the boj is saying the boj will continue to ease the policy until 1% inflation target is in horizon. but it is very unclear what it means. so if the boj changes the wording, say that the boj will continue easing until 1% inflation target is achieved or the 1% inflation is achieved stably. that is a much clearer message that the boj would want to get out of deflation more seriously. >> reporter: kanno also shared his forecast of the bank of japan's possible move at its next policy meeting on october 30th and the likely market reaction. >> boj is likely to increase the size of asset purchases by 10 trillion yen. the market participants have already priced in that boj would do something at the end of this month. if the boj doesn't do anything, then probably the yen will be stronger. the second option is that the boj may cut their interest rate on the reserve. excess reserves held by the banks as the bojs. the third option is just a change of the frameworks and to affect the inflation expectations or the market participants' mindset. if they believe the boj has become more aggressive tow

boj watchers say they could take some kind of action. they are expected to discuss more monetary easing measures at a policy meeting next week. it will mark the second straight month of taking such steps. policy makers are expected to discuss whether to expand an asset buying program at the policy meeting next tuesday. the current amount is 80 trillion yen or about $1 trillion. that will include buy more exchange credit funds. the central bank says the japanese economy is getting weaker due to an economic slowdown in china and other countries. the bank of japan expects its goal of pushing up consumer prices by 1% cannot be achieved within two years. it's time to check on the markets. the dow jones gained after two days of decline. the key stock index ended .2 of a percent. we cross over to ramin who is at the tokyo stock exchange. what can you tell us at the o n open? >> reporter: consumer price index for december was down 0.1%. this marks the fifth straight months of declines for cpi. let's go to the opening level heers f here for this

maehara was the first cabinet minister in nine years to attend the boj policy meeting. >> translator: i have a sense of crisis about the continued strong yen and japan's inability to get out of deflation. i wanted to convey my view to the bank of japan by attending the meeting. >> he said the bank of japan's independence mt be respected. maehara also said that he will continue to anticipate the central bank's actions for aggressive monetary easing to achieve the targeted rise in consumer price levels. boj governor masaaki shirtakowa was asked by a reporter if he felt pressure from the government when maehara attended the meeting. he refrained from answering the question directly, but he said he believed it's important to have a cabinet minister seriously listen to discussions on monetary policy. he added the bank will keep in close contact with the government to try to pull the country ow of deflation. >>> a possible end to western sanctions is in sight, but foreign companies are already setting up shop in myanmar. they include firms from china, south korea, western nations and japan.

boj branch managers say industrial production declined in these eight regions. they point to falling exports of cars and other auto-related products as a result of the global economic slowdown. they also note that personal spending fell in all the regions because government subsidies for eco-car buyers ended and winter clothing sales were weak due to the lingering summer heat. the boj managers also reported on concerns in their regions that the recent tour cancellations by chinese people over a territorial dispute could hurt the local economies. >>> japan business federation chairman heerema sue chairman points to the country's tough economic conditions. he says business sentiment among corporate executives has been cooling down. yonekura notes that slower growth in europe and china plus the yen's strength are taking their toll on japan's economy. >> translator: we don't expect the government to boost spending. i think re-regulation is the only possible way to restructure the economy without fiscal action. >>> here are the latest market figures. >>> south korean

the boj decided to keep its rates as expected. pc makers extending a losing streak, but media tech gained 2% on strong earnings growth outlook. south korea kospi also closed marginally in the green. samsung electronics had a volatile session after reporting record q3 operating profit, ending higher by 0.2%, but l.g. display tumbled 4.5% after a downgrade on profitability concerns. australian miners and banks leapt support to the sx 200. sensex bucking the upward trend, now lower by 0. 7%. back to you, ross. >> okay, thanks for that. so china shares getting back to action on monday. that's after a holiday week. investors will get a chance to react to the unspiraling pmi data for september. what can we expect -- the chinese market's been a big underperformer this year. can we expect when we get back to action next week? >> well, next week perhaps not all that much. i think there's a little bit of a positive signal there from tourism internally in china, in terms of spending, there's a bit of as positive. in terms of better export or

maehara was the first cabinet minister in nine years to attend the boj policy meeting. >> translator: i have a sense of crisis about the continued strong yen and japan's inability to get out of deflation. i wanted to convey my view to the bank of japan by attending the meeting. >> he said the bank of japan's independence must be respected. maehara also said that he will continue to anticipate the central bank's actions for aggressive monetary easing to achieve the targeted rise in consumer price levels. boj governor masaaki shirakawa was asked by a reporter whether he felt pressure from the government when maehara attended the meeting. shirakawa refrained from answering the question directly, but he said he believes it's important to have a cabinet minister seriously listen to discussions on monetary policy. he added the central bank will keep in close contact with the government to try to pull the country ow of deflation. >>> the u.s. military is strengthening presence in the asia pacific region. it has announced that it's going to deploy two career strike -- carrier strike groups to

market expectations are for an increase in the boj's asset buying program which includes fu things as al estate nds. the yen will be closely watched for any science of depreciation following that meeting. let's have a look at the currency levels on the screen. 79.76 to 79 and the euro yen 102.94 to 99. the yen really is going to be closelywatcd. >> what's the latest on the earnings stream? >> a lot of earnings. we've been focused on export relates. july to september group net profits showed a small gain due to fixed income trading. it's going through severe cost cutting measures as well as internal management infrastructure and losses to investment banki structure. still a lot of folks on the alle details. just checking the price action today it's up 3%. markets taking it as a bit of a positive. back to you. >> thanks. people running japan's local governments may so beurning out their pockets for loose ange afterational government officials say they will postpone the payment of tax grants. the move comes as it looks increasingly unlikely to pass a bill to issue deficit covering bonds.

based on a boj business sentiment survey released monday, policymakers said personal stendi ispending remad steady. output and exports by manufacturers one of the main drives of the japanese economy are relatively weak due to a slowdown in the chinese and other economies. they also concurred that come pans are cautious about the business outlook. their policymakers implemented additional monetary measures in september that included expanding to $1 trillion the fund available to buy government bond and other assets. in the two-day meeting through friday, the unanimously agreed to keep the monetary measures unchanged to wait and see their effects. >>> the european union says member nation s a as agreed to imports of natural gas from iran and strengthen sanctions. diplomats reached a preliminary deal. discussing extra sanctions against i ran, the country refuses to stop uranium enrichment which could lead to nuclear weapons. the u.s. will adopt new sanctions all it meeting of foreign ministers on october 15th. >>> natural gas enters the eu region from turkey. volume is not large at the m

the boj may take some quantitative easing moves.ver a big winner but the biggest winners today are platinum and palladium, one of the world's largest platinum producers saying that the r disruption and strikes in south africa could turn this into a deficit. copper the only one sitting out the rally with the strong dollar hemming in that move to the up side. >>> trading action here steady as she goes. bob pisani is on the floor of the nyse with me. 12 points to the up side. sitting right there. >> about even on the advance/decline line. sectors up .03, minus .03. starting off pretty well for the earnings season. it was about two weeks ago. there's the s&p for one month. you can see sitting near the lows. the biggest problem is not the earnings. earnings coming in roughly in line with expectations. basically flat. it is the revenues. 40%, 41% beating so far. that's why the market's down. that with a knot in the market a couple of weeks ago. historical average -- 61% beating. that's why we're down today. on the home builders, sue, we h

. >> reporter: asian markets edged up this morning after the boj announced no change in the country's key interest rate. nikkei rose half a percent while the hang seng added half of a percent. today we get the latest snapshot on jobs. the labor department says on thursday that weekly unemployment applications were up by 4,000 last week, that's a level consistent with only modest hiring, some economists expect today's report will show a slight increase in unemployment. the jobs data report yesterday gave the stock market a lift the dow jones industrials average closed 80 points higher on thursday while the nasdaq was up 14 points. mortgage rates decline for a second consecutive week, mortgage buyer freddie mac said on thursday the 30 year loan fell to three and 1/3 percent. the drop in mortgage rates has been fueled by the federal reserve buying mortgage bonds. samsung is reporting a record quarterly profit. strong sales of smart phones and high end televisions drove profits to 7.3 billion. that's 21% higher from the second quarter. analysts expect samsung's profits to decrease in the

meet -- boj meets next tuesday. they've 1% inflation target, inflation is running at minus .3% year on year. i think the boj is going to ease next tuesday. i would definitely be buying the dollar against the yen. >> paul, it's joe. let me ask you, do you believe right now, we have a carry trade that exists, is there a funding currency you can point to? >> a good question. the dollar, to an extent, is a funding trade but the market is very focused on europe. but i think draghi put doubt into this one. put it this way, created an environment which spain now needs to move this is a really tough one to spain though. i think the market is running out of patience. >> three weeks. >> paul let me quickly say to you, if there is no carry trade curre currently, isn't there a problem for u.s. gases? >> in that environment, when there's nothing obvious the market will default to the dollar n that environment, if the market is running to the dollar, they have uncertainty about risks a is sets and global growth in general. yes, o

fueled more easing hopes from the boj. shares of sharp jumped over 7% after reports that it's lifting its diss play output. south korea kospi recovered to finish marginally lower. at sx 200 pulled back from its 15 month high. the send sex still on the move. higher by 0.6%. ross, back to you. >> thanks for that. phillips said it's on track with its cost savings plan. earlier the ceo spoke to cnbc and he said despite the global headwinds, the firm was pretty well placed for it 2013 targets. >> i'm concerned about the state the general world economy is in. but fell lips is a case of self help. we're so focused on driving our own improvements that i believe that we are on a really good path to our 2013 targets. >> in the united states, numbers painting dismal picture. only 42% have beat on revenues. reuters suggests just 38% beat expectations on revenue in the last week, compared with 41% since the start of the period and that clocks in well below zero the long term average. chief investment officer at hsbc capital joins us fr

they also have a funding prog m program, the boj will fund to a limited amount loans japanese banks make to their customers. but he's fairly hawkish. he believes in the bundesbank principle of central banking. he believes that the mandate of the bank of japan is to protect the value of the currency. he believes that monetary easing can only go so far. and his contention of course off the record and he would never say this publicly is that it's the government that really has to get its house in order and balance it budgets and find reforms that will stimulate on the real side of the economy rather than relying on monetary policies. >> so people know what we're talking about in terms of the weakness for japan's economy, the expected rewound in the aftermath of the tsunami and earthquake hasn't necessarily materialized which is interesting to keep in mind at a time when we're looking at a storm that hit the u.s. so to what extent is that weakness help to go exacerbate some of the problems that japan is facing? >> the gdp picture in japan is quite slippery. you have various base effects. you

the nikkei hit a four week high helped by a much weaker yen on the boj's easing hopes. but sharp tumbled more than 4% after profit warning. south korea's kospi turned higher in late trade. hyundai motor jumped 4%. augu aussie market helped by fwans in the property sector. sensex now hire bygher by 0.4%. >>> thanks very much for that.g in the property sector. sensex now higher by 0.4%. >>> thanks very much for that.g sector. sensex now higher by 0.4%. >>> thanks very much for that.s. sensex now higher by 0.4%. >>> thanks very much for that. sector. sensex now higher by 0.4%. >>> thanks very much for that.t. sensex now higher by 0.4%. >>> thanks very much for that. nexen did meet third quarter production and will meet the annual production guidance. quarterly cash flow from operations decreased to $560 million. and i think they're also talking about they say if they continue to expect senior operation to close fourth quarter of this year. meanwhile credit suisse targeting an extra 1 billion swiss francs in cost savings after a slide in fourth quarter earnings. a $5 millio

over in japan, the nikkei heat a three-week low as investors remained cautious ahead of the boj and ecb meetings, but the retailer rallied, because annual group sales could top nearly $1 billion. if so, it would be the first japanese retailer to ever reach that scale. over in australia, the asx 200 edged up to a 14-month high. minors slumped following a short rise in the trait deficit. india now higher by .2%. >> up next, uk drinks maker have been given an extinction to survive. that's up next. >>> and now for a fluffy news story. we don't always get to do this. looking at pictures of cute animals may actually increase workers' concentration and productivity. that's according to researchers at the university of hiroshima. does your cute puppy or cat increase your productivity? if you want to join the conversation, get in touch with us by e-mail, via twitter, and i'm also on twitter as well. >>> the french president is facing some pest problems. a small group of entrepreneurs are making headlines in france with the protest against a jump in capital gains tax, calling themselves the pigeo

the nikkei ended just a tad below the line, it's actually light trading ahead of tomorrow's boj meeting. honda cut after is an cut in outlook. korean currency strength fell, but some lg units surged on strong earnings. kospi ended flat. the asx 200 managed to to finish marginally in the green. developers and utilities outperformed. sensex now lower by about a quarter of a percent. >> let's take a look at trade in europe and u.s. futures which are trading as usual this morning, dow jones industrial average if it were to open today implied to shed about 55 points. nasdaq and s&p also pointed lower. that largely does cue off the attitude in european trade. it's noted we've seen losses about half a percent across the ftse and xetra dax, cac 40 down 0 on.9%, ibex shedding about half a percent. bonds, whin he left a week or so ago, spanish yields were pretty much exactly where they're sitting today, 5.6%. italy is 4.96837 and they have auctions coming up later this week, five and ten year debt. the u.s. treasury is moving somewhat lower and so are the german bunds this morning. 1.51 and 1.73.

the yen by the way speaking of japan, we just have a little bit of focus ahead of the boj meeting tomorrow. the boj meeting will be a key one help how much more can they do to try it support the country and depress the value of the yen. and honda slashed its profit target by the year and cited its dispute with china as a key reason. toyota and nissan report next week. so not a lot of great news to report from over here. certainly we'll keep an eye on to 150e what the impact of sandy is, but again, a lot of people deciding they'll clear of this one for a couple days. and i have to wonder will they get the jobs report out on friday as expected. >> good question. also a little bit of news out from your neck of the woods. pearson's penguin being mentioned with random house. going to affect book lovers everywhere. >> exactly. >> my book was a penguin book. penguin will own 47% of the company. some antitrust questions by the way. they control acts ov little ove respect abopercent of the marke and rue further murdoch will potentially try to jump in. >> did you see titanic, did you see how a lot o

. >> we believe the japanese currency is significantly overvalued and the boj and mof combined forcewill continue to try to appreciate the yen at every turn. so we are relatively bearish on the yen, we just need risk sentiment to improve significantly. >> i would probably stop buying some of the core. we will get to the point where we realize that the off loading of defensive positions that we've seen over the past couple of days is probably the wrong thing to do because we haven't solved anything. >> the dirty staples trade is all about the more controversial stuff. it's about the cheaper stuff. so dann non is an example of that. karlsburg is a favorite of mine. >>> today is the 25th anniversary of black plmonday. when the dow fell 22.6%, the worst one day plunge in history. >> it is a day in bold print in history books, black monday, october 19th, 1987, when the stock market went into a free fall losing more than in one day than it did on black tuesday in 1929. >> look at that tom brokaw, 25 years ago. anyway -- >> i like how he said 1929. >> that was of course black monday 25 year

trading around some multimonth high against the euro and also the greenback easing hopes for next week's boj meeting. south korea's kospi was sunk by ship builderses. pass coe also shed over 2% after a ratings cut ahead of its q3 earnings. but lg display rallied on the ipad mini expectations. accept s sensex lower by half a percent at the moment. >> thanks for that. you can sk secan see we're domi red. 9:1. pretty much at the session low. let's remind you what happened yesterday. the ftse 100 down 0.2, dax down 0.7, similar for cac. ftse, we're down 40 points. cac 40 down two dwsh thirds. 0.3% lower for the ibex. as far as yields are concerned, we'll keep them below 6%, but they are nudging higher again, a little higher in italy, as well. 4.8. treasuries yields just coming down slightly as stocks get sold off 1.78% as are bund yields, as well. on the currency markets, dollar-yen, we hit a three month low on the yen against the dollar. 79.74 at the moment, but we got up to 80.02 earlier on. aussie dollar lower. sterling-dollar getting back towards 1.60. we hit 19.3140 on euro-dollar last week