any merit in what mark mobius it -- do you see any merit in what mark mobius is saying?ovoke some response from the boj and that could mean look up to money? tapan: the yen has been disappointing that it has strengthened despite all of their easing. the economic conditions are not yet quite right for that. it is something they will hold in reserve. i think my message is not quite yet. anna: what about the economic conditions. what we hear from kuroda, they talk about how it is not legal, allowable by japanese law. tapan: hopefully he can work around it. the issue is because it was unpleasant, japan what some -- went through some thing similar in the 1930's. there are, causes behind this but it did in the badly -- there are historic causes behind this badly.did and it is difficult to go full on to helicopter money. some elements to resemble helicopter monday. that's helicopter money. -- helicopter money. the other conditions would have to worsen much more. butstrengthens remarkably those conditions are not quite there. anna: it is not enough? tapan: the rest of the world

mark mobius, we will bring you that interview.s is bloomberg. ♪ >> we are beginning to think about what ammunition they have. ok, let'sreaction is go for helicopter money. let's get money directly to the hands of consumers. they may want to try that but i think they are scared the effect might have of very high inflation. it could get out of control. i would expect that they will try that. that will probably be the next step. japan is the leader in the sense that what japan is doing is having a global impact. the experiments that japan are trying are being watched globally. so in many ways japan is a leading indicator for the rest of the world. i think they will engage in helicopter money with great care and reluctance. if they do it to carefully, it will not have the desired effect. francine: that was mark mobius on helicopter money in japan. can the policy help with japan's other big problem back on the aging population. we'll take a look at the chart of the hour. the unemployment rate is 3.2%, one of the lowest. the white line

scarlet: still ahead, we will hear from mark mobius on helicopter money and his outlook on japan.berg. ♪ scarlet: i'm scarlet fu. legendary investor mark mobius says helicopter money will be the next big experiment, and it could happen next month. he spoke exclusively with bloomberg. >> we will engage in helicopter money with great care and great reluctance, and of course if they do it to carefully, it will have side effects. scarlet: joining us for more, betty liu. a lot of people say that the push for helicopter money will be if the yen crosses a certain level. betty: you have the nail on the head. what mark mobius said that was so interesting, he's saying, they are going to do it, but it's likely not going to have the desired effect, so why do it at all? matt: typical bank of japan policy, is in that how they do it? they doesn't really bring it with their fiscal policy. scarlet: that reminds me of another central-bank. but why did i have to do it? like you said, because the yen continues to strengthen, and what mark mobius was saying was that ¥90s and crosses per dollar level,

mark mobius says helicopter money in japan could be a month away. hedge funds clipped, the new report says investors pulled more than $25 billion come hedge funds last month. the biggest month redemption -- monthly reduction since 2009. caroline: we have cautious trading ahead of jackson hole. federal reserve chair speaking tomorrow. futures down 20% if you're looking at the euro stoxx 50 at .2%moment -- futures down if you're looking at the euro stoxx 50 at the moment. i know you're good to be checking other assets. manus: into the calm before the storm. that is a part of the debate will have today. repressed volatility. is it qe at work echo stocks in the u.s. lowest since 1994. bloomberg dollar index at the top of your screen, up .4%. we are shifting into they five of the dollar bid zone on that. underneath that you got crude oil up .25%. he had stockpiles again. u.s. suppliers up by 2.5 million barrels. greenfield ceo says short crude at these levels, $50. is it a moment of recovery or more pain echo -- pain? growth will be close to zero this ye

mark mobius says helicopter money will be japan's next egg experiment.ditional easing measures have made people save instead of spending or barring. the boj towill force contemplate a policy it repeatedly rejected. treasurer scott morrison says her run without recession is complacency towards the economy. unemployment about 10%, mortgage rates at 18%, or spiraling inflation. let's have a look at what is happening as we get to the hong kong open. shanghai also here. moving more to the downside. margin deaths have been climbing up quietly. we are back to levels and february. -- in february. the big bang starting to release their results. construction bank out with earnings. before i get movers we are following in china, the other big macro story is the pboc. this money market tackett, 14 day repo rate, which a lot of people scratching their heads. it is using that 14 day to inject money into the system, 220 million renminbi injection billion renminbi. important,that is people are wondering why they are turning to a longer view in the money markets. this is

mark mobius says helicopter money is coming to japan and it could be as early as next month. tell us why the bank of japan cannot resist it any longer. mark: apple want to popularize -- capitalize on the popularity of social media. what changes it is making to the iphone. etf's were invented for small investors, but over the years they have grown more sophisticated and complex, and that has regulators concerned. veteran investor mark mobius says helicopter money will be japan's next experiment, and could happen next month. combined with a stronger yen, he says this will force the bank of japan to compensate a policy it has repeatedly ruled out. they will engage in helicopter money with great care and reluctance. if they do it to carefully, it will not have the desired effect. that is the dilemma they are facing. cook marksweek, tim his fifth year as apple's chief executive and has done very well for himself. he hasthat time, received in share value $300 million. apple stock has doubled under his leadership, placing it in the top performing third of the s&p 500 index. meanwhile

jonathan: that is the investor heavyweight mark mobius. have you with us on the program. , brought it up with tom king the essay in 1969 friedman, the optimal quantity of money, drop caps on the village, and what happens? here we are in 2016. are we debating this theory become practice? >> i guess we are. you heard mark's comments. at the last meeting, they said they were undergoing a major policy review, so we are waiting to what comes out of that will what does that mean? it is a good question because the bank of japan is front and center in global markets right now. the dollar store is a big one -- the dollar story is a big one. you are hearing all these interesting things like helicopter lettin money, explodg atms. not clear if there is much scope for that in 2016. alix: helicopter money from japan, but also ecuador. the normalization of rates in the u.s.. >> the most recent meeting, i did express my view that it was time to continue the process of normalization of interest rates. when i look at where we are with the job market, when i

mark mobius says helicopter money will be japan's next big experiment. here's what he told us. will engage in helicopter money with great care and great reluctance. if they do it too carefully, it won't have the desired effect, is the dilemma they are facing. they are going to be much more circumspect and they probably will wait until the yen reaches 90 before taking action. andrew,: it seems, depending on your definition of helicopter money, are we going to see money put through the letterbox or is this going to be much more nuanced? andrew: we still not expecting helicopter money from the bank of japan. if anything, i think they first have to get through this issue where negative rate policy does not seem to have worked in the way it was intended. the yen has been stronger since then. i think the bank of japan first has to get through, how do we backpedal potentially from this idea that we continue to cut rates given that it has been somewhat counterproductive? the bank of japan has to get through that first, which remains a difficult issue, before we think the helicopter mon

mark: mark mobius speaking exclusively on bloomberg. take a look at where markets are trading.e are heading to the thursday close. stocks fallin g for the first time this week. it is all about janet yellen who speaks tomorrow at jackson hole, wyoming. investors are twiddling their thumbs waiting for any clues. this is bloomberg. ♪ hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. mark: welcome, you want to the european close. stocks finishing the thursday session. only one industry group falling --ay -- industries flat. utilities flat. it is the biggest three-day gain in two week.s. the last time we saw a fall like that was august the

liz: your interactions with money from temple, the great mark mobius, i could go on and on, especially, what is the best investment advice you learned from these guys? >> oh, don't follow the crowd. john templeton said to me, when everyone is saying the same thing a different outcome is likely to occur. doesn't follow the crowd. liz: avoid the herd. you don't want to get trampled. that is where you look all of this. mark, great to have you here. will you come back again? >> absolutely. liz: this is smart theory you have to hear from people who have been in the business a long time. mark zinder. as we get to the closing bell, we're at high of the session. almost there. 40 point to the upside for the dow jones industrials. we're up 35. we break what would have been an eight-session losing streak, the longest in five years. [closing bell rings] we're far from down. earnings are abounding. who i get to join right now, david asman. david: everything old is new again. liz claman, joining us for the hour. we have you covered on the markets. we want to show what you else we have for you this h

. >> mark mobius, tell us -- spoke spoke to bloomberg television earlier on when he says that interventionlly could happen. >> they're going to be much more circumspect and they probably will wait until the yen reaches 90 before taking action. jonathan: the last time the yen reached 90 was back in 2012. >> i don't think this is a decision the boj can take lightly. for that matter, i don't think it will happen in september. i think what will happen in september is the bank of japan will want to fight the idea that it is out of ammunition. so i would expect them to talk about easing or possibly deliver something, especially if the dollar-yen is below 100. for helicopter money, the boj -- they would need to be in panic mode. we need the dollar-yen to be well below 100. jonathan: mylan stock up this morning trading after the company said it would take immediate action to cut the cost of the epipen after facing pressure from politicians. that is including presidential candidate hillary clinton. the volume got turned up and the company act down. how embarrassing is this? >> it doesn't look good.

matt: mark mobius says helicopter money will be japan's next big experiment, and it could happen next exclusively with us here at bloomberg. they will engage in helicopter money with great care and reluctance. of coarse, if they do it to carefully, it will not have the desired effect. that is the dilemma they are facing. so they would use great care instead of just dumping buckets of money from the sky, and reluctance. that is the key part of what he said. joe: the argument that people whether helicopter money or any other form of central policy, somehow banks have to commit to being on credible. in order to bring people out of this believe that they will tighten at the first sign of inflation, they have to convince the markets that they are totally wild. if they do it carefully, maybe it will not work. although the conversation has shifted from helicopter money to fiscal stimulus. already indicated that more fiscal stimulus is on the way. the bank of japan, there is the dance going on over there about whether the government take it on. operations a delicate . an economist the other d