and wihether to accelerate the abenomics or whether we should go back. this will be the biggest issue of the upcoming upper house election. i am determined to lead an implement the agreement at the ise-shima summit, meeting as a host nation. to shoot the three arrows of abenomics with all-out force once again, i am determined to take comprehensive and bold economic measures once again this autumn. the most important thing is to implement a reform to rouse private investment which generates future growth. i will aim for early effectuation of tpp and create new investment opportunities by spreading to the world a fair economic zone such as japan e.u. or epa which is evaluated highly. i will utilize the zero interest rate environment to rouse the bold private investment which looks into the future. also, with new low-interest rate loans, we will mutt in place 21st century type infrastructure, we will implement earlier the maglev and by accelerating the new shinkansen bullet trains we hope to create a regional recreation corridor which would create one econo

opposition party members cannot open their mouths without criticizing, all they say is abenomics has failed. this fight is about whether to advance or retreat. are we going to vigorously push forward abenomics to see japan grow and each region prosper to create a country where everyone can feel the economy is picking up, or will we go back to four years ago? are we going to return to that dark and sluggish period? this is the decision you are making in this election. we'll bring the abe administration's reckless drive to an end and change the political landscape. if we allow the parties that want to change the constitution to get two-thirds of the seats, they're certain to push the changes through, especially to article 9. they want to allow japan to exercise the right to collect a self-defense without limits. we should not allow the japan-u.s. alliance to be forged in blood. many young people are not seeing their salaries increase, and they're giving up on marriage, even paem in theeople in their 40s. it's a reality in japan. the government needs to develop government and a fairer d

. >> translator: abenomics is achieving results, although it's still a work in process. i'm sticking to my fundamental position that we can't achieve sound government finances unless we revitalize the economy. >> translator: it's obvious that abenomics has reached its limits. my party would change the policy and make the economy grow and distribute the wealth. >> candidates will chase 121 seats and try to win support from the new pool of younger voters. the lower voting age means another 2.4 million people are on the electoral rolls. >>> japanese foreign minister has launched a protest with china over its continued natural gas developments in the east china sea. the move comes as talks remained stalled on an agreement to jointly develop gas fields there. the ministry released aerial photos on its website showing 16 structures built by china. officials confirmed the construction of an additional facility is under way at one of the structures. >> translator: it is utterly regrettable that beijing is unilaterally going ahead with development of gas fields in these waters, d

abenomics is a failure. it said the economic policies will correct that gap and vows to create more subsidizes for human resource, development, and research groups. the party also says it's against amending article ix of the constitution which reannounces war. it will demand the government revoke national security laws passed in the diet last year. it allows us to come to the aid of countries that have a close relationship with japan. former governments had said the constitution forbids that. ldp's junior partner said it aims to energize the economy so households feel the benefit. it nows it will implement a consumption tax -- for various goods whenever the tax hike takes place. the japanese communist party will put a stop to what it calls abe's reckless politics. it pledges to repeal the national security laws and cancel the planned consumption tax hike. initiatives said constitutionals are necessary to reform japan's governmenting system. it wants to make education free including university. it promises to

rishaad: an abenomics reload, saying japan is falling shy. theoined imf saying that abe has failed? >> the deputy head of the imf said this was a very serious and bad situation and they have had a lot of success. at the same time, they said they don't be the government reaching their targets for debt reduction, for growth in the economy, and they don't see the bank of japan raging at the inflation target within the timeframe they have set out. they need to refocus or redouble their efforts, one, to set more realistic timeframe's for debt, growth, and inflation. but also, to do more to achieve those realistic target. rishaad: what has the imf done to focus on this? call yesterday was that they should focus on the increasing income of workers. they are basically saying, focus on the third arrow of the three arrows of abenomics. fiscal stimulus and monetary stimulus, they have a place still, but they should only be same as support in implementing the structural reforms he promised. fullhanging how the time versus part time contracts work. he is

abenomics in japan.enoccurs at a there are risks in the global economy, so i imagine the volatility would depend on policy response, the european union response to the shock, and implyr other developments improving conditions or worsening, but volatility will probably last for a while. well, on our website how chinese tourists are going on a shopping spree in london after this vote to leave the european union. bloomberg.com/asia, a cracking read. south asia looking like this at the moment. the upside, those positive cues from wall street helping as well. that's what we have at the moment. looking like we could see a positive start in hong kong. up next line, the much anticipated about to get a boost from brexit? we are discussing that right here, next. ♪ get ready for the rio olympic games by switching to xfinity x1. show me gymnastics. x1 lets you search by sport, watch nbc's highlights and catch every live event on your tv with nbc sports live extra. i'm getting ready. are you? x1 will change the way y

tom: is anybody saying outright that abenomics is a failure?indicating -- or a lot of people are indicating that it has failed in certain ways. the economy has been going between contraction and very slight growth, wage gain is nil, and the consumer prices are not rising. so the promise of those gains , althoughe would see it is rising, it has not taken effect. abe himself made the case tonight that he will live in another push in the next 2.5 years before he raises the sales tax in 2019. we will see. we did not get many details, but we did get tantalizing statements about what might come and also in the fall. any clues about what he's talking about there? about investing in childcare and elderly care facilities. childcare here has not had as many -- as much investment as many people would like. rapidly aging population, elder care is going to be needed. that was an interesting, kind of tantalizing item. he did not talk about the fiscal stimulus everyone was waiting for. we were waiting to see a number. we did not see a number on that. he just

a new blow for abenomics. global news 24 hours a day powered by 100 50 news bureaus around the world. you can find more story on the bloomberg at top go. mark: the opec meeting in vienna. ryan chilcote is there. good morning. what do we know? we're actually inside the opec meeting. i'm actually standing next to the nigerian oil minister. let's listen in as the meeting gets underway. there he is speaking with reporters. minister, live on bloomberg, what would you like to see come out of this meeting? >> a unified conclusion. there has been too much -- the divisions within the opec. opec body. we would like to feel that we are cohesive, we are united. we cannot agree on every issue, but at the end of the day, -- the collective position. ryan: to get that unity, do you need to see a production target? >> not necessarily. doubt that is the major focus right now. i think somehow the market is -- a matter of natural forces. a lot of natural calamities and militancy issues out of nigeria. talking about the rest of th

abenomics will be strained by that rise in the yen.onomies like singapore exposed to these tectonic shifts, economic and political issues, they will be exposed. optimismhere is more for places like india, which see more stable, certain, strong leadership, and a more united country, so it is a complex picture from an asian point of view. >> tell me from your heart how deflating it is. you spent years in brussels, advocating for eu affairs, so what does this all mean, the unwinding of all the progress? >> it is very emotional and very personal. i began working with my constituency when i was 17 years old in the european parliament. i worked the early part of my professional career in brussels. family andt my friends, i see a division emerging between those that voted remain and those that voted leave. not underestimate how meaningful and significant this is to the british people. montagu's -- parliamentarians and royalists, this is a significant moment for all of us. xenophobia,at the in many ways i am ashamed by what i see. i know many

really quite an abrupt blow to the fiscal side of abenomics. how will japan respond?the prime minister's announcement? >> first of all, i would expect , tom he will do pretty well in , the election next month. we don't know yet, but we think he is going to call a double election, so that will be perfectly timed. notice what he is saying here. a few months ago, he was saying he would not postpone the sales tax hike, unless there was another lehman-like event. now he is blaming the world economy. he is saying the world is at risk. not japan. japan is doing fine because of abenomics, but the external economies are at great risk, so he has to do this. tom: i do not need you to give me your opinion as an economist but when i look at the data, i , have trouble saying that japan is doing fine. which is it? >> oh no, you are right to not see it there. this is clearly, the virtuous cycle that abe has been talking about where corporate profits rise, and then that leads to higher wages and that spurs more consumption, that is not happening. this is his attempt at kickstart ing t

so -- no yeah i think there is a clear, clear shift in abenomics from abenomics one to two. we're back with easier fiscal policy and to that degree the focus isn't on monetary policy. maybe the right way to say is monetary policy is now on hold and reactive rather than proactive. >> the dollar though has also risen way too much on expectations ahead of time. are we going to remain range bound? are we going to break out of the range? we have had a run up? >> we're not going break out of a range today ahead of tomorrow's numbers at least. but, you know, the dollars still comfortably 3% below january's level in real terms. so we've taken back parts of the fall between the end of january and the start of may. i think if you get solid data today tomorrow. >> the -- private sector report. [inaudible] >> exactly. then i think people will get more convinced by a rate hike in either june or july and we see will the dollar push higher. >> level for euro dollar? where is the fair level. >> i think it is moving out of 107 to 115 more months. >> thank you very much. >>> republican presid

. >> abe says the focus of the election will be whether or not he should proceed with abenomics. >>> sales in japan's department stores haven't been as strong as before. the tourists are still coming to japan. why the decline in sales? >> exactly. they are buying different things. visitors were buying relatively expensive things like brand name bags, jewelry. now they are spending money on lower price goods like cosmetics and food. five department stores show sales declined from a year before. there was a drop of more than 7%. sogo and seibu logged a 4% decline. officials at the u.s. federal reserve have released the latest report on the country's economy. many districts had modest economic growth between april to mid-may. the beige book is based on responses from businesses and other contacts in the bank's 12 districts. consumer spending was up modestly in many districts. it says large passenger cars and trucks sold relatively well due to low gasoline prices. manufacturing activity was mixed across districts. the thrj sector remained weak. construction and real estate activity gener

it is a new blow to abenomics, posting the next day april tax hike until 2019.ls from the missing egypt airplane, two after the crash and mediterranean sea, edwin down under clear skies, while flying from paris to cairo on may 19. all 66 people on board are believed to be dead. it sent seven automated distress signals before disappearing off the radar. there were no made a messages from the pilot. goldman sachs has cut dozens of investment banking jobs over the last few weeks. apparently by doing so, it is trying to join the adjusting slowdown in deal activity. this is according to people familiar with the activity. job or lost in london, new york, and here in hong kong. goldman sachs is on a big cost-cutting situation. global news each day every day, from 2400 journalists and 150 bureaus around the world. if you're a bloomberg user, just go to top go. back to you. anna: rishaad salamat in hong kong. asian stocks have fallen for a second day, as the yen weighs on japanese shares. with more on that, here is nejra. crucial of course, but general disappointment abo

he's going to be relying on fiscal policy from here on in s desperate effort to revive abenomics.om: brian fowler, thank you so much, with coverage on the knock-on effect of what we've seen this week. we talk about a global economy, and i talk about poland earlier. south korea to me is almost the switzerland of asia. how does south korea as an adjacent country to japan and china, how do they adapt and adjust to the new low rate regime? kit: they'll end up with very low rates as well. they've got a relatively expensive currency. they're very affected by the slowdown in the chinese economy. they're very exposed to any capital controls from china. and they're exposed to -- they were exposed to a stronger yen. it goes down like a house afire in seoul. the economy, it's the most changed place i visited for the last 25 years or so. seoul is a developed economy city with a fantastic education system, fantastic work place. but the economy is slowing, population is aging. they have very low savings. they have a lot in common with japan, increasingly in common with japan. francine: japan, k

investors had widespread euphoria about abenomics.stry has had the worst start since 2009. how have some of those top picks fared? yvonne: what a difference a year makes. it seems like this commodities slumped and what the fed will do and this concern about slow global growth. chart take a look at this , how bad has it been? take a look at the first quarter of 2016, $15 billion have been pulled out of some of these ones, the worst start since 2009. 2009, wempare it to the damages oflf what we saw during the global financial crisis. we have some trends we did see. among them was japanese power producers. there was a hope at this time that the stocks would advance 60% because there was an increase in tariffs and a restart of nuclear power reactors that was going to return things back to profitability after that 2011 earthquake. take a look at these two stocks in particular, falling more than 20% in the past 12 months or so. finally, a look at chinese brokerages. that was a top take a year ago. this is what we saw, a basket of the chines

there is also the fact that one of the effects of abenomics has been reducing the value of the yen. japan sales look weaker because the yen is weaker. time, i think we should not overplay the pessimism. a shrugs been a bit of of the shoulders at yeerday's announcement, but look at the last sales tax rise in 2014. japan tracks the willingness of households to spend money on durable goods. that sales tax rise in 2014 delivered a bigger blow to consumer confidence on durable goods as the fukushima earthquake and the 2008 financial crisis. the fact that this has been put off is a significant event. when you consider the japanese household is up in savings on negative rates, i don't think you should downplay the possibly the japanese consumers will go out shopping again. rishaad: great talking to you. we will check on some other stories. bhp and its brazilian parter presenting its case on the joint venture. the mine has been closed since november. it is the biggest local employer. the mayor is supporting the campaign to allow it to resume operation. free to seek new buyers for its mobile

abenomics is not , that is playing into the mix. am looking forward to the latest inflation numbers. it could be the catalyst for more radical boj action in july. the brexit referendum, and i think the yen will remain very strong. yousef: we will see if that materializes. stimulus speculation. we are live in tokyo. the boj says it's ready to act. ♪ a controversial casino on the sydney harbour. criticsd sympathy for of the development. approval is subject to an increase in public space and a higher number of affordable apartments. thailand's prime minister says he will not quit even if voters reject his constitution. said -- the former general toppled the government in a 2014 coup. werend's soccer team beaten by iceland. win.-1 knockout round iceland is the smallest nation to qualify for an inte rishaad: 1:30 in turkey. 90 minutes for the trading day done and a bit of relief for the moment for the topix, up by one quarter of 1%. ♪ rishaad: you are back with bloomberg markets middle east. hope of further stimulus after the brexit vote

the last three years, that was a big pillar, one of the original three arrows of our abenomics.y, but iot going think it will not be the star performer in terms of policy over the next year or so. angie: thanks for doing that life for us in tokyo. : thai airways is taking on an alliance with as many as 10 other asian carriers. plan would boost connectivity in india and china as well as smaller markets, such as vietnam and myanmar. the idf follows last month's formation of the value alliance coalition of eight budget carriers spanning japan to australia. profits.p in four-your though world's largest publicly --ded jewelry blames the saw the slump on a lack of enthusiasm and a lack of tourism from mainland china. tesla shares surged in u.s. trading after ron baron predicted the company will become one of the world's biggest over the next it decade or two. reaching a market value of about $700 billion. barry capital management holds 1% of tesla shares, valued today at $325 million. the 23-year-old says there is no competition for the electric carmaker and he expects a return of six

in terms of the results of abenomics, i think people are questioning how effective that is.ple are questioning how much more the boj can do. now they are going to use fiscal policy. near-term, potentially a positive impact on the economy. longer-term, when debt already gdp, high, about 240% of and the government wants to spend more, somebody will have to pay for that. that tends to make consumers and corporations cautious. francine: are we going to see negative rates in the u.s. or helicopter money in japan first? is not our call that we will see negative rates in the u.s. we see the end of that cycle coming in late 2018. there's another two years before the fed reverses policy. helicopter money in japan is a distinct possibility. what we will see is fiscal expansion. expenses arerate lower than expected. they have some cash reserves. i don't think we need helicopter money just get in japan, but in the coming 18 months, this is a possibility. chaigneau,incent global head of rates and foreign exchange strategy at societe generale. pound cominge under pressure as the latest po

we know one of the main reasons why abenomics has had limited traction in japan is because of that thirdw. francine: that has been late coming. stephen: the problem is when you print and encourage significant outflows, you may get them, but when global financial markets go into meltdown, guess what? they get the patch treated. you sow the seeds of your own destruction. francine: will they actually get slack for it? it is not the same as getting support. we leave you alone if you want to intervene. stephen: it depends on when they intervene. the fed is clearly getting close to the top of its comfort zone on rates. that is clear. it may be more willing to entertain bank of japan intervention at certain times given that the dollar has been relatively weak so far. for example in q2. it depends where, when and how much. francine: at how fast the currency moves from here. think it's a much. -- and how fast the currency moves from here. thank you so much. still good to remind us at the end of the day. .tephen gallo up next, we talk more about russia and diamonds. ♪ francine: welcome to "the pul

it seems that colorado and abenomics have had a rough time into it is difficult to push inflation upoming up next, european ipos. we will speak to the owner and founder of a french energy company who says now is the right time to get to the market. ♪ ♪ the red: the markets in this morning. let's head to the bloomberg. dropped myle i little mouse. excuse me. every single industry group is trading lower today. the stock is flowing for the fourth consecutive day. concerns, anxieties ahead of next week's referendum. a whole load of federal reserve at meetings. bank of england and boj. for bank meetings taking place this week. on friday we saw the biggest drop since february 11. a decline of 2.4%. second consecutive week of decline. we are down for the second consecutive week also that is what is happening to stocks. every group is trading lower. big survey bloomberg has done today on the currency market, specifically sterling. this is a lovely chart going back to 1980 which highlights the big points of this survey. most of this survey sees a sterling falling below 135 if brexit occurs. 1

the ins says japan has fallen short of economic targets and needs to reload the arrows of abenomics.s out of reach. he came to power promising a strategy to revise the world's economy. global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. this is bloomberg. we will get the latest with david. it's about the time of the day when japan reopens in china goes into its own break. we are looking at equities, near session highs at the moment, volume/compared to the 30 day average. it was a rusty start, shaking off some of the cobwebs, and it looks like we might end up with a third day of gains across the asia-pacific with investors happy to take one additional risk, although not with the same monday.method we saw on that being said, despite the rally, we are seeing markets here in asia -- the other side of this risk spectrum is dollar-yen and you are looking at a two day chart -- we are still very close to the upper end of the retraining, which seems to be the market clearing price. while we are still seeing a rally across risk assets, s

to concerns that abenomics and boj stimulus are not working.panyesident says the plans to bring more product to china. camilla sobek spoke to bloomberg where one in 10 residents are said to be diabetic. we are eager to make sure these products can be brought to the market, especially within a chronic disease because there is a strong need. new products come to china a personally five years or more later than the eu and u.s. there is a delay that could benefit chinese patients. nejra: that is the bloomberg business flash. francine? francine: who will be the uk's next prime minister? the bbc has reported that michael goves is to throw his hat into the race to succeed david cameron. boris johnson has been the favorite for some time. in 40 years, the party has never picked the front rihanna -- the front runner. david cameron and others were all outsiders. favorite --y is now theresa may is now favorite just ahead of boris johnson. with didierre saint-georges. do you feel you are now a political analyst? forget your day-to-day job, how important is

in the early hours he was saying, we need to switch up gears on abenomics to escape deflation. you done some work on how strong theyen has to get against dollar to prompt another wave of action from policymakers. what is your policy like? >> in terms of the currency, we we see that- probability increasing if we go below 100. the boj is expanding its monetary base by ¥80 trillion per year and this is a huge amount of monetary easing. despite all of this, the trade indicators have not gone anywhere. this is through volatility swaps on dollar yen and financing it against the dollar korea. thank you for joining us. kokou agbo-bloua. consequences for britain, europe, and the rest of the world. former secretary to the treasury. anna: these pictures coming to us from bloomberg. governor of the reserve bank of injury -- of india giving his rates. cannot that the r.b.i. rule out brexit as a source of volatility. there could be possible turmoil in market on any future. he also said earlier on that he could not say any more on continuing as governor. that is a question of whether he would

i think it comes back down to abenomics and structural reform. we have seen a degree of backsliding on that. >> thank you very much for that. just to round out the points, the dollar yen close to the flat line and still falling this morning. there is still an appetite across foreign exchange. >>> vladimir putin will address petersburg forum later today. he will meet with the italian prime minister and they look to submit their economic alliance. take a listen. >> they should stop their, you know, bad taste propaganda. if they're seeing the from the of actual collaboration we need to restore the bridges of communication because, you know, in my perspective, i suppose everything stopped. the stage, they are not negotiating. they are accusing. they are claiming. they are making statements. that is it. governments, they are not collaborating on matters of approving actual economic climate. they are not improving the agenda of collaboration. but listen i am old enough to remember cold war period. and i can tell you never even during that period all th

is a large game of chess, and wu thing thone thing to rem enough is not enough, and i don't see abenomicsg, in japan, we did too much, or draghi h saying we have gone over the magic line, and unfortunately our fed can't say anything, because they have kicked the ball in this play. >> and so the reason ta you have have the backlash with the sanders and the trump movement is that the populations are saying enough to the establishment, because they have done it. >> and the populations, and how much leverage they don't like have. >> and exactly. they know that if we continue down the road that we continue down, they are not happy with that? >> and gentlemen, we have to break, but i could talk about it at great length, and thank you for watching, and jim, tau for the questionable place, and kayla back to you. >> and thank you very much, rick santelli in chicago. >>> up next, sheryl sandberg is talking facebook, and peter theil and rumors about disney, and the highlights of the interview in a moment. >>> sheryl sandberg here with the ceo and facebook of hr interview, and julia boorstin, what ha

nymex --w for all the four abenomics a day after the prime minister postponed the sales tax increase until 2019. goldman sachs has cut investment banking jobs in the last few weeks. that is according to people familiar with the matter. they say the jobs were lost in cities including london, new york, and hong kong. goldman is on a big cost-cutting drive as it tries to whether its slump in trading and deals. you can find more stories on bloomberg at top . matt: thanks very much. it is ecb debuted a survey of economists down there is no change effected to the central ork allah sees -- policies inflation forecast. mario draghi could step up the rhetoric against euro area governments, asking them for help. alessandro joins us from frankfurt. does the ecb feel it is being undermined by government in action? >> for sure, draghi has been stepping up his demands for reforms from european governments. he has been saying that the ecb is trying to do its job to bring inflation back where it should be, just below 2%. that there is not enough to create a sustainable recovery. for this, you ne

the yen reaction is maybe looking forward to the end of abenomics. with thehe old trend yen much stronger as the world is kind of -- the world's kind of weird safe haven asset. matt: do you expect the bank of japan to hold out -- to pull out a big zynga dess big bazooka and fight the strength of the yen? are they just giving up? think theyk they have done the big bazookas. with every central-bank and every easing, the half-life is shorter and shorter. the eurozone and the fed. the bigger issue is are we at the 20 end of what center banks can get away with. we are looking at this will policy but policy -- at fiscal policy but policy looks along on the way. -- and excitement go central banks outside of the federal reserve in america can no longer expect effectiveness from their policy? since a bank policy alone cannot move the needle? bob: the data .ells you, look at bond yields if you go back five or six years, nothing really worked. that part of it has failed. the bit you are kind of pointing canrd is essential -- is central bankers keep asset bubble

. -- abenomics.: i think it is quite a big deal for the japanese, for a number of other countries. how is it possible to get away from the zero lower bound? i think in terms of the cyclical influence on china, i'm not sure it is the big one. i think the messaging out of japan and whether they can never get themselves out of this particularly difficult period is the interesting one. i don't think that is necessarily china-related. francine: right. you say china has to do with dollar strength. what happens of chair janet yellen hikes in july? mike: i think if she were to do that, she would want to give us some indication ahead of that. she is not going to say anything until we get the brexit thing out of the way. we do think they want to get rates up this year. hike is a 60% chance of a this year according to the markets. dexcom placet of and is probably the wrong word, but we should all recognize -- there is a bit of -- complacent is probably the wrong word, but we should all recognize that it is comi

geoffrey: it is too early to say but if you look at negative , not only in the context of abenomics, then when you have had that horizon, you can start to make a donation on whether it has been successful or not. six months on, people are going to question it. francine: we had mark gilbert on, it is clear he believes there is a market psychology. greattlook is not looking and to cut into negative territory. is that why ceos are holding back from spending? geoffrey: that is really important. the context of the dock plots that came out. now we know it is him who drag every thing down. -- who dragged everything down. it is good to have a debate. central bankers are talking up expectations. the outlook is going to be fine because if you don't have confidence in your own policy, then why should the markets have it? tom: where is the orthodox right now? the orthodox of kuroda? the orthodox of rocky? -- orthodox of draghi? geoffrey: i don't think anyone knows right now it just right now. -- right now. tom: they are challenging something to do they know what they are challenging? geoffrey: i

the next step is for abenomics, the other two arrows that he talked about in 2012, need to start hittinget. you need to see structural reform, you need to see fiscal stimulus. the bank of japan has graded an environment in which the government can go to the market and issued debt in negative territory. and a market will buy off of them. now that is a good environment to go out there and borrow money, try to stability economy through some sort of old-school keynesian style investment. and try and boost the economy that way. but right now, though structural reforms, the we have just not been seeing them. anna: we have a chart that shows expectations for the imf expectations run the global growth story. it looks pretty sluggish. we talked about the reasons behind this and the u.k. context about productivity. also adding in japan's experience in the aging population question also a big factor. central banks need to do something. talking about the other actors, the options, etc. are they out of ideas are they genuinely -- alexander: i think you are seeing increasing calls around the world, pa

where is your tipping point for abenomics. where is the break point? >> it is 100.here. the problem is, where do you go if you get to 98. tom: you have a unilateral intervention, and they do not work, do they? >> exactly. they have no tools left to move the currency. tom: very quickly, can janet yellen raise rates? >> now. tom: thank you. it is very timely to have him here. i am looking forward to the next few hours with michael mckee. " continues.ichael mckee i am really looking forward to this tomorrow. from london, from new york, this is "bloomberg surveillance." ♪ ?c+sv stock supporting all time highs. interest is well above the historic average. why is this so much more the face of all of these gains? stephanie: negative rate of squeezing bank progress. super aggressive super mario. the ecb began buying pork -- corporate debt. but what happens if he holds countries -- companies that need restructuring? ♪ david: welcome to "bloomberg ." towardscks going another hive. amanda: we're watching a day after initiating corporate on buying programs. mario draghi mak

abenomics may not be working exactly, but the micro things and companies are doing more things in theareholders. angie: what about india? a it is pleasant to be in country that is actually still and a normal world, where interest rates are at a certain level, but there is attention on central-bank policy because interest rates are 6% to 8%, depending on what majority you look at. market is ok, and i think the most beneficial thing that india has is that domestic investors are starting to return to the market, just like we have seen in other countries where interest rates are going down, then departments become less attractive -- deposits become less attractive. we are not as bullish on gold anymore. bullish on not so gold anymore. i'm not sure whether that is the right thing. then my sense as a value investor is ok, you are paying quite a high premium for those equities already, so i find it hard to find interesting stocks, but i do like the structure of the market. gold, they may not like but a lot of people fleeing to golden light of brexit, fmoc, boj. >> gold was traditionally a sa

a domestic pullback on arrows within abenomics and the outcome.ideration, dollar-mexico has my attention. mexico is weakened over the past number of days. ,hat really gets my attention getting out not near 19 but moving in that direction. caroline? fascinating, weakening as the trump to beat goes on. "bloomberg " is coming up. megan, what do you have lined up today? megan: it is all about jobs. we will have a full range of guests. we will have nigel travis, ceo of dunkin brands to talk about minimum wage and the trends we are seeing in the job market and calls coffee as well. i -- dissecting it with none other than bill gross. we will have it all here for you from 7:00 to 10:00. tom: howard ward is with us from emco -- from gamco. our, what is the quality of 4.9% unemployment rate? does it make you feel good, or is it challenged, as we hear from our presidential candidates? harm: it is good. the shadow unemployment rate is certainly higher, but the same concept of unemployed came down from 10% a few years ago, so the dynamic is pointing in the

this goes to the problem of abenomics that seems to be not working out as planned.hould we getts to synthesize all of this action? which guests could we possibly select to synthesize -- francine: i think we have them on set. i think he is next to me. he is a senior independent economic advisor at ubs investment bank. how do you sympathize the markets? it goes back to tom's point that everything is interrelated. should we be less comforted by the fact that if one thing goes wrong, all of this, central banks, policies, cutie, even equities, come crumbling down? george: in some ways it is reminiscent about what was happening at the financial crisis time. -- it of european banks is dimon center, -- it is diamonds and dirt. currency, gold, precious metals, something that people will buy at any price. shares, banks, but -- francine: i love that. diamonds and dirt. we need to see what is going on. symptomatic. is it in the banks. deutsche bank is at a record low, or is it what is happening with yields? is not just happened within the last 24-48 hours. there is weakness in

yen of within six unwinding all of the benefits that we had in three years of abenomics, massive stimulusres that have taken place. it is bad for japanese inflation, far from its target, makes exports less competitive, and will weigh on demand. we will be watching those closely. an emergency markets meeting underway rht now in tokyo. betty: the likelihood of intervention is quite high? what is interesting is that the news of this meeting taking place comes after we had a report from the nikkei newspaper saying that policymakers are studying the possibility of putting through some form of intervention that could take the place in the form of unilateral intervention. some sort of coordinated response with its g7 partners is preferred. you would assume the most effective response as well as opposed to japanese going on its own. we have a revised down consensus when it comes to dollar-yen. the consensus is 112. the end of the year, and a number of analysts saying we will get to that within a few weeks, 95 to the dollar. incredible. haidi lun there. the gold rally is set to continue. betty: ra

the yen's abenomics -107.91. i know you went long on german 10 year on monday, bill.oing here, bill, on an international basis that chair yellen will have to digest. is it the follow-on on global deflation and disinflation? bill: let's be fair. it's both. central banks applying quantitative easing in euro land and in japan are responding to the potential for deflation. there is relatively no inflation in euro land and no inflation in japan. so that is the response. but to be fair, the reason interest rates are this low is not only the policy rates being set by central banks, but $80 billion a month that the ecb is buying and now they are buying corporate bonds. that is a lot of firepower. to see the 10-year german bund bundes at seven.d is inis relatively disruptive the long term for capital. tom: michael mckee and tom keene off a stunning jobs report. we are thrilled to bring you bill gross of jenna's capital here until the 9:00 hour. mike: we were talking about what you make of this number. does it really matter? janet yellen speaks on monday. what do you think she