about it, if you've got one of
Speaker 1: the biggest central banks in the world keeping yields down
Speaker 1: close to zero and they're saying, hey, you know what,
Speaker 1: we'll let him go up to zero point five. Um, okay,
Speaker 1: those figures don't sound that big compared to when you
Speaker 1: looking at yields in other countries, But that is, uh,
Speaker 1: you know, a big movement. It's a lifting office, the
Speaker 1: kind of cutting free of the tether on global yields.
Speaker 1: So this could encourage further upward movement in yields across
Speaker 1: the world. Thanks Paul Good having on with us. Paul Jackson,
Speaker 1: economict cedator for Japan Career and Australia for Bloomberg News
Speaker 1: on the surprise and the b o J on yield
Speaker 1: curve control. This is Bloomberg Markets headlines and breaking news
Speaker 1: twenty four hours a day at Bloomberg dot Com of
Speaker 1: Bloomberg Business Outland at Bloomberg Quicktake. She's a Bloomberg Business
Speaker 1: Flash and I'm Karen Moscow. And treasury yields they're rising,
Speaker 1: US knock Index futures they're little change after the Bank
Speaker 1: of Japan emulated at Central Bank Piers with a sudden
Speaker 1: hawk is move that looked at the end to a
Speaker 1: four month peak. And we checked the markets all day
Speaker 1: long here on Bloomberg S and P futures down three
Speaker 1: points now but basically little change. Down futures are also
Speaker 1: little change. And now'sdack features down a quarter percent or
Speaker 1: twenty eight points. The decks in Germany's down a quarter
Speaker 1: percent ten. Your treasury down thirty seconds, held three point
Speaker 1: six six percent. They yield on the two year four
Speaker 1: point to seven percent. Nine max screwed oil is up
Speaker 1: wanted a third percent of a dollar at seventy six dollars.
Speaker 1: Nineteen cents of barrel co mix s goold up one
Speaker 1: percent or eighteen dollars at eighteen fifteen seventy an ounce,
Speaker 1: the euro one point six three six against the dollar,
Speaker 1: British pound one point two one six eight and the
Speaker 1: end one thirty two point four eight. And looking at bitcoin,
Speaker 1: it's up one percent. It's aid about sixteen thousand, eight
Speaker 1: hundred dollars. And that's a Bloomberg Business Flash. Nathan Okay, Karen, thanks.
Speaker 1: It's five fifty six on Wall Street time for our
Speaker 1: daily Bloomberg Lab Brief, exploring legal issues in the news. Today,
Speaker 1: we look at the White House preparing for an expected
Speaker 1: surge of migrants at the southern border. It's after the
Speaker 1: d C. Circuit Court of Appeals refused to extend Title
Speaker 1: forty two pandemic border restrictions, but Supreme Court Chief Justice
Speaker 1: John Roberts has stepped in. He has temporarily stopped Title
Speaker 1: forty two from ending. That says the Supreme Court considers
Speaker 1: a bid from nineteen Republican states to keep the rules
Speaker 1: in place for more. Bloomberg's June Grosso speaks with immigration
Speaker 1: law expertly on Fresco, a partner at Holland and Night.
Speaker 1: So the Chief Justice was the one who temporarily blocked
Speaker 1: the scheduled ending of Title forty two, and it came
Speaker 1: just hours after the Republican States filed their request. One
Speaker 1: does that tell you, well, certainly, the Chief Justice is
Speaker 1: one of the Keith swing votes, and I think he
Speaker 1: is one of the most practical votes. That the addition
Speaker 1: to being a swing vote, I mean he's the one
Speaker 1: who has to decide because he has the jurisdiction over
Speaker 1: the DC circuits. The fact that he was willing to
Speaker 1: basically reward such a sort of very sudden say requests
Speaker 1: I could have been filed earlier, but that was filed
Speaker 1: in the nick of time, probably shows some receptiveness to
Speaker 1: the practical aspects of giving people more time to implement
Speaker 1: this Title forty two solution rather than just listing it
Speaker 1: during the middle of holidays. The Biden administration has been
Speaker 1: considering policies that would cut down on the number of
Speaker 1: migrants at the southern border, and one of them mirrors
Speaker 1: a Trump policy. You now have the Biden administration contemplating
Speaker 1: reinstating a Trump era band on getting asylum if you
Speaker 1: craw the border. This is now being actively considered. It's
Speaker 1: something the Trump administration that they said if you crossed
Speaker 1: the border without having tried to get asylum first in
Speaker 1: one of the countries you've crossed through, So whether if
Speaker 1: you've crossed through El Savador or hodurist or Guatemala or
Speaker 1: Mexico or all of those countries, the idea was, you
Speaker 1: have to apply for asylum in the first location where
Speaker 1: you feel safe. That's something that Trump administration did and
Speaker 1: that was in litigation, so we don't know if it
Speaker 1: would have survived litigation or not, and that's one of
Speaker 1: the things the Biden administration is considering. The second one
Speaker 1: would be that you're not allowed to get asylum if
Speaker 1: you try it by crossing the US border illegally. Instead,
Speaker 1: the only way you can get it is by waiting
Speaker 1: at the port of entry. Now, in neither of these
Speaker 1: two cases are you banned from getting withholding of removal
Speaker 1: that has a much higher set of story burdens, has
Speaker 1: far less right, so you can still seek across from
Speaker 1: there either of those two, but asylum would be bammed
Speaker 1: if either of these two formulations are implements. And and and
Speaker 1: perhaps both would be and so then that would really
Speaker 1: for closo pylum and a lot of it in a
Speaker 1: lot of case. Let's Leon Fresco of Partner at Holland
Speaker 1: and Night speaking with Bloomberg's June Grosso. You can catch
Speaker 1: more of that interview, plus analysis of the latest legal news,
Speaker 1: by subscribing to the Bloomberg Law podcast or downloading the
Speaker 1: show at Bloomberg dot com. Slash podcasts, and attorneys can
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