let's bring in the head of global macro research nomura. we have been hearing some signs of policy support on the way. what is going to be in the pipeline? is it enough to stem the weakness in this economy? rob: yeah, great to be back. short answer from us is no, it is not enough. it continues to come in in drips and drives and the problems that china has now are deep-seated structural ones as you just heard from kristi on the property market. very high debt levels, high youth unemployment, deflation, and really shattered confidence right now. it is not clear to us that piecemeal policy measures are really enough to revive the economy. we remain cautious. david: rob, amidst the gloom and doom out there, understandably so because things have not on well, are we sleeping on any potential white spots in this economy that perhaps might recover quicker and/or sooner? rob: i would say, david, that the mobility from after reopening was there, and there were parts of services such as eating out that were doing well and domestic tourism and obviousl

japan's rising inflation was initially due to higher prices of imported goods, but morita of nomura securityays it's clear that service prices are now also heading north. >> translator: i think the main factor leading inflation will change from the price of goods to prices of services, which tend to reflect wage hikes and potential growth of inbound tourism. that means inflation is likely to become more sustainable even if the rate declines. >> reporter: morita also expects wages to the yeas which may persuade boj officials to believe that a sustainable inflation target is achievable. if that happens, it'll finally be time for them to change their monetary policy. >> translator: as japan's economic recovery continues, we expect base wages could be raised by 1.8% at annual negotiations next year. we forecast the boj could scrap its yield curve control policy. in the period of october to december in 2024. >> reporter: meanwhile at the japan research institute thinks increasing service prices not enough to push up wages yet. he says current hikes simply a result of costs passed through on highe

let's speak to george buckley, chief uk & euro area economist at nomura.ge. so what do you think the bank will do today? i what do you think the bank will do toda ? ~ f what do you think the bank will dotoda ? ~' j ., , do today? i think they'll raise interest rates, _ do today? i think they'll raise interest rates, there - do today? i think they'll raise interest rates, there is - do today? i think they'll raise interest rates, there is little l interest rates, there is little doubt they'll do that, everybody is forecasting it. but the big question is whether they will do a quarter of a percent or half a percent. remember last time, every economist was looking for a quarter and they did a half. could they repeat that? i think it's unlikely because some of the economic news we've heard has actually improved, we've seen inflation week and a bit, we've seen some of the surveys become a bit softer, we've seen employment not as strong, so i think all those reasons are reasons they won't do quite as much as they did last time. so much as they did last time. 50

we are seeing a miss in expectations of their net income for nomura.are watching as well. the chinese liquor company, set to release first-half earnings later wednesday. let's get a preview with our consumer goods analysts. what are we expecting? >> we expect moutai to report in line with the preliminary resort which is net income up by 20% year-over-year on the back of a 19% year-over-year increase on revenue. what is interesting about this set of results is how they managed to remain very solid despite a typical weaker quarter. so, second quarter this company in particular normally is a weaker quarter, and with a strong earnings performance as well as sales growth, it actually gives us a very good indicator of how resilient this company is in terms of its operational performance. >> what's really behind expectations for this resilience? does the e-commerce business kind of plan to that? >> well, as we all know, moutai is one of the favorites among chinese drinkers. it is the national liquor for china. but besides that, we think there are three key co

down 2% in the topics, down by 21%, we see financials down on the back of disappointing earnings, nomuraalking earnings, key in japan, we have operating income way above estimates there, but let's look at this mood music for the market and white peacock people investors are not willing to take -- why peacock people investors are not willing to take risks. what is the deal here, many people are suggesting that it is a downward swim? henderson: exactly, it seems like the optimism that we saw has started to erode. across asia, there are question marks in japan for equities after such a stellar road this year, more of that optimism at the start of the year has true -- truly reversed, and all of the stimulus hopes we were investing just has not come through. there are a lot of question marks and credit issues in a property sector which accounts for one third of gdp. it's an incredibly crucial part of the economy. these are some of the factors. in terms of the global ramifications of the fitch downgraded, it is very uncertain. there seems to be a sense that the market is shaking it off and lea

jordan, rochester of nomura on the foreign exchange market. joining us next from new york, this is bloomberg. the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. just got an order from dinosaur, colorado to start an easy to build powerful website for free with a partner that always puts you first. start for free at godaddy.com without the ones like you who work tirelessly to keep things running, everything would suddenly stop. hospitals, factories, schools and power plants. they all depend on you. no matter the weather, emergency or time of day. you're the ones who get it done at granger. we're here for you with professional grade industrial supplies, count on real time product availability and fast delivery. call click granger.com or just drop by grain air for the ones who get it done. you should angie that angie, what? angie that it means connecting with skilled professionals to get all your home projects done well so you can focus on the important stuff. it means seeing mi

. >> the first active exchange traded fund will be launched in september by nomura, but the boj unlikelyte as they reduce etf purchases. we now have the latest. rebecca, what is this about? rebecca: japan launched the first ever actively managed etf fund the seventh so there will be six new etf's across three issuers. and so, in terms of actively managing them, this is the first time japan has had an actively managed etf. japan ranks first in asia pacific with more than $500 billion of assets under management but they have been active in the etf space thanks to boj, so how this will do, it will be interesting to see what happens but since the boj governor kazuo ueda has been in office there has not been much etf's purchase. be on the etf purchase was in february earlier this year so these etf's will have to grow organically to be successful. >> what are some examples of successful active etf's we have seen in recent times? >> so active etf's have done work globally and have taken in more than $90 billion of net new assets globally. in the u.s. active etf's are 30% of active flows so ther

and a report from nomura says china may miss its 5% growth target this year the latest from beijing andead. it is the second hour of "squawk box," it begins right now. >>> good morning, welcome back to "squawk box" here on cnbc live at the nasdaq market site in times square. i'm andrew ross sorkin with melissa lee and joe kernen earnings galore, dow off six points, nasdaq up 11, s&p 500, treasuries, ten-year and two-year, the ten-year at 4.182, the two-year, 4.910. and i'll hand it over to melissa who will hand it over to dom. >> yes >> hand over hand over >> dom chu will look at this morning's premarket movers. >> hand over to hand over. i will take it, though, from both you and andrew, melissa so we'll get a check on the big retail earnings. right off the bat, target, shares are up nearly 9% on over 200,000 shares of trading volume the big box retailer reporting mixed results, profits topping expectations, but revenues did miss the mark. target slashed its full year profit and revenue outlook ceo brian cornell did note that sales and store traffic patterns improved in the month of jul