and governor kuroda come in july'-- governor kuroda, in july, indicated he will start buying more ifes start to the wild. so that is the first thing you calm in the the market, but also gradually tapering off the purchase in the quantity, the purchase of the long bonds. >> so already in the july meeting, we saw him dissenting from -- when it came to the vote, 7-2. does that further signal more cracks coming in the next few months? takatoshi: i don't think so. i think the real side of the economy is doing so well. the gdp gap is almost zero or going to positive, and the unemployment rate is as low as what used to be in the bubble years. the outside is doing well, so there is a good reason that tapering should start now. people focusrt -- too much on the inflation rate, but the modern flexible inflation targeting as two variables, the real side and gdp gap and inflation rate, so this side is doing very good, so there is a good reason that you want to step towards the exit. haidi: professor, i want to talk about external demand, in particular how japan plays into these trade tensions. w

kuroda has been speaking, forward guidance from japan.ifferential, that is the differential between bunds and u.s. treasuries. between jgb said u.s. treasuries. corona taking the market forward. government bond yields are little bit higher. the bid to cover ratio, we had a bond action last night, the lowest bid to cover ratio since 2008. getting nervous in the bond market. indirect bidders bought 40% of the paper. that is down from 42.8%. gains are unlikely to above 3.5%. 23 pips at the moment. nejra: glencore boosting its buyback program by up to $1 billion. this is a red headline crossing the bloomberg. increasing its buyback program by up to $1 billion. increase and extension of the share buyback program is what we are hearing from glencore. getking of buybacks, let's something that the market was looking to hear from next as well. i brought you some of the lines earlier. , saying thee to add u.k. retail market remains volatile. they remain cautious in the outlook for the rest of the year. this after that first half pretax profit numbe

investors are eager to hear what governor haruhiko kuroda says after the meeting. tell us what to expect, kathleen hays joins us. our global economics and policy editor. is there a sense he might see something incrementally useful for markets, kathleen? kathleen: i think what people are interested in, of course, is going from the last policy meeting when the boj, after some well orchestrated leaks to the press, announced that it was going to do a tweak, a very important week, in yield curve -- tweak in yield curve control. it has kept that 10 year jgb yield at zero, so people have been wondering, after making the first adjustments and policy in two years, what does it mean? is it a sign of more to come? let's jump into the terminal now. i believe we are looking at some shots of north and south korean leaders. rishaad: kathleen, i am just going to interrupt you for one second because we have kim jong-un and his south korean counterpart there, president moon. they just signed an agreement. this took place after they had a military agreement find between the two natio

see all talk and no action from governor kuroda.n as we enter day two of the moon kim summit, which may see a joint press conference this wednesday. also want to highlight the aussie 10 year yield. hit 2.7%, tracking the move we saw in treasuries. in wellington, now gaining some ground up a 10th of a percent. extending grain -- gains for a sixth straight day even know the deficit is widening. haidi: thank you so much for that, sophie. looking pretty bright and positive. let's get you the first word news in the meantime with jessica summers in new york. jessica: china has confirmed it will retaliate against president targetingtest tariffs $50 billion worth of u.s. imports in response to washington's measures against $200 billion of chinese goods. the measures take effect on monday. although beijing says it is still open to negotiating a resolution. president trump has threatened tough action should china impose the new tariffs. >> we keep stressing that dialogue and consultation based on equality, good faith, and mutual respect is th

kathleen: but if you are governor kuroda, you are saying that that is a good direction.h me, the main number we will look at here and this chart is the cpi line.foods, the white it was last at 0.9, it is supposed to go up to 0.1. bloomberg's economics -- it was supposed to go up to 1.1 over year, bloomberg's economics analysts see it dropping. putting this into perspective with the meeting this week, in july, the boj said that they would keep the rate at an low.ded period very but tweak in yield curve control was aimed at keeping the rate that yield, to keep curve control of higher than 0.2%. people are worried about that. , this chart,t down i will try to do it right in the middle of the conversation -- i went to show yo an interesting story -- i wanted to show you an interesting story written by our bloomberg reporters in tokyo. the bank of japan is still higher than it has ever been, the rate of increase has slowed. this has to be reassuring to the boj on where they are heading. the more jgbs the by, the fewer they have to buy, that is the bottom line. i think what is

it is going to change for the last couple sessions after the bank of japan held 30 and governor kurodaected the speculation that the boj would -- 20 more coming up on daybreak asia. this is bloomberg. -- plenty more coming up on "daybreak: asia." this is bloomberg. ♪ haidi: 30 minutes away from the major market open. we see a bit of a mixed picture across asia and futures. a rainy day in sydney being reflected in that tepid start that we are expecting. shery: also reflected in the stock market. stocks closing higher. the dow was boosted trade sensitive shares such as caterpillar and gaining ground for another session. you are watching "daybreak: asia." let's get the first word news with jenin -- jenna dagenhart. jenna: the frosty relationship between president trump and jeff sessions has worsened dramatically. trump says his dissatisfaction goes beyond the decision to step back from the russian inquiry and it quits handling of and what heissues said was poor performance at a confirmation hearing. the white house says they will nominate an economist one of the vacant seats on the board

kuroda's two-percent inflation target and when you have a shrinking population, it is hard to createhe bottleneck in the supply chain that creates inflation. 2% andmply can't get to we will forgive them that because that is a big ask. ashiba doesn't have a chance in the lvp leadership abe will today and mr. probably come out with 75%, which is a very compelling victory. david: tom murphy, investment advisor with escala partners. a reminder for our partners, gtv go. this, a chart to library. you can even save those charts for first year -- future use. check it out. this is bloomberg. ♪ rishaad: the united states is calling for a new round of nuclear talks with north korea after this week's summit between kim jong-un and secretary -- president moon. david: welcoming the promised to dismantle the missile test site. perhaps might be on the way. welcome news here. >> happy to be here. is afternow so far mike pompeo welcomed the statement, a lot of analysts are looking into what caused mike pompeo to welcome the statement along with other u.s. officials looking into the joint by thetion de

governor kuroda himself said that is not a good thing when there is no bonds traded. we saw that just last wednesday, no trading in two-year, five-year benchmark maturities. what we are seeing today is the bank of japan is not doing much more to taper. haidi: do the market participants think this will work to inject a bit of normality back into the market? >> not at this amount. there are the outliers, j.p. morgan, for example, are saying you should go ahead and short 10 year bonds in japan. they do think yields will pick up a bit. by and large, most market players are saying the changes from the bank of japan will are -- are not sufficient to restore price discovery mechanisms in the bond market. --are seeing different seeing depressed volumes even in recent days. haidi: always appreciate your time. the cross asset managing editor in tokyo. we are going to stay on the theme of bonds. the benchmark 10 year yield for china climbed to a two-month high in august. says now is a good time to start buying chinese sovereign bonds. joining us is tianhe ji, who is the bnp pari

question, the governor kuroda would be very happy. you could argue it is just tapering.he bank of japan has made clear it is not focused on quantitative easing anymore then it is not focused on asset purchases. when the market conditions are appropriate, when the yen is not surging or appreciating, the bank of japan takes these opportunities to trim back its purchases. we are seeing reaction in the bond yields at the superlong and as a result today. you can also put this in the broader context of central banks around the world continuing to focus on pulling back their extraordinary stimulus that was in place for a decade. this move by the bank of japan today is probably in keeping with norway raising interest rates for the first time in seven years just yesterday. it is another reminder that the era of easy money is sending. -- is ending. nejra: thank you so much to our asset managing editor. joining us now, the chief economist at wells fargo u.k.. let's look at what has happened with the u.s. benchmarks. i showed the chart at the top of the show. the dow catching up wit

kuroda leading the boj with widening the ban for yield curve control, the band around , an for that 10at, when they are ready to a, that is one of the doors a could start walking through. the boj has been careful not to that.at -- to contain at the next meeting, it will not be so much of a focus. we will have to wait until the when there is a monetary report. the trade deficit is expand by higher oil prices. not a full speed ahead for the boj, but makes them feel a little less concerned. haidi: a robust scenario. thank you, kathleen hays. coming up ask, jack ma is preparing for the next age in his life. we are on the watch for him to announce his retirement from alibaba. the latest in just a moment. this is bloomberg. ♪ ♪ is daybreak asia. jack mize expected to step away monday from the company helped launch to focus on his first love, philanthropy and education. he told bloomberg last week he is looking for a change of life. several sources say he will make that announcement today, his 54th birth day. and veryk, someday soon, i will go back to teach, go back to education. this is some

we are waiting to hear from doj governor haruhiko kuroda. likely to stay away from saying anything that might move the markets too much, specifically that might strengthen the yen? michael: that is the big fear. you rightly say the boj is behind everyone else normalizing, but the reality is the boj is in fact laboring. there asset purchases are falling. they are not buying as much. i think they have the slightly conflicted policy setting where they have the yield curve controls, the yield target, also an amount to buy, and i think there is a tension between those two things, and i think the reality is there is a reluctance from the bank of japan to drop their asset purchase target because they are scared of looking like they are taken into much. nejra: and therefore perhaps strengthening the yen, but is the yen actually undervalued by some measures at the moment? michael: we have a metric which suggests it's very cheap, 15% undervalued. it really should not be that concerned. in the context of concerns about global growth and also because, l

governor kuroda should be very pleased. as should prime minister shinzo abe.nderpinning the economy here, they are good numbers. what is also quite interesting as we see there has been a lot of investment in laborsaving technology, which is very good in japan given the labor shortage. off and that is a bad thing for japan but right now we are seeing investments make up for that, which should increase efficiency in the japanese economy. all in all that is very good. we saw nice improvements with investment in the automotive sector, the semi conductive sector, two strong sectors for japan were automation is a very strong thing. all in all, some very good numbers today. haidi: what is the risk outlook, though? brett: yes, there is a risk outlook. it is very hard to see better numbers in the third quarter. quite often after such a strong number like this you see something of a pullback. if we look at the outlook, the --gest [please stand by] local demand is not so strong. we need a pickup and local consumer spending, not just consumer spending. definitely another