charlie: didn't mitsubishi fail the omissions of standard?re, thatthe is where the lines to lace. mitsubishi asked for support. everybody talks about acquisitions. west and east. was there a culture clash? carlos: no, there were conflicts, but well-managed. you have a conflict but do not manage it. obviously, asian companies do way as european companies. what is different in terms of practices, values, a lot of things are different. but when you put a common project on the table and it is explained and everybody buys into it, you can manage all these differences. charlie: you have a knack for cost cutting, don't you? carlos: yes, i know all the coo's start with cost-cutting. if it is limited to this, it is a failure. at the end of the day, it is about growing the company and adding value. it has to start somewhere. you can be tight on costs, but you have to build the brand, manage innovation. all of this shows into the evolution of the revenue of the company. charlie: it has to do not with cost-cutting, but many -- maybe it does. we know abou

of mitsubishi. >> charlie: everybody talks about acquisitions and culture clash. have west and east. was there a culture clash? >> no. there was conflicts but well managed. in fact the conflicts didn't lead it a clash. have you a could be -- conflict and you don't manage it it ends up in a bigger clash. asian companies don't act the same as western companies. it's different in terms of priorities and practices and values. lots of things are different except when you put a common project on the table and it's explained and everybody buys into it you can manage all these differences for the common purpose. >> charlie: you also have a knack for cost-cutting don't you? >> it always starts like this. the ceo of many industries start with cost cutters. now, if it's limited to this it's a failure because at the end much the day it's about growing the company and building value. it has to be tight on cost and then you have to manage innovation and products and it shows to the evolution of the revenue of the company. >> charlie: we know the stories where one auto company a

individually, mitsubishi and oruho or slightly up, -- slightly down.n onthey had a right their subsidiary the year before. the environment, [indiscernible] he said he sees the fall in interest rates are coming to an end, a view that has been shared by a few analysts, the geopolitical climate. north korea keeps shooting missiles at us, so there is still some uncertainty in the 11. i think banks are figuring that -- incorporating that into their forecast for next year. shery: at least when it comes to their stock prices, shares do seem to have stabilized from that low in march. if our viewers can take a look at the bloomberg, they can see mitsubishi, mizuho, how their shares took a dip in the month of april through they started stabilizing after that surge since november. election victory of donald trump. if you take a look at mitsubishi, it gained more than 30% since then. theire we expecting shares to react, not only today? what will future dependence -- gareth: they're valuations are still very low. they are around .6 at the moment, a low value, which

said, mitsubishi , it would had to have been an abysmal quarter for them not to have had.to see how they benefit. when might this bottom out? is that eight this year story? or is that next year or a year after story? not a lot ofe's room left to go further. there's not much further they can really fault. thank you so much for joining us. let's continue this conversation with a senior vice president of equity research. michael, you can give us more perspective on what is going to happen to banks. are we going to see them bottoming out this year, or is this a story of next year or 2019 ? ofthat was a good summary the current situation. i think the megabanks are in a holding pattern. the downside we had last year with negative interest rate policy was first introduced is now reduced since the boj has changed the policy of yield curve control, but in terms of that upside breakout, we need to wait. 2017, if one happen come and the question will it be 2018, 2019, or later? under boj policy, they have committed to overshooting and expanding the monetary base and tell inflation is

we got results from toyota and mitsubishi, they are still coming, there is some nervousness.. their shares are climbing, that is interesting. that is how markets are faring right now in asia, i will be back soon with a look at the morning's papers. the conservatives have confirmed they intend to cap energy prices for millions of households if they win the election. they claim the move could save consumers up to £100 a year. labour says the cap would not stop bills increasing and the pledge has drawn criticism from the industry. here's our political correspondent ben wright. energy prices have been hot politics for some time. at the last election, labour promised a two year price freeze. the conservatives want to intervene in the market, they say it doesn't work for most people. the prime minister says rip—off energy prices hit people on the lowest income is the hardest. switching to another carrier often brings bills down, but seven of ten households are on standard variable rates, which are usually more expensive. so, the conservatives would give 0fgem the power to impose a

mitsubishi says it sees net income of $600 million in the year through next march.compares with a loss last year of 1.7 billion. anchor: the world's second-largest shipbuilders trade at four separate entities from today. the heaviest move has helped cut in half.alf, -- debt the breakup will allow the group to streamline its operations and make it easier to grow individual units and attract investors. anchor: let us get a quick update on the markets. australia wakes up and reacts market wise to that budget. the details to take a look at new zealand, where trading is underway. unchanged at the moment. we had another advance for the bloomberg dollar index, half a theset in the session as bets intensify over the next rate hike coming through next month from the fed. we had hawkish fed speak coming through in the session as well. australian futures picking up by .3%. course, further downside when it comes to the banks. taking a look more broadly across some of the other asset classes you have the japanese yen. we did have geopolitical risk receding after france, after th

reporter: sticking to this region as well, you have a partnership with mitsubishi.rogress on that and does it provide a template for other partnerships? mr. gorman: i have never been asked that before, because it is such a unique partnership. it was a preferred investment they made and we converted that around 2012. on the back of that we created to joint venture structures in japan. one of the trading business and one in the advisory business. japan is the third largest economy in the world. a major presence in that market is a huge positive for morgan stanley. terms of replicating that you would have to say where else in the world are there economic opportunities of that size. where else can you not do it on your own easily say you would need a partner and could you structure that partnership with a very long-term player? the thing i love about mft is they are very patient long-term folks. we have tremendous relationships at the top of the house. be hard to replicate that. reporter: about a synchronization to client base as well. banks don't necessarily play well

sophie:betty, -- mitsubishi is said to report at midday, followed by mitsubishi motors this afternooning the news lines that you and yvonne just mentioned, we are keeping an eye on toshiba in tokyo along with crown resorts in sydney as this can casino operator is said to do the joint venture. the largest bank on the radar after its latest earnings update. asian equity futures are pointing higher here after the stocks on wall street into tire and the yen is back above 113. that is a brief look at what we will be watching when trading ♪ yvonne: -- betty: shares hitting a record as the eu retailer saw its first-ever profit as a listed company. china says the internet is growing the -- is ruining the economy. alibaba and others are in a race to the bottom. this is the second hour of "daybreak asia." yvonne man in hong kong. betty: i'm betty liu. -- i don't markets know. it seems likely be -- it seems like we are at the return of the market. pretty much closed right at the height of the session, but not a lot of movement. i think investors are waiting for more catalysts in the form disney,

inside the mitsubishi weapons factory he had been wiping perspiration from her face and concentrating on her work when an enormous blue white flash of light verse into the building followed by an earsplitting explosion. thinking a torpedo had detonated inside the plant she threw herself onto the ground and covered her head with her arms just as the factory came crashing down on top of her. in a short-sleeve shirt, trousers gators and cap he had been riding his bicycle through the hills in the northwest corner of the valley when a sudden burning wind rushed toward him from behind propelling him into the air slamming him face down on the road. the earth was shaking so hard he said that i hung on as hard as i could say would get blown away again. 15-year-old noggin i was standing inside an airplane parts factory protected to some degree type distance of the wooded mountains that stood between her and the bomb. a flash she remembered. she thought a bomb had hit her building three she fell to the ground covering her ears and eyes with her thumbs and fingers according to her training as win

. >> mitsubishi -- >> reporter: onboard was the pilot, a one-time member of the coast guard auxiliary, his friend jennifer, and her two small children, 4 and 3 years old. >> and i'm jennifer, founder and ceo -- >> reporter: a successful ceo from new york city and her family featured in the show "open house nyc." according to flight records their plane left puerto rico at 11:08 a.m. monday. destination titusville, florida. but 2:22 into the flight at an altitude of 24,000 feet, the plane disappeared from radar. the search falls in the area of the fabled bermuda triangle. now discounted as myth, it was long believed in the bermuda triangle navigational instruments would not engage properly leading to crashes and sinkings. >> as of now we've covered 100 square miles, a little more than that, and the search is ongoing. >> reporter: tonight the families of the missing are asking for privacy as the coast guard coordinates a desperate round the clock search. kerry sanders, nbc news, miami beach. >>> the acrobat who overcame personal tragedy to fly higher than ever before inspiring america is

the mother of the girl told police that she believed her 18-year-old son stole her 2013 mitsubishi. the car was found wrecked at 3rd and champholst. the 18-year-old was gone. police are searching for him right now. they have k-9s helping in the search. we checked in to see how the child is doing. we're told she's still in critical condition. but that doctors at the hospital were able to find a pulse. we'll check in with police to see how the girl is doing and how the search for her brother is doing, as well. that's the latest live from olney. i'm pamela osborne, nbc10 news. >>> breaking news from overseas. a suicide car bomb attack in afghanistan has killed at least 80 people and injured hundreds more. it happened in the diplomatic area of kabul near embassies and the presidential palace there. the target is not known. officials say most of the casualties are civilians. so far no group has claimed responsibility. >>> here are more of the top stories we're following. >> opening statements begin in the trial of a bucks county man accused of sexually assaulting six girls from the same

la confianza en mitsubishi es la garantÍa de que se me mitsubishi le acompaÑarÁ hoy, maÑana y dura mascara

. >> the missing plane, a mitsubishi twin engine turboprop was en route to titusville, florida. >> onoard was a new york city family, an event planner and her two young sons and the pilot all returning from a mother's day holiday. abc's gio benitez with the latest. >> reporter: mystery over the bermuda triangle. 40-year-old mother jennifer blumin and her two young sons, just 3 and 4, missing along with their 52-year-old pilot and friend nathan ulrich. their small plane disappearing from radar monday afternoon. >> we're doing everything we can. >> reporter: blumin, the boys and ulrich were flying from puerto rico to central florida in a small plane like this leaving puerto rico just after 11:00 a.m. monday. but just three hours into that flight at 24,000 feet, the plane vanishes right over the infamous bermuda triangle. tuesday afternoon the coast guard finding parts of the plane 15 miles east of eleuthera in the bahamas. but no signs of the four passengers. >> the first thing that investigators will look at, was there a problem with the pressurization in the cabin? did it lose pressur

they could be well above that target, and we saw mitsubishi do quiteg they could well.y are, but they won't be going too high because of the negative interest rate environment and want to show the boj they can still post high profits, even with the headwinds they are facing. negative rates is one thing they are dealing with, but we are off the worst of that to actually have a yield every now and then. >> it has come back a little bit. the doj change policy and september to focus on the yield curve remove the threat of negative rates. the squeeze saying on net interest margins may be coming to an end. there's not a lot more there, not further they can fall. so some positive signs there. the environment for the banks remains unclear, a situation that is unstable. we have north korea that keeps firing missiles at us, so there are still things that could go wrong for the banks. analysts are saying the forecast will be more conservative for the rest of this year. thank you a lot for that. just getting more breaking news from this news conference between saudi arabia and russ

mitsubishi is cranking up drives to boost foreign currency deposits as it looks to mitigate rising costsf lending overseas expansion. biggest bank is expanding the overseas lending to earn higher margins with negative rates zapping profitability of domestic loans. thesesaw from some of macro indicators that came out this morning, japan remains very much mired in a slump, despite years of monetary and fiscal stimulus. big companies have yet to see a breakthrough.i want to talk about that was the former ceo of sony, nobuyuki idei, who now heads up quantum leap. this company tries to help entrepreneurs. great to have you on the program. in terms of big picture, what needs to change in the corporate mindset, particularly when it comes to the space you are operating in, to get entrepreneurial startup type businesses after money in japan? mr. idei: it is very difficult corporatethe japanese culture itself. i think it is slightly different from that is -- of american capitalism. the entrepreneur has so much conservative philosophy. they don't have any mindset to rather thane. stable management

mitsubishi says it sees net income of about $600 million through next marsh -- march, comparing withear of $1.7 billion. shares of surging by the most right now in three months. global news 24 hours a day, powered by more than 2600 reporters and analysts in more than 120 countries. i am ramy inocencio. this is bloomberg. >> coming up, we check in on the big equity gainers and losers after australia's budgets. banks selling off this morning. plus, we are joined by the shadow finance manager -- minister. this is bloomberg ♪ >> this is "daybreak asia." i'm yvonne man in hong kong. betty: betty liu in new york. trading in new york has been underway from is 15 minutes. the s&p is just down about .3% in reaction to the budget unveiled yesterday. haidi lun has more on the major market movers at this early stage. haidi: that's right, major movers to the downside are the ones we saw yesterday, because this move -- news of the bank levy was leaked yesterday afternoon and we saw the selloff in the big banks. cbo was the worst of it. the selloff was down by the most in 15 months. taking a look a

we are watching automakers like mitsubishi, releasing earnings and sales updates.e in the state surpassed 5 million for the first time. and cable stocks ahead of those selections. carmakers in the spotlight as they saw a drop in chinese sales for april. in facing economic retaliations for the thaad missile system in south korea. we will see if investors like westpac's report. take a look at asian equity futures, all higher on friday's rallies in the u.s. in europe -- and europe and reaction from macron's win. asian traders get a first chance to react to the trade data. gainat japanese futures, a of over 1% as the thing is trading the lowest in seven weeks, but signaling weakness on the eve of the presidential elections in korea. looks like a positive monday for aussie stocks after the commodity story fell. pick up in the week of a brutal selloff and oil coming back above $46 a barrel after dropping to a near six-month low last week, $44. that helped push the bloomberg index higher by the most in a month. that reflects. we are watching australia, japan, and korea. m

the breakdown of that, too banks lower profit,g while mitsubishi ufj is forecasting an increase in profitear. the banks are being conservative as they typically do, and that is why they our forecasting profit. a little worse than expectations, 236 million pounds in the red. is this as bad as it gets, and what is your expectation for the story going forward? >> there were no real surprises in the first half loss. movedit down, easter has from the first half into the second half, 40 5 million pounds of loss, and the foreign-exchange headwinds is 80 million pounds comes so before we started the first half, the market new there was 127 million lost against easyjet, that these a normalized lost in the first half comes, so not turbulent, very stable, navigating our way through the referendum. we know what we will do about that come and what we have said is the second half is that we are holding guidance. cisco, the biggest maker of a quiver that runs the internet, beat earnings and revenue estimates, but the stock move down because its sales forecast was cautious. yourof the reason why stock di

also watching earnings from mitsubishi motors and subaru. i am paul allen and canberra. more from "bloomberg technology" next. ♪ >> welcome back to this special edition of "bloomberg technology." i'm caroline hyde. we are live from boston, showcasing the innovation and diversity of the tech economy. opened its 100 17th season this weekend at boston symphony hall, and the theme, it's the music of former conductor and maestro john williams. recently recorded and help him of his music in a high tech, state-of-the-art studio many concertgoers don't even know exists. this,rt with a little of after twof this,, and hours leading the boston pops, you will have a recording of the selected works of maestro john williams. for managing directorhours lead- >> it's the soundtrack of our time. >>john can write a melody better than anybody else. you say star wars. it comes into your head. ♪ "et," and you hear it in your head. ♪ the recording is overseen and supervised by nick squire, one of the few full-time sound engineers employed by any u.s. orchestra. >> it is visually appealing. it

. >> because of mitsubishi representations to . >> because of misrepresentations to the president and others in the white house it took it to another level. >> it certainly did affect the ability to use that information for compromise with the russians. >> did you leak to the washington post. >> you're a brave man mr. stevens. your testimony will save lives. this is your new name. your new house. and a perfectly inconspicuous s suv. you must become invisible. >> i'll take my chances. ♪ ♪ ♪ i'm dr. kelsey mcneely and some day you might be calling me an energy farmer. ♪ energy lives here. when i feel controlled by frequent, 6it 6itfg. or ibs-d. a condition that's really frustrating. that's why i talked to my doctor about viberzi... ...a different way to treat ibs-d. viberzi is a prescription medication you take every day that helps proactively manage both abdominal pain and diarrhea at the same time. so i can stay ahead of my symptoms. viberzi can cause new or worsening abdominal pain. do not take viberzi if you have no gallbladder, have pancreas or severe liver problems, problems with

the breakdown of that, two banks are forecasting lower profit, while mitsubishi ufj is looking at a slightlycasting an increase in profit next year from this year. i think the banks are being conservative as they typically do, and that is why they our -- are forecasting profit. >> a little worse than expectations come up pretax profit came in at $236 million pounds in the red. is this as bad as it gets, and what is your expectation for the story going forward? >> there were no real surprises in the first half loss. 19 out of 21 years, they have lost money in the winter. break it down, easter has moved from the first half into the second half, that is facing. that is $45 million pounds of loss, and the foreign-exchange --dlands is $80 million headwinds is pounds, so before $80 million we started the first half, the market knew there was 127 million lost against easyjet, that is a normalized lost in the first half, so not turbulent, very stable, navigating our way through the referendum. we know exactly what we are going to do about that and what , we have said is the second half is that we ar

is a level it had not reached since june of 2008, leaping far ahead of rivals like panasonic and mitsubishihe firm announced on monday it will reenter the organic light emitting display or oled television market. the technology is allowing clearer pick chorpictures and doubles as a speaker. sony decided to use oled panels made by lg electronics, and it says it will focus on developing image production technology to set itself apart. the bravia a1 series which will go on sale in june will cost around $7,000 for the 65-inch model. the group's tv business is already rebounding on the success of 4k liquid crystal display sets and the latest news make investors optimistic that sony will capture 10% of global market share. sony announced last month that earnings are expected to increase over three fold in the current fiscal year and demand for image sensors used for smartphones are strong and operating profits are expected to rise over 70% to 4$4.4 billion. that's a level reached only once in the past. that's all from the nikkei. back to you. >> thank you very much for that. >>> let's get back to

the breakdown of that, too banks are forecasting lower profit, while mitsubishi ufj is forecasting an 950 billion from the forecast this year, which was 850 billion. i think the banks are being conservative as they typically do, and that is why they our forecasting profit. god: easyjet -- guy: easyjet a little worse than expectations, 236 million pounds in the red. is this as bad as it gets, and what is your expectation for the story going forward? >> there were no real surprises in the first half loss. 19 out of 21 years, eject -- easyjet has lost money in the first half of the year. break it down, easter has moved from the first half into the second half, 40 5 million pounds of loss, and the foreign-exchange headwinds is 80 million pounds. so before we started the first half, the market new there was 127 million lost against easyjet. that leaves a very normalized loss in the so not turbulent, first half. very stable, navigating our way knowgh the referendum, we exactly what we will do about that, and what we have said is the second half is that we are holding guidance. >> cisco, the

asian head of global market research at the bank of tokyo mitsubishi ufj is with us. free float, the internationalization of the yuan , liberalization of the currency? is this a massive backward step? >> it is. the interesting question is why do they feel the need to do this now? received the pboc trying to nudge the markets into a lower thear-china spot level for past six weeks or so, and find the things have gotten very frustrated and basically imposing its will through this new mechanism. suggestoes it seem to that this seems like overkill given that we have had more or less stability when it comes to dollar-yuan, and less stability when it comes to the basket against the yuan, but is this necessary and does it setback this whole process of opening up? the concern with volatility wasn't necessary. if you look at the intraday ny, somethe dollar-c an days have been extremely narrow. so i don't really buy the to combathis is volatility, because there has not been any. it is more likely that someone senior at the pboc, look, do something about volatility before the par

take a look at tokyo, mitsubishi surging the most in eight years after the u.s.roved its als drug. lg electronics rising the most in nearly a year, the korean asked lg to clarify a report that it is in talks for a potential acquisition. all strained tv stocks climbing on plans to ease regulations. and kuala lumpur, shares ishanding almost 30% for skander waterfront regarding a major property project in kl city. haidi: thank you for that. let's get to first word news. rosalind: the final count has been declared in france, and emmanuel macron one with more than 66% the vote and a decisive victory over marine le pen. his victory is seen as a boost for the european union and a blow to rising nationalism. marine le pen said the result as a massive success for the far right. macron prepares to name his government. tonight in the next five years, i will take on that responsibility with determination to serve the country on your behalf. long live the republic. along live france. -- long live france. the french people have chosen a new president of the republic. i have ca

. -- that is mitsubishi motors numbers and another german stock, 20.3 million in terms of earnings, thatusted ebit and the pencil -- architectural than 26.2 million on the top line earnings. they are confirming the forecast which confirms what ben is saying. we have had a host of german reporting and we started the first hour talking about numbers from commerzbank. that is what they are tried to do is turn those numbers around. we will keep an eye on that. that is on the miss we had. anna: let's have a look at where we are on the futures. it looks as if they are positive at the start of trade. .2 of a present or so. we had a new record yesterday in u.s. trading. as the vix slumped and we are getting calls saying sure the s&p, we will pick up that theme in just a moment. manus: volatility dropped around the world, it is the lowest level since 1993 in the u.s. u.s. equity futures are a shade lower this morning. let's have a look at the risk radar. we have the msci asian index. down by .5 of 1%. south korean equities came off a record. futures, i wonder if he has a short position. shock, ho

[laughter] -- let mitsubishi to the upper chamber.laughter] >> the senate is going to be a struggle. you already have two republican senators who have come out today and said they do not support this bill. some of them are very concerned about medicaid. the american health care apple -- care act will cut a lot of money from medicaid. we do not know how much because as you mentioned we do not have the cbo score. it is probably in the neighborhood of $800 billion, which is a huge concern to the senators in the states that expanded medicaid. this is a big victory for republicans. now the senate has to go through a lot of the fights that the house already did. there is discussion that the senate might article on bill from scratch. this is one victory in an ongoing fight. now the focus turns to the senate and what they are going to do. charlie: there has been much discussion including with my colleague with the president as to what was in the bill and not in the bill. give us a sense of the key aspects of that conversation which has been p

terms of what we are what stop wise, the really good news in the medical front, and we have seen mitsubishilmost 10% in tokyo. it has received u.s. fda approval for a drug promotion, the first successful promotion since 1995. it is being sold off and had a brokered downgrade. casinos being sold down. this is on new restrictions in macau, really trying to counterfeit money laundering in macau casinos. the china trade data, if you have a look at this chart on the bloomberg, it is g #6577. this is the surplus of over $30 billion, the second month of a surplus in a row. still not quite where we were earlier in the year. it is showing a resilience of exports in the china market. they were weaker than what the equity was, but still rising in dollar terms by 8% in the month. manus: thank you very much. let us return to our top story. it is of course france. to help make sense of the macron win and what it means for the business community, caroline connan is standing by. and to talk about that, i am joined with a tech executive, frederick, founder and president of the world's leading carpooling com

>> m stands for mitsubishi. >> i know what it stands for, it just doesn't look good.ll right. i'm not going to argue with you. i think you both say the 0.7% gdp and the weak job number last time, it may not be reflective of what's actually happening. >> next to nearly useless. we got nearly a 13% eps growth in the first quarter. >> that's the more important number. >> that's more important for equity. >> in your view it justifies current stock prices and justifies staying fully invested. >> a lot of folks come on and say this will be a 6%, 7% eps year. if you have a 13% first quarter, it's going to be a lot better than 6%, 7%. we had a nithird of that gain fm the energy sector, oil. this will be a big eps year. a big gain this year in the united states before any tax cuts. then the rest of the world is also accelerating. gdp will do better later, but we always had these quarters that have been weak. i don't think you'll see the fed reflect on that and say this is ab important s an important statistic for them. >> if underlying things are better in terms of earnings pe

we will be getting more insight from bank of tokyo mitsubishi ufj, it's asian head of global marketsd china extensively. counter cyclical adjustment factor, what does it mean in terms of liberalization moves towards an eventual free float. this is a massive step backwards. we will talk more about the outlook when it comes to chinang markets, suffering that shock downgrade from moody's last week, what that means for foreign investor interest and this trend? we will speak to mark mobius. we will be getting his insides on how he feels about china. weo, other emerging markets, are talking about vietnam after that exclusive conversation with the prime minister. mark mobius is super excited about vietnam, one of the best prospects for 2017, and we will see if he still feels that way given uncertainty over policies. we will have all the action and great interviews up next. this is bloomberg. ♪ haidi: this is "bloomberg markets: asia." ♪ haidi: north korea ram some the tension with the ninth missile u.s.h this year, the sending another aircraft carrier. germany says relations with america ha

mitsubishi said to be arranging the new facility. offering too be under 95 basis points above.s of losses and downgrades. betty: apple has launched initial production of a four inch iphone in india. work will begin in bangalore. taiwan tosing assemble the phones. they had originally targeted a start date of april. at the indians farm phone -- smartphone. japan, we just saw the gdp numbers come in. kathleen hays with a little bit of context. it,leen: when you analyze it is a 2.2% rate. that is what economists are looking at. 2.2% beat thet forecast. we were looking for 1.7%. it was 1.2% in the fourth quarter. 2.2%, longest stream of growth. five straight quarters of gdp. that has not happened it since 2006 during japan's last period of the stability. tokyo for three weeks, a lot of people were talking about this. there is so much pressure on the boj to boost inflation. haves growing, wages started to rise, you have a tight labor market. consumption up 0.4%. business spending had been negative, down zero point 4%, now up 0.2%. rate is -0.8%. this is something prime minister abe c

yvonne: mitsubishi ufj is boosting the rising cost of funding overseas expansion.hey have appointed 50 relationship manager is at its offices outside of japan to attract more corporate deposits. the bank is extending over seas. negative rates are sapping the profitability. reducethe fed expects to its balance sheet this year, a process that could take around five years. let us discuss all of that plus the potential impact on the markets and the general health of the u.s. economy with james bullard and kathleen hays. she is joining in on this conversation. so great to have you back on our air. all across from the waters. from me, let us start with john williams and his comments about the balance sheet being a very "boring process." it is your to be quite orderly. i'm curious to know what you make of that? all of us in the u.s. remember the taper tantrum of 2013. do the conditions look like we are going to avoid something like that again? james: i do not think we are going to have anything like that again. that was a communications problem, not a problem with the act

. >> mitsubishi 2-0 november runway. >> reporter: but just three hours into that flight at 24,000 feetuda triangle. tuesday afternoon the coast guard finding parts of the plane 15 miles east of eleuthera in the bahamas but no sign of the four passengers. >> the first thing that investigators will look at, was there a problem with the pressurization in the cabin? did it lose pressurization? >> reporter: reports say there was no bad weather at the time and ulrich is said to be an experienced pilot, seen here on facebook flying a plane. mysterious occurrences in the bermuda triangle, the subject of a 2009 documentary showing that 75 planes and hundreds of yachts have disappeared there without a trace. >> that is the mystery of the triangle. where do they all go? >> this particular type of aircraft is quite an old aircraft, so investigators will go back and look at some of the previous mishaps with this kind of airplane to see if it sheds light on what happened. >> reporter: blumin is a prominent new york event planner and designer. >> i'm jennifer blumin, founder and ceo of skylight group

. >> mitsubishi 2-0, november.reporter: ulrich, a one-time member of the coast guard auxiliary, at the controls. their plane left at 11:08 monday. destination, titusville, florida. but 2:22 into the flight, at an altitude of 24,000 feet, the plane disappeared from radar. the search falls in the area of the bermuda triangle. made famous when five navy planes on a routine training mission disappeared. it was long believed navigational instruments would not engage properly in the bermuda triangle, leading to crashes and sinkings. the search area is inside the bermuda triangle. is that an issue? >> the coast guard doesn't take folklore or myth into our search and rescue missions. we're focused at the mission at hand, doing everything we can to find or locate the four individuals. >> reporter: the coast guard says this morning this is still a search and rescue mission. there are some favorable conditions for surviving at sea. temperatures of the waters in the low 80s and the sea state is relatively calm. devastated fami