the bank of japan just ended its policy board meeting on friday and decided to take additional monetary easing step. it the this is the second time since february the central bank decided to increase fund glows to the financial market. the bank's policymakers think it's needed. this is the breaking news and we'll have more details at the top of the next hour. >>> now chinese politicians and his family are facing more and more allegations of wrongdoing. now there's a new charge, wiretapping. "the new york times" reports that aides to him including president hu jintao. the paper quotes party insiders as saying he set up a large scale wiretapping operating several years ago. they said he monitored a firm last august by president hu. the times says communist party leaders viewed the wiretapping as a direct challenge. it was among several reasons he was removed from his senior post. the paper the quotes party insiders as saying the wiretapping revealed just how far he was prepared to go to moouch up the ranks. . >> a power struggle, intrigue, even murder. beijing is cloaked in a political sc

we get na news conference from bank of japan from the governor. looking at curreies and how that plays into what a lot of market players and analysts and economists are looking for in the bank of japan to take extra measures to weaken the yen, which a lot of exporters are hoping for. looking at the dollar yen 81.04 to 08. you can see the yen has strengthened there to lower 81 yen levels. euro general is 106.95. the euro did drop as the s&p downgraded spain. that's because of euro zone concerns that continue in the marketplace. ai. >> ramin, corporate earnings are a focus in the united states, of course, but also here in japan, isn't it? >> definitely. we've been having a couple of weeks now from u.s. corporate earnings, but japan is really starting to kick off quite heavy load today, specifically some global names such as fujitsu, mazda, hand da and sharp and fuji film. we have numerous holding in the securities awell as the heavy industries and nipon steel as well. quite a lot of different sectors coming through there. i have to add as well monday

japan's central bank has decided to take additional monetary easing steps to fight deflation. the decision came at the bank of japan's policy board meeting on friday. the bank will expand its asset purchasing program by 5 trillion yen to 70 trillion yen, that's more than $860 billion. the central bank's policymakers said at the same time that the japanese economy is showing clearer signs of picking up. they pointed to increased demand from reconstruction efforts following the march disaster last year. the boj revised its growth forecast for the current fiscal year upward to 2.3% from 2%, and for fiscal 2013 to 1.7% from 1.6%. the central bank also changed its outlook for consumer inflation to 0.3% in fiscal 2012 and 0.7% in fiscal 2013. >> translator: we believe it's likely that the japanese economy will return to a sustainable growth path with price stability. those measures are meant to make sure this will happen. >> the board members agreed unanimously it will take time for consumer prices to rise 1%. this is the goal that bank of japan set up in february to pull the economy out of deflation. >>> top japan

and the bank of japan's 1% goal of inflation. the focus on the next policy meeting next week to see if it continues with that andes asset-buying program. policy moves will be a major focus next week. >> thank you for that update from the toke yoi stock exchange. >>> more business stories next hour. for now, i will leave you with the latest market figures. >>> tokyo governor says he wants japan's government to take a firmer stance on territorial disputes. he says his plan to purchase three islands is designed to encourage a more clear-cut national policy. ishihara returned from the united states on thursday. while in washington he said the tokyo government intends to purchase the privately owned senkaku islands in the east china sea. >> translator: the japanese government should be more vocal about its sovereignty over the islands. if the government steps up and underscores its territorial rights, tokyo will withdraw its offer. >> the senkaku islands are administered by japan and also claimed by china and taiwan. ishihara says it

so the bank of japan actually doesn't need to do a whole lot. sure, we've got a little bit of deflation, so when you take out the rise in energy prices and the fresh food, core inflation is still negative. what i think you need to do for that, there are two causes. it has too much capacity so it needs to take out some of the zombie companies. two, the strong yen has been causing some of that deflation. and we just had a sizable move of the weaker yen, so we were pushing on 75 and how we're at 08 1/2. so that's a sizable, what is that, 8% move. so i think we should be quite happy with that. i think the bank of japan sooner or later, the politicians will be working out that they've been hoodwinked and they'll give the bank of japan do what we told you to do. >> it's guy munson here. at the bottom of the press release is always those admittedly quite modest amounts of qe that are targeted, etfs on the japanese stock market and japanese real estate investment trusts. both of those have consistently been among the best performers among global real ass

based on this projection the bank of japan expects large companies will boost capital spending as they with held spending since the march disaster last year. firms may take advantage of the recent pause in the yen's advance. they expect the japanese currency to be arnds 78 yen against the dollar. that indicates it foreign currency will go higher to five yen compared to current market rates. let's look at market figures once again. >>> more business news for you next hour. back to kathryn. >> thanks very much. >>> myanmar's leader aung san suu kyi triumphed for the people. it won almost all the seats it contested. e election is just a small step toward democracy following decades of military rule. we have the story. [ cheers and applause ] >> it is not so much our triumph but a triumph of the people involved in the pretty cal process of the country. this will be the beginning of a new era where ere' emphasis on the rule. >> sunday's elections filled 45 vacant seats in the 646 member national parliament and local assemblies. aung san suu kyi won her seat. in total, the national league fo

and any extra monetary measures that the bank of japan may take or increase asset buying program. and a lot of exporters want to see a weaker yen. we'll see how that plays out. for now the nikkei and the topix just in the positive today. >> that was ramin mellegard from the tokyo stock exchange. >>> now, i do have more business stories for you next hour. i'll leave you now with a check on other markets. >>> pakistan tested a mid-range ballistic missile on wednesday. the second show of force in seven days in the south asia region. patchari raksawong in bangkok has details. >> a missile capable of carrying a nuclear warhead. it follows last week's successful test of a long range missile by india. here's the report from islamabad. >> reporter: the pakistani army announced it had completed a test of its mid-range ballistic missile. they say it's an upgraded version of its existing missile. the missile smashed down in the indian ocean. the military did not specify the range of the upgraded weapon. but the range is known to be 700 kilometers. has a range of 2,000 kilometers. the missiles

carry trade so let's look at bank of japan policy regarding the yen yang carry trade makes comeback so this is an article from the end of march that got overlooked but spiking us bond yields and super loose japanese monetary policy reviving the yen carry trade which could spell more weakness in the currency after its biggest two months jump in three years the n was last in vogue as a cheap global funding vehicle for buying higher yielding assets in two thousand and five and two thousand and eight before the global financial crisis sent investors fleeing to the exits or max did it actually help precipitate since the global financial crisis it precipitated the global financial crisis it's a suicide called the bank of japan i mean here's a story a mount fuji beauty spot where one hundred bodies are found every year from people committing suicide they think that by and ruin their currency by self inflicting wounds into their own currency. who who who who. somehow this is a noble momentary calls the result this is throwing the entire global economy under the bus somebody needs to stage an i

the bank of japan said domestic demand is growing, due to rebuilding efforts in quake-hit areas. vernment subsidies for buyers of eco-friendly cars also gave a a boost. the bank noted that the japanese economy has stayed more or less unchanged due to the strong yen and an economic slowdown overseas. looking ahead, the bank says japan's economy will likely show a modest recovery. it cited europe's debt problems and high oil prices as risk factors. based on these assessments, the bank will continue with its credit-easing measures. they include an assessment purchase program worth nearly $800 billion. the bank also decided to offer $12 billion in loans for up to four years to financial institutions. that's part of a new framework to support japanese firms that make inroads overseas. at a news conference that followed the meeting, bank of japan governor shirakawa said pulling the economy out of deflation is important to achieve stable economic growth. >> translator: we will take appropriate policy measures such as support for financial institutions, to strengthen the foundation for ec

markets but also hopes that the bank of japan may take extra measures to ensure the goal of 1% inflation to hopefully put the yen back on a weakening trend. that follows the bank of japan meeting which wrapped up this week when it didn't add any additions to the asset buying program and some market players were skeptical about the b.o.j.'s stance. however, there is hope that at its meeting this month in april, that it might resume that goal as well. we'll see. let's look at some of the currency levels. you can see with the dollar yen and the euro yen, the yen is a touch weaker today. that might help the exporters we have seen selling off in the last few sessions. dollar yen 80.90 to 93. the euro/yen around 106. it was around 105 levels this time yesterday. the yen weakening a touch against the dollar and the euro. >> earnings still to come from the united states. i hear there are big names due out. >> definitely. we have heard already from alcoa, the aluminum giant. that surprised to the positive. next we'll hear from google, j.p. morgan chase and other retail high tech and domestic acco

japan's central bank has decided to take additional monetary easing steps to fight deflation. the decision came at the bank of japan's policy board meeting on friday. the bank will expand its asset purchasing program by 5 trillion yen to 70 trillion yen, that's more than $860 billion. the central bank's policymakers said at the same tim japanese economy is showing clearer signs of picking up. they pointed to increased demand from reconstruction efforts following the march disaster last year. the boj revised its growth forecast for the current fiscal year upward to 2.3% from 2%, and for fiscal 2013 to 1.7% from 1.6%. the central bank also changed its outlook for consumer inflation to 0.3% in fiscal 2012 and 0.7% in fiscal 2013. >> translator: we believe it's likely that the japanese economy will return to a sustainable growth path with price stability. those measures are meant to make sure this will happen. >> the board members agreed unanimously it will take time for consumer prices to rise 1%. this is the goal that bank of japan set up in february to pull the economy out of deflation. >>> top japanese and am

of a tight spot here ai. we're getting economic data and policy statements from central banks, the bank of japan, the federal reserve, in the u.s. and amidst all of that we're also getting corporate earnings which might be a little bit of positive positive. investors there in a bit of a bind. so but for now if the nikkei closes the way it is right now, that will be a seventh day in a row that it's been down and then the last ten sessions the nikkei has been down nine times over 800 points. backoyou. >> ramin,hank a lot f tt update. ramin mellegard from the tokyo stock exchange. >>> separately, the tokyo stock exchange and daiwa securities group will join hands with myanmar's central bank to set up a bours ne the emerging market. an agreement has been reached to create the exchange by 2015 possible in myanmar's largest city. an announcement is due soon. tse and the daiwa securities group will provide a computer systemor the new bourse. the executives are planning to visit myanmar to sign a memorandum of understanding in late may. myanmar has been rapidly transforming its economy since the country underwent a

no easing coming from the bank of japan. lot of people putting their bets on perhaps more he'ding on the 27th this month. >> and let's go back to china, that big story. china returning to a trade surplus, $5.4 billion in march, beating economists forecasts of $1.3 billion of deficit. tracey chang has been looking into this. >> that's right, chloe. although import growth he'sed from a 13 month peak, a pick up in orders compensated for a slow down in domestic demand. between january and mafrrch, th value of trade with the united states rose 9.3% on $107 billion while trades with the european union grew 2.6% to $127 billion. but import growth eased well below what analysts were expecting and that's raising questions about the strength of chinese domestic demand. and that's the long term growth plan since the strategy of exporting cheap manufacturing goods abroad is no longer sustainable. still, the surprise raid surplus reinforced expectations of a soft landing for many and some veteran market watchers remain bullish on china's

going on because of a strong yen on the back of the decision to keep the rates unchanged in the bank of japan so what's going on the nikkei is the climbing by around one tenth of a percent as you can see there the hang saying also on the decline more than one percent here trade surplus in china we're seeing it right back again exports are higher than imports was in like about a month ago although the pace at which are exports and imports are growing because of a lower u.s. demand really indicates a possibility of a hard landing for the chinese economy also a lot of negative sentiment coming over from the united states where the trading song. a loss of around one percent on a monday this is of course not not good for the global economy overall and that's on the back of a disappointing us jobs data which came back on friday now also rocking the nasdaq is news coming from facebook even though it's not trading yet it said to make its largest acquisition the social network says it will buy the maker of a popular mobile application called instagram the free app allows users to take a picture easily

the bank of japan is at the limits. ited additional channels of transmission, of additional monetary easing coming through, but you are in the sweet spot. sick cyclic cyclically, levels are low. it's the combination of the real economy ready to expand and the bank of japan showing the pro-growth attitude. it's a pr exercise to some extent, but it is important, tail winds are being created, policy is being pro-growth. >> thumbs were mixed, about but it was a bright sign, some of these retailers plan to up dividend or issue a dividend, as well. how long can this situation continue especially in the bank of japan eases in a big way is this. >> the key issue, and that's a good point that you're making here, the domestic economy is recovering. it's recovery partly because of the reinstructiconstructiorecon boost from reconstructing northern japan, but it's not just that. it is a positive wage dynamics that is being unleashed by the democratic sweet spot. i'm talking about the younger generation of japanese now being in short

i made two points at that time to the bank of japan. the first was that i believe that a determined central bank could and should work to eliminate deflation. that is falling prices. the second point that i made was that when short term interest rates hit zero the tools of a central bank are not exhausted. there are still other things that central bank can do to create additional accommodation. looking at the current situation of the united states we are not in deflation. when deflation became a risk in 2010 we used additional balance sheet tools to help return close to the 2% target. likewise we had been aggressive and creative in using nonfederal funds rate tools to achieve additional accommodation for the u.s. economy. so the very critical difference between the japanese situation 15 years ago and the u.s. situation today is that japan was in deflation and clearly when you are in deflation and in recession then both sides of your mandate are demanding additional accommodation. in this case we are not in deflation. we have an inflatio

>>> managers at japan's leading manufacturing firms say they expect to spend more on plants and equipment. they're forecasting an increase of 3.6% over the next year. japan's central bank released a forecast of sales. exporters say they hope overseas economies will pick up later in the year. bank of japan analysts expect large size companies, in particular will increase spending on plants and machinery. they've held off on making investments since the disaster last march. >>> accountants at the largest steelmaker find their books today are a bit more favorable. nippon steel has reversed a loss of more than a billion dollars. the company reported losses on the sthairs held for the nine months that ended in december. the debt problems in europe dragged down stock markets. and they caused the steelmaker's holdings to lose more than half their value. but the stock market rebounded in recent months. the nikkei average is back above the 10,000 level, and nippon steel is no longer obliged to record the losses. the decision will allow the company to post profits for the business year that ended in march. executives at nippon steel had originally expected just to break even. >>

maybe the bank of japan changes policy, maybe it doesn't. that's not going to happen right away. >> let's say you're right, the boj, u.s. government, bank of china, continue to buy u.s. treasury funds. are you saying we should see a sub-2.5% bond yield through the rest of this year? >> i think if they continue to play, yeah. sure. if you wanted well above 250, i think one would have to back off. 2.50 might be the ceiling on the bond for the rest of the year. >> corporate bonds, huge amount of issuance again. is there a corporate bond bubble? is credit too easy on the corporate bond side? >> i think that's a very good question. what we saw in the first quarter was a huge appetite for corporate debt. i think it was a part of the risk-off trade that we began to see as we came out of the fourth quarter last year. what we're starting to see now though are the buyers starting to extract a little more premium to absorb the new issues. it's quite a bit different than it was a month ago. >> so risk is growing a bit in the corporate bond market? >> it'

that's also coming just at a time this week when the bank of japan is meeting and there is hope that is the yen would weaken because of hope that is the bank would continue monetary easing and asset buying program when it meets on friday. just looking at the yen, they are 81-10 to 13. the yen has strengthened a touch against the dollar. >> ahead of that meeting, that's on friday, we have other key events, right? >> definitely. we have key economic data and also the federal reserve is going to be meeting later today. the news conference tomorrow by the fed chairman who will be closely watching for further wording on monetary policy. dita-wise, we will get the closely watched index and housing starts and consumer confidence. let's not forget we are in the thick of the earnings as well. one of the biggest companies in the world in the tech sector heavily weighted on the nasdaq, apple will be coming out with earnings later today. we will see the market effect on that. a lot of analysts saying that the policy meetings as well as events in europe may just take center stage. we will see. for

the bank of japan released the results of its tankan quarterly survey on monday, roughly 11,000 companies were covered by the poll. the headline index for large manufacturers stood at minus 4, unchanged from the previous survey in december. a negative reading means that those with a pessimistic view outnumber those with an optimistic one. exporters and other manufacturers remain under pressure from a strong yen, even though the currency has weakened somewhat from historical highs. the effects of the european credit crisis also linger. and a recent rise in the price of crude oil is squeezing profit at steel and chemical firms. looking ahea major manufacturers also expect business conditions to inch up. hopes are rising for a moderate economic recovery on rising demand for post-disaster reconstruction. >>> in may, egypt is due to hold a landmark presidential election, the first since the ouster of the hosni mubarak regime last year. egyptians are watching intensely as the election approaches. the country has never had a free and fair presidential poll. young people, who played a key pole in

>> oversea, meaning out of japan, there have been high expectations on the bank of japan going more into inflation arrest getting, the bank of japan is clearly under high pressure from the government side, also has to do something on the the economy. but as always, it will do this accept by step. it skipped another expansionary step between the last meeting. this meeting might do something again. but as long as the japanese yen is not strengthening again way beyond 80 to the dollar, i woopts expect too much coming from this side. >> what are the chances of that happening? we had a guest yesterday who said he saw dollar yen at 85. what's your outlook? >> i'm more on the opposite side. when you look at yield gaps in particular towards the euro area right now, where much of the shift globally are, we had for the first time, well, as long as i can remember now, two year bonds in germany yielding less than in japan. this is a strong indicator that the euro might be weaker this year towards the yen again. this hurts profits of course of japanese companies. andle also push the yen potentially q

market players in the japanese market are staying very cautious ahead of the bank of japan meeting scheduled for tomorrow. the shanghai composite a bit of a cautious day there. bank earnings in focus. we have industrial bank of course and some of the other banks posting strong earnings. tomorrow we having a gri cae ai agricultural bank reporting. hang seng up 0.8%. gains late session. we had some mixed earnings coming from the like of china. byd, which is a chinese carmaker backed by warren butch at the time reporting a 90% slide in quarterly profit late yesterday. so that took a hit. elsewhere, strong gdp numbers in south korea, but the outlook pretty uncertain, so that kind of took away any gains coming from ben bernanke comments. new zealand central bank keeping rates on hold citing the strong currency as something to look out for in terms of future monetary policy. and the sensex pretty much flat, so a little bit of a cautious start to the day. >> we heard more comments out from wen. he'll set up branches in central and eastern europe and wants to raise 500 million in a dedicated china e

overseas the bank of japan's decision to extend its asset buying program did not help markets.kyo's nikkei lost nearly 0.5%, logging its worst april performance in seven years. while hong kong's hang seng lost more than 0.25%. >>> the house will vote on a bill that would keep interest on student loans from doubling in july. however the two parties are split on where to find the $6 billion needed to keep rates at their current level. >>> the number of people applying for unemployment benefits remained stuck near a not seem to affect the markets. the dow was up 113 points, while the nasdaq gained 20. >>> amazon.com posted monster numbers in the first quarter. the online retailer said its net income was $130 million. much more than what analyst had predicted. amazon's surge is due in part to sales of the kindle fire. >>> speaking of online shopping, you'll soon be able to pay for cash for items you buy on walmart's website. shoppers will soon be able to select products on walmart.com, pick them up at the local store and pay for them in cash. walmart says it's trying to cater to cu

yield on benchmark japanese government bonds has hit a 17-month low over speculation that the bank of japan may take additional monetary easing steps this week. investors rushed to buy ten-year government bonds during trading in tokyo on monday, pushing the yield down to 0.915%. the level marked a new low since november 2010. the yield is now quoted lower, .910%. the central bank is to hold a policy board meeting on friday. >>> japanese and australian officials have resumed long running trade talks aimed at securing economic partnership agreement. high on the agenda for the four-day meeting is easing tariffs on farm and industrial products. the talks began five years ago, but have been snagged on key differences. australia wants lower tariffs on beef, wheat and other farm products. but japan wants to keep the tariffs to protect its domestic farming industry. the two nations are also at odds over japan's bid to join talks for the trans-pacific partnership free trade agreement. australia has not expressed support for japan's move, saying the country needs to open up its market more to meet tp

i made two points at that time to the bank of japan. the first was that i believe a determined central bank could and should work to eliminate deflation. that is falling prices. the second point that i made was that when short-term interest rates hit zero, the tools of a central bank are no -- are not exhausted. there are still other things that the central bank can do to create additional accommodation. now, looking at the current situation in the united states, we are not in deflation. when deflation became a significant risk in late 2010 or at least a modest risk in late 2010, we used additional balance sheet tools to help return inflation close to the 2% target. likewise, we have been aggressive in creating and using nonfederal funds rate centered tools to achieve additional accommodation for the u.s. economy. so the very critical difference between the japanese situation 15 years ago and the u.s. situation today is that japan was in deflation. and clearly when you're in deflation and in recession then both sides of your mandate, so

showed quite a bit of a rise, but also markets really watching what the federal reserve and the bank of japan are going to be doing at their next policy meetings to see if there's any increase in monetary policy moves and how that may affect both the currencies and stocks. for now, the nikkei and topix marginally lower. back to you. >> thanks for the update from the tokyo stock exchange. >>> u.s. treasury secretary timothy geithner is urging debt-stricken europe to strike a balance between growth and austerity. >> very important to get that balance right between -- to say is simply, growth and austerity. what you want to do is avoid a situation where since there's a risk of a prolonged period and disappointment in growth from the countries. >> geithner was speaking at a seminar ahead of the g20 meeting of finance ministers and central bank governors that starts later on thursday. he pointed out the risks for undermining stability and growth and getting back to the cause of reform if europe tries to implement all austerity measures like budget cuts and tax hikes immediately. geithner also call

here also we're going to get the results of the two-day bank of japan meeting which wraps up today and again the focus is on any further monetary policy moves and also any extra asset buying from its asset buying program. now the stronger yen also putting currency traders in a bit of a twist, following february the goal of 1% inflation whiched many investorto think the yens on a weaning path and the trade deficit numbers out of japan. recently with concerns about some economic data out of the u.s., also growth concerns in china as well as eurozone debt especially with the spanish bond auction last week that's also throwing into question whether the yen can weaken further. let's have a look at the currency levels this tuesday morning and looking at the dollar/yen and euro/yen still holding pretty strong as far as the yen's concerned, 85.81.75- and euro/yen 107-13-18. some of the concerns regarding the recent strengthening of the yen has put a little bit of pressure on the exporters. ai. >> all right ramin. >> so basically just to follow up on that we still have concerns about some of th

. >> now the highest level of the central bank, up to the highest levels of the european bank, highest levels of the bank of japanvels of the bank in frankfurt, all ofç tho executives are willing implicitly or explicitly, they create end continue to advocate a policy of central banking, that they have deemed as a necessary environment to preserve the too big to fail banks and that a biproduct of that collateral damage if you will, is depriving a few hundred people that none of us have ever met in new york with food spp that unfair? >> this is more than unfair. it is unconscionable. it is one thing for the price of oil to be where it is. artificially stuck up. but now we have commodities since they have all been financialized, moving together in a suite. so you know, the price of oil one thing but the price of grains, live stock, price of edible oils, this is what drives people into hunger. what he we are looking at is the end to democratic regimes. hungry people, dylan, are angry people. >> walk me through how many people -- how much information do we actually have? what do we know? what is the survey opinion an

for that make a now investors are cautious because there is will be a policy decision made by a bank of japan and they're also pricing their a weaker than expected to rise in the poll but there is some a boost from the post of earnings reports and technological and resource companies so let's take a look at the russian markets as i said it's less than an hour now before they open on thursday they ended the day in the red and basically investors here were mainly reacting to this appointing data coming from both europe and the u.s. but we'll see what happens when they open next hour and see if they're as false as their spending habits now let's move on to other news and we know that russia's internet investment firm male adult are you group has revealed some upbeat results its revenues rose a forty three percent in the first quarter of the year which was above expectations and the company which owns a little over two percent and facebook also said its last year's net profit jumped one hundred fifty eight percent. and there's a new blow for the euro zone the ratings agency standard and poor's ha

and the nikkei as moved back into positive territory is up point one percent that's out of the bank of japan has announced it's keeping rates unchanged whereas china is seeing a decline of more than one percent on the back of well trade surplus coming back in but growth rates for imports and exports indicating that there's a possibility of a hard landing. and now let's move over to the u.s. markets where a lot of negative sentiment actually is coming from on the global markets after those jobs figures coming out actually on friday and the dow jones the nasdaq declined more than one percent now making news on the nasdaq is facebook hasn't actually tricked started trading yet since i p o is yet to come in a couple of weeks and it's making its largest acquisition to date social network says it will buy the maker of a popular mobile application called instagram the free app allows users to take a picture easily modify it with different filters and then share it with friends now the service was founded less than two years ago and will be sold for one billion dollars in cash and stock. and that's

the bank of japan has decided that it wants to inflate, too when you see all the central banks in the world running -- the countries are running big deficit. central bans are printing money as rapidly as they can. then you know that inflation is coming. and people say to me, well, where do you see inflation? i see it in a lot of places, but one of the places i see it in is unlike the federal reserve, i think that bubbles are caused by people getting out of money. that the exchange rate is declining because the fed is printing money. so just to give you a few little examples. when president nixon left the bretton woods system there were 360 yen to the dollar. there are now .8. ú bit, you know, the first part of what you said when you said that the fed is doing the government's fiscal policy. just, i mean, help people to understand what you mean by that, in what sense is the fed doing the government's fiscal policy? >> when it buys a trillion dollars worth of mortgages, it's doing the government's business. it has no business buying long-term assets. central banks -- well-run central ba

now over the asian markets have closed and also in the red with nikkei down a notch after bank of japan left interest rates unchanged. and the hand sank is down on the basic new prospects of chinese economy increasing for a hard landing because imports and exports have been growing slowly due to low in the west and. in commodities we are seeing a continued negative movement this is a seven week low now but good good side of this story is that it's on optimism that basically chances of a military conflict over in iraq are decreasing at least hopes are such that international efforts will lead to a decrease in diesel. and in currencies we are seeing be a euro declining slightly versus the dollar those high a bond yields and the russian ruble before are also declining both currencies given that there's no support from the markets. and that's the way the markets look at this hour and let me just remind you in fifty five minutes time marino will be here to bring up a rory many thanks indeed see you tomorrow. part of still to come here and i'll see the headlines and right after that the kaise

it's also negative over the nikkei is a supporter of the sun was on the back of a decision by the bank of japan to keep interest rates the same the hank saying is down one percent as trade surplus comes back in china but growth rates in terms of both imports and exports are pretty weak because of lower u.s. demand and that's indicates enforceability a very hard landing the chinese economy. moving over now to u.s. markets of course very important. all markets around the world are down more than one percent at the end of monday's session and moving the nasdaq actually right now is the news coming from a stock which isn't trading yet in a few weeks facebook will only have its i.p.o. but it's already making headlines as is has made its largest acquisition today for social networks as it will by the maker of a popular mobile application called instagram the free app allows users to take a picture easily modify it with different filters and then share it with friends and just know this in less than two years a value of the company is one million dollars become facebook will be paying. in cash and sto

the neck a losing value and that's as investors were cautious i had of a policy decision by the bank of japan and they're also pricing in a weaker than expected rise in industrial output but as you're about to see the nikkei has made a compact and it's now in a positive territory but it's actually is a positive territory right now by you're seeing out of the picture right there it's actually adding over one percent this hour which is quite impressive and of both the hang seng is also in positive territory and when it comes to hong kong basically why investors are there is because there are some positive reports earnings reports by resource and technology companies are right let's move on to the u.s. where you can see the close up picture because. of course it's not trading right now and they ended the trading session on the high end as investors were basically reactance and mixture of data if we can look at the u.s. markets right now and basically we have positive earnings reports that is earning report season that's where we'll be hearing a lot about the first quarter results of companies an

some of the other markets in asia the nikkei was down slightly up the bank of japan decided to leave rates unchanged and the hand saying was down more than one percent as china reported a trade surplus once again after seeing a deficit in the previous month but the pace of growth for both imports and exports is such that it's creating concerns about a hard landing prospects for the chinese economy. and now let's take a look at what's going on in commodities and understandably light sweet and brant are correcting now this is actually on the back of optimism of basically a prospect that international efforts with reduce the odds of military action over in iran and therefore political risk would be lower when it comes to commodities over on the currencies markets we are seeing the euro weakening just a notch against the greenback whereas the ruble is pretty much the same against the dollar and increasing versus the euro. weakening versus the euro around twenty kopeks. and now let's move over to the u.s. markets where of course we did see a session of declines on monday on the back of th

asia has ended the session in the red with the nikkei down zero point one percent it isn't by the bank of japan to keep interest rates unchanged while in the home kong home saying was down more than one percent china may be heading for a hard landing giving bad. imports and exports have been growing at a pretty modest pace. move over to commodities and we are seeing a decline this. nymex crude and brant blend because of optimism. international efforts will reduce the odds of military conflict with iraq . and now the cyclical what's going on the currencies markets and the euro is declining by just a notch versus the greenback while the ruble is mixed against the current so yes it's weakening versus the euro and strengthening by well just a bit versus and. finally futures for the u.s. markets look just slightly positive that's after a bad session on monday when again traders were reacting to a disappointing jobs report on friday and making headlines on the nasdaq was a company which isn't even trading but there's a few more weeks left before facebook's i.p.o. and it's already making its largest a

percent lower same with the hang signs and basically that was positive news coming out and the bank of japansaid that i would increase. expand its asset purchase program by sixty six a billion dollars and boost the investor confidence but it didn't manage to do that and in fact they went the other way around all right if we move on to russia markets let's see what's happening there it's now our second hour of trading the arts yes it is a lower but my sex has managed to turn around and it's going to employ super seconds well you know the news the russians are spending more money turns out and that is as the economy has stabilized the economic ministry says they saved only seven percent of their incomes as of march and that's the lowest level in the last three years people spends around three percent more than are in the first quarter and so more loans however analysts say then why it soon need to tighten their belts as inflation is expected to grow later in the year. well i didn't end up saying spending more than i was saving so that's good for me and that's something. many thanks for the. ba

bank and that i.m.f. has been on the side of the large part spare even before the age government came along and joined that side in fact i.m.f. back in the very between japan has been saying that they cannot understand why the european union and the c.p.a. and dodge garment insist on continued repayment of the bondholders of the brains blown corders because these banks are bust and there has to be some sort of the burden sharing now both i.m.f. and the rest of the troika don't really mean the restructuring as it happened in greece are this entirely different scenario from going. and again irish authorities are very quick to point that out and they're correct in pointing that out in the sense that greece needed to write down and sober and in other words government boards in irish case the government that itself is probably sustainable it's getting dangerously close to the barrier beyond which it is no longer sustainable and certainly is beyond the barrier where it exerts a drag on economic growth in the future but nonetheless it is still sustainable in the sense that they can be stabilized and drawn back through growth and through a combination of growth an

compounded because now the european central bank is adding fuel to the inflationary fire and the bank of japan has finally decided that it wants to inflate, too, so you know, when you see all the central banks in the world, the countries are running big deficits and the central banks are printing money as rapidly as they can, then you know that inflation is coming. and people say to me, well, where do you see inflation? oh, i see it in a lot of places but one of the places i see it in is unlike the federal reserve, i think the bubbles are caused by people getting out of money. that the exchange rate is declining because the fed is printing money. so just to give you a few little examples, when president nixon left the system, there were 360 yen to the dollar. there are now .8. we've depreciated the dollar 70% against stable currencies and we're doing more all the time. so those are signs of inflation. there are others. productivity has slowed. productivity activity growth has slowed now. wages, compensation is rising. that's surely a sign of things to come which aren't going to be nice. >> oka

what you're saying here has a stable economy based on a stable currency whereas in the us or the bank of japan or the u.k. it's completely unstable because the currency is incredibly volatile because people don't trust these governments central planners all what you identify keyword there is just trust and here the are the central banks i just listed they think they could command and control they can force you to trust when there is no trust in the system why would you trust any derivative products from j.p. morgan to goldman sachs why would you trust any of these debts that there are any of them are payable why would you trust to ever work and pay your taxes again when as we see in ireland when people are refusing to pay their tax it's just being transferred directly to a small group of bankers now the economists article brings up this issue of trust and says the shilling has a further source of strength since each party to a transaction is likely to be able to place the other within somalia a system of kinship the shilling is underpinned by a strong social glue. paper currencies always need