the boj has plenty of options. the 10 year yield around zero, and they have a tolerance of .1 and -.1. that could expand their tolerance and allow the yield to rise, which would ease pressure on interest rates and help. when the target the 10 year yield, they could change it to five years and allow the 10 year to come up. other things to do, tweaking the etf purchasing policy or tweaking the way they buy jgb at the moment. in a stealthy way they have been doing that, buying less. happening,for that bloomberg analysis seems to say now is not the right time. waiting for more to happen in the fall or later in the year. it is always possible. it could happen tomorrow, but the consensus is it will be status quo at the moment. enough. will know soon thank you. morning staff, let's look ahead to what is on tap -- more earnings now, let's look ahead to what is on tap. let's look at caterpillar, a bellwether. they did get hurt on the growing tensions. warit is a proxy on trade concerns. let's go right into the charts. the c

believes 0.1%boj will remain unchanged. week ago, the 10 year jgb was trading just over zero. new reports have come out that something is being discussed. why does the boj have to do this now? what is driving this? to make this small but significant week? -- tweak? this in they are doing order to put a squeeze on the banks especially the regional banks. all additions also pay attention to this issue. this is closer to the reversal rate from november of last year. -- timing of the change unfortunately, shortly after that, the boj had to give up the monetization work. i think now is the time to change the policy. cap lane: ultimately you think they will say the range -- kathleen: ultimately you think they will say the range is ok. you believe they should extend it to 0.2, 20 basis points. masacki: either 20-25 basis points. the boj says in order to convince the market that the change is just a one-off. the 20 basis points. do their change in operation at the tea-25 basis points and then the market will be convinced that this

it is important because the boj meets next week. big question in the markets, will it week or announce some sort of intention to tweak, analyze its monetary policy? getting some data from the french economy as well. gdp just cost -- crossing the terminal. the economy grew by 0.2%. the economists were forecasting 0.3%. that is narrowly below forecasts. second quarter on an annual basis, 1.7. the forecast was for 1.9. more detail later. let's check on the markets. good morning annmarie hordern. >> good to see you here bright and early. a mixed picture in asia. china down. you have to remember, the regional share gauge still headed to cap the strongest week we have seen since early june. it is really all about japan today. equities of 0.3%. climbing for a fourth day. we are looking to end the week higher. learnedin this hour, we the bank offered to buy the 10 year notes for a second purchase operation this week at the fixed rate. i want to look at what's happening with the japanese bonds. speculation intensifying they may tweak policy

the boj will include some of the wording, the boj governor mitigate theaff to effects of the prolongedangle is to still contribute. a prefer a steeper yield curve to stay afloat, and to anchor yen and equities. >> a couple more bond markets. ifre's a lot of talk about, they really say something, it will hit the bond markets so hard, etc. do you think it is going to be such a big event, a negative event, for the jgb market if something is acknowledged at the meeting? >> i don't think it will be such a big event. in the second event, there might be something in global bonds, but the jgb itself is ready much -- the stock impact factor is very big. points,ically, 15 basis i think the yield curve will go steeper. kuroda, the one thing that is important is the communication he wants to have with the market. everything is down to communication. kuroda could do het we saw in the summer, could move around current levels. >> what isn't priced in to global bond markets right now? where can people make money? itin terms of global bond, will have a spillover impact in terms of the global bond marke

next week's boj meeting will be a live one.gest ipo in four and a half years, here is sophie with a look at the sophie: on the china fund, more -- look at the open. front, we the china are seeing gains in the hang seng of 1%. you have the offshore yuan resuming after paring its earlier gain. overall, what to know for chinese stocks, chinese equities still looking attractive given the report of yuan weakness. morning, note this -- ng to makers falling by the likes of chongqing. biotech shares sold by the daily limit every day. last week, in a statement, it apologized and has halted making the vat -- the rabies vaccine. saw shares in hong kong jumping this morning on rep boards that the u.s. is opening to lifting sanctions on the company. we saw the stock rising to its highest level. rishaad: thank you for that. returnk-adjusted basically disappeared. investors will have to dearest their portfolios. olivia, good to see you. what is the rationale of the risking -- of derisking? right now, the situation in the u.s. market and the y

as we expected some kind of big change from the boj that did not happen.he other currency pair you have to watch is the lira, continuing to just beat against some record lows. the turkish central bank says it is going to take them three years to get to their inflation target of 5%. a little bit of selling coming into the short end but the 210 spread is two/10 spreadthe is flattening -- 2/10 spread is flattening. emma: president trump is taking aim at fellow republicans today. the koch brothers in real -- the koch brothers a joke in real republican circles. -- to north dakota's credit senator. north korea is reportedly building new intercontinental ballistic missiles just weeks after the summit with president trump. that is according to the washington post which cites u.s. spy agencies. in turkey, the central bank is disappointing investors looking for signs that monetary policy would tighten. bank has nowentral promised to waive foreign costs when needed. global news, 24 hours a day, on air and at tick toc on twitter, powered by over 2700 journalists and a

calling a bluff on the boj. seeing korean stocks fluctuate as there is a drop in energy and discretionary's. we are also seeing the global bond selloff with aussie and dropping. and japanese bonds opened weaker i had of a 40 year debt auction and that is expected to drop strong demand. let us check in on currencies. the offshore yuan is extending losses moving towards 683 and weakening toward a one year low. i want to check in on some movers in korea. on because be, we have heavyweight samsung leading the drop on the benchmark. and highlighting some of the earnings. 10% after sales missed estimates. this has -- a gas pipe explosion in june cause troubles. alsoe have shipbuilders falling this morning after second-quarter operating losses came in wider than forecasted. let us check in on the leaderboard. rising.hold expected to have weighed on margin growth. the company is likely to ramp up advertising for its cosmetic as morethe second half chinese shoppers are due to visit korea. china says it has no desire to b

this chart was up before the boj didn't move. where the yield is now, definitely moving higher, the 10 year treasury note in the u.s. also a bit higher. we will see if this catches fire as it did a couple of days ago. the question about a policy tweak is very interesting. in fact, what with the tweak be? it would be possibly saying something along the lines of banks need to have a little bit curve, a steeper yield there are some technical reasons for the boj to let the yield the 10 year jgb rise a bit above zero. if the governor makes his move, he will have to make it clear to everybody that this is not a change in monetary stimulus. our bloomberg economics team figures they need to have a discussion about this and not make an announcement until october, but a big part of this that is so important is that a lot of japanese money could come back home. they could buy more bonds if yields rise. there is a lot going on now. the meeting that could been kind of sleepy now looks red hot. rishaad: the u.s. gdp report , could shower today

learnedwhat have we about boj?> clearly, the bank have been very active in the market, trying to limit some of the speculation regarding policy tweaking ahead of tomorrow's meeting. you could argue they are almost testing the water to see how the market will react. the fact we have not seen a substantial reaction in dollar-yen could suggest the market is reasonably sanguine. we will not see a change this week. it will be later in the year, possibly after the leadership elections. saying howve been the market will react to any policy change. francine: do you agree? >> that is not our overview either. view either that you will get a change this week. they have been stepping away from some of the aggressive things they have done, not just because the crisis is several years away. also the focus on the negative aspects, the side effects of what they are doing is increasingly in focus. we know what some of those things are, the disruptions in financial markets, keeping zombie companies going. i think it is interesting t

the boj will revise down their inflation forecast. if you think about why they are doing the tweaks, the key is communication as to how the people -- boj communicates to the public as to why are they making this tweak? why are they raising the 10 year to benefitabove 0% the banks at the expense of the real economy because by moving yield higher, it means real yields will be increasing. it has to communicate more clearly in that you don't want the yen strengthening because that will lead to a weaker inflation number and that could derail all the positive impact of the controls the boj is doing. i think the boj will remain accommodative and vicki is, how they communicate the story. in terms of the ecb, they have made it quite clear they are only going to hike in the second half of next year. in terms of what is going to push the term premium higher in move,s., we expect some we still see that pretty anchored. we look at the growth, where there is still some concern from trade. please stick around with us. jpmorgan's jasslyn yeo staying

boj with itsthe rates rising.ary: let's kick it off in japan can china mainland down about .4% in the hang seng down a most .8%. u.s. and u.k. equity futures pointing to a lower start when trading begins in london and new york. low.gust or summer we have five central banks reporting. the bank of japan begin their two-day policy meeting today. conductings they are a fixed rate operation for the third time this month. the goal for the bank of japan is to extend the increase in yields. let's look at what the yields have been doing. the highest they have climbed in more than a year your this is speculation they will tweak or fine-tune the discussed changes to their ultra-loose monetary policy. it is a big week in terms of earnings. where barclays, bp, and caterpillar will report before the u.s. opening bell. tomorrow, apple. negative is saying market sentiment has led to a meaningful gap. here's where you can see it, between the msci in white and earnings forecast in the blue. blackrock is saying this presents a money

tomorrow, it is the fed with the boj next week. will apple earnings be enough to keep tech investors afloat? this is bloomberg. ♪ nejra: getting monetary policy back to normal. nejra: 6:18 a.m. in london. 1:18 p.m. in singapore. we have weakens in the tech stocks. a big drag on the asia benchmark. japanese stocks underperformed somewhat after the doj decision. let's go to singapore were juliette saly has more. : credit suisse has posted second-quarter revenue that be the highest analyst net revenue came at 5.6 billion swiss francs. we will bring you the interview at 6:45 a.m. u.k. time. bill winters is getting closer to meeting his targets for the bank. estimates-based beat from the first pretext profits at $3.25 billion. in return climbed to 6.7% the bank as confident of reaching at 8% targets in the medium-term. cfo joins us for the exclusive interview at 9:30 a.m. u.k. time. the slowdown is starting to take a toll on samsung electronics. the south korean company's net income fell short of analyst estimates as the sluggish margin

that is basically how the boj started this bazooka policy.vious guy did not do it large enough, and if we do it massively this time, something has to happen. five years later, the inflation very.s still low, little is happening that is because we in japan have experienced the lack of borrowers for the last 25 years. , when theasons, one bubble burst, all of these ,eople who leveraged themselves some of them realized that asset prices were down, liabilities were still up there. if you balance sheet is up, you cannot borrow, you should not borrow, you should repair your balance sheet. everybody started paying down debt. that is how i came up with the policy of balance sheet repair. years, everyone has been repairing their balance sheets, nobody has been borrowing money. kathleen: now you bring up this powerful concept, a third stage of industrialization, where the reason people do not invest in their economy, is because it can get a better return overseas. destinations is right next door, china. richard: all these countries are problems,se econ

haidi: i want to end with the last word on the boj.t speculation has run rampant if they may or may not. do you think they will stray much from the monetary policy they have found themselves in? karl: i don't. they are under pressure mostly from banks who need yield, but i don't think they have any intention of moving away from essentially a long run zero policy. 10 basis points, even 20, something that will allow banks to make profit, macroeconomics, it is no different from the very long-term zero policy they have had. if anything they will counterbalance, doing more stuff with etf. i don't think it will change. it will have no room to change. inflation is well below what it should be and there is no expectation it will go up. i think we will see the boj continue with the policy as far as we can see. haidi: appreciate your thoughts with us. senior fellow who is also a bloomberg columnist. users can interact with the charts shown using gtv . you can browse the charts featured on tv and catch up with key analysis and save those char

guy: after all that buildup, the boj fails to deliver. anything more than a few tweaks to monetary policy. the press conference -- conference just beginning. we will get you the latest headlines as the press conference develops area tech tanks again. morgan stanley says the selling is just beginning and the market is heading for much eager correction. credit suisse shines, this was bank reported best pretax profit in three years. the ceo tells bloomberg that he is very happy with levels of growth. >> the core of our performance is driven by wealth measurement which is much more stable and much more predictable and growing very nicely and we can absorb the [indiscernible] of global markets. three more great interviews coming up for you on bloomberg television. we will speak to bps ceo bob dudley about his earnings. after it :00 a.m. u.k. time, we have an exclusive interview with the cfo of sanofi. they put out earnings after 9:30 a.m. we have another exclusive interview with the financial officer of standard chartered. stay tuned for those

is there credence to the boj tweaking policy or putting it out there, or has the boj put that to bed?> we are not going to see policy action. in terms of the narrative, i do not think it will shift any time soon. the boj normalizing policy is a .low burn theme despite the moves we saw isrnight, i don't think it going to last longer than this short episode. japanese monetary policy is on hold for a long time, more so than what you see in europe. the ecb has made a pledge to keep rates on hold until next summer. boj will be on hold for longer than that. omega advisors at the bottom of the hour. ♪ vonnie: live from new york, i am vonnie quinn. mark: i am mark barton. faster hiring to boost growth. the chief executive spoke to manus cranny. we will be within the 4% to 6%. way.ts went one i am happy with the 5.1. mark: he plans to hire 80 relationships managers a year. a look at european markets. stocks are lower today. investors focus on trump tweets. ftse down. day of the kleins. a quiet week -- third day of declines. brexit remains front and center. theresa may's future trade relationsh

>> federal reserve. .> boj >> boj. >> are you expecting to change yield curve control at the boj?> no. >> they will do a little something. >> i'm been ago with yes. i think we will see something. bonds or jgb's? jgb's. >> treasuries. >> biomes. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. streaming must see tv has never been easier. paying for things is a breeze. and getting into new places is even simpler. with xfinity mobile, saving money is effortless too. it's the only network that combines america's largest, most reliable 4g lte with the most wi-fi hotspots. and it can be included with your internet. which could save you hundreds of dollars a year. plus, get $150 dollars when you bring in your

looking to the boj, what are you expecting from the policy meeting?we still focus on the fact that the bank of japan is committed to yield curve control because inflation is still low. even though actions you saw today on the backs of market aeculation there will be change policy, the bank of japan committed to their yield curve control policy. even if they were to be thinking about change over the course of the next year, it is likely to be gradual. levels, itt these seems like yield curve control will remain intact for now. yousef: if you look at some of the moves across assets, the , this goesummer bond to show how delicate situation the boj finds itself in, trying to manage the communication here. maybe it is time for a bigger rethink about how to proceed with policy. >> potentially. there is a lot of focus around all central-bank policy at the moment. even with the ecb, there was a lot of focus around normalization coming through their. the ecb slow down the market expectations. the process will be gradual. ultimately there has been big moves in

these policies are part of the boj's effort to push inflation higher. has proven incredibly difficult with inflation remaining lower than the target of 296. remaining lower than the target of 2%. the central bank governor is behind the stimulus moves. one co nsulta nt behind the stimulus moves. one consultant says she expects him to loosen monetary policy but some are bracing for something called a koroda tantrum. that would be to go to the tapering or the exit strategy, and that is a tantrum because it could send the world's financial market into the tailspin and that could be fairly disruptive with the interest rates going up and the currency rate also affected, so thatis the currency rate also affected, so that is called a tantrum, but the koruda tantrum, as we forecast, is unlikely to happen, because of the reasons cited before. tell us a little about japan's inflation targeting. why haven't they been able to achieve 2% which they so need? inflation target, the consumer price increase, is a function of a number of parameters. some para meters number

we are looking ahead to a boj decision next week.ill the catalyst be a bank of japan move to change the yield curve control they have had as a policy control for quite a while now? >> that is right. we have seen a slight move. we know they want this to start to steepen. i think based on the fundamentals, economic growth is relatively stable. inflation is still lackluster. but they need to see profitability, they need to see the banks, the hedge funds, life insurers, we need to see a steeper curve. think it's a combination of all of the above, not necessarily based on an inflation target mandate but based on growth and the profitability requirement for banks. jonathan: that is what i'm thinking about. the policy objectives of the bank of japan where clearly portfolio mechanisms, they wanted pension funds. they wanted investors to take more risk, to get out. if you changed the yield curve controls, if you allowed yield s to the long end to start rising, are people going to buy jcb's again? >> it will take more than a minor change to ge

the rio jthis move by -- by the boj has uncertainty.t could be a positive for japanese banks, japanese equities. say, what does it do to global liquidity? global alarmse raised by the bank of india's governor. -- we first heard the global alarms raised by the bank of india's governor. alix: if you have money's going out, does that money come back ?r doesn't get drained >> all banks, all financials peaked in january. are rising,rates even though we are expecting european rates to rise. maybe that is good for financials but what will the impact be on global liquidity? what will it be on global growth prospects? we're seeing it in the u.s. financials. sales growth is critical to performance. it has been a big differentiator in performance. continue to be a differentiator in globals. what is growth going to be? even if you're going to get higher rates, if you're not making loans, seeing activity, it does not help. alix: then we have a president who wants a weaker dollar. how do you factor that in? i want to remind everybody what he said abo

richard, start with the boj and then we will move on.ept the policy variables untouched, but they did tweak some of the lingered and is sentiment. how does that change the spirit of what the boj is doing? richard: i do not think it changes it very much. when the announcement first came out, the initial headlines where that the boj was going to try to perhaps tolerate more to weigh risk in the market by widening their tolerance bands around their zero bucket for 10 year yields. the thing that took hold and what really weekend -- w eakened the yields was that they announced they were downgrading their inflation forecasts for this year and next year, 2020. they also said that they would keep rates low and keep monetary accommodative for the foreseeable future, for an extended period. net for net, we have not seen a big change, but the expectation is we will see more something material from this. they dragged global yields earlier, and a global weakening of the young -- yen. caroline: i'm looking at how the bans might ask and -- might expand

boj back in the market. clear he's in charge of -- kuroda makes it clear he's in charge. will they make a shift in policy tomorrow? stress test. mark carney tells bloomberg his preparation for brexit. we analyze what he says for clues. and brazilian hangover. the world's second-largest brewer slumps as the latin american business squeezes heineken's.profits welcome to bloomberg markets the european open. berlint miller in alongside guy johnson and bloomberg's european headquarters in london. guy: heineken certainly suffering as we heard from the cfo. the market is going to read this as a profit warning. but it's based on positive rather than negative views. the market certainly punishing heineken. trading up 2.8%. gvc is trading a little higher. seven bells trading a little lower, sorry trading a little higher by 2.61%. let's show you what the heineken stock looks like, trading sharply to the downside, down 6.23%, holdings versus the make listing -- may listing. for the bows down. down, a fewing ex-dividends

it is about the boj. haidi: about the boj. let's talk about this.t have missed what did we actually miss? >> they have been playing around with that. this was out much earlier than expected. we are looking at the manufacturing pmi. this is the one that came out all of it earlier than expected. it might have been at 9:00 local time. , we weren't expecting a dip anyway. the blue line is your estimate. that is your actual number. 51. here is the data. you have five days a part to a constant -- constitutes a pmi. here is one of the biggest drops from 50.3 -- 53.2. that get to 52.3. that gives external demand. how did us just when you're looking at this deleveraging, u.s. were talking about this. every single metric, whether this financial or monetary in china have started to push lower. shadow banks of ashley turned negative here. in a lot of ways, this is why we are seeing the slowdown. rishaad: this is -- thank you for joining us. that is not really of view. i think there are a lot of challenges in this economy. both from the international side and fr

all about speculation of what the boj will do. will they start to change around, nuances in terms of their overall policy? that is what is driving yields higher. lastly, i want to show you what is happening to bitcoin. , again,y down by 2.8% it doesn't get through regulators. they are concerned about the manipulation potential. of course, that etf being put forward by the winkle bostwick's. winklevoss twins. we bring you some key interviews just after 1130 london time for now, let's get bloomberg first word news. donald trump personal attorneys is prepared to tell investigators that the president knew in advance about a 2016 where russians were expected to offer damaging information about hillary clinton. this is according to cnn. such testimony would contradict of the president, his son, and other officials who have repeatedly claimed the president was not aware of the trump tower meeting until more than a year later. north korea has released the remains of some american warrior s. they say a transport plane flew to the eastern n

to him about the challenges and this is something we have to be thinking front and center with the boj having such marked ripple affects at the moment. stephanie: the bank of japan is another issue i would love to get into. the conversation i had with governor carney -- i was pressing him a little bit, difficult when you get these guys on the record, the interview was last month. hard to be talking about specifics. i was pushing him on whether we had gone past the point where the risk -- said for many years the risk of tightening too soon were greater than the risks of tightening too late and i think that has been true for all the years since the global financial crisis and we are seeing that shift. he admitted it was more of a 50-50 thing, that you did have to consider the risk of going to slowly when you think about the future. the other interesting thing that will happen on thursday is the government for the first time, the governor is going to release the bank of england's estimates of what the long run neutral interest rate is for the u.k., what we can think of as a debate. the fe

a mixed session in the asian session where the boj was part of the focus let's show you the sectors on the wall looking at the markets one by one. the ftse 100 is slightly higher. the xetra dax is moving in the other drirection, off by 0.1%. the cac 40 is barely in negative territory. the ftse mib is higher by 0.45%. oil and gas are leading the way higher by 0.6% we're seeing strength in banks pushing higher by 0.5% we'll dig into the details of credit suisse in a minute. you're looking at construction materials, chemicals, financial services and technology lagging. technology weakness is the big story overnight. we'll dig into that. right here the focus on credit suisse, which did soundly beat estimates with a 114 rise in second quarter net income attributed to shareholders the wealth management business had 23 billion francs in net new assets joumanna is in zurich with the details. as this restructuring plan nears an end of its three-year wonder, i have to wonder if the ceo is patting himself on the back. >> given the price share reaction i would suspect he will even though he says t

the boj story headed into tonight's boj meeting. all about the yield curve control policy.ackend to steep and what that means for the end. .- for the yen crude, up by 2%. story.dependent oil interesting to see their execution results. david: pretty fascinating what's going on with the u.s. and oil. alix: exxon on friday it was unbelievable to see the stock fall that much. david: time for the morning brief. tomorrow the bank of japan announces its latest monetary policy. expecting tweaking. the federal reserve's turn. nobody expects much of it change from the fed. the bank of england is expected to raise its key rates despite uncertainties surrounding greg's it. we will get u.s. nonfarm payrolls numbers for the month of july on friday. alix: the big week for central banks kicking things off with the bank of japan. joining us is troy gayeski and stephanie flanders. her recent interview with mark carney is the cover story for bloomberg markets magazine. we will talk about some of that interview. troy, you can see what's happened to the 10 year yield over in japan. 1/10 of 1% i

we can't be wrong with boj was.tegy and commitment, and commitment is only useful when it is creditable, when people believe you. the bank of japan's biggest problem is for 20 years they allow the economy to sink into deflation, and they reinforced it. back in 2000 2001, they made people think it was ok prices were falling. changing that commitment, ma king people think you are committed to a gradual rising prices come making people think that is a lot of work. tom: critically it is tough to do because you have a low rate presence. guest: it is tough to do in any case, but if you have an administration or a president or an executive branch in general that is criticizing you for raising interest rates, it makes it more difficult. it actually makes it more difficult to demonstrate that you are willing to commit. if people doubt you, it raises the cost to the economy. it makes people think there should be a larger inflation premium in the bond market. that would be a really unfortunate price to pay when it is showing a

when i say policy driven, we are looking ahead to a boj decision next week.ill the catalyst be a bank of japan move to change the yield curve control that they have had as a policy tool for quite a while now? marilyn: that is right. they have had this policy tool for quite some time. we have seen a slight move in jgb's, obviously, on the 10-year part of the curve. we know they want this to start to steepen. we are positioned for a steepener as well, but i think based on the fundamentals, economic growth is relatively stable. inflation is still pretty lackluster, but it's starting to come through a little bit. but they need to see profitability, they need to see the banks, the pension funds, the life insurers, they need to see a steeper curve. i think it's a combination of all of the above, not necessarily based on an inflation target mandate but based on gdp growth and based on the profitability requirement from banks. jonathan: jack, that is what i am thinking about. the policy objectives of the bank of japan were clearly through the portfolio transmission m

looking ahead, central bank decisions, the boj and said, coming appeared -- coming up.e begin with the big issue, is this as good as it gets? >> this is really about shifting the growth debate away from the low for longer, new normal. >> the tax cuts had a big effect on the second quarter. >> everybody has this growth over the next two years. >> a gives us information, but i am not sure it is going to fuel a level of exuberance that is not supported by the fundamentals. third quarter, fourth quarter, you're talking a global turbulence. >> the economy keeps moving along. >> maybe we are seeing signs you could have sustainably higher, not necessarily for five, but going back to two. jonathan: joining me around the table are my guests. plus, our guests in houston. a basic question. is this as good as it gets or growth?et more the think will be close to 3% growth we've been striving to have on an annual basis, but the i don't anticipate is going higher on the quarterly number from here. there are some bonds that will be one-time charges, exports were higher than you would n

we are looking at the boj meeting next week.hing that could be very interesting as the japanese yen is still seen as a big safe haven and now there are some it is possible that the boj will try to find further ways to ease monetary policy. this might be something that the market is not prepared for. tom: within that, what is your call for the yen then? see downside risks to the japanese yen because it should be clear that it will be very difficult for the bank of japan although there is no room for the bank of japan to reduce easing. however, the big obstacle will be whether they succeed with their communication. they clearly do not want to reduce the degree of monetary policy extension however they went to reduce the negative impact of this ultra-easy mode -- monetary policy. if they do not get this perfectly right, there is a risk of a temporary move of the yen. francine: looking at the japanese yield curve -- a pretty dramatic day for japan today. are they -- is this a significant shift in policy for the boj? yianos: not yet.

what's going on as we look ahead to the boj meeting? fact that we've had such a sleepy japanese bond market for so many months, the fact that the magnitude of the move this week, albeit at low levels, has taken some people off guard and from the meeting to be massively in play for the bank of japan next week. whether they about tweaked policy around the edges or do something more significant to pave the way for a future tweak and policy. a lot of the yield control policy in japan has been detrimental to the outlook for the profits of ranks in the country. that is starting to become a bit of a political issue there as well. as you can see on the chart, the extent of the run up we've seen this year in the 10 year yield, this week, i beg your pardon, has been really pronounced and we been used to just know moves in this market whatsoever. so it really sets up the bank of japan meeting to be right at the forefront of what investors will be focusing on. will look when bond start trading in japan, we will look at whether other indications of

the question i want to ask about clear-cut where the boj ultimately goes.e sees the range for the tenure doubling. is this a wind down the road for the boj to just let the market when it needs to push yields up, .2, without proclaiming the end of monetary stimulus? dino: that would make a lot of sense, so i would tend to think they will gradually allow the 10 .ear yield more flexibility but it some point, there's another issue, negative interest rates. they did tweak some things where fewer banks are going to be subject to negative interest rates with their regime, but at some point they will have to move away from negative interest rates. of course they have kind of hung that on what happens to inflation. it kind of means they are stuck and he states his policy framework on getting inflation to 2%. until they do that, it's kind of hard to see there's something meaningful, which is that you get both the teen year yield having the kind of move your suggesting and also moving away from negative rates. so will probably be stuck in this kind of regime with mino

are you buying the fact we could see a move from the boj? >> absolutely. we have been living on artificial monetary stimulus given to us by central banks around the world for a long time. bank to was the first start withdrawing some of that accommodation. we have been fortunate not all of the major banks have withdrawn accommodation at the same time. they are doing it sequentially. there comes a point where reality has to said in an we need to remove a accommodation. , the ecb isted talking about it, and the boj is talking about it. these are good. it brings back normalization. we have think about how quickly this path occurs, if it happens fast, this diversification failure could come to the floor where bonds selloff, equities selloff, commodities selloff because real rates start to rise. caroline: this could be a mass exodus. what about where the u.s. dollar goes up? are backing off from any interference into monetary policy. stay at the top? where does it go? >> excellent question. as other central banks start to catch up, the headwind for the u.s. doll

the boj has got its foot firmly on the panel.hat's the question markets are posing couple will the japanese ease up. givenestion is can they that commitment to a 2% inflation target with they are well away from achieving. that i think is the dilemma. can they keep going faced with the side effects and damaging consequences and distortions created by the monetary expansion they've engaged in. vonnie: given you've been contemplating macro questions of last several months, let me ask you this. is the liberal order failing and if so, what is next? undoubtedlyk it is going through a spectacular crisis. it is a system that needs driving and it was driven badly in crucial moments and that has profoundly delegitimize denver the systems managers at crucial moments were revealed in competent that was profoundly delegitimizing. and the nations that were taken to stabilize as spectacular as they were lacked the political legitimacy to make them permanent. i think that's really the question. we really are now at a time of testing as to whethe

seems likely the boj is reviewing something.nies tapped to potentially benefit from japan legalizing casinos. konami has set up a committee to consider its stake in japanese casinos. we are keeping an eye on posco, the country's biggest steelmaker which is expected to see growth due to higher steel prices. fell as much as 10% after its earnings update. dry weather conditions significantly impacted it. that's a look at some early stock movers is monday. kathleen: let's get on to the bank of japan. jgp has climbed to its highest yield after february since sliding friday on talks they could tweak policy next week. let's bring in our asian across managing editor in tokyo. what do you make of the speculation? myself, i have been winning for the point where the governor could say, look, we just have to change a little bit, but we are not moving away from stimulus. i think ithleen, would be a surprise to many if the bank of japan were next week at its policy meeting, to say, raise the yield target for 10 year government bonds, or to sc

normalizing shin or some rate hikes -- normalization or some but how much were you expecting the boj give a little bit more today? yeah, we were very skeptical about this story that they were about to tighten up a little bit. remember, japan is having a really hard time moving inflation higher. they have been able to get away from negative inflation, but they are nowhere close to their 2% inflation target. kuroda has proven to be pretty reliable in terms of understanding what the ultimate goal is. it is not about taking the markets or keeping banks -- tweaking the markets are keeping banks happy. it is about getting the economy to start to generate normal inflations. i am not surprised that they did not tighten policies like they -- and they added easing. i am concerned about the bank of england hiking this week. i do not think it is warranted given the downside risks from brexit, so we are unhappy with what we are seeing from -- but we are happy with what we are seeing with the boj. as long as they stick to their current path and suggest rate hikes are long way out, i think they are

yen is slipping after the boj left bond-buying unchanged.e been keeping an eye on what is going on with consumer confidence and sagging, with the change from the bank of korea, falling. the korean yuan is up 6/10 of 1%. i want to highlight some stock movers in the region. motors, the stock in tokyo is losing ground, off by 4%. first-quarter profits looked disappointing compared to the previous quarter, with north america a concern. tariffs be imposed, the carmaker may raise u.s. prices and consider joint production in the united states. another company delivered a second quarter operating profit that met estimates. than expected operating loss in the second quarter. it may readjust its china and korea production to adjust to the trade war. haidi: supply chain uncertainties very much in focus. with the movers, let's get you the first word news. pakistan voted on wednesday in the election seen as crucial to u.s. and china chives -- ties. a former cricket superstar sees a slight favor, although neither party is expected to raise a clear majorit

mark: the boj offering unlimited amounts of bonds for second time this week. tame a but it was by speculation the central bank may consider adjusting its policy. the volatility this week, do investors really think the boj is going to tweak its policy next week? >> at this point, there has been so much speculation about some sort of a fine tuning in the bank of japan's stimulus program at next tuesday's meeting that it would be a surprise for most market players if there is no change whatsoever. for now they have telegraphed today and monday that the guidelines are the guidelines, and they are ready to enforce them. on monday and today when yields started getting further away from 0% on the 10-year bond, they have come in to offer an unlimited amount of bond purchases to prevent a breakout in yields. emily: tesla alarms investors yet again amid reports that the company is trying to get refunds from suppliers. tesla's shares dropped on monday following the release of a memo for the car company requested a return on a "meaningful amount of payments since 2016." >

matt: let's go from the boj to the ecb. draghi will come out later today. our forex traders focused on the euro? >> certainly. no one expects too much because their june meeting set up so many things but one interesting thing and bloomberg has the story as well is we have a discrepancy in the translations between the french version of the june minutes and the other versions in german and spanish. the french version says the ecb is on hold to the beginning of summer and the other version say they aren't hold through the summer. someone is bound to pick that up and asked mr. draghi, what do you mean? three months might not seem a big deal but to people in the market that is a big deal. if they are pricing for the ecb to move at the and of the summer but mr. draghi means at the beginning, that could do a bit to the curve. the market does not seem to be racing in an increase until december of 2019 which is months past summer and also pass the time mario draghi retires from the big chair. is it possible that he leaves without raising rates? that has been the gen

the boj and nonsense -- announces its rate position. be watching the fed decision on wednesday. no print conference this time -- press conference this time. julie: the bank of england announces its reposition on thursday. joe: and jobs report friday. scarlet: that does it for "what'd you miss?" isie: "bloomberg technology" up next. joe: have a great evening. this is bloomberg. ♪ this isn't just any moving day. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that

what is going on here ahead of the boj meeting?the last few months and years of a sleepy japanese bond market. suddenly this week for bonds to be back at the forefront is very interesting indeed. it is all about a bank of japan meeting suddenly in play because of pressure ports out in the last week or so of a potential for the bank of japan to start the discussions that will pave the way for the changing of this extraordinarily loose monetary policy in japan. it has been very pronounced and a lot of pressure on the bond markets there. can see that move on this chart here. nowmarket is very divided as to whether the bank of japan will indeed give us some language and context around whether they are indeed thinking about changing this policy or whether they will stick to their guns and key policy as it has in over the last few months. one of the big pressures banks have been faced over the last few years because of this yield policy that came in 2016 has been a tough place for bank profits, putting a damper on their earnings expectat

at what the boj will do next.ng some fine-tuning that won't upset the market, vanguard saying that there is little chance of that. some of the stock moves in the region, swinging this year despite topping estimates of results thanks to booming chip sales. chinese declined a miss in earnings. the company also pointed to the high-performance of shiny smartphones. aisai, falling short of shock and and the stock fell overnight about 11%. so trading around record highs. ramy: a check on the markets, thank you very much. a look at earnings and facebook plunged in after-hours trading after the release of disappointing that can order results. rejections,sed reflecting user disenchantment. miss that it wasn't a bad mess. miss. wrinkle investor so much as it was a prediction for future quarters. growth, the revenues that facebook posted, future quarters aren't going to just grow at a lower rate than they had in the past. the growth would be down in single digits, essentially. commentary, of a understanding that facebook can

changes forcedcy the boj to purchase an unlimited amount of bonds. president trump is turning his all caps ire towards iran. last night, he took to twitter to address iranian president rouhani saying, never, ever threaten the u.s., or you will suffer consequences the likes of which few throughout history have ever suffered before. be cautious. started sundayds -- words started sunday. saying in a speech, rouhani, warning america. joining us is a former u.s. intelligence analyst and trade attache to saudi arabia. thank you for your time. this seems similar to what happened in the lead up to that summit with north korean leader kim jong-il in. are we heading to -- kim jong-un? are we heading to an iranian summit? >> i think we are far away from that. what this administration has been incredibly aggressive against iran. in may, the administration pulled out of the iran deal. you were seeing the economy of iran affected immediately. it is about foreign investment. it is about american and european countries no longer doing business in iran. that is the g

have reallythe boj helped anchor our long end.though -- i say that because if you look at relative value globally, it is the u.s., japan and germany. are low in germany and in japan, they tend to stay lower here in the u.s. on the long end. there is an anchoring effect on a relative about -- relative basis. even though the ecb and boj are active, we see the housing market start to react here in the u.s.. mortgage volumes, residential mortgage volumes have begun to fall. that is one concern i have. the opportunity there may not be on the long side. it is starting to evolve more on the short side, more on the mindset of sell the rally rather than by. julie: isn't that just combined to perhaps the homebuilders and all of the consumer discretionary? peter: we are concerned about consumer discretionary in the homebuilders are tricky because it has attribute -- tricky composition. a tactical rally in homebuilders would not be surprising. longer-term, more fundamentally, we are more concerned because we have a propriety affordability con