the central bank with kuroda, that policy should remain. annmarie: everyone is talking about the note j.p. morgan put out about the yen going to 100 if abe would step aside, and the copy it that president trump would have to lose the election. that presidentat trump would lose the election. paul: we think the dollar will be week anyway? loose monetary policy in the u.s. be strong will against most of the major currencies at times, but it will be weak. that begs the question, can the yen be weak in that environment? currencyas a major instead of the dollar or the yen. i think the japanese currency could be undermined by political uncertainty. annmarie: we have to hold it there. paul brain, chairman bond & fx, newton investment management, thank you for joining us. more japan, next. this is bloomberg. ♪ experience the ultimate sports hub. where you can find games, news and highlights. all in one place, right on your tv. the xfinity sports zone. use your voice to search every stat and score. follow the teams you love. and, even get notificatio

talkingmething, we were about japan earlier, that the bank of japan discovered when governor kuroda andde the commitment to overshoot. that was met with a lot of skepticism as well, whether they would be able to get to 2%, let alone overshoot. but the way central bankers are thinking about it is even if you don't get that overshoot, even if you may be skeptical about that, the risk that you get a exogenous shock, in the counterfactual that you could slip into deflation is worse, so i think this is a response to that. anna: thank you very much for your time. we appreciate it, kamakshya trivedi of coleman sox, state -- of goldman sachs, staying with us on the program. let's discuss this breaking news on the fx markets. credit suisse uncovers client fraud at its wealth management unit. the company saying that clients affected by unauthorized actions. they took a $10 million loss after the unauthorized client actions, so that is a size and scope line for you. they outed the banker who forged acumen tatian -- who forged documentation. no doubt there will be further response from the business

kuroda try to take the bank of japan as far as he could in terms of quantitative easing. the inflation rate is 80 indicator. what is going on in the global economy will be as influential in terms of japan's choices and the policy set by the central bank. david: demographics play a large role and a shrinking working population cannot be a good thing structurally. part of the reason to bring women more into the workforce was to address that need. this is the largest challenge over time for japan. demographics are not deterministic, but they are major factors in long-term growth prospects. one of the pieces of that structural reform package that was difficult was labor market reforms. if you talk to any economist sitting in the major institution in tokyo they say you have to free up the impediments to a global labor market in japan and the structure of japanese companies, lifetime employment. women was one of the pieces of the puzzle. the second piece is immigration. unless you open up japan to a free flow of workers and laborers across different sectors, if you do not let t

will companies keep using offices post kuroda it's a valid question a lot of workers have been loving home office me included manages have had to let go especially the control freaks but if the job gets done why not the savings the bosses certainly becoming clear. james brincat is one of the few people working in this place will building his company vantage point consults for the financial sector and an office here is a status symbol but since the pandemic offices in conference rooms are less important to him he says in future he'll just rent space when needed. this is an expense for a small medium sized business was an expense we are all incurred if we didn't have to. and by saving that expense he can clock up 15 percent more profit at the end of each month by going office free it's a completely new model and it may be a permanent one. some people are even calling it a revolution triggered by the necessities of the pandemic if it takes root it could make at least the open floor office in london superfluous yet commercial construction is still going on all over the british capital. th

kuroda?t about mr. -- to deliverbe shock and awe. continue hisda term? does monetary policy at the boj change in any shape or form? >> he will stay through his 2023.which will end april still 2.5 years. says the governor will if heside -- resign becomes incapable to carry on the duty. to protect the independence of , it istral bank important he stay on until the end of the term. kailey: independence aside, barada -- what about the path or policy? boj reduced rates four years ago, it does not have a lot of maneuvering room. japanoes it do next as competes with coronavirus? >> four years ago, boj introduced the negative interest rate, which turned out to be unpopular. on pop there among banks, which cannot pass on -- unpopular among banks. flattened.urve was later in the same year, boj introduced yield curve control to make sure there is a slope between organized and 10 year bonds. introducedmr. kuroda so-called overshooting -- which turned out to be very similar, or the same as mr. powell. he has done a lot of communication and guidance. expectationy, the

in.rought kuroda the idea was to use monetary policy aggressively.apanese economy still remains in a difficult place. at what point do you think the new japanese leadership has to reassess what they are doing rather than continuing what abe started? derek: to be fair, we can measure success in different ways. what i've been highlighting to clients is before covid came along, we actually had 39 consecutive months of positive coordination wide cpi in japan. that is the longest run of positive inflation since we had the first episode of deflation in 1995. why we did not get through the 2% target, i think it would be a little bit unfair to criticize japan in not achieving that goal when you consider the problem central bank globally are having in terms of achieving a certain level of inflation. the fact we have a positive inflation is an achievement in itself. there are other areas like on the physical side, although the side,-- on the fiscal although the basic balance will not be achieved in terms of the primary budget balance back into positive territo

monetary policy, and kuroda is not going anywhere anytime soon.hat's a comfort to investors because that is one pillar of the abenomics policy that is staying in place regardless of who is going to be leaving japan next. and it has been a powerful force driving japanese markets the past decade. as long as the bank of japan will stay steady on its policy goals and have kuroda at the helm, that will go a long way to languishing market fears over the transition in power. matt: we keep getting these hands that investors may be are going to consider european stocks because they think they are going to make up the difference. they lagged u.s. stocks. or we see bunds, for example, now trading at -40 basis points. that's the highest since june. or you can consider the least negative since june on expectations of an economic rebound. yet u.s. tech stocks are now worth more than the entire european market. stocks point do european start to become attractive? kristine: yeah, it's again, a good question. i think the rise in europe has been in call time and ti

lack of a market response and dictates that the true person in charge is really defective japan's kurodaan shinzo abe at this point. michael: definitely because the markets are reacting to what is happening with the central bank. the stock market has gone up in japan because they feel like they have gotten themselves out of deflation. there hasn't been inflation, but they've had this qe program for years now, putting extra liquidity into the market, so as long as kuroda is there and following his do whatever it takes philosophy, than people in the financial markets are going to think life is as good as it can get. tom: the big issue here, the fear of japanification in europe, and now in the u.s., and that is why the fed acted, etc. texas is the dynamo of this nation. we all know that. are we at risk of a japanification of robert kaplan's texas? michael: i think if you said that down in texas, you would get thrown out of the saloon. tom: that's happened. [laughter] lisa: nice moving on from that. michael: lisa, you can ask him about that later. lisa: oh, i will. michael: this is an intere

for artisan on clothing off air in order to properly pay all the work in the production chain the kuroda pandemic is meant internet sales have grown but clients can still visit iraq to me by appointment in. africa the country we have africa can make an important contribution through its rich biodiversity and we survive as a sparrow we have several species of roots and plants which provide us with natural dyes and some new sound. communities can offer a great solution for the future. we can practice natural dying as a way of reducing the environmental impacts of the textiles industry as well and to so process the pull of the song. the country of believes that by offering sustainable solutions africa can revolutionize the fashion industry. and how about you if you're also doing your bit tell us about it visit our website or send us a tweet. hash tag doing your bit. we share your stories. our next report is about annexing nature rejuvenate without human intervention or not so much of it in the netherlands people recently created 5 new islands in the water see the archipelago not far from am

overwhelmingly dovish monetary policy that has yield curve buying, bond orchestrated by governor kurodajapan, he still has another couple years on his term left. >> i don't think there will be a discontinuity from autonomic's to the next because there's not much room the japanese economy can deviate from the mainstream strategy. for not't blame him defeating deflation. >> whoever takes over from prime minister abe is likely to crucial that relationship between government and central bank. some reaction to the resignation of shinzo abe the race is on -- longest-serving prime minister after abe said he is stepping down for health reasons. onphen engle has the latest this. no clear front runner, but there are favorites. one for the people, one for the party. stephen: that's right. there's not usually -- no obvious successor. there's not a lot of new blood coming up through the ranks. we can talk about the environment minister, the son of the former prime minister. he's not going to run but at least he is throwing his support tari kono. he is 71 years old. likely to be a caretaker prime min

we head into that rest of this year i totally agree you know guys like steve minute change a poet kuroda over in the bank of japan european central bank they've strapped on the suicide quantitative easing vest and they've pulled the report and lit the fuse and gold is making new it to all time highs in every currency including the u.s. dollar so that's the fallout from the suicide mission called central banking it's here it's it's the 21st century of course after a nuclear fallout you have nuclear winter so this is what you can expect basically spend going on really since the activists fed of alan greenspan that's why you have a nuclear winter in much of the economy that the economy is we have zombie banks we have you know the velocity of money is dead that's the signs that we have a nuclear winter in the financial system and the monetary system so you know that the you know these humongous big companies emerging that's part of like the nuclear freak accident of this monetary policies this is the after effect he said to the deformities and the financial and business sector yes speaking o

overwhelmingly dovish monetary policy, bond buying orchestrated by governor kuroda and the bank of japanll has a couple of years. uncertainty may raise concerns in markets about a revolving door in japan's leadership. >> i don't think there will be discontinuity. there is not much room to from the mainstream reform strategy. >> whoever takes over from prime minister abe is likely to maintain that crucial relationship between government and central banking. annmarie: joining us now is stephen engle. are there any dark horse candidates? >> there are some. 71-year-oldout the right-hand man of shinzo abe. if you want continuity that is probably the guy. there is also the former defense minister. he is the most popular among the populace, but that does not translate to an election victory because this is not a general election. this is an insider election coming up two weeks from today. as far as dark horses, one interesting dark horse would be the current defense minister. he is fluent in english, he is a georgetown graduate. he laid out a plan for the boj to exit easing monetary policy. he

system as we head into that rest of this year i totally agree you know guys like steve change a poet kuroda over in bank of japan european central bank they've strapped down the suicide quantitative easing best and they've. pull the ripcord and let the fuse and told us make them do it to all time highs in every currency including the u.s. dollar so that's the fallout from the suicide mission called central banking it's here it's spent it's the 21st century of course after a nuclear fallout you have nuclear winter so this is what you can expect basically spend going on really since the activists fed of alan greenspan that's why you have a nuclear winter in much of the economy that the economy is we have zombie banks we have you know the velocity of money is dead that's the signs that we have a nuclear winter in the financial system and the monetary system so you know that the you know these humongous big companies emerging that's part of like the nuclear freak accident of this monetary policies this is the after effect he said to the deformities and the financial and business sector yes spea

we still have governor kuroda at the bank of japan. uncertainty has jolted markets. matt: the concern is that end,mics could come to an is it able to be stopped by some in japan who think they have seen enough of it, or it just sort of weakens without its author in charge, what kind of policy changes are the most concerning for markets? stage, it is too soon to tell. movesct the 10 year yield that one basis point does suggest overall it is going to continue to be discontinuity trade. i would not expect governor kuroda to back away from the current consistency within policy. it is unlikely we are going to see a complete departure from .be nymex -- abenomics given the time horizon we are going to probably continue to given the uncertainty in the near-term. perhaps near-term continuity. headline suggesting shinzo abe would stay on until a replacement is appointed as the markets no doubt will hope. thank you for that. latestinue to digest the breaking news coming to us from japan. shinzo abe will step down as prime minister. 11 minutes past 7:00 in london. next, running

monetary policy that has yield control, on buying orchestrated by the bank of japan, and governor kuroda couple more years left. >> [indiscernible] because there's not much room that japan can deviate from mainstream reforms strategy. --i don't blame him for not inflation. [indiscernible] >> whoever takes over for prime minister abe is likely to maintain that crucial thetionship between government and the central bank. haidi: some reaction there to the resignation of shinzo abe, and we are hearing from a japanese news outlet confirming that both the chief cabinet secretary and the former foreign minister are both planning to run to replace him. amid thearture comes pandemic, japan's first recession since 2015 pure -- 2015. our guest joins us from tokyo. wonderful to have you. you saw the negative reaction and markets on friday. the concern is policy continuity. his continuity a good thing? -- is continuity a good thing? rly critical. jeff: if you look at the cslitical obituaries, abe-nomi has been a flop. inequality has increased, household wages have gone down. much of anasn't had impac

are to stand on clothing off air in order to properly pay all the work in the production chain the kuroda pandemic has meant internet sales have grown but clients can still visit her rotten year by appointment in. africa but it would mean africa can make an important contribution through its rich biodiversity and we have got is a spare we have several species of roots and plants which provide us with natural dyes some sound little food thought oh goodness can offer a great solution for the future. we can practice natural dying as a way of reducing the environmental impacts of the textiles industry i grant you so process the probe the song. they can see it believes that by offering sustainable solutions africa can revolutionize the fashion industry. and how about you if you're also doing your bit tell us about it visit our website or send us a tweet. hash tag doing your bit. we share your stories. our next report is about making nature rejuvenate without human intervention or not so much of it in the netherlands people recently created 5 new islands in the water see the archipelago not far

down -- thestep biggest risk to policy will come after governor kuroda was turn and's in 2023.g of the boj putting out the board, some japan market watchers are anxious about the potential losses on the etf holdings that could affect future buying, particularly with att breakeven point now ¥20,000. increasing that impairment risk. 75% of owns more than the etf market in japan and has already slowed their buying after raising the ceiling on purchases back in march and going forward, several former officials of the boj say the bank can skip some buying in the month to come given there is less market turbulence in japan, haidi. haidi: we have lots more to come on "daybreak asia." this is bloomberg. ♪ shery: let's get a quick check of the latest business flash headlines. group has filed for a twin ipo in hong kong and shanghai. john -- ant generated more than $10 billion in revenue with just over 3 billion profits. the simultaneous listing could be one of the biggest in years. saudis say it could top aramco's record, $29 billion. apple is said to launch its first online store in in