we are joined by bloomberg's jodi schneider who is in tokyo for us. what were the key factors in this worse than expected gdp reading? jodi: the business investment number was a big part of it. it was down 1.3% from the previous quarter, and that shows companies are not investing in the economy, even though they had record stockpiles of cash, and many of them, very strong stock market returns. shrunk, whichso is another big factor in the decline. anna: is the recession expected to be long-lasting? this has been for four or five years, the second since abe took charge. jodi: right, the second during abenomics. it's actually not. there seems to be a number of indicators that show e economists that this could be a short recession. we could be showing growth again in the quarter in which we are in, especially if the u.s. and europe recoveries continue. one of the interesting factors is that inventories, even though they shrunk in the quarter, and that did not help gdp, the fact that companies are using up things in their warehouses and things that they've

let's bring in economy editor jodi schneider from tokyo.utler some of the big contributors to this contraction? reporter: business investment was a large one. it was down 1.3%. that was even more than had been anticipated. that is showing that companies are not spending, and the economy is stockpiled. record stockpiles of cash that they have gained from stock market gains. it's a real concern, especially since prime minister abe has made business investment one of the key points he wants to see, one of his key goals for recovering the economy. is, can wething expect this to be prolonged for japan? reporter: probably not. there is good signs. first of all, a lot of economists think that science had already been pointing upward so thatfourth quarter, could make it a short recession. also interesting that business inventories, stockpiles companies have in warehouses and elsewhere, were somewhat depleted in this quarter. that hurt gdp for the third quarter. that may help for the fourth quarter, if it shows that they are using up the stockpile.

jodi schneider: a large one.1.3% in the quarter which is a larger number and more than expected print it shows irmpanies are not putting the money, good earnings and very hold the stock market gains but not going back into the economy. also, inventory, business inventory sure which was another -- shrunk which was another factor. anna: is it expected to last? do you see signs it is going to get a weaker from here or stronger? economists are saying and saving it as a temporary recession and a quarter in which we are in, some growth potential. might be a actually good sign even though they shrunk in the quarter and it hurt gdp. the fact companies are using up the inventory, their stores and warehouses that the fact is they are going to those and a sort of looking to the future that may mean they have to produce more in this quarter. it could be a silver lining if you will. is exportspating continue to be strong and the , theand european economies recoveries improve that japan will improve along with them. china rema

for more here is our japan economy editor jody schneider in tokyo. saw a decline, however, in core c.p.i. what does this mean for the inflation trend? >> well, you're right. core fell which just excludes fresh food. when you look at what they call core core that actually rose 0.7% and excludes all food and energy. and so that is the one that we think the board of the bank of japan and governor will be looking at. that supports their view that inflation is the inflation target is rising. that they're trending toward that. so that is the one we think the b.o.j. will be looking at in terms of any possible policy changes in the future. >> analysts and economists like that we surveyed here at bloomberg and talking to everybody, thinks there is a big potential for more stimulus. so based on the figures we're seeing today, jodie, can we expect further easing or other changes from the b.o.j. at the policy meeting in mid december based on this? >> well, the economists bloomberg surveyed are actually very split as to whether there will be further easing over t

thank you very much, jodi schneider from tokyo.the picture in asia -- let's move to russia. putinent hollande and coordinated strikes in syria to vocus on jihadis the militants. >> president putin and i are in agreement on three basic points. first, we will exchange information of all kinds into notably between our armed forces. the attacks against the islamic state will be intensified and will take ways in a coordinated action to increase their effectiveness, particularly effects of the transport of oil. president putin has given support that the forces fighting against daesh an terrorist groups must not be affected by our actions. we need to hit the terrorist groups and daesh. anna: hollande was in moscow during an intensive week of rallying support against the islamic state. ryan chilcote is in moscow -- good to see you. cameron, obama, merkel, along on board. has he succeeded in his aim of getting everyone on the same page? ryan: maybe. maybe just a little. i think the biggest take away from president putin's press conference w

let's go to jodi schneider who joins us from tokyo.t were some of the big contributors to this contraction? it was way worse than the calculations. somewhat worse than the calculations. business spending was way down. 1.3% in the quarter which was a very negative figure. the record holding, the record cash the companies have from good stock market returns are not being translated into investment in the economy and that was a big driver of the negative growth in the quarter. thatad: that is the thing have people very concerned. some are saying that this could therefore be prolonged and not just be a one off. usi: economists are telling there are signs that things are picking up and there may be good gains in the fourth quarter that would make it a short recession. technically, we could come out of this in the fourth quarter. exports are looking good. if the u.s. and european economies continue to recover well and the export growth is good, this could be a short recession. the largest issue of business that it raises a question whether p