what could it mean for the bank of japan as it tries to get to the 2% target? kathleen hays joins us now. kathleen, you are looking at the boj. we are now kind of wondering whether we have fiscal or monetary policy being set up to work against each other in the election. kathleen: that should be a concern given what we have seen. in 1986, it could be very ill advised. let us take a look at them and it's because the minutes as we think about what happened in the meaning, there -- a meeting, there is doubt about hitting the 2% target. the majority did see momentum to the target, and they agreed it was vital to maintain it, but they were forced to move the out to fiscal year 2019. it is moving slowly. stillka, governor kuroda defending what they are doing. low inflation, 0.5% on the key any talk given -- about exiting stimulus is premature. also some optimism. be forcedare going to to raise prices as they see rising wages and they get harder and harder to absorb. i want to show you a chart. #btv 8160. it has two components. the white line is the unemployment rate.

ministry ofrule is finance people and bank of japan people alternate. candidate to succeed mr. kuroda. he will take over 2020. david: d you think the bank of japan will ever raise interest rates? at tguhis moment. continue easy to monetary policy for the next 6 months. governor kuroda is not thinking about banking at this moment. you may think about it at the end of next year but not right now. david: thank you for joining us on the program. up, we are speaking with the central bank governor of the philippines. this is bloomberg. ♪ what did we do before phones? they save us from getting lost, getting hungry, and getting tired of places like this. phones changed everything - shouldn't the way pay for them change too? introducing xfinity mobile. where you can pay for data by the gig, and share it across all of your lines. no one else lets you do that. see how much you can save when you pay by the gig. xfinity mobile. it's a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. announcer: from our studios in new york city

the bank of japan, the government of japan made a joint statement in 2013.datees agreed to a for a target. the government will stick to the medium-term government constraint. going, thehat is government will eventually have some idea to constrain excessive expenditure, are trying to do something about revenue size. at the same time, you can make a good case the government has to make a good balance between maintaining economic growth and creating an environment where medium-term targets will be maintained. that balance is delicate and the government and the new administration after this abouton will be careful striking a good balance. rishaad: would the election -- the recent economic data, would you say that japan is coming out of the woods? some sense, japan has already come out of the woods. economic growth rate since 2013, one abenomics started, the average growth rate is about includinge 1.3% projections for 2017 and 2018. this can be compared with 0.9% before abenomics had the higher growth rate. aginge a very huge, rapid population problem. watching t

what impact might that have in terms of the bank of japan's policy? how he wins the election. and if abe wins by a big margin he has power in his party and that means whatever he wants there. that is a core measure. abe's economic policies are in the right direction. [inaudible] let the boj continue its easing. anus: gdp has expanded to

sebastian: the bank of japan kept its monetary stimulus unchanged, but a dovish board member opposes the decision. he argued there was little chance of reaching the banks inflation target and the effects of the current yield curve program weren't strong enough. that was an unexpected dissension on a board chosen by prime minister shinzo abe. the u.s. secretary of state has told european allies the iran nuclear accord hasn't stopped the country from destabilizing the middle east. comments cames after president trump said he had made his decision, but wouldn't reveal what it was. puerto rico has been offered help from president trump after it was battered by a second major storm. maria made landfall yesterday with winds reaching 155 miles per hour, causing potentially billions of dollars of damage. the entire island was left without power. a mexico, the death toll from 7.1 magnitude earthquake has risen to at least 233. rescue and recovery efforts continue. many offices have remained shut. macron says europe needs to change to offer more opportunities to the middle classes. speaking at

is unlikely wet will see the bank of japan easing. of questions on the economic front. trend,nomy is above inflation is not picking up but the bank of japan is unlikely to do anything about this. rashaad: stick around with us. we have much more to talk about, bank of japan and the fed. let's more on the way. ♪ ♪ rashaad: you are with bloomberg markets. with theue our chat rates strategy. we were talking about japan, talking about the yen and above trend growth. amazing growth numbers. is it time for the bank of japan --have they thought about doing something about their bond program? >> it is still very early days. growth has been above trend. trend growth is low, but the problem is wage pressures have not been picking up. inflation trajectory is subdued. we are going to have governor kuroda replaced or staying. we will find out what happens with the bank of japan. there has been a shift of members on the bank of japan board. some time later next year we will see a shift in the yield curve target slightly higher. it is way too early at

bank of japan keeping the asset purchase unchanged after an unexpected sign of dissension on a boardhosen entirely by prime minister abe. a new member of the the decision in his first meeting. u.s. secretary of state has laid out washington's case to european allies about flaws in the 2015 nuclear accord. its development of ballistic missiles and funding of terrorism, tillerson spoke to reporters hours after president trump said he would make his decision about whether to walk away from that pack but would not reveal what it was. >> he takes his responsibility in this matter quite seriously. that is the reason he is very carefully considering the decision of whether we continue to serve the security interest of the american people are not. robert lawler has reportedly asked for documents about saw president trump's action since taking office. according to the new york times, it includes the firing of michael flynn and fbi director james comey. the paper said mueller is also interested in an oval office meeting donald trump had with russian officials. u.s. securities and exchange itsi

lauren: of course taking the news the bank of japan is leaving policies unchanged, they make a up two 1%. the rest of asia fractionally lower. cheryl: google making a billion dollars at a necktie smartphone maker. lauren: albertsons will soon deliver prepared meals. "fbn:am" starts right now. cheryl: 5:32 a.m. in new york. tuesday, september 21st. happy new year to her jewish viewers a lauren: good morning, everybody. 9780. cheryl: mother nature is not a friend right now. lauren: and she's going to continue. a couple more of this. trent is unbelievable. breaking news this morning is hurricane maria. passing in the dominican republic, category three storm, maximum sustained winds of 115 miles per hour. the tourister puerto rico in the u.s. u.s. virgin islands yesterday destroyed hundreds of homes between streets into rivers and knocking out power across the entire region. >> logistically it's a big challenge. you don't typically have all the resources you need so they have to come from the continental united states over. both territories basically without power and will be so for a ver

this week we have the fed meeting plus the bank of japan meeting. d point out it's the kickoff of the u.n. general assembly which is basically the super bowl of diplomacy. ten year yields, higher yields is up around 2.2% last week and similar story here on monday ten year note yielding 2.209%. >> super bowl of diplomacy. >> yes, it is. >> very nice, indeed i like that. >>> asian equities, the standup which is the nikkei. up around 3% outstanding performance and that came as the yen slipped around 3%. worth noting as seema mentioned, despite north korea threats, the nikkei gained 3% which is showing how little focus you or little worry there has been in the region when it comes to market performance at least this morning we are seeing gains again across the board in asia albeit nikkei and japan is up. european trade last week, the ftse was down sharply 2% both germany and france were up over a percent green in europe up around half or so of a percent. >>> let's take a look at broader markets and start with oil that really has been the standout over th

central banks you know there was a great hope that the european central bank would not do the same thing the fed was doing of the bank of japan was doing that there was a vestige of the old bundesbank that they were anti inflation that they would never monetize debt and yet they want to did it and drag has been doing it and they don't seem to care about it and but the capacity to continue on this game with the bank and switzerland buying back by apple stock and buying assets in the bank of japan buying e.t.f. i mean i hear what you're saying well i don't see why now should this and i mean i can and i can hear the whole another fifteen trillion dollars worth of us going forward so draggy is running out of booms to buy that's one reason and let's just go back to two thousand and twelve though you remember the european debt crisis circa two thousand and twelve. when you had a greek to your no ten you're no at forty percent ok and it's allensworth seven percent portugee seven eight percent so you know they had to come in because the the amount of debt extent in the world today requires low interest rates or the whole charade impl

from a holiday catching up overseas and also reacting to reports of a snap election potential and japan. lauren: don't they have a bankere is no shortage of questions for japanese investors to look forward to. although it is expected to bank of japan will continue to be supporting the equity markets for some time. lauren: riva, thank you so much. cheryl: i can't wait to see what they say about the effects of the hurricane on the economy. it will be good this week. i am bullish, hopeful. lauren: rates are going up this time around. jamie davin warned about it. don't be complacent now. cheryl:.is it for us. over right now to maria bartiromo. >> thank you so much. we are on the fed meeting this morning. thanks for joining us to maria bartiromo. tuesday, september 19th. coast. president trump will give his major address before world leaders this morning promoting his make america first agenda. jim mattis reiterated the u.s. has all options on the table when it comes to the kim jong un regime. >> there are many military options with our allies that will take allies that will take to defend our allies and noninterest. >> ar

we also got a rate decision overnight from the bank of japan. in a widely expected move, policymakers did leave rates unchanged at 0.1%. >> negative. >> that's right. >> which is a great reminder of how loose monetary policy is around the whole of the world, despite the fed exiting its qe program. still negative base rate in japan and europe >> the yield on the ten-year at zero asia mostly lower except for the nikkei that's just a slight move to the upside greater china also lower overnight. of course paying attention to what happened here with the federal reserve and the stronger move in the dollar look at what's going on in europe higher across the board. pretty much ever so slightly there. you can see in germany we're stronger by 0.3% in france, getting stronger here as the open wears on at 0.6% higher financials higher on reports that a german government on a merger between france's state backed bank and paribas. >>> oil prices jumped nearly 2% yesterday. they are giving back 0.6% of that today wti above $50 a barrel dollar did strengthen mar

for example, you now have the balance sheet.he the bank of japan is there he accommodative.he potential for , particularly if we get an inflation spike. i think that's another risk that thenderappreciated by market. >> what is your best idea right now for achieving some kind of deal? -- yield? >> we think from a yield loans are, bank interesting. we think quality dividend producing stocks pretty -- provide some opportunity. but you have to be careful because they provide some bid up. would not advocate stretching for yield, but there are pockets out there. movement after theresa may's speech. u.k. is a global market. today is the first stage of moving toward brexit in a real way. i think what you heard from they want tos that , but theuickly european union is basically we are back and saying going to proceed cautiously and you are going to continue to pay after we leave the european union to have trade agreements in place. area you want to be careful about from an economic standpoint. these are global companies. shery: thank you so much for joining us. vonnie: time now for o

said the bank would respond as needed to any impact of the north korea situation on the japanese economy the dollar/yen moving higher to the tune of 0.25%. that unchanged view from the bank of japan was expected also because we have a snap election this fall, most likely. and we have some delay in some of the fiscal rules. so i guess that leaves the boj in a bit of a bind that wasn't the only central bank meeting today we have norway let's tell you about what they did. they also left the key rate unchanged at 0.5%, saying there is continued need for expansionary monetary policy the outlook suggests inflation will remain below 2.5% in the coming years that said, they also said that the new forecast implies a somewhat earlier rate increase than previously stated that has led to this rise in the norwegi norwegi norwegi norwegian krona. >>> coming up, angela merkel tells supporters every vote counts ahead of the weekend election more from germany after this short break. ah, dinner. throughout history, the one meal when we come together, break bread, share our day and connect as a family. [ bloop, clicking ] and connect, as a family. just, uh one second voice guy. [ bloop ] huh? hey?

we are counting down to second quarterfinal gdp numbers out of japan. bank america, merrill lynch joining us to unpack the figures as they drop. haidi: markets have a lot on their minds, with hurricane irma, white house policy in north korea. we will measure sentiment. this is bloomberg. ♪ ♪ ,"idi: this is "daybreak asia lun in sydney. betty: i am betty liu in new york. a fast week for investors. north korea, a string of severe storms, and policy turmoil in washington. how have bond markets reacted? we saw quite a bit of buying in treasuries. bmoring in the head of capital markets. let's tackle, who is going to be the next fed chair? it seems to be get the ring steam in terms of the story. steam in terms of the story. >> it introduces uncertainty into the process. we had an understanding gary cohn would be at least as dovish as yellen was, if not more. the market was prepped for that. theuld add to come on yellenthe probability gets the nod, because it would be harder to replace her, if he does wait until the last minute. betty: yellen gets the who would you

the bank of japan after the fed, how will the fed's balance sheet unwind shape the boj when it comes ield curve control? the nikkei sitting well below 20,000, ahead of the meeting. dollar-yen hitting a fresh high at 112. should be a good day with the equity bulls. a big thursday for banks. and taiwan, philippines indonesia to wrap up the week for us, as well. it let's get to first word news with courtney collins. president trump says he has made a decision on iran nuclear deal, but will not reveal what it is. he refused to say whether he would pull the u.s. out of the accord, which is called an embarrassment to america. his iranian counterpart told the assembly that iran would not be the first to -- the deal. president says his administration is ready to help order rico as it is battered by a second major storm in two weeks. maria has weakened to a category 2 system, but still casting strong winds and torrential rain. the whole island is without power and the capital san juan is flooded. storms are expected to leave a damage bill in the billions of dollars. the earthquake in mexico ha

of la grange. three more major protests the planned in the coming weeks. but the macro administration is unlikely to budge. central banks have been guiding of the markets this week on thursday the bank of japan said it would keep interest rates steady and below zero at minus point one percent. that's in return courage banks to lend their money rather than keeping it ther. also said it would keep buying over seven hundred billion dollars worth of bonds per year. find that the japanese economy still need some support the governor's think they're doing enough to push inflation to their two percent target. yes that'll reserve meanwhile took a different route direction on wednesday still on track to raise interest rates one more time this year. but janet yellen said she would start winding down the feds born half trillion dollar balance sheet. bring a firm and to the story stimulus program. no maastricht jump to new heights after that announcement on wednesday but stocks have no slipped we're seeing right across the board. up on wallstreet this hour the nasdaq deepening its losses down point four percent at this hour the dow jones an smp a little bit last. treasury yields are also dropping back a

>> i do. >> bank of japan >> i think bah of jap al arian >> the monetary mystery here >> you know, it'smove around the world. >> it's less easy than it was. here's what j.p. morgan wrote over the weekend against an improving global macroeconomic back drop central bankers are now becoming concerned about the market's complace ensy and the risk this poses for financial stability. now we're going to do a really exciting survey of central banks around the world here's where people are and where markets sort of generally expect them to be. the fed at 1.16. the rate is seen rising over time the balance sheet is next month they're going to announce or at this meeting they'll announce that the balance sheet will begin to fall. ecb steady at minus 0.4, and we're expecting sometime in the next couple of months them to taper. the bankof england now everybody thinks they're going to be rising they're at a quarter point the balance sheet, though, is steady, and the bank of japan also steady at minus 0.1%. the expectation is that they're going to do some tinkering and possibly taper their balance she

it has been declining as the ecb has boost stimulus and bank of japan has boost stimulus as well.t is slowly rolling over. is that what we are seeing here? it is not the market does not care, but the ecb has given them some cover. colin: i think the ecb is giving them a lot of cover. clearly, the balance that the central banks across the globe have on their balance sheets is significant. even dropping $4.5 trillion to $2.5 trillion over the timeframe the fed is talking about, i could see why investors are relatively calm about it. also, i think yellen clearly gave herself room such as this is not going well, then the fed may just stop and decide they will go ahead and stop the case of bringing the balance sheet down. priya: you brought up policy mistakes, i wonder how much of that is priced into the new , slow reaction. the fact that the market thinks this might be a policy mistake, there are a lot of clients tell me no more hikes, maybe one more, that is it. and if you really think the hiking cycle is over, then portfolio runoff must continue. i think to your point is the view th

may have pulled back a bit, but you have the ecb, whose balance sheet has surpassed the fed, the bank of japanch everything under the sun in that hemisphere of the world. you have a lot of liquidity getting pumped into the market. that is why people are saying that that is not the only game in town. our people underestimating how important the fed is? this has never happened before, so how can we know how this will play out? lisa: we don't. jonathan: steve, it is interesting that you touch on 1994. the federal reserve has been conditioned by the past so much, looking at the route of 1994, lack of transparency under greenspan, that they miss what is coming because they have remained on hold so long? steve: you have a dramatic difference in approach than in the past. i'm not sure, it is unprecedented, like we have said. if you would ask me to bet, i would bet that the market will take this in stride. jonathan: chair yellen, her future, how do you think about that? steve: to be honest, i have no idea. most people have no idea, that must be significant. be a few people in the white house who know,

and what about the quantitative line we have going on because of bonds and other things by the bank of japan the tightening of the housing regulations. >> who better to discuss this then and economist who will join us in about 45 minutes. there he is. that's what we've got. thank you so much, that's it from "bloomberg daybreak: asia." our market coverage continues next. this is bloomberg. ♪ rishaad: 9:00 a.m. in hong kong. i am rishaad salamat. haidi: i am haidi lun in sydney. this is "bloomberg markets: asia." rishaad: the clients in the a's asia-pacific. havens are surging. gold surging above $1300 per ounce. brent crude jumping to a two-year high as turkey threatens the iraqi --

japan, nikkei futures traded out of chicago pretty flat. the prime minister has called a snap election. no date has been named. much of the talk is focused on october 22. the bankutes today of the july meeting. previously, they said low inflation means it is too early to discuss exiting the program. i am paul allen in sydney. more from "bloomberg technology" next. ♪ ♪ emily: this is "bloomberg technology." i am emily chang. ellen pao continues to make headlines. it has been five years since her trial against kleiner perkins became one of the most prominent cases of its kind in silicon valley. while she may have lost the suit, she helped kickstart the conversation about gender equality. she's written a book about her experiences. i spoke with her earlier and asked what her goal is in rehashing all the details down. take a listen. >> a big part of it was having so many women and men, to me and tell me how much my story had inspired them and how much it gave them comfort in the experiences they had. i wanted to give them all of the facts and the whole story to see if i could help other people through the writing of this book. and also to give this inspiring ending

bank of japan has made no change in monetary policy after its latest meeting. maintaining governor kuroda's yield at about 0%, saying the economy is expanding moderately. was 8-1. the curve yield is not enough toward the tubes and goal. a chinese conglomerate has raised the equivalent of 600 u.s. million dollars. it sold 643 million shares. that is seven dollars hong kong. final price rivers discount of more than 5% on wednesdays closing price. the sec says a hack of its database may have led to cyber criminals reaching profits. they only learned last month of possible illicit trading games. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ >> we still have japanese stocks trading new two-year highs. the nikkei is set for a second week of gains. rising about 6% in that period. eased today, keeping steady around 112 45. the boj speculated that a unanimous vote would keep the yen closer to 113. guy, that hasew push toward the 112 mark. in the nikkei index, we see tech stops -- tech stocks on

better news for the bank of japan as inflation edged higher. however sales are plunging, unemployment remaining steady, let us get more analysis from global economic and policy editor kathleen hays. what do all of these numbers mean? they seem pretty mixed here. kathleen: some of the most important numbers seem pretty strong. the retail sales are a question, but if you look at the fact that japan inflation is moving higher, it is eight months in a row that it has done this, at the most in two years. look at #btv 7942, and you can see the headline cpi, the core, the boj's may number, up to 0.7. it is a long way from 2%. a long way for -0.4. 0.2%. do not look at retail sales. health of spending was up 6% in august and fell 0.2 percent in july. a broader number in retail sales. the monthdown 1.7% on in august. year-over-year, up 1.7%. less than july, 1.9% year-over-year. let us take a look at what our fantastic bloomberg charts. here, you see the retail sales number down and household expenditures month over month. this is year-over-year. you can

us private equity firm bain capital, as well as the state—backed development bank of japan and south executive of us credit reporting agency equifax has promised to make changes after the company suffered one of the biggest data breaches in history. the hacking attack affected 143 million us customers and the firm now faces multiple lawsuits and a possible federal investigation. and home furnishing company dunelm says it's feeling the squeeze as consumer spending slows. it says sales slowed and pre—tax profits fell to £92 million. it says it expects trading to remain challenging with the disposable incomes of consumers under pressure. let's look at the markets and we've put up the dunelm price. their share prices of almost 10% so investors are like and what they are hearing. we have also put up brent crude. the oil prices up ever so slightly off the back of increased global demand and a report out today showing that global back—up stock supply is lower than expected, so that has pushed the oil price up a bit. we have also put up the pound to the dollar. apparent gains in strength agai

also, asian central banks are joining in, the bank of japan making its decision hours after the fed. e philippine central bank as well, and the bank of indonesia, they still have to cut their rates. so a lot will be going on with central banks for the next couple of days. we are definitely going to be watching the central banks. theleen hays, wrapping up situation for us. still ahead, we will talk about there actually any hope for a peaceful resolution to all of this? plus, she thinks the synchronized environment where looking at here, hsbc head of toa strategy comes on next talk about their approach to investment in the region. coming up next. this is bloomberg. ♪ ♪ david: this is bloomberg markets asia, i'm david ingles in hong kong. let us get you caught up on the headlines, a change at goldman sachs. the bank has named ken hitchcock asian region.that he is a 25 year veteran of goldman. todd will become copresident of the asia-pacific region. there is a proposal of a special guarantee against losses that might result from the ongoing battle with its partner, western digital. toshib

i think the bank of japan will stay with policies for some time and it will not all the ethics same time the ecb next and of course the bank of england has an talking about moving. i think we will see less accommodation going forward. this is warranted given central bankers have done pretty much what they could and it is now up to the rest to start following suit. old ugly things a recession is not in the cards immediately. a lot of central bank and -- bankers are suggesting the economies are getting stronger. book05, you wrote a famous talking about things that others want seeing. are not something we seeing now? are we overconfident about the economy? >> as janet and others have said, don't die of old age, they die because there are fragility's. one could be inflation, which of tighteningral bank is an attempt to ward off. the second could be financial sector fragility. probably because of long accommodation like the one we have had is explicit leverage as andave seen in china countries like canada, but also implicit leverage and positions that are hard to unwind. what we're seeing is

. >> the trick with the dollar is so much depends on the ecb perceptions, what the bank of japan's perceptionsd the bank of england's at this point. bank of england came out with interesting statements on inflation. so it represents a leveling off of the dollar weakness we are seeing this global monetary policy tightening sense. the bank of canada raised rates, bank of england suggested a rate rise could be coming do you think the fed is feeling the pressure to join the party >> join the party in the sense that trying to keep global interest rates in a path or at least at a level that everyone is consistent. it's difficult for some of these central banks now to get out of line with partners across the globe. you're right it will put pressure on them, more likely to raise rates than leave rates alone. >> to your point, inflation, breaking a streak of five consecutive monthly declines but at the same time the jobs data was disappointing >> we know the august employment numbers are very tricky because of the seasonal adjustment factors. that may have played a role there. my sense is that the job

anti-capitalist they're evil but of a central bank prints money and buys back controlling interest or huge swathes of stock as in the case the swiss national bank or the bank of japan isn't that nationalization meant yeah of course it's nationalization that they don't want to call it nationalization and you've got the european central bank has bought you know we have a chart actually that we can go to that will show you what their balance sheet looks like their balance sheet is exploded i mean it's five trillion euros in debt i mean italy has already said they're not going to repay that debt they're getting back to your point of nationalization what's happening is they're buying all the corporate bonds they can buy some of these bonds are probably joke these bonds are not called junk or high yield reason because they have a higher probability of defaulting the only thing that low interest rates and we will see zero interest rate policy in many more countries to come is that it keeps alive a zombie zombie institutions for a longer period of time rather than dealing with the market mechanism call bankruptcy which is what should happen to businesses that don't make mo

the price-insensitive buying of the long end of the curve, where they've been reinvesting, the bank of japan q.e. has been coming in, european central bank q.e. has been coming in. all of that is going to disappear. thought she was very clear. jonathan: we broke out afterwards, and we've been in this down trend through spring. dollar weakness throughout much of the year as well. now we're out of it. e've broken out to the upside. how are you thinking about the dollar index at the moment? bob: i'm thinking the dollar index has a pretty long way to go from here. we're thinking that post-election, there was a lot of optimism. clearly a lot of cold water got thrown on the markets from the administration, their failure to gain any traction. beneath the surface, the economy did fine. and throughout all of that, i thought the fed was pretty committed to normalizing rates, but somehow the market kept pushing back against that, and looking at europe, europe was doing great, by the way. japan was doing great. so money was being rotated into some of the far markets. i think a lot of that is going o com

inflation and tepid wage g issun for a long time for the bank of japan. e u.s., the white house is considering at least half a dozen candidates for the next head of the federal reserve including economists and expecting officials. bill dudley, the new york federal reserve president made it clear who he favors to lead the central bank. >> i think chair yellen has done a fantastic job. i have known janet for years and years. we are good friends. i think she would make a fine choice. i will leave it there. julie: the bloomberg daybreak america team sat down with mohamed el-erian to get his view on the future of the fed. >> this is a very tricky time for the fed, and it is running now with less people on the bench, on the team. what is the board that is being left behind by stanley fischer? this is a guy that guided the careers of ben bernanke and mario draghi. this is the father of modern day central banking. how difficult will it be to fill that void? >> it is a huge void, not just for the fed, but central banking and economic policy more generally. as you s

the latest minutes from the bank of japan show several board members losing confidence about inflationkes it difficult to normalize monetary policy while another one said 2% should be regarded as a long-term goal not necessarily achievable by 2019. however, almost all the members agreed reaching 2% is vital for japan. the bank of greece plans to start stress tests for the country's four lenders in late february to determine if they'll need fresh capital before the end of the greek bail out program. we're told banks have been asked to send information and results of the tests may be ready by early may. cutting bad loans has become a pressing issue as greece prepares for the post bail out era next august. the latest republican bills that repeal and replace much of obama care is dead. susan collins became the third gop senator to say she would vote against it despite tweets to a so-called graham-cassidy bill funneling money to states with holdout senators including maine. it's the latest failure by republicans to deliver on a promise they campaigned on for seven years. global news 24 hour

i've been talking about for most of the year has been monetary policy, central-bank support for risky assets, specifically how aggressive and accommodating the bank of japan and ecb have been, how they have been buying risk assets directly, and how that $2.1 trillion of quantitative easing the between those banks has been the real underlying support across risk assets. mark: peter, how long will central banks, ecb, boj, the fed continue this strategy of buying bonds? the fed will start its normalization next month. the ecb is probably the next interesting one, the boj seems >> a bit more obvious for now. we have been focused on what the ecb will do. our view has been after the german election, which occurred on the 24th, they may have more room to think about normalization. i think they will begin to do so. it seems like the narrative among central banks has been for normalization. we have seen surprise moves from canada a month ago. the fed is clearly talking about executing on its strategy to normalize taper. it could be surprising if the ecb did not follow suit. we recently wrote a piece about how not only is central-bank policy not helping inflation,

demand for duration still because of regulatory reasons, because of the crowding out of ecb and bank of japan qe policies. so, treasuries remain, a, a good fundamental case and, b, a very powerful hedge in case of exogenous risk shocks, such as the one we may experience when north korea or hurricane party. -- hurricane harvey. we are seeing plenty of these exogenous potential risks. and treasuries, in my opinion, remain still a good way to hedge even theirthough -- own fundamentals are still very strong. julie: we saw the drop in the 10 year yield of with the ecb decision and commentary. where do stocks fit into the picture here? we have heard so many investors say they prefer european stocks to u.s. at this point in time or em stocks to u.s. at this point in time, which are sort of international versus the u.s.. have been foriews a while and we continue to believe in that relative split. international and emerging equities look, to us, more attractive than u.s. on many metrics, not only valuations, but also the cyclical backdrop is more supportive. and the dollar weakening move will also fee

ultimately, with the fed more aggressive as you said, the bank of japan probably means the yield curveill need to stay in place for longer if we have a period.nomics derek: i think that is part of the plan. the doj will come under pressure to allow yields to move up. you have to buy more and go back to the constraints of the boj purchases. they can still control the way in which he yields are higher. market, theyn the have pricing control power. we spent time talking about that rather than are is -- of session with the ecb. worry, inflation expectations in japan are trending lower. they have been trending lower since february. that is where i looked to see what investors are thinking about abe-nomics. investors are very skeptical about abe-nomics success in lifting inflation. that tells you this has further to go. manus: thank you. our guest is mufg, head of european markets. if you're about to head out to work, you can listen to myself and the team on bloomberg radio. by latinm joined america's biggest corporate investor. later bloomberg will be speaking to hear oppenheimer -- peter o

of the combination should it come to pass. >>> back to central banks. the fed is not only central bank meeting this week. the bank of japan began its two-day monetary policy meeting today. makiko utsuda has more >> reporter: yes, it's widely expected the board will keep its easing policy unchanged. board members are seen to be in broad agreement that the economy is picking up. for the three months through june, the japanese economy marked igts sixth consecutive quarter of growth. on the other hand, consumer prices climbed half a percentage point in july which is far from reaching the bank's goal of 2 %. interest rates are likely to be kept unchanged at zero one issue that i be north korea and how it's provocative actions could affect the economy, though there was limited market action when a north korea missile flew over japan on friday tomorrow is the yun-year aone-yr anniversary of the yield curve control, a measure aimed at bending long-term interest rates at zero and keep monetary policy loser for longer that led to a 60% increase in japanese government bonds in the past year. jgbs offer a minimum annual coupon of 0.0

the ecbeen declining as and bank of japan have increased stimulus. that is slowly rolling over.that what we are seeing here? it is not the market does not care, but the ecb has given them some cover. colin: i think the ecb is giving them a lot of cover. clearly, the balance that the central banks across the globe have on their balance sheets is significant. even dropping 4.5 trillion to 2.5 trillion over the timeframe the fed is talking about, i could see why investors are relatively calm about it. also, i believe yellen clearly gave herself room such as this is not done well, the fed may just stop and decide they will go ahead and stop the case of bringing the balance sheet down. priya: you brought up policy mistakes, i wonder how much of that is priced into the reaction. the fact that the market thinks this might be a policy mistake, there are a lot of clients tell me no more hikes, maybe one more, and if you really think the hiking cycle is over, then i -- portfolio runoff must continue. i think to your point is the view that this is the unwind of the smallest ever unwind, i

the direction of a pod rat timoe policy of tightening the language will exhibit reluctance, the bank of japan with the general election coming up, certainly questions about the boj'sindependence, they will continue with their money printing operations, so i think we see the dollar range bound for the next few months. but i don't see the dollar significantly boosted by what is a widely expected event. >> just a quick final side question he made a speech this side of the pond recently. is mark carney a possible successor to janet yellen? his name is not mentioned often. >> he's not, no. he's canadian, whilst the bank of england is prepared to appoint foreigners, the federal reserve requires you to be a u.s. citizen to run the fed. >> it an outright rule or a general rule of thumb? >> it's an outright rule the only reason stanley fischer as vice chair was able to be vice chair, he holds duel sal citizenship of israel and the united states. >> i didn't know that don't miss complete coverage of the fed decision, 2:00 p.m. eastern time >>> fedex earnings missing the mark a cyberattack on its tnt ex

has been that we've seen the bank of canada, the change of dynamics in the bank of england and the one central bank keeping its foot firmly to the pedal is the bank of japan still have that stimulus very much in play. we're talking about the election providing another term to prime minister abe potentially. splendid isolation in terms of monetary policy expansion. it's been the trade of the day in the past couple of weeks in particular. , the: again, the market approval ratings have come back. disagreement,an however you want to phrase it, is monumental according to trump . to a certain extent it lends itself to this bump. absolutely. it seems as though his handling of the crisis domestically come his approval ratings have been going up. it provides them with an opportunity, sometimes you look at these factors. appears to be abe looking at the underlying dynamics and seeing it as an opportunity and utilizing it for another term. anna: thank you very much, jeremy, with thoughts on the yen. merkellor angela suggesting concern about poll showing gains by the left and right fringes at the expense of the two biggest parties. manus: she spoke ahead of sunday's

don't think you'll see one it will come in unison, have to the yen is beginning to weaken the bank of japan to move a of pieces in this puzzle >> art cashin. openin bell just happened of amd. tesla work with amd to develop cars which is obviously not only good for amd but bad for nvidia. >> followed intel's deal seemed like a little bit me too you wa to lock up your i wonder, i have to look at if you're talking about >> the bigger picture for tesla along the lines of apple making is tesla trying to keep their accord to the reports build as far the move for nvidia they a the market leader in genera they h tie ups with google a well as toyota so they are still okay in terms transa >> can you certainly make the how mu of this huge run was you don't know exactly nvidia >> yes >> apple continues to struggle here now below 155. as we said earlier in the show basica crossing th levels suppor issues with the watch and say apple remains a big one. >> it's interesting. seemed to escape that kind of now it's acting like it's just this window between and it's a noisy kind of fundamental situat for the

kind of coordination are we hearing in terms of coming through from the japanese government, the bank of japana about monitoring the potential market impacts of these sorts of tension? >> the south koreans are old masters of this. theylove to announce that are stepping up coordinated monitoring among their agencies and we have seen the headlines go through today. the south korean central banks, the finance ministry, stepping up monitoring of markets, ready to act if needed. south korea has a long history of what they call a smoothing operations in markets, to make sure that there is no disorderly moves. the japanese are a little different, it is very rare and unusual, for japanese authorities to step into markets. indeed as you point out, what we are seeing is a modest reaction. it is interesting that looking at the north korean provocations this year, the missile launches, the nuclear test, we have seen kind of an accelerated market reaction michael. what we saw -- market reaction cycle. we saw that the yen edging against the dollar, and the yen is often a haven in times of geopolitical stres

larry: it doesn't resonate in days.s these we've heard similar messages from the bank of japan for yearsy is clearly past the point of full employment inflation. we've seen similar messages unconvincing the united states unemployment at low levels and no sign of wage or price acceleration so the idea that phillips curve is alive is not a finding a willing audience amongst market participants. or: looking globally domestically, part of the story here in the u.s -- at the the year, like, this is the year we'll finally see inflation and higher rates. sounds like people have given up on the whole thing and you rates market but it seems like as you say, people are accepting that japan is everywhere now. larry: in a sense they are and as far as u.s. rates are concerned, we've come full day.e to election one of the reasons is is that people began to fade the trump fiscal stimulus story when repeal and replace couldn't be passed through congress which will give them the fiscal ammunition to cut taxes and spend money on infrastructure. then inflation proved to be disappointing which pushed out fe

the bank of japan has kept its monetary stimulus unchanged but a dovish new road -- board member opposed the decision in his first meeting. he argued there was little chance of reaching the banks inflation target within the projected timeframe and said the effects of the yield curve program was strong enough. that was an unexpected dissension on a board chosen entirely by prime minister shinzo abe. u.s. special counsel robert mueller has asked that white house for documents about some of president trump's most scrutinized actions since taking office. according to the new york times, that includes the firing of his national security adviser michael flynn and fbi director james comey. the paper said mueller is interested in an oval office meeting trump had with russian officials in which he said comey's dismissal had relieved great pressure on him. the uk's prime minister is said to be weighing whether to accept for the first time the need to discuss the european union's demand for brexit bill of tens of billions of pounds. withsa may will hold talks her cabinet before deciding how far she

at the bottom of your screen, those flights being canceled trying to deal with the , the fed, bank of japan key focus. will abe go for a snap election? u.k.'s equities are cut to underweight, and they are underweight on the minoring -- mining sector. something to bear in mind as you look at iron ore. come with me and let me tell you about the bullish outlook. this is the 12 month forward. analysts are remaining bush on the earnings story within -- bullish on the earnings story within it. they are expected to go higher and that is the underbelly of european markets. when it comes to gilt markets, will mark carney stick with his momentum that the market has gotten itself a hold off in terms of the propensity of rate hikes? they now perceive a 100% probability of a rate hike. will it be a merit. moment? this is a nice big spike higher than your government bond yields. an irrational exuberance? they want to take emergency supply of liquidity and the emergency cut they delivered, two-year yields are spiking higher. they promise, promise, promise, and the market gets ahead of itself -- they bette