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Speaker 1: This is BlueBag Daybaker for this Friday, the twenty eighth

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Speaker 1: of April in London.

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Speaker 2: Coming up today, taking the reins. The boj's new governor

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Speaker 2: scraps forward guidance on rates and plans a review of

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Speaker 2: monetary policy.

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Speaker 1: Stormy Wheather Ahead, Amazon jolts investors with talk of a

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Speaker 1: slowdown in cloud growth.

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Speaker 2: In Activision, Gaming Giant CEO calls the UK's decision to

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Speaker 2: block Microsoft's sixty nine billion dollar takeover irrational.

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Speaker 3: You turn on the plan to scrap all EU laws.

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Speaker 3: I earn over one hundred and twenty five thousand pounds

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Speaker 3: and it's not enough. And HMB heads back to Oxford Street.

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Speaker 3: Those other stories we're looking at in today's papers and

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Speaker 3: nine lean gerns.

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Speaker 1: Plus pushing back against pill Nearly two thirds of companies

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Speaker 1: say they plan to raise prices. In a headache for

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Speaker 1: the Bank of England.

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Speaker 4: That's all straight ahead On Bloomberg Daybreak Europe, the business

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Speaker 4: news you need to start your day in just one

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Speaker 4: fifteen minute podcast on Apple, Spotify, the Bloomberg Business App

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Speaker 4: and everywhere you get your podcasts.

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Speaker 2: Good morning, I'm Stephen Carroll.

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Speaker 1: And I'm Caroline Heger. Here are the stories that we're

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Speaker 1: following today.

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Speaker 2: The Bank of Japan has scrapped guidance on future rates

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Speaker 2: and announced a review of its ultra loose monetary policy.

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Speaker 2: The announcement comes at the first BOJ meeting under the

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Speaker 2: new leadership of Governor Kazo Wada. Former BOJ assistant Governor

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Speaker 2: Kazua MoMA told Bloomberg that the central Bank still fears

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Speaker 2: ultra low inflation.

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Speaker 5: On most important thing we have to keep in mind

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Speaker 5: in terms of the mindset of boj is at the BOJ,

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Speaker 5: watsgo aboard any discs who are failing to achieve two

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Speaker 5: percent differential targets to have around actual This is thing

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Speaker 5: was in generational opportunity for the but to grab to

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Speaker 5: achieve two persent deferation.

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Speaker 2: For a BOJ certain governor Kazua Mama speak to spoke

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Speaker 2: to Bloomberg is Speculation is growing that the central Bank

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Speaker 2: is laying the ground to revise its yield curve control.

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Speaker 2: The policy has led to the BOJ owning around half

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Speaker 2: of all Japanese government bonds.

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Speaker 1: Now to earnings, Amazon says that growth in its cloud

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Speaker 1: computing business is continuing to cool the warning, dashing hopes

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Speaker 1: that the company's most profitable division could ride out the

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Speaker 1: current downturn in tech spending. Amazons CFO Brian Olsavski told

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Speaker 1: investors that the slowdown is continuing this.

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Speaker 6: Month as expected. Customers continue to evaluate ways to optimize

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Speaker 6: their cloud spending in response to these tough economic conditions

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Speaker 6: in the first quarter, and we are seeing these optimizations

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Speaker 6: continue into the second quarter, with April revenue growth rates

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Speaker 6: about five hundred basis points lower than what we saw

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Speaker 6: in Q one.

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Speaker 1: Olsavsky spoke after Amazon posted a sixteen percent jump in

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Speaker 1: first quarter revenue for its web services business. The world's

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Speaker 1: largest online retailer posted an overall quarterly profit that did

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Speaker 1: top estimates, with revenue increasing by nine percent to just

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Speaker 1: over one hundred and twenty seven billion dollars.

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Speaker 2: Activision Blizzard CEO says the decision by UK regulators to

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Speaker 2: block Microsoft's takeover of his company is irrational. Speaking to Bloomberg,

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Speaker 2: Bobby Kotek said the two firms are now preparing to

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Speaker 2: challenge the decision.

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Speaker 7: It clearly is in a rational conclusion, and I think

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Speaker 7: we have every expectation, as does Microsoft, that we should

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Speaker 7: prevail in an appeal with the tribunal.

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Speaker 2: Cotex comments come after Microsoft's president Brad Smith called the

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Speaker 2: decision to block the deal bad for Britain. On Wednesday,

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Speaker 2: the UK's Competition and Markets Authority effectively banned the deal,

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Speaker 2: saying that it'll give Microsoft an unfair advantage in cloud gaming.

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Speaker 1: Well here in the UK, business confidence rose to an

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Speaker 1: eleven month high this month, driven by optimism in hospitality

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Speaker 1: and financial services. According to Lloyd's Banks Business Barometer survey,

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Speaker 1: sixty one percent of companies intend to raise prices over

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Speaker 1: the next year. The findings feed into concerns at the

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Speaker 1: Bank of England that upward pressures on prices may become

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Speaker 1: more persistent.

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Speaker 2: US growth slowed more than forecast in the first quarter

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Speaker 2: of this year. GDP rows by one point one percent

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Speaker 2: in those three months, less than one point nine percent

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Speaker 2: forecast in Bloomberg's survey. The slowdown largely driven by an

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Speaker 2: inventory drawdown. Consumer spending grew at a strong three point

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Speaker 2: seven percent annualized pace, up from one percent previously. Frustratingly

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Speaker 2: for the FED, The Center Bank's preferred core gage of

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Speaker 2: prices picked up to four point nine percent in the

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Speaker 2: January through March period. Bloomberg Economics continues to project a

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Speaker 2: US recession starting in the third quarter.

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Speaker 1: Meanwhile, Federal Reserve emergency loans have risen again amid renewed

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Speaker 1: financial stress. Bloomberg's Valley Titel reports.

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Speaker 8: US banks increased emergency borrowing from the Fed for the

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Speaker 8: second week in a row, underscoring the ongoing stress in

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Speaker 8: the financial system. Just over one hundred and fifty five

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Speaker 8: billion dollars of loans were outstanding through two back stop

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Speaker 8: lending facilities in the week through April twenty six, compared

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Speaker 8: to one hundred and forty four billion in the previous week.

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Speaker 8: Volatility in the banking sector could complicate next week's FED decision,

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Speaker 8: which is widely expected to see rates increase by twenty

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Speaker 8: five basis points to more than five percent in London.

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Speaker 8: On Valerie Titel Bloomberg Daybreak euro Up.

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Speaker 2: So those are some of our top stories on the

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Speaker 2: program this morning. Caroline as a as a renter, I

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Speaker 2: was very, very surprised, shocked. I'm not sure that I

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Speaker 2: am actually that shocked when I think about it, but

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Speaker 2: London rents have topped two five hundred pounds for the

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Speaker 2: first time ever as the slowest even though it's we're

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Speaker 2: seeing a slower pace of increasing, but it's just looking

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Speaker 2: at a position where renting in the capitol it seems

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Speaker 2: to be getting even more impossible than it was previously

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Speaker 2: as prices push hires. These are figures from Right Move.

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Speaker 2: They say that asking rents rose zero point nine percent

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Speaker 2: in the first quarter of twenty twenty three, which is

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Speaker 2: a slow down in growth but still pushing over that

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Speaker 2: two and a half thousand pounds level.

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Speaker 1: To really look, I think that the thing though about

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Speaker 1: consumers at the moment is that they have been surprisingly

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Speaker 1: resilient and we see that again and again, and just

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Speaker 1: look at that Lloyd's Business Barometer, the fact that so

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Speaker 1: many businesses two thirds of businesses are still expecting to

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Speaker 1: push prices up over the next twelve months. No, look,

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Speaker 1: I'm not shocked that rents have gone up so significantly,

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Speaker 1: but yes, I think is whether there is a tipping

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Speaker 1: point for consumers that I think is very important in

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Speaker 1: terms of the Bank of England's thinking.

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Speaker 2: Yeah, and although the quarter on quarter figures are quite small,

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Speaker 2: asking rents are up fourteen percent year on year and

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Speaker 2: rising faster and outer London, which is centtioning because we've

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Speaker 2: were still unpicking the dynamic of the people that moved

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Speaker 2: out of central London during the pandemic and then came

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Speaker 2: back and an hour perhaps having to be pushed further

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Speaker 2: out again as prices still go higher at right Move

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Speaker 2: says that supply of rental properties still forty six percent

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Speaker 2: below twenty nineteen levels, so you're looking at still a

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Speaker 2: huge supply problem in the market as and you know

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Speaker 2: that's also partly linked to higher mortgage rates because you're

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Speaker 2: looking at the fact a lot of landlords who have

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Speaker 2: bite let mortgages are facing higher costs for how they

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Speaker 2: you know, for their own business, for their own properties,

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Speaker 2: which means the tenants are going to have to pay

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Speaker 2: more as well. So it's sort of a cycle argument

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Speaker 2: in that as well. It was a really interesting to

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Speaker 2: see those latest figures from right Move. That is one

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Speaker 2: of the stories that we have stuck out for us

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Speaker 2: on the terminal this morning.

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Speaker 1: Absolutely, but let's return to the top story this morning,

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Speaker 1: which of course is the Bank of Japan meeting, which

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Speaker 1: has seen it scraped forward guidance and also announce a

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Speaker 1: review of monetary policy. So the decision came a little

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Speaker 1: bit later than usual. It also laid out some of

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Speaker 1: the priorities at the Bank now has under its new governor,

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Speaker 1: Caswa a Wada. So let's go live to Tokyo and

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Speaker 1: speak to Bloomberg's Kathleen Hayes. Kathleen, who better to have

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Speaker 1: you on today? I mean, this has been really a

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Speaker 1: very important meeting. No change to policy, but a review

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Speaker 1: over the next eighteen months and many other lines of

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Speaker 1: interest to mine.

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Speaker 9: Well, you know, I think there were there were no

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Speaker 9: surprises here. That's part of it, the fact that they did.

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Speaker 9: For example, let's start with the policy review. It had

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Speaker 9: been released in one of the major major news outlets

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Speaker 9: here in Tokyo that that's probably that would probably happen.

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Speaker 9: That was sam Cane News over the weekend, and they

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Speaker 9: suggested it would be something over like over twenty five

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Speaker 9: years perhaps and play out over a year to a

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Speaker 9: year and a half. That's way longer than any Polish

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Speaker 9: review as has ever been. In twenty sixteen, early twenty

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Speaker 9: sixteen when they first went to negative rates, there was

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Speaker 9: a month and a half policy review. So obviously Governor

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Speaker 9: Raya is looking to take on some deep structural look

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Speaker 9: and you know it's room he said to be. In fact,

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Speaker 9: in the past it publicly said he thought there were

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Speaker 9: side effects for meal curve control that he didn't think

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Speaker 9: were positive, and a lot of people figure that he's

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Speaker 9: not really a big fan of it. But here we are.

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Speaker 9: We've got it now, So that's significant. And in fact,

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Speaker 9: the changing the guidance was just a real easy thing

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Speaker 9: to do because they took out a reference to COVID

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Speaker 9: would have been in there since twenty nineteen, that you

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Speaker 9: would maintain eat very easy policy. He rates low as

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Speaker 9: they are or lower in concern of the uncertainty of COVID. Well,

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Speaker 9: COVID's over. The government's going to drop all its COVID

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Speaker 9: specifications now by the middle of the month, So it

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Speaker 9: was an easy way to maybe just take out that

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Speaker 9: that old what did your easy monetary policy stance and

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Speaker 9: from the door to something new. But no big changes yet.

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Speaker 2: There either, Katherine. The hints though, that we got from

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Speaker 2: these subtle changes essentially paving the way for an end

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Speaker 2: or a significant change to yocur of control.

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Speaker 9: Well that I don't think that's I think we can

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Speaker 9: assume there's going to be a major change to YOCRE

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Speaker 9: control at some point, because it was never intended to

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Speaker 9: be a permanent policy in the first place. They the

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Speaker 9: ownership of jgb's ninety percent of the outstanding tenures is

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Speaker 9: kind of a problem. They hardly trade anymore, thanks aren't

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Speaker 9: making money on them. But when how soon does it come? Well,

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Speaker 9: we have to wait through a good portion of this review.

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Speaker 9: Will we have to see that inflation goes up and

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Speaker 9: stays up. And I think that's to me, was one

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Speaker 9: of the most deciding things I saw when when the

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Speaker 9: headlines first crossed that they've raised some of their key

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Speaker 9: inflation forecasts this year. No surprise, they could still say, well,

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Speaker 9: don't get too excited because it might be not sustainable

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Speaker 9: and stable. But they even raised some parts of the

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Speaker 9: twenty twenty four forecast as well, and that, I think,

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Speaker 9: to me is one of the things that most opens

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Speaker 9: the door if they get convinced that inflation is going

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Speaker 9: to stay above two percent easily regularly, not just suddenly

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Speaker 9: turn around. When people realize, you know, that it's still Japan.

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Speaker 9: They don't want their prices to rise. I think that's

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Speaker 9: be one of the biggest things that helps them get

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Speaker 9: ready for shifting Yoka control.

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Speaker 1: We will hear from Caso Rada. We haven't heard from

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Speaker 1: him yet. In terms of the press confidence. What are

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Speaker 1: you going to be listening out for? Of course, his

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Speaker 1: first major press.

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Speaker 9: Conference, all these questions are going to be asked of him.

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Speaker 9: What will he say, you know, will he will he

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Speaker 9: be clear on that he is not ready to look

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Speaker 9: at you old curve control yet, that he thinks it

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Speaker 9: is something that we looked at under this long term

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Speaker 9: policy review, but we're not sure what we're going to

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Speaker 9: come up with those that the kind of thing that

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Speaker 9: he would say. But it's very interesting speaking to the

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Speaker 9: number of people who have been at a boj uh

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Speaker 9: you know, or watching the boj very closely. Ria Mishihara,

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Speaker 9: who is at JP Morgan Security, still thinks that they

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Speaker 9: could make a move on YCC as early as June

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Speaker 9: uh and or certainly July. She thinks that this is

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Speaker 9: an open window because the yen is in a stable

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Speaker 9: range bondy old jgbs are not pushing against the upper

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Speaker 9: edge of the bound and is something that's going to

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Speaker 9: have to happen anyway. So let's listen to mister a

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Speaker 9: way then hope he gives us the more you know,

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Speaker 9: current guysans on what's on his mind and a sense

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Speaker 9: of where he wants to go next.

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Speaker 2: Kathleen Hayes, Boomberg's Global Economics and Policy editor, thank you

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Speaker 2: very much for bringing us the latest from Tokyo on

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Speaker 2: that Bank of Japan decision.

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Speaker 1: Coming up next that you turn on the plan to

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Speaker 1: scrap all EU laws. I earn over one hundred and

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Speaker 1: twenty five pounds and it is not enough and HMV

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Speaker 1: heads back to Oxford Street.

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Speaker 4: Now the paper review on Bluebird Daybreak Europe, the news

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Speaker 4: you need to know from today's papers and.

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Speaker 2: Blue Brigsley and Gerrans joins us. Now the details of

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Speaker 2: those stories. Leanne, let's start into the Indie Financial Times.

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Speaker 2: You turn on UK government plan to scrapp a revise all.

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Speaker 3: EU law Steven, Hello to you and happy Friday and

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Speaker 3: Britain after Brexit. While it continues to cause divisions as

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Speaker 3: the government retreat from its pledge to ditch EU laws,

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Speaker 3: now the Financial Time says there is absolute fury among

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Speaker 3: Conservative Brexit supporters at this news that large sections of

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Speaker 3: Brussels legislation will actually stay on statutute books here in

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Speaker 3: the UK. Now the Conservative government is set to abandon

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Speaker 3: its controversial plan to review or scrap all EU era

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Speaker 3: law and that will be by the end of this year,

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Speaker 3: which is actually Foster approaching. It's not long away, and

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Speaker 3: Kenmy Baidenot told Tory brexiteers only around eight hundred laws

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Speaker 3: will now be scrapped out of the four thousand that

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Speaker 3: was drawn up in the retained EU Laupel.

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Speaker 2: Yeah, it's interesting because this has been flagged by civil

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Speaker 2: servants for a long time that this is a huge

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Speaker 2: task to unpick all of this and replace it, even

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Speaker 2: if they're replacing it with the same thing, but it's

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Speaker 2: a huge administrative task and trying to do it was

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Speaker 2: always going to be a big problem.

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Speaker 1: And I'm sorry you've managed both of you to avoid

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Speaker 1: saying the word that the Conservative government. You talked about

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Speaker 1: the bonfire of legislation.

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Speaker 3: Well, Caroline, I'm glad that you said the bonfire of legislation.

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Speaker 3: But if you have a look at the BNS story

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Speaker 3: that our very own Alex Wickham has written, bonfire of

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Speaker 3: legislation is in his top line. But I just want

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Speaker 3: to go back to what Stephen said, and he's absolutely correct.

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Speaker 3: There's sort of a sigh of relief from business and

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Speaker 3: civil servants if you do read the piece and the

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Speaker 3: ft who have been given this massive task of overhauling

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Speaker 3: all this law and regulation, and it just seems to

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Speaker 3: be that there were angry exchanges on Monday after the

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Speaker 3: Business Secretary told Tory MPs these plans. But she also

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Speaker 3: says we need to be cautious. So is there now

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Speaker 3: a more cautious tone surrounding this coming from Kenny Badenoch.

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Speaker 1: Yeah, and the Stuna government. The Telegraph says, iron over

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Speaker 1: one hundred and twenty five thousand pounds and it's not enough.

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Speaker 3: Yes, So Jeremy Hunt announced that the threshold for the

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Speaker 3: top rate of income tax was to be cut from

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Speaker 3: one hundred and fifty thousand pounds to one hundred and

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Speaker 3: twenty five one hundred and forty pounds, and since April

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Speaker 3: around two hundred and thirty two thousand workers have found

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Speaker 3: themselves paying forty five percent rate for the first time.

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Speaker 3: Now the newspaper has spoken to three people who have

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Speaker 3: been heavily impacted by this decision. Laura, she's forty three

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Speaker 3: speaking to the Telegraph. She's an executive recruitment consultant, has

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Speaker 3: a salary of one hundred and thirty thousand pounds. She

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Speaker 3: says she takes home eighty two thousand pounds. Now what

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Speaker 3: I found interesting is she says what devours her money

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Speaker 3: is the terrifying rate of bills, mortgage, childcare, school fees, travel, gas, electricity.

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Speaker 3: But one thing she really honed in on was the

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Speaker 3: ludicrous sum she pays for a sun to go to

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Speaker 3: nursery full time, one thousand, eight hundred pounds per month.

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Speaker 3: They also spoke to Thomas, who is forty three, a

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Speaker 3: bank risk director who earns one hundred and forty five

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Speaker 3: five thousand pounds takes home eighty six thousand pounds. He

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Speaker 3: also said the cost of childcare for two of their children,

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Speaker 3: not even full time, is absolutely crippling.

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Speaker 2: Right, some stark figures there. Leanne just a word to

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Speaker 2: talk about the time story HMV to reopen. It's a

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Speaker 2: historic store on Oxford Stream.

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Speaker 3: I just feel so excited.

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Speaker 2: You so do I?

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Speaker 3: Yes, I just feel like, yes HMV. Do you remember

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Speaker 3: how much we loved looking for our discount CDs. But

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Speaker 3: apparently it's all reopening and they're going to be focusing

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Speaker 3: on pop culture merchandise like vinyl because that's made this

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Speaker 3: huge resurgeon. Yes, I just want to say one thing.

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Speaker 3: The owners of HMV said people have been walking into

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Speaker 3: the shop and they've never seen cassette tapes.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 2: stories making news from London to Wall Street and beyond.

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Speaker 1: Look for us on your podcast feed every morning, on Apple, Spotify,

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Speaker 1: and anywhere else you get your podcasts.

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Speaker 2: You can also listen live each morning on London Dab Radio,

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Speaker 2: the Bloomberg Business app, and Bloomberg dot Com.

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Speaker 1: Our flagship New York station, is also available on your

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Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

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Speaker 1: I'm Caroline Hepka and.

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Speaker 2: I'm Stephen Carol. Join us again tomorrow morning for all

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Speaker 2: the news you need to start your day right here

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Speaker 2: on Bloomberg Daybreak Europe