the boj is already renting money a lot, and the boj share of bonds in the market is close to 50%.n continue to expand the balance sheet? xit?how can they e we don't know when the boj will give up buying bonds. they will keep it up for the next 2-3 years. >> what is an investment outcome from this? >> if the interest rate remains low, prices benefit, and in the end, we talk about a bubble situation of japanese equities. >> it looks very interesting, doesn't it? us today.for joining the chief economist for japan at credit suisse. rish, back to you. ♪ ♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin with the unveiling of president trump's plan to overhaul the u.s. tax code. the white house considers this effort one of their biggest priorities to boost economic growth. the proposals at revealed earlier today were dramatic, they called for sharply lower rates for businesses and individuals. also eliminating key tax breaks. it represents a first moved to begin negotiations with congress. i am joined by dennis berman of the wall street journal pet

the boj, watching the boj. no changes expected.e world waiting to see what the next , when it could likely be. kathleen hays has more outside the boj in tokyo. good morning to you, betty, and everyone else in your, good evening. no surprise, but this is of course an important meeting, where they issue a monetary policy report. the actual inflation rate is so far away, there's action no justification for the boj two make any policy change. let's jump into the bloomberg. it tells the story so clearly. what you can see are three lines. the top two lines are the inflation rate. , well overe numbers negative, where it was. it goes to show that the prices caneek energy have. as i said the monetary policy report will include the forecast for gdp and inflation. point, people saying the change inght see is a the forecast. maybe a better view of why the boj remains optimistic on the economy. inflation gradually getting to where it has to go. the boj governor kuroda optimistic about where they're going. there's so -- they are so far off from

we believe the japanese yen will by what the boj meeting tells us by what the boj meeting tells us onrtantly, what the march cpi figures reveal. if we look at the forecast, we are not expecting the boj governor to announce anymore policy. this is his final year as governor. we do not believe the inflation risks are high enough to warrant any change. has gotten to be said policy still could be tilted. haidi: we may be getting tax reform details from donald trump this week and another u.s. government shutdown. more dollarpect weakness short-term. what you said is correct because the dollar is range bound to be a little bit on the weaker side of the range. the news that the donald trump will introduce a tax reform plan on wednesday is positive for the u.s.. it comes down to the timing. we saw it when ronald reagan was president. it took 10 months. steven mnuchin came out and said august is ambitious and unrealistic to implement these packages. given the federal reserve penchant for graduates asian, it is off thejune table. if we have to wait until september, it means there is more room f

the boj is only halfway to its price target.to take a quick look at the euro, which surged after the french vote. 121s falling back below after draghi made a commitment to stimulus. ecb holding off on exiting for the meantime. let's check out japanese stocks are set to open. we can take a look at the futures board, we are looking at that set up in tokyo, seoul, and sydney. the software open down 2/10 of 1%. japan's reaction to cpi. thank you, the reaction to that japan data. let's get back to our conversation with former senator max baucus, former u.s. ambassador to china. we had a conversation on north korea. china walking a fine line between the u.s. and pyongyang right now. i am curious to get your take on this. is north korea going to be the corridor that china uses this regarding trading currency issues? how significant is north korea as a bargaining chip? sen. baucus: first of all, it is a mistake for president trump to ,uggest he bargain with china north korea, for trade. a big mistake. urgency of the national security th

she is covering the boj meeting.f ecb, and what you think mario draghi and company are thinking, looking at these results. were all while, they set, yvonne, to go full speed ahead. the european central bank, on patience. waiting to see how these pan out with an exit strategy. there was hope that if the results of the election do not , do notthe markets create some kind of tension that could affect the banking system, it might speed up mario draghi's past-due normalization a little bit. the head of the national bank of austria, the member of the ecb's board, had set out to reassure markets if there are any issues, we have the tools to back up the banks. the central bank says in advance to keep everyone calm. the real question is, will a stronger euro area economy, which we have seen recently, will this lead mario draghi the head of the central bank? something to the bloomberg and look at #1131 because you have got gdp rising. inflation has definitely risen from the lows. for a while, it looks like it was approaching t

for the latest from the boj and the fed.etty: and we will have more on the imf and the push for more open markets. plus, in minneapolis we will see if the samsung will boost its image. guru iswhere a tech located. daybreak asias come alive from the u.s. and asian headquarters. i am betty liu. 7:00e: it is just after a.m. here in hong kong. this is on a positive note. steve mnuchin said tax reform could be coming soon. but no real details. this: it is just words at point. how many times have you heard people in washington say this will get done and then it does not get done? however, at least today it was enough to get the markets to this day rally. at least on the asia side, the u.s. is ending the week for you on a positive note. yvonne: let's see how things are in new zealand. the index firm, up 1/5 of 1% on the index 50. take a look at the kiwi. yesterday there was better than expected inflation data. a lot of dollar strength coming in. .7525 for the aussie. take a look at the dollar-yen. a little bit of the mnuchin affect

this is something that boj might reference.and probably to do nothing, the question is will they raise the inflation forecast? bloomberg intelligence is saying no. it will also be interesting what they say about energy pric. that is amething plus, not necessarily because they want to see people pay more to perform you'll and their cars, but because hopefully it feeds into inflation. they are hoping to see inflation expectations rise, something that is very important to boj right now. we will see when we get the monetary policy report on thursday afternoon. we spoke to an who said inflation expectations are falling. that withe more on the boj meeting coming up this week. thank you. president has urged restraint over north korea after a phone conversation with donald trump. the u.s. president also spoke with japan's prime minister. let's get to our asian government editor with more on that. great to have you. this is the second phone call that the chinese president has made with trump. this comes as the u.s. and japan begin joint

betty: how difficult is that going to be for the boj?y it is going to be more difficult to find that bottom therefore that bottom there for rates. how did the boj take control of that you'll curve -- yield curve? aan: it is definitely difficult -- brian: it is ask.nitely a difficult t i think that boj has the situation under control. but we have these mixed sets of dynamics from gdp growth seemingly upgraded, accelerating, imf raising its forecast yesterday for japan's gdp growth. and we're hearing from economist that many are scaling back their expectations for when the boj might start to taper. i think most of them won't does think it will not happen during mr. kuroda's tenure, but we also are in from that hearing from people who are in a position know that the boj is planning on lowering its inflation target -- week.ast from next inflation is perhaps cooling a bit and the boj will have to find a way to modulate that. manageto find how to that issue. i wanted to bring up a chart, ofch i think brings in a bit what is going on here in th

anna: the boj set monetary policy today.eaway, the central bank lowered its inflation forecast just a little bit. manus: all global demand has been sporting exports, four years of extraordinary monetary policy stimulus generating only the smallest of increases in prices. stephen bell is here to help us make sense of the great central bank conundrum. us have essentially told that they are turning towards a moderate expansion in the economy. downgrading their view on inflation this year from 1.5 to 1.4. that's aardly say quiver of arrows that are fully impacted on the bull's-eye. >> however, if you look at what the situation in japan was before that quiver of arrows, the nominal gdp is clearly positive. things have improved. the unemployment rate in their own alternative or additional measure are extremely favorable. least the deflationary fears receded. they got the wrong type of inflation which was higher and a combination of oil going up and the yen going down. the end has stopped its calamitous decline, but that was part o

where does that leave the boj with this patchy recovery, but an overall sense of optimism?oj toink it leads the be careful, taking each step carefully, and of course this year at some point in the talk is a tapering and no more expansion. bit has been pushed back a as mr. corrode or his remarks last month was dovish talking about the price outlook, so now many economists are saying we may see the fourth quarter some sort of adjustment to that targeted yield for the 10-year it or widen it a little bit, but for now, it looks like the boj will be standing pat, monitoring the effects of the trump administration on trade, watching to make sure that external stimulus remains ready. haidi: that is a wildcard come isn't it, the trump trade, the dollar and again. thank you for that. we will get more analysis on that tankan survey later in the program. we will be joined by izumi devalier live from tokyo. up next, j.p.'s chief asian strategist joins us. this is bloomberg. ♪ haidi: i am haidi lun in sydney. this is "daybreak asia." richest man expanding his presence in canada with the

the boj's first tonkin survey is out later this hour, with the weaker yen.hat is true a with the index rising from 10 to 14. the survey is expected to show sectors are optimistic about the coming quarter, reflecting stronger exports and fiscal stimulus. scotland's first minister says her timetable for a second referendum on independence from the u.k. is the right one and she will keep pushing for a vote. not discussit would a date while brexit negotiations are underway with the eu, however, nicola sturgeon says the government's position is untenable. >> i don't think the position of the prime minister which at the moment appears to stand in the way of the scottish parliament is a sustainable one, but i will discuss this with the u.k. government in a constructive manner. my view is clear, the will of this college -- the scottish parliament must be respected. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. >> the days ahead on wall street, focusing on the friday's jobs data, auto sale

ahead, the boj meets and it ebc decides. it's the week ahead.his is bloomberg real yields. ♪ jonathan: this is the berg real yields and -- bloomberg real yield. they will decide if prime minister way will continue to be busy. the roundtable is still with me. i'm going to call out kevin. he said i've been right all year. asked me what i'm going to be right about going forward. he said i want in on treasuries. >> my shameless plug. none of this prices me to this point. if you remember, think back to november, when we took the 10 year lower. what was it based on? it was based on progrowth administrations and the regulatory environment and re-inflation trade. this was going to become law. here we sit six months later and none of this is happen. the market become skeptical. you add geo-risk to the mix. inflation has started to go down. the numbers are getting weaker. we are talking about 1% gdp for the first quarter. the problem continues to be the problem it always was. you thought when you had the house and senate with the republicans and republica

a good on the other hand, we see analysts setting back their forecast for when the boj mesa to taper, probably not this year -- when the boj might start to --er, a bubbly not this year probably not this year. so mixed signals. we see some signs that packet -- that cap x is looking pretty good. i would guess that domestic demand, based on what we see solid, maybefairly not enough to entirely offset the slowdown in exports later. haidi: we'll focus on the positive for now. blowout trade numbers coming from japan for the first quarter. china's economy continuing to face significant risks despite stronger than expected fiscal gdp. -- tos according to8 guan tao. tom, guan was calling for faster reform on the chinese currency to broaden the trading been. -- trading ban. tom: that's correct. clearly, there was this call for an appropriate level of speculation on the yuan, this onshore yuan, that is, which is largely traded by banks. he wants to see more participants able to trade. he says the benefits will be greater liquidity and also that the yuan will be able to price itself more accurate

driving boj behavior regarding your current guidance.t international investors see any hell a success, not just japan but its reference point to the u.s., will push the yield curve in the direct and of changing guidance toward the second half of this year. i don't think it is sustainable given where other bond markets are moving. global trade looking better. we will talk more about u.s. and chinese in our next conversation. in japan, always material. reporter: extra could be linked to -- it is a virtuous circle. the circle gets three quarters of the way around and that does not get through to japanese workers. is the boj responsibility, the government responsibility, the -- we have to look at the transmission from policy to workers. it is broken. they give much. simon french stays with us. manus: talking oil and opec. painting a cautiously optimistic picture for oil. if the market finally rebalancing? that is the question this monday morning. this is bloomberg. ♪ >> welcome back. here.daybreak against the yen a lot ofy flat against curre

that is the boj pull target of 10 year yields.his is also a reflection of what is happening with global blonde -- bond yields over u.s. treasury yields continuing to fall. even though we see a slight rebound in asian treasures -- trading. when will this start recovering and will happen to the boj policy to continue on bond poses best purchases in the 10 year sector? >> for the boj they are being driven by what is happening in the global situation in their very much a derivative after the moment. 0% on the 10-year is the target. they will be worried about the flattening of the curve. that is certainly a concern. at some point they might start pulling back their purchases. but then that might send it towards capering. they will ignore some of the current moves. intomight move slightly negative. japanese growth is picking up slightly. on the treasuries issue, it is a much bigger issue. we are seeing the premium being price that. what is the trump premium? there is no reason why we should go back to yields before the election. there's

he says the boj will be continuing with an accommodative monetary policy.nd we will hear from prime minister of canada justin trudeau who defended dairy subsidies even after we just heard president trump double americanhe vow to help farmers. where the look at major averages stand. abigail doolittle is standing by. averages inhave the rally mode. all on pace for their best day since march 1. we see the down the nasdaq up about 1%. all on pace for the first weekly gain in three weeks. and the dow transport up 1.7%. a really bullish day for stocks. one stock helping the dow transport along with the s&p 500 and the nasdaq. csi, the railroad company rallying in a big way. they beat first-quarter estimates. and investors are very positive about the ceo hunter harrison's turnaround. addition, they announced a stock buyback and an increase of dividend. a top boost for the dow, s&p 500, and the nasdaq after morgan stanley said the path is clear for the super cycle we have been hearing so much about. pace for the middle of march. facebook up more than 1% on pace for

francine: what have you learned in your time is head of the boj?on't know if it is as difficult as you thought to manage this kind of economy. [laughter] >> it is challenging, but depending on the economy and but theonditions, current qe and current cost control. but i think it can be managed in a reasonable way. no particular concern the increase balance sheet, or interest rate on the short end. francine: your term ends in a year from now. how many investors from -- how many questions from investors do you get about if you will stay on? [laughter] the cabinet -- with confirmations by the national -- outside of my death [laughter] francine: i understand, for once, if you were asked to stay on, governor, would you stay on? think that is a question i better avoid. [laughter] francine: i will try again in six months [laughter] . -- i will try again in six months. [laughter] is d but francine: but is that the question you get the most? [indiscernible] in the international markets, long-term interest rates have been rising, but in the last couple of mon

a caution, not surprising as we talk about the boj.oe a look at the gmm function, you can see the mckay nikkai is consolidating. saying,eeing the and warning signals on the index. you are seeing chinese equity markets continue to fall. the declines, gdp data showing economic growth accelerating in the first quarter. being helped by a cheaper one, still on the market there pessimistic. crude it down .5% after two days of gains. in vectors weighing expanding crude reduction against easing bloated inventory. we do have treasuries falling animation trading. markets across asia remain a little bit mixed. it is all to do with president trump. expected, not much details when it comes to that tax reform plan. anchor: that is exactly right. the hypothesis worked in this case, he did telegraph he will announce something on taxes. orchids were disappointed we did not get more details. did,a look at how the u.s. the s&p 500 closed down a point and reached a record at one time and was knocked back by the tax plan unveiled. nasdaq composite unchange

you see change in policy from the boj?ter data be enough cool the boj to stop and pick about what they are doing? central banks are starting to tighten or think about this. marie: i think the boj will be the last one in that case of removing liquidity from the market. at some point, it will, on the agenda regarding japan. probably after the fed and after the ecb. great chart here. it is 154 in the library. it is one of the earlier ones that we put into the #the library. it is a central bank library of the gdp. europe, in white you see the fed hovering around 25, 30 5%. japan.y see the bank of the balance sheet is so huge compared to their gdp. will that be a problem for them going forward? marie: another central bank that has a huge balance sheet. indeed, what you are showing is definitely the case. central bank and swiss central bank are the two outliers and this content. sheets, we have to lick apple size. with your assets you need to .over the liabilities the demand for money and the money that commercial banks hold wha

you still have the yield curve management of the boj. they are trailing other countries.: you are back to the classic, long japanese equities and short yen. >> yes you have to be tactical about those moves. faber shorting japanese yen. haidi: i played the contrarian. global chipmakers you should add. this talk of anti-globalization and anti-trade sentiment? are not to that anyone's benefit. even in the u.s., yet seen president trump's policies carried out. importard to place an tax on imports into the country. when you look at the ship makers , it is a question of valuation. all you need to see is the fundamentals becoming less bad. that is what we have seen. ship makers are still priced for global trade. there is a lot of valuation buffer there. there is a lot of potential there. haidi: always a pleasure. get out there and enjoy the sun. a&p capital head of dynamic markets. more guests are coming up. later on this hour we will be .oined by someone from s&p then we will be hearing from goldman sachs japan vice-chairman. later on you can see the goldman sachs international

when does the boj start doing that?ey need to start thinking about that with the balance sheet the size of annual gdp? >> they have been thinking about it for a year two, but the move i sent to her -- move last september is an implicit tapering. in march, they announced the option schedule for jgb purchases, and people, the bank of japan reduced the size of jgb's they will buy, so this tapering has are started. right, well let's get more to on shinzo abe and that third arrow. one of the tenants was possibly reform when it came to corporate boards and corporate governance as well. you have toshiba, and it seems like it is an almighty mess. again, what needs to be done here and what are your thoughts on toshiba with regards to that? >> in a broader corporate governance context, one of the poster children of structural so nowalong with tpp, that tpp is gone and corporate governance come a yes, there could be some progress, but as you see in toshiba, there is so much more japanese companies have to reform the corporate gove

keeping -- see what is keeping the boj patient.d to change the gdp for cost -- forecast. though it is gradually improving, and the gdp is doing just fine. kuroda said last week growing above trend. near inflation in japan according to the bloomberg intelligence team, but the 2% is so far away. let's june and the bloomberg and look at 7942. we have all kinds of japanese , now hereto look at 0.3%. if you look at the boj principal core measure 0.2, it is moving in the right direction. prices,ake out energy then is weaker territory. everybody is focused on the weakness of the yen. the oil prices is certainly a big factor as well. adam howson of the peterson institute maybe corrode his job has gotten easier -- kuroda's job has gotten easier. >> they have shifted now from worrying to have to reflate the whole economy to now just worrying about inflation expectations. they have a limited job. -- kuroda and his colleagues, it is all they can handle as opposed to being responsible for the whole thing. and their main job is the economy and i

the former boj executive director says in state of raising the yield -- instead of raising the yieldarget set at zero, governor kuroda could switch the target to yield of bonds on shorter duration. the prime minister has wide a free-trade agreement with india will not be happening anytime soon. malcolm turnbull made his first official visit to india. a 12 month deadline for security bilateral trade deal. points include labor mobility and -- turnbull says india has a long tradition of protectionism. united airlines is facing a social media storm after a passenger was forcibly dragged off a plane due to overbooking. the carrier had asked for volunteers to leave, because united staff needed seats. so security officers dragged a man away. united has apologized for what it calls the overbooked situation. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm rosalind chin, this is bloomberg. haidi: let's get back to one of the top stories. toshiba trading lower, around 4.3 percent coming off session lows of over 6% today, just ahead

boj falling further behind its global peers after cutting its inflation forecast.i and ecb stating risks are not over yet, just a question of how the u.k. economy welfare after brexit. that is something that we want to speak with with neil mackinnon. you are going to get a look at this chart. five-year forward inflation rate. is off the record lows but it is off the highs of a month or so ago. should the ecb, given that chart, be tightening policy, or loosening policy less, as everyone is talking about now? neil: if i were mr. draghi, i would say, what is the problem? the actual core cpi number is below 1%. therefore, does not really compel me. the matter what the germans may say, where inflation is higher, would prefer the ecb qe program a little earlier. i'm chart suggests, and surprised the ecb did not do anything today. the fallback position of mr. , if we tighten now, inflation is still too low. the risk of a cyclical economic recovery, that is all good, relatively broad-based as well. but i think it is clear, mostly because of this chart, the inflation number

it has been a couple months where we have seen above the target the boj wanted it.born following the reflation trade. atty: the u.s. 10 year yield 2.16%. it is beyond their control. made the job much harder for the boj, given the relentless fall we are seeing in yields, how quickly that reflation trade has evaporated. as you mentioned, you have this great chart earlier showing how the 10 year yield is dropping. whoever said the treasury bond over,, the bull market is spoke too soon. here are the charts where we have seen yields, we saw a spike earlier last summer now coming down. as we mentioned, back down to zero here. yvonne: this is still a bit dated, it is hitting the zero mark. we are still waiting for updates. but it is something to watch when it comes to that 10 year yield. more to come, a busy day for earnings in the u.s.. we will talk about that. this is bloomberg. ♪ companies, with good earnings. it has been tough for ibm. superlative out there now after the latest miss for its revenue, 20 quarters down in a row in terms of its loss in terms of revenue. le

this is the pushing the idea of the boj anywhere near an exit further over the horizon.e likely that the number will not be over 2%. than likely to be later 2018 giving us a sense of a and policy formation that is likely to come out as a result of that. are going to be talking about was having brexit. what is happening as well with the ecb. let's focus on the middle of those. today, in luxembourg negotiations guidelines will have to be improved this weekend. -- approved this weekend. theresa may and commissioner president and the chief brexit negotiator. a spokesman called the meeting instructive. joining us from luxembourg where this meeting is taking place is nara. maybe showing a tougher chance than the u.k. anticipated? draft dated april 25 showing a stance from the eu on issues like financial services and citizen rights. specifically on that in the document has been separated from the wording on a trade. that might come as a blow to theresa may who as we know has been looking for a sweeping trade deal encompassing financial services. on the issue of citizens rights

a weaker japanese yen the boj trims inflation forecast.ll as president talks up inflation. a marginally stronger dollar. treasuries are on and off with the margin. let's get the markets open 15 seconds in. alix: moderate trading to the upside. the doubt up by 15 points. the s&p 500 about 10 points away from their intraday record. a huge earnings day. we have 65 companies reporting today. and that feels to me what will be the huge driver. we have eco-data coming out at 8:30, initial jobless claims are a little bit light overall, really great. the march number was a little bit light although the shipments number came in and the highest since the third quarter of 2014. so how the stock revises itself will be in question. by 5%, it was up 12% in premarket. the first ever quarterly loss since going public but the loss was not as bad as was expected. with earnings up year on year but it had recall costs and sales are slowing but the average price per vehicle rose nearly $2000. bristol-myers getting a pop of 3%. key cancer drug sales were higher

as the boj eases their monetary depreciatedhas towards 120.ank of japan easing has come to the final stage, so that the impact is now slowly disappearing. the u.s. tightening of the monetary policy is not probably as much as the market has expected. those two factors combine has resulted in the gradual appreciation of the japanese yen or gradual depreciation of the u.s. dollar these of the the japanese yen. right, i bring up a chart while i'm asking you this question, #7744 questioning whether japan is an fx manipulator. as a percentage of gdp, 4%, the middle one is where we are when it comes to begin itself, and that is the trade surplus with the united states. you could make an argument could you not that after comments made by donald trump last week, he said the dollar was too strong and we saw the dollar fall, you could say he is the pot calling the kettle black and given the dollar move in some would argue verbal intervention in the market, and other words currency manipulation. think hiseah, i remarks have affected the currency markets s

guest: the boj is holding a meeting at the end of the month. to be updating their information outlook. the information outlook should be aware even though consumer prices are picking up. there is a 1.5% projection for fiscal year 2017 that is said to be too high. david: thank you for joining us. let's have a look at markets right now. we were talking about how tepid equities has been. 0.2%.ai composite down let's see what happens in china. nikkei 225 just going into the lunch break. there we go, 0.7%. have a look at korea, taiwan, and singapore. the rest, nothing very interesting. up, we are going to be talking about casino operators because we are back in the game. starting to thrive again after president xi. this is bloomberg. ♪ i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for you

the boj is expected to keep policy unchanged.hat decision tomorrow. >>> to the big movers after the bell, chipotle shares getting a premarket pop after reporting strong results but the craving was overshadowed by a data breach. landon dowdy has that story. >> reporter: shares of chipotle up about 3% in early trading. the fast food chain reporting better than expected earnings as more customers headed to the restaurants and spent more money while there. same-store sales rose 17.8% in the first quarter, well above wall street forecasts, but the earnings report wasn't all so rosie. chipotle told investors they had a data breach. customers who used a credit card within the last month could be affected. >> we immediately began an investigation with the help of leading cybersecurity firms, law enforcement and our payment processor. we believe actions we have taken stopped the unauthorized activity and we implemented additional security enhancements. our investigation is focused on current transactions that occurred from march 24, 2017

eventually, neither the ecb or boj seems interested in the slowing expansion of theirs.ring in cameron crise, our macro strategist. and still with us, matt boesler. cameron, and you for joining us. you have done interesting work. you have a counterintuitive theory. >> i was attempting to demonstrate that as long as the and boj kept buying bonds, it could put a lid on treasuries relative to where our fed policy and domestic fundamentals say they should be. what i found was quite the opposite. there is virtually no impact that central-bank balance sheet have on the level of 10 years. showinghave a chart where 10 year treasuries have gone and where they would go theoretically. cameron: there is no difference. year,ite line is the 10 where 10 year treasuries traded. the blue line is a model that does not show central-bank balance sheet input. at the orange line, which you includes central bank balance sheets. scarlet: is this surprising, this conclusion, given so many people that once the fed started winding things down you would see an impact? matt: i do not think so, what

anna: today, the boj kept their monetary policy unchanged. we've had a flood of data out of japan. indicating that japan saw a modest recovery, yet inflation did not budge. consumer prices, excluding pressured increased .2% in march, in line with forecasts. we talked a lot about japan and the boj yesterday, we talked about what they were saying how far off any change in the qe program might be. i guess that looks to be sensible, when you think about how sluggish the inflation story is. have this national agreement on wages in japan. it will keep them suppressed for a little bit of time. unemployment is low. 1.5 jobs for every person looking. -- anna: 2.8% is low. luke: and anywhere in the world you can can -- can see that come true -- but not seeing that in japan. it is the aging population problem they have. aroundvery conversation japan seems to feature wages, aging population, the structural change to address it. i pulled up this chart to address the factors. here in the blue we have the move in wages. we did see some pickup in 2016 in wages. perhaps that can came down again. it

we talked about the balance sheet with the fed, but the boj and ble will come out.have to anticipate that fundamental change? scott: look at how we are positioning our core plus fund here to have allocations to u.s. security mortgage-backed securities. even though the fed will be lightening up on purchases. we think the fed will be very incremental. look at the words the fed are " or "modest"ate growth. they're trying to get back to neutral. , youu're the fed, boj, ecb look at he wrote in modest growth to put you into declining growth. continue to hold assets and slow off on reinvestment, not risk expanding the supply of security in the marketplace at a great rate. david: how does it affect volatility? they have to reduce volatility. even if it comes off gradually, sooner or later you won't have been playing the same role. .cott: we agree central banks are aware they need a healthy credit market. if you push volatility to high or it gets too high above historical ranges, you threaten the credit market, where growth has been coming from. one of the things they have e

the figures come a day after the boj held its monetary policy.uropean union leaders excluding the u.k., gather in brussels tomorrow to finalize brexit negotiating guidelines. the eu warned the 27 remaining -- reducewill remain any cost. frexit negotiations -- brexit negotiations to continue. a little over a week until the runoff vote in the french election. the candidates have stepped up their battle. on radically different views france's place in the globalized andd is putting macron marine le pen. today has tone who create unity within a fractured france against mrs. le pen who is the face of the national front, a party we have known for decades. i unfortunately grew up with the french political landscape marked by this party of hate, the refusal of the other and a shrunken france. because yes, my friends, i am telling you this presidential election is a referendum for or against france. i call on you to choose friends, not mr. macron. his platform is rather to -- about the dissolution of france. the d's construction of france. david: global ne

there is no policy shift coming out of the ecb, the boj wa wants to stay -- easy.s shifting in terms of perception. sinche, thank you so much, joining us on wednesday as was scheduled. we had him special today with markets on the move. they did not do this at aol 30 years ago. this is way cool. you get tv live. a lot of traders are using this directly off of bloomberg, and then you can go over here to an which is kuroda chart, the last block that we just did, and you can go back and look and see case with his bloomberg on his desk, you can steal one of my charts without me knowing it. how cool is that? tv proving very valuable to bloomberg users worldwide. they like it. technical charts to back up the story at the moment your stay with us. more with steve case, "the third wave," this is bloomberg. ♪ tom: "bloomberg surveillance" worldwide. many markets closed. there is some activity here. yen, we just poke with bob sinche about that, look for that on tv . any migration in the $100 level is a huge deal for the nation. we see it in euro-yen, expresses a

the white line is the core rate the boj watches most closely good with the aligned, that includes everything. it has food, it has energy. the turquoise line takes out food and energy and you can see how it is starting to edged down, underscoring how much energy prices play into the bank of japan to get inflation high and moving higher. governor kuroda, when asked if you are worried about the yen, that is another thing, a week yen can help boost inflation, he said a stronger yen can slow things down but not stop inflation from moving higher. the timingend uas -- could be slightly delayed. if the exchange rate depreciates, the timing could be earlier than otherwise thought. trend is towards 2% in a gradual manner, reflecting the improving outcome. it is true, the yen is up 7% against the dollar this year. we are going to keep buying bonds, he made it clear. they are not getting any more stimulative. giving all they are doing, it would be tough to do that. nice,k they have a sloshing pool of liquidity and he is hoping it is going to translate into more inflation. haidi: you kind of got this cen

how soon before the ecb and other central banks like the boj -- we spoke to mr. karate yesterday -- follow suit? luca: i think for japan and europe, the output gap is much bigger. there is more time for the central banks to react. i think the ecb will not do anything until the end of this will and the bank of japan probably continue to do what they have been doing. i think this kind of monetary tightening -- we see it in the u.s., but slowly. into next year, the ecb will take part. mark: our interview with corroded giving the japanese stock market a boost yesterday. he said they would remain accommodative. just getting some headlines from france. marine le pen his giving -- is getting a statement. you know, the campaigning has ended, and marine le pen is , inking right now in paris the wake of last night's deadly terror attack -- what is being called a terrorist attack on the chantilly-- the champs elysee. we will keep an eye on what marine le pen is saying that statement. back to emerging markets. it has been a fascinating to virgins in performance between em st

on a two day meeting out of the boj. not saying too many surprises.rprises there. with sophieake your kamaruddin. sophie: i mainly focusing on the korean markets here. up eighthe kosbi points. he have he end aim voters -- hyundai motors up. let's take a look at eisuke there. leading they seek to wrap up the flash memory chip business as they see the chip business waning. -- at some at what of the laggards here today in korea. fallingas kate telecom about 1.8 percent here, following the first quarter results. sales and operating profit missed estimates. the stock was cut to neutral earlier this week. by the way, it has fallen about 6.5% since hitting the years peak in march. that is just a look at some of the results we have gone so far out of korea and japan. we have several on the line up as well. they: several stocks on move. thank you so much. let's get to the first word news now with paul allen. lg display open strongly topeoul after results estimates. at $913g profit came in million, ahead of the forecasted. cells fell shortly. bhp has cut copper

guess what, the boj's target by next year is 2%. all fairly discouraging sort of diversities of course. those are the things we are watching. when the korean market open up, australia, japan, and south yvonne: asia-pacific markets see a muted day. betty: stocks fell in the u.s., dragged back by an unexpected fall in auto sales. yvonne: south korea's main opposition candidate leads the race to replace the ousted park next month. betty: this is the second hour of "daybreak asia," coming to you live from bloomberg's headquarters. 8:00 int is just after new york. we have been talking a lot about the auto sales numbers. front and center here in the u.s. and bleeding over into asia, but one car the slideat trumped we saw in autos is tesla. i want to bring up this chart to show our viewers. it really demonstrates the bullishness behind tesla. look. the yellow line is gm, gunning looking atr gm, and that chart, you can understand why there are pretty big shorts building up against tesla. this is so new, he hasn't even made the model three c

we are also getting some lines through from barry jacob -- essentially suspending the boj buying policy. the policy isink up to the finance ministry, not the central bank. thisof japan has been on exchange buying binge since about 2012. also saying, significantly, that any sort of early exit would confuse and distort the market, and that the exit strategy will depend on the economy and how markets are doing. this take a look at news hour. >> an explosion on the st. petersburg metro has killed at least 11 people and injured dozens more. security officials say a home a device blew up on the train between two stations not far from the museum. this happened during a visit to the city by president putin. police say they found and defused a bomb at another station. described the attack as "terrible." global ratings downgraded the of south africa to junk. the prime minister has been replaced with someone with no financial or business experience. new immigration rules are making it harder for companies to take foreign workers to the u.s. using the hb one visa process. guidelines require program

this is going to put focus on the boj and what they may do when it comes to their bond line program.y have been hoping to get this target. looking ahead to the open in shanghai and hong kong. the shanghai composite and trading sentiment today in a share, will it deepen the drop we have seen over the past three days? it is hovering above the low from the last two months. the key psychological level of 3200 getting preached on tuesday and negative momentum picking up. in the mainland waiver, we are seeing eight knock on effect on the hang seng index. and the most in four months, tracking it below 24,000. rishaad: right, a resounding no again to tpp. mike pence's visit continues. the u.s. vice president is pressing allies in asia for better traded terms while reaffirming washington's military support. mike pence in tokyo stressing the need for quick results and a new economic dialogue. he told business leaders in korea that america's trading relationship with south korea is falling short. an arrest in london, and will face a court hearing for extradition to india. he surrendered his ind

david: boj and ecb keeping rates on hold. wells fargo board gets an earful from shareholders.da tangle over timber tariffs. and president trump rolls out a tax plan. >> this is the beginning stage of what is expected to be a long and brutal slog. david with all the action, we : have high profile reaction. >> you have tohi

a write-down that we took in the the boj as we discussed, a broad range of outcomes.ome of it, really bad for the company. removing that in december-january, completely reset the dials. we can now look at the capital planning. we have huge uncertainty overheads. we knew it was diluted. it was something we were willing to consider. francine: has it been more complicated? >> more complicated but look, if you need capital, unique capital. improvement. huge profits of 50% in two years. bydid not lose anything preparing for the top option. the having looked at both, straight capital raise is less diluted. we've went twice. we keep 100% of the very good cash flow and good business. mark: bloomberg francine lacqua top credit suisse's executive. joining us for some more inside insight, a bloomberg gadfly editor. explain. has already been markets on thanks, but i think that is macron's victory -- victory keeps it going for investor and 2000 and banks. all bc there is a second round to go but i think had there been a different result on sunday, i'm not sure we would have seen t

if there is any hint that perhaps they might be thinking of the boj, then all of a sudden that couldhuge, major development for markets, which had been relying on the liquidity provider by the major central banks. they are starting to taper. they are not being some form of impact on financial markets. yousef: what we have been seeing, the sigh of relief in markets has been nothing sort of incredible. it is rare that we see days like this. i put this up on the chart. bullet up on your bloomberg. volatilityhanges in on an expanded major level. you could see all those red bars there for the euro. the turkish lira, the market reading a clear sigh of relief. in terms of the volatility play, if someone wants to trade ball, what is the best strategy now? i think it will continue to subside in the near term. we have seen one of the big potential risks in europe clearly subsiding. i think we are probably going to see it edge down. we should not get too complacent . in the near-term a big we will see volatility retreat. there are also starting to come a biteriod where we see of recovery in the

it was barely a blip following the boj announcement.would only have more wiggle room if it from some before that happens. they are keeping stimulus unchanged. they are signaling a 2% target remains distant. tailing -- take a look at the equity space. japanese shares maintaining their downbeat tone. the topics easing the days declined so far. snapping a five-day rally. time we saw a rally of this sort was in december when the topics gained for six straight days. take a look at the nikkei 225. the readings have dropped there, falling almost 10%, along with the likes of mitsubishi falling the most in five months. the outlook is looking dismal as well. we do have the likes of toshiba down 3.4%. lots of earnings to digest. caroline: this is "bloomberg technology." i'm caroline hyde. now, there is a major showdown brewing in washington. cracking open the net neutrality debate. fcc commissioner -- chairman ajit pai introduced his plans for rolling back net neutrality. the net neutrality rules aim to prohibit internet service providers like com

the ecb and boj planning for the long term and questions about quantitative easing.tocks in the dollar were little changed among a flurry of policy had lands on everything from nasa to health care. betty: earnings listing tech headlines are high. it rose after hours. both flipping. yvonne: the first 100 days, president trump's list of

was cautious when discussing inflation saying his lack of momentum at next week's beat meeting, the bojexpected to keep his policy unchanged. >>> turkish president erdogan speaking to a crowd of supporters in instan bull overnight says the outcome will help turkey's economy as well as give them the tools to better fight terrorism. critics say the results were skewed and the outline come deals a blow to turkey's democratic system. turkey is, of course, one of the best performing global markets at more than 50%. as for the turkish lira, if you haven't looked at the move today, now at 1.8% move stronger. but both should be put i in perspective, the turkish lira down 28% over the last 12 months. a 2% bounce this morning, but relative to significant declines over the last year. >>> commerce secretary wilbur ross firing back at the imf. last week, the international director of the international military fund christine lagarde. last call, the warning, quote, rubbish saying those accusing the trump administration of protectionism are firing at the wrong target. and that the u.s. is the least pr

canadian prime minister justin trudeau, japan boj governor kuroda, and bill gates, who intends to bringare directly to donald trump. >> it means talking to him and giving him background he may not have had through his past work. nejra: this is bloomberg. ♪ did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's over 6 times faster than slow internet from the phone company. say hello to internet speeds up to 250 mbps. and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. ♪ >> i don't think that people who are promoting that border tax within the congress have a fully thought through the consequences that might -- >> do think that this is an area where donald trump may have overreached? >> i think, i think that the issue facing president trump is that he made a promise to do things that were good for the middle class and he was going to help people who felt they were not part of the economic success , and ki

david: boj and ecb keeping rates on hold. wells fargo board gets an earful from shareholders.he u.s. and canada tangle over timber tariffs. and president trump rolls out a tax plan. >> this is the beginning stage of what is expected to be a long and brutal slog. david with all the action, we : have high profile reaction. >> you have to think of the world as rich, fair, cheap. we are in rich territory. >> unless you do something bold, we are running into real serious problems. david: plus companies report , earnings and the leaders take us behind the numbers. >> we have been demonstrating the quality and power of this platform. >> not yet firing on all cylinders >> we're comfortable with how we came out. david it is straight ahead on : "bloomberg best." ♪ david: hello and welcome, i am david gura. this is "bloomberg best." your weekly review of the most important interviews and analysis from around the world. let's start with a day by day look at the top headlines. even before the trading week started, all eyes on the first round of the presidential election in france. ♪ franci