kuroda has met with prime minister abe for the first time in four and a half months. the boj said he explained his negative interest rate policy but kuroda declined to comment on what they discussed over the yen's sharp rise and on exchange rate levels. >>> my colleague ai uchida spoke with a senior market economist at the bank of tokyo on the latest developments asking him about the current dollar/yen trend. >> the coming rate hike expectations but it will disappear. that's the reason why we have have seep this year a sharp decline of the dollar, appreciation of the yen. so our calculations are just at the 107 or 108 would be appropriate to see a difference. but which barely brought out rapid movement. we think if we see 107 or 108, we also have a chance to see a smaller appreciation dollar against the yen. >> still it is a downward trend for the dollar. what does that mean for japanese companies and abenomics as a whole? >> not only the movement of the dollar/yen but also equity markets movement will have influence to outcome the fiscal year 2015. the end of the mar

the dollar briefly hit the 119 mark, but changed after remarks by kuroda. i'm mayu yoshida. >>> other markets in the asian region ended low. investors shrugged off january as strong service sector pmi data, but property shares were higher following the government's measures to boost housing sales. the resorclose today in austral that's the biggest one-day loss in four months. december's trade deficit came in much worse than expected partly due to a fall in resource exports. let's take a look at seoul south korea kospi down by .8%. the hang seng also down. chinese authorities would limit purchases of insurance products in hong kong. >>> japan's long-term interest rates continue to fall after the boj launched its negative interest rate policy. this has prompted more investors to opt for government bonds. yields on ten-year, jgbs hit a fresh low on wednesday or fresh record low on wednesday of 0.045%. but, analysts predict financial institutions will buy more government bonds rather than pay money to park their funds at the boj. the some people may benefit fro

kuroda -- e xistential crisis by mr. kuroda in japan. i think it's one of the main stories, not the only story, but one of the main stories driving this sentiment. uy: the market already got there and it seems to be increasingly ahead of the central bank. look at what's going on with the fed. we will talk about blackrock later on. right now.about this let me show you what's happening on the terminal. at ise are looking probably markets coming up by about .8%. likeean stocks look they're going to open a little bit softer in around 29 minutes time. hans: we've got to take a quick look at the assets out there. sentiment inisk the treasuries, down to about 1.75. on the 10-year, pound continuing to weekend. -- weaken. let's get the bloomberg business first word. bhp billiton has made a larger than expected cuts to its dividends, lowering the payout for the first time in 15 years. world's biggest mining companies seeking a protective balance sheet and credit rating. tumbledarter profits 92%. over 40% over the last 12 months. david cameron's ca

kuroda of the bank of japan.we have more monetary policy options, we will not hesitate to add more stimulus is necessary to achieve the inflation target. in the terms of timing additional easing move will examine the economic condition and risk factors of the time and make a timely decision. tom: he is a singular voice out of yale university and the massachusetts institute of technology. he is at morgan stanley after a tenure at the fed and the monetary fund. we are glad to catch up with you. is there a threat to the policy makers from the economy. is the abe government and kuroda 's tenure at the bank at risk? robert: i think the bank of japan has shown a great deal of , desire, and a determination to do whatever it possibly can to make sure that we beat it inflation. at this point, the boj is the only game in town. we saw the economics minister having to leave office over a minor scandal. his successor has a long learning curve to go before he can put together aggressive reform policies. the bank of japan is ta

ramin: i guess it is dependent on what kuroda does.he places where we would like to be at the moment, certainly kind of long em currencies. dmexpect outperformance of versus e.m. this here. we are using that as a hedge in our portfolio. we like to belong risk in europe at the moment, but the hedge we have is to belong dm currencies versus e.m. in terms of yen, it depends on what kuroda does. guy: thank you very much indeed. ramin nakisa still with us after the break. we have the open. we have 10 minutes to go. somee going to look at potential corporate movers, including rbs, who reported their eighth annual loss this morning. ♪ it is 8:52 in berlin. probably the same time in frankfurt. and i were back in london if my clock is right. caroline hyde has our stocks to watch. caroline: we are keeping a close eye on rbs. this is a u.k. lender and it is trying to start to move away from government ownership. start to give money back to the shareholder base. we are seeing rbs underperforming where markets have been hoping. we had that overall

governor kuroda, as we speak, just saying he does in the think asset purchases have limits, but many disagree with that comment. we'll get into that in a minute. meanwhile, the world is putting pressure on china, according to the country's vice finance minister. he added that beijing understands how important it is to correctly communicate with the market. meantime, the imf has called for members of the g-20 to prepare a coordinated stimulus plan. this comes as g-20 leaders meet in shanghai, where much of the focus will be on the health of the chinese economy. >> investors are overly nervous about various aspects of the chinese economy. if you look at the more fundamental aspect, consumption, it's quite robust. what i saw in recent statistics is during the change in the new year, retail sales were growing 11%, which is a quite impressive number. >> here in the studio at the top of the hour, we're joined by the head of market strategy at swiss bank. thank you for coming in to visit with us. i think what the imf is saying to the g-20 leaders is just maybe talk amongst yourselves about

up next, kuroda's inflation problem.ar from his distant target of 2%. ♪ 7:18 in frankfurt, good morning. csf expects earnings to drop slightly this year. based on the company's definition of slump, a earnings could be as much as 10% lower than last year. we will be speaking to the chairman and ceo of basf at 8:35 u.k. time. aares of tumbled after controlling stake in the troubled electronics maker. it came as after the taiwanese company won a protracted agreement. it involved contingent liabilities of up to $2.7 billion. microsoft will file a court injunction to support apple in its fight with the u.s. government over unlocking a terrorists iphone. meanwhile, google, alphabet, and facebook plan to file separate briefs according to people familiar with the matter. after expects to join the so-called friends of the court brief as well. facebook ceo mark zuckerberg has issued a companywide memo chastising employees who, despite his warnings, have been cropping out the phrase black lives matter and adding the phrase all live

what will kuroda do? does he need to stable the equity markets first? all of that will be discussed on this program. jonathan: what constitutes a crisis? are we there yet? stay tuned for that. later on, commerzbank, some good news. swinging to a profit. it is the consumer bank profit that surges. we have got to talk about that. of course, jpmorgan. jamie dimon mopping up the stock. guy: corporate buyback. let's get you up to speed with all of the news and detail. caroline: the reserve bank of australia is giving the door open for further rate cuts. governor glenn stevens told a parliamentary panel that the country's economy has the flexibility for further easing. he said the board is weighing the sustainability. the u.s., russia, and other powers have act and accord. it demands the immediate delivery of humanitarian assistance to besieged areas. >> we are doing everything to try to bring an end to this conflict. in a way that results in a ,nified, nonsectarian minority-protecting, secular, whole state. dimon spendsie $26.6 million buying shares of yeste

other-yen, a real slog down to kuroda-nomics. dollar-yen a little bit higher today.tronger japanese yen. the biggest two-week gains for the japanese yen since 1998. let's wrap up some of the news now and cross over to caroline hyde. caroline: jamie dimon, chairman and ceo of jpmorgan, is buying shares of his own bank after they tumbled to the lowest price in more than two years. maderce says that dimon the purchase because he believes the stock is cheap. jpmorgan is down almost 20% this year. thyssenkrupp posted a net loss through december, missing analyst estimates. germany's steelmaker is struggling to whether a drop in prices. chief financial officer kirk of said in an interview on bloomberg television at thyssenkrupp may exceed its cost target. they reiterated a 2016 profit objective. renault shares are swinging between gains and losses after the carmaker reported a profit jumped last year. the stock rose as much as 5%. said it looks like a huge loss in russia, where unsold vehicles increased. global news 24 hours a day powered by 2400 journalists around the worl

this is probably one of the unintended consequences for governor kuroda. gain is so strong according to morgan stanley. starting to flag -- intervention concerns. we'll focus on yen and of course, we will also go through deutsche bank coming up next. ♪ we live in a pick and choose world. choose, choose, choose. but at bedtime... ...why settle for this? enter sleep number and the ultimate sleep number event, going on now. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store, right now save 50% on the ultimate limited edition bed. know better sleep with sleep number. >> asian stocks draw. yen hits a 15 month high. european stocks snap a seven-day drop. a vote against the establishment. donald trump and bernie sanders defeat rivals in new hampshire. this is "bloomberg surveillance." we were all over

kuroda ago to meet -- an end to a means?d he is in policy discussions, very consistent. stephen: you think this will spur inflation? what is the ultimate reaction to this? they obviously want banks to lend into the economy, but households are reluctant to spend. >> it is the aim of governor kuroda in introducing negative interest rates. it is the change he poses, the expectation among corporations and people. and households still missing the confidence of the future from their future. they are living under the circumstance of declining whatever falls, depreciating currency, sluggish economic growth, the oecd published last ink japan's economic growth 2016 will be 0.8%. we need to give them the household confidence to establish some confidence among private sector. first, we have to achieve this consolidation on a solid way. then i say we have to raise the potential growth in the japanese economy. now, maybe the estimation is 0.5%.n 0% and we have to make efforts to mobilize policy majors to aim potential closer to japan. ste

kuroda and mr. abe want the yen to be. -- my question would have been -- it is having an impact on currency. it is not having an impact on the yen, but for the rest of the world there was a race to the bottom. central-bank policy is working on currencies, and that is working on the real economy, is it not? gary: absolutely. almost every country's devaluing against the dollar. you have the eurozone and the bank of japan. they are trashing their currencies, saying basically do not have strong domestic growth, so they say how can we boost economies. they will try to do it with exports and cheaper currencies. you have the other currencies, the loonie, the aussie -- and including china, we are not going to be left in the dust. we are going to devalue, too. tom: let's bring in chris verrone. the cacophony of the shilling go toics, does it all confusing economic analysis, or is there clarity in your work? think there is clarity right now. especially in the last couple of weeks. what should have been a risk-on move has not been. t

kuroda cannot get the eyyen lower. that's the message for central banking today.ine: he's certainly trying his best but it seems the tide is against governor kuroda when it comes to the yen. for more on deutsche bank, let's bring in our european finance managing editor. shares have been punished but deutsche bank seems to stand out. are there many more concerns on deutsche bank than other banks? we'll get back there in a couple of minutes because i think we are having technical issues. now, let's talk about brexit. brexit is one of the main things we have been talking on the program. we had a poll over the last couple of days. showing the 56% of the people they pulled want to leave the e.u. the italian prime minister renzi says he expects an anti-berexit deal to be reached at next week's summit. sir, thank you so much for joining us. extremely emotional. we have not really heard the campaign for or against yet. the battle lines have not come out. are you concerned we are going to the poll to quickly? if it is the summer and we have not heard the campaigns yet, tha

kuroda one to do. brazilian real on a tear. that is our forex report today. rosenberg,david jerome schneider from pimco as well. this of the chart you are living. the redline line is cpi inflation. the white line is service sector. david rosenberg, you call for this. service sector inflation is on a tear, isn't it? just theat line is level, but if you look at the year-over-year trends, it is running close to 3%. everybody has got this deflationary mindset because you cannot really see services, right? whether it is entertainment, health care, rent -- you cannot see it. but you go to your bloomberg machine, oh, well, you can see the price of cocoa, copper, it,e, you can see it, feel touch it, and all of these commodity prices are going down, celebrity has a deflationary view. but remember, the u.s. economy is dominated by services. vonnie: but jerome, it is the fed's job to look at what to react to, right? jerome: sure, and what they will look at his job creation, wage inflation, and while the month-to-month indicators might have been flat last month, the year

kuroda mustrroded -- be doing this everyone. to: a japanese 10-year about go negative. i think he is not looking at the numbers this morning. jonathan: first friday of the month and you know what that means. u.s. payrolls david are first gauge on the strength of the market in 2016 with the near-term outlook growing increasingly uncertain. the january jobs report is bound to be closely watched. cleveland fed president said it would not surprise her if the pace of job creation slowed. >> i continue to expect that growth this year will be sufficient to generate further improvement in labor markets. i would not be surprised if the pace slowed somewhat, but the gains should be strong enough to put additional downward pressure on the on rate. -- the unemployment rate. let's bring in a guess, who helps manage over one billion pounds of assets. it has been quite a week. it has been a week dominated by the dollar and this pricing out of the fed making any significant move this week. event orust a single something that will ripple through the rest of the year? >> it could be a co

that is very concerning to the boj and governor kuroda. he needs to see japanese consumer spending.re not, we're not want to get the increases we need for inflation. and not the increases in economic activity. we did see some positive signs. there was resilience in business spending. guy: if the boj or to do something, and given the concern surrounding the consumer, what form will likely take? -- what form will it likely take? they buy a great deal of government bonds. the by exchange traded funds, real estate funds. they have a negative rate policy now. governor kuroda says he will be creative when it comes to policy it he is happy to surprise markets to come up with something new that we have not seen before. we really can't see limits to what he is going to do. he said he will do whatever it takes to stir inflation. guy: given what happened was the negative rate surprise, do you think the fact that the yen strengthened, that there will not be the top of the toolbox, as it were? lower.it could go the bank indicated that when it put out the statement on january 29. that is possible

aso is accompanied by bank of japan governor kuroda. he will work hard to implement the policy to the other delegates. >>> a senior commentator joins us in the studio for more on this subject. he's been covering international finance for 20 years. so the meeting comes at a time of a lot of global turbulence. what do you think will be the focus? >> there will be three main topics. one, the decline in crude oil prices. two, u.s. monetary policy. the federal reserve's decision to raise key interest rates has triggered a natural advance from emerging economies. some experts are warning this development could even tip off another economic crisis. and the international monetary fund has asked the g-20 to create a framework to provide emergency financial aid to these countries if oil producers and emerging economies get into serious trouble. >> you said three. what would be the third focus? >> well, china's throw down is definitely a focal point of this meeting. its currency has been depreciating, and it's been causing volatility in the market

that kuroda pot is fading fast. we see the bulk of the selling in the asian indices concentrated in north asia. the nikkei down by 3.2% we'll call it at the settlement. a number of negative drags here. the earnings haven't been too good. the brokerages and steel makers were among the decliners. banks are still under pressure as well. we saw broadly risk aversion permeating the asian markets, so we saw some inflows into the relative safety of the japanese yen. stronger yen puts pressure on the exports and broader market as well. soothing words from mr. kuroda today. reiteration that he'll do everything it takes to get to that 2% inflation mark. the market shrugging that one off. he talked about the services sector at six-month highs from the forecast. the market shrugging that off as well. oil down, so that's hitting some of the index heavy weights. but the blue chip csi shanghai composite coming off the worst levels of the day. the theme still seems to be underlying sentiment remaining fragile, and oil is at the cen

. >> kuroda says the central bank will continue to deliver sufficient and flexible easing measures to economy in the aim to achieve its 2% inflation target. >>> checking the markets, tokyo stocks ended higher, that's after the broader topix index had its best weekly performance in six weeks last week. we go to the tokyo stock exchange reporter. >> reporter: when you take a look at major exporters they were quite sluggish. this means investors are still worried about the global economy. although those stocks ended the day higher, trading was choppy throughout the day. the nikkei closed up at 16,111. and topix at 1,300. take a look at the dollar-yen pair. there was a breather taken during tokyo trading hours, which should be good news for exporters. tech and auto sectors were quite sluggish with toyota and sony ended lower. suntory rose 5%. investors were busy cherry picking stocks that were less vulnerable to global fluctuations. >>> analysts set up over a rate cut in india are diminishing. we also saw gains in the hong kong dollar and stocks in china but there is a wait-and-see stance

in march 2013 kuroda took over as governor of bank of japan and launched a massive credit-easing program. rates tumbled to 0.315%, a record low at the time. late last month the bank's policymakers did something they've never done before -- they introduced a negative interest rate policy. that sent long-term rates plummeting to 0.09% on the same day. and on tuesday for the first time ever, the benchmark rate dipped below 0%. >>> the yield on the ten-year jgbs serves as a benchmark on borrowing costs. three of japan's banks and a post bank lowered their interest rates on deposits this week. major banks have already trimmed ten-year motor raj rates to their lowest levels ever. >> translator: negative interest rates are unlikely to be applied to personal bank accounts. >> but some analysts say if boj expands its negative interest rate policy commercial banks may have to respond. >>> nhk world's kyoko fujita has been following the marks and looks at some of the causes. >> reporter: the confusion in the japanese market on tuesday actually started from concerns overseas. the main concern, the u

we know that governor kuroda at a meeting today. will they want additional firepower to deal with the currency? three years of monetary stimulus in the nation, all riddling for the asian pacific today. you see the regional benchmark declining, as well. mixed performance with industry groups, almost all of them declining. utilities barely getting again as we look across the broad market. china remains, as you know, reopening on monday. there is some speculation and suggestion that japan and korea bearing the brunt of the market volatility today. with china unable to ease or perhaps absorb some of the pressure. take a look at some of the movers we have been following the across the region today. energy shares in hong kong and elsewhere, as we take a look at some of the big mining names. australia andng hong kong doing quite well, new crest mining -- a bit of pressure in the city session. let us take a look at the others, so this retracement others is upward come a continuing to have a list on oil-related stocks. these oil majors in ho

manus: and the bank of japan's governor kuroda stunned the markets. none of the markets returned the favor. is now stronger, prompting the question if they will have to go more negative? a source told bloomberg there is no limit to how low it will go. >> the bank of japan has signaled that it has many options in its armory. it could even lower rates further to -1%, if absolutely necessary, to achieve 2% inflation. however, i'm sure the current policy is enough to lift japan out of inflation. manus: let us get to our tokyo bureau chief. how likely is a cut to -1%? we have a lot of the bond analysts who have it right, talking about the bond market. where are the rate analysts in terms of the view? how real is 1% in probability? >> share, so we have to remember out kuroda himself has come and said he is definitely willing to do more. he has really pushed against this narrative that the boj is running out of options. it is certainly possible. you just have to remember the trade-offs get bigger and bigger, and the costs get bigger as you go more negative.

we'll be very interesting over the next months to see where kuroda goes.tephen: generally you have high confidence in japan? >> we think japan is a great place to do business. highly talented people. we are confident about our business here. we have many more exclusive interviews here. lots more coming up. angie: thanks for that trading coming up, gaining support -- the tech world backs apple as its fight with the u.s. government over privacy intensifies. we'll hear from a top executive at google why the issue needs more debate. ♪ the fbi wants apple to assist it in overcoming security measures on that iphone so he can recover information from the handset of a dead terrorist. apple argues the move sets a dangerous precedent for consumer privacy. google has also cited with apple in its fight against the court order. the company's senior vice president says the issue of privacy versus law enforcement needs more debate. >> we focus on building secure .roducts if requested or demanded by agencies, of course based on proper legal process, we will make informati

kuroda are manning the helm.d carolina crashed and burned. payton gets the job done. good morning, everyone. this is "bloomberg surveillance ," live from new york. i'm tom keene. with me, france in the quad. michael mckee -- francine lacqua law. michael mckee is not with me. michael mckee is resting from the denver broncos hangover. so we are mckeeless. francine: he is missed and is probably missing this market rout. it opened in europe about four hours ago and we are trying to get to the bottom of it. all the psychology and the ouriment we talked about probably coming to a front. tom: i like how you focus european banks seeming to be unusually fragile today. we need bloomberg first word news. she plays defense like the broncos, vonnie quinn. vonnie: the u.n. security council is promising to retaliate against north korea for launching a long-range rocket. it carried a satellite into orbit. the u.s. census launches are a for been test. there may be new economic sanctions. german chancellor angela merkel is headed

janet yellen, mario draghi, kuroda, plan b. and buy something nice.ard the gory 14, valentine's day. this is bloomberg surveillance, live from our world headquarters in new york. lincoln's birthday. i am tom keene. with me, guy johnson. as you said moments ago, draghi speaks in brussels monday. guy: he does. the bankers are running out of options. what is he going to say to politicians? after all of the stories that have come out of the ecb, the big story, what is he going to do now? it ain't working, boys and girls. we have a blistering story from carl weinberg from high frequency economics. he is scathing in what he sees from world leaders. right now, a scathing first word news. vonnie: the fighting in syria could stop within a week. diplomats meeting in munich agreed on the target for a cease-fire in the civil war. it is a copper mise between russia and the u.s. john kerry says much more needs to be done to bring lasting peace to syria. coalition forces will still launch attacks against islamic state. humanitarian assistance will go in -- today sto

-- what does kuroda think of this?ob: they have come out and say that's their come out and said they will do whatever it takes. we have seen the downside of a weaker yen. it is a large proportion of your population in japan is reliant on imports. it is food. on au're on a pension fixed income, that is not helping you. we cannot all have a weaker currency. it does not help everyone here is -- does not help everyone. guy: rob carnell. we'll bring you the u.s. jobs data later today. 190,000 jobs is the estimate that we have. 1:30 p.m. figure at u.k. time. david cameron heads to poland. one poll puts the exit option in the lead. bnp coming a big bank to miss estimates. plus, european president obama talking tax proposal for $10 a a chilly reception. we look at his plans next. ♪ guy: 14 minutes past the hour. welcome back. david cameron is in warsaw for talks on a draft deal with the european union. he seeks to overcome hostility to this proposal to cut benefits to easton european in the u.k. -- eastern europeans and the u.

are the likes of mario draghi, haruhiko kuroda, finding it difficult to debase their currencies amidst financial market turbulence and the concerns about the global economy? something we last john micklethwait. -- we will ask john micklethwait. betty: he is standing by and you are standing by t -- and what mark carney's game plan is going forward. lagging inflation is the crux of this issue. >> we are setting the drug on inflation from external factors on the short term would involve to rapid and acceleration in domestic costs, one that would risk being unsustainable and generate undesirable volatility and output and employment. considerations, they are sitting inflation to target at around two years and to keep it there. betty: are the walls closing in 2016?rate hike in john micklethwait joining us. john: i can see that mark has cleverly got behind much mature with possible expectations of what it is. andever i say will be wrong prufrock almost immediately by -- market but it feels like proved wrong almost immediately by the market it seems like 2018 or 2017 blood talking about. as ma

guy: because negative rates don't seem to be working out for kuroda right now. hadn't been negative and they had let them rise to fear market values, it would be a massive disaster and they know it. >> you're making the point that you may criticize our lawsuit see because inflation is moving back to target, but his argument as we would have been a depression if we hadn't done that we done. make the point that negative rates have a disinflation artifact are attached to them and as a result, you whether does you wonder whether or not that particular policy or that particular policy is the right or wrong one. the textbooks is -- the banks are doing with the textbooks say they should do. you get a collapse in asset values which has been the main beneficiary of quantitative easing. you get a collapse in consumer confidence which becomes self for secure it i would hate to be a central banker in this environment. francine: i'm still try to figure out -- if we have a eurozone crisis, a second version, will it be worse or easier? we have new mechanisms in place that shou

kuroda came to the rescue.

kuroda and mr. draghi are finding it difficult to the base their currency.ce between the italian and german 10-year yield. the spread is the highest since july of last year. we have yields rising in the periphery. many are saying, will we have a replay of the 2012 european crisis? we will speak to our guests of that -- about that. betty: what is coming up in the london close? mark: the head of ciba will talk euro and yen. ministeran finance talks to john nichols. he expect the italian debt to decline and there will be a turnaround for the big market. and they fear that is spreading around the european banking industry. our man from bloomberg intelligence will talk about the if there is one. the cost to the economy. the battle of the charts with joe. on how to spend our bonuses these wonderful experiences. how was the super bowl? amazing. not so great for the panthers, but it was amazing for anybody who was there is a spectator. i've something for you and will bring it to you next time. mark: i'm looking forward to it. is it a cup? betty: you'll have to wait.

kuroda came to the rescue. we have started february as we started january, with concerns about china, manufacturing the official gauge fell to a three-year low. we have had six months of declines and oil, need i say? i want to show you some of the big movers today. check out nokia share bright. the big decline are in finland, down 11.4%. sinceing the most september 2012. disputefrom a samsung that fell short of analyst estimates. ,t is not the technology unit it generated 20% of the company's operating profit. betty, really quickly i want to show you the big recliner today. look at luxottica, down 5.8%. you know the company, it makes ray-ban sunglasses. i'm going to ask you a second if you have ever won a pair of ray-ban's. betty: oh yeah. resigned,chairman becoming the third luxottica chief executive to leave in 15 months. many might say that is very unlucky. down by 5.8%. they: i have to keep up cool factor and compete with you so i have one them. , is thatit revoked high pronounce it? i am a revo guy. betty:

we have supportive comments from fedhi, kuroda, the indicating it is watching.egative of news is already priced into the high yields. spreads-out energy, trading at levels close to 700 basis points, indicating it is already priced in over the next five years. could we get there? sure, in an extreme scenario. but we think it is unlikely. alix: different than deutsche bank, which says that three times we have seen a huge credit turn in the cycle. why is this time not back? >> well, '08 will be one of those examples, but this is not '08. we don't have the financial system being the epicenter of the downturn. , but io had telecom hask most of the damage been taken out of the market. the worst-case and there be a self reinforcing negative cycle, central banks don't do enough, market still believe they can do spread the blowout. but i think the central banks with the dollar rate, i think it's a reasonable expectation that high-yield's will rally back. scarlet: spread the i want to go what you said -- the risks of but youn has increased, don't believe he will take inte

bank of japan's negative interest rate could fall to as low as -1%, according to an ally of haruhiko kuroda there is no floor for negative rates and its stimulus could still be expanded as needed. the bank of japan has signaled that it has many options in its armory. you could even lower rates further, to -1% of absolutely necessary, to achieve 2% inflation. however i'm sure the current policy is enough to lift japan out of inflation. nejra: the euro strengthened the dollar this morning as mario draghi says global pressure is pushing it down. the ecb will review and may boost its stimulus in march as goal ofslumped to a below 2%. global news, 24 hours a day. from the bloomberg first word desk, i nejra cehic. guy: thank you. nejrea bringing us up to speed. let's bring it to mark barton. index against its global peers -- the dollar sank by 1.7%. this is the bloomberg dollar spot index year to date, falling to its lowest level since december. $esterday's 1.7# wiping ou% wiping out its yearly gains. it expanded at the lowest level since 2014. the odds of even one rate hike in 2016 is now below

kuroda was in parliament all morning talking about how he is ready to employ more stimulus if it is necessarythat he will not hesitate. i think those are pretty strong comments. i think more action is definitely possible. there are some economists already focusing -- forecasting that we will get more in march. >> the boj has completely lost control. banks have central blanks> generally lost a lot. in reality, people put their money in the mattress. bankinge it out of the system. n aging segment that relies on pensions. kind of for the economic theory breaks down with the practical reality. will have more on deutsche bank a little later, how it rallied from tuesday's plangent how it got the whole world talking about cocos. then company news from tech to media to beer. ♪ david: let's continue our review with some business activity. sunda patch i is getting a big payday, very big. he is poised to become one of the highest-paid chief executives after the parent company offered him restricted stock. >> that is an awfully large restricted stock grant. any upside was really something shareholders wo

positively -- you had the interview with us to kuroda. bank stocks had briefed areening of the yen.n they going to move up that 10 basis point curve? -- the one bank stocks boj is behind the curve. the issue is who gets to that who has the weakest currency -- who has the weakest currency? francine: does the ecb need to go negative? or is it too dangerous? if you are marriott draghi looking at stirling, banks have lost their mind. all of this effort of the last two years to weaken the euro, that has to be a motivating factor. francine: if you look at japan, this is terrible. much that has to do with yen. the global ramifications of it not, are they as big as a possible brexit? -- i think it means mark is absolutely right. you focus on the ecb itself. look at the impact when they only went 10 basis point in december. the aim is to weaken the euro or at least keep it stable where it is. you can't disappoint the market. has a tendency to increase its expectations. if people a start thinking about -45 and 50 basis points. it disappoints, then the negative reaction of europe. he saw the p

we heard from kuroda. mark: the yield on the 10-year 0.045%, which was a record low.ver yield for a g-7 nation. germany held that title from april last year when its 10-year yield touched 0.049%. japanese yields are negative up to 8 years. this is the one-year chart. the big move, of course, happened on friday when japan implemented its negative interest rate policy. .06.me from about .20% to very quickly, want to show you the interest rate possibility -- probability in the united states. what matters is this number, the u.s. a 50% chance will hike rates this year. how things have changed in the last six weeks. francine: you're absolutely right. how things have changed. can you run this through some of the things we saw in town, because we had some services. they looked pretty good but there was less reason to be optimistic. mark: the concern is optimism among services countries. -- services company because the headline data from market economic showed a slight uptick, which shows the industry is accelerating. what is worrying companies is austerity, is fears of brexi

governor kuroda was in parliament all morning, talking about how he is ready to employ more stimulus.it is necessary, that he will not hesitate. i think those are pretty strong comments. i think more action is definitely possible. there are some economists already forecasting that we will get more in march. >> look at japan. like the bojit is has completely lost control. >> i think central banks have generally lost a lot. in reality, people put their money in the mattress. they take it out of the banking system. it doesn't make them go out and spend. , where you in japan have an aging segment that relies on pensions. it is kind of for the economic theory breaks down with the practical reality. david: we will have more on deutsche bank a little later, how it rallied from tuesday's plunge, and how it got the whole world talking about cocos. then company news from tech to media to beer. ♪ ♪ david: welcome back to "bloomberg best." i've did a girl. let's continue our weekly review with some business activity. -- i am david gura. let's continue our weekly review with some business activity

mark: do you think kuroda is done?look at the reaction, it has actually risen since last friday. no doubt, he will be happy with that. surely, he is not done. >> probably not. you are absently right. i think he and everybody should learn a lesson from that. he made it sound like the goal was the exchange rate and the fact that they went from announcing one week we're not going to do negative rates to consciously surprising the market next week. i think it was a tactical error. a huge factor of what they and their regime have done. it was a tactical error in the fact that the young when up anyway is good proof why you don't try to day to day pop if you are a central banker, to a manage -- to manage the exchange rate. you have a good the fundamental's record i think they may indeed do more. it may be on the quantitative easing side and the purchase of assets. non-jgb assets. mark: good i quickly squeeze -- i'm going to be in trouble, but it is worth it. we have to hear your view on the bank of england. we have the quarte

the pboc with negative rates, 27% of respondents in a survey say negative rates will reach thenor kuroda feeble inflation. the volatility is succeeding in the euro area. a $9 billion fund manager made a mistake about the outlook for markets. 99% in the last -- has most of his fund in cash. he said he had no immediate plans to buy shares. donald trump has described pope ," afteras "disgraceful -- not bridges is not christian. republican president joe -- presidential front runner once a wall along the mexican border to battle immigration. global news, 24 hours and a, powered by 2400 journalists around the world. guy? guy: we are 28 minutes to go until the european open. how are we going to open? lenny breaky -- limited to the fair value -- let me take you to the fair value calculation. looks a little negative. london looks like it is going to open flat. after the week we have had, unsurprising that people are lightening up their positions toward the end of the week. the portfolios taking the profit off -- some of the other assets worth watching. brent is trading down. we are down about 1%.

kuroda has made that abundantly clear, we're moving from tightening to easing. gold wants to go higher and today was a nice correction that you needed. >> all right. the dollar. higher or lower? >> depends on oil and which currency. probably lower against the kane and the aussie and higher against the euro and japanese yen so it's no longer just a -- a one-sided bet. the bet i think >> how about the dixie. let's just do dixie, keep it simple. >> quietly higher hand not dramatically so because so much of the dixie is comprised of the canadian dollar. >> and how about this opec, this production freeze i should say, dennis, yeah, i know. apparently that was what people thought in the markets as well. was that sort of the last great hope for oil and it happened to be something that nobody cared about in the end? >> that was the last great hope for oil, a great disappointment. anyone who thought there would be talk of a production cut had to understand that the one thing that you can know about opec is they cheat. they cheat on everything, even if they had announced

if you look at what is areening, kuroda and draghi both making it clear that they are prepared to dohas already done it and equity markets are starting to stabilize, looking for good news. that seems to be what the markets are looking for. what we would really like is more stimulus. >> and at some point bad news is bad news. mario draghi speaking in the european parliament today, debating the annual report. we will bring you the headlines. that is it from richard jones, guy johnson, and myself. best of luck for the rest of your day. ♪ ♪ bend me shape me, any way you want me as long as you love me, it's alright bend me shape me, any way you want me you've got the power, to turn on the light shape the best sleep of your life. sleep number beds with sleepiq technology adjust any way you want it. the bed that moves you. only at a sleep number store. >> failing factories. china's pmi signals its six straight month of deterioration. february's long wait. the shortest month may prove the longest as investors navigate world markets. the battle for iowa. pulls open for clinton and -- polls op

we saw the amount of stimulus unleashed by kuroda. we will look at the number, 112.arly concerns. riksbank, we have it moving ahead at 8.9. look at what is happening on our yields. risk aversion driving what is going -- what is on the periphery. the portuguese hanging on yields. we have not seen at this low in year. 1.67%. the risk aversion, a concern for a global recession, is that going to become a reality? let's have a look at some of the stocks. -- that is what happens when you miss your numbers and there is so much volatility in the market. it missed, they have to charge 400 million euros. the difficulty of it meeting this year's target of amid those headwinds. 3%.l down .10%.-- total down higher gasoline lubricant sales and refining helps them overall, down as the market six the work. a deed manages to outperform the market -- adidas manages to outperform the market. sales are going to be high to the tune of double-digit growth. tyco caroline, thank you. -- guy: caroline, thank you. asia back, hong kong back. >> it is due to multiple concerned that the channel

. >> neither was kuroda.of shocked the market. >> so they'll just follow suit and do something that weakens the currency? >> well, what's on the side of the united states is we have a completely different financial system infrastructure here. we have a huge money market fund industry you can't just willy nilly put out of business. it's not as practical as it might be in other countries. i think it was a little easier to execute in some of the european countries. >> i want to switch to oil because you're from dallas. you have a front row seat to some of the carnage that this oil drop has done to our economy. does the very tight correlation between oil and stocks, which we're seeing again this morning, make sense to you? >> absolutely it does. obviously houston is one of the main victims of this. a lot of the private equity money, for example, came out of places like dallas. you can drive around into the high-end real estate areas, and it's very anecdotal in nature. you see for sale signs popping up everywhere.

. >> we've been focused so much on mario draghi and the ecb, then kuroda, the boj.s about fed policy. certainly a huge focus for a lot of traders. >> we have some corporate news for you to watch today. genworth financial will stop selling traditional life and fixed annuities as part of its cost-cutting efforts. deckers outdoor reporting lower than expected earnings and plans to slash costs. it lowered its guidance for the current quarter. state street nearing a deal to acquire general electric's asset management business. >> big stories there. here's another one to watch as well. toyota reporting a 5% fall in operating profits last quarter. that missed the mark for an i analysts. shares down by about 1% in trading. >> well, besides the jobs report, there's sure to be one big thing everyone is talking about at the office today. that would be football. millions will tune in to see super bowl 50. the biggest rivalry may be between companies. landon dowdy joining us with more on the money story in costume today. >> hey, sara. that's right. good morning. it is the one da

as the boj and governor kuroda highlights, underlying inflation, stripping out fresh food and energy, is at 1.3% and it's been drifting higher. there is evidence there of underlying inflation picking up. more than anything, it was probably to try and protect the credibility of the boj that they took these steps. hopefully the international conditions later this year will become more conducive to helping the boj in its attempts. >> so we have denmark. we've got sweden. we've got the eu. we have got japan. all with negative rates. we've got market turmoil still. any given day, you have oil prices doing a 7% move up or down. plus all the other worries. how does all of that sit together with actual trade and what we're seeing in the yen? for example, the move lower recently we saw on the dollar-yen. is a move like that sustainable? do we expect more volatility from the safe haven yen trade? >> it's about will this step from the boj encourage greater capital outflows from japan. i think without a convincing story on lifting inflation expectations, which doesn't really seem to be there, it'