Interest rate at 5. 5 . Of course, dave, it is widely expected all 20 economists we surveyed expected as much. But the question is really whether or not governor adrian orr will sound hawkish, given that inflation is still far from where he wants it to be, which is one, two, 3 right now. We had headline inflation in the Second Quarter at about 6 . So rbnz staying pat for a second time in a row at 5. 5 . Remember, this is the central bank that has done 525 basis point hike. It has been pretty aggressive ahead of the curve, way ahead of the fed. And now it is keeping its rate standing pat at 5. 5 for a second time in a row. Dave. Yep. Yeah. So were looking at, to your point there where there is some commentary on inflation and how restrictive rates are and theyre saying already restrictive and that should be enough to return inflation to target. Were just going through some of the phrasing here on the statement because that i guess in some ways, short of hearing from the governor himself
This is bloomberg daybreak europe. I am lizzy burden in london. Wrestling bears, china delivers its strongest ever push back against a weaker currency, seeking to repair confidence as Developers Warn of mounting losses. Bank of america says investors should strap in the return of the 5 world as bond yields surge on bets at rates will stay higher. Plus, shot in the arm. Things get a boost as no fewer than 28 of them have said to be lined up for the arm ipo likely to be this years biggest. The morning. Happy friday. You have made its. What a week it has been for august. We have treasury yields broadly study but the 10 year was near the highest since 2007. The 10 year touching the highest 2011 and tech stocks especially feeling the weight of rising real yield. U. S. Futures flat after the close that stocks are headed for the worst read a streak since march just as yields ease off the highs. In beijing shares heading for a six daily decline. Bear fatigue setting in on the china story now.
Good morning. This is bloomberg daybreak europe. Im lizzie burden in london. And these are the stories that set your agenda. Surprise cut. Chinas central bank unexpectedly cuts its key lending rate by the most since 2020, as Industrial Production, retail sales and fixed assets data all miss estimates. Asia markets are mixed. Donald trump is indicted in atlanta over alleged efforts to undo his 2020 election defeat in georgia, adding a fourth criminal case against the former president. Plus, what Warren Buffett is buying and selling. Well bring you the latest 13 f filings as hedge funds look to gain from the hype over artificial intelligence. Well, good morning. Welcome to tuesday. And it might be august, but its a busy one. Youve got traders betting that the fed is going to keep rates higher for longer. So treasury yields have been steadying in early trading in asia. But you did see the ten year yield climb to its highest since november yesterday. The two year yield, which of course is
Friday following the jobs reports and the apple drag in the amazon drag. Asia though, we are coming off a little bit, if youre looking for us in aligning. 167 on the benchmark right now. A little bit of a pickup following the china open. Indonesia coming online. Hang seng is flat. Oil is very much in focus today. We are coming off a little bit of highs earlier on. We are getting some upside as far as the shanghai contract is concerned. You are getting a followthrough move in wheat prices in the early goings this monday. 2. 5 , 650 a bushel on wheat. Conversations around no recession, soft landing, no landing. Yvonne yeah, you have u. S. Funding needs versus what the demand for bonds overall being weighed on the back of what we saw last week. One of the worst weeks when it comes to global bonds as well as stocks. For some time now, its the start of something. Certainly want to watch. Especially when you are starting to see china not really emerge from this postcovid recovery in the way
Chinas exports fall for a Third Straight month because of slower Global Demand while imports plunge in a new blow to the nations economic recovery. Moodys lowers Credit Ratings for 10 regional u. S. Banks and says it may downgrade major lenders. Plus, the bears are not hitting up yet. Marko kolanovic is still avoiding stocks while mike wilson says it is to risk too risky to look past a downturn. It is not sending people into 30 year yield. The selloff has continued. Video 30 year yield climbed seven basis points. Germany saw the same thing happen. We are avoiding duration but will we come back into it . Goldman sachs says it is overdone and based off information that we already know. It is based off of Credit Ratings. We knew the deficit situation in the u. S. And we knew the auction would be bigger than the u. S. And will come this week. The 30 year option happens on thursday but even so, yields are moving higher. The bond selloff is easy a little this morning. Even so, the yield curv