mr. kuroda became governor of the boj.rancine: we spoke to robert kaplan and this is what he had to say about the structural reforms needed in japan. >> negative rates might buy them time. they might on margin help ease with the trending. they are not a substitute for structural reforms. japanese officials are painfully aware those reforms are not easy. how to increase the workforce either increase fertility or immigration. these are very difficult things to do. they lack the structural reasons in japan. they try to get more women into the workforce good i don't think monetary policy is going to adjust the key issues. -- workforce. i don't think monetary policy is going to address the issues. francine: you have an older population in japan. they are against immigration. what is a central banker to do in this kind of environment? people away? -- environment? do they pull away? brian: mr. kuroda has been pretty imaginative in his tenure. it was working at what we did see is prime minister they step in with structural reforms

mr. kuroda is that it is legal. but it is unnecessary.needs to follow the example from sweden, which is a european country with laws not very different from other eu country's laws, and they have been able to pursue a negative interest rate policy and communicate clearly they are on an easing path, you and those some growth indicators are improving. so, i think they still have a lot of room to be very easy without going into helicopter money discussions. caroline: no more negatives. thank you for joining us live from hong kong. manus: caroline, we are going to repair for the german chancellor's whistele stop tour. this is bloomberg. ♪ manus: this is "on the move." it is 8:43 in london. we of the bloomberg business flash. reporter: thank you. volkswagen's agreement to pay will.s. auto dealerships cost about $1.2 billion. that is according to a person familiar with the matter. that will raise volkswagen's sentiment to resolve the u.s. lawsuit to $16.5 billion. e-mail, the carmaker is still facing possible criminal charges and invester claim

mr. kuroda last week.e had more of the same from prime minister of a -- abe we had a jewel of disappointment from the fiscal and monetary side and the third arrow of all cs, we are -- abenomi still waiting for that. aussie,he yen and the they both rallied. you had the rba drop their rates. you have the bank of japan disappoint. the yen has really taken on a new momentum on the upside, hasn't it? jeremy: we have seen markets disappointed by the lack of additional bond buying from the boj. in a sense we are seeing out of a bond tantrum starting to come through. we are also seeing one in risk aversion. in general you tend to find that investors will favor that have services or investors retreat to home markets. that is the worst of all scenarios for the japanese. anna: we have a chart in a moment that shows the yield bouncing back. what is driving the re-think around the bond market? it can all be brexit related. jeremy: i can't, but i think it goes back to the comments we saw from bill gross. talking about t

mr. kuroda have heard.ts to asset purchases, more etf purchases, otherwise more flexibility and terms of the inflation target. joining us live from tokyo, thank you. let's get to first word news. reports from japan say the government is to develop ground to air missiles to defend islands also claimed by china. it is expected the system will be deployed by 2024. tensions have been a rising over the islands ahead next month's meeting of g-20 ministers. santos will take a write-down on its liquid natural gas project due to lower oil prices and a slowdown in output. the non-cash charge will be reflected. it is the latest sign of strife, with major gas export project struggling under low prices. panasonic may be getting set to sell cheap smartphones in emerging markets. it is planning to sell devices for as low as $99. panasonic is planning to sell the phones in kenya, gagne, nigeria, bangladesh, and myanmar, while expecting to expand to another 10 markets next year. another stock we are tracking, sharp rising b

mr. kuroda or olivier blanchard, in too often we forget that. francine: we do not forget it.we do not. francine: we look at the share price and they have been very much under pressure but i do not know if central banks need to think about it, or it is regulators. problems are being compounded by compounded byd all these capital buffers and requirements. if you look around the world and the fact that banks are significantly under pressure, what is the prescription? we talk about this mumbo-jumbo as tom technically talks it, but if we are to get out of this mess, i do not like talking about the boundaries of monetary policy that maybe we need to measure things differently and look at different mandates. the comment comparing monetary to regulatory policy is spot on because if you look at what policymakers are trying to do, the monetary policy side is very easy but it is the other side, regulatory policy that keeps tightening. you have this contradiction between two very different sides of the armory and they are going a different way. i think people are rightly focusing on easi

mr. kuroda theyat is in part because didn't come forward as many of us expected them to but there is these of more to come. there is clearly a sense that this is by far not going to be the last one so the expectation is we will see more of this and perhaps dialing the amount of true fiscal stimulus up over the years to come. david: as far as you can, get into mr. abe's mind. is this as much as he can feel he can do. >> that is a good question because we have been struggling to get ait is so hard serious fiscal stimulus done in japan and it is a mix of two things. not so much what the ready toets are finance, talking about the scarcity of purchases for some time, but perhaps the constraint on what he can get through in the government. they still have different attitudes of what will be required. our advocatesr -- fiscal policy -- there is an canctation that what really drive growth isn't going to be a series of one-off physical butulate -- stimuli structural reform to set up japan for more sustainable growth. commerzbank in germany cut their forecasts for profit this year. they complained

kuroda does not have any sense of crisis in the japanese economy. >> should he abandon the of relation target? well, i have never talked with mr. s governor kuroda does not really think beating 2% inflation target is possible. i think he is satisfied with 1%. target was the old authorities tried to lower the inflation rate from 4% to 2%. raising the inflation rate from zero, i don't think governor kuroda thinks it is absolutely necessary. i think he is satisfied with 1%. manus: should we get used to -- pardon? manus: no, go ahead. well, go ahead. ask a question. think, sir, he is happy with 1% inflation, so we need to see as stimulus package? give us the details of what you think it should look like? . governor kuroda has been easing the monetary policy during the course of the last two years and has had some impact. as i said earlier, the impact of the monetary policy has been weakened. governor kuroda has implicitly been staying stimulus on the fiscal side is necessary. stimulus, i don't have any exact number what should be problem with the japanese fiscal side is that accumulated fiscal deficit is huge. continuing on the fisc

mr. abe. what would it be like if they continued their policies? francine: what i also liked is that that is the defense line of a lot of central bankers, it will certainly serve governor kuroda. i was trying to figure out this morning what it meant for the future is. the blue line you can see here is wti crude future prices. is crude long positions. what this chart tells you -- you can see the big divergence -- that money managers are increasing our prices since the most since january. the white line is that that . you can say that speculators are increasing that, which is driving up the price of wti. japan grew less than forecast. important one. 0.7%.issing estimates of let's get more on all of this with larry hathaway. we have so much to talk to about. china, japan, and oil. are you concerned about japan? tom was pointing out that they would have been in worse shape but they aren't in any better shape. >> not necessarily. the green line, nominal gdp, that target is elusive and probably out of reach. first of all, it's a fully employed economy. unemployment is at very low levels. it hasn't been this high in several decades. the economy is not going to grow. the labor force