hurting european banks and if the timing the banks why are they keep doing it even if the bank of international settlements just reported that the bond buying programs are distorting markets alfre well with entirely i mean you know if you if it hurts when you bang your head against a wall stop banging your head against the wall i mean you know it's complete lunacy what they that and i mean we know that reducing interest rates doesn't work but it plays to this idea that interest rates are an unnecessary costs for our was progress however you want to define it i mean that's complete nonsense interest rates reflect the future possession of goods compared with current possession is his time preference but of course central banks don't understand that they merely think it is a cost of money they think it is usury they would rather do away with interest rates completely they have a right and whether of course they find that there are consequences i'm afraid we're all going to find out in the next year or 2 probably in the next month or 2 i mean this thing is speeding up quite rapidly i think. let's talk about. w

coming up next, the bank of international settlements governor agustin carstens tells us where he sees limits of monetary policy, live from the imf annual meetings in d.c. sophie: later, cpi numbers are due from japan at the bottom of the hour. inflation continues inching to zero. this is bloomberg. ♪ --ry: making the point that central banks can only do so much. fiscal policy has to step in. but is anybody listening? government for the to continue on their path, including in australia where there has been some stimulus and there doesn't appear to be a problem anymore. are you concerned that nobody is listening? gov. carstens: i think more and more people are listening. many central banks are weporting this idea, and have to find a way this is done in a more efficient way. for example, a very large monetary policy has reduced interest rates a lot, for sovereigns. for manyof debt advanced economies has fallen dramatically. wouldhing that would be -- be if they start to spend. part of that is the effect of the monetary policy reinforcing. that's what we need, how to reinforce growth, and

with several big names at the imf meetings including the philippine finance and the bank of international settlementsrward to those conversations. let's get to our guests here in sydney. sydney.s us now in before we get to the doom and gloom for of the imf downward vision and the global economic some markets hitting their 2019 highs. gains just shyng of 2% and the nikkei, 1.5%. is it the time for japanese equities to shine? >> i guess so, and i think a lot of it has to do with the fact that we have public sentiment on trade. we are getting rumblings that maybe we will be part of a deal at the apec summit when the leaders meet face-to-face. it does usually render some sort of positive outcome. we have china saying they want to see the december tariffs rollback before they would sign any sort of partial deal. maybe president trump could make a concession if we see china make agricultural purchases before the meeting. that is positive for the markets. we have optimism through global equity markets as well at the moment. haidi: this chart goes to why the imf is feeling optimistic as well, global expansio

bank is looking into creating its own version we are concerned that the primacy of the u.s. dollar could be a long term jeopardy from wide adoption of digital currencies internationally the bank for international settlements conducted a study that found that over 40 countries around the world of currently developed are looking into developing a digital currency but i saw that story and it plays into what we've been talking about here because if all these stations create digital currencies crypto currency is it would increase the velocity of money and it would get countries away to move away from the dollar and the dollar is feeding the very specific ponzi scheme so it because it is digital gold because in a would be a crease velocity and there is incredible there's very very little friction between these digital currencies amongst the. trace the velocity of money with skyrocket wages would go up and you would see at the club talking at the kleptocracy class would be challenged i would quickly in this last few seconds here say that only big coin is digital gold this is essentially all the coin and this will put all those all coins out of business because there is no reason to hold libra there's no reason t

bankeen: the head of the for international settlement. they meet with central bankeeks. of theelf was the head central bank of mexico. i want to get his view of how the risk has shifted. is it a dark cloud that will push everyone toward recession? is thedominguez philippines treasury secretary. a domestically demand driven economy. it will be interesting to hear what he has to say about all of this as well. a lot of others falling into place and we will share that with you over the next couple of days. heidi: very much looking forward to those conversations. toore we handed over bloomberg markets: asia, let's look at how asian markets are trading so far this tuesday morning. the nikkei 225 leading the gains across the region, japanese traders play catch up after the long weekend. little bit of boy and's after the announcements that the government may be providing extra measures to support reconstruction after the typhoon. the cost be looking flat ahead of that rate decision later this week and austria treading water after the rba meeting suggesting potentially more

of overnight rates >> listen, i understand from a marketing standpoint qe has a negative connotation and it's getting so more and more because it's manipulating rates. you know, the bank for international settlementscentral banks cut rates and they found in the research that the unprecedented growth in balance sheets with low rates has caused markets to function wrong. the plumbing isn't working your final thought on how this all fits together. >> no, i mean central banks have done a lot of damage on negative interest rates, on holding inverted yield curves. they should concentrate their actions on the short end of the curve to me so the markets could do their job and be more of the transmission mechanism so the economy can grow better. >> and my final question is, as i embark on what jay powell is going to give us soon about the balance sheet, i guess my final comment is now that the plumbing is smaller and the markets have grown bigger, i think we'll be forced to see all central banks have bigger balance sheets to adjust toward their target rate. is that not correct? >> no, i think that's absolutely correct. i don't think they're going to be getting smaller any time soon. >> marc, thank you for

coming too close to the outposts of a more settlements are built every year in the west bank this is seen as an illegal occupation by palestinians and the international community some 200 localities are sprung up in the last 50 years but television authorizing most of these home to over half a 1000000 israeli citizens clashes between palestinian and jewish communities flare frequently in the region rabbi yeah i says he wants the fighting to stop. politically i think the palestinians to deserve the right for self-determination as we jews have all right for said he didn't mention in israel i think that 2 states what is the name israel you should believe each 2 are 2 other next to the other in peace the but unfortunately not type in the. but our aim is that organisation is not political is human is human and we do our best to. the submission. us democrat 2020 hopeful till see him back it claims she's getting help from russian delegation was made by hillary clinton it blames moscow for own defeat in 2060 they've got their eye on somebody who's currently in the democratic primary and they're grooming her to be the 3rd party candidate she's a favorite of t

bank international settlements general manager about the risks for monetary policy. >> we are reaching a point where anetary policy can generate small benefit in terms of economic growth but it might generate the probability of less growth in the future if we fall into financial instability in the future. >> in catalonia, spain, separatist leaders are promising a new push for independence. it is a challenge to spain during the 10th week of violent protests. separatist leaders have called for a general election -- general strike today. we spoke to the minister about the political crisis. global news, 24 hours a day on air, on tictoc, and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. back to you. nejra: thanks so much. here is how some of the key players reacted to boris johnson's last-minute deal with the european union. >> a great deal for our country and for the u.k.. it is a good deal for our friends in the eu. i will say that our objectives have been met. >> i am happy that we reached a deal. >> we have a deal which allows us to avoid chaos and the utmost fear of conflict. thanks to this deal, we can't