kuroda says the country must boost supply capacity to secure growth. kuroda said supply has been declines partly due to japan's ageing population. >> in the past year or so, with increasing demands thanks to large scale monetary easing, fiscal spending and the rejuvenation of private sector activities, the supply capacity constraints that were lurking below the surface have now become apparent. >> kuroda went on to say that officials must have a broader discussion about how to raise growth in light of the labor shortage. he hinted at some measures for increasing growth in the medium and long term. they include boosting production through deregulation and increasing the presence of women as well as the elderly in the workforce. that is going to do it for business hour. let's check on the markets. >>> dry and windy weather has led to wildfires in southern california. our meteorologist jonathan oh joins me now. jonathan, how serious is the situation there? >> hello, shery. the situation is pretty serious. the santa ana winds have really kicked off because

. >>> kuroda stumps the market with his optimism. the bank of japan governor says the country is already halfway to meeting its 2% inflation goal. >>> full steam ahead for the shipping giant, maersk. >>> burberry posts an 8% rise in annual profit and says japan will be a key flat form for future growth. >>> the dael is not done. russia fails to reach an agreement with china over gas sales as his trip wraps up. but putin assures he has support over ukraine just days ahead of elections. a leading presidential candidate tells cnbc his country is not ready for a union with europe. >>> you're watching "worldwide exchange," bringing you business news from around the globe. >>> good morning, everyone. yes, you're watching "worldwide exchange," ross westgate and julia chatterley are out today. let's get back to one of our top stories. the deal is not done an a blow to president putin, china won't reach an agreement to import natural gas from russia during his visit this week. the trip had been hailed as a key test, a sign of russian ties wit

boj governor hard huko kuroda expects lower consumer spending to cause japan's economy to shrink in thepril to june quarter but he does think that's just a blip in the long-term recovery. >> translator: there is no need to change our view. we expect consumer spending will remain steady. the impact of the tax hike will likely start to weaken in the summer or after. >> kuroda also mentioned recent sluggish stock prices. he says the overall upward market trend hasn't changed. he thinks stock prices will reflect the upbeat outlook for corporate earnings. now following the bank of japan's policy decision, tokyo share prices ended lower. the nikkei average closed down a quarter percent, 14,042. a stronger yen hurt overall sentiment, shares in the real estate sector especially saw pretty strong selling. here's how other major markets in our region finished out the day. many markets tracked the weakness that we saw on wall street. chinese equities managing to reverse earlier losses, though. the shanghai composite finishing with gains of nearly 0.9%, 2,024. shares of coal related companies got a

. >>> monday, cnbc will hear from bank of japan governor, harukiho kuroda. >>> and did donald trump land a hole in one with his plan to buy turnber turnberry. ♪ ♪ ♪ ♪ [ male announcer ] great rates for great rides. geico motorcycle, see how much you could save. >>> you're watching "worldwide exchange," bringing you business news from around the globe. >>> the headlines from around the globe, sweetening the bid, pfizer tables 50 pounds a share for astrazeneca, valuing it at $106 billion. astra's board will discuss the offer. >>> rbs blows expectations out of the water, a big jump in profit for the first quarter. shares up at the top of the london market. >>> and reports of casualties roll in as kiev launches a military operation to regain control in the east. the country's prime minister warns ukraine is entering its most dangerous ten days since independence. >>> and the u.s. economy is expected to show one of the biggest gains in hiring in months for april with companies in all sectors putting out the help want signs. >>> data oust the uk, the construction sector has grown for the 12th

. >> speaking to cnbc exclusively from the kazakhstan, the governor kuroda said he expected the outlooko be brighter. >> in the last five quarters, positive growth continues. of course, growth rate fluctuated and the second quarter, april, june, maybe quite low. this fluctuation is ineffabvita. but the trend has been always above japan's potential growth rate. as far as negative shock of consumption tax hike is concerned, it is as we anticipated. >>> we have a japanese economist at hsbc in hong kong. zumi, good to see you. there was a better than expected gdp number, though. how much are we going to give back in this quarter we're now in? how much consumption did we bring forward because of that sales tax hike? >> yes. i think the contraction in the second quarter is inevitabinevi. i do think that the anecdotal evidence from retailers discuss ing april sales suggest that the fallback in spending is no worse than expected. i think contraction is inevitable but it will not be a repeat of the previous tax hike which saw a sharp fall in gdp in the second quarter. >> capital spending up 4.9%

strip all that away and it looks as if the bank of japan and governor kuroda still have work to do to get closer to that 2% annual inflation target. we could in all likelihood still see further stimulus action from the boj. let me talk about some of the underperformers here, the jakarta composite is down by 1%. a lot of foreign selling here, especially in the big blue chips. perhaps the market is trying to front load the data next monday. this coming monday i should say we get the trade balance numbers and the expectations pointing towards $400 million deficit in the month of april. staying in southeast asia, thailand, having a reasonably good day today, up almost 1%, despite the fact that we got economic data for the month of april that was quite negative. really reflecting the impact of all the political unrest that's culminated, of course, last week in martial law and the declaration of a coup by the military. that is all having a very adverse effect on consumer sentiment. you're seeing that in the dropoff of the import numbers especially in the month of april. it will probably get

kuroda coming out yesterday, very much saying, look, there's no easing on the agenda. that made the yen strengthen a little bit. the sterling climbing back up towards that five-year high, up near 1.70. that's it for the markets right now. we'll take take short break. plenty more to come from st. petersburg. and we'll be joined by the man that's responsible for ubs's wealth management division. ♪ what is this place? where are we? this is where we bring together reliably fast internet and the best in entertainment. we call it the x1 entertainment operating system. it looks like the future! we must have encountered a temporal vortex. further analytics are necessary. beam us up. ♪ that's my phone. hey. [ female announcer ] the x1 entertainment operating system. only from xfinity. tv and internet together like never before. >>> almost week, stock funds saw $1.1 billion in outflows according to data from ici. this is the third week this year when investors moved cash out of stock funds, taking profits and fueling a fixed income rally. ceo of ubs wealth management joins us fr