BOJ, Brian Curtis, Juliet Sali discussed on Bloomberg Daybreak Asia


In in the Asia Pacific, good day if you're listening elsewhere. I'm Brian Curtis here in Hong Kong. And I'm Juliet sali in Sydney. Let's get straight to New York City for a check of how things are shaping up for the Asian trading session with Bloomberg's Chris net Doug. Hey Jules, a little bit of positivity here. That was the case in the U.S. session. Seems to be that worries over inflation are less intense today, producer prices in the U.S. down in August for a second straight month. That may have been one of the reasons why the chief economist at JPMorgan, Michael feroli was saying the fed is unlikely to raise rates next week by a hundred basis points. Right now, the swaps market giving a higher probability of a 75 basis point move. Today in terms of market action, we had the yield on the two year rising a mere three basis points at one point Tuesday with that hotter than forecast reading on CPI we had the yield on the two year jumping 22 basis points. Here we are in the Tokyo session with a two year yielding three 79 a ten year now at three 39, terms of equity market action. We've got the nikkei rising just two tenths of 1%. We had some my eco data for Japan, a short while ago, August exports up 22.1%. That's year over year, a little bit below what the street was looking for. I think the estimate was around 24.1, the end continuing to strengthen right now at one 42 99. It was yesterday that the nikkei reported that the bank of Japan or at least officials at the BOJ conducted a so called rate check with a number of banks, it seems like the BOJ is concerned right around that one ¥45 to the dollar level, although the finance minister warned he would not rule out any response if the current trend were to continue, but we, as I said, have seen a little bit of strengthening in the current session. Install the cost may now rising just two tenths of 1% and in Sydney, the ASX 200 ahead by a tenth of 1%. More on markets in 15 minutes, Brian. Telling the other interesting part of that trade debt you mentioned was that Japan's imports were up 49.9% and think about how expensive that must have been with the weekend like it is. And that's a year on year number. It was a little stronger than what we saw in July, which was up 47.2%. So quite amazing, no doubt that oil playing a very big part in that. All right, the time is three minutes past the hour. Let's get to some of our news stories for you. Shares in Moderna rising 6.2% today for their largest gain since August, Reuters reported the company has held talks to supply COVID-19 vaccines, mRNA in a vaccine to China. Moderna's CEO Stephane bonsell said that the company has the capacity to supply those shots. Even so no decisions have formally been made yet. But also said that Moderna is considering building facilities in Japan to produce mRNA derived products. He was speaking on the sidelines of a media conference in Tokyo, and despite today's gain shares in Moderna are actually down this year quite significantly off 46% year to date. Well, the U.S. rail worker strike could begin on Friday, that's when about a 125,000 union members might walk off the job, given the possibility freight railroad companies are planning to halt shipments starting Thursday. The White House is considering an emergency decree to keep key goods flowing. In the meanwhile, U.S. labor secretary Marty Walsh is leading negotiations between freight rail companies and unions, Toyota is among the many companies looking for backup plans in his Toyota senior vice president, Andrew Gilliland. We have contingency plans for storage and different places throughout the United States. We would use trucking as a backup. But again, as I said earlier, we want to encourage everybody to try to work this out. I think rail for not only our industry, but many of the industries in the United States is absolutely critical. If a strike does occur, it will potentially cost the U.S. economy more than $2 billion a day. A time now coming up on 5 minutes past the hour, our guests with us in our studios here. Martin henneke, Asia, investment director Saint James's place wealth management. We'll be chatting about markets with Martin. He always has some spicy views for us. We'll get to that in just a moment. Now it's time for global news

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