we do expect the bank of japan to hold steady. corrode a say say the bankuroda of japan will do whatever it takes. say -- how heard abe do you expect japan to manage those two? shahana: currently, japan is of domesticg forces demand as well as weak external demand. this is not just the case for japan. otheran issue in countries of the asia-pacific and other parts of the world as well. the bank of japan and the shinzo abe government have already mobilized significant resources. 40% of gdp. one of the highest among industrial nations. shahana, let me jump in here because we have the boj's decision already. as expected it is maintaining its policy balance rate at 0.1%. it is also maintaining its target at 0%. the news pretty much expected. the sense is that there is no need to boost the economy. -- this is probably the most significant point here, right? shahana: absolutely. and if you also take a look or if you were to assess the effectiveness of the measures -- if youd so far, take a look at the bank lending. the bank lending has g

first, the bank of japan is the next major bank to give its view of the virus slowdown. mberg. ♪ the bank of japan may have no need to move its monetary policy gauges. but will it put more juice when it comes to the pandemic back into the economy doubling down on his lending program? our global economics and policy editor kathleen hays is here. kathleen: i am certainly not watching for any change in that negative key rate. i am not looking for any change in yield curve change. around 0% and staying there pretty well. what everyone is looking for is seeing to what extent does the boj step up the battle, the pandemic fight, to prevent a wave of bankruptcies, to keep jobs growing, to keep the financial systems stable. that is why there is a lot of speculation the bank of japan is going to double the new lending facility it announced in its may 22 emergency meeting at ¥30 trillion up to ¥60 trillion. that is what a lot of economists are looking for. it could be up to ¥100 trillion. bottom line, this is expected to complement prime minister abe's latest supplemental budget, ab

the new york fed study came out today saying, the yield curve control helps the bank of japan keep itsds down without having to buy a lot of bonds. but it has done nothing to boost inflation. it is not an effective tool on that front. you are seeing a picture of bank of japan governor, his last virtual press conference after meeting.15 we will see in the summary of opinions if the boj says anything about yield curve control and how it is working for them. paul: global economics and policy editor kathleen hays, thanks so much for joining us. if you are away from the screen, you can find in-depth analysis and the days big newsmakers on bloomberg radio broadcasting live from our studio in hong kong. you can listen via the app, bloomberg radio plus or bloombergradio.com. president trump bands new work visas for the rest of the year. a move that does not sit well with big tech. we will have the details in a moment. this is bloomberg. ♪ this is bloomberg. ♪ shery: breaking news crossing the bloomberg. kkr has raised more than $10 billion for their third asia fund. this will be on track to ha

we don't expect a change in interest rates, but bank of japan trying to head off bankruptcies, keep solvencyximum, and maybe expanding lending facilities they have out there. that might be the big announcement how to bank of japan. on thursday, we will get bank indonesia. bloomberg economics expects a 25 basis point cut, given the rupiah has provided more stability. it might give policymakers room to cut further, but that one should be interesting to hear their language about how things are going on the financial stability front and the macro level. haslinda: michelle jamrisko in singapore. plenty more to come. this is bloomberg. ♪ yvonne: hong kong to prove the reappointment of the city's first female stock exchange chief. laura cha spoke to bloomberg on what she thinks is the biggest change in the last five years. diversity is very important. is is very important, -- esg very important. we are in a unique position to not only talk the talk, but walked the walk and impose these quality and disclosure requirements on the company's listed on our exchange. it is true that role that we can prom

it is all about small businesses and the bank of japan helping them out. thleen: the bank of japan has done a lot in advance of the virus. think about the versatile bank to move to a negative rate. purchases buttf it will not really pull the policy levers today. they will take one big step in their pandemic fight. let's take a look at a chart because what are they trying to do? limit job losses. here's why. look at this chart. you can just see how the contraction that they said was the worst contraction on record, if the second quarter is negative, that will be three straight quarters so they have a lot of work to do to keep things on track. our bloomberg economics team has been told, they will not change any of the special lending programs yet. a lot of the comments are looking to double the new lending facility to businesses from ¥30 trillion to y60 trillion. the press reporting they would expand this program to ¥100 trillion. the government has also just come with a record budget record of ¥31.9 trillion, another supplemental budget. this is something th

again in the same way that the bank of japan has been doing no christo one of it to move to kind of markets here and 1st we'll start with commodities or oil really took a dive today after a surprise jump in crude inventories is persistently low oil prices kind of here to stay at least until we see all that travel and everything kind of pick back up after the crowbars paid emigres over which we don't know this may still be another year to 16 months out. so i think the persistently low oil prices are going to be here to stay because right now indications from the a.p.i. data shows us stocks built up quite a lot between both crude and distance and total crude stockpiles including commercial and as i mean by about 8000000 barrels now that's the 2nd largest buildup in the past 6 weeks that we had and today you have goldman sachs also issuing a warning that the bounce in oil may soon be over and that it was completely overdone and the u.s. shell industry will start hurting again from another sharp fall in oil pricing coming in the next few weeks so we already see this happening in the stock marke

the bank of japan increased its estimate of the size of its virus response. ♪ manus: this is "bloombergbreak: europe." central banks have got swag today. the rba says the economy will likely need policy support for some time despite improving signs. the central bank released minutes of its june meeting when it left the benchmark rates bond yield target at 0.25%. the boj revise the estimate for the size of its virus response measures to around $1 trillion. the central bank pledged to do more to help if needed. it left rates and asset purchases unchanged. the boe meets on thursday. it is expected to focus on its quantitative easing program. manus: the head of investment strategy at rbc wealth management is with us. if we look at the central banks, this week is about australia ready to do more. the bank of japan with a trillion dollars. trillion seems to be the number of the day from the u.s., boj, and the u.k.. as you assess the fiscal responses from various portions the world, does that drive any of the apportionment of capital for rbc wealth management? >> we see it generally assets.ve

in terms of size, the fed has put no caps, the bank of japan there are caps, where size limitations innd the breadth of the actions. if you are taking a balanced look at the fed actions, bank of japan actions, ecb actions, positive,t vertically they are probably lagging some of the other economies. i would expect a continued spread-- widening of the because of the fiscal actions, in terms of their speed and size. amanda: that was at merchant capital ceo bob diamond. it looks as though canadian banks are upping their exposure to the canadian energy there. loans to the sector were up 23% in the second quarter. doug alexander joins us now. what does this say about the fact that loans are up, what is the nature of the lending? doug: that is the exposure they have the oil and gas that are. it's important to recognize these may not necessarily be new loans to the industry. the banks have effectively with the companies they are london tube. is awe are seeing happen case of companies tapping into these credit facilities. can we see this is a sign of optimism, or is it simply ongoing business,

the bank of japan comes into play here. creasing lending to businesses, they went from $700 billion to $1 trillion in aid from the bank of japan. jeff bezos set to make his first appearance before congress. cheryl casone with those details right now. cheryl: it's going to be something. good morning again. according to the new york times, amazon lawyers told lawmakers bezos will testify before the house judiciary committee as part of this anti-trust investigation into big tech companies. lawmakers are expected to ask bezos to respond to claims that his company used its power against small businesses that sell on its site. those third party sellers. and he will likely be asked about alleged mistreatment of warehouse workers during the covid-19 pandemic. that hearing which could include other big tech ceos expected to take place sometime this summer. ahead of the opening bell, shares of amazon are up a little more than 1% right now. united airlines rolling out a strict new face mask policy starting this thursday, if you're not

. >>> the bank of japan corporate financing from 75 to 110 trillion yen.he money will back a program under which banks offer interest free loans to small and medium sized firms. the central bank wiill stick wih its policy of buying unlimited amounts of government bonds to stimulate the economy. >> translator: we will not hesitate to drop additional easing measures if necesessary, althouugh it's not known how log or to what extent the impact of the coronavirus will continue. the financing support program could be beefed up again. >> investors welcome the move, driving tokyo share prices sharply higher on tuesday. the benchmark nikkei average ended the day 4.9% up from monday's close, the third largest daily gain this year. one market analyst says investors rushed to buy back shares after the index shed more than 1,500 points over the previous three trading days. still soft prices are expected to remain volatile due to fierce over a possible surge in coronavirus infections in japan and abroad. >>> also in japan, a former justice minister is set to quit the m

of cpi, core cpi for japan in negative territory. joining us for more insight on those numbers is bank of america global research head of japan economicsi devalier. great to have you back. the core cpi number is worse than expected. but of course, given the cratering demand, it may not be surprising. we also have the d.o.j. seemingly giving up, for now during the pandemic, the inflation target. izumi: yes. i think overall, in the april and tokyo may cpi, we saw a pickup in inflation on because there was a huge demand for so-called stay-at-home products like rice cookers and home printers. but this is not a sustainable trend. think about it, 50% of the cpi in most developed economies is services. across the services sector, such as restaurants and hotels, you are seeing tremendous downward pressure. i think over japan is handed for a modest about of deflation or disinflation. the worry should be about this inflationary pressures, not about inflationary pressures right now -- the worry should be pressures.flationary shery: how much of this goal has been delayed now of the inflation target? izumi: i don't think even before the coronavirus

we see they are helping that with the corporate bond intervention from the ecb, the bank of england, the bank of japan, and the fed. manus: hold those thoughts. the led trade is lit. martin malone stays with us. let's get you up to speed with first word news. morepence is warning of people testing positive for coronavirus. the concerns echoed those of texas governor greg abbott. the state may pause or reverse its reopening as the pandemic continues to spread at what he calls an unacceptable rate. johnson is, boris set to move onto the next step for listing the coronavirus lockdown. the move is expected to get the green light for museums in england to open july 4. the prime minister will also alvingce whether he is hl the social distancing rule. a high-level videoconference. tensions have risen. the leaders criticized china's plans to curb hong kong autonomy and discussed beijing's handling of coronavirus. --bal news 24 hours a day global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. nejra: coming up, v-shaped

from the we also heard bank of japan that it's unlikely we will see an interest rate hike for police two years. would that be a best case scenario for much of the developed world? powell already said we would see them lower for longer. that message is can the come from the central banks across europe and asia. struggle,rates are a particularly for management clients for generating income. that's an area we are looking for opportunities to keep their income flow. when you look at currencies, it depends on what the dollar does. what's your take on what the dollar does the end of the year? i think we are less bearish on the dollar than some. the out view is that it will hold up better than some and so consequently we think the dollar will hold in the short term. particularly against sterling which is the currency we have most of our assets in. i think it will hold up reasonably well. francine: what is the one thing you think looks either too expensive right now to own? julian: the one thing i definitely don't want to own is airline, and he do with hotel operators or airlines i would avoi

they could go on a similar path as the bank of japan and buy equities. this is very controversial. they will do that before going into the negative rates territory. francine: when you look across the world, how difficult is it to see the u.s. matching with europe, economies that work in cycles. doesn't mean they will recuperate much quicker? lot: i think actually a depends on the reopening itself. the u.s. has been reopening faster than its rate of infection would suggest. many states are seeing a rise in infections. think economies reopen, i now, is more positives more positive policy with the message in europe in terms of national support and national stimulus, particularly in germany. the fiscal bank is no longer fighting the crisis but it is more about growth measures. it is not positive just in the longer-term and the euro area. andcombination of reopening this fiscal signal bodes well for the euro area recovery. , there has been a of monetary support, but i worry about the looming fiscal cliff in terms of unemployment insurance expiring in july. and another fiscal package is

the bank of japan governor has issued a new warning about the annomy, saying it is extremely severe situation. he says gdp is likely to see considerable negative growth, and it will take a long time to achieve the banks inflation target of 2%. the governor is focusing on how to maintain stability and provide funds for hard-hit businesses. liverpool has ended a 30 year weight for the english football champion, taking the title when manchester city lost to chelsea. it is liverpool's first championship since 1990. fans were barred from attending matches amid coronavirus restrictions. this is the first to clinch the title with seven games remaining, and the first two win the crown in june. at social media, liverpool is going nuts. let's talk about the virus story and how it pertains to the markets. we are wrapping up with a tumultuous first half. mobile virus cases approaching 10 million. approachingus cases 10 million. as this crisis evolves, where our opportunities? asia-pacific and broader em space? overseasguest sees -- $25 billion. joining us now is manraj s. sekhon, cio emerging markets equ

the only balance sheet in the world that compares is the bank of japan's. anna: let me ask you about what is going on in the u.k. jobless claims numbers rising a lot less than the previous month although that was rising substantially so perhaps that takes the shine off a little bit. we saw the pound heading higher in the asian session. was this a short squeeze or was this something -- risk appetite increasing generally. is it just that or brexit news? mark: a combination of the risk mood, which was pushing the dollar down. that was helping the pound. most currencies have had a decent gain for dollars in asia including the g10 currencies. some talk that boris johnson is softening his stance on the talks of the e.u. he appears to be more willing to find a compromise and there could even be something done by the end of july. that news came out in the early asian session. that certainly helped the pound. the pound did outperform some of the other g10 currencies in asia so that is probably a sign that the brexit news probably did play a part in the pound's perfo

this kind of scenario >> it is unprecedented we are doing an experiment right now where we don't know the outcome. japan is further ahead if you look at all the etf holdings in japan. the bank of japan owns 75% of them the may may not just be the qe, they are already buying equities there is going to be consequences inflation is the ultimate end point. you have to print new money to payoff old debt. we've got deflationary measures. supply is coming back following demand people are going back to work because they have to but staying in a little more than they would have otherwise the end game may turn into helicopter money, which is more equity that is when you'll get real goods and real higher inflation. it is an experiment right now. no one knows in fact where the end game will be >> patrick armstrong, thank you. we appreciate it >>> coming up on the show, a new survey about optimism on a covid vaccine. what investors are saying right now about the likelihood there as we head out to break, take a look at this morning's s&p 500 leaders and lagardes coty, net app carrier global among the gainers there. stay tuned to "worldwide exchange" here on cnbc - [narrator] the shark va

a policy pioneered by the bank of japan. what are the prospects for yield curve control?> we think the situation is different. u.k. is the the opposite. we don't think they are going to go to yield curve reversal yet. they are more likely to go to negative interest rate. , i don't think this is very soon. if the covid-19 epidemic was getting worse in the u.k. or if thee was policy related to brexit negotiation, this is a big topic for the u.k.. prime minister johnson did not want an extension of the deadline. one of the consequences of this they will havet to reach an agreement before the end of the year. negotiation was much better. what we think is they will reach an agreement with the european union. this agreement will probably, the last-minute. sometimes november of this year. there will be some volatility between june and november in the negotiation because nobody has an interest to show they have given up for political domestic reasons. is volatility also in the u.k. in the meantime. anna: -- nejra: i have spoken to people who see opportunities both in the pound an

francine: when you look at central banks around the world, the ecb, bank of england, the major ones, when you look at the bank of japannd the fed, who has the toughest job? i think they are all in a very difficult situation. think -- it is difficult to say who has the toughest job but i would say given the environment in the u.s. and the divided political landscape, i think there are significant risks about going forward how the central bank will be able to navigate this environment, so in that sense, i think chairman powell has a very difficult environment to navigate, maybe more so than other places where the political landscape is a little more stable. francine: jean boivin, head of the blackrock investment institute. a flop for president trump in tulsa. behind joe biden in national polls. this is bloomberg. ♪ francine: this is "bloomberg: surveillance." a disappointing crowd for president trump's much-hyped campaign rally since the current -- pandemic in america. his campaign manager boasted one tickets, bute for there were just 6000 people inside according to the fire department. >> you are warriors. thank you. w

the bank of japan announces its latest monetary policy decision, not expecting to take far-reaching measuresg unlimited bond purchases. one wednesday jay powell delivers his semiannual monetary policy report to the house financial services committee. thursday is another big day for central banks. the bank of england and the 6 -- swiss national bank report their rate decisions. today marks risk off. bloomberg surveillance continues in the next hour. tom keene joins me out of new york. this is bloomberg. ♪ francine: stocks fall on fears of a second wave of coronavirus infections. beijing reports a fresh outbreak. 20 u.s. states see a rise in cases. europe reopens its borders. france, germany, and others remove travel restrictions within the e.u. to spur tourism during the key summer months. britain's non-essential shops open today. and china's economy continues its slow recovery. industrial output rises, though the number falls short of estimates, and retail sales data is still shaky. well, good morning, everyone. this is "bloomberg surveillance." i'm francine lacqua, here in london. tom keene

speculation is mounting that it could pose yield curve control in the coming months pioneered by the bank of japang us is chris southworth, the secretary-general of the international chamber of commerce, u.k. when you look at what the u.k. needs right now, what would you be asking the government? chris: i think we have to see this as not just an economic crisis, we are in a global transition, more digitized, greener, and more sustainable economy. i think the recovery needs to now really look at these areas of policy and integrate those into -- fill them in, if you like -- into the response. to do that, we need to strengthen the collegiate nature and how we are all working with government and government in reverse, not just with business but with unions, workers, the civil society, consumers. the only way we are going to recover and bounce back fab -- bounce back faster is if we are going to do this together. francine: but we need concrete solutions, chris. if you look at how you get people back to work, and this is at the end of the furlough scheme in many cases. what is the one thing you think wi

the yen has the bank of japan on their accelerator.e have yen they will talk on the currency and looking to do something to weaken the currency. when it comes to the euro, it is a different ballgame. the expectations of growth in europe are improving and we have had months and years of underweight's in european equities. i think that might start flipping for the first time. when it comes to the dollar, i have become -- i have been a dollar bull. what has changed is that the fed have been so much in terms of expansion and the double deficits have expanded in the u.s. as well. we have had all of the good news for the dollar over the last couple months and it has strengthened -- not strengthened as much. now, we are getting the bad news for the dollar and i think that will have legs. the dollar should selloff. we are looking at 113 to 115 and the couple weeks. francine: what do you do with pound so far, we have not had much on these eu/u.k. talks on brexit. jordan: in the next 30 minutes, we hear from michel barnier as we -- if we had pro

in terms of size, the fed has really put no caps, the bank of japan has put no caps. and also the breadth of the action. if you are taking a balanced look at the fed actions, japan's actions, while they are unequivocally positive, they are probably also lagging some of the other economies and i would expect there to be a continued spread between the economic recovery in europe versus that in the u.s. because of the fed and the fiscal actions. in terms of their speed and size. just picking up on part of is it ok that, financial markets are rallying in the way that they are at the moment? given what is happening in the real world. be it covid-19 or the race riots taking place in the united states? does this reflect well on the financial sector? we can all understand the logic behind it, markets are not moral creations, but nevertheless, the gap between reality and financial markets seems to be growing every day. is that ok? >> i would say it this way. all of us are struggling to try and figure out the answer to that. the way i think about it is this. is a -- as a former

bank, in terms of money supply. we are up significantly, year-over-year, and we are seeing much greater increases than the bank of china, bank of japanecb. and it is needed. a v-shaped recovery is not still our base case. it is more like the square root where we come up sharply and then see a slow climb. the fed will do the appropriate monetary policy. in some sense, their job could be considered a little easier, but don't just look at one data point and extrapolate all the way to the future. there is still a lot of volatility in terms of data and in terms of the economic landscape in the next several months. how big have to wonder the revision can be next month. it could be absolutely enormous. constance, stick around. we still need to carry on this conversation and adjust what we have learned today, the implications for the u.s. economy and by extension the global economy. constance hunter, chief economist at kpmg. the market is flying. the dow is up nearly a thousand points. boeing is up by over 200 points. massive week15%, a for boeing and airline stocks. nasdaqot only that, the 100, record high. the nasdaq surging to surpass its

the extreme would be the bank of japan and japanese government bond market. easury department is nowhere near like the jgb or the boj. you can see the direction of travel. you have to start thinking about what the exit strategy looks like. i have no idea what the exit strategy looks like. lisa: and frankly the fed does not either although they continue to say they will have an exit strategy. i want to go back to what you are saying. that is that fed policies seem to widen the gap between the wealthy and the less wealthy. the question i have is you are right to point out the measures were necessary to the economy did not completely tank, but doesn't take pressure off washington to extend unemployment benefits and take additional measures to support the economy that might have the opposite effect in bridging this gap. ,hat is a legitimate focus area especially as the federal reserve continues to double down on their policies. tom: -- jonathan: i cannot agree more. here is the big issue. the federal reserve tries to help issues like employment, tries to keep cred

the ecb on the bank of japan, for example. fed really needs to be careful not to let up on the accelerator to fast. we are coming up on about a half-dozen years where inflation ran below the 2% objective. the fed really doesn't what to allow that to perpetuate. tom: you are channeling professor blanchard, who has appeared with us many times. he said the same thing. there can't be fear of wreathlaying. evidence --ee any of reflate thing. but do you see any evidence that we can, policy wise, reflate in the future? david: i think we've got a tremendous amount of practical experience from the real world. this isn't just theoretical stuff that takes place in the graduate seminar room. banksw that if central put their foot on the enoughator pedals hard and make clear they are absolutely determined to achieve their objectives, results will follow. banks havet central to take responsibility for the outcomes, and if they persist, they will achieve those outcomes. criticallyw how important it is that those objectives be met because the

by the united states that lead to the fed treasury, of course, and on some current usage by the bank of japan it was to awant the committee with what it is and why some other central banks have used it we have not made another decision to go forward on that we repeatedly look at negative rates, but in the case of negative rates we decided it is not something that we think is attractive for us here in the united states. and it was to see if it could be useful >> the only thingly submit ma it a question for what i consider to be the donut hole travel, lee sure, hope tells those fist into the crisis are going to be the last out i don't think the treasury has the authority they need for a facility for them. >> thank you for being here with us today we're facing an economic crisis that is facing businesses and families across the country. two weeks ago many people celebrated the latest job numbers. but we're not going to be able to build a successful recovery if we don't understand the scope of the problem so i wanted to dig in just a little bit today are jobs coming back at the same rate for both

23rd back when we saw the markets hit the lows earlier on in the year when it comes to japan, the bank of japan is hitting it and down 3.5% and the kospi down by 5% and we're also watching disappointing economic data to come out of china as well as industrial output rising in may year on year that was below the expectations. around about 5%. retail sales, also weaker than expected declining by 2.8%. the expectation had been for a decline of 2%. better than what we saw in april when retail sales were down around about 7%ment all in all the china market holding up. down by just over 1% >> thank you very much also new this morning, concern over rising hospitalization in some u.s. states. >> more on your top headlines to start this week. >> good morning to you you're absolutely right. originally not a primary u.s. hot spot for the virus over the weekend alabama reported a record number of new cases for a fourth day in a row. arkansas, california, reporting record numbers of new cases over the past three days as well. a spike in cases could be related to increased testing what's more troubling for o

bank of japan opens a two day meeting on monday and expected to leave policy unchanged as the coronaviruseekends in an already struggling economy. the boj will leave asset person -- purchases as they are as they see the impacts already underway. policymakers don't see a pressing need for major changes at this time. australia is to announce a new infrastructure spending later to kickstart the economy in a era.virus prime minister scott morrison will lay out plans across the country with the equivalent of one billion u.s. dollars being allocated to shovel ready projects. he says he wants most parts of the australian economy back up and running i the end of next month. next month.d of th virus lockdowns and worries with e.u. saw the gdp back where it was in 2002, after plunging by a record 25% in february. the u.k. economy is expected to recover, but is still seeing facing one of the worst recessions in the developed world. north korea is threatening military action against its neighbor as cross-border relations sour rapidly. kim jong-un empowered his sister says the next move against a soul

so low you have to do something else and many of the central banks around the world now are engaged, the us is doing unlimited bonnett bay, the bank of japaning catch up with elsewhere and ultimately may have a bigger task because they have a bigger task because they have more fragmentation within the euro area, germany and the netherlands and others may be fine with borrowing costs at these levels come you have areas like italy and spain where they have enormous debt loads and have been hardest hit by the endemic and if the ecb doesn't do this their borrowing costs will go up quite severely and that could cause far more severe consequences further down the road. you talk about central banks around the world. we have the us jobless figures which will come out later. no doubt more bad news. the extent of it we will find out in due course. presumably then possibly a further knee—jerk response likely from the us to that. potentially. we have to remember the central banks have done so much at this stage was not 0nce done so much at this stage was not once upon a time they said we we re not once upon a time they said we were cutting interest ra

japan ended the day up almost 596 japan ended the day up almost 5% higher and that is because the bank of japanasures to support businesses and companies injapan. you can see the nikkei down by half a percent, hong kong flat, australia up by 4.5. markets are australia up by 4.5. markets a re really australia up by 4.5. markets are really volatile in either direction right now. let's have a look at what happened on wall street the night before so you can see the gains still strong in the united states. we are seeing several days of rallies on wall street. they are not perturbed by whatjerome powell had to say but of course there isa had to say but of course there is a lot of speculation that the us government may announce a$1 the us government may announce a $1 trillion infrastructure spend. that is been reported so thatis spend. that is been reported so that is giving markets a boost as well. in a slightly surprising move the us commerce department has decided, it will alllow us firms to work with huawei on setting standards for 5g innovation. karishma vaswani is following that story from our a

the bank of japan's latest quartetey surveyy shows t that business confidence among large manufacturersed to the lowest level in over a decade. it shows that

the bank of japan provided trillions of yen to domestic lenders to offset the coronavirus fallout.kre bankers willing to deeper negative rates if needed? kathleen hays is here with both sides of the story. not really surprising given how long these banks have been squeezed with these negative rates, especially regional banks that cannot even go abroad? >> i want to applaud our tokyo weaker team for talking to senior bank officials and really digging deep into this. of course, we can understand that basic point. it is a crisis. maybe the boj will have to do more, push that barely negative key rate of them a bit more negative. you guys have received ¥75 trillion. that is $700 billion to prop up lending during the pandemic. instead, bankers made it pretty clear, senior bankers across the board, that the negative rates, first of all, should not be lowered forward and basically, they should be eliminated altogether. as shery alluded to, they are main beef is simple. it has eroded profit margins. here is what the head of the japanese bankers association and the cochair of mufg said when

you have this unprecedented global stimulus, whether coordinated or not, bank of japan, the treasury,place and the economy is awash in money and liquidity so certainly that drives enthusiasm and buttresses, if you will, the marketplace. the other is really micro. there are winners, if you will, from the situation i ha you have companies like zoom and shopify that are trading at multiples unprecedented. zoom's multiples, 1,200, 1,300 times forward earnings and that makes up a larger part of the index if you will. so it looks like the indexes are coming up. you see the winners and losers as well, so much liquidity and the stimulus -- >> yeah. we want to note that you spoke today at the piper sandler global exchange. your trading numbers are up huge you're one of the biggest market makers in the world. i wonder if there's a sign the retail trade strbak. ameritrade reported a big increase in accounts, schwab as well is there any sign this increase in trading is do to retail traders and more accounts being created? >> certainly, that is part of the phenomena in the united states it's exces

it might just be in this environment of the bank of japan running for so long, the yield -- just arolifferent investor behavior. money coming out of japan is less likely to come home in times of crisis so there is a structural change, although not a radical shakeup of safe havens. haidi: we always appreciate your time. sean callow there with us. lots more to come on daybreak asia. this is bloomberg. ♪ helor: president trump says will discuss ideas to revamp police tactics even after demanding the law and order approach to the protest of the death of george floyd. he has criticized democrats over calls to defund the police. our reporter jordan has the story. byyou think this new tactic gentlesident calling for handling, do you think that strategy will work? >> i can tell you what has not worked for him is what he has been doing up to now, which is hammering away at the law and order approach. you have seen his poll numbers bidenn compared to joe who saw his numbers go up. he was down in houston today the his family -- with family of george floyd before the funeral. he is trying to capt

that is what we have, the 10 year yield, close to zero as the bank of japan targets that particular yield dollar strength, fractionally. streak as we break the of dollar weakness of late. taking a look at the euro, the yen going below 107, strengthening the 107. the australian daughter -- dollar, one dollar 27 as well. some of the major markets, let's have a look at the first word headlines. we have a second wave of rotavirus cases in the u.s., this is as states emerge from lockdown. texas reporting 2500 new infections, the highest one-day total. texas is announcing four straight days of infections. 112 thousand people have died in the united states. pandemic may cause a global slump. u.k.ast 6% even in if the will be hit harder than other leading nations with a decline of 11.5% and the loss of 2.5 million jobs. warning any second wave could mean an even worse worldwide contraction. in global gdpine we foresee in 2020 is larger by far than any we have projected in the 60 years since the oecd was created. economic data out of new zealand showing spending surging after the lifting of the lo

on tuesday, the bank of japan announces its latest monetary policy decision. ed to take any far-reaching measures. the yield curve control is something of an export theme. another big day for central banks. thebank of england and swiss national bank announcing their rate decisions. up next on the program though we are 26 minutes into a very negative trading day for the european markets. indeed butnegative we will talk to somebody when we come back about venture capital. which youndustry in have to have at least some kind of optimism. we will get his take about how to do this business during the coronavirus crisis. this is bloomberg. ♪ anna: welcome back to the european market open. we are a half hour into the trading session. it is gloomy news if you are long in the markets. once again, concerns around a second wave and what that will do to economies globally. the stoxx 600 is down by 2.4%. the focus of the market is on aeas we are seeing talk of second outbreak and to some degree, outbreaks of emerging. from a sector perspective, what is interesting about this

very experimental in even for the bank of japan but now investors are more willing to consider the idean seeing in the yield curve in the u.s. and in general does seem like a bit of a return to normal functioning in bond markets where you see a longer steepening as a response to what we have seen from the central in terms governments of monetary and fiscal stimulus. , that "normal" times would be a perfectly reasonable reaction. but of course we are not living in normal times by any means so it is worth questioning what is driving that long steepening beyond the usual inflation driven factors. matt: thank you very much for joining us. kristine aquino who leads our mliv team here in europe. speaking of right now, we are seeing equity indexes that are lagging for the most part. we do see a little bit of a mixed trade here with the ftse and the ibex 35 barely treading water that the dax is down a little more than 100 points and the ftse is down 20 five. this comes however after some really decent gains over the last few weeks. and months. in some places as you were saying earlier for examp

at the bank of japan two basis points above it. 2% there. brent crude continuing slightly lower.en the trend the last two or three days. ts for brent.68 cen and their ago. aussie 10-year yields approaching 1%. part of a mixed picture for equities at least. i suppose people are taking stock, pardon the pun, of this risk rally we have been witnessing of late. haslinda: and what a rally it is. what a rally it has been. that --ry to hang on to those gains. the index of just .2%. the back of losses in the u.s. ahead of the fed meeting on wednesday. sentiment remains a negative. --estors perhaps take talk take stock of the risk. the asx 200 down. china largely has escaped the bear markets amid the pandemic. the kospi up .2%. off the jobless rate jumping to the 10 year high in may. the hang seng unchanged. -- cafÉwe are giving which resumes trading today. some of those early gains. hong kong shares pretty much compelling in terms of valuations, cheaper than the s&p on a price-to-earnings basis. flip the page. southeast asian stocks. asiaber, southeast equities among the first two tank d

we are hearing from bank of japan's governor right now, talking about the japanese economy being in anere situation. recoveryinks economic in the second half of 2020 is not so unlikely. and you and you know, pretty extraordinary to see risk asset prices creep up ever higher. trade,uple of minutes of .4%. we while -- we will watch for qantas, it completed an international placement after restructuring plans yesterday and job cuts. the bloomberg dollar overnight, the kiwi, 6889. the kiwi creeping up this morning, expectations it seems for markets that more stimulus will be offered. ye setn to the kiwi resume trend on the back of stronger milk prices, up .8%. let's get insight when it comes to state of play, jeffries chief global equity strategist sean darby joins us. at this point, what assets are still sensitive to the worsening of the pandemic situation? sean: that is a very good question. i guess two things. areainly, when countries failing to control covid-19, currencies take by and large the biggest hit. we certainly saw that through latin america and parts of the emerging markets.

of japan. kospi futures pressured to down 1.25%. coming up on the next hour of "daybreak asia," china student pmi data due out later. deutsche bankll see a much stronger expansion. have sp nexis's representative to talk in the second half. this is bloomberg. ♪ >> good evening from the global headquarters in new york. sydney.'m in asia's markets have just opened for trade. welcome to daybreak: asia. our top stories, hong kong faces more uncertainty with the u.s. revoking the special training status. washington says china's grip and are not -- undermines the traditional autonomy. the city has been battered by protests, the pandemic, and fallout from trade tensions. businesses are failing and tourism has collapsed. confidence is shocked. beijing is expected to confirm the sweeping new security laws for hong kong later tuesday after imposing visa bans on americans they say are interfering in their affairs. shery: japan, south korea, australia coming online. let's get over to sophie in hong kong. are seeing boost to the upside for japanese stocks after falling to the lowest in two weeks since monday. index has pulled back from the jun

bank of japan opens a new meeting later monday. is expected to leave policy unchanged as the coronavirus weakens an already struggling economy. analysts say they will raise asset prices as a test the impact of measures underway. sources inside the banks a policy makers don't see a pressing need for changes at this point. global news 24 hours a day on air and on quicktake by bloomberg powered by 2700 analysts in more than 100 countries. still ahead, 10 ghana equities forcefully you stephen glass on what he calls the inconceivable things happening in markets. emerges to evidence support the claims of a set up. we will get those details next. has alwaysos ghosn maintained he was set up and now there is evidence that could support the claim. our managing editor joins us now. what are the key discoveries in these documents, what is the context of his downfall? >> it has long been suspected himselfrted by ghosn that this was from nissan it self. from the information we have gathered which includes emails from executives and people who we

war ii and then after, to lead the fed treasury accord, and also on some current usage by the bank of japan and the reserve bank of australia, really just to acquaint the committee with what it is and why some other central banks have used it. we have not made any decision to go forward on that. , thest was -- it is a tool same way we have looked at negative rates. repeatedly, we look at negative rates. in the case of negative rates, we have pretty much decided that that is not something we think is attractive for us here in the united states. yield curve control was more let's educate on what it is, and decide whether we think it might, under some circumstances, be useful. sen. tillis: mr. chair, the only thing, i'm going to submit maybe a question for the record about what financial policy we should be pursuing for what i consider to be the doughnut hole -- travel, leisure, hotels that were first into the crisis. they are going to be the last out. i don't believe the treasury has the authority that it needs to come up with a facility for them, but i think it is critically important. thank

what helps here, the bank of england is talking about a negative rate. bank of japan we just had a negative policy rate i don't think the u.s. can be an island apart from the other countries. that is why i think the federal funds rate is headed to the negative region. >> so nancy, if you listen to sri, all the negatives, they've been out there they're obviously present. but if you real quli worrily wot that, you would have missed a 46% move higher off the march lows solt what do you do with it now given that we still face the sizable risk that's sri laid out there and we've already seen such a big rally >> yeah, sayer why i wrote in my notes that this is the most difficult market i've had to navigate in my career not the down side but the upside moves. because it isn't directly being driven by fundamentals it is being driven by liquidity as we know what we're doing is we're leery of the bond market at this point. so we're staying long in our equity portfolios and doubling down on our puts on the s&p 500. we have increased it twofold and that's the way that we are ensu

thatat the bank of japan, economy has been mired for almost 30 years. japan, in tokyo has been buying equities. policyows that monetary has truly come a long way in 100 years since the founding of the modern federal reserve. new innovativend tools. we do not know if they are going to work. we have to do it and revisit them every now and then. host: you mentioned the fed deciding yesterday it would buy you corporate bonds, could explain for those who don't follow this kind of policy what does that mean? corporations -- just like you take out a loan, you want to hook house, you are on the to pay interest payments to the bank. corporations are on the hook to pay interest to creditors. ahead ofwell shareholders and the like. you are solvent as long as you are current on those interest payments. when the economy tanks and revenue takes a freefall, whether you are a restaurant change -- chained, you are in a crisis. you need to husband that cash and make payroll to keep the lights on. it is crisis management and triage. corporate prioritize bond payments as m