Jim Bullard, Doug, Bloomberg Interactive Broker Studio discussed on Bloomberg Daybreak Asia


Positivity on the Chinese mainland, if you're joining from the region this morning, good morning, I'm Doug prisoner at the Bloomberg interactive broker studio in New York. And I'm Bonnie quin right alongside him, and, as you say, it's only a half hour into the trading session, but boy have we had a raft of news out of China already from regulation to renaissance Doug, let us know how things are shaping up for the trading day. Let's get to Brian. Yeah, let's take a closer look, as Doug mentioned, we are seeing some very modest gains in the CSI 300 here up about a tenth of a percent, a little bit stronger for the Shanghai composite up about three tenths of a percent. For the most part, the rest of the region has been lower this morning. Although Singapore has rally, the straights times index up a little more than a half of 1%. But some of the concerns were raised by the sharply edged of PPI report in the United States, produced the prices rebounding in January by the most that we've seen since June. And we had new home construction sliding for a 5th month in January and also had weekly jobless claims falling to 194,000 below expectations of 200,000. It brought out a couple of fed officials starting to talk about 50 basis point rate hikes at perhaps the next meeting. We'll get you details on that coming up. But that did rattle the market to a certain degree. We had yield shooting up a little bit and at the moment in Tokyo, the ten year yields at 3.89% and the two year is at four 67, WTI $78 right on the button. So we're definitely seeing some selling in some of the markets like in Tokyo and Sydney, but it's in the range of about a half a percent lower. Douglas back to you. All right, Brian, we heard today from two fed hawks one as St. Louis fed chief Jim bullard he was saying he would not rule out supporting a half point rate hike at the March meeting, and he urged additional rate hikes to ensure inflation does return to that 2% target over time. I think we can lock in this disinflationary trend by continuing to have policy rate increases during 2023, even though the real economy looks like it's going to continue to grow and the labor market broadly across the country looks like it remains strong. St. Louis fed bank president Jim bullard there earlier in the day the head of the Cleveland fed Loretta mester was saying she saw a compelling case for rolling out a half point rate hike. Last month when the fed met, that would have brought the fed's target range to around 5%, it's above that now if you're listening to some of The Economist over at Goldman Sachs and Bank of America, they have baked in another 25 basis points at the June meeting. Now back to master, she said the fed has to be prepared to increase rates if inflation does remain stubbornly high. Bunny? Well, Tesla dog is recalling more than 360,000 full self-driving U.S. vehicles over crash risk, but Elon Musk is objecting to the use of the term recall more from Bloomberg's Denise Pellegrini. This includes some 2016 to 2023 Model S's and model X's, some 2017 to 23 model threes and some 2020 to 2023 model wise. All equipped with full self-driving beta software are pending installation, and that should a highway traffic safety administration officials say the system may allow the vehicles to act unsafe around intersections, including driving straight through intersections from a turn lane. The officials say Tesla did not concur with nhtsa's concerns, but agreed to go forward with the recall out of an abundance of caution. Tesla is expected to issue an over the air software update by the middle of April. Denise Pellegrini Bloomberg day break Asia. Well, Beijing is said to be reviewing a recent deal between Ford Motor and the Chinese battery maker cattle now the concern here is that no core technology from cattle would be handed over to Ford. Let's get more from Bloomberg's Ivan man. The agreement would see cattle's battery technology license for use in Ford's new EV battery plant in southwest Michigan, but China is said to be concerned given the sensitivity of the deal and its implications for U.S. China relations. Sources say the findings will be presented to the country's top leadership, but the time frame for that is not yet known. Chinese officials will also check that individual sanctioned by Beijing are not involved in the Ford cattle project. Meantime, U.S. Senate intelligence chairman Mark Warner criticized Beijing scrutiny as quote ironic and hypocritical. In Hong Kong, I'm Ivan ma'am, Bloomberg, Debra, Asia. It is almost 6 minutes past the hour and time now for global news. U.S. president Joe Biden looking to cool off tensions with China saying he intends to talk with China's president Xi Jinping. Let's get

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