Ed Baxter, NHK, Putin discussed on Bloomberg Daybreak Asia

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In Sydney, where it's one minute past nine Thursday morning, and we're looking at a flat open here when we get going at the top of the next hour. For a closer look and let's get to Brian Curtis in Hong Kong, Brian Yeah, we're just sort of meandering a little bit to the downside for most as you mentioned flattish in Australia with with the futures contract, they're just up a little up. 1/10 of 1% Hang Seng Index futures down 6/10 of a percent. Similar losses for China Futures S and P E Mini is down about a quarter of a percent. It was a little bit of a hawkish turn from the Fed. At least in words, if not actions, and we saw bond yields jump, So did the dollar and stocks fell for a second day. Stocks turned around a little bit after the Fed chief Jerome Powell downplayed some of the risks of any kind of immediate actions immediate rate increase, for instance, But they did admit that they are starting to talk about tapering so stocks down. Fed officials signal that they would begin dialing back the stimulus that has fueled the recovery and helped curb the pandemic. We saw the S and P 500 down a half a percent. The Dow Jones industrial average down three quarters of 1%, the NASDAQ Down one quarter of a percent. The vics rose up to 18.15 and the dollar strengthened 0.9%. That was a pretty significant move. We had the yield on the tenure. Up to 1.57% and the consequently we've got to weaker Asian currencies here this morning Dollar yen at the moment. 1 10 70 the oil price 71 53 gold is trading down two and a quarter percent. At $1819.10 an ounce a couple of quick lines that just moved New Zealand's first quarter GDP expanded 1.6% quarter on quarter that was better than the estimate of 0.5%. And Richard Lee's fwd, That's a big insurance company is said to have filed confidentially for an IPO in the United States. Doug All right, Brian, Thanks Well, let's take a closer look at this hawkish pivot Fed Chair J. Powell, saying that policymakers have begun the debate on when to scale back those asset purchases. And at the same time equally as important. The Fed's latest dot plot forecast shows 11 committee paid members now anticipate at least two to interest rate increases by the end of 2023. Here's Powell. Lift off is well into the future, the conditions for lift off we're very far from maximum employment. For example, it's a consideration for the future, so the near term thing is really is really about the path of asset purchases. And as I mentioned, we had a discussion about that today and expect to future meetings continue to see you think about our progress. All right, so there you have it. That's official. Powell also said the discussions about raising rates would be highly premature as today's forecast are merely And I'm speaking here of the dot plot merely individual projections. Now the Fed also marked up its inflation forecast through the end of 2023, the Fed's preferred measure of price pressures. Is forecast to rise 3.4% this year as the American economy reopens, Paul At the same time, Treasury Secretary Yellen said. The U. S as well on the way to a strong recovery. Yellen said the American rescue plan is allowing Americans to make it to the other side of the crisis. Here's Yellen, speaking to the Senate Finance Committee, as the economy's opening back up again, Prices are now moving back towards normal levels in Leisure hospitality airfares in the like I believe our economy is on track to get back to more normal, um, operation and that inflation will decline over time, but we're going to monitor it monitored this very, very carefully. Yellen said the U. S still faces challenges on a number of fronts, wage inequality, declining labor force participation, racial gaps and climate change. She urged lawmakers to back President Biden's proposal for a multi year $4 trillion spending plan on childcare, infrastructure and green investments. The administration's proposed a series of tax increases on companies and wealthy Americans to pay for the proposals. It will take a closer look at market action with our guest Kyle Radha, from IG markets after we update you on global news After a three hour meeting today in Geneva, both the U. S president and the Russian president say there was an agreement to work on issues going forward. Seems a little nebulous. But let's find out more at Baxter covering it all from the Bloomberg 9 60 newsroom at San Francisco, Eddie. Oh, ye of cynic. Faith. Wow. Yeah, I think it was meant to be, though you're right. Both Joe Biden, Vladimir Putin, Doug said. They did not want to go back into a cold War footing. Putin saying Mr Biden agreed to extend the Salt Treaty regarding cyber warfare. He, through a translator said the US is more to blame than Russia. U. S sources claim that the majority of cyber attacks Are made from the U. S territory. Then the second one is Canada than to Latin American states and then the UK. Yeah, and Mr Biden responded them by saying, I pointed out to him. We have Significant cyber capability. He knows he doesn't know exactly what it is, but it's significant. If, in fact they violate His basic norms. We will respond Yeah, and with regard to a human rights, Putin says the use of the word killer should be chosen very carefully because the US itself kills shooting. From a drone at an unarmed crowd. Clearly the civilian crowd. What is this about? And Mr Biden said he made his point regarding election Albany and more regarding human rights. I made it clear The President Putin. Will continue to raise Issues of fundamental human rights because that's what we are. That's who we are. The idea is we hold these true self evident now, Mr Biden said. The US Protect Ukraine, Mr Putin said Ukraine must be kept from having nuclear capabilities. Biden also says he talked to US position on election interference. I made it clear that we will not tolerate attempts to violate our democratic sovereignty or just stabilize our democratic elections that we would respond. Now Bloomberg Maria today Oh, in Geneva, says there were no real breakthroughs. None was expected. She also says for Mr Biden, no negatives did say that if Navalny specifically the Russian opposition to Vladimir Putin days and priests and there would be big repercussions for Russia, that can mean more sanctions, So he did not come out of this looking weekend that you could argue to some extent as a win. Maria says as a whole European trip is a win from G seven and NATO, the EU commission he promised strength and seemed to deliver He being Biden. Japan's government has decided to lift the state of emergency in Tokyo and eight other prefectures when the current mandate expires. June 20th. It plans to leave it in place in Okinawa through July 11th because of cases there, NHK. Thailand is planning on total reopening of 120 days, it says it needs to ease the suffering of its people. Moscow has ordered mandatory covid vaccinations that says is fighting hospital strain. This applies to municipal workers and the service sector and US will buy it says 200 Million more Moderna doses, including other potential vaccine candidates, impossible. Booster shots in San Francisco. I'm Ed Baxter, This is Bloomberg Dog. All right. Eddie will check back in 15 minutes from now. Our guest is Kyle Rata. He is market analyst at IG markets on the line from Melbourne..

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