the boj is the only game in town at this point.he government hasn't come forward with these structural reforms. in many way, the onus is on kuroda. when you look at the level of demand in the japanese economy things are not as healthy as you would expect. i think the boj has done a good job thus far. there's only so much they can do. because the government is not doing its part, i expect the boj to come up with qe3, qe4, in the next few months. jonathan: you've done so much work on the bank of japan. what is left for them to buy? the pension fund, the big government pension fund, has already had to get out of the way. what can they buy? willie: they can buy more asset-backed securities. they can buy more mortgage backed securities. i've argued that they should consider giving money directly to japanese people in the form of data cards, if you will. the money they are pumping into the economy is sitting on bank balance sheets. no one is borrowing. no one is lending. the boj has to figure out a conduit to get money into the pockets o

boj says they are picking up. policymakers also decided to maintain large scale easing measures they adopted last october to achieve 2% inflation. the bank pushed back its target date for obtaining that goal until first half of 2016 at its previous meeting. boj governor said after the meeting that personal spending is becoming stronger and housing investment is recovering. he said that led to a slight improvement in the bank's economic assessment. >> translator: an increase in household income will be the key to boosting consumption further. i think pay hikes for manual wage negotiations will materialize from around june. i expect real income will grow and consumption will be steady and even increase. >> he also said a virtuous economic cycle from income to consumption is now operating smoothly. >>> the boj decision had some positive impact. the benchmark nikkei average hit another 15 year high. the index ended up 0.3% extending its winning streak to a sixth day but analysts say the upward momentum was limited. ma

mark: where does the boj governor c inflation and boj policy from this point?o years since kuroda came in with his policy of 2% in two years. now they are at 0% in two years. they came out and said, it is not going to happen until april or later. kuroda said yesterday repeatedly prices are on track for the boj target. they don't see any reason to add further easing. the boj came out with three separate reports saying the policy is working. it is pushing up the inflation rates. it had the effect of stimulating the economy. overall, things are pretty rosy and they do not see the need to change policy at this time. mark: james, thanks for joining us. manus: with less than a week to go until the u.k. election, the three main parties came together for their final television event. ed miliband said he would rather lose out on becoming prime minister then do a deal with the scottish national party. ed miliband: we are not going to have a coalition, a deal. if it meant we were not going to be in government, not doing a coalition, then so be it. i'm not going to sacrifi

the boj has set a target of 2%.t this juncture, the current numbers running at .2%, if you exclude the sales tax hike impact. japan is falling short. there's a possibility that because of debt, the boj could easily been further. the better-than-expected recent data. but japan is one of the markets we like in the global arena. angie: vasu, thank you so much. up, sydney's home market on solid foundation? that report when we return. ♪ angie: welcome back to "first up ." 2%h australia's cash rate at , it is a very different story. is long mining boom's end driving home prices down. reporter: it is too bad this townhouse is not in sydney. if it was, it would likely have sold for a princely sum. it is in the wealthy suburb of perth. >> what do you think of this place? >> a truly unique property. at the peak of the boom, we would probably be looking at $500,000. reporter: that has been on the market for five months without an offer. property prices across australia rose 6.8% since december. point -- 2.2%. , 1.2%, trending

if you look at at the boj's inflation target, initially coming out at 2%.hen saying this is a long-term trend. there is not a line of the same. it depends on the trading partners and where they are trading. lyrically, there is not much support for material weakness but long -- yonder 124. rishaad: suddenly, it has a big fall and then it goes into range again. is it morettern and about dollar strength than yen weakness? dominic: if you look at the yen trading versus the euro are the , it is clearly going sideways since may. some of the pattern that you have seen in terms of the yen weakness is because the monetary and focused on the easing side which was a key factor. the monetary policy decision at the end of the day. rishaad: will we get further stimulus in japan are will that qe program be widened as some are predicting? dominic: in october, we might consider some form of additional easing support if it is really going to be an increase in purchase. for the time being, i would look at the numbers and i would say no. from that angle, what they do is he eno

that should also lead to improvements -- to your question about the boj, i think it is likely the bojould come in with further easing but probably a little later in the year. anna: stay with us for a minute. the russian ambassador to the eu's book to us in the exclusive interview about his country's relationship with greece. >> greece has not asked for one. russia is not imposing its money on anybody. i don't think this should be a method. greece has indicated, the greek government has indicated it would be happy to see enhanced russian investments. i am aware of certain projects being developed along those lines both in the energy sector, the transport sector. we have always had good relations with greece. based on shall i say our common religious ties and historical ties. the role of russia in the 19th century in greece's struggle for independence was quite an important one. anna: the russian ambassador to the eu talking about russia's relationship with greece. as they watch what is happening close to their borders in riga how does the russian economy look to you? michala: obviously

do you think the boj will wait 18 months? the follow-up is what do i do with dollar yen?: good data and the united states sends the dollar up, does not send the equity markets down. therefore, nikkei up, dollar yen up. if we make it through 100 and 21 and a half today, i'm not sure what to do about dollar-yen. dollar yen has this habit of moving in steps. i don't think the japanese would mind going into a higher one. that would not bother them at all. jonathan: range bound? kit: i think we can break higher on the enthusiasm. everyone will push their further qqq e measures forecast into the future. jonathan: the boj will get pushed to one side, talk to me about this corporate culture in japan. the stewardship code. i have seen some buybacks from japanese companies, is that a u.s. buyback story? or is that a change in culture? julian: our reading is that culture is changing. there is more awareness of good government in terms of relationships with shareholders and giving them more return. also looking at this enormous amount of cash that a number of japanese companies have.

the boj might have to move this year.look at inflation, at the economic pickup, it's not that strong. they were pushing it back, but i suspect they will have to do more. >> you are pretty neutral about the currency. >> the yen has been remarkably stable. the end has stuck in a tight range lately. >> what kind of stimulus do you expect out of china? whether it is trying to attract attention to the municipal bond market what do you think is coming for the chinese? >> a lot of expectations and markets. i suspect the chinese are going to gradually switch and we will see regulatory changes. they will try to guarantee some local government debt. it is a qualify fiscal stimulus they are looking at rather than outright monetary easing. >> they got in trouble in 2009 at far as the fiscal package. >> a lot of people say china is easing. is the chinese economy going to bounce back and surprise everyone? i think you will find it is going to pull on the reins. they do not want to overdo it on the upside. >> why would that be bad? >> t

yes, the boj are on hold but they did release a slightly upbeat view of the broader economy. some are saying it's a little bit premature given the fact that we still have not seen any meaningful capital spending that is so needed as a catalyst to really unleash this virtuous cycle of spending. that will get it back to the target of 2%. that's where we stand at the end of the week. back to you now. >> a screen of green behind you. thank you so much. coming up on the show. ladies and gentlemen, start your engines. indy 500 and formula one drivers gear up for one of the biggest weekends in motor racing. plus is uber driving full speed ahead toward an ipo? they're seeking a $1 billion credit line for banks fuelling speculation and the media mna frenzy continues. they're plotting an offer for time warner cable well above comcasts failed bid. all of those details coming up in two minutes. >>> welcome back. we have a little commentary coming from mario draghi. a great deal has been created in structural reforms including in portugal. being in the early stages of recovery is no reaso

if growth does falter, the boj will come in. is probably a view that it will be fine regardless. i still think there's a lot of optimism around japan. i point guy: where would you put in japan across the allocation process. andrew: i would put europe at the top. spain and italy are strong. the indicators suggest that those countries are doing well. the u.s. is on a solid growth to -- trajectory. japan is not a big buy. we would go to war -- to where the growth is surprising people outside. for japan it is more steady as she goes. you have positive surprises coming through in europe. a lot of people are paying attention to what is happening in spain and italy. our own indicators suggest this activity could be in the 3%-4% range. guy: if you are to factor those numbers into the equity markets where we stand? andrew: there is an upside to european equities. i still think there is a risk of that european growth is better than some people think. guy: is there a danger in that scenario? where does the qb story fit into that? how much

we did get those boj minutes come out today.rom the april 30 meeting, the time they push the back that 2% inflation target. what was going on in that room? some members said they didn't expect inflation to be reached by april 2016. that is why they decided they needed to delay it. one member said, hold on a second. we need to keep this timeframe because we need to change the deflationary mindset, but overall, they decided to vote otherwise and delay it for another six months for that inflation target. i do want to talk about the dollar. it is strengthening quite a bit against all 16 major peers. the dollar, dominating the yen near that eight-year high. let's see what we've got. 123.31. i also want to talk about the run in the -- renminbi. we did see that the pboc actually lowered that reference rate to the load weakest level -- to the weakest level in a month. we have seen the chinese currency fall for the past four days, but overall, strengthening quite a bit against most of its peers, including its trading partners and the u.s

a lot more activism there the boj, tokyo data we saw over overnight.oj is going to have to move and act and keep the yen at the right levels to keep the export machine going and get inflation going. two big catalysts. >> shinzo abe at the white house with president obama, dan loeb and his latest investor letter saying they've got nearly 10% of assets there as well. >>> coming up, it's what they're call the fight of the century. mayweather and pacquiao facing off tomorrow evening. in vegas and the amount of money being spent on that fight. tickets and otherwise, is staggering. jane wells, who else is live in the ring at mgm? hey, jane. >> i finally found a seat for the fight. adrian! the flight is so crazy, they're selling to the tickets to the weigh-in today for $10 going to charity and even those are being resold for ten times face value. i'll have all the crazy numbers, ringside, not ringside, in the ring, when we come back. ♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man sn

economy describes it as being in a moderate recovery trend and a lot of investors want to see if the boj upgrades that view which the government did back in march. they want to see if that will go step for step and that's going to be a big focus. >> and looks like the dollar broke above a key level against the yen. what can you tell us about currencies this morning? >> definitely. we hit another key level there. it has been trading above 121 yen as you can see right there. that is the first time in more than two months. a lot of traders were led to believe that the fed will hold off on raising rates. the dollar is firm against the euro. the single currency is coming under pressure there, the possibility that the european central bank may increase its quantitative easing in the next few months greece's ability to meet its debt repayment is a concern as well looking at currencies and bonds. looking at asian indexes the shanghai composite outperforming a lot of indexes. the manufacturing pmi for china in may due in a couple of hours will be a major guide for investors this morning. and of c

some boj executives are unsure of the challenge. minutes from a bank of japan meeting show three of the bang's nine board members feel the target outlook is blooming. it released its minutes from its april board meeting. the officials postponed their forecast date for achieving the 2% inflation goal from the current fiscal year. bank officials said sluggish price increases were mainly due to slower pace of improvement in the output gap. they also cite ad slow recovery in some areas of private consumption. >>> transport officials from thailand say they want a high-speed rail service similar to the japan bullet train. they are currently in tokyo where they met with their japanese counterparts. japanese transport minute certificate akihiro ohta met his counterpart prajin juntong to exchange a memorandum of cooperation. japan has offered thailand assistance for the railway. the project is a 700 kilometer link between the capital of bangkok and shanghai. most trains in thailand run on single tracks and are not electrified. but with econo

angie: with switch over our bojs on japan, we have the meeting, what do you think japan is going to doon one hand, you have the businesses doing well, but on the other, you have japanese workers not seen 2% inflation in their wages -- seeing 2% inflation in their wages. glenn: exactly, and we are looking at the corporate and industrial sector which is doing quite well, and the yen is very strong against regional peers, so industrial exports are doing ok, so we think looking at the gdp figures is key to growth. whereas japanese households are experiencing real wage reflation's, so adjusting nominal wages for inflation, they are having declining pay packets. that is going to be a very big obstacle to overcome. youink as a result of that, are going to continue to see this split between the investment and the industrial and household sector. the mechanism that will equalize that is a corporate stub paying more bonuses or higher wages, and then you start to see that even lift. angie: right, but they have that spring around of negotiations. we saw it in fractional increases. glenn: it was fr

some underlying price dynamics according to the boj.ok at the second half, overall, the way in which the boj have their policy, you would think that japanese stocks will continually be driven up into the end of this year. angie: before i let you go, on.a, modi, one year what are your thoughts on india? do you still want to keep your money there? >> i think there are still opportunities in india. there is a lot of work to be done. a lot of reform being done. i think the appetite is still there. -- therethey will be will be more capital inflow into india over the next six months. angie: always good to talk to you. thanks. mclaren says the stock boom is stealing sales. a closer look when "first up" returns. ♪ angie: it is 7:30 here in hong kong. that is the view of seoul we are giving you right there. they are one hour ahead of us. they are back to trading today birthdayking buddha's on monday. we are 30 minutes away from the open of trading there and in australia and japan. on your mobile and online, you are watching "first up." ♪ angie:

they do not think further action by the boj is needed currently right now. the bank will continue easing until that 2% inflation target is achieved. we had data out of japan this morning showing that ppi fell into negative territory in april, following a 2.1%. that was in line with estimates. i will take you to some of the biggest movers in japan. today we had dentsu gaining. rising 20%. mequon, plunging more than 12%. that is after they slashed their three-year profit target. showa shell down 5%. that is despite raising profit forecast at 41%. investors not so convinced. anna: shery ahn in hong kong. manus: netflix is in talks with a chinese media company. it almost his $6 billion. the answer is in the headline $6 billion market and 2 billion people wanting to look at videos. caroline: the growth is exponential. this is why china is so attracted. why would the maker of "house of cards" want to get into the biggest country in the world? it is the biggest with 1.4 billion people. it is expected to triple in the next three years. that's market evaluation is ex

you have everyone from boj, one of 30 countries with central banks that are easing right now and injectingquidity into their economy for the hope of stoking it. this is a concern. carl: central banks are doing the right thing in my view. they are trying to generate houston momentum -- positive getting in hope of economic activity that will justify itself in interactivity and hiring. they have to be careful. central banks in asia have been in a competition with one another to get their currencies down to the lower level. that is again were typically nobody wins. go, givefore i let you us some insight as to why americans are not spending even though oil prices have been in their favor, even though we are up in a take up -- tick wages. why aren't we seeing it? carl: people suspected the price of energy may go back up. they did not save all the savings from gasoline. there is a need to rebuild savings. getting debt under control and having adequate savings for retirement are two different things. a lot of families have a head of household at 55. maybe they look at their balance sheet and say i

james: it is very clear, the boj has been faulting asset prices by buying japanese government bonds. we will hold them until maturity. you get out early. that is what we should see more of. japan needs a huge structural shake. it doesn't have to have a big shift in the psychology of investors and consumers. that is a very clear signal the bank of japan is being encouraged by the policy agenda. the second issue is, we need companies to come to the table to create more profitability. the return on equity is very low. japanese companies hold so much cash. they recognize the importance of value. returns will be magnified manifold. jonathan: i've heard about the changing culture in japan in terms of corporate profits. a lot of people will say that we are starting to see some signs of that. james: we definitely are. i think that markets are much more discriminating. it trades on that multiple. a heavy premium to banks like barclays. it has a 15% return on equity. that justifies a high valuation. jonathan: we are going to talk about lloyd's later. back to the macro world, i look at the data

. >> which they are, the boj is involved. not only that this attorney the d.a.tate's attorney mosby, she's african-american. i'm taking the race issue out of it. that's been an issue in other cases. the police chief is an african-american and the mayor is as well. will you accept her determination? she's not just taking the police investigation at their word she's doing her own. >> i'm not sure how it matters. the fact she's african-american is -- i'm not sure exactly how that's relevant. i can say we are hoping that -- >> we were hold in ferguson the fact it was a white d.a. investigating a case that involved a black male it was relevant. they were suggesting for that reason he could not be impartial. i ask you, you don't see race as an issue. do you think that this d.a. can be impartial, and that her approach to it she's going to do her own investigation, does that sound legitimate? >> when you say that i said that race isn't an issue, i did not say that. the black and brown community is certainly disproportionately affected by police brutality. race is certai

teper at the ira sohn conference saying don't fight the feds, you've gotted fed, the ecb, japan, the bojna. >> this is all liquidity driven. >> why fight it? >> don't fight it, but make sure you stay short duration if you're on the credit side and make sure the equities you own can actually grow. if the rates move, the companies that have high dividends without growth are the first ones to get hit. >> we'll step away and come back and hear from the president on the other side out in beaverton. there's the podium. the dow and the s&p within 1% of their all-time intraday highs. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. and it's only on fidelity.com. open an account and find more of the expertise you need to be a better investor. you can call mbut,allow... i have a wandering eye. i mean, com

as the boj determined the nonprosecution agreement. >> they did. ♪ >> good morning, and welcome.the start of the european trading session. what a day yesterday was. the best today rally for german stocks since january. that was a busy session. let's get straight to the morning briefs. ubs pleads guilty. japan's economy expands for a second straight quarter, beating forecasts's japanese stocks rally. and ecb treat. i'm going to be talking about it throughout the show. i'm looking at futures pretty much dead flat. dax futures lower by 14 points. manus cranny has got your tuesday morning open. >> thank you for that. we are looking at a slight drop this morning. in paris down 2/10 of 1%.

there is a lot of coordination between the boj and the minister of finance. there is communication around waging -- around raising wages. in europe, there is a focus on competitive devaluation. as long as that is the case, it is very unlikely that europe will be able to reach anything comparable to the package that japan is trying to put in the system. not to say that japan hasn't got its own challenges, but still, there is far more emphasis on reflation strategies in japan than there is in europe. guy:? you joining us -- jacques cailloux joining us. a great deal has been achieved in structural reforms according to mario draghi. i wonder whether hans-werner sinn feels the same way. we will find out later. he is coming out in around 10 minutes time. we will continue to bring you the headlines from mario draghi. what else is on our radar screen? the bank of japan has refrained from increasing monetary stimulus and signaled a more optimistic view on the economy as governor kuroda that's on stronger growth. the central bank will continue to boost the monetary bas

we just saw inflation in jebel little higher with people saying maybe the boj will delay more easy?emainsw on pretty positive, particularly if you had out the potential currency risk which we think is pretty high. ahead, theking underlying picture for the japanese market is still pretty positive. we are looking at a fairly significant rate of shared buybacks, not just in japan but elsewhere, like in the united states. japan in particular. inthe same time, earnings japan is some of the strongest in the world. generally pretty positive, still have to wait on the japanese market. shery ahn: household spending still not picking up, declining. why is consumer spending not picking up? guest: i think one of the things we have seen in japan is the consumer has been slow to embrace the euphoria that is currently filtering through stock market. japan is not unique in that respect. nonetheless it is taking a bit of time to feed through and to consumers. understandably they remain relatively constant. but from the corporate perspective, corporate earnings are beginning to accelerate and we anti

boj started its hollis he today.s don't expect any court of change when it comes to the policy stand this time around. but anything after that is anybody's guess. at this point to get the same amount of efficacy on their policies and has to be a surprise. watch out for that this time tomorrow. mark: david ingles in hong kong. manus: after the lender announced last night that the co-chief executive would take up the reins for the new strategy overhaul. last month's moves to boost return has not impressed investors in germany's biggest lender could see a slowdown. all morning i have struggled with this between slow down and showdown. will it be a hoedown? hans: that is because you know it could be a long night. we could end up having this late in the evening. late last night jane is taking over a little bit more power. he is the co-ceo. he gets the strategy and operational unit. stephan crouse was the cfo and was stepping down there and he will take over non-core operational units. that was the unit that juergen fisher

in the past every time we had sustained quantitative easing from the boj we also had fiscal contraction. tom: we know this effect this has on south korea. what does it mean for the united states? if yellen is oppenheimer funds central banker, how does this devolve back to washington? alessio: we saw for the first time in a long time the fed started mentioning the dollar in their statements. i think what we see is a sustained dollar appreciation against key trading partners -- europe -- euro, yen. tom: do you suggest dollar strength? alessio: this dollar bull market is very much in line with what we saw -- tom: this is critical for people's retirement plans. if i get a ruben dollar, how do i reallocate my for portfolio? alessio: in the meantime being in u.s. assets or developed assets as equities is probably a more attractive value proposition. tom: i want to be i in gm and not ko'd a. -- not toyota? alessio: it is difficult to say because companies hedge their currency exposures. tom: i'm trying to make some news here. brendan: vw and toyota and that gm. you have to make sure those equi

boj seconds inflation to sell accelerate in the 2015. he expects it to reach around 2% around the first half of fiscal 2016. meanwhile, japan trade data showed the country fell back into a trade deficit in april but the gap is not as wide as feared. a jump in exports to the u.s. helped. simon, quite a lot of data out of japan the last week or so. sum it all for us. are we seeing enough green shoots of growth following this humg stimulus they have delivered or is it still a pretty wearing outlook? >> we think the outlook is improving. inflation was moving very quickly in the right direction and until they got hit by the collapse of oil prices. the abe no, ma'am -- -- abemonics story. there is a domestic demand story to the japanese market rather than people trading on a weaker yen. on a global perspective, japan is still one of the best value markets out there certainly compared to the u.s. it's got good room to move quite a bit higher. abenomics very slow but it's still making progress. they are really getting that domestic background mo

that would be in the comfort zone for the boj. >> taking a step back there's been so much excitement and hope that abenomics would provide the turn around to the economy. when do we see the fruits of the labor. >> i think there has been a very positive shock. >> deflation though still a very big concern. >> yes there is that. but there are global pressure with the oil price which is are beyond japan's control. so in terms of what would have been realistic objectives i would give it a 7 out of 10. there's still much more to be done. >> how big of a role can they play? that's the only bright spot for japan so far. >> yes, i think you could argue consumers are still wary and they're still arguably too much saving and actually turns out corporate saving is a problem because we want companies to invest and that's the way we were hoping that this recovery would broaden out and become more durable and the evidence on that is still a bit tentative. >> abe and modi are expected to find new ways to work together. perhaps encouraging investment by indian firms. do you think there could be an in

the ecb and boj and other central banks do. i expect bond rates will go gradually higher. >> in may of '13 when bernanke spoke about tapering was a surprise. this time around the fed telegraphed what they're going to do. we don't know if it will be september or later. the fed told us once he starts hiking rates it will be done gradually. most of it is already expected. it's not going to be a significant surprise as inflation goes higher gradually long-term interest rates will go higher. in the short term lack of market liquidity, market makers can be a surprise or otherwise. in inflation, you have a volatile environment. the funmentals suggest a gradual increase in the united states and europe. >> if we had a more abrupt one, would that be more disruptive? there are guys around here that are worried about that. >> certainly the fed and janet yellen has said she has some concerns about this tantrum occurring, call what whatever you want to. they didn't start tapering until september of that year. too sharp of a backup in longiels that will force the fed to exit lower and la