>> i mean, they said to the that for the boj. today that for the boj to hit the forecasted growth we will have to see 9% growth in this order which will not happen so it looks like the boj -- first quarter which will not happen so what looks like the boj slowing growth and the growth through slowing inflation and combined with what is happening with inflation due to prices, that is not looking good for the claim that it will achieve the 2% inflation target. this year we are looking at growing but it is weak and we are not expecting anything surprising in 2015. >> james, thank you for that, james baker joining us from tokyo. >> the latest from the markets, david is you're watching japan and oil. >> as james pointed out, several reasons that the economy is not doing quite as well. obviously the consumer is really from the sales tax -- reeling from the sales tax increase. is the boj supposed to come in will we get the effectiveness if they announced something new? we surveyed economists and the majority say that we will see the boj

boj board members met for their regular review of policies. after a two-day discussion they voted to leave their easing measures unchanged. explaining that decision, the boj governor said domestic production and exports are recovering. he said this was evidence the central bank's policy is working. >> translator: aside from gdp growth, various economic indicators show that capital investment is recovering. quantity tative and qualitative easing have shown early signs of effectiveness. >> the economy is showing a moderate recovery but not all the data support that claim. prices are barely rising excludeing the impact of last year's sales tax hike the inflation rate is .5%, well short of the central bank's target of 2%. he remains upbeat. he said the economy will recover once they believe japan has pulled out of deflation and prices continue to rise. growth improved last quarter because inflation was held in check by falling oil prices. a bloomberg report claims colleagues at the boj share that opinion. the report said these policymakers think f

. >> the boj basically has put 13 14 months to achieve that inflation target of 2%. they say in or around fiscal year 2015, which basically starts in march, and they have 12 months from then. we are about a quarter from the target of 2%. >> ok. what about the yen, and how are stocks reacting? >> it's interesting. before this, people were saying, some economists were saying, we don't need the boj to come up with more stimulus because it might be detrimental to the economic output. what we are seeing today, we are seeing dollar-yen, 1.1862. we are weaker for the japanese yen against the u.s. dollar. perhaps the markets are pricing in -- there may be need first and is right now. 118.62. they are more or less aware we were -- where we were starting on friday. the nikkei 225 was the only market that was green. off the high for the day. 18,052, still fairly high levels. let me just break that down for you. take a look at which sector groups are moving along. industrials are doing quite well, up 1.2%. heavy equipment makers, engineering companies, industrial goods, capital

has the boj gotten in there to surprise the markets again?begin autumn against the dollar -- the yen bottomed against the dollar? >> the former angela merkel party has hit a postwar low. the party slid to a 16% share of the vote, down from 21% four years ago. social democrats won the election. the mayor of germany's second largest city could be forced to seek a coalition with the greens. a gunman suspected of murdering two people in copenhagen had been involved in gangs. he says he had been hunted by police. in response to the attacks, israel's prime minister benjamin netanyahu urged jews to move to israel. and that israel was planning for mass immigration. and banning egyptians from traveling to libya. this follows the release of a new islamic state video that appears to show the beheading of 21 egyptian christians who had been taken hostage in libya. >> let's move on. the overhaul at tesco is continuing. reports that 10,000 jobs are to go. herewith an update at one of the biggest retailers is caroline hyde. let's talk about dave lewis and h

>> i think it was a disappointment, but all eyes will be on the boj meeting this week.n a news report last thursday, some officials saying additional easing could prove counterproductive. you -- you,eny that you could see a writ -- resumption. we continue to see the yen weakening this year. if you look at japanese earnings, probably nine straight course. we remain positive on japanese equities on a currency hedge basis. and we remain bearish on the japanese yen. >> all japanese banks figures coming out later from the fed. what are you looking for? is this going to move any strategies for you? >> definitely. at theare looking minute, we look at the recent data from the u.s. gdp data. it was worse than expected. werece numbers consistently below 2%. of course, we had employment data better than expected. more than 10 consecutive months above 200,000. wage growth is back in the u.s.. one thing mentioned in the january meeting is that the fed was keeping an eye on international develop. we think they are keeping a close eye on dollar strength as well as the global central b

the boj, with the policy meeting, we will see what happens, trading at 118.34. did you look at europe, of course, -- take a look at the euro, of course, the big story. it has dropped against the dollar, dropping to a one-week low versus the unknown monday -- yebnhn on monday. in the focus is on the wednesday meeting. >> top stories, greece and creditors have met and talked and listened and completely failed to reach differences, the meeting breaking up without them saying that europe's conditions -- with them saying that europe's conditions were observed. all the good has evaporated. >> is a bad situation as it stands. the wednesday meeting did not work out, that was an emergency meeting. this one is the crucial one after three hours of talks nothing happened. the euro zone, 18 ministers gave the ultimatum, saying if you are not agreed to bailout by friday, clearly we have to pay you -- not pay you. they must agree to this friday. greece are now anti-bailout. this is that they will do whatever it takes but on their terms. if they were to agree by friday, it mean

we are getting boj, monetary decision.lly -- talks about the bigger global story which is what all the central banks are doing in contrast with the federal reserve. >> it is really interesting. we have been talking about disinflation and the impacts of that. to create competitiveness in the economy as opposed to meeting aggregate demand. what is happening is the impact of monetary policy, impacting demands on the consumer level is becoming irrelevant. we are not seeing the impact of monetary policy in that regard appear. is about allowing the value from a competitive standpoint. we don't expect the u.k. to move today or the bank of england asia -- of indonesia. as opposed to the other banks. thee pretty confident disinflation story will be the theme through 2015. >> it is a pretty quiet week in asia but give us some ideas as to what the impact could be on asian markets if greece meltdown and all the rest in terms of investors that -- sentiment. like any crises, investors will go towards liquidity whether it be the u.s. tre

he says the boj will keep watch on whether the change from a deflationary mindset among consumers continues steadily. all right, let's get a check of the markets now on this last trading day of february. european shares seem to be treading a bit of water, one day after british and german indexes marked all-time closing highs. now we're seeing the majors are mixed right now. we've got declines for both london and frankfurt. paris is seeing slight gains. some company shares such as airbus and lloyd's banking are rallying, after strong earnings reports. earlier here in asia tokyo's nikkei edged higher to a fresh 15-year high. shanghai closed at a one-month high. and mumbai outperformed the region's markets on hopes for the government's budget, which will be announced tomorrow. but in seoul and jakarta, investors there taking some profits from recent gains. moving on to currencies the dollar remains pretty strong against the yen after positive u.s. economic data yesterday. the euro is still pretty week against the dollar and the yen. in march the european central bank will start a quantitative

here in asia japan's nikkei closed at a fresh 7.5 year high at 18,199 after the boj met expectations by deciding to maintain monetary easing. australian shares mean time also jumped to a seven-year high closing at 5,915. markets rallied thanks to a 47% rise in toll holdings. that's after the logistics company accepted a $5 billion takeover from japan post. in other markets around asia many investors were off work already for the chinese new year holidays. hong kong was shut for the afternoon session. but it did manage to hit a three-week high in the morning when it closed up 0.2%. jakarta also rose to record highs up nearly 1%. taking a look at currencies now the euro is moving in a narrow range against the dollar. euro/dollar at roughly 1.1383. meanwhile dollar/yen is at 119.27. market players are waiting for the latest data on u.s. inflation, as well as industrial output for january. >>> well executives over at sony have announced another streamlining move. they plan to spin off their audio and visual equipment business. possibly in october. president hirai presented the company's

therefore, the ecb, the said and the boj -- the fed a boj remain very russian in stimulus mode and theking. the extent -- and a slight turn we are seeing that a positive direction of the global economy. >> global equities are at a record high. what is the case of equities to go even higher from here? >> valuations are not stretched and we have got growth that is recovering. earnings look relatively steady and balance sheet have been rebuilt. we have easing money policies. you have to figure out what the works could be it could've been greece or the ecb, but they delivered. we have to ride with the sort of calm we have. the volatility will come and to do with potential increases later this year and that normally brings about volatility. so, i guess, the sale those are the times, the seasonal times we should watch for now. this fair wind we have seen on the act of the ecb program and the greek situation probably since with us and investors will probably get on board. the corporate story will probably sigh relief. >> germany has managed to sell for the first time ever, they sold bonds. th

you have this race to the bottom led by the ecb and the boj, driving these yields lower, pushing moneyother markets. it is going into guilds, treasuries and high-quality investment-grade debt. then you see the crossover into the higher quality of high yields. they have not touched the triple c space. it is driven not so much by greece, but by the easing of the central banks. jonathan: let's talk about that, taking it a little way and greece, it is still connected. is there still risk in italy and spain? when you see yields this low that started out with high-grade paper and lose the long maturities for the 10 year and the 30 year in switzerland and the 30 year in germany now we enter the corporate space with a negative yield on nestle, how much risk is being taken? stephen: i think that is a trillion dollar question in terms of the idea of where does this journey and -- and end? it has been moving lower and lower and works its way into credit. what is starting to happen is we are starting to see more idiosyncratic risk. we have a lot of m&a. a lot of companies paying dividends and doin

it probably means the boj won't take additional easing measures this week.data that was fairly mixed. as you would expect because the depreciation of the japanese yen and the pick up of the export markets in the west especially in the united states we have seen recovery really being driven in the fourth quarter by exports. a different starker story. you will for personal consumption and spending. so all eyes really on the spring wage negotiations. the big question is whether corporate japan is really going to deliver some meaningful wage increases. that. should hopefully, if it materializes unleashes the animal spirits of the japanese consumer. the nikkei closed above 18,000 for the first time since july of 2007. so eight-year closing high for the index. let's face it it wasn't a conviction mount up in the market or any other markets, really. we all seem to be still very much in a holding pattern until we get some clarity on the debt negotiations at your end in europe between the euro group finance ministers and greece as well. that's a big risk event. the m

xdcfáe1 >> i don't have an answer.t(xd i have a comment.w3+ this is a hyper sensitive issue #boj($r'd for secrecy and dealing with it. basically we have to seek two objectives.qÑiq one is toli,eujááá c predictable immunity against some preemptive actiuÑd that possib ip r(tf o that will require major, major probably move us into a field which we haven't yet fully sufficiently explored. rt and the second is to have a +sgañ preemptive capability.?;jfr a preemptive capability or ábw preempt some action of that sort1@,goke1t( or match some action against us tit for tat instantly. i don't want to be too specific mq about who the enemy might be.5a.qu ìáhp &hc% i $nb7i"ájjz we need to create public hysteria on the subject. but it certainly stands to reason that there are some countries in the world that u.y might think that cyber warfare against the united states is the best way to preempt the whole issue, to change the balance of power.xd i think we are still on the very, very early phases of responding to that.xd something like the united states ñxd was in 1943, '44 when we startedjf getti

are seeing the australian dollar strengthening, japan is just opening but before the opening we had bojs from policy meetings agreeing that the japanese economy is recovering, the nature to five points pointing -- nikkei futures pointing to ups. weaker yen is helping exports through as well. that is the sentiment, it is at 119. kospi getting underway after a three-day holiday last week, the lunar new year. we are seeing a strengthening won, a divergence from the weaker yen. from theets are back lunar new year holidays including korea but there are still a few closed including china, taiwan, and vietnam. ae greek government walked high wire act over the next 24 hours. they have to come up with financial measures that satisfy creditors and his anti-austerity party. john dawson drones me with the latest. roika, to do with the t get the approval letter. but he won on electoral platforms. -- hehink you lost a lot lost a lot because he has to go to the party to say that he lost the four-month extension drew the bailout and not a loan. but completely backfired. -- that completely backfired. th

. >> there was a story that the boj is said to view monetary easing as counterproductive.hat it? qed over in japan? >> -- qe over in japan? >> i wouldn't go that far. but once you see inflation turned negative, for a bank that said they are going to do everything to eliminate inflation, that will be the key to do more. there is a nuclear option that has been coming into play in the last few weeks. negative interest rate. following denmark, sweden, switzerland. that will be a game changer. if you look for an smb type surprise event, it is the bank of japan saying we are going to do negative interest rate. that would lead to money pouring out of japan and push up the end. >> thank you very much for joining us. fred. >> coming up, valentine's day tomorrow. so they tell me. dating 41%. >> our favorite story from bloomberg. digital output. he was many a girl's dream valentine. now he is facing bankruptcy. ♪ >> it is valentine's day tomorrow. dating is take business, reportedly worth more than $2 billion annually. company cupids are looking to cash in on those with only hearts.

. >> should reread too much into this bloomberg view, the bloomberg report that members of the boj thinkounter productive to raise it further? is that just a red herring? >> well, how then do you practically get inflation back? we are already two years into agbebenomics. when you look at the actual growth rate, the message from other central banks is that actually you have to do more rather than less. >> the dollar/yen at 1.50. these cio. >> coming up, hsbc releases earnings today. we will have details, next. ♪ >> you are watching countdown this monday morning,: 30 in london, the dollar just up at the moment, and janet yellen, the head of the fed, will testify she has the unemployment data, but what she does not have is inflation data, as our guest just said. you have got the greek situation and mario draghi. these are all of the elements that can make it an interesting week in terms of where the dollar goes. dollar/yen, you have got the yen rising. this is fairly flat. as far as dollars/yen is concerned, well, you have a number of issues at play. the yen has weakened to a comfortable le

where everybody else is cutting theirs or doing quantitative easing, in the case of the ecb and the boj the fed raised interest rates in an event like this, the dollar could go ballistic. that would be a problem, as you said, for corporate earnings in the u.s. earnings5%-30% of s&p are from overseas. we have already seen the impact on google and a few other companies as a result of this. aboutd does care deeply corporate profits. to conclude, i think that this means we will not see a rate hike in the united states. >> one more question for you -- seahawks were patriots? -- or patriots? >> i am canadian. i can tell you care a lot. [laughter] >> i am canadian too. i lived a couple of years in the states. we are going to take a look at that. mark matthews, i want to thank you for your insights on the market outlook. america's biggest sports event, underway. the seattle seahawks taking on the new england patriots insuperable xlix -- in super x in phoenix. we will be bringing you updates throughout the morning. stay with us. ♪ >> i am david inglis in hong kong. it is monday, february 2. let'

a lot of bullish sentiment around the economy and what the boj is able to implement. it was a mix of disappointing ppi and pmi data weighing on investors sentiment. keeping an eye on greece. retail sales for the month of january did come in disappoint ing. despite that we are looking at the ftse 100 up about four points but down the wall here as a little bit of greece and sha russia. the fighting continuing despite that ceasefire coming together. >> the bond market as well. we have the u.s. ten year just back above 2.1%. the last week or two and shrugged off comments from the fed that brought it down botch the 2% mark earlyier in the week. and we just saw yields tick up in the uk as has been the trend. which has helped offset a little bit today by retail sales. the ten year greek yield is just below 10%, 9.8%. the focus on sterling has now come off around a quarter percent. the yen is at 118.65. it's off 0.2%. that's where we remain today but they did both dip below those levels earlier in the week on news the u.s. inventories were five times higher than expected. tod

all eyes on the boj brought expectations they won't take further easing or may do further down the line around april. >> a big question when it comes to japan. thank you so much. coming up on worldwide exchange it's called the greatest free show on earth and we are there. we are live on the ground in new orleans as mardi gras celebrations get underway. if you're planning on making pancakes, hear why you may want to go easy on the nutella and why pharrell williams has more than one reason to be happy this morning as the grammy winner cash cashs in on the success of his new tune. now with the xfinity tv go app, you can watch live tv anytime. it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more. . >> the time for postjurorsing is over. the governments economic reforms face a vote in the lower house of parliame