the boj remains on hold. volatility in hong kong returning a little more to normal. more calm in that market. still above the 4000 point level. new zealand hitting records with fourth-quarter gdp coming through. let's look at how bond and forex traders have responded. stimuluske of a package from prime minister abe, the japanese yen giving back a little. aussie dollar having a great run . tick lower, and we are awaiting interest rates decision from the bank of indonesia. they are expected to keep the key policy rate at 5%. rishaad: we got the nifty futures in india with about 43 minutes before the start of the session, off a little bit. will we get another record high? we found ourselves in this position yesterday. the market up 1.1%. currently wise, flat below the 71 rupee level. tenure yields under some pressure. we have this story from the bank of india suggesting they are comfortable with a bigger budget gap, which would mean there would be less bond issuance. 6.71%.10 year, we go to new york and su keenan. the house of representatives have impeached president tr

boj, i do not think is going to take action to deepen. i think it is good for boj.ee some strong capex investment in the july to september period. how confident are you this can continue to support the economy? data, i on the current think it is dropping. in the capex investment october, december, we might see some drops as compares to the previous quarter. the whole year, i think capex investment remains strong and continues to be a major driver. andnitely for the october december data, in addition to the decline of consumption, we might see a decline in capex investment. shery: where we are not seeing a decline is in the amount of debt the japanese government holds. with this massive stimulus measure again coming from the government, i wonder if this is something we should start worrying about. this gtv chart on the bloomberg showing the balance sheet is 104% of gdp. >> yes. there.ernment deficit is it is the biggest expenditure in history. we have to worry about it. this is the same from many other countries. easing, ithe monetary would have a very low 10 year yi

we have seen the boj hold steady.ll the new fiscal measures, more than $120 billion worth, will help support the economy? jessie: it is true. i think the inflation is still far away from the 2% target set by the boj. and i think one of the reasons for the low inflation is the deflationary mindset japan has been pretty hard to get rid of. so that has been one of the structural forces weighing on inflation. and the recent fiscal measures by the japanese government has indeed provided the boj. fiscal measures came at a time where monetary policy hit is limits. this provides much-needed support for the economy, so we expect the boj to maintain his commitment to current easing policy unless there is further deterioration of economic conditions. paul: there are other structural headwinds for inflation in japan as well, not the least of which is demographics. everybody but the boj seems to accept that this 2% goal was really unachievable. is it time to adopt a range? true,: well, i think it's the demographic issue is also on

we have seen that with boj and riksbank.see it with the bank of england later today. since the election result last friday, we have seen a bigot reprice in the pound. we have seen pricing from last friday with as little as five basis points christ came 17-18lly, now about points priced. so i think the market is anticipating the banks will be dovish with similar messaging to bank is still the going to play it cautious going into 2020 and the way the markets are repriced, i don't think we will get much movement as a result. anna: we see quite a decent spike in the pound this morning. did not seem to be driven by great deal of news flow. but the pound is up by just .25%. this is coming off the back of erasing all of those gains made since the election. what is next for the pound? richard: given the sharp fall , i thinkn from cable we probably see a time of consolidation for the pound. euro, went down and now back up above 85. now it's time for consolidation. to get too much movement between now and the end of the year. depends

they say it will boost growth by ..4 percentage points [inaudible] >> i think that boj should consider the impact of these policies. for surprise call producers. it would extend the current limit for your. the abrupt u-turn has left the oil market wondering what will emerge. did banks in new zealand are [no audio] blow to austrian banks which already have major financial challenges back home. the indian government said to be weighing the easing of lending roles and allowing wider access to funds. that is five levels below what is permissive under current lending rules. >> global news 24 hours a day, powered by more than 2700 journalists and analysts in over this istries. bloomberg. sources telling bloomberg that china and the united states moving closer to an initial trade deal despite recent harsh rhetoric. we don't know anything factual. we have certain date which are set, but tell us what we are actually hearing. ,> this is the tide moving in one day of progress and then another day a setback. we have the comments from donald trump saying before in a hurry to get this deal done. it

and holding tight, the bank of england will follow the boj in holding rights steady, the first .ictory ♪ a warm welcome to daybreak europe. ready for all systems go, i found it fascinating that this gentleman referred to timidity and risk when managing his own money, but not when he was managing other people's money. it's a fascinating insight into the psyche of the fund manager. is long on equity and currency. income.t fixed good morning. nejra: he certainly remains bullish into next year but he even use the word coward to describe himself at one point, but still staying bullish into next year. a fascinating one to watch, he thinks the fed has gone too far the other way in terms of cutting rates, whereas previously he was saying they shouldn't have gone into that hiking cycle. he does think they should be hiking now. there are three things he said could actually kill the bull market. marketsf in the credit and also perhaps an acceleration in inflation that prompts the fed to suddenly have to hike. manus: absolutely. the since he gives, this is the push and pull for the markets. negati

boj's meeting minutes due later this morning. paul? paul: let's get the first word news with haslinda amin. slinda: thousands rallied in hong kong monday evening against police actions to see moneys raised by a crowdfunding group. police arrested four people over suspicions of money laundering. and $9 million of assets. spark alliance condemned the police action. raised the subject telling xi jinping he's very concerned and urged china to continue to exercise self-restraint. abe also mention the treatment of uighur muslims saying the international community is increase of a worried. chinese state television said president xi agreed that sensitive issues should be handled properly. five people have been sentenced to death in saudi arabia for the murder of journalist jamal khashoggi last year. that the killing was not premeditated and said it did not have enough evidence to incriminate two senior officials close to mohammad bin salman. he's denied sanctioning the killing but the u.s. says it could not have happened without his knowledge.

prime minister shinzo abe and the boj push for corporate's to boost wages. formberg's senior editor "daybreak," brian fowler, joins us now. what is the just of the prime minister's comments? -- what is the just -- what is the gist? something prime minister abe has said for years, asking companies to reciprocate by boosting wages in hopes that would support sentiment and lead to a positive cycle of consumption leading to increased output and increased output leading to increased economic growth, which, in turn, would keep the cycle going with better spending. companies have not responded very well. this year, the wage hike negotiations came out with an average 2%, 2.1% increase in wages, below the 3% needed to boost inflation to the 2% boj target according to economist. prime minister abe did point out that the last time tokyo hosted the olympics in 1964, the average wage hike was 12%. i don't think he is aiming for that this time around, but he would definitely like to see companies do a little bit better in the spring. close we are nowhere near to the cpi t

the boj saying we could see a sizable impact on the measures announced last week.says it would boost the economy 1.4 percentage points. last time we saw fiscal measures in 2016 couple we saw the forecast being upgraded to 1.3%. joe: help me out a little bit. i always get so confused about where they are with the stimulus. we talked about this recently, consumption, that there was a talk of minor stimulus that was not expected to happen. it feels like abenomics is sometimes it works, sometimes it doesn't. shery: this is a major package we have not seen since 2016. we saw the last tax hike five years ago or so. but its choreographed did not really help in terms of the impact on the economy. we are seeing all of these including monetary easing, fiscal stimulus measures. but, people saying, the structural reform ticking place fast enough. of course, we are talking about female labor force participation, corporate governance, and a lot of aggressive measures. they are saying, this is the part that has been most disappointing. romaine: what does this mean for the boj? sh

does this take the onus off the boj at all? paul: i am not sure it does. still think they have got to be very focused on continuing to provide that environment so the japanese economy does not grind to a complete halt. talking about growth protections for 2020, .5%. the imf suggested they were looking at a figure of .4% for japanese growth for 2020. that is really near the economy, just stopping in its tracks, and as paul was saying, we are going to likely see a contraction because of the sales tax increase in the final quarter, so the boj has got to be there. nejra: there is a difference between stopping and economy grinding to a halt and actually feeling growth and inflation. how do the authorities, whether it is the central bank or the government, do the latter? paul: it is the challenge we talked about in terms of conventional and unconventional monetary policy. as you just pour more and more money into the economy, it seems to have less effect, so it is becoming harder for the boj policymakers to do anything that's actually going to have a really posi

let's start with the boj.ed to do anything, but what could they signal that would tell us something about what they are thinking for 2020? not -- there is a lot going on. the impact of the sales tax is starting to show up. the is consumption side -- internal story has been weak, red effect -- reflected in the manufacturing side. all of this would suggest more support is needed but the pendulum is swinging a bit. we have them rolling out this big fiscal package. if the government plans to spend more money it would take pressure off of the boj to have to stop -- top off its own stimulus. so we have inflation numbers, that will show a bit higher, the consumption task. the boj will probably stay where it is and point to the government to do more. it will be interesting to see what the takeaway from the china-u.s. trade agreement and the u.k. election has been because the boj has been flagging brexit among their worries. there could be a modestly better tone from the boj. what about the other three central banks? i

in june, the boj governor told kathleen hays that even after years of massive stimulus, the boj still policy ammunition left to counter a downturn. >> the economy as a whole is doing well, but there is suffering so that local banks faced with this trend, so we -- degrading trend. we might have either of the two potential risks, but at this moment, the situation is sustainable, but we have to carefully monitor the situation. if we continue our control, and even if we expand our strengthen the monetary easing further in case of need. >> so you say you are willing to take on the rising costs of this stimulus if you need to do so to stimulate the economy and keep inflation going? >> yes, but at the same time to avoid that side effect. you may combine various monetary tools to reduce that potential side effect. >> it sounds like an interesting recipe. so many central bankers are saying they have ammunition and can do more. china has made that clear admits -- amidst the trade war. chairman powell said we can do it if we had two. mario draghi last week. could cut the negative rate further or

we see a lot of action out of the boj. how far can this go? next year, we expect major central banks to -- $1 trillion. it is less than what we have seen on average in the past 10 years. there is some kind of easing fatigue. you see that in the u.s. and the euro area. the general perception is that central banks have to do more. dramatic because the fed went from hiking to cutting rates. one trillion looks like a big number. i don't think the impact on markets will be anywhere close to what we are seeing this year. matt: what will the impact be in terms of bond prices or moral hazard? does that concern you, when the fed -- when the ecb gets back into markets on an open-ended basis? , the what is concerning markets are getting addicted to this. time of abnormal monetary easing, this will end up being too much risk-taking. it is something that you may not see right now. you may see it in the future. that would be very difficult to reverse. there are some downside risks for this long period of easing. here is more of the same. the only difference

engine, kathleen was told that even years after massive stimulus, the boj still has measures to counter downward -- from theing local banks so , so weith this trend .ight have potential risks we have to carefully monitor the if we continue to have control and expand our quarters and strength in the evening further. are willingse, you to take on this risk of these rising costs if you need to do so to stimulate the economy question mark >> yes, but at the we may combine various [inaudible] potential side effects. >> at sign -- sounds like a very interesting recipe. haveare saying they ammunition and can be more. chairman jay powell has said we can do it if we have to. could cut the negative rate further if we need to do so, but i wanted to come back and you do or about what boj can maybe we can do something else. do you still have the capacity to show all those people that you can do something big, even something new? >> it is for options. further increasing the amount of committeend further to increase the monetary base and so forth. options, i think we can still utilize if necessary how

the boj is out of ammunition.g this debate about the central bank and fiscal policy. it is fiscal dominance. the bank of japan is linked with the fiscal authorities. unlike europe or the u.k. or the done japan can get things in a very fast and pragmatic way which is what prime minister abe is doing. it is very important because monetary policy, you cut interest rates, stuff is supposed to happen. with fiscal policy, you know where the money will be spent. it will be for good use in japan. kathleen: i want to share breaking news on the third gdp number coming in stronger than forecast at 1.8%. it is the annualized quarter over quarter number from 0.2, the estimate. we are getting the current account balance coming in. 1800 ¥16.8 trillion. that is up from the previous month, showing some improvement as well. course withion of the gdp number is it would be driven by investment. business spending was up 1.8%, previously 0.9%. a one quarter wonder? it is very interesting. it is not a one quarter wonder. this is a key p

one member saying a range could weaken the boj's commitment. theyember also saying that can be optimistic about the outlook in japan. of course, we continue to see downside pressure for the japanese economy after that sales tax hike. as a member saying they need to keep monitoring the side effects on banks. this talking about the ultra lose policy prompted by the bank of japan. unchanged inicies december as well. they have the short-term policy rate at -0.1% for the 10 year target around 0%. the japanese yen at the moment, stronger against the u.s. dollar by .1%. we have seen the japanese yen within a range in the holiday season. overall, it has been a banner year for stocks and 2019 globally. our next guest questions whether it can continue. he joins us from san francisco. great to have you with us. a very different end to 2019 from what we have seen in 2018, right? the key question seems to be can this trend continue in 2020 if, for example, the market is a forward pricing mechanism? are we supposed to expect earnings growth perhaps next year

the majority of economists think nothe boj's next move will be adding stimulus, it will be taking itway in 2020. decision, no surprise. the key interest rate at .3%. the vote is 7-2. they see inflation slowing. and they see the bond purchases unchanged. they do say it is too early to judge the impact of the election and trade war. no big surprise. >> this was pretty much as expected. the key will be to underline uncertainty about the outlook for the economy, even though we have the clear conservative victory in the election. even though we know now brexit is going to happen, there is uncertainty about what kind of brexit it is. the most important one probably short-term is we don't know what the policies of this government are going to be, the fiscal policies, in particular. >> boris johnson in parliament announces the agenda for the u.k. after it separates from the european union. >> it's not the british people want brexit down, though they do, they want to move politics on and move the country on. >> his main message was he's going to get his brexit agreement through parliament, mo

how much market pressure is japan or the boj getting in order to move? izumi: considerably less.are referring to is market operations. they were in a pretty tough spot back in august when they were basically losing control, yield curve control. now, we are back to the midpoint of the target which is a good place for the bank of japan to be. i think they would like the curve to steepen more but they are not in a rush at this moment. paul: you are suggesting it is time for strategic review for the bank of japan. what needs to be addressed? izumi: there's a lot of things that can be addressed. gave pretty specific advice for the bank of japan. we don't think all of them are realistic for the bank of japan to follow in the near term but one thing they should address in the near term, perhaps in 2020 is the issue of their communication. there's a lot of confusion as to what the bank of japan is targeting. the still have quantitative targets intermixed with the interest rates targets. they will have a challenge in 2020 because of they do continue reducing bond purchases, they may have

cutting rates into negative territory remains an option, but the boj is paying attention to the side effect on banks. >> they kept the key policy doves the same rate. the key is negative. -.1. you have the yield curve control, the 10 year jgb anchored at zero. a range at that level. right now, a big shift. the majority of economists think in the boj's next move will not be adding stimulus, it will be taking it away in 2020. >> the boe decision, no surprise. the key interest rate at .3%. the vote is 7-2. they see inflation slowing. and they see the bond purchases unchanged. they do say it is too early to judge the impact of the election and trade war. no big surprise. >> this was pretty much as expected. the key will be to underline uncertainty about the outlook for the economy, even though we have the clear conservative victory in the election. even though we know now brexit is going to happen, there is uncertainty about what kind of brexit it is. the most important one probably short-term is we don't know what the policies of this government are going to be, the fiscal policies, in

and boj. >> boris johnson will appoint top ministers to his cabinet later as he pushes ahead with brexit, and bolded by the historic majority he won last week's elections. >> saudi aramco's shares advance again ahead of the inclusion and major international equity indices this week. the world's most valuable company has gained 17% since the debut. it is 8:00 a.m. across the emirates. i am in dubai. >> i'm tracy alloway in hong kong. i mentioned the yuan strengthening on the back of the stronger eco-data and on the back of the agreement between the u.s. and china on a phase one trade deal, finally. take a look at the offshore rate, about .99% this morning. i should mention the fix for the onshore rate came in stronger, the strongest since august 6. the developments will give enough confidence to chinese corporate's to refrain from adding to their dollar stockpiles for now, so that's when we sin -- reason why the chinese markets are strengthening. let's talk about another key asset on the move. rent crude is down about one third of a percent from a three month high. a little bit of caution

we are also getting on friday industrial production data in the boj's survey.et's ringback the chief global economist. thank you for sticking around. talk about japan because the economy is very much under pressure at the moment. we have seen the fiscal measures , the package of $121 billion coming from the japanese government. how much will this help? bob: i think the fiscal package will certainly help. you have to keep in mind that a lot of macroeconomic data in japan is pretty volatile. we saw that with third-quarter gdp when it went from seasonally adjusted annual rate to .4% to 1.8%. is of the key drivers investment. japan,look forward for keep in mind it is part of the global economy. think about what the global economy is doing. i mentioned in the prior block that i think we are seeing more momentum out of china and out of the u.s. expecting, for several months now, the u.s. and global economy to pick up a bit as we go into 2020. we are also seeing a little better data out of southeast asian countries. south korea, taiwan, singapore. technology orders te

the ecb or even the boj.the leap is once we have one central-bank making matt, you see the ecb following and that is the broader picture it i don't buy it, to be honest. i think this is a very special case in sweden. i don't think it has any direct implications for what the ecb will do and certainly not what the boj is going to do. nejra: great to have you with us for this hour. peter schaffrik. that is it for "bloomberg daybreak: europe." the european open is up next. we start monday fairly muted in terms of the equity trading front. this is bloomberg. ♪ g. ♪ [ dramatic music ] this holiday... ahhhhh!!! -ahhhhh!!! a distant friend returns... elliott. you came back! and while lots of things have changed... wooooah! -woah! it's called the internet. some things haven't. get ready for a reunion 3 million light years in the making. woohoo! -yeah! >> good morning welcome to the european open. i am anna edwards aside matt miller in berlin. a health check. pmi data do across the nation. futures solidly higher. ♪

there has been criticism for some time that the boj has put much run the course in terms of what it can do for japan's economy, so economists had been saying more had to be done on the fiscal side. this could help offset a recession. the economy has been hit by natural disasters, by weak exports, and there's a feeling that this money may endure beyond the 202011 picks in japan olympics -- the 2020 in japan next year. -- and fresh spending that is leaving markets and impressed. there's also a new consumption tax being rolled out in japan. clearly when you have new consumption tax coming at the same time as fiscal stimulus, the two will work off of each other. there's a view that it is positive. it is a positive step by japan's government, and probably reflects a broader shift globally for governments to start spending more, but i think a few economists really think all of the pressure is off of japan's economy in the near term. alix: thank you very much. great analysis on that. we turned out to india, where the central bank defied all forecasts and left rates unchanged. the decision come

with the boj

they are looking at the boj, people saying why don't you do more?ealistically speaking, there is not much more they can do. the leverage of policies is shifting away from monetary to the fiscal level. erik: japan has been at the forefront of policy experimentation, massive fiscal stimulus, debt monetization, negative interest rates. is modern monetary theory the next step? should it be the next step? kathy: that has been the buzzword in japan over the last couple of years. people trying to find ways to rationalize some of these very highly experimental policies that japan's central bank has pursued. at the end of the day, i don't think anybody in this country, at least in the policymaking sphere is naive enough to believe we just create this new economic concept and wave a magic wand and it will disappear. we have a lot of debt. the population is aging. there is not enough people to pay into the system. the expenditures are blowing out of proportion. give.ing has got to the reality is the government is recognizing this as a pragmatic reality. how ar

to talk to hampton, but he immediately goes to the open passenger door, beating the cops with the bojstle. >> it is a deadly weapon. >> reporter: he is charged with assault with a deadly weapon and assault on a police officer. then the officer driving jumps out, fights with hampton, and the chase is on. critics say it wasn't about public safety but paypack, and perhaps panic from the two young officers. the injured officer can be heard weeping and regretful on the video. he went home from the hospital the same day. >> this is not a contest about who was hurt worse than who. there's a legal definition for great bodily injury. >> reporter: listening to the family of half top who raised him in foster care. >> reporter: also showing how pepper spray was used before he was shot. but the officer seems to admit on video that he accidentally sprayed himself. hampton was in a recovery program. his supporters say he was in a mental health crisis and needed to take time and distance. >> there was the thought that he might be paralyzed as a result of the shooting. is that the case? you mentioned h

boj, indonesia as well. scarlet: bank of england as well.urse, now they have a new wrinkle to deal with after prime minister boris johnson put in place this idea that they will come out of this situation with or without a trade deal. romaine: coming up, we talk about trade tensions and clinical risks. this is bloomberg. ♪ with i'm mark crumpton bloomberg first word news senate majority leader mitch mcconnell is setting a course to quash democrats attempts to extend the impeachment trial of president trump by calling new witnesses. leader mcconnell is pushing toward the goal of a swift trial that ends in acquittal. the leader criticized his colleagues call for testimony mickof chief of staff mulvaney and john bolton as a fishing expedition. schumer responded this afternoon. >> this is a political process. there is nothing judicial about it. the house made a partisan political decision to impeach. i would anticipate we would have a largely partisan outcome in the senate. >> anyone in america watching this would draw the same logical conclusion

here we are at year end, the most the boj has done is tweak its forward guidance.ght that in hadn, the central bank that , that would be the least active through the year would be japan? shery: dan moss there. coming to the ceo whose startup has a half billion dollar valuation. ♪ haidi: this is daybreak asia. shery: singapore-based finaccel which extends credit to customers in indonesia raised $90 million of expansion capital in a fundraising round. joining us now is the cofounder and ceo, akshay garg. tell us about the indonesia fintech space. and what you -- what made you successful. akshay: thanks for having me. indonesia, where do i start? we are talking about one of the largest opportunities in this part of the world. 250 million individuals, 70-80,000,000 individuals in the middle class, significantly under banked. we are talking about a country where less than 10 million individuals hold credit cards, less than 2 million have life insurance, less than one million might have a stock r.o.e. ridge account. this is a country which has a very large and fast-growi

the boj survey says sentiment , highlighting 520 concern about -- plus five to zero, highlighting concern the optimism. there are as many industrial pessimists as optimists. china'se signs that stimulus measures might be working. sales of construction equipment jumped more than 20% last month, double the pace of october. excavator and heavy truck sales are strong indicators of infrastructure investment. beijing has targeted construction to boost growth, setting aside more than $100 million in special bonds for building projects. six bodies have been recovered from new zealand's white island four days after tourists were engulfed in a volcanic eruption. two more victims are thought to be on the island, but have yet to be found. another operation will be launched to recover them. the operation was delayed due to fears of another eruption. scientists warned that volcanic activity has increased and the island is highly volatile. valuationco touched a of $2 trillion briefly on day two of the listed company, finally meeting the kingdoms desired target. it is a point of pride for riyadh and come

the boe and boj announcing their weight decisions on thursday.eminder, subscribe to our weekly podcast on itunes. you are going to find all the best content each friday to enjoy over the weekend. from new york, this is bloomberg. ♪ ♪ >> i am taylor riggs in for emily chang. this is "bloomberg technology." tech stocks on the move. china and the u.s. agreed to phase one of a trade deal. that includes intellectual property. plus, tensions. the strength continues to flare between alphabet employees and management. we will hem

central-bank policy, the balance sheet extension, which is taking place with fed, with the ecb, with the boj, the pboc at some point. stay in. if there is any actual shortfall because of the outcome from the trade negotiations, probably more -- [indiscernible] see you.david, good to do you think there is a problem with dollar liquidity? david: well, we know that some if you're the u.s., talking about the u.s. trade market overall, and the u.s. dollar in some parts of the world, yes, there is some tension. we clearly see in the high-yield space, currency denominated. but the good news is that those signals are well identified. a know we are at the end of cycle and you see the weakest players, the weakest borrowers. i would say there is no major surprise. and this is where investors, overall, should be actually focusing on quality. while maintaining quality have to be able to generate yield in return. so, talking about a shortage in u.s. dollar assets, yes, that is the case but it doesn't, it's not so much different from the previous cycle. again, you know, the fed is adding more liquidity eve

away from the federal reserve they'll be an interesting story to see how does the ecb respond and the boj. there a lot of voices coming from the ecb saying negative interest rate policy does not work. it is not effective. it will be interesting to see how the central banks respond to that and how the market adjusts. david: it could put pressure on the federal reserve for further cuts. maybe not as big a differential. the economysee how does from a u.s. standpoint. these were insurance cuts. this would offset any potential weakness in the upon me. let's see what happens now. i think the market is still anticipating they will be on hold for the time being. a lot of the attention for the fed is going to be on the balance sheet and on reserves and what they end up doing for the repo operations and treasury purchases and some of the other minutia of their policy. david: thanks a much to alex. alex has been on 24/7 duty with this repo thing. now we turn to carlos ghosn, the former head of nissan and renault facing trial in japan that has fled the country. bloomberg stephen engle reports. stephe

domestic investors may be cautious given they are worried about selling back to the boj. on the mexican peso which went at a two-week high on the hopes of a usmca deal. a move towards 19 could be possible. paul: all right, thanks. still to come in the next hour, the outlook for china's corporate debt sector amid a record number of defaults. fiona singh joins us. this is numbered. ♪ beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. pan asia'smorning major have just opened for trade -- good morning. asia's major markets have just opened for trade. welcome to daybreak asia. paul: our top stories this tuesday, the next nafta moves a step closer. top democrats say nothing has been agreed to yet.

look elsewhere, we don't see other central banks have negative rates, meaning the ecb look like j -- boj because of criticism. from has been criticism germany and german banks about the negative interest rate policy but they seem to be standing pact. the economic conditions in the euro certainly don't warrant any monetary tightening at this stage and largely the same for japan. sweden is likely to be a case that is not repeated elsewhere in the foreseeable future. the: what do we expect from bank of england and andrew bailey this coming year? david: the bank of england will be a bit like the fed and ecb. will probably be on hold for most of 2020. been u.k.., we have leaving the eu at the end of january, and there will be a transition in place, and that is good news for the economy. that should reduce some of the uncertainty related to brexit that has been weighing on the --nomy, but there is a still still a trade deal to be negotiated by the end of the year and in the face of that uncertainty, the bank of england is likely to leave monetary policy on hold, at least until the end of 2020.

demographic, the entrenchment of lower inflation rate expectations and low growth, hence policy from the bojvernment largely unchanged or ever getting more expensive. what are we missing in terms of the opportunities for growth that clearly you guys to by starting this fund? >> you are absolutely right. that is the backdrop for japan and has been for quite some time , but like i said, in the new world, i think that is what we can expect. economies are generally struggling, rates continue to be low, and in that type of area, real estate is a huge and officiating. the main reason we like japan is we tend to focus in the two big cities -- tokyo and osaka. those still have positive fundamentals, and i mentioned earlier, the yield difference between what you can get from the gdp and japan and commercial real estate is quite attractive. it's really that ability to deliver consistent income over the near-term and midterm that makes this particular product attractive and also this market attractive. the last one i would add is japan being the third largest economy in the world and one of the largest

the boj's policy of negative rates, dovish outlook has helped that perception. period of relative stability for the japanese economy. the government has announced a fairly aggressive fiscal stimulus and we have the construction work going on ahead of the tokyo olympics, all of that painting a constructive picture for the outlook next year in the first half of the japanese economy. that is coupled with the view that the boj is at rock bottom of its easing cycle. easing cuts or further measures are expected at this stage, so this may lead to a situation where we could have some unwinding of dollar carry trades funded in the japanese yen, with the yen similar to the euro looking less attractive funding currency. yen, we have seen japanese euro rise this year. that people use to judge risk. yen andstrength in the the euro against the dollar, but how do you see the yen-euro pair laying out in 20 -- laying out in 2020? valentin: the way the market is positioned, it is short euro and yen, but that is coming from a period of heightened geopolitical tensions partly becau

[indiscernible] boj should consider the negative impact of policies. into the of the japanese banking sector. .et's get analysis good morning. let's start with size and scope. what is the intended impact of this package? i would put the desired impact as threefold. number one, they will try to .void an outright recession the economy will shrink this quarter because of sales tax hike imposed last month. fixing its owns goal. you want to prevent a recession. number two, they want to seed a feel-good factor in the run-up to the olympics next summer. there is talk of the potential election, and the prime minister abe would love to get another four years for his liberal democratic party in the lower house. potentially a political motive. number three, a lot of stuff needs fixing. we had a big typhoon in october. movie "spirited away" will remember rivers are paved in cement, and levees were busted because of the typhoon. they have to do fixing up around the country. why is the ceo so relieved about the move? >> because it is taking pressure off the bank of

the rix bank in sweden said no mas to negative interest rates we heard with the boj. hearing with this the fed who started this globally. zero interest rates are not working. and we hear central banks making this plea ner trying something ultimately that pushes yields higher. >> i want to make one point. your point is when the fed cut interest rates july 31st 25 basis points they fixed the inverted yield curve and did it two more times who the heck knows what was going to happen there on out the market was getting killed that day because of the new tariffs. that combination was a weird situation. the point was 12 to 18 months when you get the recession on average in the post world war blah blah whatever who knows what the market does between inversion and inception. >> we'll wrap it up. number one a good lesson to viewers and listeners that one indicator dos not a market make. the swedish rix bank said no more in swedish. lets bring in tom lee coed founder and head of research at fund saturate global advisers. released more 2020 outlook, this morning bullish, tom. >>

theo not get the data, december froms of the fed, the ecb and the boj, they are increasing again.e a tailwind into the new year. anna: thank you very much, mark cudmore, bloomberg mliv managing editor. you can get involved in our question of the day, how involved will central banks be in 2020? up next, we look at stocks to watch including u.k. banks as the bank of england plans to lift a key capital demand the biggest u.k. lenders after they all pass the stress test. bloomberg radio is live on your mobile device or dab digital in the london area. tune in. this is bloomberg. ♪ anna: welcome back to "bloomberg markets: european open." consolidation after recent gains expected at the start of the european trading day. where will we go after? let's get a first word news update from hong kong. >> tensions remain high across india as protests continue against the new citizenship law. five days of sometimes violent demonstrations across the country. undocumentedans muslims from certain countries from seeking citizenship in india, let alone documented migrants from other regions. on a lan

-china trade deal, also the slashing.so the boj we saw the yield at -0.3% and that raised questions aswhether the central bank had to tweet their policy tools. we had another federate cut. growth.had annualized nomura saying this climbing yields may not last because we may start to see investors snapping up bonds that no longer have a negative yield. thes: lovely rounding up big move on the day in the market. health service funding has taken center stage with boris johnson having an akward encounter with reporter. a picture of a child forced to sleep on the floor of a hospital due to a shortage of beds. still with us is charles-henry. the imagery of jeremy corbyn, the ongoing daily battles in the polls, i sort of jokingly set at the start of the show that i must be an utterly good contrarian at the top of sterling. if it is a substantial majority as opposed to just for the tories, how much more upside is there in your sterling, sterling-yen? about the cable. majority, case of which you needed to break the deadlock in brexit, then a move toward 1.35, 1.37 is possible. let's not go too f

financial crisis that shows the size of central banks' balance sheets, the boe is not on here, but the bojcb in blue, the fed in white, we're looking at all-time highs. does that worry you if there that big of a buyer? bob: i don't want to fight it, for sure. and i know there's a lot of debate about the $60 billion in short and purchases the fed is making. we find that it's just taking supply out of the market. it's causing short and investors to extend out the curve, as they do, people in the intermediate part extend out. you go into credit. it all works great until you have a recession. then government rates, lower. that puts credit spreads at risk. right now, it's the old cement environment. anna: bob, thanks very much. he stays with us. of next, we talk about oil. in viennalive once again for the latest. that's next. this is bloomberg. ♪ anna: let's get back to vienna, opec meetings taking place. manus cranny has a guest. manus: good day to you. second analyst of the day. let's make sense of this. it's bob from rapid and energy. good to see this morning. it's all about the base. but it

the boj kept rates on hold, but the market expects most central banks to push down in 2020.fund manager, henderson global investors is still with us. currents ins central banking. we have the risk bank story showing this move out of negative rates. dataset for one year out. we are expecting in europe and north america a lower interest rate picture a year from now than at this point. that is not what the fed or the ecb is saying openly. what is your expectation for the global narrative around central banking? anticipations an you will have easing going forward. rates are already at historic lows. if they go 75 to 50 basis points, that will have an impact on what happens in markets. what will be interesting to see the discussion about the fed before, a shift away from the theation target, and discussion around fiscal policy. mario draghi, when in charge of ecb, was clear when he spoke to the press that monetary policy has its limits, and governments need to come through. you may see monetary policy accommodative. movesi have a chart that -- that shows a move and they are finis

start to become relevant and people care about will be the next recession the fed and the ecb and the bojre fighting the -- an economic downturn with everything that they have. and they've been able to forestall it but they can't forestall it forever. and when the recession comes, the debt to gdp will be so high, as i said earlier, that interest rates left to their own devices and market pricing, would go up on the long end. i think fairly substantially so that's -- we have to wait for and the reaction to that will be some pretty shocking policies. i mean, we've seen shocking policies already through qe and negative interest rates and the like and now, we have canada talking about free money andr andrew yang's made the debate stage for the seventh democrat and his one policy is free money to people and i think that will ultimately be the way out of our indebtedness and that will cause inflation, i think, once we get there so tips, yes we like tips tips have done okay this year. i think inflation is being encouraged higher by the fed we'll probably hear rhetoric from jay powell in a short

the bank of japan, boj, also held, with governor here hugo kuroda -- kurdo echoing his colleagues innk the government's economic and stimulus passage is appropriate and the yield curve controls are quite significant. i see this as a positive policy mix. flynasa's plan to americans on american spacecraft faces a test as boeing prepares to test its starliner rocket. it will make its first trip to the international space station from cape canaveral. nasa has relied on russia rockets to reach the iss since the space shuttle retired in 2011. finally, the movie "black panther" is back in the news with the u.s. department of agriculture listing the movie's fictional country wakanda as a free-trade partner. the online tariff tracker shows a detailed list of goods the u.s. and wakanda apparently traded, including ducks, donkey s, and dairy cattle. the fictional country was removed from the list after questions were raised in the media. that prompted the joke that the u.s. and wakanda are now in a trade war. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more tha

we have a boj policy meeting this week.berg expecting policy unchanged after prime minister abe implemented the $120 billion of fiscal measures. take a look at how other markets 0.1%.ading, kospi around the korean won fluctuating in the previous sessions. trade tensions easing, but the korean won kept in check by north korean geopolitical sessions. back.0 gaining we have seen it touch record highs and today's session. we get the rba december meeting minutes in half an hour. 0.4%, risingaining for a second session. let's get first word news. regularng extended, session late trade, agreeing to halt production of the 7 max. a move that will deepen [indiscernible] u.s.ipple through the economy. almost 400 planes are in storage. boeing accepts it can no longer turn out the max at its current pace. u.k. prime minister boris johnson entertains a lot to guarantee no extension to the brexit transition phase, setting up new fears of no deal at the end of next year. he plans to deliver on his election promise to ratify a free trip --

that's the next thing to watch when it comes to the fixed income space in japan, given the boj hasn'tere's is also the fiscal package announced this week. we'll see if that plays into the rise in yields we've seen for the little part 2019 has. haslinda: zero being an attractive bond. sally around raised $25.6 billion in the world's largest ipo, relying heavily on local investors. the most profitable company at $1.7 trillion, somewhat below the kingdom's original target. asia's energy reporter joins us from singapore. didn't meet expectations. guest: if you look back at when they launched this, they were looking for $2 trillion valuation. obviously, the numbers were short of that. that was several years ago and the ipo has gone through a lot of ups and downs. at the end of the day, then being able to say the world's biggest ipo ever, now the most viable company, they are going to feel pretty good about it. yvonne: and the expectations from what we saw now versus 2016, when prince mohammad bin salman floated this idea is so different now. is this really going to be a retail driven type

one rs watching boj in the to 10-year zone. -- edging hi of of 1%.mpanies are looking to outperformance s in 2020 while australia is set be the laggard in that space. build on ng shares thursday's gain led higher by resource players after the in two weeks sparked by retail sales but the a rency is set to snap four-week drop. let's check in on oil prices this morning. wti, just heading slightly lower here after a olatile session with markets not too impressed by what's being seen as a symbolic deal opec. boston, this morning, nudging slightly higher trading at $63.39 per barrel, paul. news let's check in on the with jessica summers. >> thanks, paul. speaker nancy pelosi is demanding a fast vote to mpeached president trump with the process potentially concluding before the christmas holiday. hold him ongress must accountable for what she called his profound violation of public were saying the facts uncontested and that the president has abused his power benefit.onal president trump says the democrats "have no impeachment case." >> the u.s. state depart

we are seeing dwindling demand on the short end as expectations fall for more boj stimulus in light of shinzo abe's spending package. we are seeing aussie 10-year yields rising for a third straight session. are holding steady ahead of a sale later monday with the supply frontloaded. you have a u.s. 10-year yield holding at 1.84% this morning. paul: sophie, checking on the first word news now. >> we start with the latest opinion polls in the u.k.. all of them give boris johnson's conservative party the lead, just four days ahead of the general election. brexit is expected to be top of the agenda as people vote. those opposing the exit from the eu are now urging a tactical vote against the tories. backing the candidate most likely to win a seat. the prime minister has warned that complacency is the main threat to a conservative victory. can the u.s. -- to the u.s. and north korea. president trump is downplaying recent missile test in north korea, saying kim jong-un is too smart and has too much to lose if he acts in a hostile manner towards the u.s. he tweeted after kim's envoy to the u.

we got the boj, the riksbank, the boe, as well as norway.er tchir, academy securities head of microstrategy -- of macro strategy, and diana amoa, jp morgan asset management senior portfolio entity. why does no one care? peter: i think they will start to care. equities have not done particularly well. i think higher yields are going to impact that. people have been to bullish on bullish.s, too i hate negative rates. i think we are going to get a little more growth. using long dated treasuries as a hedge, think that is going to be a bad decision. diana: i see it more as a pause in easing. we come from a period of having very bad growth across the globe, and things are starting to look like they may be bottoming out. i think central banks are being prudent in taking a wait and see approach. we are not bearish on bonds. we think for longtime investors, having duration still makes sense. that so for you, you feel investors are too much into safety and too much into the long end. diana, you think we will get some kind of central bank easing or sup