kuroda has been talking about for the past couple years.t is supposed to have it by september of next year, but no one think that will happen. when at the big questions we'd have been asking is how on earth is mr. kuroda going to walk us back from that impossible target without looking too silly? i think it gives him the excuse he needs. on october 30, when they announced the new cpi forecast, he will say -- the long-term is intact trend and we have slowing growth in china, therefore we will have to push back that target to another 12 months, 24 months. that is the first thing we will see, and i can say that with some confidence. jonathan: great to have you with us. hans, gentlemen, thank you very much. we are back with mike amey, managing director at pimco. mike, for draghi, does he wake up this morning and look at the euro-dollar and get a sweat? or does he have a smile? mike: i think he would be happier that they didn't move. the argument goes on the following logic. globally, monetary policy is easier today on the back of the head uncha

kuroda's remarks are giving them room to push back the target. he has given hints about inflation is flat for now. maybe better further out did he is still saying hopeful signs on the other hand the boj has been clear the risks are out there. they are concerned about exports and slowing growth in china. we are obsessed over the when. what do they buy? buyn: they have room to jgb's, etf's. they probably try to increase spending on all of those assets. boj officials have said they have nowhere near jgb's have. they feel pretty comfortable and every one of those markets. jonathan: we access over the monetary policy. is there a message coming out of the bank of japan right now that the government needs to do something to help them out? brian: i think it is clear that the government has to do something. is in thes said he middle of the road. we're still waiting for that third era to come. they should be pressure on abe to do more. we will get more on that in the next few weeks as they put that together. the ball is in his court at the moment. jonathan

so the comparison between yellen and kuroda is interesting, something we want to keep track of. >> maya, we've seen the impact on stocks. what are we seeing as far as commodities, currencies and bond markets? >> to make it simple, stocks are down a dollar. bond markets and gold prices are rallying. one analyst said the biggest surprise was the fed's comments were really jobbish. low rates usually weaken the dollar. but one currency dealer said the dollar's fall is pretty temporary as there's still a chance of a rate hike in october. that's keeping the door open for the dollar to gain in the upcoming months. the dollar is lower, below 120 yen. and one thing to keep in mind is japan is head formal a long holiday through wednesday. if you're a money manager it's your last time to make hedges and sell stocks. we may see more down trend throughout the day. it's already down over 200 points right now for the nikkei. >> we'll definitely keep track of that. thank you very much, maya ashe'd delive at the tokyo stock i guess exchange. >>> president xi jinping said their countries play an importan

the bank of japan governor kuroda between the prime minister later today.he main inflation gauge goes negative since the first time in first time since 2013. >> what the boj has said they been targeting for inflation is the consumer prices with all fresh foods. obviously, this is something that they have to reach 2% on. down to the point it was before governor kuroda started his quantitative easing policy. another gauge that we've been emphasizing more recently is was strips out those fresh foods. that hit 1% in august. nearso, prices are nowhere what the boj has been targeting. if it is 1%, it is not with the banks and said it would be. to fight anyble economist that thinks inflation will take out anyone near where the bank of japan was. jonathan: this reminds me of the debate here in europe at the turn of last year. when the ecb been up to pull the trigger on qe, we do the same thing with japan all over again. to october 30, and say what does it mean for the boj> what is any of this mean? yearaid it is deja vu last in japan as well. cpi, the bank of japan

kuroda is under increasing pressure to think about using again.ld off on raising rates and by the same token the boj is under increasing pressure due to external pressures -- china -- to take more action. we also think mr. kuroda will dialback on that forecast of inflation, and i think he will be listening to abe to hear what sort of fiscal stimulus is promised, somewhere between ¥3 trillion and ¥3.5 trillion. the other question is will he by the bullet and take action on october 30, as many think, or will he wait until january? guy: brian, great to hear from you. thank you for your analysis. brian fowler joining us from tokyo as the prime minister delivers his speech. you want to take you back to europe. we have seen a significant reaction in bmws a stock, which is now down by .2%. %. by 4.29 we are now trading at 76.44 at the moment. on a bills report, that maybe there is an issue with the emissions testing surrounding which may be worse than the vw passat. we will continue to track that story. it is a german report at the moment. vw is trading

kuroda is staunchly defending the measures they have implemented. angie: critical measures today.hat are we watching? second-quarter gdp. but iti had better news, is likely to show the economy shrinking faster than thought. policy likely not shift decisions or monetary policy moves, but we expect the number shortly. we will have current account figures in a few moments. we also have leadership elections today. they will hold a leadership vote, the liberal democratic party. shinzo abbe is set to win. at least that is the expectation. angie: thank you, zeb. next, be prepared for a rough ride on the market. ♪ angie: the european union finalizing plans to resettle 120,000 refugees from syria. the proposal will be announced on wednesday and will aim to spread them evenly across the bl oc from finland to spain. 20,000 arrived in munich over the weekend. berlin expects 800,000 applications for asylum this year. i police say a suspect in the bangkok bombing has confessed to possessing explosives. the man was asked if he was guilty of having bomb making materials, and his attorney said "gu

ank of japan governor corrode says this will pat -- kuroda says this will pass. we saw private consumption decline from the previous quarter. that was compared with a preliminary .8% drop. capital investment was down against the initial estimate of a .1% decline according to d figures, so basically, we're back to where we were mentioned so i'll they took power. he is japan's -- where we were power.inzo abe took he is japan's longest serving prime minister in years. a newspaper poll said most --anese have a high opinion only a minority have a high opinion of his policies. 45% said they did not. just reiterating, japan's economy shrinking less than first estimated, basically back to where we were when shinzo abe took power. were whene where we he came in, and we are basically back to that. rishaad: we will have more details on that story throughout the course of the show. we will be speaking to the ceo of wisdom tree in a few minutes. china out with august trade numbers today. looking at estimates, you might expect to see a hefty surplus, but her haps the wrong rea

governor kuroda says we should look beyond this. he said there could be a dip in prices. come inwe will see that and affect japanese inflation so we should be looking a little further into the future to see that washed out. next year, with price comparisons, the impact of energy cost should wash through somewhat. thingseconomists see differently. they a not quite as optimistic. you have to remember, the governor, it is his job to increase inflation expectations in japan. we get to the question of when will inflation increase? he have to look at how it has done so far. we are in two years into this policy and at zero. the target is 2% inflation through next year. even when we look that far ahead, many economists are doubtful. the bank of japan running into headwinds from the global economy. not alone. in england, the bank of england has a two cent price target. it is also at zero. oblemsare global pr also affecting japan to read the steam. economy losing southeast asia, japan has many customers for exports. the data is bad for japan. it makes us look ahead to october. that

haruhiko kuroda is expected to discuss the economy with prime minister shinzo they. but to our meeting today according to nikkei newspapers. we will also hear from an ecb governing council member. jens weidmann is speaking later today. ,"ming up on "the pulse driving vw. fed it's not just the looking to raise rates. what about bank of england? we will be talking to former member kate barker. loss, how many iphones can apple sell? we will look at demand for the new models as they arrive in stores today. ♪ francine: volkswagen's supervisor board is expected to appoint monteith mueller later today. the carmaker attempts to repair its tattered reputation. we are joined by international correspondent hans nichols at volkswagen headquarters. ryan chilcote is outside a dealership in london. hans, is matthias mueller clear of the scandal? hans: in some ways, porsche doesn't have a diesel problem. if you think the problem is focused on diesel, mueller isn't necessarily tainted by it. they have one diesel offering. in some ways, he has a bigger challenge. the entire european a

crowe does assessment -- kuroda's assessment. this rough patch is due to transitory factors.rish, could come out this morning. rishaad: let's take a look at some of the other stories we are keeping tabs on. yvonne? yvonne: we are talking about deutsche bank said to be cutting as many as 8000 jobs on top of selling a consumer banking unit. sources telling us the new cuts would shrink the workforce by about 23,000 jobs. all staff. of it will cut -- affect administrative and technology positions. the co-ceo is pressing ahead with the banks plan to bolster profitability by reducing the companies swollen expenses and coming back businesses. a final decision will be made next month. he inherited a strategy to boost reserves by cutting costs by about 15% by 2020 and shrieking assets by as much a 17 -- 17%.king assets by deutsche bank has stopped short of saying how many jobs will be lost and where. , figures falling this morning after the company posted a $100 billion loss in the first quarter. things to slumping demand for tvs and pcs. profit also fell at the company's chipmaking d

kuroda to talk about that in october.nathan: for more on japan, we strategist hebal joins us from hong kong. jim is still with us, as well. first, you for that conversation with brian fowler, the first question you have a series of goals for this morning. the question would be, can he complete this term? is this a slow burning, or will the political crisis, around? crisis is slightly a strong word for me. i think mr. abe has a standing, i believe with your tokyo report that he has wasted and spent some capital on a very contentious issue. the point is now here is to get back to get this back on the economy. he can still do it, i'm quite excited about this signal of having a nominal gdp target. i think it should be japanese policy. i hope the central bank takes and adopts-- cue this target. let's see what happens. i remain confident at this stage. jonathan: just to follow-up up, a nominal gdp target may be better than an inflation target, but why does that mean they can hit it? target -- inflation it consists of many unkno

the energy market really is creating havoc with the inflation of governor kuroda here in japan.you look at the market, the skepticism about the inflation speak to the governor, and he will tell you he remains confident of 2% targets. that of course is his job to talk of inflation expectations decades ofknow, two inflation in japan. but really the public's patience is starring to wear a little thin. so is the market. he started this program more than two years ago and we're still waiting for inflation. fit into the figures we heard about the three arrows -- maybe more than now. i lost count of how many arrows we had. brett: depending on how you count, we still have three arrows -- or may have six. the primus to held a press conference last night, setting out some new economic objectives. he is seeking a 20% increase on the economy, which is really quite an astounding target you consider that we had the economy actually contract last quarter. last year, we had a recession. we will be looking for a lot more from the trimester when he speaks later tonight. he will meet the press aga

--rging markets strengthen draghi and kuroda need to respond. futures markets lower --. -- lower. a big rally in the european bond market. let's wrap up all of that with caroline hyde. caroline: happy friday. but maybe if you are on these markets, not so happy. we are expecting a down day following u.s. equities lower. is it risk aversion? is it the fact that they are delaying the inevitable? will we see a rate rise this year? not be as there may reason to left rates in december, either. the cax was off by 7/10 of 1%. there does seem to be a general risky than search, and risk aversion in the market, but for what reason? you are seeing the bond market move on the back of the u.s.. we saw yields come screaming down. they are still falling on u.s. 10 year, at yesterday

that is why bernanke coming yellen, shea, draghi, kuroda or having to go to the uncharted, theyventionald to cut rates to zero, and that is where we are today. >> are central banks powerless to generate inflation? >> i'm not in that camp area there are those who are. i think essentially what you -- whatve you the you want to view the last decade ands a financial shock central-bank measures have stabilize things much better than what have been the case without it. what we need to remember is when inflation does return and as it does return, central banks have the tools to actually get the money supply back to more historic levels. the fed has done a lot of thought with the reverse program and deposit rates. i think they have the tools, but until they do i do think they are produced -- prudent to pursue what they are doing. scarlet: much more coming up on the bloomberg market day. we will be discussing the iphone and what differences it holds from previous iterations of the expectation for sales opening weekend. ♪ scarlet: welcome back to the bloomberg market day. let's get him some of the

kuroda. what happened before the b.o.j. announcement? hetopics rose as much as 1.6%.ities fell, finishing the session little changed. attention turns to the october meeting. they expect the b.o.j. to print more money. this is the aussie dollar. challenged tony abbott for the over the e leader liberal party. minutes from the r.b.a.'s meeting earlier this month have -- the feel-good factor after the central bank said china's slowdown and market volatility increased risk to global growth. the aussie dollar is declining once again. it is down 13%. this is one of the only gaining industry groups in europe today. the auto industry, car sales in europe rose 12% in august. the second fastest gain in 2015. customers are snapping up models and .m.w., mercedes benz republican all the. -- and renault. the former stronghold of china, brazil and russia are not so strong now. auto is one of the few industries -- industry groups rising today. that's it for me. francine: thank you so much, mark barton with the very latest on these markets. the world's largest car show, the frankfurt c

monetary policy led by kuroda was extremely expensive, and indeed liquidity is being injected.b: and optimism, etc., etc. but when it came to the third leg, which is the structural ministerhe prime promised in the beginning, this is now lagging behind, and this means the stool is not going to be stable. tom: this goes back to the previous hour, elga bartsch of morgan stanley saying less inflation out there. this is the arch question, jacob. can central bankers manipulate price increase? can they do that? jacob: manipulation has a normative connotation. can central banks' policy impact on prices? very much so, and yes, the main mechanism by which prices go up is through monetary policy. now, what we have had recently in the united states, for example, how come prices are not going up so much with so much liquidity? because so much liquidity was injected in the economic system that it was that merited through wasfinancial -- that it diverted through the financial system. tom: do you agree with paul krugman that we need a more effective fiscal stimulus? vonnie: that would be the t

governor kuroda always likes to surprise the market. francine: brad miller in tokyo. are with us. the doj needs to do more, is it better to do it quickly? october 7, or can they wait until the end of the month? mr. janjuah: i think they need to move this quarter or this coming quarter. i think the sooner the better. i do not necessarily think it will take japan to the outlands of sustainable growth and inflation. dothe bank of japan and abe nothing, that does not put japan and a good place at all. tom: i looked at the zero bond for japan. it goes back 16 years. they have tried twice to raise rates. as you know, they were embarrassed of had to move back to reverse to the zero bound. is that is the -- is that the ghost that haunts all central bankers? yellen or -- janet is the idea of raising rates, being embarrassed, and having to reversed? mr. janjuah: you nailed it. you have seen the economic history. i always refer back to 2000 seven and 2008 when the crisis of corrupted and we talked about qe. there are academic people that say if you go down this route you get cau

. -- i think kuroda will have to go again.n: i think this is one of the ones that doesn't work. hsbc,steven major from head of fixed income research. bob janjuah, thank you for spending the last hour with us. great to have you on the program. coming up next, it is decision they for bank of england. what to watch in the minutes. of much is this view, lack --? we will have much more on that next. ♪ anna: look him back. it is 7:30 here in london here it here of the stories you need to know. and advisor to japanese prime minister says the bank of japan should expand its qe program. reduce the boj should the program by $83 -- $83 billion. almost 1%akened against the dollar after yamamoto's comments. australia's jobless rate dropped. that suggests record low interest rates, a week wage growth, all encouraging hiring. new zealand central bank has lowered interest rates for the third time in three months. the benchmark rate was cut by 25 basis points. governor graham wheeler says the potential is needed. he is looking at data coming f

become a problem for profitability and in japan its a little different dynamic but the ability for kuroda to na initiate another round of qqe. >> gina and hayes, thank you very much for joining us today. you can go to powerlunch.cnbc.com to to see what gina and hayes are avoiding right now. hayes prefers financials and consumer discretionary global and telecoms in europe when you get down to the sectors' nitty-grit nitty-gritty. >>> we could be in for a multiyear bear market in oil. that's ahead in the second hour of power and only 92 days until christmas. ah! why this holiday shopping season could turn out to be anything but merry. "power lunch" is back in two. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ >>> welcome back to "power lunch." check out shares of carnival corporation. the cruiseline operator near its best levels today. they're rebounding after reporting weak guidance in its earnings yesterday. carnival earnings did beat on the top and bottom line for this past quarter. overall the shares up 13%. year-to-date 26% over t

even kuroda was saying it would be a good thing, it would show confidence in the u.s. economy. do you agree we just need to get this over and done with? >> yes. but we also need to recognize that it's been almost a decade since we raised rates and in that time it's been an extraordinary set of circumstances. we've lived through unconventional monetary policy, qe, 1, 2, and 3. so don't be surprised to see the fed move tomorrow but perhaps only move 12.5 basis points. >> just like a token, a little symbol saying we're getting the process started. >> we're getting the process start. we don't want to rock markets but we need to move. we should have moved already and we need to. do you think there's the potential for a little irony in play, that if they don't move and we see low rates for much longer, that maybe the market will start to think, hang on, what does that say about the growth outlook and that could be bad for risky assets? >> absolutely. we think that the short-term reaction to not moving might be positive but over the ensuing weeks and months could be very negative beca

that is like bernanke, janet and kuroda have to go into the uncharted in a conventional policy., rates to zero, and that is where we are today. mike: are central banks powerless to generate inflation? richard: i'm not in that camp. there are those who are. i think that what you want to view in the last seven years is that an enormous once in the sentry financial shock and -- once in a century financial shock and that would've been the case without it. what we need to remember is that when inflation does return and as it does return, central banks have the tools to actually get the money supply back to more historic levels and the fed has been a lot with that with the reverse repo program and deposit rate. i think the fed has the tools if the friedman relationships return but until they do, i think a prudent to pursue more or less what they are doing. tom: so much of our audience understand the anger that is out there, whether it is the united states, united kingdom, there is a political firestorm out there. to america's, to united kingdom's, and is the challenge that the chair j