Loretta Mester, Brian Curtis, Raphael Bostic discussed on Bloomberg Daybreak Asia


Very hot inflation report as you heard there yet, the market seems to be approaching this in a kind of measured way, why? Well, if you listen this hour, you will probably get some of the answers. Stay with us. Good morning to you from Hong Kong. I'm Brian Curtis. And I'm Paul Allen, in Sydney, where it's one minute past ten on Thursday morning. We've got the ASX kind of flattened the early going, but the knee can cost me opening up as well for look at what's going on. Hey Paul, yeah, it's all about the inflation story here. We had a very hot reading on consumer level inflation in the states with an annual increase of 9.1% of the month of June. You guys will take a closer look at that momentarily. It was Raphael bostic the head of the Atlanta fed bank who reacted by saying everything now is in play in terms of policy action and about an hour and a half ago here on the Bloomberg day break Asia and on the Bloomberg platforms we heard from a very hawkish Cleveland fed president Loretta mester will have some of that story coming up for you as well. In the opening moments, the nikkei is down about 6 tenths of 1% using the WE I function on the Bloomberg terminal. You can see clearly that its energy leading the nikkei lower WTI crude oil right now is down about half of 1% were trading 95 90 here in the electronic session. So with talk of the fed needing to be more aggressive, the conversation then turns to the risk of recession that's very much on the mind of investors particularly on the equity side, the energy group within the Japanese equity market right now is down about 1.3%. In Seoul we have the Cosby sagging by about 7 tenths of 1%, although in Sydney, the ASX 200 showing a little bit of positivity, material shares helping to send the index up by about a tenth of 1%. U.S. interest rates across the treasury curve moving a bit higher not by much we've got a two year now at three 17 up by about two basis points ten year at two 94, so we do remain inverted and that's where we're getting the signal on inflation. Dollar strength right now with the Bloomberg dollar spot index higher by about two tenths of 1%. More on markets in 15 minutes, Brian. Wow, you were just talking about, we've got the two year at three 17, the tenure at two 94, and that is a quick 23 basis points, amazing, yeah. All right, let's get to that retail inflation report 9.1% compared to last year. The largest gain since the end of 1981. In response, the Atlanta fed president Raphael, bostic saying everything is in play, is comments fueled bets on the fed possibly hiking its rate up 100 basis points this month. And we heard earlier from Cleveland fed bank president, Loretta mester, she told us that that needs to stay the course on curbing inflation. We're going to have a meeting and we're going to talk about what the appropriate path of policy is. And again, you know, we don't have to make a decision today. We're going to take into account all the data. But, you know, we're having this conversation, the markets are having a conversation and putting their money where their mouth is in terms of where market expectations are. So we're going to be talking about the appropriate path of policy and I have not seen any convincing evidence that inflation is from the corner. Last month, fed chair Jay Powell told reporters a hike of 50 or 75 basis points was likely this month. Since then, a majority of colleagues, as echoed that line or endorsed an even bigger move. Well, today, SEC chief Gary gensler says he's not particularly confident on a deal to access order reports for Chinese companies traded in the U.S.. He said good faith negotiations with Chinese authorities continue, but there is a risk officials from both sides help calls this month aimed at keeping about 200 Chinese stocks from being delisted at U.S. exchanges. The critical issue is full access to auditor's reports without redactions as it stands China must turn over those documents to the public company accounting oversight board by the spring of 2024. Otherwise, U.S. listed Chinese shares could be kicked off the New York Stock Exchange and NASDAQ stock market. Coming up in a few moments, we will be discussing the fed action and what's happening with markets with Danielle dimartino booth, CEO and chief strategist at quill intelligence. That's coming up. The time now 5 and a half minutes past the hour it's time for news

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