it is worth noting this is a person many speculate could replace governor kuroda if he finishes before his term is up. the pboc in china also trying to spur lending as they try to get more stimulus into the economy in china. boj, the pboc just now, r.b.i. raising rates. the bank of england is meant to be raising rates by 25 basis points. slight monetary tightening taking place in the u.k. we have a divergent monetary policy story across the world. seeing stocks lower in asia and hong kong. the yen is gaining ground in this risk -- risk off environment. andpboc race the fixing traders in the yuan with the spot seen around 11.20 against the dollar today. when it comes to stocks to watch on the mainland, we're seeing tesla gaining ground on the carmaker's plans to invest $5 million in a local factory. look at the laggards. in chinese stocks, oil under pressure. morgan stanley lowering that segment on concerns. stocks undero pressure. a disappointing report card when it comes to profit decline and drop in revenue. we also had -- casino revenue coming in lower than forecast, hitting stocks

to defuse melanie kuroda bob reporting for us from harare melanie thank you very much. now to a major change in germany's treatment of asylum seekers that the southern state of bavaria has opened controversial rapid processing centers for migrants these so-called anchor centers are part of interior minister of disputed plans to reduce the numbers of migrants arriving in the country the centers are designed to speed up asylum processing the aim is for each case to be decided within eighteen months asylum seekers whose claims are rejected would then be deported from the centers and critics say concentrating so many asylum seekers in one place could hinder integration and lead also to undress. and let's get more on the story with our political correspondent kate brady who joins us in our studio hi kate so how does this actually change germany's migration policy this change in the sense that any migrants coming in to the very end now will be sent straight away to these centers instead of two different local authorities so the main aim of the bavarian or sorties in launching

even though there was a big debate, economists said no, governor kuroda is not ready.hat is why they had to debate at least an hour longer than they usually do because they had to come to some decision and how to communicate it. very important, as well, they said they would keep this depending on conditions in the economy and markets, but they are going to keep these extremely low rates in place for an extended period of time. that is the forward guidance they added. that is the very federal reserve-like thing may have done , sending the signal that this is a policy that is going to be around for a while. >> apple jumping in extended trade after delivering an earnings beat in the third quarter and a strong sales forecast for high-end iphones and services. let's start with the good. >> yeah, the good. higher revenue, $53.3 billion, higher iphone revenue specifically up 23% year-over-year. very strong growth in services, and a clear path forward for the services segment for apple. wearables up considerably, 60% year-over-year. very strong all-around. sales, 3.7ws, mac mi

governor kuroda made it clear we andt want to race to 0.2% the deputy governor speaking yesterday madehe same kind of statement. he said if yields rise rapidly, the bank of japan will buy jgb's quote. that is what they did. today will they buy more bonds at the tenant clock a.m. tokyo time auction? that is what traders are waiting to see. ramy: flexibility is the name of the game, making sure everyone is on their toes. kathleen hays in tokyo, thank you. ahead, how trumps trade war could undermine china's leadership it we will discuss political implications with award-winning author richard mcgregor. haidi: is it time for a pause on the hike path? eric ames tells us why the central bank needs to keep home mortgages in mind. this is bloomberg. ♪ is bloomberg. ♪ china resources 40% partnering a holding company, heineken and china resources reaching this fact. there has been rumors of reports going back to march this year this was a deal and talks underway. china's largest brewer, talks tolly, was in get the heineken china business. this is part of a broader trend as we see the likes of he

governor kuroda and colleagues said they will maintain the 10 year bond target at 0%, but will be morelexible in bond operations. analysis says this is the longest wait since september 2016 when yield curve control was announced. this seemed like tweaking around the margins, but what were the important tweaks we need to pay attention to? >> the flexibility in bond markets operations, july 20, all kinds of press reports in tokyo including from bloomberg news, that this debate was underway. they need to allow the 10 year yield to go even above 0.1% let's start with the good. let's start with the good. >> higher revenue, 53.3 billion, iphone sales up 23% year-over-year, strong sales in the services and a clear path vice secretary of china held conversations on the matter ahead of the next wave of tariffs set for this week. >> anything agreed so far? >> nothing agreed so far and i would note this is also still under discussion within the cabinet in the u.s. what we are talking about right now is really the logistics of who will talk to who? when will we talk? where will we meet to talk? wh

francine: governor kuroda said they were going to take up more securities. is a success? -- why it is a success? >> the 10 year has been more volatile since they announced this. the 10 to 20 year curve has been steeper. it has steepened on average about two basis points per month. that is a gentle move, slightly above the base from what i can see. what they have done was disruption. if the curve steepen's too quickly, you will get a massive flow of money back into japan, the yen will strengthen, and the policy will backfire. this way they can slowly manage the currency and the yield curve normalization. it is so slow. it is a snail's pace. two basis points per month. you can see it. culturalin this is a reality the bank of japan has to deal with, the people japan and their ability to acquire debt whether it is institutional or retail. do you see that changing? >> no. it is going to take a long time to see this work through. japan has been in this deflation challenge or trap for a long time. they had qe before anybody else. the summarization of the debt load

governor kuroda and colleagues said they will maintain the 10 year bond target at 0%, but will be morelexible in bond operations. analysis says this is the longest wait since september 2016 when yield curve control was announced. this seemed like tweaking around the margins, but what were the important tweaks we need to pay ttention to? >> the flexibility in bond markets operations, july 20, all kinds of press reports in tokyo including from bloomberg news, that this debate was underway. they need to allow the 10 year yield to go even above 0.1% because of the negative side effects this was happening on the bond markets, regional banks dealing with a flat yield curve. that came through. even though there was a big debate, that is why they had to debate at least an hour longer than they usually do because they had to come to some decision and how to communicate it. very important, as well, they said they would keep this depending on conditions in the economy and markets, but they will keep these low rates in place for an extended period of ime. that is the forward guidance they added. t

kuroda is not going, draghi is not going, but it is the most important news to look forward to over the next 24 hours, over the weekend. what do you expect? i got really bad news and i hate to disappoint you, but i am not sure jackson hole will be very interesting. it hasn't caused a big moving u.s. yield since operation twist was announced in 2011. nearly seven years without a big reaction from jackson hole. that said, the one reason people are a little excited apart from not much else going on, is because of the large treasury shorts out there. this has not been going well for a while and yield has been drifting lower. it doesn't look like any hawkish talk can get them higher and --ple are worried there a there may be a change in the position. if so, it spills over to many other markets. even though jackson hole is not likely to surprise, you need to keep an eye on it. guy: mark, this is a weird one. donald trump apparently offered to buy btp's when he met with conti at the white house three weeks ago. why? what difference would it make. what on earth is going on? i am scratching my h

bank of japan may tolerate a higher yield on long-term bonds in the 0.2% limit given by governor kurodaat is if the summary of opinions is any guide to the policy. details from last week's meeting show one member wanted freedom for yields to move up and down by around 25 basis points on either side of the zero bound. this gives more ammunition to the expectations the boj could widen its range. ralf preusser, global head of rates at bankamerica merrill lynch joins us. what do you think of the boj? ralf: it has been interesting. but we need to take it with a pinch of salt in the same way we need to take the quantity guidance with a pinch of salt that the policy guidance talks about ¥80 billion. they are not even close to what the policy guideline is. equally, with the 20 basis points yield range they have signaled at the decision, they interviewed when yields were barely at 15 and now we are back at 10. i think we need to ultimately bojd more time watching the and divine what it is they are after and at this point, it is hard to tell. matt: there was a great reuters toop showing they had

bank of japan may tolerate and even higher yield on long-term bonds in the .2% given by the governor kurodaat is the latest summary of opinion. the details of last month's meeting showed one member had wanted freedom to yield to move up and down around 25% on either side of the 0% target. leader hasysian pleaded not guilty to charges of money laundering linked to 1mdb, as prosecutors's alleged more wrongdoing but the x premier. he was charged with three counts of. money laundering, and related to a from a unit of the state fund 1mdb. that could carry a punishment of up to 15 years in prison and a fine of less than five times the amount of funds involved. global news, 24 hours a day, on air and at tic-toc on twitter,. powered by more than 2700 journalists and analysts in over 120 countries. you can find more stories on the .erg at top we are just seeing a bit of a downside coming through in the nikkei which was earlier looking like it might hit a three-week high. the selloff moving in and late trade. the hang seng though is pretty .4%.supported, up about selling coming through in large-c

some very good news for the economy and shinzo abe and governor kuroda, but can they continue?st word news. economy expanded more than forecast in the second quarter, driven by private and business spending. annualized gdp up 1.9% against estimates of 1.4%. why that consumption up .7%, business spending jumped 1.3%, doubling estimates. >> demand is not strong enough to generate inflation risks. for corporate profits, if you look at the data, what does this tell you? an economy balanced domestic growth, running at around potential, which means corporate profits should be having very positive upside surprises going forward. >> the philippines central banker has reaffirmed his commitment to returning inflation to target next year. it raised its key interest rate by 50 basis points, the steepest rate hike in a decade. he says he will do what ever it takes to deliver on his mandate of stability. he said while second-quarter gdp growth missed forecasts, it was still a pretty decent number. indonesia says the number of people killed by earthquakes has reached 319. the island suffered

to it do you have a guest list yet >> i think you can expect the leading central bankers including kuroda and dragi almost always make it up there this is place, by the way, where some of these emerging market central bankers can communicate with federal officials and fed officials can hear back from them i remember in years past there was important communication that happened between the two about how all this is going to happen. and no one knows better than you, sara, about the effect of fed policies around emerging markets. i think that's something the fed will be mindful of and we'll hear an earful in jackson hall >> oh, yeah, thank you for that, steve. >>> coming up back to school season is upon us and parents with kids with allergies is facing a big problem shortage of epipens. >>> and jp morgan turning bearish on one food company. it has to do with the sour milk forecast for the market. we'll explain when "closing bell" returns. >>> and welcome back to "the closing bell." let's check on some stocks to watch here seven year low for dean foods. here's the problem, 70% of dean foods r

this underscores what we saw on the policy statement for the bank of japan and heard from governor kurodaconference. the boj have not made much of a change until they made this tweak to yield curve control policy. one boj member says it is essential to pay close attention to side effects. remember, the boj has been buying so many bonds, there have been times liquidity has completely dried up in the jgb, japanese government bond market. it was getting to be more of a problem, maybe a lot more of a problem. broadly, another one, the boj overall saying it is vital to make easing policy sustainable, by making it possible for the bank of japan to keep buying bonds by widening your range. one boj member said the long-term yield range of 0.25% will the appropriate. right now it is 0.2% on either side of zero. they talked about introducing forward guidance, that they would keep the easing policy and stimulus for an extended time. another member saying even more flexibility in yield curve control should be considered. i want to show you a chart from the bloomberg library. you can see how the boj t

mario draghi and governor kuroda are skipping this year's symposium.'s central tank says it is in no rush to raise rates. speaking to bloomberg at jackson hole, the governor said he has not ruled out cutting rates to achieve the banks inflation target. declines after the comments. >> we are no rush to raise interest rates. that puts us out of sync with the world. that will feed through the exchange rate and support our economy, but we don't rule out a cut if we have to. our task is to use the full inflation range. a cut is certainly on the table. oecdnew report from the suggests u.s. gdp growth will surpass china by 2040. saysong-running scenario the u.s. and india will swap places by 2037 as the world's economic might switch is to asia. india's share of the global economy will be larger than all oecd countries combined. president trump there is no justification for him being impeach, but warned of a blood park -- bloodbath in the markets if it happened, adding ordinary americans would be hit in the pocket. u.s. equities are in the middle of the longes

governor carney today i would suggest this is uniquely american and you don't have irresponsible with kurodaion with the governor. francine: we will see whether it is a responsible or not in years to come. we talk about one and done. from dnc current paribas.nc >> this hike is not as costly as some of the mistakes ecb and bank of england made in the past. this is not a justified hike. they're going to have to reverse it. francine: what are you expecting pound to do? popping up now. the only reason they would have -- if anything pound is overvalued given brexit and the trade problems. pound is going to overshoot. who the hell knows what happens in the next few weeks. it is going to be a lot lower than it is now six months from now. 7-2 vote forhave a high -- hike, you think it's a mistake. >> i think it's a mistake. by yournot bound mistakes or how you voted last time. each meeting is a fresh life meeting. -- live meeting. i'll think anybody should use that as a prediction for when they will or will not reverse. francine: let me ask you about the r-star. is it a useful tool? or just muddled t