joining us from tokyo. tokyo open,the trying to see if there are reactions for the numbers.ng? >> looking at gains in the markets. factory readings out in a half hour. quite a bit for traders in japan to chew on today. we have shinzo abe's party getting crushed in the tokyo election, it sent the yen higher . there could be room for more yen tokness should abe opt provide economic stimulus to gain report. at reducing the dollar yen 108.01. we are keeping an eye on toshiba . looking at the ipo. watching fairfax media. it is no longer for sale. that is a look. trading gets underway in australia and japan soon. this is bloomberg. ♪ ♪ >> stock futures signal gains for the asia-pacific, japan in the spotlight after shinzo abe's tokyo drubbing. landslide, the ldp's worst ever performance in the capital. >> china's latest hong kong connect started, giving investors access to a $10 trillion debt market. squabbling siblings in singapore, the prime minister's family feud is damaging the city standing. the second hour of "daybreak asia" coming to live from bloomberg's asia and u.s. head

tokyo metropolitan assembly.be to focus on the things that are important for the people of japan. focusing on the constitution changes are his issue, not the country's issue. betty: i thought it was interesting, but i don't want to gain,oo much into one-day but the markets themselves, look at the nikkei, they are rallying right now. that and really short-term movement here, it does not seem like investors are worried about the implications of this. i guess part of it has to do with the feeling that he will not be losing his job anytime soon at least? contrary, we interpret this as a huge signal. toher shinzo abe starts refocus his energies and political capital where it should be focus. or, voters are willing to show him and the party the door. 2009, the lasto time this happened, they lost control of the tokyo metropolitan government and it presaged the takeover of the deep pj who held power for four years. all people have been concerned that shinzo abe's support is not as strong as it might seem. it has been str

tokyo governor's first -- tokyo first party gave her a majority as she teams up with the national coalitioner. a speechmmond will use organized by the confederated business injuries to tell business leaders brexit will not be ignored. a change of tone from the government has become apparent since prime minister theresa may's to disastrous election in which her conservative party lost its majority. in hong kong, the first day of 's bond connect program made a muted debut. it is another which access the debt market. initially it only allowed one way -- to the market. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm nejra cehic, this is bloomberg. in the last couple of minutes we had some u.k. manufacturing pmi that fell. anything above 50 is still expansion, but we were expecting 56.3 and it came in at 54.3, this is for manufacturing. if i put you over to buy bloomberg terminal, you can use it. these are the latest u.k. pmi readings. you have manufacturing in yellow and construction in blue. janet henry is still here, we --virajrage

there is an economist here in tokyo.ve put him in the camp of the reflation nests all on board for radical stimulus. >> let's move on to the banker. he is on the honor board committee at bank of tokyo mitsubishi, many years in the banking system. where don't really know he stands on monetary policy or on the question of negative rates, but since he has in and the banking system, maybe he is one that if he comes up again, it should be too costly and a policy we have move away from. >> more from you out of tokyo pretty soon. and the implications for markets next. ed rogers has huge by signals for japanese stocks. banks maytralia's big need to step up their games. they should be live in sydney on that. this is bloomberg. ♪ ♪ betty: good morning, this is daybreak asia. i'm betty liu in new york. yvonne: i'm in hong kong where the boj begins its policy meeting which has week inflation , still a key focus. get to the global economics and policy editor in tokyo for the meeting this week. no change in policy expected that it wil

investors shrugging off that ldp loss in the tokyo elections on -- economice tokyo fundamentals of japandi: thank you so much for that. some breaking news crossing the bloomberg when it comes to australia, house prices, runaway prices when it comes to cities like sydney and no born, may falling 5.9%,vals also seeing that number when it comes to building approvals broadly speaking, down 19.7 percent on year, estimated decline of 14.1%, so there has been talk about more supply when it comes to holmes coming on the market and whether that will ease some home prices we have been seeing. the treasurer seeing hefty price gains and major australian cities, the demand side is quite real and does not look like the supply side is keeping up. we have seen home price moderate somewhat when it comes to sydney and melbourne. higherta up 2.7%, much than the expectation of .4% for may. that has picked up as well. clearly playing into the rba policy decision as they meet tomorrow. let's get you up to date with first word news in hong kong. is experiencing a weekend of confusion and uncertainty as busines

a great many nurses are assigned to tokyo army hospital, our largest hospital in the far east.t bustles with medical expert who is are here to carry out the mission of the hospital as defined by its commanding officer colonel charles ki kirkpatrick. >> while the shooting war has stopped in korea, the war against disease and injury is a constant challenge to doctors, nurses and enlisted personnel with tokyo only hospital. the health of our armed forces, american and other united nations fighting men is of paramount importance. our job at this hospital is to keep these forces in good health. to this end we dedicate all the skill and resources of modern medicine and surgery. >> think of the largest hospital you know and you'll begin to appreciate the size of the army hospital in tokyo. there are hardly enough american nurses to do all the work. and for this reason it is a practice of this hospital, as it is elsewhere in the world, to employ foreign nationals to help us out. the young japanese women who work with us are pleasant and gentle and most efficient. they seem to be born n

kathleen hays in tokyo. king and china, the potential of qr codes in developing markets. that is next. this is bloomberg. ♪ ♪ haidi: qr codes are becoming increasingly popular as a former de-payment in developing markets. in china, five point $5 trillion of electronic transactions were made last year. our bloomberg columnist is here with more. qr codes have been around a while, so why wouldn't consumers prefer newer tech like apple pay? >> there are a couple of reasons. if you are in a developing country, an iphone is quite expensive, so the technology used in an iphone to make payment near field is not that widely available. qr codes can be read on feature phones and lesser smartphones, so that is one big advantage. the flip side our the merchants. if they want to use apple pay, they have to purchase expensive terminals, samsung pay, purchase terminals. with the qr code come all you have to do is printed out and put it up at the register and somebody with a qr code enabled phone can scan it and make a termi

just have to fly to tokyo. ♪ >> how can they do this in the streets of tokyo?lace is packed. >> they've got teeny tiny cars. they can zip through traffic no problem. how can you get go carts on the road. they are zippy. and they also comply with all the local government regulations. so it's all above board. this is just one of those things that if you want a unique way to see one of the world's greatest cities, this has to be one of the most uniquely japanese of them. >> how do you get points though? do you take out pedestrians? like, you know? and if it's two at a time, is it more points? >> this is the reason i point you to the caution they have on their website. do not throw garbage on the streets and do not throw red turtle shells or objects at each other. >> so do they set the course or is there an instructor. >> there's somebody at front and you're following along enjoying the view. there's that famous bridge in tokyo, the rainbow bridge. rainbow road, notoriously hard track. hopefully this one isn't quite so hard. if you had the chance, would you not? >>

pa ralympics unlike he said he will carry on until the tokyo paralympics in three yea rs until the tokyot otherwise another disappointing night for richard whitehead on a night when there was celebration for britain. track and field success for britain but not so much out in the middle. england's cricketers have slumped to a heavy 340—run defeat against south africa in the second test at trent bridge. it means the tourists have levelled the series at one apiece with two to play. tim hague reports. practising to save this game board chased down and almost impossible world record, england's batsmen will need to be at their best but south africa's vest has been vastly superior so far and was again this morning. vernon philander got keith jennings and balance —— and gary ballance, except that town but england would need a guardian angel to get out of this one although chris morris's fall to joe root would get past the guard of anyone. the tourists were too good and you can hide your eyes, go, it is the only english monk who had any success , only english monk who had any success, alastair co

shaping up by trade in korea and tokyo, we have more. more downbeatng when you look at the session in sydney as well as in tokyo here. falling by .4%, the nikkei to 25 losing .25% so far. .1%.s down about the cost be just treading water there. we seeing bonds picking up nicely following what we saw given the dovish comments out of the fed. to congress on wednesday. take a look at the currency space. given the weakness in the dollar, we're seeing gains gaining about a third of 1%. below that 680 level. and we see that rising for a second day. we get the confidence index coming it and we have the aussie dollar holding from there. take a look at commodity space. we see base metals climb. we had been seeing a rally. continuingoil momentum here, new york crude adding 1.5% and up 1.2% there. we see energy stocks faring in sydney. metals and mining stocks. the one bright spot, and that segment up. it's not enough to offset the drag we are seeing in the health care space losing over 1% this morning. we could perhaps see some potential catching u

looking forward to the afternoon business and tokyo.hares gaining ground in the morning session despite the in strengthening. this is bloomberg. ♪ whoooo. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest prices. so if you're anything like me... ...you'll want to check tripadvisor. we now instantly compare prices from over 200 booking sites... ...to find you the lowest price... ...on the hotel you want. go on, try something fresh. tripadvisor. the latest reviews. the lowest prices. >> it's 10:29 p.m. in washington dc. the fed that policy unchanged but confirm the unwinding of the balance sheet will start relatively soon. the start of normalization would be a milestone in recovery program now in its ninth year. fed watchers say that turn relatively soon signals the bank could announce the timing of unwinding and it next meeting scheduled for september 19. white house chief strategist steve bennett is said to backs funding middle-class tax cuts with a new top rate of 44% for those

tokyo's economy is doing pretty well. there are two jobs for every job applicants in tokyo. the economy was a factor. the start is down to power she has built up in the capital over the years as she has been governor, and the other lbp, abe and the his cabinet. voters are expressing their anger at the ballot box. anchor: japanese prime minister shinzo abe may scrap some of his most divisive policies after his party's crushing defeat in the tokyo election. what is likely to be on the chopping block? guest: the most controversial policy he has in his plans is to change the pacifist constitution. that is something that divides the electorate. the question is, will given the state of his public support, the lack of discipline in his party, whether he is really prepared to push ahead with this idea which would take a lot of energy and mike portray him as someone less interested in the economy that he is that -- and might portray him as was someone less interested in the economy then perhaps he should be. ♪ >> there is little doubt the market was extracting a more -- was expecting

joining us from tokyo is isabel reynolds. why but this result such a disaster?ains the weak performance? as you said, it was an appalling performance by prime minister abe and one is the star power that took his governor has been able to guilt over the past year since she took over the position and 11 -- a landslide election had her become tokyo's governor. her first actions was to cut her own salary in half so they know she was serious about cutting wasteful spending. on the other hand, we have seen them shoot themselves in the foot. they had a whole series of scandals and they failed to explain those in any way that would convince the voters and that has made voters very angry. and they show their anger at the ballot boxes on sunday. manus: indeed. we have the guest host for the next 30 minutes. great to see. guest: good morning. manus: i like what analysts said, i do listen. [laughter] here we go, it is in other political upstart. by an upstart party that is smart on social media. haslinda: simulate come from nowhere. manus: it has potentially serious ramific

tokyo's full distance work experiment in our business update. mom,up memories of their who happens to be one of the world's most famous women. reminiscences from princes william and harry of princess diana international newspaper review later on. this is live from paris. ♪ >> thanks for being with us. we start in the afghan capital kabul, were 35 people are reported dead after a suicide bombing this monday. it wasiban has claimed responsible. the attacks targeted a bus carrying workers from the mines and petroleum ministry. the taliban claimed the bus was in fact serve -- full of intelligent services officials. as happened just a matter of hours ago. what's the latest from the attack in kabul? it happened during the morning rush hour when people were just beginning their day. it happened in the western part of kabul in a shia neighborhood that has been attacked before by the islamic state as well as by the taliban. we understand from health and interior ministry sources that at least 39 people are confirmed killed and more than 60 people are wou

let's head to tokyo.he busiest cities in the world, and tokyo's trains and subway are notoriously million a potential one visitors for the 2020 olympics. the city is planning a radical change. , plan totelework day ease the congestion. our editor is here with more. first off, what is the rationale behind this? said, tokyo will see about one million extra visitors , day during the 2020 olympics so the only way to make that happen logistically is to convince a lot of people not to ride on the subway during rush hour to work every morning, so the plan is to try this out. this is the first time. they would do this annually up to the olympics, and the plan is to convince everyone to stay home today and let the visitors filled the subways. have companies, employers, employees responded? are they at home today? >> the signs are mixed based on what i have heard from tokyo. our reported there has been tied up with shinzo abe's parliament reported aut some less than busy commute. others saw no difference than 700r,

japan in the spotlight after shinzo abe's tokyo drubbing.st ever performance for the ruling party in the capital. >> china's latest hong kong connect starts today, new access to its $10 trillion debt market. what is next for the fed? slowing

we have seen the tokyo elections for the tokyo assembly last month, the ldp lost its majority.ther election for air coming up. and then his leadership really is under threat. thank you for bringing us up—to—date with that story. a new bollywood movie billed as a love story is set against the backdrop of prime minister modi's initiative to provide more households with toilets. it's a big issue in india where half a billion people don't have access to a functioning toilet and woman are put at risk of attack song, dance and plenty of laughs but this indian movie also uncovers the to—do subject of open defecation. this indian movie also uncovers the to—do subject of open defecationm is very relevant and people will understand what trying to say. is very relevant and people will understand what trying to saylj personally feel it is probably the toughest scene i ever done. i could not bring myself to squat. i felt humiliated. around 546 million people in india don't have access to a functioning toilet. many women tend to venture out at night, to avoid being seen, which puts them at r

in tokyo.berg survey says stable inflation of 2% is unattainable in japan and the for seeable future. more than 60% of economists we spoke to held that view. almost no one thought to percent would be reachable in the boj's timeframe. they expect inflation to reach the target sometime in the fiscal year of april 2018. headedeel making stocks for the best we can for months after president trump repeated his promises to crack down on dumping by foreign competitors. he said he may impose tariffs or quotas or both. countries including canada had in china have been bracing. tillerson has dampened speculation his week of diplomacy in the gulf -- he went to qatar, kuwait, and saudi arabia, reducing ideas that could be a basis for the solution to the diplomatic crisis. however, he said the two sides refused to speak face-to-face. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. i am sophie kamaruddin with a check on the markets

from tokyo, rupert wingfield—hayes reports.he unmistakable shape of an american b—i bomber, sweeping low over south korea this afternoon. this is president trump's pointed response to north korea's latest missile test. it was accompanied by an equally pointed rant on twitter. "i am very disappointed in china", the president tweeted. "they do nothing for us with north korea, just talk. "we will no longer allow this to continue." china today has been showing off its own military might, in a huge parade overseen by president xijinping. he has condemned north korea's launch, but china is not prepared to bring pyongyang to its knees, even though it probably could. north korea, meanwhile, is making the most of its success. pictures of friday's missile launch are being played over and over. and, once again, kimjong—un is the star of the show. this latest missile test represents a profound challenge to president donald trump. he put a lot of hope in getting china to rein in pyongyang. he now appears to have accepted that is not going t

one forum in tokyo. so mr. mullen talk about this earlier. so i was -- when i was in active duty we had a similar job and similar timing. since then, we have been working on exchanges and also transanalysis. so with him i really experienced that kind of sharing of information. for now, we are coming here as representatives from the united states and also japan. thought that we had really good communication but through this kind of forum i experienced that there was a gap and there's something that we need to address, and then, again, from first forum to fourth forum, we're developing really good communication and also good information sharing, and then i think we're becoming together regarding what needs to be said to have really good communication. for our forum i want to say my personal impressions. first off, of course, south china sea and other various security issues are there, but our topic was about socioeconomics, and so what kind of economic implications are there to security issues, so dr. gree

now there is going to be more to come. -- the metro system in tokyo.n you have narita airport in tokyo. and then the highway systems as well. ministeroint for prime abe, using the shock of the governor election, as a catalyst to drive forward the deregulation and privatization agenda, that is where japan is going to get very interested in court -- interested in foreign and defense -- foreign investors. >> we thought they would be aggressive in maintaining that cap. but they faced challenges of other central banks around the world. that is tapering. >> the bank of japan is decoupling from the rest of the world. significant that big intervention in the bond market. it came on the day before the g20 meeting. and nobody said anything about this. allows for japan to be independent to do its own thing. on the inflation front they are way off this. your is going to do it europe wants. but japan is going to do what japan wants. japan wants to have the weaker currency and more inflation to the system. -- would you grade >> in my opinion it is a nine out of 10.

tokyo's economy is doing pretty well as we have seen recently.k really the economy was a factor. i think there are two factors, one the power built up with -- in the year she has been governor. the other one is abe and his cabinet shooting themselves in the foot. they have had a number of scandals, a number of gaffes, and voters are expressing their anger. >> shinzo abe may scrap some of his most divisive policies after his party's crushing defeat in the tokyo election. what is likely to be on the chopping block? >> the most controversial policy he has in his plans is to change the pacifist constitution and that is something that has really divided the electorate. the question is, whether given the state of his public support, the lack of discipline in his party, whether he is prepared to push ahead with the idea that would take a lot of energy and might portray him as somebody less interested in the economy then he should be. >> ♪ the bank of australia has left benchmark interest rates unchanged at a record low. the decision coming a week after

some big stories broken by our bloomberg news team in tokyo.etting concern, the head of the stock exchange saying it is not good for the stock market. is it time for the bank of japan to say, we don't need to buy etf? governor kuroda does not seem to want to do that. why keep buying etf? >> one of the elements in the boj thinking that -- for them toifficult get the elements that are similar. also the distortion that might be perceivable he in the market is still manageable. that is the idea of the boj. they could tweak the composition of etf down the road, but i think it is difficult for them to decide, completely reduce the amount of the etf in the future. bankeen: european central also wrapping up its two-day meeting, no change expected. people are wondering if mario draghi will tilt hawkish, not signaling he is ready to slow down bond buying, or even more hawkish. what you expect and what does it mean for bank of japan? >> in june, mario draghi already changed the communication. i think this time around, mario draghi will stick to the curren

the case began in tokyo on tuesday. >> in tokyo, mark was released on bail. now he has to face the music. the court wants to know who was responsible for the collapse of the world's biggest corn exchange. -- bitcoin exchange. the arrest of this man attracted a lot of attention. investors and customers lost millions from a subsequent shutdown. bitcoins were invented after the financial crisis of 2009, independent of government and central banks, they were said to be the new currency. it was accepted in stores and in canada, the first coin a gm's were -- first bitcoin atm's work installed. >>y is getting more useful. >> those atm machines did not prove viable. bitcoin could not keep its promise to be a reliable method of trade. private video footage caused doubts before the bankruptcy. afterwards, the firm claimed a software bug allowed hackers to manipulate transactions. an ongoing crime committed over the course of years, a kind of virtual bank robbery. the scandal saw devaluation of a coin and its reputation, it has since recovered but what remains unclear i

let's get more on the data out miller liveh brett out of tokyo. nice to see you.eaway, key signals, from today's data releases? >> the key signal his inflation is way below target, 0.4%, consistent with what governor kuroda and the boj told us last week when they push back their until for reaching 2% 2019. what that means is keeping the pedal to the metal in terms of monetary policy, buying assets, bonds, etf's, and it will continue to draw flak in the market for distorting the market . with inflation this low, there is no choice for the boj but to continue its policy. we will see the cap continue to open up with the u.s. and europe. the u.s. looking to normalize, the ecb talking about tapering, so the boj has stuck in the inflation where it is right now. david: it certainly is. definition for prices being sticky. household spending, a big eat. we saw an improvement actually from the previous year, first time since the start of 2015. what are the implications of that one? >> that is a good number. it is the first time in a year that it has risen. retailouple that

it has just dissolved and been washed out into the ocean exactly that's the big question i imagine tokyo electric and even japanese government officials and international atomic energy agency officials are now going to try to do ballpark figures based on what the. these images show as to how much is still there and i'm sure there's a lot that they can account for so where is it is it still up in the pressure vessel probably not is it out into the environment at least partially we know it is right and it's scattered all over from the initial explosion scattered all over the landmass of japan or in that area anyway but in the ocean what's what's the status of radiation in the oceans right now as a consequence of fukushima and what's the status on the u.s. west coast or canadian mexican west coast with regard to focus. well the worst releases were in the first days weeks and months but they have had bad days since i remember summer of two thousand and thirteen they lost an entire one of these giant storage tanks some hundreds of tons of highly contaminated water simply washed out into the o

emily: we talked about expanding into tokyo -- why is softbank interested?bank has a lot of money. they raised the $93 billion fund. it has done that with saudi arabia. that is a lot of money to put to work. i think that is why they have taken a large stake with wework which is why it is expanding in tokyo. they expect up to 20 new office spaces in tokyo alone. emily: olivia zaleski, thank you so much. david kirkpatrick of techonomy, great to have you. that does it for this edition of "bloomberg technology." we are live streaming on twitter. that is all for now. this is bloomberg. ♪ whoooo. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest prices. so if you're anything like me... ...you'll want to check tripadvisor. we now instantly compare prices from over 200 booking sites... ...to find you the lowest price... ...on the hotel you want. go on, try something fresh. tripadvisor. the latest reviews. the lowest prices. ♪ >> from our studios in new york rose."his is "charlie william: good evening. charli

to beof policy questions looked at end up with next week in tokyo.ornk you that, kathleen hays. have a safe flight. the national financial were conference getting underway in beijing. what is the goal? we discussed that with bank of america merrill lynch is helen child. this is bloomberg. ♪ rishaad: you are back with bloomberg markets. i am rishaad salamat in hong kong. haidi: a quick check of the latest business flash headlines. giant has soldt its stake in sydney's only casino. says it has been selling off shares since july and has ceased to hold any interest in star entertainment. rishaad: pimco reporting its biggest quarterly increase in assets since bill gross left. second biggest u.s. fixed income manager jumping to $1.61 trillion, assets at $2 trillion in the first quarter before concerns about rising interest rates led to some withdrawals. hong kong's reputation as say financial leader damage by rising market misconduct. to insider trading and market manipulation have doubled since 2011. the soc says the recent sudden plunge in at least a doz

weakness across the board for tokyo shares.% givenorning, the weakest the pressure on oil prices. brent just below $48. the nikkei two to five on course for a second day of declines, trading at its lowest level in a month. steelmakers are one of the bright spots in tokyo, mission steel adding 7%. this is japan's biggest dealmaker, nippon steel, expected to post a 70% jump in profit for the last quarter. we did have the ceo of nippon steel cautioning there might be a battle for the japanese industry should u.s. steel tariffs come to pass. sydney,elsewhere in miners and their, an output after a 49% yearly jump in first-half production of mineral sands. newcrest gaining 1.2% this morning after its fourth-quarter output beat estimates, but did report a drop in gold production of about 8% as one of its mines is still suffering damage from an earthquake there. .2%share price falling since that earthquake. shares falling in sydney given the weakness in oil prices. lng producers under pressure as they wait for confirmation from the gov

and they incorporated the tokyo skyline into that. that's not a wall painted, you guys. that's part of the display. >> that's so smart. >> they're swimming around saying, see, we can do it. >> totally. you know what else is cool? that little spider. on top of a watch. >> no way. >> yeah nap is a tiny little spid spider. it's cool we get to see this video and check it out up close. >> did you see that? that is what you call a -- the woman who posted this on her lady naturalist channel says it landed on her husband's arm. since she loves spiders, she broke out her note 5 and it got this video. this is great advertisement for the note 5. but this is really cool video. look how cute it is. i mean, oli, i know how you have a thing about spiders but isn't this one cute? >> i like its lines. cool markings. >>> that guy's running to catch his flight sort of. >> he risks his neck ducking under that front wheel. >> see how he saves the runaway plane next. >>> these two are testing lipstick to see just how strong it is. >> they make out with the dog. that's what they're doing. >> t

we are keeping an ion softbank in tokyo. they have rejected a takeover offer.g off of their earnings season this week. ryohin company among them. trading getsas underway in australia, japan, and korea moments from now. this is bloomberg. ♪ >> ladies in german, please welcome members of the band and tony award-winning performer brian stokes mitchell. [applause] >> ♪ o beautiful for spacious skies .or amber waves of grain fo

he also pledged support for shinzo abe after a bruising defeat in tokyo elections.iond put him in for rewriting japan's 70-year-old constitution. they are close to a free trade thanthat account for more a quarter of the world's economic output. a basic deal is in place. an announcement should come on thursday. japan once to move levies on auto exports. suv's and truck's continue to shore up the u.s. auto market. seems to be little chance of catching last year's record. be one of the best years in history. most automakers saw better sales than projected last month. investors like the news, pushing gm and ford shares higher. with production held back by a temporary shortage of batteries. 22,000 cars and suvs, impaired to 25,000 in the first quarter. tesla says the new model three will go into production on friday. global news 24 hours a day powered by more than 27,000 journalists and analysts. this is bloomberg. haidi: thanks so much for that. let's get you a quick update on the markets. we get the trading day started in asia and new zealand. kiwi dollar at 72.92. eek

manus: thank you very much, kathleen hays in tokyo.et's get to our guest, chief economist at japan's macro advisers. thank you so much for joining us this morning. target,in the inflation probably until march 2019. what does that do to the credibility? time he would delay and extend and pretend. what do you make of this extension? i guess he must be regretting that he made the promise of a 2% inflation target in two years time. having said that, the last four years, do believe the japanese economy is growing strong. there is a labor shortage everywhere. i have a sympathy to the governor on this point. anna: you point to the upside, but let's focus on the thing he has promised to achieve and has struggled to come and that is around inflation. what is the risk with the current strategy that after he starts to heaven adverse impact on the government bond market, that he is forced to change his policy? >> right. there are a number of areas. it's pretty bad timing. i think it would be best if the government delayed it again. another more im

kristie lu stout is joining us from tokyo this afternoon. kristie, what do we know about how sophisticated this missile was? >> yeah, ana, japan, its neighbors and the world trying to assess this new reality after this second launching of intercontinental blis intercontinental ballistic missile. it also represents progress in north korea's development. it was a rare nighttime launch, it also traveled further and higher than the previous icbm launch the first one in july earlier this year. and it was also launched from a different staging station. and that means that north korean experts and watchers are saying pyongyang is trying to say to the world it can launch an icbm any time from anywhere. inside north korea we've been looking at kcna, state-run media footage of celebrations happening inside the country, as well as the footage of kim jong-un, the leader of north korea, surrounded by display technology surveying personally the second icbm launch. pyongyang says this is a stern warning at the united states and says that the entire mainlan

this one tokyo find it. this is looking. for a new constituent assembly. working with a. stronghold in the mountains of. what used to be the terrorists in the caves. cave we make the shocking discovery. chris.

in tokyo, watch for mazda motor shares.e locally made are going to be recalled for airbag defect made by takata. and of course come election for reactions in sony shares thanks pidey's adventures in the box office. this is bloomberg. ♪ whoooo. you're searching for something. like the perfect deal... ...on the perfect hotel. so wouldn't it be perfect if there was a single site where you could find the right hotel for you at the best price? there is. because tripadvisor now compares prices from over 200 booking sites... ...to save you up to 30%... ...on the hotel you want. trust this bird's words. tripadvisor. the latest reviews. the lowest prices. ♪ >> asia-pacific markets signal small gains as strong u.s. jobs data reinforces optimism. >> payroll numbers bolster confidence, wages flat ahead of janet yellen's testimony this week. >> trump hails the g-20 as a major success, but increasingly isolated on trade and climate change. >> the white house appearing to which country president xi jinping is leader of. ofthis is the seco

from tokyo, here's rupert wingfield—hayes.e of an american b—1 bomber, sweeping low over south korea. this is president trump's pointed response to north korea's latest missile test. it was accompanied by an equally pointed rant on twitter. "i am very disappointed in china", the president tweeted. "they do nothing for us with north korea, just talk. "we will no longer allow this to continue." china today has been showing off its own military might, in a huge parade overseen by president xijinping. he has condemned north korea's launch, but china is not prepared to bring pyongyang to its knees, even though it probably could. north korea, meanwhile, is making the most of its success. pictures of friday's missile launch are being played over and over. and, once again, kimjong—un is the star of the show. this latest missile test represents a profound challenge to president donald trump. he put a lot of hope in getting china to rein in pyongyang. he now appears to have accepted that is not going to happen. but the us president has

that was a strong reaction from tokyo yesterday at this time when this was all unfolding. what concerns there are for japanese military to have its own defenses against perhaps an aerial missile from north korea? >> well, michael the sheer proximity of japan to north korea it leaves japan in a vulnerable situation. i think that's why there was strong language from the japanese government fairly quickly after this latest missile launch. the prime minister, abe is making his way to brussels to meet with eu and later to ham berg to meet with the leaders of the g 20 to try and see if we can bring together the international community to try and reach consensus for a stronger response from these moves from north korea. especially, because eu's sanctions and trading bar goes behind many nations failed to contain the threats of the heightening risks in the area. i think at the same time, many of the options that japan has, including michael, the possibility of increasing its ability to deter a missile, should something approach the mainland here in japan, are fairly limited. becau

let's bring in cnn andrew stephen in hong kong and the journalist kari kary in tokyo. we saw throughout this missile test kim jong un proudly overseeing it all. implications this could be the start of more to come from pyongyang >> yeah, it's more like the middle because we have seen significant wrapping up of the missile testing and the nuclear testing under kim jong un's regime. and kim was present at the launch yesterday hannah. in fact the kcna news report be the news agency of north korea, saying he feasted his eyes upon the newly built missile and said that the -- the fight against the u.s. was coming to a final phase. and kim also is very, very clear in what happens next. he described that missile launch as a gift to the united states on their independence day. and he urged his scientisting to send many more gifts big and small to the yankees in his own words over the period ahead. so making it very clear north korea intends to continue the missile program. don't forget of course there is a nuclear program as well. the next key issue now that there is an icbm --

cause ruhi homes locally ok now is resisting at that from what you've just described it seems like tokyo has a completely different agenda why is there such a massive political divide between the government in tokyo and okinawa that's a good question and the problem is that the government in tokyo goes along with pretty much anything and i say says and they will continue to force okinawa to bear this burden and another problem is that no one annoy other prefecture in japan wants to shoulder it so you know being a place with very little political clout in the small population continues to get the worst end of the deal and this is part of the building of the new base not only poses dangers and and inconveniences for that for the local people but it's not destroying a very very precious environment of coral and good to. see biology how likely do you think it is the u.s. military won't get it wants won't get what it wants here i mean this case is their first attempt to legally block this move in the moving of the base but do you think it will be successful. it's not the first attempt and pre

nintendo off by over 3% in tokyo.t that sony shares are of greater value than nintendo, but also downside for sony today. samsung not moving too much, but reports that it will spend 30 trillion won to expand its newly open semiconductor plant. it is also considering expanding a chip plant in china. a lot of focus on this tech stocks today. rishaad: thank you very much indeed. has been xi jinping warning of an "negative turn in relations with the united states." this is according to cctv. it comes ahead of this g-20 get together and hamburg. president trump meeting vladimir putin and xi jinping. what are these negative factors? >> xi jinping was referring to tionsaiwan ac washington took last week, approving a $1.3 billion arms deal to taiwan. that was the first time since trump took office in january. the 1.3 billion dollars for smaller compared to the last one obama approved, $1.8 billion. what theot include government has been seeking come of it because it is a politically sensitive year for xi jinping -- rishaad: w

. >> prime minister shinzo abe's ruling party was well beaten in a local election in tokyo.st heard comments from the prime minister, saying he will try to move forward on this as ldp is projected to win the fewest seats in the capital. >> tokyo's economy is doing pretty well as we have seen recently. there are two jobs for every job applicant so i do not think really the economy was a factor. i think it is down to two factors, one is building the star power in the year that she has been governor. the other one is abe and his cabinet shooting themselves in the foot. they have had a number of ffes,als, a number of ga and voters are expressing their anger. >> shinzo abe may scrap some of his most divisive policies after his party's crushing defeat in the tokyo election. what is likely to be on the chopping block for shinzo abe? >> the most controversial policy he has in his plans is to change the pacifist constitution and that is something that really divides the electorate. the question is whether given the state of his public support, the question is, the lack of discipline

and from tokyo and andrew stevens is in hong kong. but paula, first to you. take us through the vital statistics here on what we know. >> well, max, north korea has claimed it has a successful test of an icbm, an international continental ballistic missile. there was an announcement a half hour ago. th triumphantly by a news anchor say that the order for this test came directly from the north korean leader kim jong un, and he was at the test site as well when it was tested. we did see on north korean television a photo of the north korean leader signing something. we assumed that was the test order. that's something we have seen north korea do in the past as welsh and then showing an image of his signature. it also says that it was conducted at 9:00 a.m. pyongyang time. so that's about four and a half hours ago. now the missile traveled for 39 minutes for just over 930 kilometers. the altitude just over 2,800 kilometers. now as far as north korea is concerned, it has successfully test fired an icbm. experts now going through those numbers, trying to figure ou