is not that the boj can't cut the rate steeper than -0.1%.emoving the timeframe from the forward guidance clarifies the boj's stance of commitment to easy policy. we are ready to take necessary action if price momentum toward the target is affected. david: just in case you didn't know who that was, that was japan governor kuroda with the decision out of the boj thursday. rishaad: to tokyo, stephen engle is standing by with the man dubbed mr. yen. he has a target of ¥100 and the dollar fairly soon. i wonder if he is holding to the. stephen: let's ask him. its bring in our guest. we are pleased to be in his office. the formero much, vice minister of finance here in japan. we heard from kuroda yesterday. off on policyng changes for now but he said there is room to cut rates further. do you see the need to ease further? we are already in negative rates. if the economyk deteriorates somewhat from the current 1%, i think easing of monetary policy is necessary and i think what corroded thinks, satisfied with the current state of the japanese economy

it has been a tough situation for the boj. think we will see instant reaction from the data although the data was in good. , ands been largely driven we take the central bank considerations into what we are looking at the yen levels. we are seeing a lot of yen selling on the back of global growth prospects increasing on the back of sort of falling in the u.s.-china relationships. it will be a more key driver of the yen than what we are getting from the boj. in this short segment we have got two of the largest central banks, the fed and boj and similar synergies -- messages you have got conflicting opinions on both of them and they need more reassurance from data. japan, you are going to be looking for some sort of extra stimulus from the boj. what method it comes in, whether increasing qe, which we have seen so many times, that could stimulate the market. we have had a decent run to the downside for the yen against the dollar and the crosses. there could be a contraction of that move or correction into the year-end. the main d

does this help the boj stay where they are?een: when the boj chief gave a speech yesterday, he talked about how monetary policy is giving fiscal stimulus even more energy. let's remember -- with monetary policy, the boj is at a point where it is hurting banks and but forthe economy, them, yes, peak dovishness may have already been reached, but if you look at other central banks in asia, compare them to the rest of the world. aremany of them, key rates not much higher. they have more room to cut if they need to, but i would bring it back to this -- what does the trade war do daca does it become a trade deal? when that weight gets lifted, it seems a lot of boats around the world will get lifted as well and that may help more central dovishness aseak well. haidi: a lot weighing on these negotiations and this trade deal. we will get more analysis later on. ising up next, qualcomm rising and extended trading after projecting stronger-than-expected revenue. we are breaking down those latest numbers from the chipmaker. this is bloombe

that is the key thing in what the boj does next. kallum: the boj is very concerned about deflation. it has been for a long time. i can see it as a major economic problem. no big deal with inflation at 1%. but the boj has a 2% inflation target. it's very hard when japan's demographic hits that. it will be for the foreseeable future. if the boj is desperate to hit 2%, it may have to do more. i don't be go out much on the domestic japanese economy. nejra: we will be coming back to the trade talks. markets have gotten very optimistic's. -- optimistic. turnedhow much they have in favor of risk assets. yet, we get different news every day. now reports we might have hit a snag. how close are you to a phase one deal to the end of the year, and a phase one deal that makes a difference to where we are in the global economy now, and causes a bottoming in pmi's? marketswe are seeing point towards an improvement. to that, we probably don't need things to get worse on the u.s. trade friend. step, a was a positive phase one deal, that would be an upside surprise. as long as things don't get worse.

also the yen, and the boj. 41 day since the boj came in and bought a sizable chunk of stocks in the japanese market. someat stealth tapering, people are arguing because the yield on the 10 years unchanged. the yield has been lurching lower eight basis points. weekhas been put less a and see what is going on in regard to the haven stages. the learn not willing to look at and take on risk right now. this is of course after the election results or we saw the landslide victory when it comes to democratic camp. she was talking about how she is ready to listen and stands by previous stances on protest demands. >> people who felt that our government has not handled, deadly the legislative exercise and its aftermath. but it -- the legislative exercise and its aftermath. but i have as i have sat on the fourth of september, we have officially and formally withdrawn the bill. the next step to go forward is really as you have put it, to engage the people. we have started public dialogue with the community. fortunately, with the unstable environment and chaotic stable -- situation i cannot do more that e

to kuroda at the boj -- mr. kuroda at the boj also highlighted that.ruggling with its fiscal profile. over there, it is perhaps not the best example. vonnie: we have to leave it there, but thank you for spinning so much time with us today. , head of -- win thin currency strategy for brown brothers harriman. coming up, the 13f filings. this is bloomberg. ♪ ♪ vonnie: the latest read on u.s. money managers positioning is out, with hedge funds filing their third quarter 13f's. we should note these are not a full picture of what happened. they are even misleading, potentially, but we know something for sure. sonali: as you said, it is a lagging indicator, but our hedge fund team has poured through all the data. billions were spent on alibaba, despite the trade war tensions. viking, the tiger, chase :. . definitely a lot of -- chase coleman. definitely a lot of names. tech names were pretty popular. guy: let's talk about those. facebook,ig, but also microsoft, netflix. sonali: facebook was the biggest trade for harvard management. we are watching endowments

i do not think the boj is going to let up too much on the banks.hat about other people's money? great to see you. have a great weekend. up next, we are looking at a company where investors have been piling in to send share prices up 2%. the three-day praise at 230%. we are talking ck life. it is all about a prey through for -- a breakthrough for cancer treatment. this is bloomberg. ♪ >> welcome back. you're watching bloomberg markets. we are watching one specific stocks. here is ck life sciences. absolute tear this week. capping -- take it over three days. 230% after the company said cancer treatment is showing promise after gains of 20%. it is trading at 118. >> the chief operating officer is joining us. tell us about the drug that has caused this euphoria. and, how close you are to having it approved. >> three things to remember about the drug. vaccine forapeutic treatment of melanoma. >> skin cancer in other words. >> it is the most aggressive type of cancer, which causes the largest number of deaths around the world. it is a vaccine which is a

the 10 year japanese yield continues to trade below the zero level, which is the preferred boj level. we have a bond program announced att 5:00 p.m. -- announced 5:00 p.m. tokyo time. reflective of it being near six month lows. gold is pretty much stable. nymex crude oil is up again. bute down in the session, over the last 24 hours, moving to the upside. back and looking at what is going on with regards to the opec plus meeting, another deeper cut in oil production. we have breaking data. decision for sri lanka. they kept the standing lending rate at 8%. the deposit rate at 7%. that is pretty much unchanged. what is going on with some of the first word news. we have a man who has been relatively quiet. kim jong-un making himself heard today. president trump is facing a new challenge when it comes to north korea after the launch of what is reported to be a super large missile. the north has tested a multiple rocket launcher. having earlier found -- fired two short-range range weapons. it comes as pyongyang threatens to abandon stowing nuclear talks unless the u.s. offers concessions th

even the financial markets or in the global growth environment to prompt the boj to deliver additionalch would most likely be rate cuts. we were not surprised all the bank held at its october meeting and the bottom line is unless the yen strengthens materially or we get further downside risk from materializing, we think the boj is on hold for the foreseeable future. haidi: for the full schaeuble future. great to have you. izumi devalier, from bank of .merica this is blumberg. -- bloomberg. ♪ beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. haidi: a very good morning. japan has just opened for trade. shery: good evening from new york. welcome to daybreak asia. the trade war is still on. we do not see such a massive jump in consumer spending across

paul: the boj low on ammo. are they out of ammo? in terms of traditional measures, they are. can do to tweak monetary policy. they can shift their focus on the yield curve from the 10 year maturity to the five year maturity. that might help steepen the may be mildlyhich supportive for their banking system. they can continue to purchase fixed income and equity assets and add to their balance sheet. at this stage, we don't view that as being a significant driver of a different pace of economic performance. they would have to do something more creative. fiscal policy would be a big change and an important one. we will see if they can't get enough stimulus. i would save the bank of japan is out of tools in terms of traditional policy toolkits. paul: eric robertsen stays with us. we will extend this discussion in a moment. we will look at the automakers facing be slowdown in china. why one top player is ahead of the pack. yvonne: more from our conversation with howard lee of the hong kong monetary authority amid the protests. this is bloomberg. ♪ ♪ paul: this is "daybreak: asia."

>> monetary policy is unlike the fed, the ecb, or the boj. it doesn't have as much of a global flow-through as those three. the asset prices are likely to continue to appreciate. whether that comes through with regards to the numbers is a different story. the ability to actually continue to push up asset prices, whether it is housing or equity, is going to continue. the other thing i will say, and i know we've been slightly pessimistic, it may not be as bad as what's been forecast. things will slow down. they won't meet the very optimistic view of the rba. i'm not of the view that it's going to collapse or we will see rid fed -- see recession. i do not think we will see a period where disinflation comes in all across the board. things are ok, not brilliant. they are ok. better thanlightly forecast expectations on the economics, very accommodative monetary policy, what that means you have asset prices on their way up, but there's a possible boost to numbers. there's a possibility that 2020 could be as good as 2019, off the idea that asset pric

rally in stocks been driven by the fact that the fed is back in the market, ecb is back in the market, bojever went away? liquidity is just everywhere. lucy: when you look at where the cash levels have gone from institutions, they are now down to the lower levels of their ranges, having been very high at couple of years ago. center.cash is been guy: if liquidity is still there, is that something that supports equity markets? we've done 25% this year in many markets around the world. if we continue to see the court of the kind we have now or more, will that generate these numbers we have seen? lucy: it is difficult to see the same kind of support coming from the fed, and doing the 180 degree turn it did. so it is unlikely we will get -- guy: on behalf of liquidity? lucy: liquidity will be there, but you will not get the momentum and surprise we got from what the fed did earlier this year. as far as growth is concerned, as i said, it is pretty pedestrian, both at the macrolevel, but also the corporate level. if we keep a low single-digit earnings growth, it will fare relatively well. if you

we have seen the boj, the ecb, the fed all adding liquidity back into the system. every trading desk i've ever talked to tells me more liquidity equals higher stocks. katerina: absolutely, i agree 100%. the market is driven by liquidity, and effect we are so oriented to monitor the situation and act accordingly plays a big role in the fact that we have a rally, in spite of the fact that the news is mixed and there's a lot of volatility. vonnie: what are you telling your clients right now? where are the asset classes that you would recommend, given that it's never been more difficult to find an asset class that is obviously the upper-class? katerina: and this time, especially for investors and our clients looking at this market, looking at volatility, and are worried about the uncertainty of this market, we look at asset classes that are like consumer discretionary, cyclicals, communication services. we are looking at asset classes that are not particularly tied to the trade war, and we are also focusing on yield. we design portfolios around investorsdesensitizes a

little movement and plenty of money coming back into the economy. ,e have the ecb doing qe again the bojave been doing for heaven knows how long. that is giving markets a kind of wind behind their back kind of thing. it helps support those equity markets. behindspeaking of wind the back, mark cranfield was saying earlier that the options market and cable are showing that it will be easier for the pound to move higher than lower on development with the u.k. election. we hit a one-week high, staying below on1.2938 on that. perhaps it is something in the equity markets, as we are two weeks away from the election. >> i think there are three or four things you want to pay attention to. have a look at where the dollar is trading against the euro, just about 0.5% above -- or below the strongest level since 2017. in march, the pound was looking particularly strong against the euro. we thought we were going to get this brexit deal through. obviously, that did not happen. side, as you are talking about, the options market, implied volatility is still higher in the pound than pretty much anywhere e

the boj yesterday, they set the bar relatively high to additional using. sets us fair for a flight moderation going forward in terms of dollar. if we are going to see a reduction in the trade tensions, and of course, that is a big "if," and if we start to see slightly more optimistic growth trajectories relative 2019 and 2020, then of course that puts it back into play, some of those currencies. the rebound in the aussie and the kiwi i think probably has a little bit further to run as well. nejra: jeremy stays with us for the hour. barbara first word news in -- bloomberg first word news. >> president trump is weighing in on boris johnson's brexit deal. he says it will make it more difficult for the u.k. to strike a trade deal with the u.s. after it leaves the european union. , theing to nigel faraj president said the two countries could be doing much bigger numbers when it comes to trade. pres. trump: under certain aspects of the deal, you cannot do it. you cannot do it. you cannot trade. i mean, we cannot make a trade deal with the u.k. times the can do m

away a lot ofows the other context, it means that while the fed, while the boj while the others continueicy, means asset prices will remain supportive. manus: ok. peter, stay with us. your first word. from hong kong. saudi arabia is taking a ronco public. it will probably start trading in december. understand the kingdom will accept a lower than the much touted to trillion dollars. it is now looking at between $1.6 trillion and $1.8. but getting that my evaluation may be tough. banks involved in the offering are telling potential investors that aramco may be worth $1.5 trillion or less. in hong kong, at least 200 rest -- 200 arrests this weekend as democracy protesters clashed with authorities. police firing tear gas and water cannons and demonstrators calm curated streets -- devastated to barricaded streets. two people were sent to the hospital in critical condition. in south africa, the country may be celebrating victory in rugby. but there's less to cheer about on the later -- on the nation's finances. moody's cut its outlook to negative but considered against downgrading the country'

they were down 0.5% the month before, so potentially good news, welcoming to the air of the boj head. can get a little momentum, that's the sort of thing he hopes can help push up the inflation rate. with the big jump in household spending, i think this is the kind of thing that at least for right now, for these reports, paints a nice picture. certainly, given some of the other indicators for the .apanese economy let's check in on the yen in the wake of that data drop. we are seeing it holding steady for the moment. not much changed then. we are seeing slight moves lower for the again, trading near a five-month low against the dollar. let's get to first word headlines with jessica summers. jessica: thanks, sophie. the u.s. and china have agreed to rollback tariffs on each other's products as they had toward an initial trade deal. the commerce minister of beijing says negotiators have had two weeks of serious and constructive discussions and have decided to remove the made. as progress is white house economic aid larry kudlow confirms the plan saying concessions will be made as the dea

the boj governor says he won't rest until he receives the targeted 2%. with a higherree cpi goal.d policymakers are watching threats at home and abroad, and will consider further easing. and the aussie dollar, which lost ground as details of the reserve bank's latest meeting confirmed concerns over for the rate cuts. minutes from the november 5 rba meeting show the central bank considered making a fourth cut in june but held off amid concerns households were being spooked by low borrowing costs. the board recognized the negative effects of lower rates on both savers and sentiments. finally, struggling office space is facingwork scrutiny from the attorney general. the company says it is cooperating. wework has had brush with legal offices in the past and last year reached a settlement of a noncompete agreement employee signed, but were seen as overly broad. global news 24 hours a day, on-air and tictoc on twitter, powered by more than 2700 journalists and analysts in more .han 120 countries i'm su keenan. this is bloomberg. juliette: thank you. let's discuss how markets are trackin

[laughter] barry: so it will just worsen the liquidity trap, and the ecb and boj are starting to comeat realization. sweden is getting out of their negative realistic -- negative rate policy. alix: so you hike so you are out of it, but then you are at zero. barry: but the point is they've realized this has created this liquidity dynamic. if you look at the discussions today about europe and the banking union and all, and i asked yesterday, how does europe start to resolve the problem? for me, germany has the same issue -- or it is a different issue come up at the same dynamic as in the early 2000s, where they could not compete in deglobalization boom because their labor market was -- in the globalization boom because their market wasn't competitive. they are trying to sell cars to china. that is not going to work any longer. they've got to restructure their whole tax code. this is restructuring the tax code and trying to spur technology innovation and that sort of thing. if germany wakes up to that, then europe has a chance to really move forward. at the supply chain part of it in asi

it is a turnaround from the boj, which as recently as september, had been confident of continuing deepening -- from interest rates. india's budget deficit has ballooned to $20 billion and is set to widen further as the economy struggles with the global slowdown. 2019 budget deficit is now expected to reach as much as 2.2% of gdp from an initial target of 1.8%. climbedcit is already to above $20 billion as of the end of october. ousted bolivian leader eva more or less says the country's legal head of state should be a 32-year-old senator from the majority socialist party who was elected leader by the senate last week. moralesissed -- dismissed the rival leadership claims the presidency has been recognized by the u.s. and brazil. morales's allies have a majority in both houses. global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. the violence continues in hong kong is a two day universities huge is raising fears of a bloody crackdown on hundreds of protesters. that is police and activis