Past 9 00 a. M. , we are an hour away from the open of asias first major market and the start of a new trading week. It is just past 6 00 in new york. Weekend for Central Bank Policy makers the world. I spent the last three or four days in new york. It is kind of like a monetary rock festival. The final act, the g 30 this weeing in new york, the hours in hong kong. We had janet yellen, kuroda, it was amazing. Yes, sort of like coachella for nerds. It is interesting. This kind of mantra of saying we are going to get tightening and we are on track, and yellen and draghi are saying inflation will pick up next year. Have we all been underestimating it . There you go. We will get into this quite a bit through the show, and including the inflation number , a little bit of a sour note but ignored for now. Trying to say quickly, stocks close higher across the border, across the board, bonds rallied after the cpi came in weaker. You can see s p up two points, the dow up about 1 10, the nasdaq gained 2 10, 14 points to 6605. Futures are higher across the board for stocks. That is right. Take a look at what we are setting up your it has been picky for asian stocks. Take a look at trading shaping up in the early hours in new zealand, the index is up about down, i should say about teutons, a slower start of the down abouthould say 2 10, a slower start for the week. We have the start of the anticipated Party Congress, geopolitics very much in the fray, but a big data week at of china. Domestic activity numbers, were seeing potentially a little bit of upset. The nikkei also showing a positive open. Lets get you uptodate with the first word news. U. K. Prime minister theresa may will visit her leading eu brexit cap parts on monday. Divorce talks are effectively deadlocks. She will meet with a negotiator and commission president. The latest round of negotiations wrapped up last week, with reportedly the u. K. Not offering plans bid plans. Monday to tellil spain if they are going to declare independence. Declared rule has of the union. Big banks have agreed not to recognize catalonia if it declares independence. South korea and the u. S. Launched military exercises later on monday, and Officials Say kim jongun may test a longrange missile this week. President trump has a trip to asia next month. North korean media criticized the war games. Gauge of newcast credit exceeded projections last month, the funding test remain open even as the government tries to curb excessive or when. The pboc says aggregate billiong for the 206 up from the 200 25 billion in august. In august. Lion the aussie dollar and federal Interest Rates are appropriate levels for the current state of the economy. The treasurer also said steps to cool the housing boom have taken pressure of the reserve bank of australia. Morrisons view is record low rates are not a worry and exporters can absorb the effects of the currency decline, more than 9 this year. I think it is right. It has found its level. Around thattuate point, but Australian Businesses i think have gotten astute at living with the vagaries that come with the currency. Obviously exporters like it to be lower than it is. Other regions like it higher. We will have more from our interview with treasurer Scott Morrison and about half an hour here on daybreak australia. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am paul allen. This is bloomberg. Thank you so much. Janet yellen is leading other global bankers global central bankers in saying her best guess is that prices will accelerate after a long. A long period of softness, and others are in agreement. Guess is soft readings will not persist, and with the ongoing strengthening of labor markets, i expect nexttion to move higher year and most of my colleagues on the fomc agree. Target is still a long way off, and the bank of japan will persistently pursue aggressive monetary easing with a view to achieving the target at the earliest possible time. Lets dig deeper into the Central Bank Inflation debate with a chief economist. Welcome to our studio. Glad you could join us at the end of your weekend. Tot an exciting few days hear from central bankers. Janet yellen sounded exactly like she sounded in a speech she gave a couple of weeks ago to the National Association for business economics, she went to Great Lengths to explain away the structural shifts that might explain the weakness in inflation and insist a tight labor market will push it up. She is absolutely confident inflation will pick up. She continues to talk about these one offs that have held inflation down this year. Making the case that gradual tightening requires tightening. That we are at up must to see a rate hike in december. As she said, her colleagues and herself think several more next year. Kathleen i dont know if i can so showed some trips back to back. Interesting bond rallies on friday, the core cpi 7111overyear, this is jude you can see the blue line is the core cpi, this is the 1. 3 . Ce, down to this was supposed to go up and it is staying at 1. 7. What is a tell you about inflation and what is it mean for the bond market . Look at the biggest prices on friday, medical prices down, medical services have been week all year. One off coming off. We had unusual medical price inflation. Housing prices weaker than expected. Thats because elders responded to a shortage of apartments and build more. Rents are flat in most cities and coming down in a few. I think in fact, it is almost like we have seen a sort of many i Business Cycle effect on inflation from the recession we are just coming out of our culture and mining. Eventually, yes, there will be cyclical inflation pressures, that it is too soon and maybe a too soon. O the fact the fed is tightening is slowing the inflation rise even further. Obviously it is an issue confounding governor kuroda, something mario draghi address of the weekend, but does inflation matter as much . We are kind of portrait of the idea of where the price pressure is, doesnt matter when you are seeing every other metric, you see the markets doing well, corporate profits looking healthy, does it really matter . Are hittingnk you the nail on the head with that question. Disou read the latest quarterly, that is premuch what they are saying. Maybe we need to come to terms with the fact that inflation, not just in the u. S. But globally is very low and it will be very low. Instead, we ought to focus on getting rates right so that we dont see overheating in other ways, we dont see labor markets becoming excessively tight, we dont have shortages of Raw Materials and so on. I think to some sense, were seeing the shift in central bank thinking around the world, but they are awfully slow to respond to new ideas. About weve been talking whether they should be not changing their mandate, but looking at new ways to measure growth in this inflation environment. Talking about Financial Market stability and whether we are heading toward an asset bubble, yellen and draghi have a brushoff concerns about asset prices. But the berkeley ceo said something interesting, the market feels as benign in 2017 as 2006. Chris that is right. ,f course, in the u. S. Anyway we have a new central bank chairman, we had almost half the fomc changed. Quite a few of president s and governors left when greenspan stepped down. We had a whole new team learning the game. We also had quite low inflation at that time. , bill dudley at the new york fed, who worries the fed may have been to benign and moved to slowly and allowed the asset bubble in the u. S. Housing market to inflate. As someone who ran around so many different meetings, it is amazing i think there were a lot of concerns about complacency, larry and mohamed elerian. Who would be the next fed chair . Gary coleman was at the group of 30 meeting this morning and he was talking about, we fight the last battle, banks and needing to make sure they are properly balanced. Who is the one for you on the short list of candidates . Chris the best for whom . Im going to say best for the and it for the country, does make sense you want a smooth transition. If it is not yellen, my pick would be powell. I know him, he is incredibly smart and a terrific listener, which i think in a Central Bank Leader is essential. And he does not jump to conclusions. He will think things through. He has been working with the fed staff for years. Towould be the closest thing having the same leadership in place, which from a market perspective can be really important. In the past the chairman had to fight to get the respect of traders . Kathleen continuity is important. You are going to stick around. Were taking a look at the peoples bank of china governor, he also spoke at the group of 30. He admitted that chinese debt is a problem. Stay with us. Our economist is staying with us as well. We will talk china next. This is bloomberg. Haidi the peoples bank of china governor has offered praise about china and a warning, he spoke to an audience in washington over the weekend that corporate debt is a concern but he is encouraged about the transformation of the economy. We have a chart you need to know. All, 3761. Of all of the green is chinas gdp numbers over the past several years. We can see where 6. 9 for the second quarter. The governor said looking ahead, he thinks for the second half of the year we will stay 6. 9 steady. Some analysts say that could be a little bit lower, around 6. 8 for the third quarter, the number does drop on october 18. Income, look at the white line. This is the money supply as percentage of gdp, up to 14 . Into my nextp function, this is 347. While that number as a percentage of gdp is one of its highest, looking at the aligned, 9. 2 is the monthly money supply year on year by month change. Hit is a low of 9. 2 , it 8. 9 , a record low in august. In the meantime, this chart is more about credit growth. You can see over the past few months, we have been rising. The white line is aggregate financing for china up 11 . If we trace it back to march, we see that is lost when he was at that pace of growth. Loans,e line is the yen both of those are higher than estimated. For the aggregate financing, it was 60 higher than estimated. For new loans, about 6 higher. Chart, 4956. D looking at retail, factory and investment growth. The white line is chinese retail. Rowing at 10. 1 the Industry Growth is growing at about 6 . Mind you, both of these numbers, the white and blue lines, this is the slowest growth in 2017, and the yellow line, that is the slowest growth since 1999. On october 18, we are looking at these numbers dropping and small optics from retail and small optics from retail and manufacturing. Much,en thank you so looking at terrific charts. Spokeinese governor earlier today, he was not defensive or try to run from the idea that chinese debt is too high. Here is what he said at the group of 30 meeting. Thehe major problem is corporate assets are two holly too high. Ratio is still reasonable. Kathleen lets get more with chris. I think this is important, there is one thing, even a trader who knows very little about china, they are focused on chinese debt. The fed governor warned about it in his speech last week. Theimportant is it that chinese governor is saying it is something we are tackling, we know we need to bring the debt and leverage down . Chris very important. China is taking a break from this this year. This was a decision made by the government late last year. There were going to reaccelerate gdp, do what they had to do so they could go into this Party Congress this week, which is where the new leadership will emerge from. They wanted things to be strong and they got that. They did it with another flurry of debt creation in the first half of the year. I think the metric that worries me the most is the ratio of debt to produced gdp. You just saw the charts, the debt numbers going up, the Growth Numbers coming down. They are borrowing four dollars every50 4. 50 for dollar of gdp growth. They are borrowing to pay off costs and against interest. Corporate debthe problem is not as bad as the headline numbers suggest but it is still pretty bad. On top of that, there is Household Debt that was never there before. China, we all know it is a nation of savers, the savings rate is zero. The Younger Generation is borrowing an enormous amount to invest in property. Loans at rates approaching. 0 to make down payments air taking car loans to make down payments. This is something the government only recently became aware of. I think it is heartening they are suggesting they will lean on this again once the Party Congress is done. The partyknow that congress has been about stability. Almost like we should not be bothering to look at data points because we know it will paint the same kind of picture. After we get the consolidation of power presumably, what should they do . There is a suggestion there should be more appetite for a managed slowdown it comes to the gdp number. Chris i think the response is purity youe dual probably see further tightening of regulation, particularly and at housing and alternate lending vehicles outside of the banking system, which are being used to cover down payments. That will be part of it. I suspect what the government will do with the corporate sector is again try and streamline industries where there are, you know, zombie corporations and inefficiencies. Heel the sort of achilles of a centrally managed economy that very often you get these government owned firms that are no longer efficient but difficult to shut down. From a global systemic point of view, should we be worried . Regardless of the reforms you get come at the end of the day you have the centralized government and they can give debt or pass it from one hand to another. I dont mean to be cynical but realistic. Chris i think that is spot on. If they handle it right, i suspect they will, hopefully what we get is a modest slowdown in growth but not so slow that it crushes the commodities sector the way it did when china slowdown too hard the last time they tried to reform debt in 2015. Haidi thank you so much for that. Joining us, talking about Central Banks and chinas big week. You can get around up of the stories you need to know to get your day and week going. Bloombergs of scrubbers can go to their terminals, is also available on the bloomberg app. You can tweak your settings to just get the news and information you care about. You can get a wrap up on the weekends debate about inflation optimism from janet yellen, mario draghi, and we have plenty more to come. This is bloomberg. A quick check of the business flash headlines. The number of customers potentially affected by the expanding quality scandal has more than doubled to about 500. The company says nine subsidiaries, some outside of japan, failed to carry out controls. The company says more than 500 clients could have received substandard materials. A full investigation has been promised into the scandal in two weeks. Completed therly investigation at the aluminum section but we are still checking the still, electric and machinery departments and we aim to please those in the month. Our priority is to determine the cause and ensure the safety of our product as soon as possible. Im responsible so im not resigning. Haidi the Chicago Stock Exchange said it would run from a bidding group. The scc has been on hold despite approval initially in august. Saudi arabia said to be weighing aramco. Y on the overseas action could be pushed up to 2019. Aramco said all options remain under review and reports of a local offer contained combined with a Chinese Investor are entirely speculative. Up next, tension rising on the Korean Peninsula as the south begins new wargames and braces for a Missile Launch from the north. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. It is 9 30 a. M. In sydney, the markets open in 30 minutes time. We are looking at upside, 2 10 of 1 here in sydney. Turning out to be a Beautiful Day in sydney. Kathleen a little bit more overcast here, a nice period between end of summer and beginning of the fall. You are watching daybreak australia. Lets get the first word news. Paul opec says it expects demand for oil to grow at a healthy pace over the next five years as renewables show the fastest expansion of any type of energy. The secretarygeneral gave a preview of the cartels global outlook, forecasting demand will climb an average 1. 2 Million Barrels a day until. 22 before sliding back. The World Oil Outlook will be released on november 7. Recent manufacturing data is showing growth is returning to its normal course following a cash ban. He told an audience in washington he is reassured by the World Economic outlook the next two years. He told the most important he said the most import a priority for Indian Government is to find jobs for the young people entering the workforce. Talks this week, after a Christian Democrat Union was beaten in a state election. Vote,leaving the national its all its worst result since 1959, losing control to social democrats. Conversely, the federal election spds worstas the performance since world war ii. Secretary carlos to make reform bloomberg the tax bill should be done by years end for the philippines. They are under pressure to maintain growth despite a weakening peso. The philippines is also looking to sell that in china. Thee are waiting for authorities in china, and we should be ready to launch, depending on market condition, sometime between november and december. Paul australias competition watchdog says electricity pricing increase in the last 10 years is putting Australian Businesses and consumers under unacceptable pressure. It says the main cause of higher hills is a significant increase in network costs, and smaller retailers struggle to compete with larger players. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im paul allen, this is bloomberg. Thank you. Rex tillerson says the u. S. Wants to continue diplomatic talks with north korea until the first bomb drops. There is an expected Missile Launch from the north in response to u. S. Wargames in the south. Ross, great to see you. I saw you in washington before i left for new york. You have been watching this. There is a lot going on in this aher sphere, not so much focus. What did Rex Tillerson mean, what is he trying to say . Ros i think he may have been of phraseuse a turn appeared bill clinton once said he would stick with the American People until the last dog died. Perhaps what Rex Tillerson was trying to say is that President Trump has urged him to keep on with diplomatic efforts in north korea until the bitter end. Said until the first bomb drops, it is unclear if he means u. S. Or north koreas bomb, or just a turn of phrase. Its certainly something we dont want to hear about, bombs dropping. There has been so much rhetoric between the two sides recently come between President Trump and his north korean counterparts. With the u. S. And south korea about to do joint military exercises over korea this week, u. S. Bombers and other u. S. Shows of power, people want to see there is not any kind of misunderstanding here at perhaps related misunderstanding. Perhaps related to that, we have not heard from President Trump on north korea on twitter this weekend. Haidi so much rhetoric on both sides. Is this likely to be seen by the north is another provocation . Over the past few weeks, things have quieted down on that front. Have much changed in terms of the administrations actual policy . Ros i dont think much has changed. In an ideal world, military exercises would not be seen as a fresh and new provocation because the two countries have held these exercises many times in the past. Edgething is on a knifes these days, so it is possible and others could see there was harsh rhetoric coming out of north korea this weekend. ,ne thing we can only guess at secretary of state tillerson a couple of weeks ago said he has diplomatic channels open to north korea, he has been making good on that, and regardless of what President Trump has said on twitter, those talks are hopefully continuing. Kathleen i have to correct myself a little bit, talking more on the markets, some analysts are saying markets may not be pricing and risk and ignoring things. Get into this a little more few can on the joint military drill. In the past, it has provoked north korea into more missile tests. How do you, i want to say, analyze this or assess how it is being done . What is the strategy . Think it is a typical show of strength by the u. S. Military to remind north korea that should they try anything, the u. S. Is going to back south extremely robust military equipment at its disposal. Mcmaster, trumps advisor, heurity was on television this morning and said the plan is not to attack north korea that address the north korean threat, they are constantly being revised by the u. S. Military. Anything from the past has probably been superseded. I dont know the exercises themselves are anything totally new, but as i said earlier, there is a chance of a misunderstanding. That is what i would probably say. Haidi a misstep, if you will. Watching north korea, last week , we hadlooking at iran the decertification announcement. What happens from here . President trump and congress will work closely together. We have heard that from nikki haley, the yuan ambassador to the the un ambassador to united nations, and from lindsey graham, theyre going to try to work with congress to get language together. Told congress on friday to come up with a plan to monitor snapbacksort of sanctions that could going to place quickly if iran is seen as stepping outside the bounds of the nuclear deal, although the from thenot withdrawn deal. Secretary tillerson and others were on television today basically saying that compliance with the deal is not enough, which is curious. They say that iran does so many other things they believe , if not theterms nuclear agreement, agreements with the united nations, including meddling with other countries. They want not just compliance, but super compliance from iran. If that is not forthcoming, you could definitely see even more u. S. Action stemming from congress and going through the white house. Haidi thank you so much for that. Our editor from washington. Andsy week with markets geopolitics. Must look at how markets are trading as asia wakes up to a new week. In new zealand, downs downside extended. These talks to form a new government in new zealand is ongoing after the inconclusive election. Australia looking more bright. Some upside when sidney starts trading, about one quarter of 1 . The aussie dollar up. The australian treasurer is saying he thinks the aussie dollar is at value, but we are seeing upside risks for the aussie this week, and weve got china gdp and other indicators coming out, and the start of the Party Congress, maybe getting more clarity out of china, which plays into the forecast for australia. We are all watching that. Ishave adam with this, it tough to be a bear these days. Adam one of the interesting things going on at the moment is the breadth of equity market strength across the world. It is the first time in the bull market we have seen, we track about 95 major indexes in different part of the world, and 85 of them are up, which in the context of the bull market is fairly extraordinary. I think the key thing that often gets overlooked we talk about loose Monetary Policy is the fact that one key reason why stocks are still strong is earnings. And the delivery of project. Lets dive into the bloomberg, 9605. With this chart shows you is that typically in previous years, we have started out the year with a strong expectation was earnings, and as the year has gone by, the earnings have been revised down as people got worried about various front factors. This year, we have seen earnings numbers being revised up as weve gone through the year. This has helped prepare the rally in Global Equities further this year. It is interesting that on the back of the Inflation Report on friday, it is very much still the same situation of the goldilocks environment where growth is reasonably steady but there is not enough price pressure from inflation to get anyone particularly worried and people are still looking to rio dish reallocating. This could run through year end, especially with allocations, people with the fear of missing out, it continues to be an issue for investors. Kathleen if you look at the u. S. Market, you know that when you take out the the market is not nearly so overvalued. It only comes to tech, investors are getting increasingly skeptical. Why . Adam i think this shows you the extent of how people are worried. A great chart here, 9606. This is the q2 etf. The yellow line shows you people betting on the kleins on these of these on declines type of stocks. People are using this as a way to bet on downsides. Well have a look at the data over the next week or so to see how that develops. It is quite an interesting move on that etf, very liquid. Kathleen thank you so much. Adam is our local markets editor. Up next, right on the money. Australias treasurer tells us what he thinks the aussie dollar has found its level, the right one, despite strength on the vital export sector. This is bloomberg. Australias treasurer says he is happy where the aussie dollar and Interest Rates are right now. When i caught up with scott morris on friday, he told me or market slack means the they can be slow and patient with raising rates. We are forecasting to go back up two and three quarters for this year. The year to three after. What we have seen in our employment numbers and what we have seen in rising Business Confidence and is this to continue on that view, there have been some weather events tragically, cyclones and that sort of thing that can disrupt production and impacted last years growth figures, but going for, we are looking ahead. Kathleen what is your forecast . 3 next year. The weeksou had back to back retail sales since 2010, are you getting nervous . Wage growth has been flat in austria for some years. Aats part of coming off of mining in investment boom. At consumerk purchasing power and the exchange rate, where it went in the boom, it has tailed off. Where expecting the next three or four years to turn to a normal transmission, if you like. Weight is in line with activity growth. Wages in line with activity growth. Infrastructure, all that is contributed to optimistic investment. Kathleen wages is a sticky problem for many countries around the world, from the u. S. To japan. Tight labor markets, wages not going up much. Why should this be different in australia . Isour level of unemployment at 5. 6 , a higher level than you have seen in the United States, which is well below the natural rate. The full employment rate, about 5 . There are some slack in the labor market, it is coming down. We had the strongest sixmonth growth in fulltime employment in 40 years. Good growth in the labor market, running at 2 growth per year, 10 times what it was when we first came to government for years ago. That is strong. The other point is this, the point i was making about coming biggerthe boom, the economic event was not so much the Global Financial crisis thats sideswiped the northern hemisphere, it has been coming off of that strong mining and Investment Commodities prices. This, a story has grown consecutively for 26 years, the longest run of Economic Growth, recorded Economic Growth of any advanced nation in the world. We have a good growth story and the fundamentals remain in place. Criticisms,e of the or least observations about the australian economy is it is still very reliant on economies. What are you doing about . I talked about public investment. Public investment in our june quarter is up 9 , 75 billion announcement in a recent budget for info structure projects, airports, railways, the largest pump Hydro Storage project going on as we speak. There is a lot of a look in the structure. Of tax our First Tranche plan through, which is cutting corporate taxes. Forces,our defense doing wonders for the defense supply chain. The service industry, also, tourism, education, human services, health care, that is is. E the growth is good it is getting into the export markets, strong unlike china and japan and south korea. Kathleen haidi that was australian treasurer Scott Morrison. More ahead. This is bloomberg. Coffee may need a pick me up, that is a topic for my midmorning. One of the biggest operators in italy says the market is starting to slow. ,oining us is there chairman joining us from new york. Great to have you on the program. Australians are coffee lovers. They wake up and get their morning coffee. There is a sense that we are seeing something of a downturn when it comes to the coffee industry, we are looking at a fourth year of deficit in the 20162017 year. Are companies able to cope with things like Climate Change . Say, coffee became a very dynamic market. There are a few big, structural changes, the consolidation you mentioned. Most of the Larger Companies starting m a strategies to consolidate the industry. This is one side, which is also impacting consumption. On the other side, you have the extreme opposed with this third icrosis my closest m in different cities, offering more options to the consumer. You also have the impact of Climate Change. It is impacting first quality and then productivity. Ae trend is toward significant problem that needs to be addressed. Kathleen year company was started in 1933. You took over as ceo in 1995. I can remember when i first started drinking really good coffee in san francisco, and then i move back to seattle. In thereally got United States, it got us where we wanted that are tasting coffee. What has that meant . Are more people willing to pay out for good coffee . Is there are problem because there is so much competition . All of this movement decommoditized the industry. Premium coffee segment, which is more or less 10 of the market, there a good. Consumers are having better experiences. A higher pyramid this created a market that was not existing before. We have entire needing pioneering the higherquality internationally, but he was hard as a single brand to command premium prices for such a difference in quality. Now there is a market and it is easier to work. Kathleen what you think of pods and premade coffee . This is also contributing to the positive for coffee. You can enjoy highquality cup of coffee at home, freshly brewed in a convenient and consistent way, was not possible before. It is making the Coffee Market trade up, including consumption. Consumption dramatically increased thinks to this movement. Now you have 1. 5 Million People consuming coffee all over the world, it used to be 600. Will you have said you remain family owned. Increasinge an challenge as we are seeing this wave of consolidation . And hope not. Were working to be unique. Theot be influenced by hyper competition in the main market, which is the modern trade. We do a lot of hospitality. We are the most global coffee brand in the world. We have Strong Partnership with our customers. We also do business to consumers directly. This helps us, being a little bit outside the competition. What is your main focus in terms of segmenting, as kathleen said, we saw the pod thing, clearly that has been transformative. Also jim geography. You looking at these emerging markets being the next opportunity . You need to lead something. Volumes of profits or quality. Our job is to lead quality since the company was born. Bestecialize in our single unique blend, the only one we have, all over the world. , tored in as many formats serve any consumption of occasion. In a restaurant, cafe, home, office or even traveling, airlines and trains and so on. It is a global brand, the most global brand in the world, over 140 countries. , thato biggest markets are most interesting, the United States is the biggest and china is growing fastest. Haidi im going to leave you now. Illy chairman joining us. Im going to get my coffee. Who knew that phones would start doing everything . Entertaining us, getting us back on track, and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. 7 00 a. M. In hong kong. Welcomes the daybreak asia. Central bankers signal tightening is coming has janet yellen says inflation will accelerate. The governor has praise and a china issaying changing, but corporate debt is a worry. I am Kathleen Hays in new york. Upbeat aboutn australia, good times on the way. Oil on the rise amid tension in iraq. Kurdish Officials Say back is sending in the army