many market players say it's not just the fed but the boj. analyst told me the boj won't announce new measures because it's only a few days ahead of the fed announcement. he said the easing in october is more likely. still market players will be looking forward to what the boj governor might talk about inflation figures at the news conference after the markets close. speculation over easing in japan is putting pressure on the yen. the dollar/yen is moving narrowly as we head into the fed meeting. it's around 120.37. euro is opening, asian trading hours lower 1.1306. we probably will see this wait-and-see mood in financial markets ahead of central bank decisions, at least until the boj unveils its results later today. >> looks like investors may just stay on the sidelines. what other factors should we be watching out for maya? the nikkei lost almost 300 points yesterday. >> exactly. we should see how chinese markets open in an hour. they were rangebound until the shanghai posted the biggest drop in three weeks. here is how asian markets are op

the boj restraining from adding stimulus.any economists believe they will make the movement's month. -- next up is the swiss national bank. --thursday morning, takes they're are expected to keep rates unchanged. the fed, one of the most anticipated moves this year. thursday, 7:00 p.m. u.k. time. citigroup has a bold call, the bank is predicting a global recession starting next year, led by china. bloomberg spoke to the chief economist. >> china slowing down, very rapidly. i think the outcome, unless there is a rumor act last a recession in china. we are back with julian chillingworth. julian, reconcile of these two things. a call from citigroup for a global recession next year. someone is going to be very wrong about this. it might hurt. who is wrong? i would say in reality china is slowing. i don't disagree with the comments you made about slowing very rapidly. the authorities have a number of levers to pull. they are selling u.s. treasuries and plugging them back into the economy. turning to the fed, having kept rates at no

the boj is meeting this week. have reallyple penciled in saying -- we could get more from the boj.is that a reason to go long on japanese equities? ramin: this disinflation theme is a big run for us, and we think the best place for looking for value is places where you have low-inflation combined with a positive credit impulse. andle are borrowing more the economy is going to be fueled by that credit growth. the two places we see that is japan and europe. that is why there is fear among strategists. i think that disinflation feeling is the big one. jonathan: the nikkei 400 -- why that particular index? ramin: we like it because of the corporate governance aspect. our asian equities strategist just came back from a trip to japan. he has confirmed that for the stocks you have identified, they certainly seem to be taking corporate governors very seriously. what does that mean? it means you focus on return on equities. in order to be part of that index, you have a kind of cap. --athan: a long-term play short-term volatility in japan is outstripping what is happening in the equity marke

the boj was happy with what was happening. at the last meeting of last year, he came out with a massive increase in easing. it is always possible he might do that again one year later. francine: thank you so much. in tokyo. alix stewart is still here. do you have any value to be made in japanese corporate bonds? alix: japanese corporate bonds is not a particularly liquid market. i think some of the opportunities are more likely to be elsewhere, given the valuations that we have, the selloff we have seen in the likes of the dollar market, for example, which is trading at two-year lows. manus: if we look at biggest issues to come marketsi,n alix, it is about the prospect of more quantitative easing in europe. what does that do to our bond markets? if anotherpan, round, october 30, you said, the jpmorgan note -- francine: they are not ruling out the possibility of additional easing on october 7 but they expect that boj to do something october 30. manus: what we're looking at is the prospect of more quantitative easing, europe and

there is less pressure from the government on the boj.a: steven stays with us a little bit longer on the program. almost 200 nations will discuss climate change at the 21 summit in paris in december. global warming history to have a visible impact. visited theberg mountains and the alps where it is most evident. ♪ mountain, iiful have not been there a long time. there is a giant glacier underneath, and a part of it is called -- you arrive to see waves of ice. >> wow. >> while 27 years ago, my family and my two brothers came on the same train to go of the glacier. there was a lot of ice. you could almost touch it. i was kind of nervous, i am not sure about what i will find it now. ♪ my mom to this really cute picture of us in 1988. it was me, my brother, and some friends. the glacier was behind us. this is exactly where i was seated with my brothers and friends. behind us, the scenery has changed dramatically. i met frank pollard, he has been back every two years since then. he really witnessed quite a change. frank: innocently been accele

so we could very welsey some kind of development with the boj. may be more asset purchases at some point in october. maybe in the next meeting. interesting to note, dollar-yen because many analysts are telling me that the cross in where we're standing at the moment is underpricing the risk of more action by the boj. elsewhere, locon vix, low energy trade, global growth concerns in china effecting sentiment out there. that's where we stand. back to you. >> thank you for that. we're going to bring a few flashes out as well on the china central bank. they have been coming out in the last couple of minutes. they will achieve reasonable growth and credit in social financing. they'll use various policy tools flexibly to improve credibility. they're watching international capital flows and see more positive signs from the u.s. economy and see more difficulties facing emerging economi economies. clearly janet yellen echoing some of the materials yesterday but still maintaining her backdoor out of wanting to hike if she doesn't want to do it. >> the econo

nearso, prices are nowhere what the boj has been targeting.f it is 1%, it is not with the banks and said it would be. to fight anyble economist that thinks inflation will take out anyone near where the bank of japan was. jonathan: this reminds me of the debate here in europe at the turn of last year. when the ecb been up to pull the trigger on qe, we do the same thing with japan all over again. to october 30, and say what does it mean for the boj> what is any of this mean? yearaid it is deja vu last in japan as well. cpi, the bank of japan moved in they added to their stimulus policy. in the last a of october they will increase their stimulus again. it feels like a year later and nothing has changed for the bank of japan. nothing has changed for the people who were looking at the bank of japan trying to guess what it will do next. thank you very much for joining us this morning. , let's couldnk you more from james bevan. we can just turn to central banks and say you have to do more. what about the third arrow? james: what happened to the first

20 is still a nice number for the boj -- they don't want it lower, do they?e: i think it is a trickier story for them. their policies are fewer and far between. they have run out of fiscal room. kuroda, i i were mr. would be lessened enthusiastic about the action than druggie. -- than draghi. our best guess is that they will have to ease policy further, whether in it is october or not. jonathan: let's boil this down to the fact that so many of these bombs are on the central balance sheet. if they honestly come out on october 30 and build their positions again in the market more aggressively, what does that mean for pimco's view on japanese his government bonds? -- japanese government bonds? mike: we were talking about the u.s. curve a minute ago, the backend being vulnerable to a dovish fed. you have the opposite in japan, where the long end is vulnerable to further rally clearly on the basis -- rally purely on the basis of central banks. jonathan: europe. the bond market has full enough the radar for a lot of people. here we are, back in focus. i would be as

policy,ly to impact boj but one to watch.y some boj members are losing confidence in the fundamentals. what is it we are hearing about this in treating -- intruding. zeb: some members, including those familiar told bloomberg news that some members are not confident that the economic fundamentals in japan are where they should be. that has been resolute in sticking with policy, supporting its governor, and the governor himself has monetary defended his policy. boardr, if you have members, now perhaps taking a second look, that is cause for concern. the numbers validate that. there is export weakness in japan, industrial output obviously, you are not outputting as much. oil is down, that is, locating the inflation outlook. the 2% magic number everyone wants to talk about -- and the overall growth story in asia, china is slowing. big concerns. angie: thank you. the pboc released its latest reserves data. they show that china is burning through its final cash. -- it's pile of cash. how long can this go on? david: at this rate may

that core inflation that the boj does look at. excludes fresh food.here was talk of the other gate, the new cpi which actually excludes energy. some of the members have said that the data, which excludes energy, was useful. and they said that they were open to looking at that, as well. the riseumber saying in food prices, that is not harming consumer sentiment. aremore of firms in japan able to pass the rising costs on. they feel of health and economy may be better than what the figures suggest. some members feel that consumption is key for improving the price trend. but they are maintaining that 2% price target at cbi for all items. even some say that what matters for policy is not so much the oil price movement. as we talked about when we first heard from janet yellen this morning, some of these forces are very transitory. and they said what matters is that oil prices affect the price trend. again, inflation a big topic here. they said that more support from wage rises needed for inflation. angie: thanks for that, yvonne. let's take a look at how ma

time, theree same are rumors of disenchanted pessimism at the boj.aid thatthe guys who if the japanese people do not believe us in terms of the optimism for the japanese economy, we are done for. mikio: that is the biggest risk, actually, that the leadership, that i agree with is a big risk. it is very said that if the japanese people do not believe unfortunate, if these reports are true. i think that is related to the past attitude. the old regime was, yeah, we will print money. defeatistan inbuilt attitude to whatever they did in the past thursday said we would never get out of this, this is a structural thing, forget about it. that mindset is not gone after two or three years of trying to do something so that is something that is worrying me and we need to watch that. angie: thank you for that. of course, we will discuss china as well when we get you back. rishaad: we were talking about the rout. angie: see why investors are turning sour on indonesia. rishaad: when "asia edge" returns. ♪ angie: welcome back. you are watching "asia edge." we have b

do you expect to see additional easing from the boj?think the trouble with easing is what on earth would you buy even if you wanted to do it? the bond market is badly drying up. there aren't a lot of things the bank and buy that it is not already buying. i think if at all possible, they will try to hold back from doing quantitive easing. saying, they are going to have to do 3-5,000,000,000,000 yen worth of fiscal stimulus. an increasingly confident that the outlook of the dtp is a second quarter of -- of gdp as the second quarter of decline. looking to next year, remember abe has got to do things by the 25th of july. there is no way he can do another hike, that he has to announce in june next year. he's going to have to find some excuse for pushing that out. angie: that's a great point. of course, he is also shielding from political pressure at home, 2.0.hing abenomics there's questions over whether the first abenomics is even worse -- working. are you still optimistic about the japanese outlook? guest: let's separate the profits from t

so stocks are rising after widely expected announcements from the boj. they are opening at nearly 19%, and the topix are opening at .73% ban hour after the opening. let's take a look at the whole region, how it's opening this wednesday morning. asian markets are looking pretty good. seoul is up 6%, and i'll show you s&p is bouncing to a low of almost 5%. and mayor turnbull failed to impress investors. they asked market players about the timing of rate hikes, and it fell from 18% from 70% last month, and nearly half of them think september is most likely. what's surprising is 25% think a rate hike is possible which wasn't even on the timeline, so uncertainty is growing day by day and making investors difficult to take any positions. ramin? >> exactly some indecisiveness there. basically investors in a wait and see mode ahead of the fed meeting. still, u.s. stocks have staged an overnight rally. what's really behind all of that, mayu? >> the answer to that is low trading volume. traders say low trading volume ex aj rataggerates the daily mod after u.s. pre

boj governor spoke to reporters after the meeting. he commented on the effects of china's economic slow down. >> translator: china's econoc slow down will affect japan's economy through trade, investment, and finance. i believe china will maintain stable growth through measures to prop up the economy. i think japan's exports are also continue stable growth. >> asked about the impact at the u.s. federal reserve deciding to raise interest rates, he said it means the fed has strong confidence in a u.s. economic recovery. he said a robust recovery in the u.s. would have positive effects in japan and the rest of the global economy. now looking at markets. tokyo's stock prices ended slightly higher, although they lost a bit of steam after the boj's announcement. our business reporter tells us how investors reacted in tokyo. >> reporter: the decision was announced around noon and effects apparent in the market shortly after, some clearly disappointed, those counting on further easing. stock prices rose earlier in the day, but immediately aft

the boj's governor is talking in japan this morning.the ability to bring back inflation in the japanese economy. talking about inflationary expectations increasing. sync the chinese economy continues to grow in a stable slowdownd to expect a and.e emerging markets to interesting comments coming out of japan this morning. we will take a short down -- we will take a short break here on cancer. ♪ anna: welcome back. it is 747 a.m. here in london. here the stories you need to know. japan's a central bank left monetary policy unchanged deciding adding against the country's unprecedented 80 trillion yen stimulus program. the current easing is having the intended effect. sworne internal has been in as else trillion six prime minister in eight years coming after he ousted tony abbott following a leadership challenge. he has promised to revitalize the australian economy which is been battered by the slowdown in china. the brazilian finance minister has proposed a new round of spending cuts of -- and tax increases designed to close the budget gap

the market still seems to be looking for more policy support there than the boj. you have been talking about the move to expand asset purchases. in terms of the corporate stories there's m&a activity around the food sector. that helped bolster the food shares so we're holding the line above 18,000. it's all about the fomc asian markets watching this one very, very closely. especially malaysia and indonesia. back to you now. >> thank you so much. i want to say that global markets are watching the fomc. let's check in on the european session on this tuesday. more pronounced declines, the ftse by close to .7. the cac down by 5. let's see how that's rolling into the u.s. market open. futures in trade telling us the implied open, we'll be down 4.5 points for the s&p 500. the dow is pricing at a lower start of 40 points and the tech heavy nasdaq may be declining by 12 points. >> let's remind you of the headlines before we head to break. investors wait for the sidelines for the fed with futures just below flat. they move closer to a deal after extending the current contr

a lot of people are thinking the boj and ecob should not be raising this year. that's what a lot of people felt. >> boj we can come to later because of course further data on that but coming back to yellen the tune i don't think remains the same. she is trying to suggest the economy is strong enough for a hike but maintaining that aspect she used last week and will probably use again. give me any excuse not to hike and i'll take it. there's the attempt to reassure that the economy is strong but i don't remain confident that they'll use that data to hike because no central banker wants to to an ecb, sweden, and norway and hike a little bit too early. they have seen what the repercussions are. >> but to make my point once again, why was the dollar up? why were treasury yields up? they wouldn't have done that. >> sure there was surprise in that. >> yeah. >> but the dollar particularly against the euro is where we saw it. we haven't seen treasuries move much so it's hard to read into it on an individual day but i agree. it moves, particularly the dollar against the

but the boj does not want to get ahead of itself.hristine: you are quite confident this will work. when do the markets stop expecting too much? if there is a dichotomy between what they are doing and the market is doing, does not work. lest we gotally, was speaking at a conference of economists. we will having a discussion i was leading on does the failure of the monetary expansion me for macroeconomics, because we all expected it to work. there is no question, if you're being honest, you have to be disappointed. core inflation has not moved up. the big thing is, unlike with the central bank talks about, moving expectations ahead seems to be hard. the fed talks about anchoring expectations, raising expectations, but it looks more and more like that may be a mistaken point of view. you can only move the expectations if you move the real economy. to hisat gets you back markets. the markets have been ahead of the curve, now they are disappointed. the good news is, their disappointment may not mean that much. it may not be as big of a de

boj is back-- the to her it started two years ago. is speaking live in tokyo ahead of his trip to new york to attend the yuan general assembly. at who may be next to drive vw and whether they can er the company back from the brink. how many iphones can apple sell? the demand for the mobile. ♪ francine: volkswagen's board is expected to appoint matthias mueller as its new ceo layer today. after admitting to cheating on emissions tests. we joined by hans nichols at volkswagen headquarters in wolfsburg. is outside a dealership in london. is appointing matthias mueller a step to recover? he is still kind of within the group. the meeting just started. they're trying to figure out who the next ceo is going to be. likely matthias mueller, all but set to be the next ceo. if you think he has a problem, it is only as he's part of the ofkswagen brand as a ceo porsche. in some ways, porsche is among the cleanest on the 12th brands. they don't have a big diesel footprint. porsche has been a profit center. to thes mueller comes position with a stro

unfortunately many to see what happens with the fed, boj, and the poc. to me when i look at the world, this is really a concern about china. we need to focus on what's happening in china. to the extent we have stability in the date of the market will be more reassured. the ecb'swe heard concern and we are likely to hear more from the g-20 financial heads that are in ankara. ryan chilcote is there. what is on top of the agenda? yan: certainly china and we just heard from the deputy governor from the central bank of china saying that the fundamentals of this country's economy are fine and the currency as he put it is more or less stable. china's currency in the moves as well as the slowdown in the chinese economy are two big issues for the countries here. in addition, particularly among the emerging market members, and there are many, they will be concerned about the u.s. raising rates. we got our hands of a draft of the communique and there is a reference to the need for clear communication and collaboration globally when it comes to raising rates and tig

the boj needs to change its tune in regards -- guy: give us a sense of the timeline.ry soon, they will have to change the rhetoric. the argument has been we will start to see evidence of inflation moving in the second half of the year. given what has happened recently, that will happen to some degree, but not to the extent the boj wanted. they will have to signal to the market over the next month or two. guy: thank you for your time this morning. mitsubishi -- we will get you updated on the corporate news. tesco and glencore. ♪ . . . this is a great place to work. not because they have yoga meetings and a juice bar. because they're getting comcast business internet. comcast business offers convenient installation appointments that work around your schedule. and it takes- done. - about an hour. get reliable internet that's up to five times faster than dsl from the phone company. call 800-501-6000 to switch today. perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. guy: welcome back. it is 7:30 in lond

let's get back to the boj that we referenced how they declined to move ahead of the fed. it sat on its hands. you present the japanese economy will struggle and the boj will be forced to take action before the end of the year? thryn: if they're targeting inflation, they don't have that. we saw inflation come out in zero and the target is obviously 2% and we saw second-quarter economic contraction for private consumption and private thestment both contract second quarter, so i think that the central bank is more likely than not going to ramp up its stimulus. if not in october, then in the coming months. if the trend continues, as we see, japan certainly was to avoid deflation. thelet: they want to do fleet deflation but shinzo abe is now more pressure than ever to come up with a fiscal solution. ryn: the market has been disappointing and they have internalized that disappointment. i think there will be more stimulus because they have a lot to lose. there is a lot of credibility on the line and i think he will seek additional stimulus from the fiscal side, monetary side to

we had 9 two day boj monetary policy meeting. we had economists saying they could be indicating to us when they'll expand their balance sheet more. that means more stimulus for japan markets. let's take a look at, yeah, this for you. it was a smaller small caps that played a lot of -- wreaked a lot of havoc during the asia. we're down 7% for shenzhen. i'm not seeing much reaction to the tops si turfy session we saw in asia. >> that's correct. you might have expected a bit of a correction in line with asia but we haven't got that. we've got .6% of gains for the foo ftse. italy is the lagard. we were up higher than that in the first hour of trade. like half a percent for the likes of germany. we lost a little bit of steam. nonetheless in positive territory. the u.s. dollar softening against the currency at least suggesting that people aren't really expecting that fed rate hike this week. today as you can see not too much movement in the euro, 133 and a little bit further weakness for the dollar against the en, 120.15. let's have a

boj, any surprises for you from the statements? >> you have to remember that he often likes to shock the market and that's why some people were thinking okay we don't expect it but maybe he will have a little rabbit to pull out of the hat. he didn't. and if you look at the detail of the text there's no surprises whatsoever. they decide shred two days before the fed meeting. if we were to surprise the market that would be a two day wonder. everybody will be looking at the fed after that and will have forgotten what we have done. they're waiting to see how things evolve between now and october and they'll wait and see although i don't think they'll be doing anything then either unless things turn really bad. >> let's talk about the commentary? did he blaze over the weakness domestically? the fundamental issues are still at home, aren't they? >> the recent domestic data flow is very disappointing. no doubt about that but what he said is don't just look at the second quarter when gdp contracted and consumer spending was weak indeed. lo

we could expect more from the boj. a lot to think about.o that a little bit later -- a lot of macro stuff to talk about. we will be talking to the governor of the central bank of norway. but for the meantime, let's return to our top story. hans nichols was at vw headquarters that could be heading someonwhere else. nigel parry joins us now. -- we will talk about electric vehicles and how they could make profit from this. nigel, let me start with you. how much damage has been done? nigel: an incredible amount of damage. the key thing for a brand is to have trust amongst consumers, and this will be incredibly damaging to volkswagen. they have done the right thing by the chief executive. but i don't think pr alone consult this. it is going to become a bigger story than the consumer will be left thinking, what is this company doing? guy: is it this company or this industry? there are the possibilities of others getting caught out. would that be something you would want, because it becomes easier to manage the process? iw miss of the wrong way, b

the debate i am talking about is the potential for more stimulus from the boj.economists see it happening as soon as next month. a little later in the show, $20 oil? goldman sachs is slashing forecasts, looking to go below $50 per barrel in 2016. not the base case but a potential scenario. mining the rout. we will look at one sector and stock in particular -- glencore -- with the biggest ball in the city of london to the price tag of four pounds 50. anna: thank you very much. he is up for the next hour. do information coming through from india is a central bank, said to take account of gdp growth in r.b.i. policy. india's government is set to plan a setting cpi target, system developments around the banking story in india. the central bank governor is set to get a tie-break vote. we will look at that story as we go through. much optimism around the indian economy in recent years, among the reforms that the government has been putting in place, a number of people looking for india to pick up where china left off. we will get more analysis as it develops. we shoul

attention now turns to the boj on a measure of business confidence, due out tomorrow.he data you will get later on. draghi is getting a test in the inflation debate. eurozone data is out this morning, lower oil prices could have caused inflation. meanwhile germany is posting its unemployment rate later on. we are looking ahead with hans nichols. what kind of the day is druggy going to have? hans: i going to call this tumultuous. we had the meeting later in malta. if we get bad data on the cpi, the expectation is for 0 for eurozone inflation. if it goes downward like we had in germany yesterday, the estimate was for 0 and came in -.2%, that will put pressure on druggy to expand the size and scope of qe. that makes the meeting in malta that much more important. to you and i can fight off there on who gets to go cover it. guy: i think probably jon ferro. what can we expect out of germany? this unemployment level is obviously a factor. story that we haven't priced into the german daily at? but that will be several months down. a lot of it has been mostly positive, a lot of

a low with a less than optimistic outlook for the japanese economy, and the pressure is on for the boj to respond and we'll be watching for that. reporting from the tokyo stock exchange. >> all right, giang, thanks. >>> other markets, a mixed picture overall in the asia pacific region. in china, the shanghai composite retreated from the gains for a one-week low, closing at 3092, down 1.6%. taandged higher after t days of losses closing at 8132, and share prices rose after central bank cut its key interest rate for the first time in more than six years. index was down more than 4% on the week. hong kong rebounded 0.4% led by casino operators. indonesia shares fell by .8%, and sydney slid nearly .6% reversing earlier gains. >>> there's a key piece of data released on how much consumers pay for their goods. the leading gauge of inflation was down for the first time in more than two years. firms say it fell .01% from the year before. the year on year figure was on the rise for 25 consecutive months until june. the july number was unchanged. index does not factor in fresh food because price

say the boj will keep the overall assessment of the domestic investments unchanged.y to be downgraded given instability. as singapore's dollar is weak or after a 1% gain last week. the ruling people's action party won the pole. it bodes well for continuity. monetary policy will remain and a tight labor market which is seen as the median term driver of core inflation. i look at how these currencies are performed today. of the rbain ahead minutes which we are expected tomorrow and the development out of china. where we are trading right now. 71.12. up zero point 3%. the japanese yen as we await the boj decision. it was like dollar-yanis slightly weaker. trading at 120. quickly checking on the singapore dollar as they wrap up the election. /95.apore dollar at 140 a check of the stories. angie: a highly encrypted instant messaging app journalists and spies. flickr was to be more than a communication tool for the secret super this -- secretive. an area easier to monetize. stephen engle caught up with the ceo. seo does not do things like you and i, she motors around on ele

a day or two after the boj cap policy on hold because they were betting on the resumption of growth,ation. when it comes to deflationary pressures, we are still seeing that. to do ae pressure credible fiscal plan. angie: got you. thank you for that. markets in japan opening. let's see how they are reacting to data. steady at is holding the mid 120 level -- mid-120 level. it is now back. yen prettyng the stable in the 120 range for this year. we have seen a rise of 14% this although economists do expected to fall 5% in 2016. we are seeing equity markets, investors cautious here. the nikkei rising more than 1%, but investors are more cautious with japanese stocks. globalportion of investors are overweight, and japanese stocks have declined 18% this month. gaining afterd gdp data out of the country showing growth accelerated less than forecast. missing estimates. the markets boosted by gains in oil prices, boosting energy shares. same thing happen with a u.s. markets now closing higher overnight. it was helped by those energy stocks. everything in the u.s. this week has been about the f

some economists say the boj could ease again next month. we'll watch that. take a look at what's going on with the nikkei closing today marginally up about .34%. also we have stocks closing down more than 3.5% and at a 2.5 week low, the global markets all waiting to hear from the fed on thursday. that's the big news. there's no shortage of expectations. the chief investment officer now says he sees, quote, below 50% chance that the fed hikes rates this week. inflation running below target but the cio still expects a move before the end of the year. used to listen to bill gross and now we listen to this guy. >> we still listen to bill gross too. >> tried to forecast stock pric prices. >> citigroup. a global recession starting in 2016 is the base case scenario lead by china. it's now our global economic's team's main scenario and uncertainty remains with the likelihood of a timely and effective policy response to that global recession that seems to be diminishing right now. >> everybody is already at zero. >> it's the reason why a lot of people say it should h

if you strip out the effective energy prices, this is perhaps what the boj governor alluded to.y and that bumps up the inflation rate to 0.7%. that is your call. 70,500, roughly. 17,500, roughly. he yvonne: japan is not the only country struggling to boost prices. the bank of korea may lower its inflation goal. aging population is slowing economic growth and has made it harder for policymakers to push isis into their target range. japan, -- back in abean, prime minister is working on support. he laid out new parts of his economics plan. we have the details from tokyo. isabel, good morning. tell us about this new focus and reboot. isabel: good morning. e was minister ab reappointed to another three years ruling term. what he has done is lay out a further three arrows. the first is economic growth, he is aiming for an economy of ¥600 trillion. he is trying to create a society more friendly for raising children. the third arrow is social security. haltim of doing this is to the slide in the japanese population which has been going on for a long time. there is currently a population

any event we have done to try it tofy it, boj, we find be a driver. the growth is still there.he question about china is not about where is it going to go? and what is going to the impact on the rest of the world? quantitative tightening has been a big driver of risk assets. in any portfolio management model, we would expect when equities to go lower, bonds would go higher. bonds and equities, they receive a lot of equities -- bonds didn't really as much. that created a technical pressure. gross reduction of bonds. technical than fundamental. jonathan: the technical correction has fueled heightened risk. it's at a point where it is so extreme you become a buyer echo antonin: sheet triggered some oversold signals. it rebound. is difficulty we've had there was a shock. we been all trying to explain it. been all trying to explain it. trying to find a spin. mutual funds were not in the office. fund managers -- hedge fund managers were not in the office as well. proxies,ook at market we need to differentiate between what the flows are make it -- are making. there has been a sizable

compare with the -- acting up -- if the fed stays on hold, does that increase the likelihood that the boj a qe1 hasn'tober 30? finished and they're already flagging the possibility of qe2. ecb, iin regard to the think they are more likely to move. casas, the in his is expectation that the u.s. rates will be rising at some point. they are sensitive to the currency. were the euro-dollar were to trade above 1.15, that would increase the chance for ecb. chris turner, great to have you on. thank you for joining us. a quick check in on currency markets. , a little bitex weaker ahead of the fed decision. down .2%. dollar yen down. zero, what you find a story euro. cable, 1.55 flat. fed decision later today. let's talk commodity markets. the 120 day correlation between the bti and the u.s. dollar index moved in zero last week. will kennedy joins us now. well, is it by magic you appear next to me? talk to me about this breakdown in correlation. what has caused the breakdown? well: it is been one of the main u.s. -- that put pressure on the account deficit. a lot less oil. that's made the relations

he says the boj should it is the program by $83 billion.ys the bank policy would be a good opportunity. have --a's rates australia's jobless rates have dropped. that suggests record low interest rates for falling currency and weak wage growth are encouraging hiring. the new york credit rating has brazil enjoyed an investment for seven years but has been hit with a worsening economic outlook. apple's annual product launch took place in san francisco last night, new offerings including versions of iphone, ipad and apple tv. shares down 2% after the big reveal. the market was weaker. the 12 inch ipad pro was revealed by a new digital stylus. apple said back things about the stylus in the past. in 2007, they talked about the stylus ring a bad idea. a lot of commentary about whether that is still the case. this is seen as an optional additional product. the ipad pro is aimed at businesses and design. the stylus didn't come with the device. it does push apple into a new direction it -- direction. >> they start -- they charge extra for the stylus?

-- boj is not alone in being a central bank that has a great deal of its countries owing debt. >> yesed. quantum easing has been fashionable among central banks. ecb is doing it, u.s. has done it. japan is doing more. however, i would say the fed made quite successful ends to that. now they are about to raise rates. however, in japan's case we had some success -- pardon? anna: carry on, i apologize. >> no worries. positive aspect was that yen but the costeak, is a rising percentage. owns moreank of japan than half of its debt with rating companies continuously cutting down its credit rating, i think the long-term credit ability of japanese yen and government debt will be increasingly in question. that will gradually and eventually undermine the ability of the japanese public policies. anna: do you think more quantitative easing is coming? >> that seems to be the only way. in an ideal world, there would be more structural reform, extending retirement, there would be more opposition -- competition, perhaps immigration into japan. then, unless japanese government became's -- becomes bold

we will be watching the boj later today. as we look at hong kong, barely holding on to again right now on the hang seng index. it is up a fifth of 1%. those movers here today, china life among the insurers. china life leading at 2%. the flagship company leading the clients. among the property developers. on southeast check asia. jakarta joins us for the tuesday session. australia is the key focus, the change in leadership. malcolm turnbull will be sworn in as australia's prime minister . he is a former investment banker. he has pledged to build business confidence and to present a path forward for australia. let's get it over to paul allen. australia needs a bit of stability. how could this be good for business right now? if i take you back to 2009, when he was the leader of the liberal party. he lost to tony abbott by just one vote. the governing labour party self-destructed. the path was pretty much clear for tony abbott to easily win the election of become prime minister. he was never terribly popular with the public. com

they cut the country's credit rating after the boj decided not to add to the stimulus. japanese gdp is below that of china and korea. economists are divided over what the federal reserve is going to do in the closely watched rate decision. fund says hene doesn't care about the fed. nextalio says it is the economic downturn. follow me on twitter. by an 8.3gered magnitude earthquake are coming ashore in chile. authorities are either qa coastal areas, warning of strong aftershocks. let's head over to zeb. he's monitoring the situation. zeb: the aftershocks continue. they are concerning given the fact that it is a public holiday in chile. many people waking -- making their way of santiago were already at the beaches. town, a unesco world heritage site. did those throngs of tourists and holidaymakers get to higher ground? the good news is that we are not hearing of any reports just yet of injuries or deaths. we will continue to watch out for those. as for the sea levels, we understand via the pacific tsunami warning center, wave heights on the chilean coast being reported in

boj makes decisions today. maybe we will see something in october. morning, thes this government plans to tackle 4.6 alien dollars to help prop up the country's equity markets. malaysia is to bolster confidence in its financial markets after international investors took almost $4 billion from equity this year. that's more than double the amount for all of 2013. inflation showed a deepening price decline. consumer and wholesale prices both eased in august. r.b.i. governor has resisted pressure from the finance ministry to cut rates. u.s. stocks halted their today climb. investors remain wary ahead of the fed's decision. let's crossover right now to new york. su keenan has been tracking the action on wall street. they're calling it a tug-of-war in the market. are still waiting to see what the fed is going to do. nothing else really matters. he had this is one to be a fun week. a 20% chance down from 48% for the chinese currency. that will raise rates 59%. we had a relatively late volatile market. so roughly a third of a percent. we also jewish holiday

they cut the country's credit rating after the boj decided not to add to the stimulus.se gdp is below that of china and korea. economists are divided over what the federal reserve is going to do in the closely watched rate decision. fund says hene doesn't care about the fed. nextalio says it is the economic downturn. follow me on twitter. by an 8.3gered magnitude earthquake are coming ashore in chile. authorities are either qa coastal areas, warning of strong aftershocks. let's head over to zeb. he's monitoring the situation. zeb: the aftershocks continue. ey

economists are pulling for the boj to do more to weaken the yen and help other japanese economy. >> they juan more stimulus. the nikkei is down just below flat about 0.2%. for an update in full on asian markets let's get out to pauline on stand by. >> we're seeing a canvas of mostly red here as investors are concerned about the fed decision next week. let's take a look at the shanghai come positive because it was pretty much up on the fence. investors are looking ahead to sunday as well as fixed asset investment. susan was mentioning what's happening in japan. now the index did rebound. the central bank in korea deciding to hold the interest rate steady at 1.625%. policy makers may be letting the two previous rate cuts through the system. they'll be watching that china data closely. 25% of korean exports do head to china. now i want to show you the composite. it closed down .6%. we have another central bank decision coming out. in about 45 minutes with what to do with it's interest rate. the interest rate will hold steady at 3.25%. some thinking that the central bank may let the weakenin

october is shaping up as a key month for the boj pressure growing for more easing.other scandal carmakers. on -- bmwres how shares fell. the, sharp drops as electronic maker says they will miss profit forecast. they consider and sell considering selling a stake in their operations. indonesia getting underway, here is david with a look at the markets. david: it is quiet out there. you have to look at the map. at a sharper than expected weekly loss. erased a lot of this. i

the expectation was that the boj and ecb could continue to pump money into the system to offset issuesal economy. we do have breaking economic data. it is u.s. weekly oil inventories and matt miller breaks down inventories. matt: it is falling. 1.92 million- barrels to be exact. more than the estimate. you are looking for a drop of 1.1, so that oil strength that we saw this morning even with the chinese pmi is set to continue for the session. i want to go through the numbers . gasoline inventories actually rose 1.39 -- 1.37i should say 762ion barrels and we are as the forecast, so gasoline inventories rose and they actually had a drop of 2.1 million and we were looking for a gain of about one million. 2.2%, so wefell same as2.2% drop, the last week and only looking for about .5 of 1%. we had inventories falling more than anticipated and as a result, the crude continues to rise. alix: they were entering refinery maintenance for the next couple of months, so you are seeing refineries call back a little bit. will watch the product stocks built. we will take a deep dive on oil. let's get t

there's also a sense that we could see more movement from the boj, more movement from the pboc as well let me finish by saying we've seen these gains before and whether they're going to be short lived or whether they're going to be sustain sd the big open ended question here especially as we're heading toward the fed meeting next week. that's where we stand. back to you. >> thank you so much for that. let me pick it up here with european markets we are seeing the european equity markets charging higher. dax up by 1.7% as well and cac 40 with bigger gains of 2.2%. let's take a look at some of today's best performing sectors. cyclicals driving the gains across the stoxx 600. bmw higher by 3.4% and these are the stocks that suffered as a result of their exposure to china and close behind is the auto sector's basic resources with miners trading higher across the board remember on monday we saw the big debt cutting plan that spurred gains in the sector. also up by 4.3%. shares of ryanair are soaring after they raised their profit outlook by 25%. this thanks to a strong pound and poor weathe

boj, people's bank of japan, central bank in china.rs central banks are pumping in as much as they possibly can to create inflation. markets coming to the verdict it hasn't happened. trish: i have to take a quick break. thank so much. we'll be back with more after this. [ male announcer ] we know they're out there. you can't always see them. but it's our job to find them. the answers. the solutions. the innovations. all waiting to help us build something better. something more amazing. a safer, cleaner, brighter future. at boeing, that's what building something better is all about. ♪ : >> all right, everyone, so far, so good. a nice 200-point rally. on the dow. we'll see whether or not it lasts. could be a wild ride is history it proof over the last few sessions. it has been. connell is taking you into the close on the nyse. connell: a lot of fun in our never boring world in the stock market. another triple digit move, 200 points to the upside. we'll take that following yesterday's dramatic move lower. the dow jones industrial average

the ecb and boj in particular because them tightening, if we're about to get another bout of easing,what they're about to take. >> should they be judging it on the u.s. economic situation. >> a agree with you on that but you can import deflation. >> now they're saying they're the global central bank to the world except for being for the u.s. >> listen a agree with you and i agree with the sentiment but if you're saying it the other way, you can import the deflation in china growth slows a lot and also if the bank of japan and the ecb ease themselves then the dollar is strengthening and tightening in it's own right. >> that's the feedback loop they're talking about. slowing exports, stronger u.s. dollar but the take away from a lot of the analyst and economist notes the day after this is. >> doves. >> doves, absolutely. more doves. in fact a doubling in the number of fomc members that have pushed their expectations for a rate hike until it went well past 2015. you're really enjoying the footage. >> hawks are much -- look at those. i like that. and also a hawk looks some what russian.

so i think confidence in the boj bank of japan is quickly, quickly dissipating these are dangerous smul >> given the -- lack confidence right now in central bankers, given that they have most likely created some other kind of bubble for us all. do you think that there's going to be a movement at all ports finding some other way, some other system, i mean, we had steve forbes, and he talked about it a lot but making an interesting case again for the gold starntd. we have steven moore congressman and earlier in the program saying we need a measurement to a basket of goods, commodities that would include gold. what is your take? how do we -- we install discipline into these markets? >> well i think it's markets that are reinstalling the discipline right now. steve cortez is right that this is a global central bank failure. you know when the chinese's best idea is to start arresting people until stock market goes up you know they're desperate at this point, and you mention the problem with japan. and as far as our central bank goes in ecb, they think that they still have it right. it won't

it can help feed into the boj target for inflation. willie: conditions are set.uestion is whether executives will pull the plug. investors are looking at the prime minister and saying, do your part. thatny ways, he is hoping executives do his job for him. we are waiting for these reforms that make japan more competitive and more vibrant. once we see that, we will raise wages. rishaad: what is wrong? why isn't he getting on with it? been more or less guaranteed to be premised or because no one is running against him. he has the political mandate surely. willie: his political mandate from the very beginning was to end inflation. he has pivoted to national security. big combo smuts, secrecy bills, -- big accomplishments secrecy .ills, a lot less focus the problem is one of distraction and a bit of a bait and switch. almost three years then, we have to admit that is the case. --l the premised or focus on will the prime minister focus on the economy? rishaad: great talking to you, as ever. let's take a quick look at the china market open. shanghai on the way down. han