is the boj succeeding?e there is critics who say it is not working, they can never exit because they can never hit the inflation target, are they correct? professor ito: they are obviously succeeding. the real site is getting stronger and stronger. if you look at the unemployment rate, it is dropping, has dropped, and is still dropping. it is below 3%, and it is around at the same level as the bubble years, the happiest years of japanese economy. [laughter] professor ito: and the job opening to applicant ratio is higher than bubble years, so obviously, the labor market is the real siteso is strong and the nominal side is weak. this is the puzzle. there are several explanations. >> it is a problem we are facing here in the u.s., right? how do you think we both got here. [laughter] professor ito: one explanation is that the consumers lost confidence because of the crisis. and the u.s. global financial crisis -- japan is all the way back to 1997 with a banking crisis and we had to have 15 years of the deflatio

key goal of the boj is to raise inflation. we need to see more happening there. the real problem is the disconnect between inflation and the economic growth looking not too bad. kuroda'sroded is -- term as governor ends next april. what does that mean for government policy? >> we expect to see policy unchanged during his current term which runs through april. or is a great deal of interest as to whether he will be reappointed. many think there is a good chance of that or if there will be a new governor. at that point, we would expect to see a change in policy. anna: brett miller in tokyo for us. let us continue the conversation regarding the boj. by -- we are joined by two guests. a quick word about when we will see any commentary. it seems the boj is incredibly keen not to talk about any exit strategy. what is your expectation as to when that will come on the radar? even as we see them dialing back there bond purchases on the quiet. >> i think it is going to be quite a while. there is no drama corrode -- kuroda here in japan.

coming up, watching the boj.g. ♪ ♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin this evening with today's shooting in alexandria, virginia. theressman a steve scalise, majority whip for the house of representatives is in critical condition after a gunman opened fire at the congressional baseball practice. people have been hospitalized. president trump confirmed that the shooter, 66-year-old james hodgkinson of illinois, was shot by police. he

in april, boj at left every aspect of policy unchanged.chored the 10 jgb at the long end of 20, and continuing to buy bonds to achieve all of that. one thing that emerges from the mentum from the 2% target was not strong enough yet. let's look at the details out of these minutes. not surprisingly, the vast majority saying the risk that are the economy remains skewed to the downside and it was appropriate to pursue this path for monetary easing which they have been doing since governor kuroda took office, and most ateeing that stable rates the long end show that yield curve control is working. story comes from our bloomberg team in tokyo, where they talk to a former boj isicial who said the risk when the hawks leave in july and there won't be enough debate to keep policy on track. we see a lot of agreement on the surface, and in april, a little more disagreement below the surface. they willawks leave, be falling in line firmly behind governor kuroda. rishaad: having a look at mark carney. he faces a bit of a nightmare. three members of the

the boj kept its stimulus program on cruise control. specifics on how it plans to get out is not appropriate. the yen falls. in mixed results should creditors reach a bailout deal with greece unlocking much needed a. once again, the critical question of debt relief is.. when will that issue be resolved? the luxury of low rates. bloombergeo tells that it is dangerous when companies like his are paid to borrow. is there a bubble waiting to boot --waiting to burst? i am matt miller here in berlin. along with guy johnson in london. guy: let us talk about the equity markets. bid as you can see. the cac is getting along particularly well this morning. or broadly across europe, the 600 is up by 0.5%. at the end ofted yesterday's session. we have carried on that moment. a positive story here at the end of the week. more positive story for equities here in europe. as set prices at record highs. the ceo of the world's largest luxury company is worried and he says that a crisis is unavoidable. this is worth listening to. talks with thed ceo of lvm

the boj is not questioning its current strategy. to be a serious question about what boj is actually doing. i guess even more important is why are they doing it? one of the key things they are doing is continuing to intentionally devalue the jp why -- jpy. they have paid off a lot of public sector debt over the last two years, but it hasn't done much for the japanese worker or consumer spending. retail spending is looking terrible. haidi: tony, while we are talking about central banks be -- big week, i want to disrupt the chart on the pboc's balance sheet. we talked a lot about the great unwind when it comes to the fed boj, but in the meantime, we still have $5 trillion on china's balance sheet. there is some expectation that could actually continue to increase. -- it issible possible. given the balancing act china is ating to do to keep the cny a certain level, you could potentially see it increase. i wouldn't expect major increases, but the pboc doesn't want to be seen are perceived to against fed cny rate rises. it's possible the

the boj facing pressure to strategy. exit it could be a slow day and asia with malaysia and philippines also closed on holiday. >> quite a few markets and closed indeed. let's get to first word news with tom mackenzie in beijing. tom: thanks. new opinion poll say half of u.k. voters think theresa may should resign after her election performance. she has vowed to stay on with the dup agreeing to work with her. michael gove is back in the cabinet less than the year after being fired by theresa may after the brexit vote. boris johnston led the campaign to take the u.k. out of europe. across the whole

it really compares, you have the ecb, the fed, the boj.winding bad from these blows in the balance sheets. -- from these bloated balance sheets. the pboc in green, has been remaining stable. it is a $5 trillion anchor. the fundamental difference is it is a different base from its global peers. the pboc uses global surpluses, rather than by sucking up otherment bonds, which central banks have done through quantitative and qualitative easing. saystially, the chart china is more than a couple years away from balance sheet contraction, and till then, you will see broader growth when it comes to money supply. rishaad: let's get to the japanese story at the moment. we have been talking about th facebook, netflix, and google in the u.s. the nasdaq wet in a southerly direction. it has been hitting record highs. if you look at japan, it is interesting. i will just go into this chart. stocks, softbank, nintendo, recruit holdings, the biggest employment services holding group in japan, they have been outperforming on the 65%., on average, rising just

the boj facing pressure to strategy.xit it could be a slow day and asia with malaysia and philippines also closed on holiday. >> quite a few markets and closed indeed. let's get to first word news with tom mackenzie in beijing. tom: thanks. new opinion poll say half of u.k. voters think theresa may should resign after her election performance. she has vowed to stay on with the dup agreeing to work with her. michael gove is back in the cabinet less than the year after being fired by theresa may after the brexit vote. boris johnston led the campaign to take the u.k. out of europe. across the whole of the conservative party, i believe that is important. this is a government governing for everyone. i am pleased that people from across the party have agreed to serve in my cabinet and we will get on with the job of government. the french president seems headed for a landslide in the legislative elections as voters rally around their new leader. will take about a third of the vote, which could result in winning about 450 seats

-- and boj.ou are still in an environment where the effect of that is a huge dampening on the term premium. jonathan: can you get -- >> no. we live in a global world. we live in this demographic where the rest of the world is aging faster. , everybody in the marketplace are going to the place where you get the best risk-adjusted yield. rate is of risk free the u.s. >> we need to reconcile two more things, the dollar, what happens if we get a flat yield curve? what will happen with the dollar? in europe they will be removing accommodation in the long and, but not anything on the front-end. we used to use as the slope of the yield curve in the u.s. and make an assumption about the state of the economy. how will the fed, and will the market reacted to that as well? >> this is a really important point that the interpretation of yield curves is a textbook interpretation as pablo just talked about. you have to throw the textbook out when it is about negative interest rates and massive qe so that as you

communication for the boj as well. do not leave them out.want everyone to think they are looking to normalize someday as well. all the federal banks want to get back to normal, and the fed wants to continue raising interest rates, but none of them can get inflation up. what do they have to do to get inflation to target levels? andre we going to be living a world where 2% is not possible? steen: if you look fundamentally it comesflation rises, from demand going up. i think the ecb and the fed has been very disappointed that the support to the credit market has not helped. what it has done is increase the amount of credit being bought, but it has not increased -- it comes from the fact that the economy is confident enough to go ask for more money, and they actually get more going. that ishave seen since improving enough to create inflation. is a chart, a little bit outdated, but this is velocity of money. it tells you everything you need to know. steen: it is very difficult to increase the inflation when you have velocity of money. teen is goi

we expecting boj minutes from speaking in kuroda tokyo this afternoon.utside of china it seems pretty risk off. very much so, those oil prices are a big factor in the u.s. markets. let's pull up the boards and see how wall street ended the day. it ended lower, tech shares back and forth, giving up those gains we saw yesterday. nobody can make up their mind on where to go. nasdaq down almost 1%, dow, down 63 perp -- points. let's pull up oil prices, really weighing on the markets and these energy shares. downa look at nymex crude, on the 15% over the past month. 20%,y falling now, over into bear territory. we will see how much lower wti crude can go. now, first word news. president saysed he is glad about this month's interest rate hike and is willing to be patient over mixed economic data. however, he may be more skeptical about a more neutral rate of 3% in coming years. though inflation remains a concern, he says it is sufficient to take the slack out of the labor market. >> inflation has been sluggish in the united states. that is not all bad, by the w

same thing with the ecb and the boj.nd boj are on hold, but the fed will probably not raise rates as higher as quickly. mark: they are below 50% for the rest of the year. muchrd: i think it is very hard to play for. i think we will probably see the fed may be done for 2016 and possibly get one more in. just may as well tell you both while richard jones is died.that helmut kohl has the german chancellor who saw a reunification. this is according to a newspaper and he was the leader of the cdu before angela merkel. a very important figure in the 20th and 21st century. helmut kohl is dead. let's check in on bloomberg first word news. courtney: pre--- queen elizabeth and prince william met with volunteers who helped with the survivors of the high-rise fire. they went to a site where community groups have been gathering supplies. dozens have been killed -- hundreds of been killed -- many have been killed and dozens have been injured. i hope the death toll does not reach triple digits. bloomberg news has obtained a letter from

gave credence to the boj wanting to keep the pedal on stimulus.e: haruhiko kuroda is treading water very carefully because he cannot speak to much about this exit strategy despite the fact that you get the pressure from the fed and ecb. they have to be able to stop the ulge. this was a mixed picture. a mixed year for exports. imports beating. we will see how that goes and gets to the latest with reaction to those numbers. sophie: slightly more favorable move with the numbers we saw on friday. slightlyks ended higher. the nikkei 225 out the gate up .2%, despite the surprise swing to the deficit. less than forecast. shares in tokyo now rising for a second straight day. looking elsewhere in the region, weakness in seoul. the asx 200, swings between gains and losses at the open. a possible driver for investors of course this morning. chinese property prices for may due later in the morning. we also have something for investors. that megadeal for amazon to buy a whole foods. with amazon looking to switch that mindset around the whole paycheck by cuttin

the boj was in the news.rating communications to a knowledge thinking about how to handle a future exit from monastery stimulus -- monetary stimulus without giving a clue it is on the discussion. that is what is happening on china. china exports and imports rising. francine: thank you, mark barton there with your asset check. the european central bank will cut its inflation outbreak -- outlook because of weaker energy costs. that is according to officials. frome joined on the phone vienna, austrian economist and former ecb board member, gertrude tumpel-gugerell. winky for joining us. -- thank you for joining us. what do you worried about the most? are we discounting political risk in europe? how the ecb deals with lower inflation higher growth? or is it italian banks? gertrude: first of all, it is a pleasure. recognize the outlook in the euro area has improved. we have the best sentiment indicators of the next three years now. there is no reason for euphoria. the growth is only a little momentum and inflation

and the boj, as well.tty: we talked about this earlier, we saw after the fed decision, the dollar falling. it is putting upward pressure on currencies and countries that do not need it, including australia and japan. what is that impact likely going to be? mentioned the aussie strength and the kiwi has also some ofong, even though its recent gains when the gdp data came out -- there is a lot of concern here in australia and elsewhere in asia that currency is our two strong, it is hurting momentum. if you look in the terminal, we have a chart here. the gap between the rba's tax rate and the fed's key rate shrinking to almost nothing, the lowest since 2001. the aussie has been climbing or staying high. the rba governor is saying a stronger currency then warned it would complicate australia's interest to get going. at the same goes for japan and new zealand. betty: thank you so much, garfield reynolds, on the impact asia. let's bring in our bloomberg intelligence economic analysts. we were very much surprised

the fed has been out of it in terms of building its balance ecb havet the boj and been moving along atame pace, 60 billion a month, a total of 120, one trillion a year. money is being pumped out into the system, money that is yielding less than nothing in many cases, seeks a haven in not only bonds that are under yielding but in stocks that are overpriced. that thishat to say addition of liquidity will help to continue supporting risk asset prices, so long as the boj more importantly, the ecb, quantitative easing? bill: that has been the game plan, it worked wonderfully. not criticizing. erik: worked wonderfully for investors. bill: the global economy as well. it was pulled out of the great recession. butcriticizing the policy you have to continue come in my opinion, in order for credit spreads to be tight in order for you to remain low, stocks to have such high p/e's. the fundamental basis for it is the central bank policy that keeps creating additional credit. erik: so it continues until the qe punch bowl gets pulled away. bill: i think so. the question becomes how quickly away,nch b

a swiss central bank decision and the boj as well.ahead to break it down, let's begin with you. but sketcher thoughts on the fed. 10 year yields have rented new lows in the last couple of weeks, 2.14%. is there a message in the curve for the federal reserve? >> bond markets have been rallying. equity markets have gone up, so bond yields falling, equities going up, one of the two is wrong, and the fed as well. the fed would like to start raising rates. every time they start to do it, there is an external issues stopping them from doing it. there is a 95% chance they will go 25 basis points next week. i think it is one and done for the rest of the year. jonathan: a lot of people are saying the treasury's market is one of the most mispriced markets on the planet. is there anything to like about treasuries right now? >> fixed income is the most mied rice because of the intervention of the central banks printing money and buying debt. 10 year treasuries, you should trade the range. i think i would be longer 10 year treasuries than shorter

ecb, boj, australia is cutting rates.hey are really struggling with growth and traction and we are all must years and to the financial crisis. jonathan: ingenious -- if you want inflation back towards target, make a mess. that is how we have to do it? >> we will see how the surveys are responsible. it may be -- in might settle down a little bit actually from what has been a top couple of month's. a tough first quarter. who knows? i'm always on the positive side. >> we have a lot to talk about. a big week. and janis with investors. coming up, taking over. the questions for the 181 billion dollar cocoa bonds market. that conversation is ahead. ♪ ♪ jonathan: from the city of london, this is bloomberg. contingent convertible converting to equity. the first work at. european regulators with the popular in spain closed a failing. virginia debt was failed out and outdoor is on the bank to save taxpayers from bearing cost. a textbook success for the regulator. yes, captured by the chart. what about the investor? scott here from b

that is the cold core of the boj at the moment. so, we need to see more happening there.l problem is there is a disconnect happening and what we are seeing is economic growth looking not too bad. ♪ >> so, this has been a big week for monetary policy, and it has been a critical we can global politics as well. later, we will recap the maneuvers for theresa may after the u.k. election and the bloomberg scoop explores the scope of election hacking. plus, emily chang's exclusive interview with tim cook and brian moynihan on diversity in the workplace. up next executives making the , wrong kind of headlines. the ge era ends and more tumult at the top four uber. >> we don't understand how the company is going to run when they have to invest on autonomous cars. who makes that decision? ramy: this is bloomberg. ♪ ♪ ramy: this is "bloomberg best." i'm ramy inocencio. let's continue our global tour of the week's top business stories with an unexpected executive shakeup at ge. >> the change out of the top of general electric, they said tim -- announcing health care head john slattery

just lasthat the boj week said they upgraded their assessment of private spending.ood thing. one thing we will want to see is this robust performance by exports feeding into higher production, higher capacity utilization rates at factories, which leads to even more hiring, more tightness in the labor market, which could in turn lead to more upward pressure on wages, which would be a big part of that virtuous cycle that mr. kuroda has been talking about for some time. haidi: we are still waiting. brian, thank you so much. let's get e latest on the market as we get the trading week started. lot to wat o for in terms of downside risks. for now we are seeing a pretty good start to the trading week. >> looks like investors are able to look through the potential downside risk. plenty of green across the screen. in tokyo we have japanese shares closing out the morning session and adding to friday's gains as well. it is helping to lift other benchmarks across the region. the hang seng is that for the biggest since may 9, rebounding from its worst week in three months. we al

. >> the boj having a tough time boosting wages. let's bring in our economy reporter from tokyo. japanese population because we are seeing some of the best job prospects in a generation, yet they are not taking a lot of risk and switching jobs. >> that's right. japanese in general are often more risk-averse than other countries, but the young generation especially has grown up during really lackluster growth and experiencing inflation, so there is this heightened sense of caution. there is a duality in the japanese labor market where you have regular workers who get good hey and good benefits and then you have workers who don't get the same benefits. if you change jobs, there is a falling from the regular category into the non-regular category, and there is a real sense of caution around that. forhat does it mean governor kuroda and the boj and the macro implications on this route -- this. the biggest macro implications is that it makes it harder for the boj to get to this 2% inflation target and escape deflation with wage inflation they want. government has exhorted companies to

coming up, other central boe, boj.he what will these decisions mean for the fx markets and the fed. this is bloomberg. ♪ >> louisiana congressman steve hospitalized in critical condition following surgery after he was shot along inh several others arlington, virginia this morning. forlawmakers were preparing a charity baseball game against congressional democrats scheduled for tomorrow. four others transferred to the hospital. a second congressman sustained minor injuries and was also transported by a medic unit. that congressman was not identified. as aunman was identified 66-year-old james hodgkinson. the white house to congress, reaction was swift. >> everyone who serves in our nation's capital is here because above all they love our country. >> again, it is in the family. it is an injury in the family. >> we are united in our shock, anguish, an attack on one of us is an attack on all of us. >> meantime, bernie sanders says he was informed that the shooter apparently volunteered on his presidential campaign. sanders

the boj will maintain a negative interest rate and keep buying trillions of yen of bonds.urs a day, powered by more than 2600 journalists and analysts in more than 120 countries. riggs.ylor this is bloomberg. tom: thank you so much. one more data check, quieter data after the fed, the beer we, the bank of japan -- the boe, the bank of japan here at little bit of curve steepening, euro weaker, dollar stronger. we will touch on oil at this hour, 44.72. i do not think so much has been made of weaker oil prices through the week francine:. i think you are right and this is the big inflation story that we will get on to when it comes to central banks. global stocks rising, there is not much going on in the markets . shares in japan advancing on the back of the yen weakening. the yen briefly extended declines after the governor said it was too soon to discuss an exit plan for stimulus. we have a snapshot of what the biggest central banks are doing. tom: a shout out to vince gault of bloomberg businessweek. on the chart of the week, this is cell phone bill deflation in america. fo

boj starting off its two-day meeting today. uncertainty, did donald trump obstructed justice? question at the moment being faced. looking forward to data too. i am rishaad salamat from bloomberg's asia headquarters. politics playthat out when it came to the fx situation, the strength of the yen dampening the sentiment when it came to japanese equities. in australia, jobs numbers, and notoriously volatile data point. let's get over to paul allen. the unemployment rate has fallen significantly to five point 5% come up 2000 jobs created. australian dollar jumped impressively off the back of this. looking for 10,000. we got 42,000. another wild read. it never fails to disappoint, does it? this is where the picture does show a trend, full-time

pressure because of the combination of negative interest rates and ongoing aggressive qe between the bojnd the fed, which is going to be less and start unwind it. the effect of that is a huge dampening on that term premium. jonathan: can you get a treasury market that decouples from the global bond market? >> there's two things happening. we live in a global world. we also live in a demographic dynamic where the rest of the world is aging faster. the poll in terms of assets -- listen the markets ourselves, you will go to the place where you will get the best risk-adjusted yield. the best risk-adjusted yield sits in the u.s.. >> the thing we need to reconcile fear are two things to drop in the mix. the dollar -- what happens if we get a flat yield curve? what's going to happen with the dollar? in europe, they are going to be removing a combination and not necessarily doing anything on the front end. we are used to looking at the slip of the yield curve in the u.s. and making an assumption about the state of the economy. the yield curve #of recessions. how will the fed and the market react

part of the reason is we think boj is going to stay on a more accommodative stance.o what we are seeing with the fed. the boj is not going to change its policy on short-term rates. yvonne: sort of status quo in japan. what has not been status quo is the relationship between u.s. and japan, between trump and abe. we have top so much about trade ties and tensions. how do you think that in with the closer relationship we are seeing between u.s. and japan and how that might translate into economic benefit? >> president trump's relationships with foreign leaders are about personality and pragmatism. that is what drives the president's foreign-policy. to a degree, the close relationship he seems to have with abe may mean the two countries are going to look for further ways to cooperate on these major economic issues. when the u.s. and japan have talked about trade, negotiations have broken down for the same sets of issues. the question is, is this personality match that trump and abe have going to overcome those? betty: are you surprised by this personality match? >> not s

where thinking about the fed and the boj coming up, central banks front and center.hey do not necessarily have the same kind of force they used to have a couple years ago but we are still thing attention. this is what we found in the markets this morning. i would argue no clear sense of direction and delivered by this at the moment. looks like we're going to open fairly flat in europe. let's take a look at the gmm and focus on what is happening there and give us with the heads up his. this is the picture at the moment. the aussie dollar this morning. the british pound is neutral. agree markets were generally negative in the american session . australia down 1.21. the paying attention to minus. that could be an interesting story we need to focus on. let's get a bloomberg first word news update with juliette saly. juliette: donald trump and his wife melania have visited house majority whip steve kerr scully see in hospital after he and four others were you -- were wounded. ranked publican. he was shot and the hip. he remains in critical condition after the attack

we will talk about oil, the boj making some interesting comments this hour.at shortly. this is bloomberg. ♪ anna: welcome back. we had some downward numbers. were getting comments from the deputy governor of the boj saying oil prices are on a rising trend. you see the drop in oil prices, it won't affect cpi in the longer term, saying there's no need to change the price outlook doesn't oil. we will talk about oil very shortly. let's get the bloomberg business flash with juliette saly. juliette: the foxconn chairman has vowed to press on with the bid for toshiba's semiconductor business. the deal could cost $27 billion and ushered them into the memory trip business. he will decide by next month on which u.s. state will be the location for a $7 billion this lay making plant. tokyo ins plummeted in the first trading on the stock this week. there were reports it was planning to file for bankruptcy protection as soon as this week. it would pave the way for its takata,the airbag maker who said no decision had been made on the bankruptcy filing. wants ordersing and e

will get runaway inflation wild the ecb and boj need to bump in liquidity drastically. if the u.s. is getting inflation, there are some inflationary pressures which mean they are more likely to taper there programs which make it hard for the fed to reduce the balance sheet. fed at what point does the a attention to will happen later on the summer which is a big debate over the debt ceiling, there is a debate coming up on the budget, on health care. the debt ceiling is front and center in all this. that has not featured in the commentary surrounding the decision-making process but at some point if the debt ceiling becomes an issue, it will have to. need to start keeping and i on it. it has not been part of the conversation but that is because they haven't -- have a bigger problem. they are not generating enough inflation or inflationary pressures. while the debt ceiling is a concern it is a secondary issue. since the primary issue is something they have not solved yet they do not need to get too distracted on that secondary issue. had uphat chart that you on the balance sheet, it is

pressure because of the combination of negative interest rates and ongoing, aggressive qe in the ecb and bojand the fed, which is going to be less and start to on wind it. are still in an environment where the effect of that is a huge dampening on the term premium. jonathan: can you get -- a treasury market that decouples from a global market? >> no. we live in a global world. we live in this demographic where the rest of the world is aging faster. the markets themselves everybody , in the marketplace are going to the place where you get the best risk-adjusted yield. in terms of risk free rate is the u.s. there is no way we can get away from this. >> we need to reconcile two more things, the dollar, what happens if we get a flat yield curve? if the fed continues to tighten, what will happen with the dollar? in europe they will be removing , accommodation in the long and, but not anything on the front-end. the second is that we used to use as the slope of the yield curve in the u.s. and make an assumption about the state of the economy. flat, to invert the yield curve are a sign of recession.

we heard from the boj, saying they may recalibrate -- when it comes to acid bond purchases. have we changed at all with a central banks are going or is the fed in the lead? geoffrey: the fed is in the lead. what is the scope for marginal changes beyond where markets are pricing right now? that is what will move things. from the fed's point of use, are we going to see more hikes? by inflation, that is in it just to the upside. if you look at europe, that is why you saw the reaction after the inflation forecast were reported lower. expectations were on a marginal basis, the ecb and the boj were able to move a bit more aggressively beyond what markets are pricing. mr. draghi is pushing back against that as hard as he can. yvonne: actually, he certainly wanted to make it clear that he made knowledge the fact that the euro area economy has picked up. the risk is now neutral's for the first time since he became president of the ecb. kathleen: he made it clear number one that inflation is not where it needs to need. ir inflation forecast. in his press conference he said, he does no

bankers, and the spotlight today was on the central -- city of central of thel, where the heads boe, bojthe bank of canada all made comments. >> these conditions have improved and funds have experienced liquefied profits. --ever, from the increasing forecasts about increasing investment spending. >> stimulus is likely to become necessary if that trade-off continues to lesson. you can see the chart and plot your review on where it is headed. as it lessons, the policy decision becomes more conventional. ask monetary policy should not be overburdened by other tasks. and we cannot underestimate the importance of innovation of productivity and growth. important in informing our monetary policy. scarlet: joining us now is the -- strategist for bloomberg. it would seem as though central banks are all moving in the same direction following the fed's lead to tighten monetary policy. really? yesterday, draghi made some comments that the markets took as hawkish. they misinterpret it -- we misinterpreted them and they were balance. we saw a drop in the euro. essentially, what happened is the market

not the boj, but the bank of england. mark carney saying it was not yet time for hiking rates.esler joins us now with more. get to the bottom of what you think carney was trying to say to the market. mark carney is taking advantage of what a lot of other global central banks we have heard are turning toward tightening and taking advantage of this global upswing we are seeing in britain as well as many other places. we are seeing a strengthening and the data, giving optionality. his colleagues at the bank of england are talking about potentially tightening. it is interesting to hear them say that some removal of monetary stimulus is likely to be necessary if the data continues to improve. he did not give us strong as indication as he did in previous summers, like the summer of 2014. he said we may need to tie consumer -- sooner than the markets expect. strong anas indication. but still, taking part in this over the past few weeks. betty: we heard from jim bullard at the st. louis fed, look, we might see the balance sheet reduction happening sometime in the fall, september. what

governory the boj and kuroda remain accommodative when it comes to qe.n the chorus when you see. plenty more to come. this is bloomberg. ♪ betty: this is "daybreak asia," i am betty liu in new york. yvonne: i am yvonne man in hong kong. alibaba said to be close to buying zte's software on to strengthen its position in the cloud. they have been speaking to zte text for months. alibaba is investing heavily in the cloud to compete with amazon and microsoft. record $1.2 billion fine in the u.s. betty: amazon's position as the goto place for online merchants is increasingly threatened by walmart. third-party sellers account for one third of product sold on amazon. complaining, they are starting to move some of their business elsewhere. walmart is benefiting the most after buying startup jet.com last year. yvonne: plenty more to come as we count down to trading in sydney and seoul. we are seeing positivity in the region after we saw a bounce mac and -- bounceback and reversal on wall street. betty: central-bank watch, it seems the past couple days. we will be

big week for global central banks, the fed, boe, boj releasing decisions, the key things to watch.loff. julie hyman is here to tell us more. julie: it has abated to some extent. off the lows, but down from the highs. the nasdaq was

boj is mr. kuroda, the governor. this is bloomberg. ♪ ♪ live from new york and london.mark: i am mark barton. this is bloomberg markets. a programming note on bloomberg television, that david .ubenstein show tonight, the cofounder and chairman emeritus. >> when you founded the company around 1962, you knew nothing about shoe design. you did not know a lot about management and you did not have money. did you imagine when you first started this company in the early 1960's, that it could be what it became? >> when i get that question, i say, we are exactly on plan. [laughter] with you, i cannot be a smartass. >> you mean, that wasn't an original question? mark: you can see that interview tonight on the david rubenstein show tonight at 9:00 p.m. eastern. coming up on the european close, thoughts to talk about. -- lots to talk about. have a look at what is happening to european equities. little change for the stoxx 600. is lower, falling for the fifth day in seven. check out the currency board. lots happening in the currency markets. the euro with soaring. the euro is down a

consumer prices higher for a fifth straight month in may, but the slow rise means inflation far from the bojtarget. consumer prices excluding fresh , the jobless rate rose unexpectedly to 3.1%, industrial output fell 3.3%, a worse slowdown than expected. president trump then president putin are set to meet as heads of state for the first time at the g-20 next week in hamburg, coming as bilateral relations are at their lowest in decades. it includes russian intervention in ukraine, american sanctions, and the kremlin's alleged meddling in last year's elections. the white house declined to say if those subjects would be addressed. aboutkorea has formerly two kill the former south korean leader, saying she would face summary execution should an attack be attempted on kim jong-un. she is accused of planning to overthrow kim and his regime. it was added that the plan was scrapped because she was impeached last year. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: still ahead, india's game ,hanger on the eve of the

mark: the bank of england, the boj, this was -- the swiss national bank all also holding a day.ing toet's look at technology. let me show you the stock 600 -- the stoxx 600 tech sector movement. they saw the biggest drop on monday since june 27 of last year. that was just after the brexit referendum. they finished the previous write a at -- previous friday at the highest point in years. let's take a look at u.k. inflation today as it resumes its upward march. it is accelerating to the fastest pace in four years. for -- seen an increase andease demand for laptops computers. you can see it at about 2.9% which is the highest since june 2013. core inflation excludes food and energy, and a quick and in may as well. it is the highest since november 2012. the price pickup meeting -- meaning additional emphasis on households. let's finish up with a sterling. this is the final chart i will show you. it is a three-day chart which signifies a steadying sterling. maye minister theresa apologized yesterday to her own .'s at a private meeting. she took full response ability or the the lester -- for

big week for global central banks, the fed, boe, boj releasing decisions, the key things to watch. first, the tech selloff. julie hyman is here to tell us more. julie: it has abated to some extent. off the lows, but down from the highs. thanasdaq was down by more 1%, so that has come up a little bit, but the selloff continues as investors question the violations of tech stocks, and it is not that broad. a lot lot of it is concentrated in technology. are still a lot of movers that have not recovered. to neutralowngraded today, analysts saying the prospects for the next product cycle are priced into apple. lower,ft trading activision blizzard taking a hit today, and netflix down by nearly 4%. a lot of people are trying to figure out what was the trigger. there was a goldman sachs called it flagged tech stocks. something else, outflows from the tech etf's. take a look at the bloomberg. , at the end of may, the biggest outflows from that etf since january 2016 was surpassed by the outflows last week we saw. rationsop we have value of the index versus the s&p itself. they have now come

japan's nikkei index coming back online with no change from the boj.bove the 20,000 point level, up 0.9%. hell done by the weakness we have been seeing the japanese yen, yesterday posting its biggest slide against the u.s. dollar by january, down 1.2%. down 0.3% as we await comments from governor kuroda. a rebound in a lot of these commodities-based markets. up one third of 1%. we still have crude holding at the seven-month low. certainly more coming back from investors. in terms of the bond market, you are seeing bonds sold off today. strong movement coming through in the yield market. up by 4.6to their basis points. let's see what is moving in terms of basis points. rebounds coming through from tech stops -- stocks. former --top for performer in the region. that is the state of play across asian markets this session. it is friday here in hong kong. ♪ this is "bloomberg technology," i am emily chang. the tech selloff, u.s. stocks retreated as large-cap names in tech continued their recent slide, weighing on the overall market. joining me from new york

we don't have the ecb hiking rates, but they are not cutting anymore and the boj is talking about recalibratingxit strategy, medication policy. if you look behind me, you can see the growth of the central bank balance sheet. over the past five or six years has been in our mislead important for the market in terms of providing abundant liquidity. isn't that a headwind going forward? guest: if you look at the central bank balance sheet, they will have to deleverage. the first thing to deleverage will be the fed. it's mainly treasuries which will be maturing toward the second half of this year and the last quarter. the amounts are very small comparatively. 2018ig events will be in and it will be in the later half of 2018. the markets will have to look at how diligent will take place. will it be smooth tapering off and letting the market absorb it? the main question will become a where will the savings come from? remember that we absorbed that liquidity into the bank balance sheet. if we do that, some of the has to be buying. it will mainly be covered by asian savings in china. the question is, wil

the fed decision is coming up in less than five and but we also have the boe tomorrow and the boj tomorrowy. are they all moving in the same direction? it's fair to say that things are getting for the global economy. the u.s. economy is doing ok in the european economies and better than expected. broadly speaking, the japanese economy has been doing better so the answer is the global economy is doing ok. guess is there is very little coordination among central banks. it does not matter too much for the fed what's going on around the world other than if it has an impact on the dollar and given that the dollar is moving sideways, we don't see that as a major affect on the decision of the fed today. the boe meeting is on thursday and we got some disappointing weight data out of the u.k.. tom: we got real inflation out of the u.k. scarlet: what does that mean for mark carney? >> the key issue is that there is quite a divergence on the inflation front in the u.s. including the information we got today. not showing much signs of inflation. they's data dependent, should say the inflation data is

mark: we have had a big week for central banks, the fed, boe, boj.hat is the big takeaway if we can take away one thing? the boe was a bit more hawkish than we thought, probably the fed too. the big takeaways on a global's test global space. -- global space? dominic: in the u.k., inflation is falling in commodities and in the u.s. for a very specific reason, exaggerated and the communication sector but nevertheless it is still falling. the central banks have been revising lower than inflation forecast with the exception of the bank of england. that should be a warning sign to people. why is inflation falling? it is very simple, inflation went up but credit growth did not expand sufficiently to accommodate it which means there has to be a down cycle in inflation. it restored some balance as long as real growth is not slow down as well. it is always a concern if you see inflation weakening that real growth will be topping out. then the central banks that are "very cautious" are tightening too much. fedh 2008 was when the other first emergency meeting f

. >> the boj did change one thing. that was its conception of consumption.ow important was that reassessment on household consumption? >> >> the comments are very encouraging. what we are seeing in japan is interesting and we are seeing other countries in the moment, the economy is doing well. we have had five quarters of growth. on our way to a sixth quarter. but we had this persistent problem with inflation. so, we need to see more happening there. there is a disconnect happening and what we are seeing is economic growth looking not too bad. executives making the wrong kind of headlines. the ge era ends and more tumult at the top four uber. >> we don't understand how the company is going to run when they have to invest on autonomous cars. ramy: this is bloomberg. ♪ ♪ ramy: this is "bloomberg best." i'm ramy inocencio. let's continue our global tour of the top business stories with an unexpected executive shakeup at ge. >> the change out of the top of general electric, they said tim finery will be taking over. explain the timing of this decision. >> the tim

. >> the boj did change one thing. that was its conception of consumption.a of other unchanged policy, how important was that reassessment on household consumption? >> the comments on household consumption are very encouraging. what we are seeing in japan is interesting and we are seeing in other countries in the moment, the economy is doing well. we have had five quarters of growth. we are on our way to a sixth quarter. but we had this persistent problem with inflation. that is the core goal of the bha at the moment to raise inflation. so, we need to see more happening there. the real problem is this disconnect in some places and what we see is economic growth looking not too bad. ♪ >> so, this has been a big week for monetary policy, and it has been a critical week in global politics as well. ramy: later, we will recap the maneuvers for theresa may after the u.k. election and the bloomberg scoop explores the scope of russian hacking. plus, emily chang's exclusive interview with apple ceo tim coo. we talk about diversity in the workplace. up, executives mak

its balance sheet topped 500 trillion yen, tripling since the boj started its aggressive stimulus backn 2013. roughly the same size of the balance sheet of the fed now. either way, decent moves in asian markets. japan is a heavy consumer of s of fossil fuels. for the week as a whole, we're flat coming to this, german dax up a little, france is down a little. but physicifinishing on a posit note. some of those german automakers doing well on the back of the paris climate accord. also auto sales numbers yesterday. we don't want to overplay the paris influence, but volkswagen, daimler up about 1.2%. >> nikkei above 20,000. broader market picture, ten-year treasury note yield ahead of the jobs report, 2.21. it take ace lot to move treasuries higher. even that better adp report, 253,000 added, didn't get much of a move in treasuries. as for the u.s. dollar, it did have a boost yesterday on the back of that better news. again like treasuries, it's taking a lot. dollar firmer against the yen, 1.1155. it is weaker against the euro at 1.122. the pound 1.2853. gold prices on the back of a mixed

the central bank there, the boj leaving interest rates unchanged, pledging to keep asset purchases around current target of 80 trillion yen. not talking about an exit any time soon, unlike the fed which is why you've seen in the last 24 hours a strong dollar and a weak japanese yen. the exporters in japan loving that we saw a half percent move higher hong kong up about a quarter of a percent. shanghai up 0.3% eurozone finance ministers agreeing to another greek bailout. the greek index hitting the highest level in two years on that news. as for the broader market action, msi world index had a tough day yesterday, but things are coming back. in the uk up about 0.75% that's a bright spot >>> looking at the broader markets, oil remains very much on the defensive, trying to hold near the bottom end of what's been arranged in the mid 40s to the mid 50s. still looks like it will bounce today. about 0.2% gain. not quite to $45 a lot of talk about supply and how the north american lower may be under water so far hanging in there. looking at the ten-year note, a similar story in terms of the yield