, i tend to agree with governor corrod kuroda.eventually have some effects, but as you have just shortit has not in the term had a major impact, but we have to wait. rishaad: how long do we wait for? we have this 2% inflation target, which seems highly it elusive. yeah, 2% inflation target is really difficult to achieve. likeuld achieve something 1%, but as long as 2% is the they could continue to ease monetary policy. he is a good friend of mine, but i think he himself does not believe that he could have 2% inflation rate. it is a target, but as long as he canrget is wrong, continue to ease monetary policy. that is his intention i think. rishaad: some commentators have said why have a target in the first place. are almosts that you putting yourself into a corner by having one, so if he was to abandon it, would that be an admission of failure? think it is not unlikely that he will abandon the 2% target sometime in the future. he knows that it is very difficult to achieve it. tothinks it is not necessary reach the 2% target. rishaa

kuroda and the team to really scale up and expand the --. as for now the big issue is about intervention and yen from appreciation. are we going to see it especially when japanese authorities is on the watch list and some other stuff. >> thank you sri. moving from the bank of japan to another. and the fed brexit fears played a part by the fed to delay hiking rates in their meeting yesterday. suggestion is there could be spillover to the u.s. economy but dot plots suggested wed could see two hikes this year. the fed chair calling this the new normal. listen to what she had to say. >> what you see a downward shift in that assessment over time the sense that maybe more of what's causing this neutral rate to be low are factors that are not going to be rapidly disappearing but will be part of the new normal. now you still see an assessment that that neutral rate will move up somewhat. but it has been coming down. and i think it continues to be marked lower. and it is highly uncertain. >> now just in the last half an hour we've heard from the swis

when it comes to the boj, there is a lot of criticism that governor kuroda likes to surprise.at a fair reputation and hurting the boj? >> i think it is a little unfair. under governor kuroda is a different thank. -- different bank. i think the message is pretty clear. he believes that monetary policy can end deflation and attain 2% inflation. he is determined to do it and has policies in place to do so. it is much clearer now than it used to be. >> we did see the yen rally whereto around the level corporate's are doing a lot of hedging, 105. we saw the perverse reaction in the market to the introduction of negative rates with the strengthening of the yen. if governor kuroda is worried about exchange rates, what are his options to get that going in the right direction? >> as you said, the negative interest rate policy has a very effecte, predictable domestically, flattening the 10 yield curve, but had an unexpected effect on the exchange rate. what you would normally expect that if the bank of japan were to do something more, they would push the rate lower. there may be some re

kuroda mentioned temperature brexit risk. in switzerland they mentioned the brexit risk.gnal they are talking about potentially coroneted coordinated action as a response? >> i wouldn't rule it out.ordin as a response? >> i wouldn't rule it out. the bank of england could call in its friends to intervene on behalf as well. >> coordinated central bank, currency intervention. >> well really coordinated intervention where the federal reserve may be on their own book. that would be more of a systemic global risk which i don't foresee. but i think central banks on behalf of the bank of england is not nearly as farfetched. >> alan ruskin of deutsche bank. >> something to ponder. coordinated global -- >> look at the smile. look at the -- >> i don't know. something we don't not. >> thanks so much for joining us. "squawk box" is coming next. have a very good morning. ♪ ♪ show me movies with romance. show me more like this. show me "previously watched." what's recommended for me. x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. >>> break

kuroda has been trying to loosen further. it is not going to do anything around the globe -- around the growth inflation debate. bookhing happens to the just to the growth story this lower we're in for longer world. i look at this year's performances of assets, bonds have done fantastically well. bonds -- assets have flattened. caroline: that theme is being emulated. want to bring if you were headlines coming from governor kuroda. they will add stimulus is needed . still see unstable moves in the markets. as governor yellen did, giving speak to the fact that they are looking outside of their own economies. the bond patches have affected the market so far. the 30 oh yields, -- -- happening over in russia. the economic forum getting underway today. russia's biggest investment event in this year being overshadowed by recession, international sanctions and the plans of oil prices. with a week until the referendum, the possibility of that u.k. exit from the eu is possible. ryan: good morning caroline. exactly is it a good place to

the boj does not -- what will kuroda do next? the boj does nothing. sovereign rating says we have reached the lower point with where we are with negative rates from japan and possibly from europe. let's get out to haslinda. good day. haslinda: hey manus, the yen jumped for a 20 month high and japanese stocks extend losses after the bank of japan refrain from extending a monetary stimulus. this comes as the -- the unpopular negative rate policy ahead of elections next month. the outlook for global markets has given reason for paul's. --given reason for pause. that.ers can follow the desk tagged the government's -- michael gold, one of the out campaign leaders has criticized the austerity budget that the remain camp says would be necessary to shore up public finances if the u.k. vote to leaves. the plans may offer is fighting a growing rebellion -- line-up to reject the hike and cut. firepoweras unlimited to ward off any threats if britain votes to leave the eu. copenhagen.him in >> of course there will be volatility in the currency market. incan expect

saying that governor kuroda had called him and they had a discussion on what to do.estion is what more can they do? brexit the latest volatility, they were struggling as it is to get more and more out of the stimulus they were putting through, so i guess they can cut rates even further, more etf's. i guess that's not more likely giving the events of the past couple of days. thank you so much. strategy is further plagued with uncertainty amid a deepening political crisis. prime minister david cameron will address parliament today since resigning on friday, while opposition cabinet members quit in an attempted coup against jeremy corbyn. this is chaos. is absolute chaos. you have a prime minister who step down. no clear path for the successor. labourosition party in turmoil, with calls for jeremy corbyn to resign, and a firing as well. going to be at the table deciding how the u.k. is going to take his negotiations with the eu ford once they are triggered -- forward once they are triggered. u.k. invokeshe article 50, which would start the negotiations with the eu, so t

the japan officials wrapping up the meeting between abe tyro, as well as kuroda.ot doing march to markets in turmeric again, but stock getting a lift hundred 60 points on the nikkei. australia seeing good gains in buying, of 9/10 of 1%. oil back in his rally today. we will continue to watch that. joining us from melbourne is. chris weston -- is chris weston. got this rally, has changed much in the last 24 hours that would suggest that it has legs? chris: not a lot, not that will change and radically alter the sentiment. there has been talk that we are going to see this capital injection into the italian banks. that may help a very beaten up subset, sector should we say. there is a lot of focus on when article 50 will be enacted. that relies on the conservative government having some type of leadership involved, and some strength within the party. the shadow party is in all sorts of this at the moment. for them to interact on article 50, they need a government. they need some certainty on what the future might look like before they do that. the fact that they are g

also attending were finance minister taro aso and boj governor kuroda. thatat they're united in doing l they can to promote stability. >> translator: as the chair of the g7 meetings, japan will exert leadership in addressing risk and help establish a mid and long-term growth path. >> moved to closely monitor and take necessary measures. he urged the central bank governor to supply sufficient funds to financial institutions to help japanese firms in britain and smaller companies at home. >>> it's been ten years since the last robot walked out of sony's factory. sony is ready to re-enter robotics. they announced a progress report for the firm's three-year management plan. he announced plans to establish a fund of more than $97 million next month for the development of new businesses.. these would include robots and artificial intelligence. >> translator: now is the time to accelerate our efforts to take on new challenges for sony's growth. >> managers have lowered their sales targets for the semiconductor business including image sensors for smartphones. t

governor kuroda is giving a speech later on.xpect them to say anything new about the economy? we are waiting for the government's reform agenda in the autumn, aren't we? >> yes, that's right. governor kuroda will be speaking this afternoon at one of the most prestigious colleges in japan. we expect him to speak broadly about monetary policy, about how the japanese economy is going. the level of detail he goes into, we are unsure at the moment. he spoke at length last week when the bank hit the interest rate policy -- cap the interest rate policy unchanged. we will have the boj press corps following him, and we will be watching up for any comments as to brexit, as to how the yen is going, and how he sees monetary policy going. anna: sorry about thatanna:, brett miller joining us from japan. let's get to larry. what did you make of this latest production from mr. yen? you've got a chart that shows where the currency has been, the currency heading for an annual is the the boj -- gain boj refrains from expansion. where do you expect

the orthodox of kuroda? the orthodox of rocky? -- orthodox of draghi? geoffrey: i don't think anyone knows right now it just right now. -- right now. tom: they are challenging something to do they know what they are challenging? geoffrey: i think he is challenging the notion that growth is what we thought it would be. productivity is still strong. that.mponents leading to they should be challenged. we are in a new political environment. francine: this something we see in research, once in a while it if your data dependent, you cannot forecast. you cannot have any proper guidance. thatrey: it is interesting carney's successor at the bank of canada tour up everything. he says introduce more volatility. you are back loading volatility. tom: you're such a student of all of this. hour.s my mmr for next with the honor of geoffrey yu here, we're going to try to early. about every six months he writes forward on one fish theory. -- i amjust an aging just an aging economists with blood -- with much lest -- the effective prohibition on simple models that sometime

kuroda may be in a situation where he does not have as much influence.m: can toyota get business done with the yen at 1.06? brian: toyota is a very smart company. absolutely. they may pretend otherwise, but absolutely. they have seen worse. it is not a big fear for them. francine: thank you so much for the update. mohamed el-erian spoke to bloombergtv last week and saying banks. nightmare for the stephen gallo, this is a great financial experiment. will japan actually deliver? stephen: there are question marks over that already. i think you already have the answer, the increase in the consumption tax was pushed back -- you have the answer to that. it is inherently difficult for net creditor economies in this environment. if the central bank encourages outflows, you get short-term weakness in your currency, but the minute global markets go into turmoil, a lot of the capital comes back on shore. tom: to keep the newtonian angle going, does japan have the inertial force to reverse the yen to a weaker again -- yen? or do they need a market hope and prayer of

agie: governor kuroda giving speech later today.ing new about the economic out look after the boj did not do anything last week? to a bunch ofing the country's best and brightest young prospects, smart, ambitious people, so i expect he will be up he today -- upbeat today. risks, some of the brexit are now diminishing, but we will be looking at those results early in the morning friday, and differs a reason the u.k. winds up pulling out of the eu, then i think you could expect the boj to be in contact with its counterparts around the world, and anything could happen, any kind of coordinated action or message, so we are really focused on friday at this point for the bank of japan. angie: today, we are seeing pickup for japanese equities akeningto the yen, we slightly. could we see the ministry of finance intervene if it starts weakening again? >> you never say never with japan. japan goes its own way in terms of intervention and verbal intervention. having said that, with brexit still undecided, it would be considered bad form for jap

as more risk comes on the table, what can governor kuroda due to start -- stop this?early there was a huge amount of criticism. a question mark over whether negative deposit rates work. you have seen more increased volatility, not necessarily currency weakness. francine: i was always told if you structure it right like they did in japan, they should limit the -- so how much a psychological? simon: it is about not passing it on to retail because that politically is so sensitive. it is highly sensitive on the global stage. i think you have to come back to qe. the problem with qe is they are already so into the jgb mark you start to get questions of liquidity. topic come back to this time and time again, helicopter money. i believe mr. kuroda said it would not be allowable but maybe there is a way we could change their initiative of the jgb or hold them to maturity. the question is, can they do something more extreme on that particular front? simon, help me out and help chair yellen out. i know she watches us early in the morning. are we doing something kind of like nega

kuroda is faror from his inflation target of 2%, even after three years of unprecedented action. for the first time, showing the world what $5 billion buys you in the theme park game. the resort goes up against homegrown wanda city, which launched last month. that is it for "trending business". join angie next. ♪ angie: it is the middle of the asian trading day. we are alive in hong kong and this is "asia edge." i am angie lau. china's economy studied the last month even have -- even as investments suggest the rebalancing is working. the group is facing a widening investigation into slush funds and investment. pitching a ride, another big factor. terror and hatred, more details emerge about the gunmen who killed 50 people in america's worst ever mass shooting. juliette: keeping an eye on the markets, hong kong and tokyo dragging the region lower on what has been a dreary start to the trading week. investors playing a little bit of game of waiting. there is also the bank of england and brexit concerns. the hang seng down, the most it has fallen in four months. a stronger yen

-- kuroda's term is not up until 2023.t haveou inflation picking up to 2% and do not have the fiscal stimulus kicking in, how do you know where to put the money? ian: one obvious spot is that so-called -- from a risk asset position we usually think of risk on and risk off. they go up together or they go down together. in this kind of environment you actually find a regime shift that the relationship between equities and credit changes. equities can struggle but credit spreads continue to come in and that is a result of the fact that all interest rates want to come down in a soft environment but because the risk-free rate is at zero, it is only the risky that can come in. -- whereyou feel like are we in that circumstance? ian: it happened in japan, is happening in europe, and will happen in the u.s. if this situation persists. jonathan: credit currently in , one thing that has been a key theme of the last year is the impetus of federal --central banks tom: i would argue that qe and low interest rates has spurred spending on

actually it is governor kuroda and the snb that probably have the toughest job today. mr. trichet: i'm not sure i understand exactly the question. question is, if you have to defend yen and the swiss franc, how would you go out it today? all, it is: first of not my responsibility obviously. as far as the swiss franc is concerned, you could see that the bank of switzerland has already intervened and i have confidence in their capacity to do what is necessary. the yen is part of the so-called core currencies of the world. i would expect appropriate discussion at the level of the major central banks of the world in order to have some kind of coordinated move if necessary, not erratic individual move, but coordinated move, as we did after the tsunami. we had a consultation at the ,evel of the major currencies the core of the international monetary system, and we had a message for the markets. i would recommend that if need be. we have to let the dust settle down a little bit. francine: what is your biggest concern of art from monetary policy? can we put the genie back in the b

as things fizzle for governor kuroda in japan.mer trainer says the yen trader to 90 -- a former says the yen go to 90. they are under 93 basis points right now and pointing out, 100 -- one year ago it was 175 basis points. we have nymex crude oil and future still above $50 a barrel. a bull market for commodities. there are some that are not. one of those that is in look at theand to broader u.s. indices, the s&p up 4/10 of a percent and the dow up 4/10 of 1%. the nasdaq has turned back into the green up three points. abigail doolittle is live at the nasdaq. abigail: we are looking at a mainly unchanged nasdaq, fluctuating between small gains and losses. really dragging is the biotech sector down more than 2%. the two biggest drags are the shares of alexi and and biogen. theiron is down after drug sale did not meet the endpoint on a final stage but the ceo said there were positive points to come out of the study, and he is aware of other drugs that were approved despite meeting those endpoints. soer analysts are agreeing this will

japan's double flip-flop after kuroda's about-face on negative rates.e live with our guest from fits rating. ♪ mark: let's get the bloomberg first word news. nejra: the euro area is lackluster growth is said to continue as the economy calls for a strong first quarter performance. it's gauge of new business growth fell to a 16 month low in may. the survey suggests the 19 nation economy will grow .3% this quarter, down from .5%. surged -- thend poisedes for the biggest one-day gain since they were sold. 13%, the is as much as most since the announcement. they also said the chairman and founder plans to go within a year. see an sachs accelerating risk of capital outflows from china as the yuan and a could open a global selloff similar to those seen in january and august. the yuan is poised for a fifth weekly decline. global news 24 hours a day powered by 2400 journalists in more than 150 news bureaus around the world. time thisthe second year, japan's policy makers have performed a you term -- be you turn on the key economic strategy. this week's delay in

this is a circle where governor kuroda decided to going to negative rates.t ensued was the realization from the markets that there are so many side effects. in blue is the 30-year. really, they've just been going under and under in terms of that yield. this is a similar picture to what happened in treasuries. are we in a bubble for bonds in general? i would not call it a bubble. this is something we discussed in our fixed income outlook on friday. in the new normal environment, it is not a bubble. japan's jgb whether might be a bubble. i think the collapsing yields started late last year when the boj extended and cut rates, forcing investors further up the curve. our understanding is that they are now looking at fiscal policy to provide support to the economy. they tightened fiscal policy and the economy is suffering badly. francine: this is a consumption tax you are talking about. vincent: also, they will probably deliver fiscal stimulus on top of that. that is a u-turn on the fiscal side. the tighter fiscal policy, looser monetary policy, was positive for

governor kuroda remains upbeat, including 2% inflation.still have a way to hitting the 2% target, but we have seen positive effects. towas most important for us demonstrate our commitment to achieve the prize stability target. we don't intend to change our commitments going for it. south korea says the north fired two missiles this morning. the midrange missiles were launched near the east coast. it is the latest of fines of international sanctions. the south korean defense ministry says the first launch was a failure, but the second missile flew 400 kilometers. at least two other recent firings also failed. the u.s. says iraq has retaken only a third of falluja four days after the prime minister declared it had been liberated from so-called islamic state forces. washington says iraq controls part of the city, but most of falluja remains competitive. the city has been under militant control for two years. about 50,000 civilians remain trapped inside. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news.

it toor kuroda has to get be launched, and it is not yet launched.y also have physical problems. has thesay mark carney brexit ahead of him. he is in one of the worst possible situations. ifwould be directly touched the people of the u.k. respond that "we want to leave." the ecb has a lot of problems, obviously. we spoke of these problems. janet has to cope with the situation that is difficult. ofin, the normal functioning the economies of the u.s. and others -- if there was not accommodating policies, $4 trillion would not still be in the balance sheet of the fed. it would probably be very bad. you see all of the central bankers in the world, but not one has the most difficult job in the week to come. formercb president, -- ecb president on bloomberg "surveillance" this morning. mark carney has the most difficult job. we are seven minutes away from the close. look at the chart. to the right, this is drilling volatility, this is the expectation in the next month. it has risen for six consecutive weeks. this is a chart going back to 2011. we are at th

at the same time, harry tito kuroda says the central bank can add funds to the market as needed.lobal news, 24 hours a day, powered by 2600 journalists in more than 120 countries. you can find more stores on the bloomberg at top . francine. francine: the pound resumed its decline after rallying from yesterday. in brussels, prime minister david cameron -- to express regret over the results as european leaders says there was no turning back from brexit. cameroninal -- mr. maintains that is a job for his successor. >> britain should seek the closest possible relations as britain leaves the eu. close relations over trade, cooperation, security while britain is leaving the european turn its back not on your. -- on europe. francine: ryan chilcote is an brussels. business with for france. ryan: and frightening the u.k. at the same time. whether the u.k. will be up to maintain its during operations in europe. it is a profitable business. it has been a hub, london has for a while peter last year, the city of london, the financial district one a big victory over the ecb in a court in l

kuroda is giving a speech. will he say athing new about the economy? >> there is certainly always a chance. the governor speaking at one of the most prestigious universities in japan, so we can expect that the content of the speech will be quite broad here it will talk about the economy, monetary policy, but as always, the president will be following the governor and is open to anything on the currency, anything on the outlook to monetary policy. we have brexit coming up at the end of the week, so anything that could touch on that in any way will be up a lot of interest. angie: there is a lot of speculation that if brexit does happen, it will be a safety haven play, driving up the yen. it could hit 100. ,r. yen, eisuke sakakibara expects intervention if it doesn't 100. is that the sentiment there? well, there has been a lot of talk in japan about whether the will be intervention or whether there won't. get so far is that japan is nervous about intervening by itself. will comeg does,, it after the brexit vote, and japan will be arguing for coordinated i

governor kuroda says he will not hesitate to ease further.he swiss national bank has kept interest rates unchanged, conserving animation -- conserving ammunition. it has the potential to come to kate monetary easing desk to complicate monetary easing -- to come to kate monetary easing. the frank reminds -- the frank reminds overly valued. minister saysy there is a need for his country to cooperate in the oil market at the moment. speaking to bloomberg tv, alexander novak also said oil prices averaged $50 a barrel in 2017. we'll bring you highlights later in the program. investigators say they found the main wreckage site of egyptair flight 804 which crashed last month with 66 people. egypt's aviation ministry says the search mission has obtained images of the airbus's wreckage but did not specify the location. global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. find more stories on the bloomberg at top . francine. francine: thank you so much. the federal reserve voted unanimously to lea

kuroda took over in march of 2013, i think the yen-dollar rate was 1.93.t is heading towards that kind of trade at the moment. there iny quickly, is your view a kind of line in the sand? 100, it breaks intervention is possible, but in order to intervene, you have to get an agreement from the united states. i don't think the u.s. would agree with japan to intervene in the markets. if it breaks 100 and heads towards 90, it is possible. rish: it's the former japanese vice finance minister talking to me earlier. let's go to sydney. you heard what he was talking about. 100, is this going to be the crucial level if we actually get there? >> i guess i'm not seeing the intervention risk as so much about levels as much as event risk. i don't think it's a case of the dollar-yen grinding towards 100 and then japan requesting intervention. i think it is far more imminent. it's about, what do we see on friday? we will see the results of the u.k. vote on eu membership, and if there is a vote for exit, i think there is a good chance japan intervenes regardless of the lev

where we see another move from governor kuroda?hrowing his arms in the air and say, i have done all i can? the big question. we will hear from the bank of japan next week. forecasters are expecting further easing in july or september, depending on whether the federal reserve moves and raises rates. it is interesting, we heard from the japanese president and that platform last week, no mention of the bank of japan, where three years ago, the bank of japan was a big part of that campaign, a centerpiece of that campaign, rather, so it is of theg less on the mind japanese president. rishaad: great talking to you there in tokyo are checking on some other stories we are following. a new zealand interest rate cut waning chances, a 40% chance. that's down from 80% a month ago. economists views pretty mixed .ere rising fuel prices, tax increases, and housing boom may give reason to pause. 20th century fox announces an investment in india. spend 5ia division will billion dollars on so far unannounced projects over the next two years. portfol

propping up the markets is indeed the central banks is directed by likes of yellen and draghi and kurodathe meeting this week suggests that may be there. but there's no additional support coming to help the markets anytime soon. and may actually ask for headwinds from currency. >> how about that fantastic nonpayroll numbers we saw wouldn't it make sense for the fed to wait until at least september? >> well, our call is july. obviously, weaker trend. retail sales quite important. investors expecting weaker in may compared to april. all of that may warrant for more patience. and if you ask me, a personal view here, i think the fed would likely be cautious. if anything, however, in the current environment, cautiousness only contributes to that sentiment, relative to an improvement. or in any way address that issue. as regards the payroll. i think what's worrying for investors is the fact that that particular print may be another agency, it's coming on the back of business investment, deteriorating business sentiment. and the labor market is the last market to deter. >> thank you very much f

we should mention investors now look to get bank of japan to see if governor kuroda and company willook to ease monetary policy further. that two-day meeting wrapping up tomorrow. back to you. >> akiko, thank you so much. akiko fujita live from singapore. here in the studio, we're chijod by amanda c.a.r.arrs. good to see you again. >> from just a few minutes ago, there was a big contraction in the new lending numbers, instead of the expectation of 750 billion, it actually came to 10 billion. now, this is quite a significant squeeze. we've got -- some of the local government repaying financing platforms, repaying debt in the bond market but also quite an investment from the market with excess credit q1. and people are now repaying debt. >> so, looking at this do you think that the msci was right in their decision? >> to be honest, the two are unrelated but it does mean that it has more money flowing into chinese equity markets over the long term. and you know, the long term aims to make china actually a more focused economy. more capital-focused economy rather than relying on lending.

the boj meeting coming up next week mounting speculation that this time around kuroda will act.ng down. and european stocks also trading lower. we had very strong german export numbers but despite better than expected headline data out of europe. france down about 1.5% and keep an eye on the ftsi 100. the mining stocks continue to sell off. >> looking at those moves we're seeing in european equities is continental europe outside of the ftsi 100 now waking up to the threat of a brexit? >> seems so. not to mention there are deflationary pressures broadly speaking around the world and this could consistently move down rates to negative yields. is concerning in a variety of ways. whether slower growth globally whether it is the real risk of a brexit and the polls have been relatively close i guess. but if it happens people do believe, at least here that it would leave to the dissolution of the european union ultimately. so a great deal of nervousness. >> if fears rise that a brexit vote will win do you short the euro? >> you would think but the euro has confounded everyone. it's gon

kuroda, how much more money it will bring. think they'll print a lot more, and if you look at the -- trish: you are talking about another round of qe here in the united states? more printing from janet yellen? >> yes. for sure. because both candidates for presidency, they will increase the deficit, meaning fully, and that will require the fed to buy more paper that is issued by the treasury. trish: but before -- before that happens, between, say, now and november, do you anticipate more printing? >> that, i don't know. but i, in the long run, most governments in the western world are, if they had to account like the cooperation, they'd be bankrupt. and so more money printing will become a necessity. trish: well, yeah, we need to get some discipline when it comes to getting our financials in order. >> i think each investor must own some honest currency and quite frankly, when i look around the world, the only honest occurrence see gold, silver, platinum. trish: all right, marc is telling us to buy gold. marc, in all fairness, y

kuroda, was speaking in tokyo saying, they are merely obtaining positive price growth.h. the cycle of robust economic the activity is needed for inflation. now we have the bank of japan governor speaking at the moment. give us a sense of how we see the flight out of the havens. the aussi dollar is also higher. all the out of policymakers globally who are keeping a very keen eye on the brexit debate, the japanese would be the most relieved if the u.k. votes to remain. given the flows we have seen if the vote went the other way, they will be very pleased. dollar-yen that, the has been quite shallow, quite modest. the challenges that are facing willoj in the future perhaps be alleviated somewhat by brexit, but those are deep set concerns. the move from the havens into the higher-yielding currencies are something they will welcome, but let's see if it is sustainable beyond this week. >> i have been told before that we need subtitles. my take away from all of this has been volatility. the jpmorgan index was 2011 high. and this is not a new story this year. in fact, it is a r

kuroda's comments. those comments and the bank of japan directly affect china.the salvaging of all been on mac's. -- abenomics. mike: i think it is quite a big deal for the japanese, for a number of other countries. how is it possible to get away from the zero lower bound? i think in terms of the cyclical influence on china, i'm not sure it is the big one. i think the messaging out of japan and whether they can never get themselves out of this particularly difficult period is the interesting one. i don't think that is necessarily china-related. francine: right. you say china has to do with dollar strength. what happens of chair janet yellen hikes in july? mike: i think if she were to do that, she would want to give us some indication ahead of that. she is not going to say anything until we get the brexit thing out of the way. we do think they want to get rates up this year. hike is a 60% chance of a this year according to the markets. dexcom placet of and is probably the wrong word, but we should all recognize -- there is a bit of -- complacent is probably the w

anna: governor kuroda saying they would not do a after money yesterday.some guests saying we are close to helicopter money, something close already conducted by super pacs around the world. do you see that already in evidence? alexander: there are some signs of my the creeping in places like japan, stealth helicopter money, heading out vouchers. anna: they will not call it that. alexander: they will not. but one of the things i'm interested by, actually the impact that some people are promising, if you are disordered drop money into the bank accounts, that they are promising, what it could look like, one of my concerns is that actually, i think people would end up saving it. you see it in the u.s. they have not spent big savings on oil revenue. they will end up saving it. in what sort of world we end up? alexander: the business after site we are seeing. alex dryden from jpmorgan. we will continue this discussion. b, will talk to the oc next. ♪ >> we lost a great star. she was a great campaign him p with great compassion and a big heart. people are going t

i think kuroda has a very moment.t job at the it is fiscal stimulus. tom: i'm looking at this. much. do a data check. we have markets moving. i love the screen are teams of putting up. you see the 10 year yield well under 150. what do you see on your bloomberg in london? francine: i think we need to spend more time looking at the banks. we will be joined by michael moore. this goes to the heart of the brexit problem. if they need to leave the u.k., it will be costly. you need to factor in the fact that negative interest rates will also hurt them. all of this uncertainty -- i do not know what is legal, possible, or desirable on how to deal with brexit. tom? tom: looking at the data, unicredit under two euros is really shocking for the italian banking system. on the next hour, we will be joined from the energy administration. double be in the 6:00 hour. bloomberg surveillance. ♪ morning, the pound-sterling continues weaker. again, stronger. european banks, a very difficult morning. what really rest you it's very difficult banks? selling forbe plain the chancellor -- finally, u.s.

bank of japan governor kuroda commenting, saying they will examine risks and will not hesitate to takedditional measures to try and reach their 2% inflation rate. that announcement sent the yen sharply higher, which in turn sparked speculation on whether policy makers would try to intervene to halt the currency's rise. it's been on a tear this week. the nikkei fell sharply on the news. it was down 3%. and remember this follows 3.5% earlier in the week. the shanghai was down half a percent. >> we had a boj viewing party last night. you didn't make it. >> you look tired. >> we ordered sushi and got some red bull. just to, you know, full effect. >> you are trending on -- start saying sushi and stuff like that. i don't want to get too stereotypical here. >> well, you know. >> it is a safe zone. >> since when? >> i'm with becky. since when. let's look at the futures, they are indicated lower follows the first five day losing streak since february. >> when did you come one that though? that borders on a shtick for you this morning. >> a stick? >> you told me i wasn't allowed to use yiddish.

if your governor kuroda or mr. you need to do to get the yen to a level you are in trouble? it needs to be straight intervention? george: at this point, given the background circumstances, i expect it is a question of when the boj thinks that market foritions are appropriate intervention to work. it could be here, it could be down at 100, it could he below 100 -- could be below 100. it is a question of waiting. it is going to happen if this keeps going. you take early if there's a vote to leave the eu. this flight to safety will be amplified. we will see greater moves and currency markets, including the yen. francine: if there is a brexit, does the dollar automatically rally? for my opinion, what it's worth, i think that the dollar will be a big buy against the pound in those circumstances. i'm not sure about the yen. could behat the yen stronger than the dollar in the immediate aftermath. tom: it is very asymmetric this morning. you nailed it. i am saying obvious movements like the yen and the swiss franc , but th

boj governor corrode up remains far from -- kuroda mains far from his inflation target of 2%.y for entertainment, shanghai disney throws open its doors, showing china and the world what $5 billion gets you in the theme park game. the resort goes against wanda city, which launched at the end of last month. road ahead after nissan announces it is selling a stake in a company. we are taking a look at the bidders who could step in and take over here on bloomberg. ♪ on what ourck in reporters are watching with training underway in asia. >> i don't think it's close. forecast the first quarter breaks even after posting a full-year loss of $21 million. it's not giving shares any boost at all. it is investing heavily in virtual reality. in may, the shares got a bump up after it announced the release of a new game. game off. >> turn off the playstation. calsonic kansei, the manufacture of car parts. wasearned that nissan potentially selling its stake, 41%, of this company. the stock plunging. wasfinal round of bidding completed on friday, and some have comebidders through, and the news

we heard governor kuroda saying they are doing their utmost to find liquidity. it seems the central bank of said, wet an hour ago, are here and we stand ready. interesting to see what kind of calming words we hear from various local and central banks this morning. and a key question, whether these tanks work together. they have been calling for action because of their concerns about the currency. if they were worried before, they have got to be more worried now. francine: they certainly do. if you look at the havens, if you are this with national bank, because of this money coming into havens, you would be feeling pretty worried. i guess it central banks were to act and act decisively, remember late last night, the feeling was that they would remain, which is why we see this huge swing this morning. manus: thank you very much. let's get reaction from the heart of europe. disbelief is one of the words that could be used. ryan chilcote is in brussels. the belgian pm saying it is difficult for the eu project and calls for a conclave. this is quite a significant ver

for the boj, it would be a relief for prime minister abe and governor kuroda, taking pressure off exportersd not be happy with a big surge in the yen. for the fed, janet yellen said she's watching brexit. it would remove a hurdle to the next rate hike, but all bets are off for now. kathleen, i thought it was interesting when i was a g-7 and brtexit was not even in the draft -- brexit was not even in the draft, and now we could see a response from the g7 nations if there is a brexit vote. president rock cap and will be speaking in new kaplanhe first fomc -- will be speaking in new york, the first fomc president since janet yellen testified to congress. kathleen: he is concerned with longer-term forces holding down the economy, moving cautiously and slowly on interest rates, so one more in the camp waiting to see how this all turns out. the brags -- brexit vote, we will see in a few hours if the volatility we have talked about so much on the show tonight, if it continues here it you will see potentially a statement from the g7 that they will do something in a unified way, not unilaterally. yv

it puts further pressure on janet yellen, mark carney governor kuroda. let's talk about the fed.an you see a rate hike this year or possibly next year? larry: i will say with certainty that we will not see a rate hike in july and we probably will not see a rate hike september. c how thelet us see how the world progresses. there's a modest part of possibility they could do a 25 basis point tightening in september. we will have to wait and see. i actually believe the brexit will lead to more uncertainty. it will lead to modestly slower growth. i am of the opinion that it is highly probable they are not going to do anymore tightening this year. erik: janet yellen and her colleagues at the fomc have faced a lot of criticism over that data dependency point. people argued that the data were there and the fed should've raised interest rates at some point over the course of the first two quarters. now that we have seen the brexit and furthermore the financial market volatility through mid february, can we look back and say they were right to keep the feet on the gas pedal and to keep mon

of change, and the rate of change to go from a 111 handle to a 109 handle certainly moves against kurodand these are brutal moves. the acceleration in trend. some of the moves today and the strong yen maybe the idea of the covering of trades. i get that idea, but the fact of the matter is we are nowhere near where we need to be. jonathan: it confirms probably the worst cap secret -- kept secret in japan, the rate hike in 2019. it is a fiscal stimulus because he is not going to implement it but he clearly has a lot of work to do. what does it mean for viewers around the world and market participants in the united states? it just leads to more uncertainty and that can affect particularly china. adjacencies tose japan really begin to click in within asia. jonathan: the question i would ask, many governments around the world have missed targets. many central banks have missed targets. is japan any different or is this worse? tom: it is an artificial construct compared to most systems. the demographics are totally different. the sense of island nation makes it different, the cultural economic

even kuroda is waiting to see what happens. people are waiting to make big commitments.comes with another inflation forecast. that was the more significant meeting. there was a downward revision there. alix: you definitely see the pound dictating direction in the u.s. this chart has really boggled my mind. the blue line is the pound dollar. the white line is u.s. futures. i never thought i would see that kind of correlation in this market. david: it has replaced oil. it was always oil correlated. jonathan: alix steel, myself jonathan ferro and david westin thank you for joining us. that does it for bloomberg . bloomberg markets is next. ♪ vonnie: from new york, i am vonnie quinn. mark: i am mark barton. ons is "bloomberg markets" bloomberg television. vonnie: we're going to take you from new york to london, to st. petersburg. signaling increasing concerns about the global economy. bond yields from germany to australia also sinking to record lows. mark: one of the major concerns is the market impact of a brexit with seven days to go before the -- great britain votes t