that was the message from governor kuroda. i spoke to him in an interview in washington, dc. >> traditionally, central bankers argue that interest rates can be controlled while long-term are not. in reality, after the lehman major central banks have been directly intervening in the long-term asset market to and friends longtime interest rates and i'm sure they're been successful in reducing long-term interest rates. from our experience with the negative interest rates, we are quite sure that this combination able to control the curve -- control yield curve. don't say that we can completely troll desk completely controlled ten-year interest rates. friends -- we can and and -- and for its and manage around 0%. francine: is it a range? have introduced .ome other majors if necessary, we can make a new long-termap the interest rate to go beyond our target. sure we canite but we have to, introduce the new majors which could avoid an interest rate go beyond the very -- anna: that was governor kuroda speaking to me earlier on this wee

kuroda: it depends on the and -- development.e being, we will maintain this yield curve, but if we are successfully achieving 2% inflation target naturally long-term interest rate will gradually go up. and we would allow that. but for the time being, we keep long-term interest rates around zero, and if necessary, even we rate ofduce target 10-year jgb even lower than 0%. francine: what level? gov. kuroda: it depends on the economic and inflation outlook. at this stage, we will keep make awo points to smooth yield curve. and if necessary, we can reduce both short end and long end of interest rate. but as i said, if we are accessible -- successful in achieving 2% interest rate, then gradually jgb rate would go up. francine: this is what the markets are trying to understand. they are concerned that you may have to sell jgb's to stay at around zero, and if you sell jgb's, that may be perceived as tapering and it may send yen higher. gov. kuroda: we made it quite trillion would basically continue. with this large-scale jgb purchase co

. >> kuroda marked 103 wins during his first 11 years in hiroshima. then he joined the major league's l.a. dodgers and new york yankees. he refused major offers from major league teams to fulfill his promise to return to hiroshima. in july kuroda earned 200 career victories in both japan and the major leagues. he became the first major league pitcher to accomplish the feat. kuroda willl pititch his last f games during the japan series which starts on saturday. >>> japanese film maker and comedian katano is set to receive france's highest award. kitano will be given the legion of honor in paris.

we spoke to governor kuroda. the first circle over there, right on my right, is when abe unveiled the fiscal stimulus. the second is when the bond buying program is extended. since we had negative rates, this is going back. i imagine if you look at the forward slots for the u.s., it would be a similar picture. tom: this is important. peso, the question is, do we get back to this? do we get back to this big middle ground? mark mobius will join us in the next hour. getting back to that is a big deal this morning, the idea of dropping back to it. francine? to benchmark.y it is similar to your chart. we have mexican peso here. -- we charted against the popularity of donald trump. you can see that clearly it is correlated to mr. trump, how he is doing in the polls. a clear impact on the mexican peso. tom: i would emphasize for the global audience, what we are doing in the u.s. is aggregating the polls. we really will not see that for a day or two. kevin cirilli does not need a cold --to know what need a poll to know w

kuroda there from the boj.samsung takes a hit, as they halted reduction of the note 7 phones. manus: and the inflation situation. we have got more with the bank ,f japan governor, mr. kuroda this as he signaled they may have a heavy inflation will -- target until 2018. and a cautious tone on investment. we get the story on bloomberg. ♪ ♪ anus: you are looking at really gorgeous shot, where we have the world energy conference getting underway in istanbul. anna: 6:50 here. and angie lau has the bloomberg business flash. angie: thanks, anna. thanks, manus. u.s. justice department to resolve a years long investigation, continuing according to people familiar with the matter. earlier, the german newspaper reported that the ceo was not able to reach an agreement with doj, and they refused to comment on the article. ofnwhile, the royal family qatar is considering increasing their stake in the german lender as much as 25%. that according to people with knowledge of the matter. and samsung has halted production of its n

kuroda: for central banks.oline: coming up on "bloomberg best," russia, greece, and brazil are looking for economic policies. conversations with the people who make policies. plus, will opec's promising oil deal stick? and we speak with hedge fund manager leon cooperman. about the legal fight of his life with the sec. leon: to convince the jury of my peers that we have done no wrong. i would be shocked if we do not win. caroline: this is bloomberg. ♪ caroline: this is "bloomberg best." i am caroline hyde. visiting the most interesting interviews. financial leaders sat down bloomberg to discuss challenges they seen the national economy. let's start with the bank of russia governor, who spoke exclusively. >> the high real rate in russia, relatively high real rate, is one of the reasons russia is one of the hottest trades at the moment in emerging markets. at what point does this inflow of capital become a risk for the economy? >> we are assessing the trend in capital inflows but it must be said that at the moment

. >> kuroda keeps cool. in an interview, he says they will stay on the stimulus train. >> we have to continue our monetary policy. >> leon cooperman stands firm. he will fight charges no matter what the cost. >> a pledge to forge an oil accord brings optimism and skepticism. >> i think the pressure in saudi arabia in recent months has grown. >> it is a two-way street and not clear-cut. it is a little bit to start -- early to start celebrating an agreement. >> it is all straight ahead on "bloomberg best." hello and welcome. i am caroline hyde. this is "bloomberg best," the weekly review of the most important news analysis from bloomberg television around the world. the week began with oil reports and reports of an agreement that could help the market recover its balance. >> brent touching a one-year high today. the world energy congress getting out of billion in instanbul today. let them your putin considering -- president putin considering slashing oil. reports of an agreement that could help the market reco

caroline: kuroda keeps cool.hen exclusive interview, boj governor says he will stay on the stimulus train. >> we have to continue our monetary policy. willine: leon cooperman fight sec charges. >> in the inside business, information is not a crime. for oil: and a pledge of cord brings optimism and's criticism. >> the pressure in saudi arabia has really grown to do something about the oil market. >> it is a two-way street. startis a little bit to celebrating. caroline: it is all ahead on bloomberg best. ♪ caroline: hello and welcome. i am caroline hyde. this is "bloomberg best," your weekly review of the most important business news, analysis, and interviews from bloomberg television. the week began with oil reports. an agreement that could help the market recover its balance. >> brent near a one-year high. russian president vladimir putin says he is willing to consider freezing or even cutting oil out with cooperation with opec. underscoring they are willing to join and output limit with opec, saying they were ho

. >> kuroda marked 103 wins during his first 11 years in hiroshima. then he joined the major league's l.a. dodgers and new york yankees. he refused major offers from major league teams to fulfill his promise to return to hiroshima. in july kuroda earned 200 career victories in both japan and the major leagues. he became the first major league pitcher to accomplish the feat. kuroda willl pititch his last f games during the japan series which starts on saturday. >>> japanese film maker and comedian katano is set to receive france's highest award. kitano will be given the legion of honor in paris. he will be given the fourth rank of the five-grade award. kitano is being recognized for his work on the art scene. for transforming conventions in acting, television, film, and literature. he says he'll maintain his style and work hard on various projects. napoleon bonaparte founded the award in 1802.. it's givenoo indiduals for their distiuished service of france. kitano is probayest known fofor h films that walk the line between vlelencend comedy. thishihis

. >> kuroda keeps cold in an interview. the boj governor says he will stay on the stimulus train. >> we have to continue our monetary policy. >> for he will fight charges no matter what the cost. >> in the inside business, insight information is not a crime. >> oil accord rings out optimism and skepticism. >> i think the pressure in saudi arabia in recent months has grown. >> it is a two-way street and not clear-cut. it is a little bit to start celebrating an agreement. >> it is straight ahead on "bloomberg best." it is a littlt celebrating an agreement. welcome. i am caroline hyde. this is "bloomberg best," the weekly review of the most

we don't understand what governor kuroda is trying to do, is that fair?cent: this is a change of strategy. it is a risky strategy. for to work, you need expectations to go up. eventually the end will go down and there will be a weak strategy. japan on international conditions. if excitations go down, the rates go up because the real rates are stuck. the and gets stronger. that strategy can backfire very quickly. the market impact both transfer volatility from fx -- from rates to rates. it is a killer but he could create. francine: you are exciting much more volatility? ,incent: yes on the rates side continued jgb's are going to be stuck around 10%. that is going to play the role of the global anchor of bond yields. francine: vincent chaigneau, thank you so much. joined theuan has ranks of an official currency. this is bloomberg. ♪ francine: welcome back to the posts. i am francine lacqua. -- it's debut as it will reserve currency has become a part of the imf special -- this is a highly anticipated model for challenge just for china -- for china. the you w

a great interview she had with -- with general kuroda.eillance. ♪ francine: the tale of the tape. politics get personal. the trunk clinton rematch in the second presidential debate. no deal for deutsche yet. the bank continues negotiations with the u.s. department of justice. of target. governor hirohito kuroda signals that japan may not hit its goal until 2018. good morning, everyone. i am francine lacqua here in london.

kuroda: iister coron think market liquidity in terms andinancing by u.s.and so forth, i think is going to be quite enough but rate of, interest been rising. have there are changes in the u.s. and someone and so forth. on the other hand, if you are bond,ng to regarding the this is a.m. issue that we very much. but as you know, the bank of japan has about one third of j g p. still in the market, so i don't think the market has --, iity regarding the don't think so. >> that was a very illuminating interview. coming up, trump goes on the attack as he faces up with hillary clinton for a second time. aboutl talk to an advisor who he sees going all the way to the white house and the impact. this is bloomberg. ♪ ♪ mr. trump: i did not think i would say this, but i am going to say this. instruct i am going to my attorney general to get a special prosecutor to look into you. there has never been so much lies, so much deception. there is never been as much is that. sec. clinton: when i was your voted toi could -- close loopholes. i tried to close one of them that he

kuroda's term as governor ends on april 8, 2017. he said he boj's mission is to continue to stabilize prices regardless of his time in office. >>> the latest data out of china show the housing market could be overheating again. new home prices last month remain high in 90% of the major cities. this is triggering caution about a potential property bubble. data from the national bureau of statistics show new home prices rose in 63 out of 70 major cities in september compared with the previous month. prices in beijing rised 5% while those in guangzhou were up 3%. new home prices up 30% in beijing. has been easing house loan regulations to deal with the unsold condominiums and mainly in regional cities. the government is also working to curb speculative buying and selling of homes in some urban areas. >>> checking the markets, tokyo stocks snapped five straight days of gains. many investors with profits from the recent rally. and the earthquake in western japan weighed on sentiment. giang nguyen has the details from the tokyo stock exch

kuroda said japan's economy remains on a moderate recovery path with some weakness in production and exports due t to slowdowns i in emerging ececono. hehe said the bank will adjust policy as needed, with an eye on price levels, the financial sector and the state of the economy. but kuroda doeoesn't seemm to on aa hurrrry, h he's apparenently watctching for effecectsrorom t government's fiscal stimulus package. the boj last month shifted policy focus to interest rates after repeatedly failing to meet its deadlines for boosting inflati inflation. >>> the central bank released its quarterly report on economic conditions in the country's nine region, it has upgraded assessment in two of the regions. the report says the kyushu okinawa region is recovering from the strong earth quake in kumamoto with local businesses in operation. the bank raised its assessment saying mitsubishi resumed outfit for many vehicles. but the tokai region was downgraded for the first time in four years. the report said the pace of recovery had slowed, saying consumers are concerned about ththe effects of the st

but kuroda said i don't think monetary policy has reached its limits. reiterating his view that there's more the boj can do to boost economic growth. when asked about europe's financial situation including worries over deutsche bank facing a massive fine from the u.s. department of justice, kuroda said it is necessary to identify the problem quickly and deal with it as soon as possible. he also added that each country's financial system and banking sector is different and needs unique solutions. that's all from the nikkei. back to you. >>> speaking to cnbc, julius bear also weighed in on europe's banking worry. >> i think 2016 we're seeing, again, the different parts of the world have done their homework when it comes to balance sheet repair, this in a macro environment that is now very difficult. we're looking now at the european banking sector under pressure. a pressure of profitability and margin in the negative interest rate environment at a time when the sector is not capitalized enough to withstand some shocks we're experiencing. we're seeing valu

kuroda. shery: no, apparently they didn't.porates have been very reluctant to spend more increased investment, and we are seeing that the spike in the japanese yen in the last session just hit the market, with the nikkei down .1%. right now the japanese yen is holding steady, but analysts say it would see more than global markets -- including the u.s. general election in the short-term. take a look across asia, they look pretty mixed. at least the regional benchmark index is gaining ground after falling to the lowest level in two weeks. the hang seng turned positive after declines earlier in the session, up .2% after falling to a low not seen since august. the shanghai composite fell .2%. we are hearing that authorities are's deking u -- are stepping up, buying insurance products in hong kong, trying to stop them from moving money abroad. also we are seeing a political scandal going on, affecting the market sentiment. and in japan, it's not just about the corporates reporting results, i think more than 200 companies are report

we heard from kuroda telling us things are fine. you are seeing that rise in yields.vernment bond 1.7. that is the critical point for markets when or if we make it just is -- make it to 0% yields. anna: a couple of stories we're been running. let's get to bloomberg first word news. here is david ingles. david: deutsche bank has been indicted for colluding to conceal of the italian lenders losses. this according to an audit commission by german regulators. in addition to the german lender adjusted back in 2013, a part of hundreds of similar deals. it's a spokesman says there is no connection. goldman sachs retirement plan is pulling $300 million from the firm. they informed employees of the decision yesterday. that is according to a person with knowledge. cooperman has been accused of insider trading which he denies. it is the second time this year that goldman has cut ties with the former employee. now the u.k. chancellor, philip hammond, will meet with a wall street executive today. he wants a brexit deal that secures good asset for financial service companies. the c

>> yes, i agree, there's a shift in the strategy since kuroda mentioned the deepening yield curve as a potential positive to be looked at in august. the markets have been moving that way. and yellen's speech on friday fits in with the narrative to push yields higher. well, is it justified? i suppose to answer that, central banks are running out of options. they look to be going back to this idea of pushing forward on the guidance strategy and pushing towards making the markets believe that they can engineer inflation issues, which i must say i'm skeptical about. other things need to take place for that to be credible. in particular, how governments push forward with fiscal policy. if that was pursued over the next 12 to 18 months, it lags. but simply by forward guidance, i'm not that convinced. >> especially in the uk, is it the right kind of inflation that we'ri we'rie looking at? because it's not inflation overshoot because the economy is doing so well, right? >> absolutely. again, it's a little bit different in terms of the boj and the bank of england. the bank of england is sayin

kuroda at a g-8 summit a year or so ago, he felt the clock was ticking on the government's efforts to reform their own balance sheet. that's a slightly different point. again, if he's got concerns about the long-term viability of a government that runs a debt to gdp over 200%, maybe that's something that would weigh on the financial system. any way, japan has raised the low end of its -- did i say japan? sap has raised the low end of its 2016 operating profit in what the company called a strong third quarter, boosted by an increase in software licenses. this even as europe's largest software company reported a 19% slide in net profit. sap, not japan, said it expects full operating profit to be in the range of 6.5 billion to 6.7 billion euros. >>> intercontinental hotels group says the global hotel sector remains compelling despite slowing growth. ihg's revpar rose 1% for the third quarter compared with 2.5% in the previous quarter. ihg said challenging conditions continue to exist in france, turkey and belgium amid recent terror attacks in those countries. >>> volvo is reporting weakn

. >> manus cranny will have top stories from london next ♪ governor kuroda says they will not reduceir bond buying program any time soon. and the second u.s. presidential debate, including donald trump vulgar comments in 2005 and bill clinton's past, while hillary clinton says donald trump is unfit for office. and theresa may is traveling to denmark and the netherlands, as radel globals nerves, and we speak to a

but they say kuroda could inflate the time. giang nguyen reporting. >>> most of the markets across the asia pacific region ended in e the negative. growing bets for a u.s. rate hike by year end dampened some sentiment. hong kong's hang seng index dropped by 0.8%. singapore also down by almost 0.5%. the shanghai composite sl slid 0.25%. the benchmark declined for a third day as many investors were wary that a weaker yuan could cause capital outflow from the country. encouraged investors and pushed the benchmark up by just a fraction. 9,306 into positive territory. >>> it's earning season in the united states and some of the country's biggest i.t. firms have been announcing their numbers. google's parent firm alphabet and amazon both reporting strong growth in sales and profits in the three months to september. alphabet posted $22.5 billion. net income nearly $5 billion. up 27%. they contributed to brisk sales of ads thatt appear on mobilee dedevices. leled by the cloudud computing businessss. sasales jumped 29% yearn yearar. the

what are the bright spots that kuroda can turn to?enry: the labor market data today was a bright spot. the unemployment rate fell back to 3%, which is the lowest level in two decades. economists were saying this morning that the unemployment figures, likely to drop further and japan is nearing full employment at a level at which we might begin to see some significant wage rises. nejra: when is that going to feed into inflation? thank you, henry, joining us from tokyo. manus: easy as abc. i will not sing to you this morning. google talking about the alphabet. this was for the third quarter numbers. mark has little bit more from san francisco. alphabet inc. reported third-quarter earnings on thursday, beating both revenue and profit expectation. the ad business continued to grow and google ceo said the company will invest further in the cloud division. >> scaling up partnerships is a big area of focus. we are establishing a learning group so we can take advantage of working with our cloud customers and make machine learning more accessi

jonathan: you have set down with governor kuroda multiple times.k of japan in 2013 saying he would do what it takes. he is passingense the torch to the government? x absolutely. this you can see with central bankers around the world. if you speak to him, he says this will work. but when you announced negative rates in tramway, he said this would work and it did not. he says this time it is different. you look at what he can do and the challenges of japan. it is clear there is a demographic as structural problem so there is only so much you can do -- he can do. he hopes the population of japan believes in him and therefore gets up the future inflation expectations. the only way to do that is to be searching this will work. if you lose credibility three times, it may be counterproductive. alix: his term is up in 2018. did you get a sense he will stay on or a successor will have the same commitment? >> i spoke to a confident central banker. i asked him five times about inflation. he kept telling me i'm confident this is working, this will work. govern

harry hugo kuroda is speaking haruhiko kuroda is speaking twice. then we hear from san francisco fed president john williams at 7:30 p.m. u.k. time. up on daybreak, macro moves for microsoft. onres in the giant jump up the growing demand for cloud-based software. that story is ahead. the world's biggest advertising , has been on-- wpt a shopping trip. the e.u. plus one. angela merkel says a difficult path on brexit as theresa may makes her summit debut. this is bloomberg. ♪ anna: welcome back. you are looking at a live shot of hong kong, typhoon haima approaching of course. 6:20 in london. let us get to learn big business flash. here is shery ahn. >> senior executives at at&t and time warner have met in recent weeks to discuss various business strategies including a possible merger. that is according to people familiar with the matter. shery: the talks are expected to remain informal. shares in time warner closed up fellarly 5% while at&t almost 2% after the news. representatives for both firms declined to comment. nissan has completed its acquisit

kuroda at the bank of japan. haslinda pansy 2% inflation in one year. longrisk off before, that inflation data came out. anna: we have the fed minutes. 1.74% on the 10 year yield in the treasury market. coming up little bit, despite the minutes were talking a interest rate increase relatively soon. 49.74, downfocus, by 9/10 of 1% on u.s. stockpiles increasing. the oil roadshow moves from is then ball to be enough. and if you like the exchange of views we have between russia and opec members is the 29th of october. a technical exchange in vienna we are told. now, let us get back to manus. manus: london's high court is going to decide when brexit can actually mean brexit. with a legal challenge getting underway in the u.k., a judge will consider whether prime minister theresa may can actually trigger article 50, beginning the formal process of the u.k.' withdrawals from the eu. and this of course would all be without the approval of parliament. anna: for more, our legal affairs correspondent is here. alex dryden from j.p. morgan is still here. patrick, we

haidi: we are getting some information from governor kuroda , saying he will be evaluating the appropriateield curve. curved the ideal yield would change depending on the economy, price conditions, and economic conditions. rishaad: still pretty poor. feel yieldoesn't target ranges necessary. in the meantime, first word news. car crash death in the united states link to t akata airbags. the victim was driving a 2001 honda civic. in 2008,as recalled but the airbag repair was never completed. wasican honda says the car identified at a far higher rupture risk. hanjin selling its stake in the long beach port terminal. the company is negotiating with mediterranean shipping, a partner, and has first right of refusal. hanjin has 54% of long beach. the court hopes to have final bids for hanjin assets next month. the german chancellor says a the u.k. path ahead as negotiates to leave the european union. inresa may's presentation brussels later good foundation to proceed, she said. helps the decision will be reversed, but may set that will not happen. >> the u.k. is leaving the eu, but we will play a

i would say the jury is still kuroda you can see why is saying why they have firepower left. yousef: they are concerned about the rights of protectionism. are they likely to see progress? >> there is something ironic about people being upset about the elites taking on the benefits, and then the elites of the elites talking about this. if you want to see a summary of what the issue is, take a listen to the sound bite. he is the euro group president. >> the biggest challenge is populism. with the imf, which they pointed instability to our economy. while the economy is recovering in europe and that process is continuing, we need to make sure people start to feel the benefits of that. if they don't, they may cast their vote in the wrong direction. it is up to us to make sure we get that result for our electorate. . >> this is the idea when the idea of week when the globalization going in reverse has entered consciousness. speech lastsa may's week. the hard exit concerns that may have contributed to the flash crash in the past. the ongoing saga of donald trump and hillary clinton.

i asked governor kuroda this several times.hey have to accept that the 10 year yield is negative, otherwise the may have to be seen -- they may have to be seen as that they are tapering their asset purchase program. marvin: i cannot obviously speak for the boj itself, but they might guess that if push comes to shove they will do what they can to stabilize the long bond rate as well as they can. it is hard to do, but i think that is what they are attempting to do in order to tilt the yield curve upward by pushing short rates down. i am not sure that is going to work, and that is what they are after. francine: will it work? this is probably the greatest financial experiment of all times, and nothing has gone the way governor kuroda wanted it to go. sri-kumar: it has not worked, and i do not think it will ever work the way it will be conducted. the reason for that is because when the rates go negative, it frightens the heck out of japanese institutions. so rather than weakening the yen, as has been expected by the bank of japan, j

governor kuroda said he would like to overshoot and race inflation expectations.nt that he sees no need to change the short-term and long-term levers of policy. ken's ofd like to see hints about controlling the yield curve. according to the financial times , a lot of supporters on the boe will be happy about that. let's start with the reserve bank of australia, no change expected, well below their inflation target. there are signs that inflation may stabilize. gdp,r the boe, a strong stronger than forecast. the white line is the expectation for a rate cut. they flattened out. traders are now betting on a hike after the middle of next year because the economy as holding up well in the u.k. we will see if the updated projections from the boe on thursday support a better view than they had right after brexit. thanks. now for a look at some other major events in asia this week. tuesday, china manufacturing pmi data for october, official figures and the private cage are expected to come in at 50.3 and 50.19 respectively. growththe just that remains slow but steady in t

kuroda, but still within that camp. guys. a pretty ugly day to be an investor in any asset class.'s get over to first word news with paul allen. paul: the korean court handling receivership is considering individual assets. a spokesman says such a move would include staff and customers of subsidiaries, cargo trade, and some ships. the court has not decided to do with the asia-europe trade. the ceo of yum brands expects to see faster growth after separating its china business. behind brands kfc and pizza hut, and the move is the biggest shakeup in two decades. will benefithe yum from the growth potential of the chinese market as restaurants will pay to license its brands. the pound rebounding in asia trade, having approach lows seen during last week's flash crash. it cemented its position as this year's worst-performing major currency. sterling's losses were over concerns that theresa may would pursue a strategy that puts border control ahead of the market. portuguese prime minister antonio kostas is confident his racialist ship -- his relationship will remain strong after brexit.

the latest development that we the had from the boj, decision by kuroda and his fellow policymakers too government bond yields 20% is only adding to that and seems to be putting a cap on that for the time being. nejra: is is having an impact in terms of this chart i have here showing it coming increasingly expensive to treasuries? paul: this is an interesting development. it has been widening. euro area debt has the yields continually pulled lower and lower by the ecb. it has got to the point where some people say either the ecb may be one up buy quite as many bonds as we think in 2017, or maybe the fed will go a little bit lower than the market. now to treasuries and bonds, but there is a chart that focuses on other peripherals, and we have a big event in december with the italian election. you want to pull up that chart? >> i have it right here. the spread since 2014. we are singularly underperforming spain in terms of bonds by the most in two years. paul: yes. interesting dynamic. italy.orrying one for sudden because of the way the ecb bond bank has people aremarket, looking at info

the survey adds more pressure on abenomics, but boj governor kuroda said he still has the ammunition the room. -- the room to ease. i'm angie lau. yousef: on yousef gamal el-din. manus: and i manus cranny in london. good to see you both. we're counting down to the beginning of european trade. there is one story that is pervasive in terms of shifting the risk. it ideutsche bank and what happens next. we understand the bank may be seeking agreement with the --ons for over 1000 national 1000 additional job cuts. bloomberg is covering the story that shareholders are suggesting, pullback the bonuses and provide provision for additional capital. this is the 20% demolition derby that went on more recently on deutsche bank. here is the msci world index. riskan see across the spectrum, we are seeing that kind of relief coming to the market. will the department of justice be fined less than half of what was speculated? there was talk in the market that could be $5 billion. all of these stories are adding to the deutsche bank really rally. on the other side, there is the additional litigation a

. >> kuroda keeps cold in an interview.r says he will stay on the stimulus train. >> we have to continue our monetary policy. >> for he will fight charges no matter what the cost.

it's way greater than kuroda, carney and draghi can dream of. here's my point.algiers, we were trading up, and then $7 a barrel before abating the last session. 15% on the oil price, on the back of that. they don't have to deliver too much in terms of getting a consensus to freeze, not spend more money on certain declining wells. then -- then you'll get some form of stability. i went through these big oil men. some were ministers, not one thought volatility would disappear. that's a really important point. they thought there would be shorter cycles, technology means you can bring on wells and take them off quickly, as we've seen in the revolution of shale. volatility will continue regardless of price and regardless of a deal coming out from opec or not. i have been around too long for that. >> steve, thank you very much that. goldman sachs also following your lead, skeptical of the deals. >>> the fed could play a role in the trading. minutes from last month's fomc meeting will be released. and two fed presidents will be speaking. just one notable earnings report

caroline: kuroda keeps cool.e interview, boj governor says he will stay on the stimulus train. >> we have to continue our monetary policy. caroline: leon er

kuroda is committed to coming up with different ways to show that commitment. we consider the strategy to be working, but there has been overlaps since quantitative easing took hold in 2014. it is not the case with inflation targets. we need to continue with that strategy. >> if there is uncertainty, you have the fed and brexit. when you talk to clients, what are they most worried about? >> the funny thing is there is always something to worry about. at the moment, there are a lot of uncertainties. at the top of them is the fed, the elections in the u.s., the chinese economy. i would put those at the top three right now. but there is never a decade when there are not things going on. as business leaders, your job is to sort through that which matters from that which does not. not look for perfection in making decisions, but move your organizations forward. >> you didn't mention brexit. with brexit, will the big banks move employees? >> it is not the top three. it is in the top 10. brexit happened, so we are dealing with certainty. we know that happened. as the

. >>> comments on that front to tell you about the bank of ja n japan's president, kuroda says there's less urgency to add stimulus. he already said there's willingness to do more. perhaps that has taken the yen off earlier session lows. >> not big moves compared to what we have seen on the dollar. >>> today's top corporate stories, we are watching shares of deutsche bank reviewing the u.s. operations ahead of the expected settlement with the department of justice. it's unlikely the bank would abandon the united states altogether as it is a key market for the investment bank. but the european lender could scale down its u.s. activities to focus on the german clients. shares of deutsche are up 0.4% this morning. so this is quite interesting if they did significantly pull out. i mean, i'm not sure about the wording of this story we're reporting because it's kind of all or nothing for them, the u.s. investment bankers. it is very hard to scale back and not have positions here. it's so hard to spread capital over two places. we already know they don't have enough capital generally speaking

guy: kuroda is talking right now. he has two speeches. one is in japanese and later on, in english. we'll bring you the highlights on both of them. tim grasse is going to stay with us. caroline: coming up on the open, a stellar lineup of guest. next, the cfo of sap after the software giant's tweaked the upside of its range. the profit forecast on an improved cloud look. the conversation on the ecb. with, we'll talk brexit the croatian prime minister. this is bloomberg. ♪ caroline: a little over 15 minutes until the european stock market opens. let us get the european business flash with juliette saly. juliette: british american proposed buying the shares -- it would cost the maker of lucky strike cigarettes about $47 billion. it said it has been unable to have prior negotiations with the board as u.s. securities laws require it to announce the plan promptly. has reported a third-quarter rise in profits. it rose to just over 4 billion euros. surging buoyed by its sales of mercedes-benz luxury cars in china as the brand rolls out the new e class sedan. senior executives at at&t and ti

the yen dollar was weakening until governor kuroda said in forcing the around the zero target for yields might imply more or less bond purchases. when he said that, the likelihood of tapering went from zero to something higher than zero. that caused a temporary turnaround of yen dollar. the point made by your reporter theier that the market test markets are very sensitive to the t word is a good point. -- the markets are very sensitive to the t word is a good point. caroline: how did monetary policymakers managed to con the market -- managed to calm the markets without seeing the taper tantrum's saw in the united states with ben bernanke? robert: the key thing is clarity. what they are going to do with the quantitative portion of their program as economic indicators evolve back out in the case of the bank of japan, they have said this zero target for the 10 year yield -- they had not made it clear how that target is going to be suggested as rises increase. say our forecast were to come true which we think it will and prices begin to edge up, will the boj wait until prices are over 2% bef

how much will rising protectionism hurt kuroda? the euro grinds lower.ecember pmi data dropped during this program. do come at the moment they visit appetite eight of the pmi data. zone as anthe euro aggregate that is coming to look at in less than half an hour. up about 3/10 of a percentage of the net the euro stoxx 50. they had the best weekend a month and who live the charge? it was the banks. corporate,ul lot of let's check out the gmn entry would is going on around the world. the dollar was strengthening the summit against the euro. these have met against the british pound. there are still some evidence of that. aswill see if that changes he gets handed over. we get a bit more liquidity into the market over the next 40 minutes. we're still seeing this dollar strength story one of the dominant themes out there. interesting to see how some of the stocks traded it. we'll watch carefully to see what the reporting season looks like. let's get everything us need to know from the bloomberg first world news with juliette. bankste: wall street writing some o

consumer prices in japan refused to rise despite prime minister shinzo abe and haruhiko kuroda's best efforts to revive the economy. core inflation fell .5%, its seventh straight decline. spending slumped again in september. the boj's policy board may revise inflation outlook and projected timeframe for hitting its 2% target when it meets next week. china's communist party has declared xi jingping as its core, according to the state-run news agency. the massive change strengthens him at the head of a power reshuffle next year, and is significant in china's elite politics, which has for a decade tried to avoid mouse a tongue -- global news, 24 hours a day, powered by over 2600 journalists and analysts in more than 120 countries. this is bloomberg. caroline: thank you. s, ubs, investment bank missing out on fixed income a 68%s amongst its peers, drop in pretax profit. third-quarter's earnings did beat estimates overall. the chief executive sergio ermotti spoke to us earlier this morning. >> third-quarter earnings did beat estimates overall. it was a very strong result. we have been able

his governor kuroda started courageous and experimental , he had to be bolstered otherwise he would beng there. olivier blonde charred, the smartest guy in the world. to say we coverage need to aggressively reflate and push inflation to 4%. and he got killed for that. is that we are jacob: talking about in 2016? jacob:i hope not. let me just say that the logic of raising the inflation target actually, i got going much earlier because it is midday in europe. real interest rates have declined all over the world. of reasons.y -- weple started to say need to have a higher nominal interest rate. realo we do this if interest rates went down? that is where we need an inflation component. all over the world, lower productivity. don't why don't we asked the question of, how do we raise -- francine: because no one knows. jacob: everyone knows that productivity requires innovation, mobility, a flexible economy. tom: we will come back and talk about this. jacob frenkel is here with us with jp international chairman. ,oming up this morning christine lagarde from the blue, green, red book. this is b

a lot of talk about governor kuroda and looking at the bank.om: i look at the green book that comes out from the imf. the financial stability issues of the week will be interesting, starting with deutsche bank. i was taken aback by prime minister may's speech over the weekend. francine: i don't think we learned that much new in terms of brexit. it seems party politics will take a bigger role in when you invoke brexit. she doesn't like it being hard or soft. i think it is all or -- all the same. let's get to the bloomberg first word news with taylor riggs. taylor: supporters of that peace plan that ended five decades of fighting in columbia. the agreement -- it would pass easily. the plan called for rebels to give up their weapons and return -- penalties for any crimes they committed. the president said the cease-fire will stay in effect. donald trump is resisting pressure to release a information following revelations about his finances. the new york times says the billione posted a 916 -- million dollar loss on his 1995 income tax return. just

we saw governor kuroda last friday talk about the need for the government to start doing its part tonomy. he also cited the need for structural reform. those comments from him indicating a little bit of inpatients on the part of the boj waiting for the government to do its part to support economic growth and take some of the pressure off the central bank. all right, there for us in tokyo. park korean president comes under further pressure today as the scandal refuses to die down. why are korean so angry? we solve these protests accelerate over the weekend. fort is an unusual scandal south korea. corruptioned to scandals, but they usually involve the family members of the president. who one involves a woman people know very little about in south korea. she was a childhood friend of the current president, and she is kind of a mysterious woman, a private citizen, and there are questions about who she is and why she had access to these documents, why she has had such an influence on this administration. a chance that an anonymous person could lead to her downfall. >> she is under fire ri

the comments overnight from kuroda say that we will expand the monetary base.eing simple is the best way of doing it. david: are the markets reacting to these two very different ways of doing things? you compare what mario draghi did yesterday with what is going on not just with janet yellen but with -- george: when you are pivoting and changing your policy -- and the fed has been trying to do that -- they are trying to build the case to maintain the narrative. there is value in that, but i do think there are times when the markets are confused by various speakers going in different directions. jon: let's talk about the market fallout. we went into the meeting with your program, and they said look at what is happening with the chinese currency. does it become a problem for the federal reserve? george: given that they have had huge leadtimes on this, it does not prevent them from hiking. thatforces this notion they are going to move very slow, but the dollar will not be the recipient of these other qe's overseas, as well as other fed activity. in many ways, what

first of all we had a lengthy conversation with governor kuroda.hen there was a two-pronged attack. you look at the details, there is new fiscal funding. i don't know where the juncker plan is. i don't understand why it is so difficult to achieve, john. >> the problem is the governments have borrowed a lot of money. there is the overhank of debt. there is not unanimity as it were that more spending is -- if we had the crisis because of too much debt, why is the solution more debt? i think central banks cannot avoid being drawn into a political debate because what they are actually doing with their policys is intensely political. moving resources from savors to borrow s. it is moving people's fortunes around. that is politics. it is all very well for mark carney to say you set the policies, i'm just a technocrat. what is needed clearly is two forms of consensus. the first is between countries, consensus on whether it is coordinated to raise interest rates to boost the infrastructure spending, but also consensus within countries which means that the