Overnight we had the big spike in treasuries. Certainly putting Dollar Strength into the story and putting pressure on a lot of asian currencies. The japanese yen is a true standout. We had seen the weak in helping some of japans exporters of late. Today though, that story is not translating. Youre seeing them move in the wall street session, weakness in the s p 500, closing down 1 . The nasdaq dropping, in turn, you see that reflected so far in the session. We also have to open for korean equities. We can see in the open here, a drop at the open. Its not just a story of you the u. S. Inflation print that came in hotter than expected. We also saw south koreas president suffered a big loss in the parliamentary vote and that is playing into the dynamic given the opposition gained slots. The president is looking to be in a weaker position for the last three years of his term. We just had some trade data. The first 10 days of april. We saw exports rising more than 20 22 percent, actually, on the year. Imports gaining five point 8 . Certainly the strand in the export story is a positive sentiment for the sector given that career is very much seen as a leading indicator. Also, the big move you are seeing for the korean won, weakening more than 1 against the greenback. You do typically see bigger moves at this point in time. Also note, the japanese 10year yield. We have at about five point 8 , the hottest since november. It is that big repricing we are seeing coming through, haidi. Haidi the repricing story is really what we see from the fed for the rest of the year, belle, its what is running through the rest of these asian markets. Australian stocks, we are down on the asx 200 just about zero point 1 . We had a decent day in the previous session, extending that win streak. Australian equities are pretty close to that record high as well. Core related moves when it comes to australian, new zealand bonds , hit by that u. S. Inflation print. We saw them falling from the open. Just tracking the declines in treasuries. We have also seen the aussie dollar and kiwi dollar holding the bulk of that plunge after the greenback saw its best rise in the year. Again, being fueled by the feds repricing narrative. Brent crude is still over 90 a barrel. It could be feeding through to the uncertainty of that stickiness in inflation. U. S. Intelligence seeing a possible iranian strike or iranian proxy strike on israel, according to the latest intelligence. These concerns have escalated hostilities in the middle east, helping to support crude. Take a look at where we are when it comes to u. S. Treasuries after the big reaction that we saw a fresh round after a third consecutive month of hotterthanexpected inflation sending yields dr. 2024 hides again. Lets kelvin tay for analysis, he is cio at ubs wealth management. What do you expect the fed to do this year . Kelvin we have not changed our estimate for the fed to cut three times since june, but after last night data, we have to review it. Core inflation has turned out to be more stickier than thought. But what is giving us more comfort is that headline inflation was moving up sharply. That is largely based on the fact that Energy Prices have moved up in the last three months of last year. Nevertheless, coal has been strong and we need coal inflation to moderate further before we can be certain that the fed will cut in june. Haidi how does that inform your position in treasuries . Where do you think yields are going to go this year . Kelvin we have a long position on the u. S. Bond market. We preferred bonds over equities last year because we think the Federal Reserve will cut in june. But that has come under a lot of scrutiny because of the fact that if treasuries continue to move up that way, obviously, it will put pressure not just on the bond market, but also on the equity market as well. We dont think u. S. Treasuries will move a lot higher, from here we think they are likely to stabilize at current levels before heading towards the 4 level when the Federal Reserve and berks in its first cut of the year. Annabelle how does that thinking can your strategy for the asian trading space as well . Kelvin what we noticed recently is that asian credits, even with investmentgrade issuance in the u. S. Yields have not moved very much despite the fact that the u. S. Treasuries an attorney or bases have moved towards the 4. 5 percent level. The spread wide and is not because of investment or, asian credit moving it is because of treasury yields moving. So the market is actually thinking that perhaps the fed will have to cut. They are taking into consideration that we shouldnt be too lax with where our positioning is concerned. With a tremendous amount of issues with regards to the new issuance of treasuries by the u. S. Government, it could put upward pressure on u. S. Treasury yields on its own. But if the market is still expecting two or three woodcuts this year, there is a certain level of stability with regards to asian credit or investmentgrade credit issuance. Annabelle i am curious. Because in this sort of market environment may be some shortterm volatility shortterm market risks, but still we have got really elevated levels in commodities oil, bitcoin, some equity benchmarks, as well that are at multiyear highs or around that point. How do you treat in this sort of environment . Kelvin it is a very tough environment to trade in because of the fact that, you have your bond use increasingly moving. The trajectory of bond use and equity markets have been different this year compared to the last two years. Whenever treasury yields go up, the bonds fall. This year the trajectory has been different. If the Earnings Results in the next couple of weeks, and weaker than expected, that will put a lot more pressure on the equities market at this point in time. Its interesting to note that in the month of april, Energy Stocks actually outperformed tech stocks where the s p 500 is concerned. And we see Energy Stocks continue to do well given the fact that Energy Prices have been quite steady at an elevated level. We dont see that coming off dramatically, in fact we think brent will likely remain where it is that puts pressure on the bank of japan because if you have high Energy Prices, it means the ministry of finance will probably have to intervene in the market at some point. We are all looking at the young right now, it is very close, 153 to the u. S. Dollar. The yen. Haidi how are you playing china at the moment . Kelvin we are neutral china. We think where valuations are concerned obviously, it is very attractive and cheap. But we do see a turnaround in the basic part of the economy, for example, industrial production, in exports of industrial automation. That is about 20 of the gdp. But basically 50 of. The growth if that stabilizes and continues to trend upwards, then i think sentiment towards investing in china could change. But we have a very, very big event towards the u. S. Elections, and the saberrattling will come up in the next several months. That, in turn, will dampen Investor Sentiment towards investing more. In china in the last couple of months we have actually seen International Investors increasingly reducing their underweights on china and will be closer to a neutral position on china at the moment. Annabelle that was kelvin tay, regional cio at ubs Global Wealth management we are looking at some of the movers so far with just under 10 minutes into the session. Tokyo and also seoul trading. You have the u. S. Scope the white house posting a state dinner for japans Prime Minister kishida. Live pictures there from washington as that event continues. Some of the names we are tracking off the back of this visit from japans leader is tech names in particular. We had actually seen an announcement that amazon and nvidia are going to be funding a new joint ai research project. At that focused on the emerging technology from both the countries. They will be providing nvidia, amazon, arm, microsoft along with a group of other Japanese Companies 110 Million Dollars for ai Research Partnerships between two universities in the u. S. And japan. A tourist taking place, even though we do see chip stocks so far, under pressure. Another thing in the spotlight in this visit, nippon steels takeover bid for u. S. Steel, that as japanese Prime Minister kishida is having a state dinner at the white house. Live pictures right now. This is bloomberg. Haidi alright, as we hear that the u. S. Department of justice has launched an antitrust investigation into the nippon steel takeover, nippon steel is down by 0. 75 of the moment. We continue to monitor what was clearly a key issue that has been hanging over this visit by japanese Prime MinisterFumio Kishida at washington. We are seeing him in the formal state dinner. Tokyo bureau chief isabel reynolds, and are dear chief, and Stephen Engle also joining us from hong kong. This is obviously an issue that i dont know if it is the elephant in the room and if it has been properly addressed throughout this entire trip. Clearly it has been kind of an overhang. How does this impact the visit . The japanese stance has always been that they want to be treated fairly, its a commercial deal and they want things to go ahead according to the normal rules of commerce. But to have this news come out at this moment while Fumio Kishida is on his official visit to the u. S. , just turning his state dinner with biden, and they are trying to show that tides are stronger than ever before and there is no daylight between them, to have this new piece of negative needs at this point doesnt look good in that respect. Annabelle there has been some positives, from the meeting, a lot of different agreements and asked so far, particularly with regard to emerging technology, it seems. Isabel yes, we have seen deals on ai research. We are also seeing a deal upon offshore wind, which could be very positive for japan which has sort of glad Renewable Energy pledges partly because of its inability to use its nuclear plants, to a large extent. The overarching theme really has been concerns about china. They issued a strong statement with language about china and its actions in the East China Sea and the South China Sea calling them dangerous and escalatory and they are set up for the trilateral summit with the philippines later on. In that respect they have also stepped up defense cooperation and see the military is working closely together. So that has been for the top take away from the summit so far. Haidi and biden and cane sugar are headed to this trilateral meeting with the philippines president next. What are the expectations from this . Manolo i think tensions with china are expected to be the center of the summit alert readers will discuss ways to incorporate more on Maritime Security group given the tensions growing in the South China Sea. President marcos before he flew out of manila yesterday said he expects there will be an agreement between the three leaders in terms of boosting cooperation, Maritime Security, and keeping the freedom of navigation in the South China Sea. He says it is because there have been frequent clashes between the philippines and chinese ships in disputed waters, including a instances of chinese ships using water cannon on philippine boats. Annabelle so is this something that will be shifting the philippines assertiveness in the South China Sea . Especially off the backup we are hearing that president is leaning towards an agreement of his predecessor obsessed with china . Manolo it strengthens philippine to boost its relationships with other countries including longtime ally u. S. , in terms of its posture in the South China Sea. I think president marcos, yesterday, that he was horrified to learn about the agreement between the previous government and china in terms of the philippines supposedly not being restricted to send Construction Materials to the outpost. It speaks to his continuing assertion that the philippines and 70 should be recognized in terms of its territorial claims in disputed waters philippines sovereignty should be recognized. Haidi do we expect any other areas of cooperation by the three nations, obviously Maritime Security is the major one, but what else can we expect to be spoken about . Manolo i think there should be also discussions in the areas of cooperation on critical infrastructure, critical minerals, semiconductors, and Renewable Energy. I think president marcos is also expected to have a bilateral summit bilateral meeting with biden on the fringes of the summit. Annabelle and steve, off the back of that, and sort of unrelated, but we have had china as president xi jinpingss meeting taiwan former leader. It is a pretty interesting development. Stephen this is more weighted on the symbolic site rather than the ushering of change across the taiwan strait. It is an effort by beijing to embrace a former taiwanese leader who kind of shares the vision of latching onto the common culture, the common identity of peter chinese nation. That is what he has really advocated for since he left office in 2016. But keep in mind, the former ruling party, now the opposition, he is the last president who was elected from that party, and they have left three consecutive president ial elections. He has been the power broker within the kmt, but he failed to get the two opposition candidates in the last election in january to join forces, that could have potentially beaten the tpp candidate who will then be president in may, lai chingte. The opposition candidates got 60 of the vote. Latching to got 40. If they had combined their efforts, they potentially could have won that election. So i think xi jinping in beijing is seeing an opportunity that people in taiwan dont want war, they dont want conflict. We are still leaning towards the dpp, that there is cracked, and opening for soft power to work and thats what i think xi jinping is trying to leverage. Haidi as much as appealing to the taiwanese people, it is also an outward projection given the timing of this meeting, given as we see the u. S. And japan meeting at the moment . Stephen absolutely. , again, xi jinping and his comments at the great hall of the people, as he shook hands with the former president , essentially said, external interference cannot stop the historical trend of national reunification. External interference, in not so veiled job at the United States against the backdrop of increasing tension, if you will, over the whole taiwan issue. In the past year or two years since nancy pelosi visited a here and a half ago, there have been ramped up efforts by beijing either militarily, economically as well as diplomatically to further isolate taiwan because of the rising bifurcation, if you want to call it, between east and west chinau. S. Relations over that timeframe. So, xi jinping has been able, since the taiwanese president left office in 2016, he has been able to port and nations that previously court 10 nations that previously recognized taiwan to beijing, further isolating taiwan diplomatically. The economic efforts that have been ongoing, and then militarily. So far, since the election of lai chingte in january, there havent been any wargames in the taiwan strait. He is using soft power to kind of get a pulse check on what the people of taiwan really want after that election. Annabelle that was over tokyo bureau chief isabel reynolds, manella bureau chief manolo serapia and, of course, cover chief north asia correspondent Stephen Engle. You can get a roundup of the stories you need to know to get your day going on this addition of daybreak. You can get it on the bloomberg terminal and it is also available on the bloomberg anywhere app. You can customize your app so you only get stories on the industries and assets that you care about. This is bloomberg. Wealthchanging question are you keeping as much of your investment gains as possible . High taxes can erode returns quickly, so you need a taxoptimized portfolio. At creative planning, our Money Managers and specialists Work Together to make sure your portfolio and wealth are managed in a taxefficient manner. Its what you keep that really matters. Why not give your wealth a second look . Book your free meeting today at creativeplanning. Com. Creative planning a richer way to wealth. Annabelle the heart u. S. Inflation data is refusing to cool as concerns grow that the fed will likely delay of rate cuts. In an exclusive interview with bloomberg,. Dells head of Economic Research says that central bank is still waiting for the fx policy to play out in markets. I dont think so. We have a strategy of higherforlonger. Or i for very long. One of those. We are in that process. Lets remember, i was last july. Soon it will be able to stay. Its a question of waiting for the fed hikes to appropriate to the economy. How do you think of those lag effects and how do you see them playing out . It had an impact on the housing market, housing activity came down. It had an impact on durable goods consumption. It hasnt had an impact on fiscal policy and investment, and that has been a surprise, because fiscal policy has been upsetting the tightening effect from the monetary. This is a new world where there are a lot of policies happening at the same time. We are just experiencing that. You wrote in a Financial Times opinion piece on may 2 that there is still a narrow path to a soft economic landing. Do you still believe that . It was a year ago after the svb crisis, and yes, i subscribe to that. We were one of the few places that didnt call the recession last year because we were seeing a lot of resilience in the u. S. Economy. Consumers had very sound balance sheets. Companies have done good management. Banks are wellh. A lot of the elements that could have driven to recession werent there and i think you are seeing that. How do you feel about the direction of inflation. If you look at the data we are seeing, do you believe there is a path downward or does it stay higher for longer, may be higher forever . We had two big sharks in the series, one was the reopening that was really abrupt and that led to the bottlenecks. Then we had the commodities spike. That generated a ripple effect, think of a tsunami. What we are seeing now is the aftermath of that. Goods inflation went out, it has come down. Services inflation is next, it is coming down slowly because services inflation, by nature, is stickier. Then you had Wage Inflation which surprisingly hasnt been as strong as some people expected now you have real wages catching up and that will extend a little bit the persistent of Course Services inflation. I think it is happening according to plan. It was never going to be a steady path. We are seeing bumps and bumps are part of the game. Annabelle that was s inflation is just becoming a very stubborn situation for the fed. It is too much for the fed. Its not doing what they wanted it on average and that is a problem with them. The door slammed on the june kurt. The fed in your opinion is not going to be making any moves anytime soon. They are more likely to hold status quo pretty good reason for them to remain on hold and see how things go. A rate cut june seems to me, would be a dangerous and egregious error. At the moment they are probably set up for september, december, two rate cuts this year. They are creating a problem for themselves in terms of the promises of rate cuts, the inability to actually execute on them. Annabelle some of our guests reacting to the latest heart inflation data from the u. S. And relieve the Market Reaction to that is very clear in what we are seeing so far in treating. You have japan, korea and australia 30 minutes in trade. The big action in the bond space the japan 10year yield rising 0. 8 for the first time in several months. Also a big jump in quantitative easing yields, korean won and australia at the front end of the curve. Traders rethinking whether we will see any red rate cuts, as we just heard there from jp morgan. The door is shut for the rate cut in june. That has led to strength of the dollar. The reaction in fx so far is very clear this morning. You have the korean won under pressure. Japanese yen a bit firmer but still trading close to the 140 mark. We have heard from Chinese Government officials japanese government officials saying they are ready to react when any moves in the currency. You have the move under pressure. Pretty much every sector. The imap function, the only one standing out in the green so far, is Energy Stocks. Lets look at some of the movers. The likes of impex. We have seen the risk of a spill over it being heightened in the middle east. Lets change and take a look at what we are expecting, something that could move the dial a little bit for Commodity Markets is what happens what comes out in the inflation data today. Ppi is one to load. We are on track perhaps for an 18th street month of the clients. Cpi, as well, we are expecting it to pull back from the holiday season. Something that has played into the dynamic is the move in iron ore prices in march. Concerns around the property sector, as well really playing into that. That cpi retreat from the holidaydriven rise in february certainly underscoring some of the inflationary pressures that remain a key economic threat. Producer prices, as well, expected to extend their price. Joining us is yao wei, chief economist at societe generale. You are in line with what economists are saying on this one. Yes, we are seeing cpi a back down, and ppi staying very negative. The inflationary environment in china is one of no inflation. This is very opposite from the rest of the world indeed. That is because they do still face the structural challenge of a lack of demand and too much supply. That really hasnt changed much at all. Annabelle we have already heard we have been sort of resistant to see further policy cuts, but is that what is needed at this point in time . Wei well, generally speaking, they are resistant to do any demand driven policy. Look at the message from the npc. They are very much focusing on the manufacturing sector, it would be up the value chain, which is supply. Which is a good thing to do, but it is a demand problem that they have right now. Haidi can you get your thoughts on these accusations of overcapacity we have heard from the likes of the u. S. And the e. U. . What is your view of the situation domestically . And if you look at the factors that give china the advantage, bday there or not, how long can they have the advantage for . Wei well, its basically a National Strategy that they want to move the value chain, which means in terms of the policy, they will channel a lot of support to these sectors. To be very fair, china is not the only one providing support to the green transition at, right, however, given chinas scale, the second biggest economy in the world, running a manufacturing surplus of 10 gdp , this is bound to cause tensions globally. It is something china needs to be aware of. If they double down their strategy, they cant not expect the others to complain. The problem is really more of they should do more pushing up demand. Haidi and to your point, its not just china, we expect an announcement from australia today for its annual inflation reduction act, the Prime Minister signaling a willingness to make economic interventions on the basis of National Interest and national sovereignty. Its a very interesting space to be. I do wonder about, do you think the manufacturing porch, the capacity push will address the deeper structural longerterm issues with the economy . Wei well, in the way, you could say that this will help to effectively growth, yes. But to our mind, the other very important problem that they need to address is, they need to resolve their debt issues, clean up their debt, improve the allocation the efficiency of credit allocation. And they need to do more to support household income, consumption. They are doing much at all. In no way, it is a very partial answer to a longterm issue. There are other parts that they missed too much. Annabelle is there anything that makes you optimistic on the outlook . Wei cyclically speaking, we can see that china growth wise is bottoming out. We arent too worried about them achieving 5 or up close to 5 , that is not the concern here. I guess what we care more about is the progress of the restructuring of developer debt. How they will do about lgf debt. There is a willingness to clean it up, but not enough yet. With regards to the oversupply issue, i think at some point, youre going to see a situation where the experts will hit a wall exports will hit a wall and will force them to adjust their strategy. Haidi Head Research and chief economor aipac at societe generale, thank you. Watching fx, we are seeing a broadbased decline in stocks and the korean won, in line with the political developments, the ruling party suffering a loss in parliamentary elections. It is seen as a blow to the conservatives agenda. Banking stocks and other Companies Seen as big beneficiaries of the corporate value up program declining. Investors concerned that this defeat will slow down reform initiatives for an particular, the Value Proposition which had driven valuations higher and more enthusiasm for Foreign Investors into a entities. A discount in korean starts with tax initiatives and the like. It is now being seen as potentially in jeopardy. Also seeing weakness in the korean won alongside the declines that we see in the kospi. Lets bring in our Korea Economy and government reporter who joins us now from seoul. Help us break down the results from the exit polls, the implication for the president. Clearly, there is concern for investors in terms of what they see as this meaning for the agenda. Its a crushing defeat. It seems clear at this point that the opposition led by the Opposition Party will gain at least 300 seats while the conservative Peoples Party will get somewhere between 102100 10 sets. While this was a parliamentary vote, it was widely viewed as a referendum on president yoon. What these results are telling us is that voters think there is a problem and the president needs to change his approach to it. Annabelle it is hard to isolate on a day like this given the u. S. Inflation print that is also weighing on equities today. But given the most so far, in the session, it does signal some concern about this major election defeat and the impact it will have on some of the other reform initiatives. Soohyang right. The vote took place at a time when inflation is still high in south korea, the economy slowing down. President yoon has been pushing for a number of probusiness policies such as cutting corporate taxes and taking a hard line on labor unions. But without parliamentary backing, it will be difficult for him to press ahead with these policies. That stocks and the won have already been retreating over concerns that the leftleaning opposition will score a major victory at this election over yoons party. The benchmark index fell as far as 1. 6 this morning. Haidi and we are hearing about a potential trilateral summit between china japan and south korea at the end of may the first three gathering in almost five years. How does it change south koreas position on the global stage and the ability to push Forward Foreign policy, the Global Implications here . Soohyang one thing to watch for is north korea. It has been relatively quiet throughout the session this year. But regardless of the results, yoon is likely to maintain his hardline policy on pyongyang. He will have to face increasing concerns from his overseas partners over policy continuity, because the south korean president s serve a single fiveyear term that cannot be extended. Haidi our career economy and government reporter so young choi there,. Coming up next we look at the latest report forecasting growth for emerging asia. This is bloomberg. Hey you, with the small business. Whoa. Youve got all kinds of bright ideas, that your customers need to know about. Constant contact makes it easy. With everything from managing your social posts, and events, to email and sms marketing. Constant contact delivers all the tools you need to help your business grow. Get started today at constantcontact. Com constant contact. Helping the small stand tall. Haidi the Asian Development bank sends much of Asia Development module developing asia outside of china is poised for strong demand. It will grow 4. 9 this year and in 2025, inflation is seen easing slightly down to 3 next year. Joining us now is jon barron from the Asian Development bank and he joins us now. Is there a sense that when we see this goldilocks scenario play out for Major Development economies, that parts of asia in particular are still playing catch up . John i think that is from the domestic demand side, the Growth Outlook is very positive. But that is only one side of the story. At the end of last year, we saw some signs that external demand was bottoming out and as a result of that, we project external demand will continue to perform well in some key sectors, including semiconductors. This will have positive spillovers and the external side for economies in the region as well. Haidi you are not seeing much of a drag for asia which traditionally has been an anchor particularly for emerging markets . John i think there will be external risks related to these outlooks. A lot of the external demand outlook will be dependent upon what happens in other parts of the world, notably, in advanced economies. There will be some slowdown in advanced economies in 2024 as the effects of Monetary Policy tightening from previous years kick in. However, we see that developing asia as a whole will be resilient to weather this storm and gradually improve its external demand going into 2024 and 2025. Haidi when you take a look at the impact of the fed and the global Monetary Policy, how does that play through in asia, particularly as we see a new wave of currency weakness across the region . John of course what happens at the Federal Reserve has clear implications for other emerging markets, particularly in terms of how Interest Rates are expected to evolve over time. We still expect that there will be some easing taking place in the u. S. This year, however, there is a risk that rates will remain higherforlonger. One of the scenarios in the report is however higherforlonger higherforlonger scenario would in fact developing asian economies. This would have some implications via Interest Rate differentials and it could lead to some we inflation due to the Exchange Rate appreciation implications. , on the other hand, it could have implications on the Growth Outlook that would be positive. So i think the overall effects in terms of markets will be small, it is something that needs to be taken account is a risk factor for both the Growth Outlook and the inflation outlook. Annabelle i am curious, just in terms of the risks you are monitoring, what are you watching when it comes to Commodity Prices and the odds that we see elevated when prices into year end . There have been calls for food to hit 100 a barrel. Heightened geopolitical tensions can of course amplify every fight or persist and lead to Economic Uncertainty more broadly. One of the other analytical pieces in the report looks at the impact of escalated geopolitical tensions and implication this would have on inflation in the region, particularly the red sea crisis and how it has affected shipping routes from asia to europe and the implication that this would have for inflation. So there are implications that would be important to consider from the perspective of heightened geopolitical tensions. This could indeed also effect oil prices. Oil prices have been largely stable around the 80 a barrel level excluding the more recent than when they increased to 90 a barrel. But i think that if a shock to geopolitical tensions were to escalate, this could have broader repercussions on oil prices and this could essentially spill over to domestic inflation in the region as well. Annabelle against that backdrop, as well, how close are you watching the moves in india . Can it continue to be a big driver for this region . John is a strong performer religion can over 7 performer in the region, over 7 growth this year and next year. Services exports remain a strong contributor to growth in india and also strong consumption and investment is a key underpinning of growth in india. Indias contribution to growth in the region has continued to increase in the past number of years. I think we can expect this to continue assuming policies would be adopted to address some of the issues around productivity, for example, around maximizing labor force participation, it really maximizing the Demographic Dividend that india has in place. Haidi john, we appreciate your time with us, john beirne, principal economist at add with the latest report the latest on geopolitics. Brent crude prices spiking the u. S. And its allies believe that major strikes by iran or iranian proxies against israel could happen in days. Sources familiar with the intelligence say iran could produce missiles against the military or other targets. President biden says he is watching the israeli Prime Ministers response to what he calls a blunt message on improving civilian conditions in gaza. Speaking at the white house, but it also offered a six ceasefire in exchange for her releasing hostages and for israel to open an additional crossing for aid into gaza. I have been very blunt and straightforward with the Prime Minister as well as the war cabinet as well as the cabinet. The fact of the matter is that bibi and i had a long discussion. He agreed to do several things that are related to, one, getting more food and medicine into gaza, and reducing significantly, the civilian casualties in any action taken in the region. Haidi more ahead on daybreak asia. This is bloomberg. at enterprise mobility, our experts always see another road. Because when theres no limit to how far mobility can go, theres no limit to how far businesses can go. a rate cut in june, it seems to me, would be a dangerous and egregious error comparable to the errors that the fed was making in the summer of 2021 when it just didnt get the threat on inflation. Annabelle that was former treasury secretary Larry Summers there really just reiterating what a lot of people are saying in the market right now. Any expectation we will see a rate cut by the midpoint of the year is perhaps unfounded, you could say. But we have seen a lot of traders pushing back expectations. The repricing we have seen across the treasuries curve overnight, led by the frontend. We saw the 10 year yield percent. Topping four. 5 . This is what were seeing today so far, particularly the big spike so far. The japanese 10year yield, as well about 4. 8 . In japan we have seen a big move in the dollar that has led to further yen weakness. Touching the 153 mark. Today we have seen again, very marginally firm, but that is against the backdrop of the jawboning, through from japanese government officials. Suzuki is the latest one speaking in the last few minutes , the finance minister, saying they are watching these fx moves with a high sense of urgency and they will not be rolling out any options and will take appropriate responses. Certainly echoing what we heard from masato kanda earlier. Haidi and of course are we early had heard from masato kanda, the top currency diplomat. Again, similar messaging here, appropriate measures will be taken in response if these excessive moves continue and it will not without any options against these excessive moves. That is from the finance minister. If you look at the model, the kanda index, really suggesting that volatility at these levels is perhaps insufficient for the finance minister to stepien. Some indication that perhaps other than the jawboning we continue to see, perhaps they will wait it out for a couple more sessions to see what happens after the response from the u. S. Cpi print coming in hotterthanexpected washes out a little bit. Of course, the dollaryen surgeon for the 153 point 24 level. But we are still seeing perhaps historically lower levels of volatility when you look at that model. Look at how u. S. Futures are setting up. After what was a difficult session with that cpi print, futures looking pretty meek, down 0. 1 percent. Also looking ahead to what we see for dollarchina, given the moves in the yuan, they have flown into demand for dollaryen as well. Thats iybreak asia. Do you want to close out . Should i . Normally id hold. But. Taking the gains is smart here, right . Feel more confident with stock ratings from j. P. Morgan analysts in the chase app. When youve got a decision to make. The answer is j. P. Morgan wealth management. 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