i think what the government achieves 2%. bojoda fails to achieve 2% growth, [indiscernible] it is an important target for the government. but i think the government wants the boj to keep it. boj can change 2% inflation growth without any opposition from the government. david: since we are talking about the new term coming up, we have two new deputies. one is the seen as someone who can influence the banks and become more aggressive. do you think he can? he is also the deputy governor, which means he has to support governor kuroda. viceide: i think the two governor candidates could be very different. one was promoted from the boj, could be reasonable. proceed with a normalization policy in the future. reflationary -- reflationist. the power of deputy governor in bank of japan is very low. it is not inflation in general. the boj law that requires the vice governor to support the governor. possiblet is [indiscernible] it is difficult for him to continue to oppose his policy for long-term. it was the case with the previous governor.

the policy board member on the boj also at going the same sentiment.he is saying is wages and inflation have been weak, just to go through some of these lines here. the two year point has the growth rate dropping to 1%. the boj is very far away from even thinking and waking up, getting out of bed, to even consider changing here. hopefully, that addresses what governor kuroda said, the potential growth of the economy has to be expanded and that hopefully will at some point -- we saw a little bit of that this morning, the capex spending. on that point, let me bring up a terminal chart, just to show you where the low yields are at the moment and we will tie in the story. have a look at the three month yen libel rate. whether you are part of the kerry or corporates looking for cheap funds, that is a good proposition for you. 1 on your bloomberg. that is the story we will talk about next. theserporate will find record low rates. we are joined by our asian credit reporter. we showed our viewers here what that rate looks like. and if negative rates are not yo

still ahead on this program, the final spread of the week ahead the boj decisions from and coming up weekend, the italian election. this is really old. -- ♪ jonathan: this is bloomberg "real yield" and is time for the spread. we have rate decisions coming from the european central bank and bank of japan and wept the beginning national people's congress meeting in china, the u.s. jobs report, and the italian election. still with me, henry peabody, einel. and lori f why are we, about the italian election? realistically there are not a lot of great choices there, so it will be status quo them up without a lot of drama. henry: we are at a point in time where europe is in a multistate situation which gives us a sanguine view of it, and lori's view, probably the same, it seems like extremists are not going to take too much of a check in that election. matt: i think it is noise from the u.s. political framework. some fireworks, and compared to italian elections, we went, and they have gone numb to figuring this outcome and easy the reason may's speech says nothing to brexit, so it is unlike

the ecb versus the boj -- the european central bank against the bank of japan, who hikes first? or the boj? henry: ecb. matt: ecb. lori: ecb, absolutely. jonathan: fantastic. jonathan: thank you for your thoughts of what has been an eventful week. that does it. we'll see you next week, this was "real yield". this is bloomberg tv. ♪ mom you called? oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. ♪ scarlet: i'm scarlet fu and this is bloomberg "etf iq," where we focus on exchange traded funds. ♪ scarlet: are passive funds looking to engage? state street joins blackrock in taking up the issue of gun violence with weapons makers following the florida school shooting. vanguard goes where it has never gone before, and we speak with john merrick about why the firm is making the leap from plain-vanilla passive

the ecb versus the boj -- the european central bank against the bank of japan, who hikes first? or the boj? henry: ecb. matt: ecb. lori: ecb, absolutely. jonathan: fantastic. jonathan: thank you for your thoughts of what has been an eventful week. that does it. we'll see you next week, this was "real yield". this is bloomberg tv. ♪ ♪ scarlet: i'm scarlet fu and this is bloomberg "etf iq," where we focus on the access, risk and reward offered by exchange traded funds. ♪ scarlet: are passive funds looking to engage? state street joins blackrock in taking up the issue of gun violence with weapons makers following the florida school shooting. vanguard goes where it has never gone before, and we speak with john merrick's about why the firm is making the leap from plain-vanilla passive index funds. and technology takes flight. the ins and outs of a highflying etf that tracks the global drone

the ecb versus the boj -- the european central bank against the bank of japan, who hikes first? the ecb or the boj? henry: ecb. matt: ecb. lori: ecb, absolutely. jonathan: fantastic. thank you for your thoughts of what has been an eventful week. that does it. we'll see you next week, this was "real yield". this is bloomberg tv. ? . ♪ david: what would you say are the greatest pleasures you have received? or what you are most proud of? >> ok. this is good. thank you. this is good. [laughter] david: i watch your interview shows. i know how to do some interviewing. >> i was really busy. i was into building this company. >> if all the diseases have been taken, why shouldn't i? i will take a tax. >> hello, general powell. this is ronald reagan. yes, sir. [laughter] >> actually i think it was my husband who set the interview up, to be honest with you. david: did he get a finder's fee or anything? >> i am still paying that finders fee. >> no one plays a song when you walk into the room anymore. [laughter] >> laura didn't bring the coffee. [laughter] >> would youou

endor: the boj signal the of the easy money era. >> and the chart of political and -- a potential tradear looming. hello, from sydney where it is just past 9:00 a.m. this is "daybreak australia." >> kicking off the week in asia and ending the weekend here in new york. i am betty liu. we will be looking at how all of the action on wall street will play into the pacific trading day. we are waiting the results of the elections in italy. we have the national people's congress in china kicking off a lot of economic data to digest. including, at the end of the week, fridays nonfarm payroll reports. week --u can imagine a the week it will be for the markets. inuick check of the markets the u.s. on friday. you can see the mixed session as traders and investors are digesting the impact of the tariffs. the s&p closing 0.5% higher. the nasdaq gaining. you can see some traction, up 1%. confusion in the equity and the bond markets leading to a more volatile session in asia. have our markets already open. new zealand has been trading for just over a couple of hours. looking like this. currently highe

plenty on tap in asia to look forward to before the boj meeting. are expecting a bit of a rebound on the nikkei 225. it will percent gain according to chicago futures. a lot of stuff happening today, like treating from a fire hydrant. let's go to washington dc right now because president trump's economic advisers leave the door open for exacting some countries and downplaying the fallout of a possible trade war. joining us from washington is joe . the latest headline we saw is we are expecting sign-ups on steel and aluminum tariffs at sometime tomorrow afternoon in the u.s. scheduled ae conference at 3:30 p.m. washington time and we'll see what is in order. it is clear the criticism from congress from corporate america and the threat of retaliation from the eu and elsewhere has had some of fact. today, while keeping up a brave --e that they want flinch they want flinch from -- mexico and canada, the two biggest suppliers of the u.s., and other countries as well. and came from wilbur ross press secretary sarah sanders -- what other countries remains

it raises the question, the ecb versus the boj. central bank against the bank of japan, who hikes first? is it the ecb with mario draghi or the boj with governor kuroda? henry: ecb. but is close. matt: ecb. i'm not sure japan ever moves. lori: ecb, absolutely. jonathan: thank you for being here with me. it's been great to have your thoughts. , and peabody, matt toms lori heinel. that does it from new york. we will see you next friday. this was "real yield". this is bloomberg tv. ♪ ♪ scarlet: i'm scarlet fu. this is "bloomberg etf iq," where we focus on exchange traded funds. ♪ scarlet: are passive funds looking to engage? state street joins blackrock in taking up the issue of gun violence with weapons makers following the florida school shooting. vanguard goes where it has never gone before, and we speak with john merrick about why the firm is making the leap from plain-vanilla passive index funds. and technology takes flight. we show you the ins and outs of a highflying etf that trac

bethe cpi target is going to attained, what does that imply for the boj? ng to be a policy reversal or gradually tapering back? he is attempting to limit the rate of appreciation in the yen. he doesn't want to see that 100 threshold hit in the near-term, because that will have consequences. he is trying to walk a tightrope to say we are getting closer, but don't automatically imply that will see us moving. the market will try and move in that direction. we have been arguing we thought they yen would continue to strengthen. we have seen reversal now, but ultimately, we are still headed towards the low 100s in the course of the next few months. add to the might scenario, and you can follow all of the editors on the bloomberg. the question is, what defines an exit? what would cibc say? jeremy: it goes back to the ecb and trying to push back the idea of tapering. there is a comedic nation's issue. in a sense we are talking about -- there is a communications issue. in a sense we are talking about fine-tuning. reversal, fine tuning, and i think the markets will b

nejra: some people think that the boj can start exiting in 2018. early? urence: i would say it is in the very earliest -- no. manus: the lead time between the bank of japan and the fed, one of our viewers sent a message which is typically around two years between the bank of japan and the fed. intervention on the yet, everybody is saying 100 is on the way. is it in your opinion and will he intervene? laurence: eventually and they will in this. it happens very quickly. manus: there you go. it is almost as good as waking up and reading the article, thank you very much. up next? nejra: door supposed plans and nine point -- deutsche post ands a nine point percent we talked to the ceo david appel. this is bloomberg. ♪ nejra: it is 6:30 a.m.. you are looking at a shop in an press palace. down 5/10 of a percent on the dollar against the yen. cohn is resigning from the white house. concerns around trade wars back again. manus: let us talk. had the fourth-quarter earnings this morning. analysts 1.8% above the estimates. frank apple, great to see you. thank you for

there are some limits to what the boj is ready to do. and that is what he will do. another one of our bloomberg stories points out that the good news from the boj so far is that the scandal surrounding the prime minister is not getting in the way of this important set of oaths. yvonne: even talking about the scandal, we have been talking about it for days now. it is not going away. some guests say that if he goes, it could lead to a domino effect. does it affect the boj? reporter: you are referring to the finance minister. this is very important. let us think about it. office, six year in longest serving prime minister in japan, he was looking to former prime minister's. he survived some big crises in the past. this seems to be different. business leaders complaining that the japanese people are upset about this. why is this important to the bank of japan? the prime minister came into his latest term and wanted to set up the three arrows. the first arrow is aggressive monetary stimulus. this is one of the keys to mr. kuroda being able to

two-year, five-year, 10 year, 30 year, and the boj met today. they stayed the course with their monetary stimulus on friday. final policyda's meeting before his new term begins next month. inflation is a far cry from the boj target and he made it clear during a parliamentary confirmation hearing this month that powerful monetary easing is here for a file -- while. peers who are raising rates or normalizing policy, this the inflation gauge with the boj lagging. fed's inflation gauge at 1.7% and the ecb is at 1.2%. tortney donohoe we are going the -- going to the -- going to. added the mostrs workers last month since the middle of 2016, payrolls rose by 313,000 in february, more than expected and the two previous months were revised upward by 54,000. the jobless rate is 4.1% for the fifth straight month. wages increased at a slower rate of 2.3% in one year ago. insulted, threatened, and mocked each other but president trump and teen gunman -- kim jong-un have agreed to meet for the unprecedented summit, no time yet. president trump says north korea

inflation is so low that it will keep the boj where they are for the next six or nine months. pretty much the boj. everyone else is getting back to a normal policy setting. anna: thank you for your time. joining us this tuesday morning. sarabia'rman of saudi kingdom holdings gives his first interview since being released from detention at the ritz carlton. he has a lot to say about the terms of his really's and his investment strategy from here. his release and his investment strategy from here. this is bloomberg. ♪ ♪ matt: good morning from berlin. this is "bloomberg daybreak: europe." i'm matt miller. .nna: i am anna edwards these are today's top stories. in his firstd interview since being released from detention, the saudi businessman talks about hunting for deals, reshaping his empire, and his relationship with the kingdom. >> i have been vindicated. we have a confirmed understanding with the government going forward. anna: jerome powell kicks off his meeting as fed chairman today with the rate increase almost guaranteed. but how many more hikes does he see this year? tec

tariff tensions and the possibility weighing on the boj. : i think it is a question of any big central bank, with the ecb meeting on thursday. ofy did drop their pledge up boosting bond buying, and the doves of the ecb are trying to placate the hawks. i think what has the headlines that caught the attention at the press conference, when mario draghi was asked about tray tensions on the ecb, here is what he said. >> disputes should be resolved in a multilateral framework. unilateral decisions are dangerous. certain worry a or concern about the state of international relations, because, if you put tariffs against what are your allies, one wonders who the enemies are. kathleen: who will be the enemy? ecbng the conclusion -- the listing bias is gone but tightening. yvonne: still in the middle there, kathleen. the boj in the middle as well on policy changes, but signals should we look out for in the meeting? kathleen: i don't think we will get signals on anything that will happen today, but governor kuroda will start the second of his five-year t

for a story at the boj. do look at tapering, so they had two different dynamics, the tariff issue and the yen. donald trump said a trade is good that you have persuading to do in the markets. the markets do not agree. alix: the markets dropped. it is interesting to see where the bid is in the bond market rate not in the u.s. traders do not know what to do with it. david: back to the day he was elected president, this was the concern. people were bullish on de-regulation, fiscal stimulus, but the one concern was trade. it looks like it may have come back to alix: if they price it out quickly, how much they price it and how much of a rating do we have to see? that is the question over the next few days. there is a lot of drama in europe, as well. some political issues. david: a couple. let's get an update on headlines outside the business world with kelly lines -- kelly lines -- kailey leinz. kailey: theresa may delivers a landmark speech on brexit today, when her cabinet haggled over for hours. she will tie he

line going to draw a between this and what the boj was saying, but the news you mentioned seems to bet is behind this drop we are seeing in dollar-yen. there we go. we are closer to that one of sex handle on dollar-yen, which was the level we were trading at this time yesterday. we will get you more details later on. in the meantime, let's get an update of your first word news. >> thanks. qualcomm jumped after the financial times said the former chairman is seeking funding for a buyout. ft says the jacobs has approached several investors, including softbank, in a bid to acquire the chipmaker founded by his father. he has informed the board about his plan. the news comes after president trump blocked broad comes to for qualcomm. says government ownership of india's banks is regulation. he called for more power to regulate and the level playing field between the public and private sectors in the latest bign of discord between rbi and its bosses in new delhi. india has amended a law that ann's overseas companies from funding political parties. andndra modi's party national congress were

-- the boj in the fed. -- and the fed.watch as we continue to see these japanese political developments way into the japanese currency. tracy: markets really in weight and see mode ahead of the u.s. inflation data. something else we are waiting for, president trump is going to welcome the crown prince next week as international a petition continues to build head of the saudi aramco listing. we also have some reports saying the ipo might now be delayed until 2019. mills.urn to robin thank you so much for coming on. nice to see you. we talk about saudi arabia losing face if it doesn't go through with the listing. i have to ask at this point -- i am you remember, this would not be the first time that saudi arabia has shelved a big initiative. you remember the gas initiative from 1998. that was quietly canceled for his later. -- four years later. robin: those two cases are similar and different. the massive gas initiative, aramco never wanted to do that. they bitterly fought against it. initiative is also driven by the top but

ahead on this program, the final spread of the week ahead featuring rate decisions from the ecb and the bojoming up this weekend, the italian election. this is bloomberg real yield. ♪ jonathan: this is bloomberg "real yield" and is time for the final spread. coming up in the next week, we have a pair of rate decisions coming from the european central -- and the bank of japan. we also have the beginning national people's congress meeting in china, the u.s. jobs report, and the italian election. still with me, henry peabody, matt toms, and lori einel. lori, why are we so home -- so calm about the italian election? lori: realistically there are not a lot of great choices there, and we think it will be status quote prevails, but not without a lot of drama. henry: we are at a point in time where europe is starting to call us around the idea of a multistate situation, which gives us a sanguine view of it, and lori's view, probably the same, it seems like extremists are not going to take too much of a chunk in that election. matt: i think part of it is crowded out by noise from the u.s. political

space, but actually, from a global perspective, the marginal central bank is coming from the ecb, the bojrest of the world at this particular point in time. when you're thinking as an offshore investor, looking at the u.s. government and the unclear few of the dollar, two -- do you get a weaker dollar and what does it mean for currency exposure? when you look at u.s. rates on a hedge basis for foreign investors, is not that clear that it is probably the way investors need to think about markets. we do think the front and is -- the front end is very appealing now, you get rates of one to three quarters in money market type products. it will give investors concern. but i tend to agree with what has been said already, ultimately growth is still very attractive and should support risk assets and seat spread tightening in select spaces. jonathan: diana, staying with us alongside guy and rj. in the markets is far this week, what a week, treasuries look like this. yields up to basis points on a -- yields up two basis points on a 2-year note. we creep higher on the 10 year. still ahead, the final

and what we should be looking at the markets -- adam haigh, we know the boj has been swallowing a lotbonds in japan, and you look at the killing of trade of bonds in japan. what happened? wake has been a remarkable in japan and from what we heard from kuroda is that in the fiscal year coming in and -- the boj has swallowed up 75% of the issuance, which is staggering. it was amplified on tuesday. we saw no trading at all of tenure japanese government bonds on tuesday. it shows the example of what is happening in the bond market there. terminalcan see in the on this chart, it shows the trajectory of the declines that we have seen in volumes on the bond market in japan. this is largely to do with the massive asset purchases the bank of japan have been doing for years and we will certainly and you to see more under kuroda's second term of this monetary policy construing and japan despite some noises been made that we might get into conversations around when they start the exit that policy. for now the bank of japan continuing to buy all the bonds they can get its hands on. month from the

said it would be necessary to speak to other banks when the boj decides to make a change.ted exit around central bank policy. >>> the european automobile manufacturers association says international trade is an important pillar of the region's industry competitiveness the acea said eu and u.s. carmakers have been integrated for decades, adding it supports free and fair trade. cnbc caught up with the audi chairman and asked him about the potential impact of duties on european quarcars >> first of all, we in the industry got some hours ago this message. of course we first of all are listening. i'm a big friend of open and free trade markets, and we will have to check whatever will be decided. audi is a goodcy z citizen in t united states. step by step we try to balance our currency hedging >> in case there were tariffs, would you consider moving capacities, production capacities inside united states? >> first of all, a decision on capacities is based on strategic plans of the company and surely not quickly only because of tariffs i think in the premium segment it is easier i

david: something got lost in translation on the boj targets -- policy. ther, we will buy this much. sometimes those targets do not add up. you're saying they don't need to do anything. but there is the case to be made they need to drop or just one of those. jordan: it is guidance. they have already soften back. softened that. we are seeing tapering from the bank of japan continue. they easy to maintain if are not making purchases at the same rate as before. i think it is a healthy position to go to the target. david: to pivot to some of your g10., on there is one thing you could help me clarify. you say brexit is not as bad as the market priced. what does that mean? jordan: we were long standing by euro, a big trading partner with the u.k. eurosterling, we have to be more tactical in our thinking. if we are saying brexit is priced for perfection, we have to choose the currency we are to -- we think euro is going 130 against the dollar. there is an opportunity for sure cap against sterling -- short cap against sterling. you have what is going on with of th

should we expect a surprise from the boj over the next 12 months?igma. we don't know what they will do. out with policies like yield curve control, that was different and unexpected. we know they will take slightly out of the boss -- out-of-the-box solutions. we will be watching closely, but trying to predict is quite hard. david: absolutely. it has dominated headlines across monetary policy headlines. thank you. coming up on the program, testing the waters when it comes to trade. we're asking a chinese conglomerate how president trump's tariffs will affect their business. this is bloomberg. ♪ haidi: breaking news, finality about the noble group or reporting of a binding pact with of the final restructuring. getting some of these details, the group made up of ad hoc hedge fund participants, representing 46% of claims. saying they will get a new three-year, $600 million trade financing loan as part of the deal. implementation of the restructuring process taking place in the upcoming months. getting a facility as part of the pact as well. monday, the

yvonne: and should be pure raises a lot of questions about the boj. at the lost opportunity to reduce stimulus last year when markets were doing very well, but now, there seems to be a higher hurdle not just with the trade pigeons but also -- trade tensions but also the bigger political scandal as well. seijiro: i think that the ball is in the court of the corporations. the boj has used up most of its cards really. they have a deep pocket. the biggest market keeps asking for more and more in the financial stimulus side. i think it's about time the corporations that starts enacting ---that's exactly what mr. abe was trying to induce. if the scandal dwelled on, there is that pressure that mr. abe can impose on many of the japanese companies to start taking risks. it's going to go back peddling. that would be a negative issue for the japanese economy as a whole in the long run. yvonne: it's going to be tough for these corporations. plenty of these exporters here now increasingly concerned about trade war's as well. thevulnerable is japan to escalating tr

that is putting pressure on the boj.hey have been kuroda did say they might in 2019.when to exit it is not a topic of conversation for this year. this will weigh on japanese stocks as well. korea and india were the bellwethers for asia. they played the tech story, the asia story, but this year it is the pound stocks, and the yen is hurting them. matt: mark cudmore, thank you. you can follow market insights on the bloomberg. up next, beijing backlash. president trump has said to be considering a clampdown on chinese investments as well as imports over alleged intellectual property theft. this is bloomberg. ♪ ♪ you're watching the "bloomberg markets: european open." let's get a business flash from juliette saly. steel shares have plunged in tokyo after the president confirmed his resignation. that is after an independent investigation of the fake data scandal found more misconduct. he will quit on april 1. his successor will be named in the coming days. kobe steel executives vice president and the head of its aluminum unit

the boj is key. loser to a big development, alberto, the reality is a lack of trading. i was thunder struck by a bloomberg article 10 days ago, three weeks ago on the lack of trading and full faith in japanese credit paper. what does that signal to you? generally,think japanese markets are in a low liquidity market. we started the year with a big volatility event in february and we see we are back to low volumes across, i would say a lot of bond markets, not just jg b's. what i read here is with a lot of regulation over the years broker dealers have popular constraints, the inventory limits are much lower and it is a bottleneck for bond markets. second half of the year, this bottleneck will amplify it. tom: i think this is very important, what mr. gallo said. let me show dollar-yen as we go to break, francine. interesting chart, maybe as much as the u.s. dollar and a weak dollar implies a strong yen, and to get through the 100 level on yen would be remarkable. francine: we also need to remind ourselve

kuroda, a but more dovish with the boj announcement. announcement regarding president trump and kim jong-un's historic meeting. yields are moving higher. the 10 year yield is trading at 2.87%. the spread is modestly flatter. trading on its own up by 6/10 of 1%. 200-5000 jobs is what we are for with the jobs report. -- 2500 jobs as what we are looking for. unemployment: stays at 4.1%. wages rise. the year-over-year number at 2.6%. a significant number for january. we stopped again would be 2.9%. the guys on the production line got a bit more of a race. -- more of a raise. rose back up to 34.5%. the biggest jump in the labor 800-6000ce 1983, people into the labor force -- 8,600 people into the labor force. the u6 stays at 8.2%. atufacturing jobs held 31,000. retail jobs up only 15,000. an adjusted number, because there were fewer people higher this year. there were 300 additional coal jobs. the message from the labor department to the bond market, nevermind. >> [laughter] a big selloff -- a jump in the dollar. now.y market up a session ala

now economically speaking and how the economy is at the moment going to grow faster. another boj member talking about the growth rate likely to , sayingween .5% and 1% there is demand to keep growing at 1% to 1.5% this year. heidi: we know this particular board member has been calling for many months for expanded additional easing to hit that inflation target earlier. he has been a dissenter on pretty much every single boj decision we have seen in recent memory, saying additional easing needed to hit that cpi target, but pretty interesting to hear garuda really acknowledging the weakness when it comes to wages and inflation. really, it is the same story we have been hearing, so no change way comes to any sort of shift we might have been reading on that tapering on the long end of the jgb buying in the yield curve control program. let's get to paul allen in sydney. paul: china's leaders have approved nominees for top thernment posts as government promised changes to the regulatory structure. the committee finalized the names during the regulatory meeting in beijing, and that will

in asia we have the boj litter this week. om any of the 30 economists we of spoken to, but certainly from the rally and where we go for regional growth. rishaad: you are right. the european central bank, uncertainty. there are road humps that have been raised if you will, even though there is uncertainty who will be governing italy. have germany with a grand coalition making way for angela merkel's fourth term. getting started off here, let's take a look at the market action. sophie kamaruddin is doing that. the yen is extending a loss with sentiment is seeing whether trump is more bark than bite. the asian stocks when of the first advance in successions. jakarta join the uptrend, bjc adding about 1%. we are counting down to the rba decision. the aussie dollar picking up after being derailed earlier by the miss in sales and blp data. check out the korean won trading inflation edged higher in february. let's check in on commodities. we are seeing agro commodities on the move. steel futures. they are slipping in shanghai. the ou

vonnie: this $2 billion fine is substantial, but there -- is there any loss for the doj -- the boj? doj? stephen: early indications that the doj wanted more than $5 way, it is an a victory for the department of justice but in a way it is also a victory for barclays and hopefully the money will go to consumer relief and helped draw a line under the scandal which is one of the most costly in history. mark: any idea when that cloud is going to go away? stephen: the investigation into jeff daily's pursuit of a whistleblower, we are now reaching the year anniversary of that and have heard nothing from the u.k. regulator. him inll be affecting his day to day job and he will want to see that resolved that we have no indication of when they will be done. mark: stephen morris, u.k. banking reporter for bloomberg news. vonnie: coming up, saudi arabia celebrates. why the country just received secondary emerging market status and what it will mean for the kingdom. ♪ mark: live from london, i am mark barton. vonnie: and i am vonnie quinn. -- has announced it will add good newsia to the -- for th

the boj owns between 70% and 80% of jgb's. kathy: i think it's dangerous. i think it reaches a point where it is dangerous and the bubble pops. i think in some markets we are pretty close, but it is always the trouble, how do you time that? how high do the fed fund rates have to go to get that? i would argue we are not there yet because it is still below the rate of inflation and so we still have very easy conditions right now. jonathan: michael. bob: i think the fed has a long way to go. projections come out. i think the dots will drift higher. they are behind the curve. kathy is right. it is a negative real yield. they are not interested in normalizing a volcker-esque pace. for us in the markets, that is just great. jonathan: so you guys all agree that things are great, fine. so what is it in the price? if i can bring in the short positions of treasuries, the consensus is get your short treasuries. if you put that against the yield, i'm wondering if the pain trade might be developing in the short-term here, bob. i borrowed this line from elon musk. is it s

the comments from the boj governor mark the first time he is provided any guidance about an exit. inflation will reach 2% next year. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. i am taylor riggs. this is bloomberg. mark: the present will impose a 25% import on tariffs. this sent shockwaves around the world. interviewed the director general of european steel. i asked him how the eu will react and what options are at its disposal. an option.ion is safeguard measures are an option as well. go to the wto for a ruling. it could be a combination of those three things. the europeans steel lobbying group. he said this isn't about national security, which trump said it was yesterday. it's trying to pull up an industry that is a viable. he wants to be with the overcapacity that china has to the market. interview,scinating chase after it on the bloomberg. china is one of the top questions. does this bring more competition into asia? discuss, we have joining us the ceo and founder of gmm nonstick coatings. they'r

inflation is still half below the boj's target. is this as big a deal as the market is making of it? viraj: i think currency markets, they like a bit of that, to see where currency is going. just the fact we are talking ,bout a potential mobilization that is going to start to get priced into the currency quite quickly. for dollar-yen, we have the risk that we get a throw back to the 1990's. 1990's have style anti-trade policy. mark: we will save italy and germany for our next guest, but let's check in with the ecb. we have done the economist poll. the suggestion is that maybe the early indications were that the ecb would say something in march, or tweak something. that has been pushed back now. is that the case? viraj: i think so. it does not help that eurozone data has lost a bit of steam. the story for the euro-dollar, it is a move to 1.30. for the ecb, it is the path of least resistance. we have gradual strength for the euro. they do not want to let anything untoward any country. mark: up next, we focus on the italian election ah

told his confirmation hearing the boj can adjust bond yields in the stable manner with the time comesto kuroda says he will be discussing an exit after april of next year. a private survey says the indian services sector contracting for the first time in three months. it adds pressure on the modi government to boost growth as the r.b.i. terms hawkish. the nikkei india services pmi slid from 51.7 in january, the businessnce august as conditions deteriorated due to poor command. demand. powered by more than 2700 journalists and analysts in more than 120 countries, i am jessica summers. this is bloomberg. yvonne: we counting down to the market open in tokyo. sophie kamaruddin. street,ce back on wall we look set to follow those gains, but we are not completely out of the woods. sophie: markets are gauging just how serious trump is when pushing ahead with these tariffs he has atopposition home. american corporate coming out in opposition as well. callinginum industry is on trump to hold back on the 10% tariffs on aluminum exports. taking a look at the terminal, i want to show you this char

investors will be very active buying the space, but from a global perspective the move is coming from the ecb, bojrest of the world at this particular point in time. when you are thinking as an offshore investor, looking at the u.s. curve and the unclear view on the dollar, does fiscal widening mean you get a weaker dollar, and what does that mean for your currency exposure? when you look at u.s. rates on a hedge basis for foreign investors, is not that clear that it is probably the way investors need to think about markets. we do think that yes, the front-end is very appealing now. veryet rates of 1.75, in tight money tech products. that will give investors comfort at a point where the -- is here, but i tend to agree with what has been said already. ultimately, growth is still very attractive and should support risk assets and see spread tightening in select spaces. -- ourn: dian guests staying with us. in the markets so far this week, what a week, treasuries look like this. yields up two basis points on a 2-year note. we creep higher on the 10 year. getting back to 2.90 and 2.89, and 3.19, and i

i'm quite surprised at the way the market is responsing to responding to events on the ecb side and the boj won't do anything in terms of qe until september. nothing new there. the bank of japan won't do anything on their policy side until 2019 it rests with the fed and what the fed does the non-farm payroll data has implications in terms of the feds dots coming up. that's where the real impact will come. >> in terms of these tariffs we're looking at, we have got some exemptions, mexico, canada. does that now mean this is not a big issue for the marketplace or are you still concerned about implications >> i'm still concerned there's a lot of unknowns. enormous uncertainty that uncertainty will cap risky assets like the equity market. let's see where the carve-outs are. who are our allies, how is that defined? i think it will be tough to see exactly how that plays out and what are the retaliatory measures we'll get from other countries? >> at what point do you get worried about retaliation? if it's still are the rirhetori on steel and aluminum, are you relaxed for it goes to cars would that

and we are heading into meetings with the boj and ecb. e they going to deliver a little more patience for the market when it comes to unwinding accommodative policy? enzio: i agree with you. just wanted to point out that all the global indicators have tractor since the beginning of last year. the steam is out of the cable so to speak. that will make be central-banks even more cautious. i note somebody fragile in recovery. i am not a buyer having lived in europe so long. yousef: so, whats the key investment strategy advice that you are recommending? enzio: a few things. first of all, i would short the euro, because it has got to go down once the market's subconscious realizes germany's not the political powerhouse it used to be. second, i would get rid of the bank holdings and third, i think you'll find powell being bullied considerably by kaiser-trump, as i call him. that will unsettle markets a great bit. yousef: enzio, always strong views,. thank you for joinging us. total says anything is possible when it comes to the price of oil. we h

endor: the boj signal the of the easy money era. >> and the chart of political and

the bank of japan meeting before his new term begins, the boj left policy unchanged. expect inflation to go from here? dani joins us now. i want to start with you, what is the latest reading for the global growth picture and what are the expectations? dani: again again we have heard this phrase of synchronized local growth and that has really propelled markets. about this truck with me -- chart with me that there's a little bit of caution to that story. before we had prices moving ahead with most major economies, but we are starting to get a mixed bag. let's take a step back and not just look at these individual markets. in this whole picture, it is not as even as it has been in the past. draghi coming in and serving at an auspicious time. the other in the stands out to me is when you talk to people about why markets have been able to sustain a different headline risks and my policy uncertainty is only showing a few cracks in the market, but still we get this march higher in assets, it is because of the synchronized global growth. changing,cture is that questions wheth

that seems to be changing in the case of the boj and feels like markets are seeing again for less of e euro 2.0 and that could ultimately point of further gains for the yen, especially against the dollar. one factor that makes this worried that the dollar-yen may extend its slide to over medium-term is the factory yen is the cheapest g10 currencies. our long-term estimates below hundred, so from that point of view, you would think the risks would be on the downside for medium-term point of view. mark: what are you -- what about european trumpism? how could that proof negative for the euro? becoming arumpism is global concept, based on the feedback protectionism could dominate global relationships and nationalism to dominate the price action in the fx market. there is no surprise that all in , you got almost half of the votes going to antiestablishment parties that have more or less embraced trumpism and they also and stricter migration. something else that brings them close to it trump once is aggressive fiscal stimulus ridley. that could -- stimulus for italy. that could play out dow

. >> the boj on friday. and the jobs report. >> that does it for what did you miss?hnology is next. >> have a great weekend. this is bloomberg. ♪ >> i am mark crumpton in new york. you're watching "bloomberg technology" and here is a check of first word news. the canadian prime minister is calling president trump's plan to impose tariffs on steel and aluminum absolutely unacceptable. he said it makes no sense to highlight canada or canadian steel or aluminum as a potential -- or canadian steel or aluminum on as a potential threat. the families of the 58 people killed are getting to enter $75,000 from a $31 million fund that started as a gofundme ever. the las vegas victims fund said 10 other people who are paralyzed or suffered brain damage in the deadliest mass shooting in modern u.s. history will also be paid. the ceo of delta airlines says the carrier is not taking sides in the national debate over guns. this is after georgia lawmakers to punish delta for discontinuing promotional discounts for nra members. would have directly benefited atlanta-based delta. funera

generale, we are looking at quality income for japan, given the yield curve control and the qe done by the boj. the comes in and out fo investor portfolio. today the concern is a lot less than we have seen over the last few years. anna: we have moved on to japan. it is dropped in about where you think the cycle will be over in the u.s.. how much conviction -- what is you say, 2019 to 20 -- how much conviction do you have around that? kokou: if you look at the business cycle since 1949, we have had one of the longest in history, so clearly economies are not designed to last forever. anna: but they do not die of old age, as some say. kokou: absolutely. today there are catalysts and triggers. you have to look at the high-yield quality of balance sheets as an indication. the taxing of the business of the interest rate policy is usually a trigger for the end of the business cycle and finally, profit margin topping out in u.s. equities is also a warning sign. so, 2019 to 2020 is where the cycle ogut to end, but the tax reform could extend the cycle. anna: the kind of percentage do you put on it endi

there is talk the boj may be reversings. that is a fear. be why we're down 700 or 600 where we might be today, that is tariff related that is a real problem and something you will have to deal with. ashley: phil flynn, thanks for sticking around. to we need this out of our system and shaking of the tree and let the dust settle and pick it back up again? >> i agree. as your guest said we're doing the great unwind, if this is it, this is going pretty darn well. i don't see this as total meltdown in prices or a slow down in the global economy. there will be some pain along the way. but the best way to do that is with volatility. instead of a straight move down or a crash, i would rather see these type of corrections along the way. shakeout the trees. exactly as you say. in the economy, i think is adjusting to it. short term today, it is the headline, you know, tariffs, what is going to happen. that is problem for another day. in the long run, the dow having 10% correction, i think this is the second one we've had, you know from the top, is a g

making interesting comments -- haruhiko kuroda making interesting comments on the policy generated by the boj the stock of the hour, axa. we have already talked about how the deals team generated the story for us over the weekend. trading softer this morning, down nearly 7%. it was down more earlier on in the session, but what we are looking at, and you can do this on yourd function bloomberg, if stock is trading on big volume. if you take a look at the index points, axa is the biggest one from that point of view. the italian banks coming in on that story. the other political story today is an interview with germany's deputy finance minister. he will be the health minister spahn.jens a possible successor to angela merkel. of next, "surveillance." i am going to bloomberg radio. this is bloomberg. ♪ ♪ >> voters punish mainstream parties. what will it take to form a government? we are live in rome. china sets its gdp target at 6.5%. no exemptions. theresa may expresses her concert to president trump over controversial tariffs, but his administration is not budging. good morning, and welcome to "

think about this dynamics in europe are being held back by the ecb who meet this is week, so does the boj. i think rates have to go up across the european union. let's not forget, they're 2.3% gdp. >> there was a lot of flow last year into europe in that you were going to get this recovery but even then while it was up, it wasn't adjusted for risk. >> you don't think there's more bang in europe versus the u.s. based on valuations relative to the u.s. >> i'm long european financials. i think if you're going to own them, european financials are more geared toward a higher rate economies. i think siemens looks interesting because i don't think it's ge and it's suffered a similar fate. >> you take advantage of the declines in these european stocks because of the trade conversations we've been having over the last many days? >> i get global exposure if i buy the s&p 500. i'll let timmy talk to individual names in europe but when i look at how the market has -- the s&p has defended that double test of that 25/32 level in the s&p we've rallied back 50%, everybody knows i lovre retracements my qu