kuroda speak. japan's inflation target, it is going to be at least 2021 until they make that target. i wonder if he will refer to qe? nejra: let's get back to the earnings. headline, third quarter business net. 2.3 billion euros. a comfortable beat on the third quarter business net. for sanofi. let's go through some of the other numbers, third quarter sales, 9.3 9 billion euros. the third quarter sales coming through. third quarter, 2018 performance, confirming a return to growth. that is what sanofi is saying. sanofi's new cfo saying he is seeking efficiency and agility. saying they have a small exposure to the u.s. plan to cut prices. that is important to note as well. numbers coming through, fourth-quarter revenue, $430 million. the estimate was for $42 million. $442 million. estimate was $379 million. we are waiting for another results to come through. panasonic. a flight of two all of our viewers. we have a tliv on the bank of japan. panasonic, i can tell you this, have delivered their numbers

yesterday he said he trusted governor kuroda.e see some sort of ministerabem prime about focusing not that much on the 2% inflation target as well? going back to the point, i don't think boj will walk away confidently with a negative interest rate policy. they will continue with the self tapering but nothing drastic will be coming out from boj. if you look at politics, it's so important that it would take a lot of capital from boj to jump on something like that. kathleen: i harken back to my ,nterview with governor kuroda you say this is not self tapering. yield curve control is what matters. keeping the anchor at zero for the 10 year will make it function better but were not removing stimulus in that way. you don't agree with that? think the are continuing with the self tapering. away, butot walking they're putting in tweaks bit by bit. looking at the pasture action , mainly the rhetoric that mr. corona had since last boj, and there are several published papers that you can take a look at. up paper that boj published, basically

kuroda: that is right. kathleen: that was easy.puroda: we continue to around 0% jgb interest rate. there withkuroda kathleen hays speaking about monetary policy. global risk this morning is being reassessed. money is flowing into dollar-yen and euro-yen. sign of anya for a exit would be an bond yields and he is talking about inflation. he is talking about rate hike and really recommitting the bank of japan. risk off this morning in terms of usa, fed and trade, a additional tariffs, all takers to risk off momentum, dollar-yen. nejra: we are seeing that and other assets. gold has been in the session with still above $1200. we are seeing the 10 year treasury yield take a little lower on a three-year 15 handle. saudi threat.mp's the u.s. president warned of severe punishment if a kingdom is linked to the disappearance of washington post journalist. we will look at the impact in the oil market. we will speak to the microsoft time.ter 10:30 u.k. this is bloomberg. ♪ manus: it is time for your business flash. ceo jamie dimon has become th

governor kuroda saying it is at 1%. we will keep things where they are.es to the 10 jgb. interestingly the imf and world bank meetings in bali. we had more information about this u.s.-japan trade talks. competitive to devaluation is anotherthis, so indicator of currency trade, how the collateral damage is being wrapped up, and japan is one of the most vulnerable nations given how export dependent it is. wondering if there is something we saw in the nafta 2.0 deal. they did have a currency cause. any country tode have a free-trade deal with a nonmarket economy, in other words, china and we will see what comes out of these trade talks. if you missed out on any of the stories that we showed you through our programming, dayb , daybreak, has all the stories summarized. dayb on the bloomberg am of the bloomberg anywhere app, customize your settings. this is bloomberg. ♪ ♪ haidi: a quick check of business flash headlines. athenahealth is attracting interest from five potential bidders as auction for their health record technology company begins. these c

don't miss our interview with governor kuroda.. ♪ ♪ david: the imf and world bank meeting left -- wreps up with a clear message, trade tensions are already hitting. yvonne: governor kuroda was among the voices calling for the u.s. and china to settle differences personally -- urgently. he talked about how he thinks it will play out. after the negotiations has been successfully concluded with canada and mexico agreeing to the conclusions, and with you and with japan, u.s. will continue negotiating discussions , discussing with trade sense,nt, and in that there is no trade war. only between the u.s. and china there is tension rising. retaliated inady response to that. [indiscernible] issues,ng those trade this u.s.-china conflict is most difficult and most serious. since any trade conflict or to maker who tend negative impact on both sides, eventually u.s. and china would in a constructive manner. the yen, which has been weakening of it, how important is that trend which could continue with dollar stronger, trade war in terms of hit

we are waiting on the boj decision as economic headaches mount for governor kuroda. set for gainsd be despite the industrial output data we got this morning. that is a potential achilles heel, managers remain negative on the kospi outlook. results will be closely watched. expect to post record profit, shares have tumbled 70% this year. we have quite a few earnings out of south korea and japan. bank prospects are muted because of wholesale and retail businesses. let's check in on the banking stocks. in sydney, picking up earnings for aussie banks come up full-year cash profit did fall 16%, dented by the misconduct charges and the housing market. we are seeing a bounce of the stock up 1.3% at the start of the session. bank, --lth shery: let's get the first word news with jessica. jessica: president trump is trying to talk up the economy and divert attention away from social divisions a week away from the midterms. he tweeted consumer confidence is at its highest level since 2000. consumers are not worried about volatility in the market. the s&p 500 has lost 10% of its

it accept governor kuroda -- backs of governor kuroda's guarantee.ere is a new contract that would award -- would pay young players more than before. it could challenge the ncaa's lock on development. chinese stocks are headed for their steepest gain in a month. that is after the price per topr reported other officials moving to shore up investor confidence. in a rare show of support, the heads of the central bank, banking and insurance regulator, issuedurities regulator statements. joining us today is the head of investment grade credit europe. happy friday. great to have you with us. what a busy they in the markets. volatility is the name of the game. we are seeing u.s. and european futures pointing higher. what is your take on what is going to drive equity markets? >> we are in for more than a doozy. we are approaching the pale end of the cycle. be it in the u.s.. notthoughts are in europe, quite as close to the end of the cycle as maybe we are in the u.s.. expecting volatility. background as well, you have what the fed is doing. hiking rates. our

kuroda speak. inflation target, it is going to be at least 2021 until they make that target. i wonder if he will refer to qe? nejra: let's get back to the earnings. headline, third quarter business net. 2.3 billion euros. a comfortable beat on the third quarter business net.

plus, christine lagarde and governor kuroda with insight from the imf meeting in bali., more from a big week in corporate earnings reports. johnson and johnson among the companies quite happy with the result. >> we saw strength across all three segments. rishaad: this is bloomberg. ♪ rishaad: this is "bloomberg best." with moreinue earnings reports from prominent companies, starting with a blowout set of numbers from netflix. >> netflix one of the least loved stocks after posting third-quarter earnings and subscriber growth numbers well above expectations, and a good fourth quarter forecasts. >> the forecast for the fourth quarter was the one that surprised me because it is the only time i have seen a nine in the subscriber addition for them. the more i dug into the international numbers, even if they miss their forecast they are posting growth quarter after quarter after quarter, which suggests it will slowly build another markup, europe, asia, latin america, continues to be true. >> johnson & johnson reported third-quarter results that beat estimates and braised full

and christine lagarde and the bank of japan governor haruhiko kuroda have insight from the imf meetingsrom a big week in corporate earnings reports. johnson & johnson are among the companies quite happy with the result. >> we saw strength across all three of our segment. >> this is bloomberg. ♪ ♪ this is "bloomberg best." i'm rishaad salamat. let's continue our global tour of the week's top business stories with more earnings reports from prominent companies, starting with the blowout set of numbers from netflix. ♪ >> netflix, one of the best stocks after posting earnings well above expectations. we also have a pretty good forecast for the fourth quarter subscriber growth. >> this forecast in the fourth quarter was the one that surprised me. it is the only time i've ever seen a nine for them. the more i dug into the international numbers, even if they had missed their forecast this year, they are posting stronger growth international order after quarter after quarter, which suggests that this idea is it will slowly build another market, whether europe or asia or latin america, and that

kuroda: this is the biggest point.arrow it is, sometimes there are buyers and no sellers. , thekind of market function is not good. importantly, bloomberg news broke the story that some of the officials of the boj are in favor of moving that top of the 0.25.0.25 -- to they reported that the boj is going to discuss ways to make trading more active at this meeting. lawyers reported that they are looking at changing the way they do their bond buying operations. it seems to me there is a chance that we will hear something. >> you will keep us updated in japan, a week. thank you for that. let's toss it over to haidi. in melbourne. haidi: this is the managing director. this is a metals and mining company. , this ises aluminium graham. you just came fresh off the stage. you are getting a gauge of what the mood has been. graham: a lot of uncertainty. there are a lot more people here than in prior years. even though there are uncertainties, it has been a wild year. >> a wild year for the markets. >> we produce aluminium. chainp

i will be covering governor kuroda's press conference. >> thank you.thleen hays with the former boj assistant governor. we can turn to bloomberg for more on this. kicking off in about 10 minutes from now. having a look at what is happening in the headlines. as soon as headlines break, we give you instant analysis. this is bloomberg. ♪ latest business flash headlines, mitsubishi taking a big step toward becoming one of 15 largest asset managers. $2.9 billion consideration. asset managedo by. accelerating the commonwealth shift to more profitable business. yvonne: lenders having an auction -- after other offers were tabled. to respond to a warning the opportunity to match the offer was expiring. creditors will trade the debt they hold for 85% of the struggling company's most valuable player's. -- assets. rishaad: mark zuckerberg saying he is betting the future on video, not the famous newsfeed. 2019 will indeed be another year where they will spend more money, third-quarter revenues, profits ahead of projections. next year will be, you could argue, a fel

let's start with governor kuroda's press conference.ty clear the policy is not changing anytime soon. kathleen: there may be tweaks and conjecture and speculation about how those tweaks could lead to an eventual pulling away from all the stimulus, but not yet. thernor kuroda underscored biggest picture has not changed from an other words, they've made some progress. the boj had to cut its inflation forecast in its monetary policy report. it's important to do these ,weaks to yield curve control the range has been widened, but don't expect any big changes on any aspect of the program, the governor made it clear. that's what the story is for now. >> i have no intention of changing the current gold of guiding around 10% right now. we will keep taking necessary measures to improve market functioning. kathleen: there's been conjecture that one of the reasons the boj might want to allow the yield to move higher is because banks are struggling to make money. the flatter the yield curve, the concern is there taking on riskier loans to boost prof

meeting, they mentioned they would allow more flexibility in the marketsm an -- markets and governor kuroda signaled 20 basis points would be the upper limit. whatever they do today, they will send a message to market. they will either ratify it at 15 or if they stay out, think that people will think 20 basis points is the limit. yvonne: time looking at 3.18 on the 10 year note. the highest since 2011. can we call this capitulation? is the selloff going to continue? mean, the bull case and treasuries is becoming increasingly hard to defend. number,his big ism services or the nonmanufacturing part of the economy, which seems to be the latest trigger for the rise in yields, but that is really just the latest strong economic number. talkingjerome powell about more gradual hikes and also have him talking about how policy is still accommodative, but could be pushed up into a restricted area -- restrictive area. that is the backdrop for more rate hikes and higher yields. now what we are seeing is higher yields will spread from the u.s. we are seeing that in australia and japan, and it is a warnin

is there anything governor kuroda could signal that would change the way markets feel?s take a look at our latest survey. they see more and more focus on the 10 year because it has been tweaked, widened. the top-notch is 0.2%. considering they have anchored posts to zero, it is a big deal -- close to zero, it is a big deal. 63% of see them changing the inflation forecast. year-over-year, halfway to target again, 90% don't expect the fed to take extra action to counter the 2019 sales tax. i think people are also putting focus on this range. it could between again, bloomberg hearing from its sources that there are those in favor of widening it to 0.25% because of financial stability, regional banks needing a steeper yield curve. number economics is looking for any references to a global slowdown, not just europe and also china. these things that could come out in their policy statement, monetary, and the press conference. the tuesday meeting starts wednesday when it wraps up. haidi: thank you so much. kathleen hays in tokyo for boj week. midterm elections a week away now.

francine: that was the bank of japan governor kuroda speaking to bloomberg.ackrock still with us. where weconversation talked about some of his policies and the targets he was having in place. you are bullish on japan and japanese equities. rupert: if you look around the world at developed markets, japan stands out. we do not see fundamentals changing. vulnerable, toe the nsa risk off haven. world,u look across the that can remain the case for a long time. i think the domestic nominal demand seems robust. that thisot a bank yield targeting is in place. the adjustment was in order to keep the basic strategy in place against critics. combine that with corporate governor's reforms. this looks like a positive story. francine: when you look at tensions on the market and the equity selloff and the fact that got a bid, and yen does this mean the dollar is no longer a haven? it will act as a haven in extreme risk off scenarios. and dollar safe haven assets are 85% of global safe haven assets. the dollar will benefit. on a medium-term, i find it her do see the dollar

we are waiting on governor kuroda. coming up next, rio tinto c.e.o. us from the international mining and resources conference taking place over the next couple of days right here in melbourne. lots to talk about. he's been spending time in china. we'll be picking his brains about whether the tone of things has changed given the domestic slowdown and given that we may see a doubling down in this trade war. this is bloomberg ♪ . >> it's 9:30 a.m. here at the international mining and resources conference here in melbourne. markets open for trading here in australia in just 30 minutes' time. it was a whipsaw session. the dow swinging 900 points in the overnight session on wall street. we are looking at early declines when it comes to the sydney trading starting in 30 minutes' time. certainly this volatility and the wild ride continues in the equity markets. >> i'm in new york. where it's 6:30 p.m. you're watching day break australia. let's get the first news. >> thanks. sources in washington say the u.s. is preparing to slap tariffs on all chinese imports

bank of england and kuroda. thursday it is all about the bank of england. the rate decision, the flechette growth,nflation report, and spending. what can carney say to the market? nejra: let's get to stephen bell, our chief economist who is still with us. let's kick off with the u.k. looking ahead to this budget. hammond goingilip to need to ramp up spending? it looks like bond traders will give him a pass. steven: usually the chancellor is presenting a budget where things are going in his favor. growth is disappointing and this time around it is a lot better than the admittedly gloomy forecast a year ago. because it's done by the independent office, no one will say that the treasury is fiddling the figures. minister has made lots of spending pledges which he probably didn't agree with. of globalthe kind rabbit out of a hat type of chancellor. i think is going to be a cautious budget, that's his middle name and he doesn't know and we don't know how brexit is going to be so that's a double reason to be cautious. manus: can i ask you, just how bad will the gr

kuroda saysvernor they will reach that 2% inflation target.is watching is wages. look at how tight the labor markets are. we are going to get there, he says. until then, yield curve control. until that's yield curve target gets off of zero, no change in policy. it will be interesting to see be policy changes. 's recent financial system report was pretty sanguine. axis can build when you keep rates -- excess can build when you keep rates so low for so long. insurance companies in japan are saying yen denominated bonds are more attractive. but the focus is nuance. if we did get a tweak, it would be a surprise, with the trade war and the consumption tax hike. 2019, another reason for the bank of japan to sit tight. haidi: kathleen, thank you so much for that. be sure to tune in on friday. up next, trump's trade war narrative is headed for a plot twist. with that could mean for global markets. this is bloomberg. ♪ shery: this is "daybreak asia." incomeubs reported net which toppled estimates, as well as trading results, better than most of its pee

kuroda said when 2% inflation is close, policy makers will be able to change focus, but inflation remains around 1%, so there is no likelihood of imminent change. wages ally i think .ould be the main sustainable rates are accelerating in recent months. whether this continues or not would be very critical. >> sterling fell as much as halftime a percent against the you're after negotiations with the e.u. dominic robb traveled to bluffles, but talks were then put on hold. that indicates another diplomatic disaster for teresa may with key meetings postponed. a potential ally of angelo merkel has lost its majority in bavaria that could have implications at the national level. the christian social union is on course to take 37% of the vote. that is down from more than 47% of five years ago. that would be the c.s.u.'s worst performance in a state it has dominated since 1950. a south korean newspaper says north korea is in such dire economic straight that it can't afford to renege on making hanges to the nuclear program. jean-claude juncker says he understands. global news 24 hours a day on air o

perhaps it could set the stage for the meeting this month, because we have heard that governor haruhiko kurodafinancial health of japan at the moment. bae is saying this could be some insight on the potential of any further tweaks we could see in the boj policy framework going forward. that could be interesting to watch. >> and bonds, looking ahead to the other events this week, after 150 basis point hikes, what will it do? investors are i think that decision, hoping for a boost to its nascent recovery. there has been quite a difficult time for them. saudi's fii, davos in the desert, there have been a string ofthere has been quite a diffict time for them. pullouts, including christine lagarde and techs. asian earnings as well. -- a busy sands china week ahead. that's it for bloomberg markets: asia. "daybreak: middle east" is next. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond h

>> well, riskier is this you know, i don't want governor kuroda, it's too early to think about the exit as we talked about earlier, at the n is still 0.4% core. so i think b.o.j. -- many people that, but him saying then he is right in saying. saidving said that, having that, well, exit has to happen and i do think rather than the i think bank of japan the curve slightly, slightly upward. is a sensible strategy rather than focusing on quantity. haidi: i want to get your views recovery in particular, the demand for japanese goods. want to offer this chart, it didn't bounce back following the tsunami. after 21 months in growth and export, the data yesterday, have reached a peak when it comes to how the trade picture is to look for japan? japan ink so, i think needs to become less and less competitive in manufacturing. auto industry is one of the remaining competitive point, es, but at some japanese will probably lose the ompetitive edge even in the auto industry. so i think rather than, i think japan needs to start to move on areas such as services. thank you for your insights. now for a l

global stockmarket rally to be reflected in the monetary policy report, anything we hear from governor kurodace after the meeting? kathy: i think it is a bit too recent, the global stockmarket selloff to be reflected that directly in any comments that may come out of the governor's remarks after the meeting that closes this wednesday. i think they will be very howful on how they phrase they see the economic landscape in japan, what is their outlook for example for gdp growth. our economists expect them to bring down the forecast for japanese gdp in 2018 on the back of slower growth in china am a natural disasters -- china, natural disasters in the summer, etc. you might see reference to volatility in asset markets globally. they just released their financial stability report. he might also make reference to some of the conclusions in that piece that referred to what happens if negative rates, low interest rates remain intact for a longer time, what impact that could have, for example, on the domestic banking sector. were not expecting any major given there are more volatile conditions in asse

remember, governor kuroda mentioned this at the last boj meeting.nected to the sentiment we have to tweak policy, let the 10-year yield go a little bit higher to support ranked balance sheets. how will he tie that together? what will it for their meeting a couple of weeks from now? the next thing on my list is bank indonesia. they are meeting on tuesday. five rentech since may. consensus is that they don't need to do more because the rupiah is stabilized. they talked about being preemptive. they see one more 25 basis point rate hike. the european central bank, no signals expected. continue tapering off their bond purchases, even though we have the italian budget battle in the background. it has been hitting bond markets. but they will look past that and i assume that they will have that settled long before they have to make that eventual rate hike next year. -- raphael bostic of alanna saying that the fed is hashogging the jamal k murder. he said, in case there was some thing like sanctions on oil that would hit that market, raise that price. and i

based on the conversations of governor kuroda over the weekend and the imf itself.nger-term, dollar-y en downside, but it is still one of the safer options in light of the uncertainty we have. are undeniably cheap and attractive from that perspective, but do you think a rebound in emerging markets really depends on this trade situation showing a distinctive improvement from the stalemate we are at now? jingyi: i think, in terms of the e.m. situation, i want to zoom into asia, given the fact the trade tensions are causing sentiment-driven reaction. if you look at the indicators, a bit of a slowdown, chinese pmi dangerously close to the 50 mark. but nevertheless, still in expansion territory. that said, the markets actually turned a little, in light of the trade tensions before the last round of tariffs, the exchange between the u.s. and china. but nevertheless, we see the situation worsening through asia-pacific markets. trend has beenwn renewed. a lot of sentiment-driven trade, regarding trade tensions between the u.s. and china seems to be the case, as there is a l

kuroda saying that the big picture on inflation is basically no change. the inflation picture has been picking up. andrew: the inflation we have been seeing is a more of a cyclical phenomenon. it is not a surprise we are beginning to see labor rate pick up. middle income and, i think labor costs are still contained. we are not worried about ,nflation over the medium-term this is just a bit of a normalization in the inflation rate. matt: we will keep you with us, a lot more to talk about. andrew perry, head of sustainable investing at hermes investment management. up next, we will bring you the stocks. we are eight minutes into the trading day. has risen after third-quarter results impressed investors. the shares are up in madrid. we tell you more about that next. this is bloomberg. ♪ anna: welcome back, this is the european open. 10 minutes into your trading day. let's get to the top stock stories need to watch. >> we are looking at a lot of earnings stories, all green. what it comes to telefonica, trading at a two-month high. they have doubled their full

how much of a nightmare is this for governor kuroda?ave already seen that the bank of japan has not really been able to influence the outlook for inflation with the policy actions they have taken. they are to -- more dependent on what the rest of the world is doing than what they are doing themselves. that in turn will drive the young lower. -- yen lower. francine: how much more could yields be rising considering the selloff in treasuries? what does it mean for boj policy? james: i think the bank of japan will want to raise rates, surprisingly. simply because japan's consumer is now reacting negatively to the low rates. but the rates up, interestingly i think japan's consumers would spend more money. francine: are we now on uncharted territory? elsa: i agree with james. we also have a call for u.s. rates at the end of next year. is it uncharted territory? , it's still a relatively low inflation environment with good growth. francine: overall does it change actually the perception that the chinese have for treasuries or not? is there a l