japan and u.s. will actively use three pronged approach of fiscal monetary and structural policy agreed at g 7. and will discuss the ways to lead a balanced and strong growth. views will be exchanged on international economic and financial developments and we'll work closely. one sector of cooperation such adds high speed rail and energy, various themes were japan could incorporate would be taken up. japan and u.s. economic relationship will be deepened or multifaceted front along with the pillars of japan u.s. economic relations will leap forward significantly in japan and u.s. together will lead strongly. economic growth of asian pacific region as well as the rest of the world. also vice president pence and i agreed to hold a second economic dialogue meeting by the end of this year at a mutually convenient time. to further deepen japan u.s. economic relations and to build a new history of bilateral relations going forward. vice president pence and i will continue to have constructive dialogue. thu

japan will push for japan-u.s.uthorities to work ever more closely, including minister of foreign affairs, dispute settlement section, as well as general counsel office. which was newly formed. on the cooperation on economic policy area, japan and u.s. will actively use three-pronged approach of fiscal monetary and struck chushl policy agreed at the g-7. and will discuss the way to lead a plansed and strong growth. views will be exchanged on international economic and financial developments. and we'll work closely. on sec tomorrow cooperation, infrastructure such as high-speed rail and energy, bare years seem where japan-u.s. cooperation will be taken up. and japan-u.s. economic relationship will be deepened, on a multifaceted front. along with the three pillars. we'll leap forward significant lay in gentleman pand u.s. together will lead strongly. economic growth of asian pacific region as well as the rest of the world. also, we'll hold a second meeting by tend of the the year at a mutually agreed on time. to buil

i had to come to japan. i bring greetings from the president of the united states of america, president donald trump. earlier today on the president's behalf, i behalf, i had the honor to meet with prime minister minister to reaffirm the abiding friendship and the entering alliance between japan and the united states. the united states and japan alliance is the cornerstone of peace, prosperity and freedom in the asian-pacific. under president trump, america is committing to strengthening our alliance and deepening our friendship for the benefit of our people and for the benefit of the world. already, our bond is growing stronger. prime minister was one of the first world leaders who president trump hosted at the white house. they continued their meeting at the southern white house and i can attest personally that they have forged a good personal relationship which is already benefiting both of our nations. their relationship truly demonstrates the extraordinary respect that president trump has four our criti

primus are and all the people of japan we are with you 100%. [speaking in native tongue] as i make clear on behalf of the president, with our visit to south korea in the area of strategic patience. while all options are on the table, president trump is determined to work closely with japan, with south korea and all our allies in the region and the challenges to achieve a peaceful revolution in the d glare is ace of the north koreans. [speaking in native tongue] we seek peace always. as a country as well as does japan. as you know, in the united states, piece comes. we stand with our allies japan to bring peace to this region. [speaking in native tongue] with our disparity discussions i look forward to the commencement of the us japan economic dialogue that you and president trump initiated during your feather worked on trent february visit to washington dc. i look forward to announcing a framework for that ongoing dialogue with your deputy prime minister before the end of the day. [speaking in native tongue] we have a commitment to security and

prime minister and all of the people of japan, we are with you 100%. [speaking japanese] vice president pence: as i made clear on behalf of the president in my recent visit to south korea in the area of strategic tensions. while all options are on the table, president trump is withmined to work closely japan, with south korea, with all of our allies in the region and the challenges to achieve a peaceful resolution in the korean peninsula. translator: [speaking japanese] vice president pence: we seek peace always as a country, as does japan. peace comes slowly. we will stand with japan and with our allies to bring peace and security to this region. translator: [speaking japanese] vice president pence: in addition to our security discussions, i look forward to the commencement of the u.s.-japan economic dialogue and president trump initiated during a february visit to washington dc. and i look forward to announcing a framework for that ongoing dialogue with your deputy prime minister. translator: [speaking japanese] vice president pence: we have a commit

we stand with our allies in japan to bring peace to this region. translator: [speaking japanese] vice president pence: in addition to our security discussions, i look forward to the commencement of the u.s.-japan economic dialogue that u.s. president trump initiated during your visit to washington, d.c. and i look forward to advancing a framework or that ongoing dialogue. ] anslator: "speaking japanese vice president pence: we have a commitment to security in look forward to discussions today and again on behalf of the president of the united states, i thank you for this very, very warm welcome in my first visit to japan as vice president. thank you very much. announcer: across the atlantic, british prime minister recently announced she would call a general election across the u.k. nearly two years earlier than planned. the plan needs a two thirds majority vote to move forward. y: i have just chaired a meeting of the covenant where we agreed the government should call a general election to be held on the eighth of june. i want to explain the reason

japan could do this, they claimed, because the united states had created the world in which japan was thriving. the united states said the argument -- they doggedly maintained their commitment to tradeoper ethics of free and the japanese used unsavory practices for free trade systems. equally alarming prominent observers argued that with japan's success exposing the possible weakness of america's own economic model. a wave of literature argue japan was winning precisely because it was the anti-america, because of active government planning and a group centered in individualistic mentality. stemmed from the flaws and weaknesses embedded in america, offering a chilling portrait of america's own future. no product was more symbolic of the japanese threat than the automobile. made up 25% of american auto sales. those a dramatic jump from earlier. unemployment had reached 300,000 people. many members of the auto industry blamed japan. heads, unionmpany leaders appear to congress for legislation that would place tariffs on japanese cars. the japanese government did voluntarily adopt restrai

japan's reaction to cpi. thank you, the reaction to that japan data.et back to our conversation with former senator max baucus, former u.s. ambassador to china. we had a conversation on north korea. china walking a fine line between the u.s. and pyongyang right now. i am curious to get your take on this. is north korea going to be the corridor that china uses this regarding trading currency issues? how significant is north korea as a bargaining chip? sen. baucus: first of all, it is a mistake for president trump to ,uggest he bargain with china north korea, for trade. a big mistake. urgency of the national security threat we face from north korea. china ono deal with trade directly. china is very protectionist, there is no question. overcapacity in semiconductors, for example. let alone new commodities like solar and wind power. to deal with that directly in china has to back off. the united states has to lead. we're the biggest country in the world, people expect us to lead. china cannot do this alone, nor south korea or japan. we have to deal more se

/japan economic dialogue. this dialogue presents the united states and japan with an opportunity to deepen our bilateral economic jobs, foster jobs, prosperity and growth on both sides of the atlantic. we're building on a strong foundation. but as the prime minister said, our economies have been intertwined for generations, and this is a new day and a new chapter in relations between the united states and japan. every day, though, our nations already exchange goods and services that improve peoples lives and help businesses on both sides of the pacific succeed. japan is the united states fourth largest goods trading partner and our fourth largest goods export market. japan is one of america's leading investors. japanese foreign direct investment in the united states totals 4$400 billion. the second most of any nation. i saw that firsthand back in my old job when i was governor of indiana. how trade and investment between our countries can be beneficial to us all. in 2013 and again in 2015 i led a group of indi

can the us do a deal with japan? after president trump dumped a key trade deal with asia — the vice president begins a visit to the country to drum up trade — and rebuild bridges. live from london, that's our top story on tuesday 18th april. the americans have also accused japan of currency manipulation. so what are the odds of the two sides achieving a trade deal? also in the programme, a big day for the us financial sector as bank of america and goldman sachs we'll get the lowdown from new york. could a computer come up with the next big medical breakthrough? we'll meet the man who's using artificial intelligence to try to bush back the boundaries of medical science. and as weetabix fails to take off in china, its chinese owner puts the company up for sale. so today, we want to know, what gets you going in a morning? what's your breakfast wherever in the world you're watching us today? welcome to the programme. of course it has to be a full english! send in your comments. in the last few hours, the us vice presiden

we're speaking to a professor of economics and member of the bank of japan policy japan until march of to you about the exchange rate on a couple of levels. one, governor kuroda has always almostbout is this impossible to reach the 2% inflation target? how important is the exchange rate and how is the bank of japan doing it? was a main driver. i think yes, inflation is .mportant to generate i think it is the right way to look at it. not continuel forever. at some point it will stop. i think mr. kuroda and the boj have to think about how to have a convincing argument for the household and generate higher demand. maybe that come edition with the government in order to do a more structured reform and generate more growth. >> is there any danger to the japanese economy from the fact that japan is still on the currency watchlist? we got that report just a couple weeks ago from the u.s. treasury department. they do not call japan equity when it later but they are among the six nations they are watching. yen's currenthe exchange rate is no longer over body. they look at historical data. yen-d

is committed to japan's security. president i'm planning to sign an executive order that seeks to make changes to the visa program that brings in high skilled workers. trump will be in wisconsin to send the order dubbed by american, higher american. the white house says the program by bringing in cheaper labor and says that companies are using it to hire large numbers of workers and drive down wages. and netflix that could hit a record high today. shares reached an all-time high in extended trading that the video streaming company says it on the verge of topping 100 million. watch for a new high today. u.s. stock market futures after the dow gained 180 yesterday. some optimism about earnings this week certainly down there is a death which is down 44, s.b. features 45:00 p.m. the trump administration august deadline for tax reform appears to be off the table. treasury secretary steve mnuchin says it is impressive. they met what is your timeline attacks upon an tax cuts he spoken so much about? >> look at this time by a

japan erasing earlier losses.ave a look at the currency markets, inflows, the south korean won, a big movement with high beta currencies like the won. 1111 predicted in the next few months. all right, put this up and have a look at the commodity markets, and no movement across energy. there was a big move last week. all the information has been priced in. next key thing is what happens to inventories. that is what opec keeps saying. look at inventories and the main data. when we moved to june, we expect the needle to be moved a little bit. the bond's, yields down, aussie 10-year below 2.67%. other things we are following, very busy, a lot of central bank decisions, inflation data. at 11:30,omes out thailand inflation. you have headline inflation in blue, core inflation which has remained steady. when you look at the oil price, and that has led to this pop. it has been low, the low end of the range. oil has done enough to live to that. when you look at core inflation, that is a better indication of demand. the othe

us today.for joining the chief economist for japan at credit suisse.to you. ♪ ♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin with the unveiling of president trump's plan to overhaul the u.s. tax code. the white house considers this effort one of their biggest priorities to boost economic growth. the proposals at revealed earlier today were dramatic, they called for sharply lower rates for businesses and individuals. also eliminating key tax breaks. it represents a first moved to begin negotiations with congress. i am joined by dennis berman of the wall street journal peter , coy of business week and from

in japan.ey don't expect. to be named a currency manipulator but they are concerned,. even in japan, even if they are not named a currency manipulator, there is still basically a feeling that the u.s.'s stance on trade, the criticism of japan, is generally unfair and doesn't take into account the reality of the japanese u.s. economic relationship and the trade relationship,. there's a different view between what president trump has said about japan's trade balance to the u.s. and how japan sees that. it will be difficult to bridge that gap in this economic talk later this month. haidi: thank you for that, james in tokyo for us. president trump is coming this difficult meetings list week, while china's president has stopped in finland. it looks like we can expect a warmer welcome in helsinki, of all places. the chinese president's visit to finland can be seen as how another sign of how china and the you ever -- the eu are positioning themselves. you can see that trade between the eu and china ha

for japan.t -- excess growth could be waiting on the second half. thatcould be driving izumi:? we are looking at strong first-quarter growth. it is important to remember that that sets a very high base for the rest of the year. in fact, our view is that growth will be very strong in the first half of 2017. then we are looking at a bit of a sequential slowdown because of this moderation in exports that we are expecting. also, public investment is going toprovide a bit of a boost japan's gdp numbers over the next few quarters, but unless puts together another big stimulus package, it is unlikely that the momentum will continue. we are very constructive on the japanese economy, and have to remember that the headline number is being flattened a bit by the sequential dynamics. izumi, thank you so much. ourn fowler as well, reporter there in tokyo. and westinghouse, reports that -- this loandollar for toshiba is not going to be enough. this is bloomberg. daybreak asia, yvonne man in hong kong. betty:

week beforeng one the bank of japan meets.hey will have a policy report, change their forecast on growth, inflation. he is also giving us foreshadowing of what we can expect when we get that information next week. even with a stronger yen, up 7% this year against the dollar, still expects inflation to reach 2% sometime next year. let's see how far the bank of japan have to go on that. what you see is the yellow line, that is the overall year on year inflation rate at 0.3%. you can see this one is above zero. if you go to the white line, fresh food prices, 0.2%, that is far below. it was higher when energy prices were higher. when you take out food prices and energy prices, the turquoise line, you get back below zero again. you can see where that 2% target is. they have made progress. a stronger yen makes it tougher, but it will not top inflation from eventually hitting the target. here is what he had to say. >> it appreciates and the timing -- if exchange rates appreciate, the timing could be .arlier ,he basic trend is toward

how important is japan in his plans? this is first of all home to the biggest contingent of us troops in the western pacific. it's got an aircraft carrier, a large naval contingent and while vice president and this year injapan he will be going to meet with sailors on the uss aircraft carrier that stocked about 70 kilometres south of tokyo. —— that is docked. that's very important, but also japan is, like south korea, on the front line these days and well within the range of north korea's intermediate range missiles that have been tested frequently over the past year. so the japanese government is as concerned as the south korean government and the us government about what's going on in north korea and we will be talking to vice president pence about this new policy towards the north koreans. —— and will be talking. regional security and trade will be at the top of the agenda of vice president pence's visit. the white house hopes to open doors to us made products and japanese infrastructure projects in the us? that's rig

. >> the first parade was only 12 blocks in japan town. now it runs all the way from city hall to japan town. >> one of the things i remembered even as a kid is that it wasn't just the japan town and japanese american community that comes out. all sorts of people, all sorts of communities join in the festivities which makes it so much a san francisco event of the area. >> that's right. we feel it is a major event and that's what the san francisco travel people tell us as well. >> absolutely. what's going to be kind of unique or new about this year's festival for the 50th? >> this year, we have a huge contingent directly from japan. >> oh. >> much larger than usual. every year, we do have participants from japan, but this year, being the 50th, there's a gigantic group. >> what strikes you the most about this golden journey? how much it's evolved? >> that we got here. >> yeah, yeah. >> because it's not easy to put on. >> really. it's a huge accomplishment in my opinion. it's a volunteer effort entirely. and it requires some knowledge of the

is it about japan or the global story?it is obviously doing to the chinese economy, but i think japan is an underappreciated economy in the eyes of investors. part of the problem is, the strong correlation we tend to have between the external value of the japanese yen and the nikkei. that is justified to the extent that japanese firms are in the industries and export arian to forms -- firms. -- export oriented firms. there is more strength in the japanese economy than to just simplify it down to where the exchange rate is. matt: what you think about pimco's call? marie: balance sheets is like the catch phrase at the moment. this is also a balance sheet issue because we all know that 270%ese growth sets in japanese gdp. if they have assets that exceed their liabilities and is not an issue. i do believe this is the case. anna: the other thing interesting about the japanese story is targeting the yield curve. that is something pimco will reference. you see change in policy from the boj? tol better data be enough cool the boj

japan italy come -- the u.s. supports japan, including in the islands in dispute with china. australia is tightening rolls on citizenship. heap -- the rolls on citizenship citizenship.on >> we need to ensure that our citizenship test enables applicants to demonstrate how they have integrated into and engaged with our australian community so that they are part of the community, have lived here as a permanent resident for four years, speaking was, share our values, the integrated. those are critically important elements. i believe that they will be empowering for applicants. paul: global news 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. i'm paul allen. this is bloomberg. let's get to the trade day in japan with the country ending the first quarter with stronger imports and exports. there were surprises all around and ask a good news for shinzo abe. brian: yes here in this finishes the fiscal year for japan and japan finishes with a surplus for the first time in six years and and's in a positive note, a note that was surprising in a i

occupation of japan. china was seen as a basket case and the u.s. was determined to stay out of a nationalist communist war. in august, they withdrew asian officers from nationalist forces. the soviets also decided their interests were best served by reining in the chinese communists because they had been occupying the last days of the war and secured important concessions from the nationalists in a final soviet treaty, that also concluded before the fall of japan. it blocked in north china, the communist retreated into manchuria, which is a peninsula between japan and china proper. in the first two years of the -- 2.5 years of the civil war, the nationalists appeared to have the upper hand. in spring of 1946, the nationalists went on the offensive in manchuria and drove the communists from its southern half, where one of china's main industrial centers was located. one that was wanted by the japanese and where the land was agriculturally productive. one of the things the soviets did was to take back war reparations. the nationalists also made advan

and japan.nt speaking to business leaders in south korea saying that the u.s. -- saying we must be honest about where u.s.-korea trade falls short. the hard truth is that the trade deficit doubled and that the u.s. is reviewing all trade agreements how including the one with south korea. also saying that south korean companies have made significant investments in the u.s. economy so offering generosity there. that is despite some of the hard work about needing to be honest. certainly, you might be hearing the same thing when he speaks with japanese leaders as well later. yvonne: the choice of words is interesting. they are appointed. they want to have a hard line when it comes to the trade imbalances they see between the u.s. and japan. it is funny because you heard just a few moments ago that they are not expecting any free trade announcement deal to be made during this trip. he said there is no discussion. detailed can't have talks between the japan and the u.s. because u.s. personnel have bee

japan.s is bloomberg. >> prepare for volatility. the than a week before third of open and a per grabs. warnings,ing stern mike pence said they were committed to security. >> a strong greenback is a good thing, just days after trump talked it down. and it isgship show 7:00 in london and we're getting the first look at futures. >> it was editor and you saw london take that a little bit lower and you will get a little with the risklead and that is where we are taking it to now. some see the dollar strength it contrastsng and a little bit with what we heard from the own trump. it was the immediate aftermath and many are questioning the long-term with the limited structural reform. this with gone from the volatility. futures and we have been following this with oversold.t be it may break. we have the u.s. futures and we saw a big change in the direction for equities yesterday. and let's go to the japanese markets with the yen on the move. we have the topics up. the vice president, mike pence arri

in japan, the bank of japan is likely to do absolutely nothing. it has become passive aggressive. up to if and when janet yellen increases interest rates further, increasing the trade. us to give us a stronger dollar. -- that should give us a stronger dollar. >> you said the boj is with a passive aggressive mode right now, but half the economists surveyed say the boj needs to start tapering over the next year. how will that play out? jesper: i think there is a big misconception. you talk about tapering, which implies looking at the balance sheets, people misunderstand what happened in september. the bank of japan switched back to a price targeting regime, so they want to cap the 10 year bond at around zero, and whether that takes ¥80 trillion of trillion yen or 63 of balance sheet does not make a difference. i think it will be at least until this time next year before the bank of japan is going to change its interest rate policy. betty: and a lot of that has to do with what we see with economic numbers. not just household spending. we are starting to get a trickling out of the num

rishaad: bank of japan, growth numbers out of the u.s..of that, bank earnings season starting, also automotive ownership on the cards. we are getting cpi, indeed, let's get it to paul allen. the cpi numbers crossing now, .5% for the quarter increased. not quite as much as analyst had been estimating, looking for .6% for the first quarter. that gives us an on your figure of 2.1%, so just scraping into to 3% target band for inflation, the first time we have been here since september 2014, some of the rba can breathe a sigh of relief on that front. meanba watches the trim for the quarter, also .5%, on year 1.9%. the aussie dollar coming off a little in the wake of these numbers. is consensus that the rba has its hands tied in terms of what it can do. inflation is taking up, but it has this worrisome situation with the property market. >> it does. they do have other problems, particularly in terms of underemployment. there is a column in one of the newspapers criticizing the finance minister about not speaking about the underemployment problem

and japan. i'm curious about statement in the treasury report saying it is difficult to see that there is any evidence the yen as overvalued, the real effective rate is 20% weaker than the historical average. not disputed, but the fact it is out there as fact, does that deal a body blow to dollar-yen and do we risk going beyond 100, perhaps much lower and much earlier than the end of 2017 forecast you make? >> that's quite possible. it is now moving towards 100. depending upon the remarks of president trump, it could go towards 100 fairly quickly. i don't think it's going to happen soon, but depending upon the relationship between the two countries and the remarks by various people, it could move towards 100 fairly quickly. stay with the spirit we afteret more from mr. yen the break and talk about the implications of geopolitics on the currency. plenty more ahead. this is bloomberg. ♪ withad: you are back "bloomberg markets: asia." i am rishaad salamat in hong kong. haidi: i am haidi lun. let's

the bank of japan the bank ofjapan meets, as things go from bad to worse for corporate japan.ussed the problems, and what needs to be done. and the of south korea's election, we hear from whistleblowers in the culture of corruption which roared down the president. it is wednesday. good morning, asia, hello, world. glad you could join us for asia business report. i am you could join us for asia business report. iam rico you could join us for asia business report. i am rico hizon. you could join us for asia business report. iam rico hizon. we you could join us for asia business report. i am rico hizon. we start with japan, and companies there are making headlines for all the wrong reasons. fuji has delayed its most recent earnings report after discovering accounting is regularities, and toshiba is restructuring its business after the colla pse restructuring its business after the collapse of its nuclear business. is the japan central bank doing enough to reform corporate governance? i asked our correspondent in tokyo. the reason for the problem is very deep. i would say it is cu

, japan, line corp. which is in japan of course.stocks, disappointing as far as earnings were concerned. but sewer this is going. as we wrap up this week, one must reading. there is some concern that australia came to curb some of these gas exports are -- exports, to ensure there's enough supply domestically. quickly, one last chart. have a look at industrial profits in china, it is johnson's 2013 as far as the comparison to last year. that coming up to producer prices in china. we're now inflation territory. .> of the data we just had. german consumer confidence. looks better on the jfk numbers. this morning we go a cps from europe's biggest economy through the estimate is 1.9% euro on year. that's basically the ecb's target. central bank will keep interest rates and pace of purchases unchanged. stephen,management -- schenectady with the ecb in mind. you areut what expecting. expectations for actual change today are low. but it will be all about the quizzing he gets around the hour. that risks arey balanced for the eurozone? >> he

bases right here in japan.z abe also earlier this week pointed out the possibility that north korea could carry out a chemical attack in the region, suggesting they might have the capacity to mount chemical tipped warheads to their missiles. so again, the security concern is real here in japan. what people in japan wanted to hear from the mr. president is not what he delivered, which was a commitment to security in this region here and a strengthening and a deepening of this decades old security alliance here. >> he sure did. alexander field live in tokyo. we should add some speculated the trump administration might reverse policy on tpp. he said that is a thing of the past t. united states moving on from the tpp. thank you. >>> with north korea as a background, the pentagon announce as review on the use of xhuk clear weapons for the first time since early in the obama presidency. these reviews typically happen every eight years, but there one is expected to look very different than the last, which was down in

washington making moves to reassure japan. the north korean vice minister said it all out war would break out if the americans launched a military action. the e warning g comes after pene told the north not to test washington's resolve. trump, theesident united states will continue to work with japan and all our allies in the region, including south korea, to confront the most ominous threat posing this region of the world, the regime in north korea. let me be clear, our commitment is unwaveringg and ourur resolve could d not be stronger. , wehese challenging times are with you 100%. in the face of provocations across the sea of japan, ththe people of this country should know that we stand with you in the defense of your security and prosperity, now and always. >> staying with this story, let's bring in michael, our tokyo correspondent. reassuring words fromomice presisident mike pence concerning the nuclear threat from north korea, the u.s. reiterating its support for its japanese allies. >> that's right, and to be honest, th

is probably hopefully 20 million cars, japan is pro ba bly less hopefully 20 million cars, japan isss than 5 million units. it is not a really important car market these days. i think agriculture is a very important market. the japanese have truly superior agricultural production capabilities. and they need to extend those and start selling their agricultural products, in particular to their local member china, and free up the agricultural space. i think that will be a major focus of the talks. in tokyo. united airlines has released their earnings. the chief executive is taking nothing for granted. he has once again apologise for the scandal over the forceful removal of a passenger from a flight last week. and these pictures of the doctor being dragged off and overbooked flights sparked a public relations disaster for the airline. but there are believes there will be no long—term impact on the bottom line. -- beliefs. this is a huge airline with a market cap of over 22 billion. last night we saw shares cross over 2.5%, almost over 70 us dollars. it shows the financial state of affai

mike pence is due to arrive in japan shortly where furious. shortly where north korea could dominate talks with prime minister shinzo abe. though, currencies and the trade deficit may also come up. earlier, i asked rupert wingfield—hayes in tokyo how important japan was rupert wingfield—hayes in tokyo how importantjapan was in us policy towards north korea. vitally important because this is, first of all, home to the biggest contingent of us troops in the western pacific. it's got an aircraft carrier, a large naval contingent and while vice president pence is here injapan he will be going to meet with sailors on the uss ronald reagan aircraft carrier that's docked about 70 kilometres south of tokyo. that's very important, but also japan is, like south korea, on the front line these days and well within the range of north korea's intermediate range missiles that have been tested frequently over the past year. so the japanese government is as concerned as the south korean government and the us government about what's going on in north korea and

japan maybe will be joining the carl vincent in the sea of japan. there was already moves towards a stepped up military presence among the u.s. allies in the region. what remains to be seen, of course, is the reaction. there was the suggestion by kelly o'donnell and others who were closer to the president in suggesting that there probably won't be much of a reaction, that there will be a hesitation to give kim jong-un the sort of platform that he's looking for and the attention that he wants. in speaking with south korean observers, there's the sense that having been to the brink and back before that this is just the game that north korea tends to play, that it's less military brinkmanship than it is a political gain so kim jong-un may be sending his own message in saying that he wants to talk. >> there in seoul, south korea, about 10:07 a.m. on a sunday easter morning with the latest, with reaction coming from south korea, but also from the regions, areas, countries that are aligned with the united states, this after a north korea missile launch. >

japan is not alone.reare many geographies labor bargaining power has just been gradually eroded over the last 25-30 years. investors are reaping the rewards. that is not sustainable economically. anna: the regions where they are updating profits most is japan. manus: inextricably linked with what happens with dollar-yen. there's an injured straight differential, the bassist swap of a -94 basis swaps. --s stops and cap saps out.ed andc capped if there is an unwinding. reporter: changing guidance from the boj. i think the flow is in and out of yen. driving boj behavior regarding your current guidance. what international investors see any hell a success, not just japan but its reference point to the u.s., will push the yield curve in the direct and of changing guidance toward the second half of this year. i don't think it is sustainable given where other bond markets are moving. global trade looking better. we will talk more about u.s. and chinese in our next conversation. in japan, always material. reporte

we know japan benefited policy from the bank of japan, it is the kind of longer interest rates of japanrectly impact the currency. the forecast is on one approach versus the intervention policy by the finance, and we are focusing on what is happening to this japanese relationship in imports their focus on of japan and the gap between policy, because it is still there. but the boj may be forced to digest the interest rate target if the u.s. continues to say japan manipulates the currency. shery: thank you so much for joining us. i am surprised that 107 called for the next three months. credit suisse chief economist or japan. let's get more on asia's first major market open just in its away. -- minutes away. ramy: sophie kamaruddin tells us what we should be watching. sophie: thanks. we will keep an eye on toshiba because the government has flight concerns over a foreign -- of it -- over a foreign entity taking control of its chips. they may be looking at a joint investment in the nikkei, and also reporting toshiba may be planning a sale of its tv business. take a look at caps on shares.

he will be visiting japan. i was there a few days ago and the japanese were very much looking forward to his visit because they are also within range of these medium range missiles. the japanese want to make sure they understand what we are going to do because if we were to make a decision to do something and there was a retaliation from the north koreans, the retaliation could also reach japan and the japanese are very aware of that. the prime minister pointed out the other day it's possible the north koreans could put sarin gas warhead s on their missiles. they want to be in touch with us. >> one of the concerns is that all the countries on this map right here and more will start to arm up, right. that was the shift that former president obama said i am looking at the asian theater potentially for scenarios like this where you have an overactive, if you will, north korea, which therefore says to south korea, japan, china, taiwan, this sort of cascading effect that each country will now want to arm up to defen

the factory owns 150 looms of which 20 are state-of-the-art models from japan. these are extremely expensive pieces of equipment costing close to $100,000 each. once the machines are programmed, they can automatically produce finished products. when the company was state-owned the majority of their business was to manufacture products for other brands. less than 10% of the products were for direct sale by gobi. however, since privatization in 2007, the company has rigorously engaged in capital investment to produce a large number of products for direct sale. gobi is putting much effort into designs aimed at the overseas market. in the past, the company manufactured the same designs for both domestic sale and overseas sale. recently a new team has been set up within the design department to specialize in designs targeting overseas consumers. the company is also recruiting designers with experience of studying overseas. in the near future the company plans to secure contracts with italian designers. the president is the force behind the transformgsz of gobi into a

japan is doing an exercise.considering an exercise, which the north would also view as a provocative act. trump calling the chinese president for the second time in two weeks. this morning everyone was watching to see if north korea will go ahead with the nuclear test. if they do, what is likely the response? reporter: we have seen a lot of editorials in chinese state-run media warning north not to do this. that if you do this, china will support the most severe united nations sanctions. the chinese president does not want trump to go outside of the take unilateral action, which means a military strike, which could unleash a terrible war throughout the region. but he has signaled that warning the north they will cut off fuel and food, the things you need to survive, we will actually do that this time. that is one possible response. yvonne: it comes at a time when china and north korea relations have been chilly. we see how the state back media goes against each other. reporter: you don't see this very often. nor

kathleen hays joins us in studio. >> let's start with japan, we have japan's tpi for the month of march survey manufacturers are getting more upbeat on output prices. ppi is seen march rising 3.4%, year over year. let's look at this simple chart. it has the headline ppi and cpi. this gives us a nice view of the trend. look how much producer and wholesale prices have come back. up to that 1% level, expected to rise to 1.4%. bloomberg intelligence sees 1.2%, but still, making headway. the governor spoke to the japanese parliament 24 hours ago, saying he sees inflation continue to rise in a virtuous circles of rise -- rising prices and wages. giving a very optimistic view. also yesterday in tokyo, and inflation-linked bond sale was the most massive since 2013. presumably in part that core cpi will be expected to rise. also because the bank of japan will be buying more of these. kind of a supply and demand question. china's cpi and ppi are the big ones. ramy: they are doubting the reflation trade. it came as a jolt, right? is actually job openings and labor turnover, a survey that is done e

hellen keller comps -- comes to japan, her second visit to japan. 1948 she is traveling all through japan, and she really is speaking to people to give them hope, courage determination, find resilience. she is speaking with her own voice even though she is deaf and blind. she comes to -- she goes to hiroshima and goes to nagasaki. 5,000 people meet her the nagasaki train station and that this point chico is nine years old and the remembers helen keller so when the solutions her voice, at 20, she says, that image of helen keller comes back to her and she worked very hard to get her voice back, and when she does, it's a turning point of what will i use my voice for? another surprising part of her story in change is that she begins reading gandhi. her father was reading gandhi during the war, and actually was studying english during the war, which was against the law. she begins to read gandhi, and then this is in the '60s and martin luther king comes -- steps out on the world stage, more and more, and she pays attention to king and his message of nonviolent civil disobedience and the makes

we talked about the data from japan.s question of whether or not we are seeing wage inflation in japan, some people say we are not. that is not true. when you look at the unemployment rate, we are back to levels seen in 1994, 2 .8%, the jobless rate. toe is one way best way measure it, the morgan stanley, that has been up. 2% levelnverging at a which some people say that could be the land -- line in the sand where the ideal wage inflation would happen. i am david. of the was drawn to some news about wages this morning. we will talk about that shortly. thank you, david. the european central bank has interest-rate unchanged. as officials monitor the economic recovery and the risk of political turbulence. mario draghi struck an upbeat note on the state of the economy, but not totally without concern. since our meeting in march, confirmed the soap -- cyclical recovery of the economy is becoming increasingly solid and the downside risk have further diminished. surrounding the growth outlook, while moving towards a more balanc

japan's big corporations realise they have to change to survive. decided to bet on nuclear. in 2006 it went out and bought westinghouse. five years later, this happened. this is me inside the fukushima and if you plan to four years ago. this changed everything. many countries decided they didn't want anything to do with nuclear power. those that did insisted any new plants must be much safer and because of that they we re much safer and because of that they were going to be much more expensive. that's the root of toshiba's current financial disaster. toshiba is not alone. 0ther disaster. toshiba is not alone. other famous japanese names have been through deep crises. last year sharp was sold to a taiwanese company. now toshiba will be broken up, its best bits sold off to the highest bidder. a fabulous report. can i tell you, we are all loving that report here! thank you. also, the 70s, i was right with you, unfortunately! thank you. i know you will keep across those numbers. we will see if any more information comes out. thank you. that was rupert

let's turn to what is happening in japan.not a as they are elsewhere, we do have a big event coming out in the form of the olympics. where next for dollar-yen? een, you have just been out there. give us the feedback. what will the olympics do? infrastructure is definitely underway. it will be a great olympics. the japanese are the world champs in logistics. creditlook at the impulse in places where we have increase in the credit, we see the economy popping credit into the system, the activity will probably surprise the jobs. the basis swaps in currency terms i.e. what are the japanese u.s. doing to access dollar premium continues to strength? ae access to u.s. dollar for japanese corporation and bank is cheaper, this collates with a stronger yen. channelooking at a which is targeting 103. guy: this is the 2016 move down from the 20's down into the 100 area. do you think we get down to around here somewhere? 100 is the line in the sand for the bank of japan. we see policy action at 100 or just below. you will have a hammer fro

>> japan is an interesting market.gest etf marketplace in asia. .0% of the assets in japan you have an interesting trend because you have the desire by the boj to inflate the economy. they are doing it through investing in equities. they are using etf's as a vehicle. they are looking at more specific -- what i call social engineering -- trying to invest through indices that favor companies that have certain , like humanics capital or more environmentally friendly. you are allowed to combine these two trends into one. we think japan is further ahead in some of these then some of the rest of asia. but that too will spread. haidi: the s&p dow jones indices ceo. joining us on his visit to tokyo. president trump and the chinese president prepare for tough talks. who will hear from a top chinese film director. he is keen on more cross-cultural cooperation. this is bloomberg. ♪ haidi: this is "bloombers markets: asia." president trump and his chinese counterpart are preparing for their first summit with top talking on trade e

therein lies the challenge for japan. anna: we saw the role of china in the crucial trade, then didn't we? matt: you point out there is stilealth tapering. explain. >> there has been a lot of talk that the bank of japan remains toply committed continued purchases, but they are taking their foot off the accelerator of purchasing and beginning to wind back. i think it is appropriate to marketut that this is a that has been heavily supported by the central bank, not just i n bond terms, but in equity terms. anna: that is interesting because governor kuroda was making the point yesterday to francine that he does not think's monetary policy is constrained -- does not think his monetary policy is constrained. he does not seem to feel constrained by the amount of ownership that they have. >> i think he doth protest too much. he is not going to talk down the support the bank of japan can provide. the big issue is whether or not japan's companies will step up to the table. obsessed withare the french productivity challenge. we tec

but first, some headlines out of the bank of japan. speaking to francine affected ination is the short-term. they say they do not see constraints to doj policies and the japanese economy is growing well above its potential growth rate. doj has 40% of the japanese government bond market. that means 60% is still in the market. is current pace of purchase to continue for some time. if the fx appreciates, they will hitherto percent target. france withover to marine le pen's interview. >> i think the economy is on track. were making an adjustment. likely to growl 1.35% this year. this is a big improvement compared to this last year. the japanese economy is growing 1.5%. growth potential is less, percent in japan. have, there risk we is a lot of judgment. for developingr countries is where the money is. there is no sort of financial crisis or financial programs. ok.financial sector is however, there are some -- also, most emerging economies are doing quite well, including japan, and indonesia. francine: when you talk geopolitical risk, what

rosalind: reports from japan say the u.s. agreed to brief tokyo before taking military action against north korea. the pentagon has discussed a possible strike following the missile launches. earlier, pound yang said a preemptive strike on south korea in response to the u.s. moving a carrier group to the area. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. gatead: china's factory inflation likely to take a breather and march after sewing to the highest level in february. steve is having a look at this moderation down to commodity price gains. let's put this into context, 4.5 years of deflation. this is a continuation of the deflation story. it is expected to have moderated. there is some face effect on year-over-year numbers, but also a slight moderation and commodity price gains we saw in march. 7.8% rise in ppi in february, the highest since september 2008. this month, march, we are expecting it to moderate a bit. rishaad: we have this great #3416

although japan cars made in america. —— lot of bluster.uge factories in the us, it employs a lot of americans. yes, the united states would read their biggest export market in the year to march. a 2.8% rise in car sales, no letu p. march. a 2.8% rise in car sales, no letup. a big installed a soft production in the united states as well. —— big installed base of production. so we will not get any specific news about trade between the two countries after this visit, but it is important in setting the foundations for future discussions. absolutely. donald trump has made clear that that is his intention, to rebalance existing trade agreements. the simple fact is that on this occasion there are more important factors to discuss. canon, thank you for coming in this morning. —— ken, thank you. we will be across this story all morning, and when we get more news we will update you. as mentioned earlier, donald trump has vowed to provide a boost to the country's car industry. but this isn't the only one hoping to benefit from policy changes made by

he just landed, we understand, in japan. he arrived. he just landed, we understand, injapan.a lunch with prime minister shinzo abe. shinzo abe has been quite supportive of president trump's new, harder line towards north korea, which i think reflects the frustration that was felt via di abe administration in japan the frustration that was felt via di abe administration injapan about the previous obama administration's policy, which was called strategic patience. people here think that is a fancy way of saying, doing nothing. now president trump has come along and said, we cannot do that any more, we are going to be hardline have everything on the table, including the possibility of military action against north korea. well, that is something which, strangely as it may seem, the japanese government welcomes. i think the reason for that is because they feel that this sort of pressure is needed to change the dynamic, and particularly to change the dynamic with china and put more pressure on beijing to tighten its sanctions against north korea, which everybody here thinks is the