geoffrey yu is still with us.ey, we end the year in japan with maybe a few things going the way they want. we have the better trade surplus data, the yen moving in the direction generally speaking, strong dollar, weakness in the the and confidence among larger manufacturers as a result being boosted. the boj, how are they going to be mentally getting into this meeting if that is the back story? geoffrey: the boj clearly will be happy with what happened. , the focus was wage growth, wage growth, wage growth. if you are optimistic about your export holders or things i back, it is may be time to pay your workers a bit more because that is the only thing that can generate reflation in japan over the medium to longer term, but the jury will be out on that and structural reform, does the government uses time to actually pushed through a few more reforms? not sure if the market is holding at this point. manus: the effect of japan is to anchor the yield curve. this is a series of moments. negative rates at the backlash as

geoffrey yu with us. sion and dive into the international economics of geoffrey's world hero in a little bit with davide serra. coming up, she was the secretary of commerce in illinois, penny pritzker. look for that in the 5:00 hour. taylor: -- this is bloomberg. ♪ ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second. you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. francine: this is "bloomberg surveillance." we are getting breaking news the netherlands. the next potential risk to europe, a netherlands exit. we have into europe and euro politician who is just been but hasilty in court not been defined yet. this is significant. he has been found guilty but we do not think this will have an impact on the popularit

is geoffrey yu of ubs wealth management. are we looking at a december, january, february scenario? geoffrey: for emi fx, we just prefer to hedge out the dollar risk altogether. from a tax class allocation point of view, we are long a basket of em currencies. like the ruble, rialto marais rand, real.uble, this is a way to have exposure to em and remove the dollar risk. yum equities still an area we like come actually. em equities.s -- david: are these problems with trade or external debt exposure in u.s. dollars? toffrey: we have to start differentiate. if you want to look at the external debt front, look at the that is a bit worrying. if you want to look at trade come all those currencies we just mentioned, what are the high beat trade currencies? the currencies which have benefited come of the countries which have benefited from globalization over the last two decades or so, those need to be unwound. alix: we are seeing that reflected in the yuan. usually when you see depreciation, that wreaks havoc in the markets. of we going to see a redux august 2015? geoffrey: i think the marke

for more on the opportunities, i will get back to geoffrey yu. re we get to the opportunities, what is your main risk? geoffrey: if we are wrong on the dollar call, and we actually have a strong dollar and strong growth, and trump delivers on spending plans, and we get the massive reflation -- traditionally, reflation in the u.s. has not really been timed with the rest of the world. that is something we are watching. francine: give me your best. -- the yen is is depreciating. we like the yen equity market. we like e.m. currencies. whole, if weas a can get past a hurdle, it can do well. expectations are stronger in select markets. strong domestic profiles. india, for example, i know that market is [indiscernible] policy changes have led to questions. it is predicated on the view that the dollar will stabilize around here, against e.m., and the debt situation. china is a ron kirk. francine: -- china is a wildcard. francine: you also added high-yield in europe. right now, from a technical point of view, that was a trade that no one wanted, for the be