are there any key phrases that we will be looking for from governor kuroda about future policy?inperative japanese means premature. i can pretty much guarantee you he will use that phrase again. the question is will he qualify that by saying something it is premature, although at some point we will have to start discussing it. we will look for the qualification. we talked to the people at the boj who are in a position to the policye know board is intent on changing its style totions prepare the market for an eventual eggs it, so we won't look for any qualification that indicates governor kuroda wants to start talking about that strategy. is japan getting closer to a place where it would make sense to start talking about an exit strategy. and bad is good news news. on the macro economy side, expansion, corporates looking good, capital spending plans suggests that will be an engine of growth this fiscal year. pricesblem is are soft, well below the 2% inflation market come and energy markets recently won't help with that, and i guarantee you governor kuroda will talk about that as

kuroda is talking about. are continuing to push the button on the stimulus that is in place, and we have gotten to the point in the press conference where he is being asked how on earth does the boj exit? the lines are straightforward. showing exit stimulations are not appropriate now, it is too early to forecast what the balance sheet will look at -- look like when the exit goes through. he is making a bunch of comments result -- related to the exit. he is not giving details. whether or not there is an internal discussion going on within the oj, we do not know. we have to assume based on these comments that there is, but it will not take place at the moment. it is fascinating to see what is going on. the boj clearly does not feel it is the right time to start talking about how on earth it program, andhe qe the entire stimulus program it is working with at the moment. that you can see what is happening with the moment. we are spiking a little bit higher, maybe a bit more dovish from what was anticipated comin

will governor kuroda give us any clues on when it will be

there will be some focus on what kuroda might say.sesow otherwise they run out of bonds to buy. there is not a lot of expectation that could do anything major to upset the apple cart. australian and also chinese shares of futures have been gaining overnight. looking like a nice end to what had been something of a difficult week. australia's daughter, -- dollar climbing the most among major currencies. what has been fueling those gains? >> the aussie dollars gain has been somewhat surprising. so is the economic data in australia. if we look at the bloomberg, we have a chart ready showing how australia's doll term -- dollar has been climbing and has beaten expectations by the most in about one year. at the same time, the u.s. been meeting has economic data by the most in a year. the backdrop to that is australian expectation has been pretty low. , we cane growth inflation. all the same, it has been beating expectations. if those surprise index is turnaround, the australian dollar could turn around two. right now it is sitting pretty. >>

kuroda, governor.d to see them in order most hawkish to least hawkish, how would you order them? elias: i would put stephen now,s on their right judging from his comments two weeks ago that -- he suggested more monetary policy accommodation for canada is probably behind us. i would put him number one eared -- one. carney i would probably put in the middle, at least equal with kuroda. bit are probably a reluctant to introduce more aggressive stimulus measures, but they are also quite cautious to limit a pick up where there is an upward revision to rate expectations by money markets. fully the euro-yen is creeping toward the top end of its recent trading range. is that something you are watching? elias: it is a good trade. both countries have a decent current account surpluses. the political uncertainty in the eurozone has clearly diminished and their will be fairly good support for the euro. also, european activities doing fairly well, particularly relative to japan. we should see upward revision. highe

carney has brexit, kuroda, who has nailed this? >> i think it's mario draghi if you look at the way draghi has been able to weave through the german political system, he's done an expert job. let's also say he has backup the french and italians are supporting him in the direction he's going if you look at yellen, clearly trump signaled he put gary cohn in charge of finding a replacement. the extent the brexiters have it out for mark carney, the chief economist of the bank of england gand h against his governor, so mario draghi is the one who faced down his opponents and stands supreme. >> and may have the toughest job of all because he has to please politicians in multiple countries. thank you. >> my pleasure >> a lot to talk about in the central banking world. >>> when we come back, we're live in washington with more on the senate's delayed healthcare vote and a deeper dive into the performance of the healthcare stocks and a top market strategist weighs in on what the uncertaintabt shgty ouwainon means for your money "worldwide ex

they willawks leave, be falling in line firmly behind governor kuroda.: having a look at mark carney. he faces a bit of a nightmare. three members of the committee wanting a rate hike. also, inflation surging, brexit talks beginning, the pound taking a kicking overnight. now he has been opening his mouth to change fate i believe. >> i think mark carney after not afterng for a month theresa may called for that snap election, so he came out swinging to push back against the three dissenters from last weeks policy meeting who wanted to hike rates immediately to remind everybody that there are big risks hanging over the economy from brexit. that is why he disagrees with that. weakeruld like to see consumption growth offset by other components of demand. where wages begin to firm and how the economy reacts to the prospects of tighter financial conditions and the reality of brexit negotiations. >> it is understandable why those three dissented, u.k. inflation, two point 9% far above that 2% target. one of the hawks leaving the boe the summer saying there is a

japan, governor kuroda is expected to be under pressure to keep them from under winding -- unwindingve policy. we will look ahead to the fed areas and this is holding at 110.11. inty: looks pretty calm tokyo. it is 6:30 in new york. you are watching daybreak australia. left to the markets. -- let's go to the markets. tom: political drama in the u.k. meant losses for one of the biggest men. the infrastructure that here was among the biggest losers in hong kong with the value cat of the u.k. earnings. sterling went to percent up as conservatives lost the majority in parliament. the bank of japan governor is seen as increasingly likely to win a second term ahead of a policy meeting this week. bloomberg survey economist says he is the only possible contender after his current term runs out next april. they see a change of policy this week and the vast majority don't expect any change until after corona's current term -- governor kuroda's current term ends. shinzo abe may have xi jinping for a state visit later next year. she is they may go to china earlier to lay the groundwork. it will

governory the boj and kuroda remain accommodative when it comes to qe.n the chorus when you see. plenty more to come. this is bloomberg. ♪ betty: this is "daybreak asia," i am betty liu in new york. yvonne: i am yvonne man in hong kong. alibaba said to be close to buying zte's software on to strengthen its position in the cloud. they have been speaking to zte text for months. alibaba is investing heavily in the cloud to compete with amazon and microsoft. record $1.2 billion fine in the u.s. betty: amazon's position as the goto place for online merchants is increasingly threatened by walmart. third-party sellers account for one third of product sold on amazon. complaining, they are starting to move some of their business elsewhere. walmart is benefiting the most after buying startup jet.com last year. yvonne: plenty more to come as we count down to trading in sydney and seoul. we are seeing positivity in the region after we saw a bounce mac and -- bounceback and reversal on wall street. betty: central-bank watch, it seems the past couple days. we will be

boj governor kuroda likely to win a second term.conomists say he is the only possible contender. >> we have the world covered here on "daybreak asia" and go to london and discuss the fallout from the u.k. election. >> rick perry in beijing talking clean energy and the paris accord. our exclusive interview of little later. this is "daybreak asia" coming to you live from bloomberg's u.s. and asian headquarters. we have the u.k. of election out of the way, but uncertainty here to stay. theresa may hanging by a thread as prime minister as she tries to string together some kind of coalition party. the dup still in question. the pound taking it on the chin. mostound falling the against g10 currencies come especially the canadian dollar, -pound getting a bit. the only exception is the yen and the new zealand dollar. pound seeing pressure, not a lot of reaction to surprise appointments in may's cabinet. theresa may fired when she took power, so showing how weak her position is. >> and karma too. you would have thought that dominated the mar

that trumps kuroda, and yellen. to be accommodative, but hinting stance, toifferent adjust quantitative easing earlier than anticipated, or isbe in line with what anticipated. financials should reset the tenor on financials. industrials down .4%. ? how should you look at a june move? we have put it together for you. g #btv 521. we will break our winning streak. we are going to come in on the downside. that breaks the longest winning streak on the stoxx 600 since 2013. is the political victory of macron priced in? our people as concerned about italy as they were at the start of the year? maybe not. stocks are getting a little bit of rally here. we had a rally in may. this is something we have seen time and time again going back to 2013. the gilt market, we will get to that. have a look at the sterling market. thisis euro -- and the #on is btvhashtag on this 520. you have a few more comments coming through from the bank of england, the deputy governor saying we have to take our time, more time to assess things in term

thene next big event might be kuroda's departure or non- departure. could he stay?it's important to some extent in terms of the type of policy they could pursue. the one policy tool they have -- they have tried everything. negative rates, buying equities and bonds. the one thing they have not done is due helicopter money. print money and use that money to just fuel growth. they have not gone down that road. so, the issue with that is there is no one within the bank of japan that wants to cross that line. nor is there anyone in the ministry of finance to cross the line as well. on,n if kuroda was to move until you get this consensus that they are willing to do helicopter money, there is not much they can do. mark: great to have you on. right. still to come, almost a decade since the global financial crisis. we will focus on the future of europe's banks. we will join by the co-head financial institutions teams and rages the agency -- and ratings agency fitch. this is bloomberg. ♪ mark: you are watching bloomberg "surveillance." let's get the bloomberg business flash.

boj governor kuroda is seen as increasingly likely to win a second term.hird of economists saying he is the only possible contender. none said they see a change in policy this week, and the vast majority don't expect any change until after the current term ends. to bank of korea on track turn around years of rate cuts by normalizing policy. and the governor said the central bank should review its policy if the recovery continues , although will remain accommodative for now. growth is expected to exceed 2.6%. saudi-ledrning the isolation of qatar could lead to war. the foreign minister saying the situation could rapidly deteriorate. turkey is pushing ahead with a military base in qatar, saying it is for the security of the ulf.e g russia says it is ready to work with the u.s. to resolve the qatar crisis. the russian foreign minister speaking to secretary of state tillerson saying negotiations are the only way ford and differences are emerging within the trump administration. rex tillerson caught on saudi arabia to step back. global news 24 hours a day power

kuroda.this gap becomes wider and wider between what the boj is doing and what the fed is doing. in that environment, that puts a lot of strains on both economies, i suppose, ultimately. >> i think it does. the currency manipulation discussion between the u.s. and northeast asia becomes one that is more acute around japan. if you look even at yesterday's machinery orders, it was a terrible order. abenomics isn't -- not achieving weight needs to achieve.inflation is still around zero. the boj is not questioning its current strategy. there has to be a serious question about what boj is actually doing. i guess even more important is why are they doing it? one of the key things they are doing is continuing to intentionally devalue the jp why -- jpy. they have paid off a lot of public sector debt over the last two years, but it hasn't done much for the japanese worker or consumer spending. retail spending is looking terrible. haidi: tony, while we are talking about central banks be -- big week, i

governor kuroda's headache.an's core consumer prices higher for a fifth straight month in may, but the slow rise means inflation far from the boj 2% target. consumer prices excluding fresh , the jobless rate rose unexpectedly to 3.1%, industrial output fell 3.3%, a worse slowdown than expected. president trump then president putin are set to meet as heads of state for the first time at the g-20 next week in hamburg, coming as bilateral relations are at their lowest in decades. it includes russian intervention in ukraine, american sanctions, and the kremlin's alleged meddling in last year's elections. the white house declined to say if those subjects would be addressed. aboutkorea has formerly two kill the former south korean leader, saying she would face summary execution should an attack be attempted on kim jong-un. she is accused of planning to overthrow kim and his regime. it was added that the plan was scrapped because she was impeached last year. global news 24 hours a day powered by more than 2700 journali

coming up, japanese millennials are making governor kuroda's job much harder.o to find out why. this is bloomberg. ♪ >> theresa may took a big step towards brexit as she presented a plan to protect the rights of eu citizens living in the u.k. the eu leaders gave a mixed response. let's bring in kathleen hays with more on the eu summit. what exactly was proposed on what has been the response? somethingertainly that has been in question for a while, what to do with nearly 3 million europeans who live in the u.k. million toother 1.5 2 million brits who live in the eu. it is seen as one of the gateway issues that have to be settled before negotiations over trade began. -- begin. it is not clear on the cutoff date. whether or not you can easily remain a citizen depends on how long you have been in the eu before the cut off date. the cut off date is somewhere after march 29 this year when the official brexit period started and when ever the u.k. manages to completed. let me give you some specifics. k for have been in the u at least five years before the cutoff date,

kuroda, the governor. this is bloomberg. ♪ ♪ live from new york and london. i am vonnie quinn.ton. this is bloomberg markets. a programming note on bloomberg television, that david .ubenstein show tonight, the cofounder and chairman emeritus. >> when you founded the company around 1962, you knew nothing about shoe design. you did not know a lot about management and you did not have money. did you imagine when you first started this company in the early 1960's, that it could be what it became? >> when i get that question, i say, we are exactly on plan. [laughter] with you, i cannot be a smartass. >> you mean, that wasn't an original question? mark: you can see that interview tonight on the david rubenstein show tonight at 9:00 p.m. eastern. coming up on the european close, thoughts to talk about. -- lots to talk about. have a look at what is happening to european equities. little change for the stoxx 600. is lower, falling for the fifth day in seven. check out the currency board. lots happening in the currency markets. the euro with soaring. the euro is down against the pound bu

kurodaeally is no drama, here in japan. they just want to keep everything steady. ultimately,use, economic additions are good. they are improving modestly. big boomno sign of a coming so there is no risk of any bubbles anywhere. at the same time, you do have situations where price pressures are few and far between, so the japan is steady. >> how important was a reassessment on household consumption? >> the comments are very encouraging. what we are seeing in japan, it is interesting. we also see it in other countries, the economy is doing well. we have had five quarters of growth. we are on our way to the six quarter. consumption looks better. we have this problem with the core and feds is goal of the bha to raise inflation. we need to raise more awareness there. the disconnect that is the -- theect in inflation real problem is the disconnect in inflation. >> this has been a big week for monetary policy. it has been a critical week in global politics as well. recap maneuvers for theresa may after the u.k. election and, the bloomberg scoop expects his -- exposes the

down 0.3% as we await comments from governor kuroda.nd in a lot of these commodities-based markets. up one third of 1%. we still have crude holding at the seven-month low. certainly more coming back from investors. in terms of the bond market, you are seeing bonds sold off today. strong movement coming through in the yield market. up by 4.6to their basis points. let's see what is moving in terms of basis points. rebounds coming through from tech stops -- stocks. former --top for performer in the region. that is the state of play across asian markets this session. it is friday here in hong kong. ♪ this is "bloomberg technology," i am emily chang. the tech selloff, u.s. stocks retreated as large-cap names in tech continued their recent slide, weighing on the overall market. joining me from new york, our and an analyst. james, you think tech is undervalued. where and why? >> if you look at facebook, facebook is growing the bottom line at over 70%, priced under 40. adjusted for growth, its actual peg is a 0.5. the market is 2.5. is one fift

. >> it is really no drama kuroda here in japan.hey just want to keep everything steady, that is because ultimately, economic conditions are good. they are improving modestly. there is neither a sign of a big boom coming, so no risk of any bubbles anywhere. at the same time, you do have a situation where price pressures are few and far in between. so for the bank of japan, it is very much steady as she goes. >> the boj did change one thing. that was its conception of consumption. how important was that reassessment on household consumption? >> >> the comments are very encouraging. what we are seeing in japan is interesting and we are seeing other countries in the moment, the economy is doing well. we have had five quarters of growth. on our way to a sixth quarter. but we had this persistent problem with inflation. so, we need to see more happening there. there is a disconnect happening and what we are seeing is economic growth looking not too bad. executives making the wrong kind of headlines. the ge era ends and more tumult at the

kuroda >> indeed. so our point of view phillips curve is probably not broken but very, very flat. it would take longer for unemployment levels and for the tightness of the labor market to finally push it -- push up the inflationary pressure. but the pace needs to be adjusted to take into consideration, structural factors, aging demographics, productivity and all the factors that characterize this >> we covered a lot of ground. thank you very much for that nice to see you today. wei li >>> one factor that appears to be not ra probla problem for mas capital levels of u.s. banks they have enough capital to trade during extreme economic recession. under the fed scenarios, banks would suffer significant losses, but be strong enough to continue lending to households and businesses results from a second round of stress tests will be out next week this is the bit where they find out how much money they can spend. we'll find out what the fed thinks about the bank's plans to return capital to shareholders "squawk box" spoke to the senior credit analyst at hermes financial managers and asked

yvonne: haruhiko kuroda is treading water very carefully because he cannot speak to much about this exitegy despite the fact that you get the pressure from the fed and ecb. they have to be able to stop the ulge. this was a mixed picture. a mixed year for exports. imports beating. we will see how that goes and gets to the latest with reaction to those numbers. sophie: slightly more favorable move with the numbers we saw on friday. slightlyks ended higher. the nikkei 225 out the gate up .2%, despite the surprise swing to the deficit. less than forecast. shares in tokyo now rising for a second straight day. looking elsewhere in the region, weakness in seoul. the asx 200, swings between gains and losses at the open. a possible driver for investors of course this morning. chinese property prices for may due later in the morning. we also have something for investors. that megadeal for amazon to buy a whole foods. with amazon looking to switch that mindset around the whole paycheck by cutting costs across the supply chain, that can help inflation and give treasury investors some reason to then

for the week you have the dollar/yen paired, 1 111.31 we saw a bit of weakness, and comments from kuroda saying it's taking time to end the deflation mindset. want to switch attention and tell you what's going on with u.s. futures we're looking at a fairly friendly start to the trading session. if the s&p 500 could add 5 points the dow jones 43, and the nasdaq 13 points. this after the nasdaq fell yesterday with facebook, amazon, apple and netflix all closing lower. >>> one of the biggest losers in yesterday's session, that was actually snap. shares in the social media company closed out its ipo price on thursday with its stock hitting $17 for the first time since the company debuted it on the nyse the investors may be re-evaluating tech stocks, but one man wholeheartedly embracing the sector is emanuel macron speaking at the viva tech conference in paris, he vowed to transform his country into a startup nation arjun got a chance to speak to him. >> i did, indeed we were speaking about what his plans were to change and revolutionize the tech industry in france. of course all sorts of ind

bank of japan governor kuroda says the economy has escaped deflation but has a long way to inflationthet oxford, he says the bank has steered japan in the right direction but the jury is not over. show gdpt data expanded for a fifth straight quarter, the longest streak in a decade but 2% inflation remains far out of reach. news 24 hours a day powered by 2700 journalists and analysts in 120 countries, i'm courtney collins. this is bloomberg. haidi: guy: let's get back to the u.k. exit polls and the u.k. suggesting it inconclusive election result with theresa may's conservatives falling short of a majority in permit. it is early days. it is going to be a long, long thet as we go through individual constituencies. joining us is the bloomberg intelligence chief european economist, janie murray. there's a number of ways of coming at this story. let's talk about what it means for brexit. if you can come up with a great answer, i am all ears. jamie: let's forget about the exit polls. let's imagine that theresa may got a bigger majority. we are looking at a softer brexit, potentially because sh

there is pressure on haruhiko kuroda to communicate when they will start tightening.e talking about that at all? --he didn't make very clear i would be more radical if it was up to me but i'm not a political peonnvolved in central banking in japan. angie:it is supposedo be a political. >> institutional. and it is a political thing because it has to be approved by parliament. but he should say we will talk about balance sheet normalization, they are so far away from the target and if they talk about balance sheet , it's just a , strict,n to the old disciplinarian bank of japan regime and that doesn't help at all. -- it's a goodar step in the right direction but my preference would be not to talk about it at all which would constitute a form of easing because it makes clear that we are not going boldly on this. david: do you expect him to stay for another term, and what could that easing, in? >> i am reasonably confident from what i hear from people in japan and who are more knowledgeable, that the decision has been taken by the prime minister and that mr. corona is wil

and then you have kuroda who is trying to find a place in japan without much success.s are we going prudence.e word i would not be surprised if more often than previously planned. futures here in the united states of. story in the fx market. euro-dollar funding highest today. . big move yesterday theink there's something trade balance of the more narrow . that is the story with the breaking data. -- big market move, and ecb and i >> really fundamentally interesting issues. the trade deficit big priority for president trump. wilbur ross says the president will take full action to address serial dumpers of metal. ceo of news corp. waiting to that yesterday. -- our country is major role of government. >> this in me feels like sure picking what industries will make it or not. >> there was a lot of concern this year around the potential for trade policy to the disruptive. down.oncern has come we are getting into the industry .y industry issues important the other part to pull up is the .ecommended it has come down in terms of the market drive. >> that leaves the question, c

the bank of japan is forecast to stand, and governor kuroda is how heressure to reveal will exit fromive rates. let's talk about one of the big items on the agenda this week. that is the federal reserve. treasuries have become unhinged from reality. they yields have nowhere to go but up. that is the view of a group of diehard on bears -- bond bears. chief global strategist at deutsche bank u.s. securities unit is training in. he says investors are ignoring higher wage pressures and bursting budget deficits, which will send the 10 year yield to 3.25% by the end of the year. that is his view. let's get the view from allen higgins. talking aboutnk, a 10 year yield of 3.25% by the end of the year. -- in a bloomberg story this morning, i real -- read that wall street expectations have been decreasing for year end yields. forecast at 2.7% at 20 basis points lower than it was two months ago. treasury 10 that year yield, keeps coming down. what are your thoughts? know, he is to be expected, but there's a huge number of bears on bonds. our perspective is slightly --ferent in the sense that we

further tailwind from the economy that the central bank is still there, still buying, and that the kurodaments which came yesterday basically doubled down on it. i think what we having here is a bit of a selloff after all the strength we have had. the last time i was on the show about a month or so ago, we were talking about the 2.31 level as being the important support. bill gross had mentioned it. among other people. here we are back there, and the trend line is still in tact. the key is going to be the next couple of days to see if i'm right, but i think ultimately, we will turn around and rates go back down. i'm glad you mentioned central bankers. do you think we're getting some kind of coordinated move up in rates? are they working behind the scenes to say that we need to focus on asset price rises? are not think they nearly as coordinated as we think they are. i think the sort of ham-handed thing that happened here with draghi -- on wednesday after the tuesday comments, the ecb was right out there walking back the statements. i think draghi was a little taken off guard by how the ma

we expecting boj minutes from speaking in kuroda tokyo this afternoon.utside of china it seems pretty risk off. very much so, those oil prices are a big factor in the u.s. markets. let's pull up the boards and see how wall street ended the day. it ended lower, tech shares back and forth, giving up those gains we saw yesterday. nobody can make up their mind on where to go. nasdaq down almost 1%, dow, down 63 perp -- points. let's pull up oil prices, really weighing on the markets and these energy shares. downa look at nymex crude, on the 15% over the past month. 20%,y falling now, over into bear territory. we will see how much lower wti crude can go. now, first word news. president saysed he is glad about this month's interest rate hike and is willing to be patient over mixed economic data. however, he may be more skeptical about a more neutral rate of 3% in coming years. though inflation remains a concern, he says it is sufficient to take the slack out of the labor market. >> inflation has been sluggish in the united states. that is not all bad, by the w

we have the european central bank room and big central bankers including kuroda from the boj.ill be looking at those pretty closely. anchor: the central bank bigwigs e.l ther we also talk a lot about the explosion of popularity when it comes to the etf showing no signs of slowing in the u.s.. goldman saying most of that growth is coming from overseas. indeed, yvonne. i think it is pretty well encapsulated if we bring up this terminal chart here on the bloomberg. just how muchg us of a year 2017 is shaping up to predictions, they to be purchases of etf more than 2015 and 2016 combined. they expect things to tell of a little bit in the second half of this year. they say that indeed the demand is coming from overseas buyers coming into the u.s. etf's, and that maybe he'd a little bit of the deficit continues to mount around the trump administration's ability to deliver favorable economic willies in the u.s., so it be closely watched i think in terms of the next few months and how we see this purchases progressing, but certainly, just no shortage of people wanting to get into this

yvonne: we have boj speak later on with haruhiko kuroda.cio, thank you with that wrap up. guest,look at our next bill. good to have you. headwinds and inflation are temporary. does that mean much to you? do you think there is urgency coming out from him or business as usual for the ecb? >> i am not sure if it is any of those things. i think the news in europe, the economic news, has been positive and surprising to the upside. i think that has allowed the central bank to suggest that maybe, they are reaching the end of the accommodation phase and the recovery is setting in, and paint a rather positive picture of the economy. that is what we would expect them to come due. the news has been positive and surprising us on to the upside rather than the downside. bunds selling off? >> with currency, it is so much more complicated. you have the $ of the occasion -- you have the dollar side of the equation. i think draghi is wanting to capitalize on that while he is able to do so. thought it was interesting what janet yellen has a spoken about. she

looking ahead, traders will be waiting on governor kuroda's comments on wednesday -- wednesday alonge line of speakers that they have. betty: a lot going on here. let's get to the first word news with ramy inocencio in your. say: top brexit negotiators talks between the u.k. and eu have started positively. in brussels, the brexit secretary said there is more than unites the two side then divides them. they hoped to tackle the uncertainties posed by brexit and identify a timetable for one to leave. eu and the u.k., a fair deal is possible. it is far better than no deal. that is what i said to david today. withis why we will work the u.k. and never against. to david, the eu confirmed trade talks will not start before october at the earliest. the brexit deal will follow the timeline set up by brussels. the u.k. had when a trade negotiations to run in parallel with divorce proceedings. toshiba chip problem has turned another page. tokyo says and potential investor has dropped out. kkr has declined to join. a company has offered $19 billion for the unit. a u.s. chipmaker is said to have b

kuroda says the economy has escaped from deflation. he says the journey is not over.for a fifth straight quarter, but 2% inflation remains out of reach. korea raising tensions, saying it will celebrate its nuclear program, pyongyang saying the development of capabilities would be intensified until the south and its american ally "come to their senses." it comes after rex tillerson called up on north korea's neighbors to step up the pressure. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. it's time to see how the asian markets are shaping up. brink ofon the breaking below 127. we continue to see options for theresa may and the conservatives limited. sophie: the pound under siege, falling almost 2%. and seoul,tokyo korea shrugging off the woes, nikkei 225 getting a boost as the yen swings around 110 dollar. japanese shares set for a weekly drop of 1%. we are seeing oil prices on the back foot. energy stocks leading the drop in sydney. currencies are getting caught up in that u.k. election cros

rateine: how would you governor kuroda, he is really pushed the boundaries.ough this? pretty smart is a cookie and he is shown to be quite inventive as well and moving to the why cc where basically they are fixing the long bond yield is quite a big invention in the world. lot up his sleeve and that seems to work in terms of tapering qe and they are not buying as many bonds as they used to be because people feel the long bond will be fixed. have were you get everybody together globally. where is pimco with a japan? -- with japan? libby cantrill: our review is the central bank, the boj has done everything they can, so creative. not into the time for the fiscal authorities to step up and we did i know if we will say the fiscal expansion. we seen for monetary policy perspective, they have done a thing they can do and every conventional -- unconventional monetary tool and it is time for the fiscal authorities to step up. first event thank you, libby and john vail is -- francine: thank you, libby and john vail is with us. roadg up later, on the live from blackrock,

because kuroda is not on board. anna: have we made too much of what carney had to say? time for your morning brief. some u.s. ego up data including the third reading of first quarter gdp and weekly initial jobless claims. fed president james spurlock speaks in london. we will rate his disapproval of the pace of rates currently priced in by the fed. at 6:00 president trump will meet south korea's new president. house.at the white they will be talking trade, geopolitics. breaking news. have a merger. rite aid eight and walgreens are mutually agreed to terminate that merger. really interesting development for the companies. -- you wind up having walgreens up by over 1% in premarket. right eight seeing a nice pop as the merger is terminated. other mergers not terminated. governmenthe u.k. inclined to refer the fox skype it to the regulator. we were waiting for this one. the u.k. than the government. referring the sky bid to the regulator. this is karen brady making this decision. she is the culture secretary in the u.k. there had been some expectation that she might look le

. >> no, bonds aren't wrong, but bonds are telling us is that mario draghi and kuroda and the stimulative plus that's put into stimulus since the beginning of the year by the central bank, still active. that is what's disaffecting my opinion. foreign exchange and the interest rate differentials. >> but rick, the whole spread, the whole steepener from the election is out of the bond market right now. i want to turn to savita. when you're investing in stocks, are you looking over your shoulder at your buddies over in the bond pits and saying, wait a second, do they know something about what's going to happen with the economy or inflation i don't know? >> there's this thesis that bond investors are smarter than equities and bonds always lead equities. that's not always true. here's what i think is going on, bonds and stocks have been basically moving based on positioning. so if you notice, every quarter either investors get really bulled up on the economy and bond yields drop and cyclicals rally, and then the next quarter, disappointing numbers, second derivatives rolling over, then you see