this is the biggest challenge for governor kuroda.without disrupting some of these trades? that is a key benchmark here whether he does deliver. haidi: not an enviable position governor kuroda is in as we await to hear from the bank of japan. paul: president trump said he would be willing to meet iran with no preconditions in much the same we he surprised the world with the decision to talk to north korea. he told reporters when dealing with critical issues there is nothing wrong with talking face-to-face. one opportunity will be at the general assembly. president trump: any time they want. any time they want. it is good for the country. good for them. good for us and good for the world. no preconditions. if they want to meet, i'll meet. aul: secretary wilbur ross say negotiations with mexico going well. they have wasted no time appointing a new trade team before taking office in december. president trump indicated he made a bilateral deal and separate negotiations with canada. second quarter income fell short of forecast. $9.8 billio

why would governor kuroda want to make any change now? there is a number of reasons why the bank of japan could be discussing this. as we speak, right behind me, the building where they are deliberating, governor kuroda will face the press in tokyo and around the world, essentially, to explain what they have or have not done. whatever they do to talk about the speculation that for several reasons they are ready to get what may be a technical tweaks. that is how they will want to portray this if they make the move. it will resonate in global bond markets. as july 20, the jgb, 10-year closed 0.03%. when the boj came in whe with is third operation, it was all what is.11, so this is going on. traders had been keeping it as the boj said, right over zero. weekspport started 1.5 ago. they had been testing, testing, testing around 0.10%. they don't want to get any higher than that. why would they consider it now? inflation. they will have to cut their forecast. it is running at 0.8. monetaryve to keep stimulus aggressively in place, it has to be

everyone agrees that governor kuroda cannot step away from inflation. that is an important issue and -- lowering their current fiscal year forecast to about 1.5%. considered toas be in the works anyway. important than this is the discussion about etf purchases. will the boj announced it is ending them or shifting away from the nikkei? maybe that is a pitch that is kurodar corona -- to pitch back. how he handles this is very important. not a change in stimulus. this is pretty optimistic about what is happening in the u.s., isn't it? dark of thein the forecast. >> economists agree that we got u.s. growth on domestic product -- that will not be repeated anytime soon. people believe the impact will be peaking this year. before we judge steve, let's listen to what he said -- steve mnuchin, let's listen to what he said. >> i think we are on this path for several years. i don't think this is a one year or two year phenomena, i think we are looking at 4% -- four years to five years of 3% growth, at least. >> if you are on the supply side you will say that tax c

not long now but why would governor kuroda want to make any change at this point? >> well, it's -- we're certainly glad, of course that this story has surfaced about a week and a half ago, bloomberg, nikkei and others here in tokyo picking up intelligence, whatever you want to call it, reporting that there's discussion at the b.o.j. about tow ho change the way they're dealing with yield surf control policy. as hot as it is here, the speculation around this question is hot in japanese markets and markets around the world. in fact, the speculation is so strong, it norse bank of japan to do three sixth rate operations already this month to buy bonds to prevent traders from pushing that -- pushing that yield from close to just zero to 0.1%, even a little higher. so why would they do this now? many people say it's premature. inflation is running for below target. the fiscal year 2018 forecast is 1.3%, it had got ton 1%, it's back down to .8%. it's going to keep monetary stimliss more stim laid for longer, rates lower for longer, maybe you need to adjust the yield curve

we are waiting for governor kuroda to speak.have seen more reaction in the 10 year yield that has been dropping after the tweets around the boj policy. headlinenews from the -- second quarter, business etf -- 1.25%.nt to pu that seems to be the main number the the market is focusing on. at 8.1 8arter revenue billion euros. a slight miss. 2018 business if you growth at 3.5%. he joins us for an exclusive interview that question in with the markets and here is emery. >> the bank of japan dominating the news. in terms of equities, the announced more etf's. it is more under pressure. the nikkei and relatively fresh. 1%nland china, down 2/10 of after the factory gates dropped. moving on, more on japan. the 10 year yield and the yen falling. it is going to be showing how much the bank of japan actually owns in terms of government debt. that is what the bank of japan holds in terms of the jgb market. the 10 year yield at 0% but in flexibility in the bond operation. it has been another big day for tech earnings. samsung and apple, 22% of

kuroda makes it clear he is in charge of long-term rates. will the bank signal a shift in policy tomorrow? mark carney says he spends half his time on the exit from the eu. faangs.out of love with bank of america recommends shorting the stoxx after -- stocks after social media giants slump. ♪ francine: welcome to bloomberg surveillance. these are your markets. be aftering at remnant .f you look at yen, it is from bojould hear tomorrow and where that leaves 10 year jgb. we will hear from my can of across, the galaxy digital chief executive. that is coming up on bloomberg surveillance. let's get straight to bloomberg first word news. hasn the u.s., charles koch voiced concern that donald trump's action on trade and tariffs puts america's economy at risk of recession. he says protectionism is dangerous. the u.s. treasury secretary said the u.s. is on the path for four or five years of sustained growth. thatview is at odds with of many economists. >> i think we are well on this path for several years. i don't think this is a one or two year phen

does it make sense that governor kuroda -- i am just suggesting i will keep pedal to the metal.ng governor kuroda, he will continue to push in this some rise he's these in the inflationary rates. one of the things he has been consistent about since he took the job is that particular point. kathleen: we will see. we will talk next week and see what happened. bill: you will be there, so we will know. kathleen: global advisor, president and ceo. you can see that book, pick it up. it is fascinating. banker to the world, he is the author. take a look at the stories trending now. on bloomberg.com, the story behind google's secret offer to settle the e.u.'s android probe. they slapped the tech giant with a record fine last week. alliance is trying to revive active fund management by handing out sneakers. they allowed a passive index because they failed to beat benchmarks. on twitter tictoc tells the story of how a sunken treasure has ramped up the imagination of south korean stock traders. regulators have warned investors not to rely on rumors. check out the stories online or on the te

i think the last thing kuroda was to do was make it harder for abe to make that decision. thought it was unlikely you would see major moves away from the easing program, and that is really what we got serious that's what we got -- what we got. david: that sounds like it is not just lower for longer, but lower for forever. when is that going to change? >> if you look at the next couple of years, it is hard to see how a political context will make it easier for kuroda to diverge from the abe government. next year you have the consumption tax decision, and then already you are getting concerns about what sort of slow down your going to get after the 2020 olympics is the bank of japan going to be able to back off when you have those concerns going on about a recession once the 2020 tokyo olympics are over? going forward, it is hard to see when the bank of japan is going to be able to step on the brakes. alix: good point. the issue is also we saw the steepening of the global yield curve in every country. if you come inside the bloomberg, this poses the problem. green -- the, ou

governor kuroda will signal some kind of tweak to yield curve control, may be buying fewer bonds, not changing stimulus. just taking some steps that would take some of the pressure ,ff japan's regional banks having a little more trouble dealing with their portfolios, to do, asthey have long as the boj is buying up so many bonds. yvonne: it really forced the boj to step up and fixed rate operations. calm marketem and nerves at the moment. we have seen it come full circle. kathleen: we sure did. as a matter of fact, travel into treasuries. at u.s.take a look equities because despite all these goings-on, the stock market had amy entering day, closed lower. meandering day, closed lower. nasdaq rallied ahead of the google earnings, and google did not disappoint, so that was a plus. in terms of the global fixed-income market, we can see that there was some action there. the 10 year yield up to 2.95% this afternoon. at bond well above 3% now 3.09. aboutllar gaining up 4.3%. nymex crude -- other things going on with iran. 0.7%,crude down about yvonne. yvonne: a pretty lackluster day when it c

type in live go if you want to watch kuroda live. you can follow it with the tliv that is constantly updated with news and information. let's get to the berg's first word news, we got to singapore and juliette saly. said, the banku of japan has left its key interest rates unchanged while announcing policy tweaks including a shift in purchases of exchange traded funds. in bondibility operations. the central bank said it will reduce the amount of bank reserves subject to its negative interest rate. it said it intends to maintain the extremely low levels of short and long-term interest rates so an extended time. u.s. president donald trump has said he is willing to make his iranian counterpart -- meet his iranian counterpart with no preconditions. that comes as tensions climb following trump's decision to withdraw from the 2015 nuclear deal. hours later, the white house appeared to walk back those comments with an official saying the administration does not expect to ran to take a meeting. >> it is good for them, good for us, and good f

kuroda makes it clear he is in charge of long-term rates. a shift in policy tomorrow? mark carney says he spends half his time on the exit from the eu. faangs.out of love with bank of america recommends shorting the stoxx after -- stocks after social media giants slump. ♪

could kuroda change the playbook for the first time since 2016?and finance bankers are threatening global growth. we will wrap up the meeting. this is bloomberg. ♪ is bloomberg. ♪ de-nuking economics, finance, politics. good morning. this is "bloomberg surveillance." i am francine lacqua in london. here is taylor riggs. taylor: francine, pushing the sustained growth rates achieved by his predecessor. switzerland's third-largest wealth manager added about $15 billion of net new money in the first six months, in line with the company's growth market at julius baer. >> we will be within 46% this year. 2017 was a nice ordinary year, and the market pointed one way. i am very happy with the five went one and i can come from that i feel comfortable to land within the 4% to 6%. taylor: ryanair posted a drop in first-quarter office and warns that threat of walkouts by unions are starting to make customers hesitate to book flights. the company's cfo told bloomberg he recommends oil prices at the current level but warns that some may feel pain. neil: i think

ken governor kuroda pour some cold water on this speculation? from wallech angst street on friday.in the red this morning. coming up next hour, the principal global investor tells us how the negative impact of tariffs on china could spill over to the wider asian region. much more coming on the fx as well with bank of america merrill lynch. this is bloomberg. ♪ . this is bloomberg. ♪ two, down and back up. our phones are more than just phones. they are pocket sized personal trainers... last minute gift finders... siri: destination ahead. and discoverers of new places. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet. which could save you hunreds of dollars a year. plus get $150 when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. yvonne: 8:00 a.m. here in hong kong. we are live from asia's headquarters. welcome to "daybreak asia." asia-pacific markets set for decline with the start of a new week. z/yen steadied around 111 ahead of the bank of japan. earnings,policy a

kuroda says he is not trying to remove stimulus.his allows the boj to have a sustainable policy longer-term. they had to cut inflation forecast. the governor thanks that with wages rising more, inflation will move higher, but they added they are going to keep stimulus in place for an extended time, borrowing from the playbook of the fed and the ecb. doubling the range now for the 10 year jgb yield from 0.1 to 0.2, raising questions if they will be in a position to allow markets to push it higher should they choose. in a nutshell, what could have been a hawkish move, looking like a dovish move. it could lead to hawkish moves in the future. on the reserve bank of india, it is about inflation. inflation is sticky. our team says you are going to see a pause. as for the fed, there is no press conference. they probably won't hike the rate, but they will probably be scrutinized on a rate hike in september. ramy: stay with us while we bring in roberta -- roberto. he spent eight years implementing monetary policy for the fed. thanks for join

they were taken back to japan by general kuroda. and we know that we can see some of these other books that general kuroda took back to japan, had the bookplates steamed out. can you see the imprints. the other way you can know is there's writing of arthur macarthur in the notes. and usually can you tell a great deal about a person about what they write in the lining. or what they're underlining. douglas macarthur does not do that in any of his books. and long-time people wondered about that. you know, does this guy read? then you have the interview from dwight d. eisenhower, said macarthur was the only guy he ever met was a speed rider and had a photographic mind. the guy talks about being when he was a superintendent. people would come in with problems, macarthur would listen to them and he would stand up and walk back and forth and repeat verbatim what the person had said to him. during world war ii they had these staff conferences, this is attested to by many people who saw it many times, they would have be some staff meeting wh

quite a dovish news conference from kuroda. we see those jgb yields move lower, dragging global bond yields with them. we traded 2.95%. dollar-yen did not react much. since corona has spoken, we definitely seeing more downside in the end. now all 3/10 of a percent. a lot going on in the corporate space. let's start with pretty sweet. the swiss unit compensating for trading weakness. the best adjusted pretax profit in three years. most units beating estimates. storyof a different looking at standard charter stock. first half profits were up 34% but perhaps it's decline in cost is unnerving investors. it's one of the worst performers on the stocks it's hundred so far. we will speak exclusively to the cfo. we can dig into the numbers more. bp up 1.4%. happening boost reassuring investors somewhat about the financial stress after it announced the bhp shale deal last week. let's get the first word news. taylor: the bank of japan leaves its targets unchanged. the central bank said it will reduce the amount of bank reserves and negati

kuroda. -- absurdlyernment low. that -- tu japan has not succeeded in the goal of getting the economy stronger and inflation higher. the bank of japan has the goal of getting inflation above 2%. shery: how may times have we talked about that? >> decades. according to the latest reports, the core prices that exclude fresh food and energy, only up 0.2%. that is nowhere close to the goal. the bank of japan is meeting next week, july 31. people will be wondering what they will say because we will be getting new explanations of where they think they are and where they think they are headed. will the bank of japan continue to assert that it is on track for 2%? people will think they are not in touch with reality. shery: that is made global trade tensions. import have lowered prices. that is not getting them anywhere closer to that goal. shery: we are hearing from the g20 saying that the u.s. should return to the transpacific partnership. japan really not willing to go the bilateral way as president trump wants. >> i think

kuroda has proven to be pretty reliable in terms of understanding what the ultimate goal is. not about taking the markets or keeping banks -- tweaking the markets are keeping banks happy. it is about getting the economy to start to generate normal inflations. i am not surprised that they did not tighten policies like they -- and they added easing. i am concerned about the bank of england hiking this week. i do not think it is warranted given the downside risks from brexit, so we are unhappy with what we are seeing from -- but we are happy with what we are seeing with the boj. as long as they stick to their current path and suggest rate hikes are long way out, i think they are on a reasonable track, as well. it is not like everyone will follow the fed quickly. it will be delayed. vonnie: to bring it back to the u.s., will tomorrow's fomc statement have language changes whatsoever? ethan: yeah, there will probably be some tweaking, but basically, things are on track. inflation is picked up to 2%. growth looks great. not really 4%. that second quarter is a little of a fluke, but

haruhiko kuroda committed to long-term stimulus. we are joined by richard jones.start with the boj and then we will move on. the boj kept the policy variables untouched, but they did tweak some of the lingered and is sentiment. how does that change the spirit of what the boj is doing? richard: i do not think it changes it very much. when the announcement first came out, the initial headlines where that the boj was going to try to perhaps tolerate more to weigh risk in the market by widening their tolerance bands around their zero bucket for 10 year yields. the thing that took hold and what really weekend -- w eakened the yields was that they announced they were downgrading their inflation forecasts for this year and next year, 2020. they also said that they would keep rates low and keep monetary accommodative for the foreseeable future, for an extended period. net for net, we have not seen a big change, but the expectation is we will see more something material from this. they dragged global yields earlier, and a global weakening of the young -- yen. caroline: i'm

there has been speculation governor kuroda may tweak policy. what is the likelihood? kathleen: speculation is red-hot. at the very least if the governor of the bank of japan is not ready to fully announce a step towards a small but powerful, potentially important change in how yield curve control policy is conducted, it will be a surprise because whatever he announces officially he will be just smothered with questions at the press conference from just about every reporter who is there. speculation started a week ago, reports in the press from reuters, bloomberg and others, saying there is something in the works, a small change in yield curve control to let it not be just the 10 year -- not firmly cemented to zero, but something higher, maybe 0.1%. not a big deal on the outside, but if you are a bond trader or investor or the bank of japan who needs steepness in the yield curve, it is important. take a look at the chart. one of the gtv charts, you can see something everyone is watching closely, far right hand side of the screen. the boj has been coming in 0.11 to push

a roller coaster morning in japan and all eyes will be on governor kuroda when the boj finally meetstt: all right, quit of charts hillary clark, who takes the crown here? hillary: this is hard for me, the i must say i think annemarie wins today because of the impact it will have on the global market -- oil market. matt: definitely a financial chart because it picked up in the bush. we looked into this this morning. they listen to regulations in iran. yes, and that chart highlights what happens if the sanctions are reimposed. matt: thanks very much all of the for joining us. tadeo,e hordern, maria and hillary clark out of our control room controlling everything. you can see the charts and all others on gtv on your bloomberg. use them in your own work if you like. do cite us. it will be a huge week for earnings. we'll bring you a raft of guests, including ceo of ubs and exclusive interviews from the ceo's of anglo american and the cfo of ago santander. that's it for the european open. stay on bloomberg. surveillance is next. ♪ . . presidentthe u.s. counterparts,his warning consequ

the bank of japan likes to keep this in control so all eyes will be on governor kuroda next week.r to juliette saly in singapore. china has unveiled a package of policies to boost domestic demand as trade tensions that into worsen the economic slowdown. the measures announced after a council in beijing including a tax cut and fostering research spending and special fonts for infrastructure investment. they are intended to form a more flexible response to external uncertainties. u.s. president donald trump would agree to an interview with special counsel robert mueller's investigators if the questions were limited to whether his presidential campaign colluded with russia in the 20 election and that is according to his lawyer rudy giuliani. the president's legal team is concerned that robert mueller staff might believe witnesses such as james comey. that could lead the president -- that could leave the president vulnerable to a perjury charge. five potential witnesses against all manafort including accountants and bankers have been identified. -- hisge also gave him lawyer's more ti

. ♪ guy: the boj back in the market here in kuroda makes it clea

japan cpi, not good news from governor kuroda, but the marketing hong kong about to stop -- start. >>o manage cap flows of regulators may be tested. stocks on the mainland under prester. the large cap gauge extending declines for a fifth day. the hang seng sent to snap a three day recline -- decline. the offshore yuan 6.81 against the dollar. we can the most since june 2016. a closer look at hong kong. chinese telcos helping to lift that inch mark. we do have jeffries with a note saying chinese telcos, unicom and china telecom may be merged as the u.s. intends to setback china's tech ambitions. let me check it out. right there. up .3%. gaining onr stocks the hang seng, but health care under pressure. tech in focus. i want to highlight some stock movers of note. ps&c in the spotlight, rising the most in two years. foras upgraded by nomura smart phones like the iphone seeing recovery in the second half. that is not providing a boost to other suppliers, like sunny optical, down .3%. .8%.p rishaad: banks are being offered just does not expect an outright monetary easing. grace wu, what is

. -- kuroda's monster surprise. the backdrop is the yuan and the u.s. gets nervous about it.its course on the yuan depreciation. how does this change the calculus for policymakers? >> in the past, the official line from china has been they want to see a stable fx regime. the policymakers are very sensitive to being perceived to being tested taking advantage of these tools in the trade war -- to be seen taking advantage of these tools in the trade war. many economists would say the depreciation we have seen in the justified given the macroeconomics, given the facts. the fed is raising rates. exit -- bloomberg stillics a the yuan is overvalued. mnuchin, treasury secretary, said china is getting an unfair advantage as a result of the depreciation. said -- should the warning be taken on board, they would be calling on policymakers to step in to intervene, to stop the depreciation going for other -- going further. rishaad: we have lots of lines in the sand. is there another one now that the boj may have in mind? >> 6.8 is what we should looking -- be looking for for an indication