kuroda. he will take over 2020.bank of japan will ever raise interest rates? at tguhis moment. continue easy to monetary policy for the next 6 months. governor kuroda is not thinking about banking at this moment. you may think about it at the end of next year but not right now. david: thank you for joining us on the program. up, we are speaking with the central bank governor of the philippines. this is bloomberg. ♪ what did we do before phones? they save us from getting lost, getting hungry, and getting tired of places like this. phones changed everything - shouldn't the way pay for them change too? introducing xfinity mobile. where you can pay for data by the gig, and share it across all of your lines. no one else lets you do that. see how much you can save when you pay by the gig. xfinity mobile. it's a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. announcer: from our studios in new york city, this is "charlie rose." charlie: ken burns and lynn novick here to introduce th

stillka, governor kuroda defending what they are doing. low inflation, 0.5% on the key any talk given -- about exiting stimulus is premature. also some optimism. be forcedare going to to raise prices as they see rising wages and they get harder and harder to absorb. i want to show you a chart. #btv 8160. it has two components. the white line is the unemployment rate. is morgan stanley japan which growth indicator, kind of a tractor. you can see it has gradually risen and leveled off. if governor kuroda is right, maybe we will get the desired effect. when it comes to north korea, very interesting that governor kuroda did say the bank of japan is monitoring what is happening in the tensions rising. presumably, he is concerned about business confidence being affected. with prime minister abe, it is a different story. he things better confidence is isng lifted because he taking a firmer stance on north korea. tax.crease in the as you mentioned, will it hurt gdp and slow this inflation battle? maybe not if his ¥2 trillion stimulus package can o

headlines from the boj governor kuroda.ice target is still distant and they want to achieve an economic cycle. the bank of japan is not simply aiming for an increase in inflation. 2% is still a distant target. anna: coming up on the program, president trump at three countries to the list of restrictions. we get the latest from the u.s. travel ban. plans of a snap general election. this is bloomberg. ♪ ♪ lumber daybreak europe, it is 6:34 in london. digesting the german election. we will hear from janet yellen tomorrow. a lot of the fed speech this week. we'll have a few more lines from governor kuroda. let's get a bloomberg business flash with juliette saly. juliette: chinese property stocks plunged in hong kong after edit housing first, adding speculation that the court rising prices. they rolled out restrictions over the weekend with most retails between two to three years of purchase. areel cars in germany falling. automakers and the potential of vehicle dan in the country led to significant changes in the consumer behav

it is a good look for kuroda.anet yellen has a knowledge that this year's fall in inflation was a bit of a mystery but suggested the central bank was on course for another rate hike this year anyway and three next year. the fed said in october they will start shrinking their stockpile of assets moving to online -- unwind the crisis pillars. here's what some of -- she had to say last night. >> to maintain the target for the federal funds rate we continue to expect the ongoing strength of the economy will warrant gradual increases in that rate to sustain a healthy liver market and stabilize inflation around our 2% longer run objective. we also decided that in october, we will begin the balance sheet normalization program that we outlined in june. this program will reduce our securities holdings in gradual and predictable manner. overall, we expect the economy will continue to expand at a moderate pace over the next few years. in the third quarter, however, economic growth will be held down i the severe disruption --

let's start with boj governor haruhiko kuroda. >> but in the u.s.inflation rates are actually close to their target, close to 2%. in japan, the inflation rate is still 0.5%, far away from our 2% target, so there is some difference between u.s. and europe on the one hand and japan on the other hand. wages are not rising so fast, that is true. prices are not rising. here, there is some kind of differentiation in the mindset, strong among business leaders, labor union leaders. they tend to be cautious in raising prices. so what companies are doing his they are heavily investing in labor-saving equipment, and so on and so forth, and also they are changing the business model so as to reduce labor content. by so doing, despite some wage increase, it has not been rising, so they are not required to raise the prices. >> they are doing well. gdp growth up six quarters in a row. exceeding on growth, and maybe something has changed to the degree that -- does inflation matter so much? japanese households like inflation. if you have the growth? >> i don't think

mary: the boj, but also i think kuroda can shake hands with mr.e because he is very much in the same situation, and of course, europe, the council meeting is coming up already this thursday. both gentlemen are very much in the same position. not a position they would like. manus: not a position they would like at all. in terms of how you look at central banks. they have not stopped buying government bonds. they are still fully locked and month, $300 billion every . where in the corporate space do you want to go? i wonder, when i see the price of junk and i see emerging-market bonds and i see countries being able to borrow at 6%, i wonder, this is a search for yield too far for me. mary: i can imagine when you have a look at the charts and you see spreads grinding lower, bit by bit. that is just the type of environment we are in. inflation is very low so this is a very good environment for bonds, and also it is those geopolitical senses are not going to escalate. that is the worry of the day. continue.till manus: mary, stay with us. we have a littl

it is maintaining governor kuroda's yield at about 0%, saying the economy is expanding moderately.-1. the curve yield is not enough toward the tubes and goal. a chinese conglomerate has raised the equivalent of 600 u.s. million dollars. it sold 643 million shares. that is seven dollars hong kong. final price rivers discount of more than 5% on wednesdays closing price. the sec says a hack of its database may have led to cyber criminals reaching profits. they only learned last month of possible illicit trading games. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ >> we still have japanese stocks trading new two-year highs. the nikkei is set for a second week of gains. rising about 6% in that period. eased today, keeping steady around 112 45. the boj speculated that a unanimous vote would keep the yen closer to 113. guy, that hasew push toward the 112 mark. in the nikkei index, we see tech stops -- tech stocks on the back foot. energy shares are powering ahead, gaining 3%. a quick look at shares down under, lo

governor kuroda made it very clear inflation target is very far away.s room for the boj to do more, and they have done a wonderful thing. targeting the yield curve with targeting the 10 year bond yield. basically around zero. as a result of that, you see japanese monetary policy. the japanese yield curve being very supportive for a weaker yen going forward. we expected to hear from jl and as well. what do you want to hear from her today? >> the thing you want to hear she isllen number one is confident the financial system is actually stable and the financial system is actually capable of coping with some of the deregulation that the white house, that the treasury is trying to propose to ease some of the credit constraints in the region all u.s. economies. personally, i am not that focused on the inflation debate. i am focused on the tension between the federal reserve and the treasury on the proposed changesry deregulation in finance because i think if there's regulatory changes go ahead, that would be much, much more important than the inflation outloo

what can we expect from janet yellen and kuroda? kathleen hays is there. does this move the dial? that they cloud hanging over the reserve is the inflation gauge. it started weakening for months ago, moving away from target. when the cpi accelerated for the month of august, people were upturnmaybe that was a in the pce. the retail sales report we got on friday true cold water on that because here is what happened. they were supposed to be hit by the hurricane but they felt 2.1%. even more condemning the actual numbers for sharply lower suggests there was weakness before the hurricane hit. there were a lot of selling days due to auto sales as you can imagine. people could not go to the store after the hurricane. what we see now. this has an influence on what people are looking for. will weaker spending actually slow inflation? what will we end up with? 0% odds of a september rate hike. december odds are now up to 46.7%. people are thinking by the end of the year, we will see numbers that allow the fed to move. week, they will update their economic projections. will they change thei

he says the central bank should reduce its annual bond purchase target, calling governor kuroda does stimulus program and ineffective. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: growing doubts that the federal reserve reserve can justify another rate hike this year. the is helping to fuel government bond rally. officials on tuesday said inflation is too low for the fed to move anytime soon, if at all. kathleen hays will take us through the latest fed speak. kaplan just spoke and is keeping the door open to another rate hike this year, but he has got two, hasn't he? >> he made it very clear yet again that what will hold the key to going through that door is inflation. let's look at the problem he is having with inflation that every other fed official in this camp has expressed. 6897, showing you the headline pce, core pce, two of the fed's main inflation gauges. the red line is the 2% target. both of those numbers are down to one point 4%, a steady decline for the past five months. rob kaplan is

could be good for kuroda-san.to fall after the fed's decision, trading at a two-month low. with a two in three chance of a december hike, it leaves a chance for more rises in treasury yields. one said that fresh impetus is needed. we will see the boj governor, corroded, can provide such incentive. 126, you can see the yen broke through the 200 day moving average. the line in yellow on this chart. they could beat poised to test of the resistance. fedo have the hawkish against the dollar. we do have the yen remaining on the defensive. again, the cloudy outlook for that currency. so much, taking a look at how the markets are ahead of the fed and ahead of the opens. founded over a year ago, ellevest is an online investing platform that offers exchange rate funds to help women save for retirement, a different way for women to look at gathering funds before they retire. cofounder and ceo sallie krawcheck enjoys city rolls that city bank of america and just this week closed $834 million funding round for her company. gre

at a news conference governor kuroda said the bank would respond as needed to any impact of the north korea situation on the japanese economy the dollar/yen moving higher to the tune of 0.25%. that unchanged view from the bank of japan was expected also because we have a snap election this fall, most likely. and we have some delay in some of the fiscal rules. so i guess that leaves the boj in a bit of a bind that wasn't the only central bank meeting today we have norway let's tell you about what they did. they also left the key rate unchanged at 0.5%, saying there is continued need for expansionary monetary policy the outlook suggests inflation will remain below 2.5% in the coming years that said, they also said that the new forecast implies a somewhat earlier rate increase than previously stated that has led to this rise in the norwegi norwegi norwegi norwegian krona. >>> coming up, angela merkel tells supporters every vote counts ahead of the weekend election more from germany after this short break. ah, dinner. throughout history, the one meal when we come together, break bread, sh

you worry about governor kuroda leaving or about the political elections?he political elections. governor kuroda is wonderful, but he can be replaced. it's more about the institution. the prime minister, as you said with your analogy theresa may, a week prime minister would be something different. one of the great things about shinzo abe has been has political strength. he may not be popular, but he has been strong within his party. the interesting thing is that we be 3.0, whichward a is the reverse. japan is usually a lot of talk on policy. we are seeing real action and progress. in japan, i'm wondering if we will continue with optimism with continued action and less salesmanship from shinzo abe, which would not be a bad outcome. what kind of report card would you give prime minister abe on that? adam: i would give him a b, plus.ly of thy a b you have reforms including the tpp, which was pulled out from by trump through no fault of his own. the most important has been the reactivation of women in the japanese workforce. going forward, the reason why he wan

for anybody in any doubt about what is going on in terms of control, we had a conversation with kurodaweek. everything is working fine as far as the japanese are concerned. yields falls below zero for the first time since november of last year. geoffrey yu, we will get to the german story in a moment. does that mean anything to you? if you made money for the jgb's in the last 30 years, good luck. he story is from the u.s. in japan you are seeing good internal dynamics. it is sustainable in the longer term. don't challenge the boj, please. manus: let's return to the story that we heard from the ftp leader with matt miller. great interview. my impression is ms. merkel has agreed with mr. macron to set up new money pots and transfers in europe for the first time after i'm election and that contrasts the ftp position which is euro crunchies just countries must be responsible for their own economy. it is not a done deal, ms. merkel, if you want me in your coalition. geoff: despite what he said, the fact is on the social issues, all the parties are not that far apart. it has to be on the eco

anna: what does it mean for governor kuroda and his policy?hing in the numbers to worry about, but where does he go next? correct.s he's been very powerful since 2013 when he came through. he forced his way through their and we should see the same thing happen but we will get continuing debate on the board. interestingly, we will get debate about whether enough is being done to bring japanese inflation to 2%. manus: thank you very much, brett miller. is a global strategist over at j.p. morgan asset management and he is still with us. if you are a bit vexed with the fed and our need for great stimulus in the nine states of america, what do you have to say to the japanese, because they just keep on printing money? david: and how is that working out for them? manus: gdp is up. david: that's the point, they have achieved nothing on inflation for years, despite enormous fiscal spending. but the employment rate in japan is 2.8%. there is nothing wrong. but it's a morphine drip of more and more cash into the economy and more bond buying and fiscal sp

>> i think so and combined it with boj governor kuroda's it has come back and the prospects of interestverseas, the yen is expected to stay relatively weak, so exporters should be ok. abe is worried more about domestic demand. consumption has been a problem. by putting money into the pockets of families and raising kids, the idea is to boost consumption and make that a more reliable source of growth for the economy. guy: you don't call a snap election unless you think you will when it. it is a lesson we learned in the u.k., despite the outcome. as popular as he is in japan? what are the lessons we can draw from what is happening in germany and the u.k. about what this will deliver? >> it is interesting. he struggled over the summer. there was a series of domestic scandals. he was looking like he was on the ropes. you have to take into account that we have had six quarters of economic expansion and the labor market has not been this type in decades. we have essentially employment in japan. look at geopolitical tensions in , though verbal war between north korea and washington eating up,

kuroda doing, more what he has been doing? . what is the target for dollar-yen?t very high, it has the closest correlation with u.s. bond yields of any currency in the world. if i cannot see 3% on the tenure know, i am struggling to think about 120 on dollar-yen. [laughter] the value is close to 100. there is going to be a day in the future that i want to be awake for, when the bank of today we have decided to move our target, to, we want to target 1.1% instead of zero. today we have decided to move ouron that day,d to 100 like something being pulled by a elastic. in that direction i think -- elastic in that direction. i think that is more than 12 months away. abenese economy is good, has been optimistic. we will see where we go. if u.s. yields cannot get above 3%, the dollar-yen cannot get above 1.20. abigail: kit juckes thank you so much. we talked to finance minister bill morneau about his plan to tackle the deficit. this is bloomberg. ♪ abigail: "what'd you miss?" canadian finance minister bill morneau is optimistic that the country's global economy despite a

is this going to be playing into what the boj does and whether it will be a headache for governor kurodabsolute headache. the worst-case scenario for the boj is a risk off strengthening of the yen. feasible for the bank of japan to maintain the ceiling on its 10 year yield target. it is much more difficult when yields are under pressure to fall below zero into negative territory. in that case, they have to keep reducing purchases. that might invite the impression they are aggressively tapering. if we see a softer print in these numbers, which are out and about 90 seconds, what do you think the market reaction will be like? izumi: i do not think the reaction will be very big. it is very much expected the gdp number will be downwardly revised. talkingit is, we are probably above trend growth, close to 60%. i do not think there will be a big reaction. even if there was a reaction, likely short-lived in any case. your fundamental view of the japanese economy is what? izumi: we think japan is doing pretty good. down inorts slowing 2018, public investment is fading next year, that could be --

this is the central bank should reduce its annual bond purchase target calling governor kuroda is unprecedentedeffective intravenous drip. this is bloomberg. ♪ global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. let's have the latest with jesse kamaruddin. getting a little bit messy. josie: there are a few things that we are seeing, the bond rally and we have a slightly weaker dollar and you can see from the red column that asian equity markets are under pressure. when it comes to what is dragging the most it is financials, that segment weighing across the benchmarks and we are seeing the treasury yields continuing to drop below 2.06%. to show you what is going on financialsspi, falling and telcos falling so trading at the lowest level since august 11 falling for a fifth straight session. over this time the kospi index has lost the most ground. nomura downgraded korean banks to neutral too low stressful growth a week industry and issues in the housing market. also highlighting the popularity of internet banks weighing on the players in the

they'll be comforting to governor kuroda. prices -- household spending is supposed to be better. --is a big day-to-day louche it is a big data deluge. no sign of an exit, they are way off from their target. friday morning in the u.s., we look at the pce. unchanged at 1.4%. let's take a quick look at the chart, g #btv 7829. it shows you what this looks like. the core, the main measure, expected to stay at 1.4%. supposed to move up 0.1%. we heard from janet yellen, does not matter, would be imprudent to wait. ater france, chief economist a conference in frank for it said the ecb's inflation commission has not yet accomplished. he does not some of the man ready to make that step through the exit door just yet. we will see. betty: thank you. isnival cruisers said it smooth sailing through the aftermath of the hurricane. the company's ceo joins us to discuss their latest earnings and expansion into asia. us remains chain concerned about china's growing mountain of debt. this is bloomberg. ♪ yvonne: we are counting you down to asia

he was talking very highly of the boj governor kuroda, after he announced the snap election. list of candidates for the boj, still a blank slate. something to think about. kathleen: we have something else to think about, first word news. north korea has ramped up its plans, issuing a propaganda video with destruction of u.s. military assets. they show an attack on an aircraft carrier. as well as president trump and a burning flag. [no audio] emma: u.s. commerce secretary wilbur ross repeated his views that his visit to china went well. he met with li keqiang and other officials. he said it will be good for president trump's visit to beijing later this year. if you look at how the trade is one geographic source, that is china, one big product source. then there is automotive and automotive parts. essentially if he can resolve china and automotive, in theory, you could resolve the whole trade deficit. force --a's wealthiest person joining forces. they will be part of the alipay hk round launched in may. it will allow people to make payments to thousands of retail outlets. listi

we are going to have governor kuroda replaced or staying.hat happens with the bank of japan. there has been a shift of members on the bank of japan board. some time later next year we will see a shift in the yield curve target slightly higher. it is way too early at this point. rashaad: there has to be a line in the sand at some stage? -- for dollar-yen dollar-yen, it could continue to hedge higher but we are ending up at the top of its most recent range. where is the line in the sand? someone say there is no inflation at the moment in japan. it's hard to say the boj is shifting policy despite the growth outlook? rashaad: on the dollar itself and theit's hard to say the posf tightening coming into play in october, what happens then? >> we have been a in year where the dollar has been on a way down trend. dollard see a bit of a andce if the market price more fed rate hikes. the last meeting was more hawkish than anticipated. we are looking for the fed to hike twice next year. the markets have not uprising that it. at policy, you mentioned tax

a nighttime kuroda few is in place through saturday.eos showdown town san juan getting whipped by 155 miles per hour winds and soaked in more than 20-inches of rain. it was a slow crawl across the island. plenty of time for the storm to snap trees in half and fill the streets with deep flood waters. carribbean natives here in the and watch as maria hammered their homeland. >> when i went through katrina here and this is the united states, i just can't imagine that small island. >> forecasters say the hurricane became diss organize and even weakened a bit as it loved over land. maria is expected to restrengthen as it moves over warmer waters. meantime, guadalupe is getting back on its fetal after its own brush with the hurricane. they're dealing with serious damage and two fatalities authorities say roofs were blown away and large trees brought to the ground. creating a mess that will require months of cleanup. >> everything fell on the ground. thank god we still have the house. the roof is holding together. but the solidarity is there.