i think that is what governor kuroda will stress.ng that will discourage them from moving is that we have the longest postwar market shutdown coming up, so this is not the time to rock the boat for the bank of japan. paul: are we going to be looking back on these days and thinking, japan was a global case study on how you manage an aging population? i think now the conversation is about whether we are seeing the same types of challenges in the eurozone. the bank of japan is certainly not alone in facing low inflation challenges and the difficulty of getting traction with inflation and growth, with monetary policy alone. shery: thank you so much for joining us. bank of america merrill lynch and policy editor having his in tokyo. if you missed any part of this conversation, tv is your function. you can watch us live and live into any securities or functions that we talk about. become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bl

will governor kuroda be asked about that? kazuo: two things.oj is monitoring what is developing in the european markets and -- [indiscernible] boj is already decelerating the pace and, another thing the boj can say is that this is shared, both across assets -- and that is where i think -- [indiscernible] kathleen: any chance that the consumption tax hike will be postponed by the government -- prime minister abe said maybe if there is a lehman brothers type drop in prices, we would consider it -- nobody seems to be anything near like that right now. kazuo: when he said about lehman brothers crisis, we have to really read between the eave -- leaves. [indiscernible] this is all about politics. if governor kuroda gets asked about the tax like today, he is going to say this different drum before, it has been designed to offset on key groups, lower income families, young families to make sure we raise more revenues, but we don't hurt individuals and we don't hurt the economy. when you look at how this is designed, do you agree with that analysis? kaz

kuroda, one of the biggest central banks in the world, japan.sed with how well he's done a little over 22,000, 1989 it was 39,000 peter, what's wrong with this picture? >> well, i want to add one more stat since 1989, the japanese top bank stock index is down 80% so we have to understand monetary policy doesn't create economic growth that wouldn't have happened otherwise. it just shifts around the timing it tries to convince people to buy a house today instead of tomorrow buy a car today, instead of tomorrow, to take advantage of these new low interest rates but that growth would have happened anyway and in fact it would have happened more through savings rather than encouraging excessive borrowing. we're left with too much debt and we're left with a damaged banking system because low rates or zero rates or a flat curve doesn't provide the impetus for a profitable bank. >> all right, now let's grade on a curve here everyone in the world is in the same boat so to speak from a global vantage point and out of all of the ships that we're discussing

deja vu for governor kuroda. i am afraid so. is no doubt that after nine years of unprecedented stimulus the bank of japan has not come close to hitting the 2% target no matter how you look at it. today here i am, on the street in tokyo. the bank of japan behind me. they are wrapping up their two-day meeting later this morning. the reason i'm here is four times a year the boj up dates its outlook on the economy. that is why people are very focused on inflation. ,hy don't we focus on inflation bloomberg terminal chart. it tells the story of what is going on. looking at the yellow line, the national headline inflation of -- it is the white line i want you to zero in on because cpi minus food prices, it fell not even barely at 1%. the purple line is food and entergy, but the shortage on the call desk that is what we want to look at. you can see the boj would lower its forecast, particularly out to 2021. our news team saying we could see a reduction to the lowest two year outlook from the boj in years. but i showed you that chart. w

japan is likely to make its most conservative inflation outlook under governor haruhiko kuroda. that is the prediction of the bank's former chief economist, who told us the boj will set is itecast below 1.8% when released its outlook for the fiscal year and a quarter report on april 25. he says anything higher than that is "too ambitious." i think it is impossible to forecast the inflation target around 2%. it can only keep the direction of positive price momentum. >> ethiopia will release a preliminary report thursday 737 -- 737 maxhs 8 crash. it should indicate whether a computer system may have played a role in the crash. the same system had activated on lion flight in indonesia. more news on boeing. it is delaying test flights to send astronauts into space, including the first launch of a rocket that will carry a crew. it is now targeting august for an unmanned test flight in which it's caps on will write a rocket built in conjunction with partner lockheed martin. boeing is looking at a manned launch towards the end of the year, some six months later than originally schedule

the boj is likely to make its most conservative inflation outlook under governor kuroda's leadership. prediction of the bank's former chief economist. he told us the boj will set its forecast below 1.8% and release its outlook for the fiscal year in a quarterly report on april 25. he says anything higher than that is too ambitious. i think it is impossible to forecast the inflation target around 2%. they can only keep the direction of positive price momentum and that is probably it. release aopia will preliminary report later thursday into last month's 737 max 8 that killed 157 people. initial findings may indicate whether a computerized anti-stall system forces the plane into a dive may have played a role. the sync system had activated on the doomed lion air flight in indonesia five months earlier. boeing says it told airliners how to disarm the system following the disaster. boeing is delaying test flights to send astronauts into plain -- space from nasa, including a launch. it is targeting august for an unmanned test flight in which its star liner capsule will run in conjunction wi

people are hoping that and governor kuroda among them.rg news team here in tokyo learning they are considering cutting the gdp forecast in light of what we have seen it -- not the inflation forecast. china's economic slowdown has stabilized but taken a toll on the region including japan. there is u.s.-china trade war also weighing on the bloomberg -- look at industrial production. exports have been weaker. it has been suffering. we have seen stronger economic data from china responding to the stimulus from the economy. u.s. manufacturing, pmi looking better. that could give the boj more hope. oj officialsex-b that done with us and he is looking ahead. october, the tax hike is coming and he seems to think it will hit the economy. that will take -- make it harder to get closer to that target. listen to what he said. the bank of japan expects the overseas economy to turn positive at the end of this year but i don't think it will be strong enough to offset the slowdown in japan after the sales tax hike in october. kathleen: more than half of

kuroda doeshink mr.iscernible] it takes a little more time, but also they will keep the inflation target. [indiscernible] also the last two years was some kind of official from outside. moveey are going to tightening, the ecb will fall away to that. [indiscernible] changed, so now they have stopping operations in some market people say they will -- letter half of this year they will have some opportunity of lowering. you have to totally abandoned such normalizing policy issues. the boj, -- mainly from the united states. kathleen: i wanted to ask you about the u.s.-china trade war because the economy has been doing well. it looks like inflation might be entering -- gathering slightly higher wages. be -- would the economy be better or closer to its target if it were not suffering from cancer in tn direct impact on production from this trade war? hiroshi: if you compare with the japanese position and south korea, south korea is more dependent on trade with china. the china trade, it means even the china eco

on a brighter note, governor kuroda at the boj talking to reporters said the global economy is slowing down but he thinks the chinese recovery will start showing up in the second half. same thing for europe. fed officials speaking to bloomberg television today said the focus now for the fed is on hitting the 2% inflation target. there is a sense the fed is not going to move. you've got to get over the 2% rate or maybe there is no rate hikes for the rest of the year. the focus oneen, negative impact of the trade war between the u.s. and china, that puts all the more focus on the trade numbers coming out in china any minute now. what did the imf director of the asia-pacific region say about this earlier? kathleen: he said the whole key was how the u.s.-china trade war is going to affect these economies, how they will affect market sentiment. he is the director for the asia region. done, thendeal gets the markets feel better and they will rally and that will help these economies from china around the world and in the other direction. interesting what he said about the trade war and china'

plus bank of japan governor occ kuroda, what he says is the biggest risk to the global economy. and we're counting down to netflix earnings tomorrow. what every investor needs to anyway ahe know ahead of the results. "the closing bell" starts right now. ♪ >>> welcome to "the closing bell." i'm sara eisen here with wilfred frost taking a look at the market lower right now. we've been in a kind of narrow trading range for the dow. got down as low as 95, up 12 we're somewhere in the middle now. down 31. a defensive tone to today's trade. what's working in the s&p, consumer staples and health care, financials, and real estate among the biggest losers. not digesting those bank earnings particularly well that's probably one of the bigger catalysts today >> citi just went positive briefly but is back in the red coming up, panera's ceo will join us to talk about the company's breakfast business and how it's stacking up against competitors. >> but first as we mentioned, banks the top story. under pressure after earnings this morning wilfred, you've had all day to sort of reflect on the n

francine: what should governor kuroda have done differently? antonio: good question. of delaying too much. the negative rates indeed is an issue for banks because it sends a bad signal. you are trying to give forward guidance that could bring year rates lower because you have seen the situation, you are able to move out of their. morenk probably coordination between monetary and fiscal would have been better, but this is something in the hands only of the governor of the central bank. say, thes will negative rate policy is something that has not been fully appreciated. francine: do you see value in japanese equities? patrick: i do, actually. francine: you have for a while. patrick: we started buying in february, and it is the one region showing up very good on earnings. japan is at its fourth percentile. it has never been cheaper on earnings. ebita is quite cheap as well. a lot of the reasons tom has mentioned about the impacts of the economy and the demographics are not news, but on valuation, good, even on dividend yield. they are getting 2% dividend yields in japan

both talked about downside risks to the economy and the risk of a global slowdown, although governor kuroda also said he thinks by the second half of the year, with a trade deal et cetera, the road could be on a better footing. haidi: president trump seems he can't leave the fed alone. he blames the fed for the state of the u.s. stock market. do the comments suggest he is ready to take specific action? ros: it seems recently that president trump has given up trying to fire jay powell, the fed chairman. it seems like he was hoping to do more, wondering what he could do at the end of 2018. he has had so much success, it would seem from the outside, in bending powell and the fed to his will. they have made a big about-face on policy. it looks like they are at the very least sitting tight on rates for the time being. nextems likely that the fed rate move could be to cut rates. that really only encourages president trump to push further. it is push, push, push. he has a vested interest in keeping the stock market bubbling over. by saying something totally unprovable about where the dow might be

plus bank of japan governor occ kuroda, what he says is the biggest risk to the global economy.wn to netflix earnings tomorrow. what every investor needs to anyway ahe know ahead of the results. "the closing bell" starts right now. ♪ >>> welcome to

kuroda have issues should they need to push more stimulus through, i just can't even imagine the fatenancial institutions, their banks. it's not going to be pretty. we're not quite there yet. as a matter of fact, one could argue that the only news about what you were just discussing about the melt up it came now. if you talk about a pitcher in the bottom of the eighth with a no hitter that's different than saying i think he's going to get it than calling it for it in the second inning. interest rates are moving along, the dollar index is for the most part firm, even though it's not aggressive i just no matter which way i try to analyze the way the markets are linking up it seems as though we're about to see something big to the upside. we need one exogenous factor that is the catalyst and i still contend it's most likely trade >> well, looks like s&p has dipped into negative territory, steven what's the next catalyst >> the clear thing people are going to be watching are first quarter earnings reports while i think that the q1 results are important, people are going to be much more fo

just looking at live pictures there, governor kuroda giving his press conference. little was changed. remember, you can join the debate on today's question of the day. and the markets live team. ib+tv is the function to use. let's get a first word news update. brexit chaos continues, lawmakers in theresa may's party are asking her to provide a clear timetable for her departure. away from changing rules to make it easier to oust her. this comes as scottish first minister nicola sturgeon calls for a new independent vote. president donald trump has shifted the u.s. stance on libya. in a phone call, he reportedly backed an assault on the country's capital. this would have been to depose the internationally backed government. recommendcutors goldman sachs played guilty to a crime in order to settle its 1mdb probe according to the financial times. it has blamed rogue employees for wrongdoing and previously told prosecutors it was deceived by regional executives. malaysia has also faulted the company. it says goldman sachs misled investors knowing money would be misa

we heard from governor kuroda saying he thinks it is likely the expansion plan continues in japan.closely watching what is happening in the indonesian rupiah. it is a little weaker now, though it has been holding near the six-week highs. have indonesians going to the polls tomorrow. manus: while you were running through the markets, breaking news from softbank. we have seen huge bond issuances around the world. softbank at half ¥1 trillion, around $4.5 billion. it was fully subscribed and it is day one. please got two weeks of sales to go through. they were pricing the maturity 2025 with a coupon of 1.64%. this was heavily look at. softbank's stock has risen 10% since they announced the bond sale april 1. we will keep an eye on that. let's talk about the fed. tone, thege, the intonation are incredibly important for the bond markets and world markets. the fed may need to cut interest rates if u.s. inflation falls according to the chicago fed president charles evidence, who sees rates on hold until autumn 2020. falls tos if inflation 1.5%, it would indicate a restricted policy that w

king and kuroda scott king. as well as my old friend charles steele, the president of the southern christian leadership conference and reverent. together, they are at the forefront of the modern civil rights movement, and personally carry on the legacy that dr. king bequeathed us. severaly grateful that of my colleagues on both sides of the political aisle will stand with me to read portions of the letter today. i want to thank senators lamar alexander of tennessee, ted cruz of texas, kamala harris of california, tim kaine of virginia, and lisa murkowski of alaska for participating in this historic reading today. i urged the rest of our theeagues, and anyone in gallery and anyone watching on television at home that we might still learned today from this powerful message about justice and freedom from oppression. and the indifference of people who stand idly by when their fellow americans are persecuted. to begin the reading of the letter i would like to yield to my colleague in tennessee, my friend senator alexa

governor kuroda is very determined to reach the 2% inflation target.al estate side, one congressman at bloomberg intelligence said the boj might tinker with its target in japan real estate investment trust. buys ¥19of japan billion and it is undershooting that target already. somight lower that target that it eases some of the overheating in the real estate lending market at home. shery: thank you so much for that. review of the market open in south korea and australia. sophie: after the topix closed at a december hi -- high. traders will be closely watching to see if the be ok may thisa further dovish tilt thursday. may take a further dovish tilt this thursday. when it comes to japanese stocks, foreign funds have become that buyers. be cautious of chasing games too far. -- gains too far. japanese stocks tend to be solid for the next few weeks. in sydney, we are watching minors in the back of fortescue reporting iron ore shipments do test cyclone veronica. softer than forecast. it could see possible risks emerging amid raw material and power costs. pos

officials warn the global economy is facing these threats, the head of the bank of japan, governor kuroda and said the world economy is slowing down, but i think it will pick up in the second half. he thinks that china's stimulus europe willnd that see recovery as well. officials put up high hurdles to rate hikes, especially the fed board governor, that spoke to bloomberg exclusively. she said we have to get to 2%. that is our goal. suggesting that until they get there, no rate moves at all. telling us in quite another way, they are looking to eat as well. not necessarily that they will do it in may. one more thing of elected put on the table is the new head of the world bank, appointed by donald trump, he has been part of his team for the last couple years, getting attacked pretty severely by the former treasury secretary , saying that now he has to assure everyone that he is not an anti-liberal thug. he is not too pleased with his appointment. interesting to see how he deals with this. he certainly said he thinks that the world bank and u.s. needs to try to deal with china more construc