Welcome to countdown. Lots of talk about this morning. Lots of centralbank activity, the bank of japan standing down, as the markets react, and the fed down guiding the pace at least of those. Lots of talk about those. Amongst all of that, we continue to focus on the brexit risk, the u. K. Referendum a week from now, a week in an hour until polls open. Let us try to contact relies the market activity we have seen in recent days, as many voices warning on the global stage about the risk of a brexit. President obama, angela merkel, mario draghi, and others. How tense a market as we run up to the vote. I have the stress index, which actually might be of some comfort, depending on how you are position for this. Talking about whether there is any kind of Systemic Risk. Pimco saying there is no Systemic Risk around the brexit question. You see the measure of Financial Stress in the market, at least on a level, as indicated by this web circle, the oval here. Saw atn as high as we the time of all that concern about the rate cut within the eurozone. And not even at levels we saw earlier on this year on concerns about chinese slower growth. Just a bit of context around market stress. The risk radar, where we have been with various assets over the last 24 hours, where we are right now. This is dollaryen, we have a handle on that. A really big move, 1. 73 . Strong. [no audio] and gold, once again a story this morning, up by 8 10 of 1 this morning. Let us get the bloomberg first word news. Nna, a few Federal Reserve officials now expect the bank to raise rates more than once this year. Policymakers painted a mixed picture of the u. S. Economy, but growth is picking up while job gains slow. Chair janet yellen also cited britains referendum on eu percent next week as one of the uncertainties discussed in a twoday meeting. Upcominglen the decision on whether a not to leave the European Union is something we discussed. And i think it is fair to say that it was one of the factors that factored into todays decision. Campaigners are continuing to protect the governors vision of the proposed gove was one of the House Campaign leaders, criticizing the austerity budget that they remained camped would be necessary to shore up finances if the u. K. Votes to leave. The plan may offer George Osborne a growing rebellion from the tory party, right up to the rejected height and spending cuts. Denmark has unlimited firepower in the form of currency intervention, to ward off any threat to the euro tag, should britain vote to leave. That is according to the governor of the bank we spoke to him in copenhagen. Of course there will be the currency market, we can expect some volatility over financial markets. So, yes, and we are prepared to do what is necessary to counter that situation. car owners and the u. S. Government have given more time to file settlement proposals in the volkswagen emissions scandal. A judge side of the highly technical nature of the negotiations. The new deadline for Draft Agreement has been set for june is and comes as the ceo delivering a new strategy later this morning. Investigators say they have found a main wreck site of 804 witchcraft with 66 people on board. Egypts Aviation Ministry says a search has gotten images, did not specify the location. Global news 24 hours a day, powered by 2400 journalists in around the50 bureaus world. You can find more stories in the bloomberg top. Anna thank you very much. Let us check out alive markets in the asian session. David ingles is standing by. A report on global angst and yesterday session, david we are feeling it once again today. The sellingi think is picking up at the moment. But before i forget, it is just after lunch in hong kong. 30 is when we get the press conference up and running. We will really wait for more lines from the boj, why they chose to wait, why they cannot do any thing at the moment. Because as you can see, it is really getting sold off. The hang seng two points, really getting slapped silly. Sevensses for the week, hours left in trade, the rest of asia getting a cell, with the exceptions of the few bright spots. As you alluded to earlier anna, dollar yen. Have a look at the levels, 104. 16, just to perhaps put this into context as to what happened or what transpired or asian hours, we have seen some strength. In the following, the fed has an extremely dovish trend. Dollar yen plunged to about 104. 53, consolidated at session lows, 104. 18, that takes you all the way back to the chart of august, of 2014. And you do understand why the nikkei did not really sell at the moment, when you see the yen strength like this. The other story before we go, bond deals. It is, thursday but same story. Bond yields across the asiapacific, the japanese 10 year now 20 basis points, anywhere from the five to 40 year in japan. An australian hitting a record low. Anna . Anna david ingles in hong kong. Now the bank of japan has left policy unchanged as we have been saying, keeping the key Interest Rates at 0. 1 . They are maintaining the very stateless. Let us get more from our tokyo economy editor, jodi schneider. Good to have you on the program. Why did the boj take no action analysts had expected further easing. Not and i majority, but something would be done. Jodi that is right . 55 of analysts in the survey said next month. So the question was really what it would be june or july. There was a lot of pressure to ease, but timing was an issue. Thinking among economists weve spoken to is that there is reasons to delay both they arey, given that trying to allow the negative rate policy to gauge the effect of the negative rate policy on the economy. And secondly, there is an election coming up in july here. There is also the Global Market uncertainty. And with the brexit vote next week, there was thinking that if the boj were to ease today, it could be effective, if measures could have been undone by a brexit vote, that then causes the yen to strengthen. There were both reasons on both the internal and Global Market side to delay. Then,and so, market focus focus of any stiglitz conversation shifting to july perhaps. Jodi, was there anything new in with the boj said today . Jodi the only thing new, a statement that there was a deterioration in the immediate outlook for inflation. Basically saying that it is expected to be negative, or slightly negative to zero in the shortterm. We will july meeting, get a longerterm inflation outlook. And one would expect given the statement today, that we would see even more perhaps more delay in trying to reach that target. And more pressure obviously then to ease, given that target remains far off. Anna jodi, thank you very much. Let us bring in our guest for this hour. Lothar is an investment at tacit management. Great to have you on the program. Let us talk about all of this news floating around the Central Banks. It seems we have a big cause button being pressed by the Central Banks. Just over the last 24 hours, they have the brexit question looming on the horizon. The amount of stimulus being put into the market were taken out of the markets but even the fed were the bank of japan. Not a big surprise. Big surprise yesterday evening from janet yellen in her statement. I had expected a little bit more hawkish than it was at the end, quite dovish. Then we on brexit then, might read in the moment, let me see here, once briefly, the focus was on a lackluster u. S. Economy. And that is a little bit of an on and off, isnt it . Just a couple of weeks ago we got all the messages from fomc members the next rate rise was imminent. It looks like this will not happen until perhaps the end of the year. Anna and even if the medium estimate is we get two heights this year, looking at the you can find this, on the bloomberg looking at the dot, the shifting policy for this year. Back in march, we had just won. Fed officials talking only one height this year, now we have six talking only one height this year. This is more dovish then you mentioned. Lothar what i found most notable was the longer and of the dot, how much that has come down. It is starting to become more in line with the market expectation, which that is interesting, but you said cause button earlier on. It does seem to me that the central bank is going to be doing everything to keep things calm, before next week. Vote, we willexit get just to make sure that if something on expected happens, there is not also monetary pressure on the markets at the same time. And 45 minutess until the polls open in fact. Let us move on to the boj. We talked just now to jodi about that. We see strengthening and the yen of course, touching levels we have since september 2014. What is the point of action do you think for the boj . They have to do something if it goes through 100, or is there a magic number to you . Lothar i am not sure there is a magic number on the currency. But i think at the moment, the boj is grappling with two things. Trying to assess the impact on the banks of negative rates, and secondly, if you look at the Macro Economic data flow at the moment, it looks as though that may japan is turning at the moment, maybe turning stronger in the coming months. That is what the boj is looking and waiting for, to assess whether there is any more stimulus is on the horizon. I think what may worry markets at the moment, this whole notion that have Central Banks run out of ideas . Because they just dont know what else to do be on negative rates . And that will obviously be not a very well commented situation. Anna you see something stronger than that, i have a charger showing cpi, showing some achievement under governor kuroda. This goes back to 2011 or so. It shows some achievement on inflation, 1. 5 . But selling positive at least on this measure, excluding fresh food, energy, and tax hikes. But concern seems to be in the japanese market that progress on Consumer Price gains is now being a little bit eroded. Isnt that the danger with the strengthening yen, returning that good work risks being undone. Lothar that is a Rearview Mirror rehab. That is what is currently looking like, but when you look at some of the forward indicators, some of the export numbers, some of the wage numbers, all of that seems to indicate that it could get better. And i think that is what the boj may be hoping for at the moment, why they dont want to jump the gun at the moment. Anna thank you very much. Lothar mentel stays on the program. Here is a look at what is coming up in your day ahead. We get a Rate Decision from the Swiss National bank at 8 30 u. K. Time. And we will be speaking to Thomas Jordan later in the day. Guy johnson will be doing that later this morning. There is more centralbank action at noon of course, the bank of england announcing the policy decision. We get u. S. Consumer prices, and later tonight, the u. K. Chancellor George Osborne is scheduled to make his annual speech at the dinner in london. Mark carney will also be there. Interesting to see how much the u. K. Referendum is mentioned, and how much that the stick to other topics like technology. And we are led to believe that could be a big topic of conversation. Up next, day one at the st. Petersburg Economic Forum. We be talking to the ceo, one of russias most fast this esteloping fast developing retail banks. \ welcome back. 6 18 in london. 1 18 in hong kong, where equity markets are weaker. A lot of talk about the Eu Referendum of course next week, and that showing the markets picking up pace as we go to the afternoon session in asia. Also the fact that the boj did not doing anything, some had expected further stimulus, having a toll on markets today. Let us get the Bloomberg Business flash. Owners andnna, car the u. S. Government have been given more time to file edelman proposals in the volkswagen emissions scandal. A federal judge delayed the filing deadline to june 28, citing the highly technical nature of negotiations. That comes as the ceo is due to present his new strategy later this morning. Deutsche banks chairman has become the latest Global Banking leader to warn about the potential dangers of a brexit. He says it would be an Economic Disaster for the u. K. And a political disaster for the eu. He drew a contrast between Public Opinion polls, which point to a vote to leave the eu, and the odds would reflect a preference to remain. Resort area florida remained closed until further notice after the death of a twoyearold boy who was dragged into a manmade lake by an alligator. He was about a foot away from the shore, when he was snatched and killed at disneys resort and spy in lake buena vista. The main rival in china has said to been valued at 28 billion, people familiar with the matter raisede ridesharing app 4. 5 billion in a round of funding set by apple and domestic investors. The increase on last years valuation of about 16 billion make it the Worlds Largest privately bank company. And that is your Bloomberg Business flash. Anna . Now, to st. Petersburg for the Economic Forum. Bloombergs Ryan Chilcote is there for us. What is the expectation . Excitement there are building up in petersburg . Ryan good morning. The forum is just taking off. I am joined by the ceo of one of russias fastestgrowing bank, the largest private banks name is ruben. Thanks a lot for joining us. I want to talk about what is happening here at the forum, but we cannot not talk about brexit. Because everybody is already talking about a year. What would brexit me for russia . Ruben i think immediately, it should have a huge impact on russia and russian business in the state of affairs. I think the key question is longerterm. Petersburg shows the influence, the european influence, so russia for hundreds of years has been quite integrated into europe, being part of your. We have sanctions right now, and they are so obviously an issue. However longerterm, i dont think russia is interested in a weak euro. And the big question, will it weaken enough . Ryan to what extent is that your personal view. Obviously there is perception out there that Vladimir Putin and the kremlin would just be delighted if the u. K. Was to leave the eu, because it would weaken the eu and a very sanctions you mentioned there would be more difficult to maintain against russia. Ruben i think the key there is that, from what i hear and see, i mean, you have heard some things. There is a huge challenge period, where the Prime Minister and a lot of other people. But i do not think brexit has a key is a key to sanction removals. I think there is going to be something to the sanctions within the next year, something should happen to sanctions within the next year. I dont mean it will be removed, but some adjustments may happen. That is the feeling i have. Ryan you have more than 100 people in london. You wake up on june 24 and realize the u. K. Has exited the do you pull out of london . Ruben i dont think so. Back in 2008 and the crash in 2008, there was a lot of discussion that london will get abandoned by the bankers that will all move. I think the key there is that there is no other european single city which is ready on the workforce point of view, from the real estate point of view, etc. For banks to move out of london, it is going to take years. And for us, i mean we are full of anguish and the u. K. Infrastructure, and there are obsolete people, and all the rest of the things. As far as we are concerned, in terms of that we are relatively small. For us, the key is to look at the people with a voice to see what theyre doing and just follow the lead. Ryan and you like being in london. Ruben we do. From the point of view of the tax, from the point of view of the regulator th, clients like the infrastructure. Yes, we do like being in london. Ryan and would brexit mean the implosion of leningrad, would all the russian start selling their houses . Ruben and going where . The key there is i dont think there is a lot of contrast. If you look at france, particularly their own taxes, the budget, and so forth, i dont think that there is anybody out there who is really waiting for those people. I dont think that is a russian issue. I think it is an issue for the whole international workforce. You do live in london. Ryan that is true. We all he have a minute and a half. Let us talk russian sanctions. You are a private bank. Does that help you gain market share . Ruben no. Fundamental, the key is not a sanction. The fundamental key is what happens to the economy. And as we discussed at some other time, the key in russia, the key problem of the economy is the lack of Structural Reforms. And the russian economy was not doing well, despite the sanctions. And the growth was slowing, and so forth. Russia is one of those economies it needs to grow 5 . And it was not for the last year. In my opinion, that is the more fun little issue, rather than the sanctions. So no, we do not get Additional Market share. We would love to have the Structural Reforms and growth. Ryan we just got a rate cut, 50 basis points. What you see happening the rest of this year . We have like 20 seconds. Ruben in my opinion it will be stable, itll be good for the russian interest. In my opinion, if things stay as they are, we will see more cuts. Otherwise, we will be stable. Much. Ruben, thanks for he was joining us here at the st. Petersburg international forum, our very first guest of a good two dozen. Anna excellent. We look forward to the ball. The potential for the russian economy and the need for reform. Ryan chilcote, thank you very much in st. Petersburg. We will be back with ryan. On the program, we go back to the Economic Forum, where ryan will be joined by dmitry kostygin. That will be all of on spief. Welcome back to countdo