kuroda. please headwinds are building up -- these headwinds are building up. does kuroda need to send a message to the fx traders? there is no doubt in my mind that that is a very uncomfortable level for the japanese economy. japan is still a strong export economy. ¥115 to the dollar since them a lot better -- suits them a lot better. the bank of japan has been extremely successful in keeping the yen relatively weak for several years. a lot of credit to kuroda. i am very pleased to see him reappointed, however, there is two things that are going on right now. it is the u.s. 20 deficits -- twin deficits. those deficits are really the reason for the structural weakness in the dollar right now. furthermore, in japan you have tight fiscal policy. this has been the mismatch in japanese policy. japan hase bank of done a really good job, but i think the administration in japan has been excessively tight and its fiscal policy -- in its fiscal policy. that is why they are finding it so hard to get ri

kuroda down the line. theoretically, this divergence should be negative for the yen, but the yen is chiefng and suga, the secretary on tape voicing concerns about the rate of change in terms of the yen trade. how big a feature will this be of the next few months for the japanese authorities? i would say the japanese authorities will be on guard. they are on guard today and will be the next few weeks. if we look at the impact of monetary policy in the bank of japan, it is mixed in terms of inflation that it has weakened the yen. that has been good for exporters and has been one of the hopes for reflation, eventually it .ould push up import prices now we are getting the opposite of what the government wants in terms of the yen. the cabinet secretary suga has voiced concerns. earlier in the morning, the finance minister's tone has changed a little. he is not quite as happy as he a few monthsen back with the yen. there is concern among the government. export competitiveness gets hurt if the yen strengthens too

japanese markets are relieved as the government reappoints bank of japan governor haruhiko kuroda for another term. the nikkei is up. it has been a good week for markets across asia. not so good for the all 0rds. the dow is up a bit, even if the dollar is having a bit, even if the dollar is having a troubled time. when it comes to our eating habits, it turns out that many people are choosing healthier options, or at least cutting back where they can. but for a company like coca—cola, does a shrinking waste—line mean a shrinking bottom line? just to give you an idea, one can of coke has about seven teaspoons of sugar in it and it accounts for 139 calories. that's about the same as eating one and a half apples or nearly nine cucumbers. americans are definitely cutting back either way. in 2016, soda sales hit a 31—year low in the united states. coke will be reporting earnings in a few hours‘ time for joining £5- family. and they are very distinctive from coke and coca—cola. yes, and if you look at some of the advertising campaign that coca—cola have been undertaking of late,

up first, a governor kuroda come back. reports that the governor will be given a second term as the head of the central bank. is stimulus set to? we discuss that next. this is bloomberg. ♪ watchingou are "bloomberg markets: middle east." i am yousef gamal el-din in dubai. , vines and line with the three-month average -- volumes in line with the three-month average. selling in israel. stocks the big six retreating as tensions with iran are playing into it. we saw a rebound in qatar. airbus and emirates have signed 80's.tract for 20 a3 it comes after airbus admitted it might have to terminate the project unless new orders come along. it's most important plane is still suffering teething problems. to company has suspended due engine supplied by pratt & whitney. igo has reported three in-flight shutdowns. dubai investments selling shares in its cooling unit in the fourth quarter and aims to start investment trust as it seeks to boost profit. the ceo spoke to bloomberg as his company reported an 18% decline in full your profi

the boj governor kuroda is to begin a second term. -- kuroda and nikkei says prime minister abe will point the governor for another five years. that indicates the prime minister wants to continue with the boj's unprecedented stimulus program. asx is looking at allegations two revealo materials in 2015 and 2016. theredit suisse says allegations it failed to reveal materials in 2015 and 2016 are without merit. officials in new york cap get to make a decision about a lawsuit being filed. the anc leader told supporters the party must resolve its problems, including accusations of corruption , before powerzuma is transferred. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am tom mackenzie. this is bloomberg. haidi: we are counting down to the open in seoul. asian markets were whacked l t week. we started off the week talking about support of buying from china, that was the hardest hit by the end of the week. what are we expecting? should discontinue -- this c ontinue? testvestors should tepidly the waters after the worst week f

the return of haruhiko kuroda suggesting no change soon. yen threatening to throw inflation off course. we just saw lines from the minister speaking in tokyo as well, he says that he hopes the deputy governors and kuroda do their best and he also says japan will soon be out of the deflationary situation. we are also hearing from the finance minister speaking in tokyo, asking the boj to keep working with the government to beat deflation. the same theme. the next guest is a former board member of the bank of japan, a dissenter to the easing program. joining us, takahide kiuchi. thank you for joining us. all has happened in the last 48 hours, does this trio and a new leadership, does this represent the status quo in your eyes or could it change the course of the boj policy? i think that the market expects that there will not be a big change, due to the return of haruhiko kuroda. i think the renomination of kuroda is in line with market expectation and that could -- the uncertainty for the future. news fort is positive the market. yvonne: there

kuroda nominated, what is the next step? is, theext step nominations go to the house to be approved. there is a massive majority in both houses. there is no question they will be approved. kuroda will continue on and the two new deputy governors will begin in the middle of march on their new jobs. >> speaking of those new deputy governors, what do they bring to the table? i just spoke to a former boj board member and he said it is business as usual. the composition of the board is the same as it was before this change. he has been inside the boj and he is replacing another, the current deputy governor. friends, they are on the same page, on what they think of monetary policy. the more things change, the more they stay the same, for the boj. especially with kuroda staying in the job. >> looking at the yen, it is at its strongest level near the dollar. it is now 106.12. what do you make of this? kuroda has been the favorite to continue on the board for a long time. his name was leaked on friday that he was being reappointed. s

kuroda. that is important. not much risk premium being built into the market for anybody outside mr. kuroda, but on a day that should be positive for the stock market, it will not do any harm or it may add positive stimulus. can recall this correction in japanese stocks done with now? the worst is over? the safest assumption i think has got to be that volatility is going to be with us for a while now. in atainly think japan is better place, as you were saying before i came on in terms of valuation and given their earnings reports. it does seem cheap relative to ther places, but in view of leadership role currently being played by u.s. 10 year bonds and the stock market itself, it remains a source of risk to all markets including the japanese for a little while at the moment. whatave just got to see happens. ultimately, i think japanese markets have come back with neutral prices if you assume u.s. 10 year bonds settled down around these levels anyway. yes, i think this will look to be an opportunity. mention abo

, oasis of calm -- should i plan trust in kuroda -- should i put my trust in kuroda? >> consistently he has been saying that they will adhere to their program. consistently the market has been saying that i don't really believe that. last week i think was a very interesting week for the japanese market. the bank of japan did put its money where its mouth is. if stepped up the purchases of bonds. it really did try to indicate that they were serious about keeping the guild on the 10 year year close toe 10 zero. the value of the yen is still pretty strong compared to the dollar. the central bank is still hugely involved in qe. anna: let's get your thoughts on boolean.ersus it did not really perform like a haven, not compared to gold, at least. where do you see the most likely -- it is -- is it the old favorites? or is it the swiss franc? jane: i think anyway you captured a lot of it by saying old favorites. when we come to say what defines a safe haven, the credibility and the fact that it is an established safe haven go a long way in establishing why it is a safe haven.

kuroda on the top. repricing,ing this playing catch-up with the back-to-back gains of the united states. you cannot say the shock run is over but it's still an open question. he's a nobel laureate, i pay attention to him. one man says this market is too cheap and you want to get in there. spain is going to the bill market. that's going to play into the markets. day, would you? anna: i leave it to you. is will we see on global equity markets. we saw strong two days of gains in the united states. the biggest two-day gain in 18 months. morgan stanley gaining -- joining insane by. the japanese market has been a laggards today. the we might have thought there has been some catch-up of the strength in the win -- and the yen seems to be taking some edge off. we have the dollar on the move against the japanese currency. a blankbe talked about slate in choosing a new boj governor. how of reporting about governor kuroda is going to be tapped for a second term. doing the market something to think about. seeing if

hasn't been kuroda the most reflationary choice, but governor kuroda has tamed a little. he is not looking to inflate japan at any cost anymore. in that sense, he is correct in saying we are appointing a conservative choice. yvonne: can the boj change the inflation target from a short-term one to a softer, long-term target? think the bank of japan will be afraid of how the market would perceive that. i don't think the boj with want that, i think the current situation is fine, inflation is gradually approaching and the economy is booming, so i think the bank of japan will do anything to strong to rattle the situation. thank you so much. on japan and reaction on inflation numbers, and you can get a roundup of that story and many more you need to know in today's edition of daybreak. available on mobile on the bloomberg at and customize your settings so you only get news on the industries that you care about. this is bloomberg. ♪ yvonne: this is daybreak asia. betty: a quick check of the business flash headlines. reports say fly carriers carrying 24% stake, and a fourth opt

we have slightly comforting words from governor kuroda. interesting that the treasury market should be doing what it is doing. we see these haven bids for yen and treasuries. you'll come down on the 10 year treasury down to 2.67% or so. irony given a lot of this selling was attributed to the rise we have seen in treasury yields at the back end of january. wereis where some of them in monday's market. dell by 1.6 percent, down worse than that in the asian session. we come back just a little bit. we picked out just three here. we talked about bitcoin. of whethersessment generally the global growth story, the earnings story, is enough. manus: there is a battle royale. of 1989, 1999. this is a moderate correction and cash will not be put to work. what is all of this to the fed? will we hear more from the central bankers? the market managed to get itself all the way up the hill with the federal reserve. this is what the traders have done. december 2019, slightly inside. basically, reducing the risk of an aggressive federal reserve. looking at t

so i would be very surprised if it's not kuroda-san who is reappointed. haidi: and these remarks we are today, from kuroda-san really speaking to the script when it comes to, you know, this determination towards 2% target. is it strange to you that we have got fourth-quarter gdp coming up this week am expecting forlongest run of growth the japanese economy since the mid-1990's. it is a pretty buoyant picture when you take a look at the economy, a boy and picture when it comes to -- buoyant picture when a come to the markets as well. does inflation matter? mikio: it absolutely matters. the inflation target, once you have defined it as 2% overshoot, it's extremely important to meet at, so even though japan is doing well and, maybe in some sense, the economy or say does easing, it'sher the bank of japan that needs to ease because it has to build its credibility that when it says something, it means it and it does it. the reason we need to easing, ds because when the next recession hits or the next internal shop his, when you don't have the credibility, the r

awaiting comments from governor kuroda as well. the yen has been trading at 15 months highs largely against weakness in the dollar. watching that story and be open in hong kong, this is how we are setting up in the premarket. it is a shortened trading day, closing after lunchtime. this is bloomberg. ♪ haidi: it is 9:29 a.m. in hong kong, counting down to the last half day of trading before markets go on holiday for the chinese new year. chinese market on the mainland already closed for the next week. we also have south korea and taiwan markets out of action. in terms of liquidity and trading action, it is a tepid day. getting some lines in the japanese finance minister, responding to a question in parliament about the level of the yen. the yen has been trading at 15 month highs, strongest since november 2016, against the dollar. saying there is no plan to intervene in the forex market at this point. the current level of the yen is not too strong or two week and saying the gains are not abrupt enough to require intervention. let's

but the easy money set to continue in japan as governor kuroda gets another term. we begin with a big issue the , return of inflation. >> i wouldn't read too much into one print but there is clear acceleration in inflation going on. >> stronger than we expected. we felt for a while that the pot of corinth is going to move to a -- core inflation is going to move to a higher trajectory in the next couple of months. >> if think there is a chance of inflation in the economy any see strong growth numbers coming out, that is going to bring volatility back to a more normal environment. >> the 10 year near 3% makes sense. -, a lotce is in four better than six months ago. >> when we get a big settle -- selloff in equities, it will be because of a selloff in bonds. we have not yet seen it, but the idea that bonds will be a safe haven, i don't really get. the likely selloff in equities will come because bonds have to reprice because we have inflation. jonathan: joining me around the table in new york is jeffrey rosenberg, chief income strategist at blackrock, kathleen is from

willnor corroded -- kuroda be steady, study, study. yvonne: there are questions whether he will be nominated a second term. how big of a stabilization of fact does kuroda think a second term has? a lot of this has been priced in already. jesper: it is interesting. prime minister abe is very focused on creating this bastion of the stability in japan where policy is very consistent. volatility high contrast to what is going on in the united states. remember, the people's republic of china is in likelihood going to appoint a new central bank chief sometime in march. asan wants to stand out stability for markets. the question is whether stability is the same as boring, while the rest of the world is in transparent and personnel changes that make it more exciting. but japan's of stability should attract a premium. kathleen: also in mid-march, deputyo -- the two governors have their positions expire for the bank of japan. saying thiso are decision is just about made and it will be a group a decision, reappoint governor kuroda, and announce t

don't forget, we have the expected appointment of governor kuroda coming up, which is expected to serve as a double down, and no sign it will change materially anytime soon. >> shinzo abe nominated governor kuroda to beat the boj for another five-year term. abe also appointed to deputy covenanters. >> we should seek monetary stimulus continue aggressively for at least the next few months. inhave another meeting march. nobody expects any change. ofre will be a great deal interest in april with the first meeting with the new leadership in place with the two deputies alongside governor kuroda. perhaps moving into this new term will give him a chance to rethink, recalibrate, and we will be watching with a lot of interest, especially the april meeting. the cleveland fed president is said to be among the contenders for vice chair. .ou have a fresh fed chair would it be best to surround him with established figures to be able to guide him through the first year? >> i think loretto is an excellent person and would be a choice. is an excellent person and would be a good choice. federalbeen in th

reports from japan say boj governor kuroda is to be given a second term. kyoto and nikkei say prime minister abe will promote him for another five years when his term ends april 8. that would indicate the prime minister was to continue with the boj's unprecedented stimulus program which has weakened the yen, boosted exporters and corporate earnings. some executives are accused of making misleading safe -- misleading statements according to a legal from the rest. iran are seen edging towards outright confrontation amid the most serious confrontation between the two since the syrian civil war began seven years ago. and theli f-16 crashed military said it hit 12 targets in syria, including four said to belong to iran. israel has said it will not allow iran to take control in syria. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ramy: thank you very much. now let's get the outlook for wall street after friday's close brought a surprise positive end to the worst week in two years. we

kuroda. does your view on the dollar-yen trade change? like on: so, it looks several major medias, in japan, kuroda has a very good chance of becoming reappointed. our view on the dollar-yen is th at -- the sense that it grow to stays in place, he would not necessarily change the status quo. ycc in place.the but they should not be so easy on monetary policy because inflation is rising. economic growth is the highest in almost a decade. at some point, they should be reversing the extreme accommodative monetary policy. there could be a downside risk, but it could hang around 108 to 110, but when they move towards a policy issue, we will be looking at the 105 level. yousef: what about some of the other majors? are you favoring the cable trade with the boe and the possibility of higher rates there? no, i think the latest bank of england meeting, it is giving investor something to look forward to over the coming months. they could be hiking as soon as may. that is likely to keep the pound on a british tone. expect the pound to be lifted by our

kuroda is seen as mr. reliable. sophie: yes, corroded reiterated persistent and powerful easing needs to remain target.hat 2% inflation it looks like asset managers a run money. i want to highlight this charge. as it managers have the biggest bet on the yen since before kuroda was named the boj chief. the yen's recent rallies, that is seeing leverage scaling back further from really sharp positions and they could have kuroda again coming out as mr. reliable today. thank you for that. chances gears somewhat, are you have to look to the east -- you always have to look to the east -- mumbai is number one when it comes to foreign salaries. $200,000 an average of . you have to live in mumbai. you have to live with the smog, the traffic. you need to be well compensated. it's not surprising. david, take a look at how ex-pats are compensated in mumbai. david: yes, i guess if you could put a price on your lungs. tos a similar conversation what we had in beijing. case youl average, in were wondering is $100,000. also,anghai,

japan's government has today nominated haruhiko kuroda for a second term as the country's central bank governor. the decision is being seen as an indication that the country is in no rush to dial back its massive stimulus programme. let's go to our asia business hub where sarah toms is following the story. tell us more. how is this going down? it's been a good day for japanese markets, investors breathing a sigh of relief. the markets up just 1%, the yen is the strongest in 15 months up against the us dollar, showing investors wa nt the us dollar, showing investors want continuity over change. kuroda has been key to the success of the japanese prime minister, needs approval from both of the japanese prime minister, needs approvalfrom both houses, but there is a comfortable majority silver should not be a problem but in his new term there are a couple of problems he will to deal with, and although japan is of problems he will to deal with, and althouthapan is out of the dangerous cycle of falling prices, inflation is not yet at the target 296 in inflation is not yet at the target 2% in

it is governor kuroda's job to turn down really. they would want a big shift in boj policy at this stage in the economic cycle. he wants stability. they clearly haven't finished the job yet. i think it would be a big surprise really if abe didn't reappoint governor kuroda. there is a feeling among investors that that will be the case. haidi: always a pleasure. our chief economics correspondent in hong kong. our next guest is assuming a governor kuroda reappointment and things the boj is too optimistic on the inflation outlook. economistsenior japan at capital economics with us. isng through the gdp print, this as good as it gets when it comes to the momentum behind the growth numbers? the activity data suggests, survey data suggests activity accelerated this year. we think last year is as good as it gets because the economy is now operating above sustainable , so and growth has slowed we think the last quarter's figures is a sign of things to come. we have been talking ,bout the strength in the yen really pricing in a stronger yen b

beenofficial, kuroda has nominated by shinzo abe to lead the bank of japan for another five years. this will provide a stability for the world's biggest economy and means aggressive monetary stimulus will continue for now. what does more of the same mean for the boj, for the yen? joinging us now, henry, give us the details here. henry: well, what it means in the nearterm is we can expect the boj to stay the course. it's been on cruise control for more than a year now. governor kuroda has said repeatedly, every opportunity, that they will charge forward with what they have been doing. it was not that long ago, a few weeks ago, that people were speculating about the first step towards policy normalization. the yen now has gained more than 6% since the start of the year. the conversation has actually turned to, is the boj going to be forced to do something about it? it is a quick reversal there, but for now, we can expect them to keep going with what they have been doing. mark: is today's news evidence that the government, henry, is becoming uncomfortable with the yen's strength, the

year highs, and more cracks appear in credits, but the easy money set to continue in japan as governor kuroda gets another term. we begin with the return of inflation. inflation. >> i wouldn't read too much into one print but there is clear i would say the slack in the economy is quickly disappearing if there's any there, and the market has not price that in yet. what we are seeing now is an adjustment, but if the data keeps coming through, there are going to be more and more adjustments for the market to reckon with. nick: when you think of inflation, the big you are missing though is the international by mentioned, and in theot just inflation u.s. going up, take a look at europe. -- 2.53.52 poor percent 24% -- and if that is not inflation, i don't know what is. jonathan: it raises the question whether you do get a treasury or if this becomes a global bond market downturn. is it the lateral or the former? >> particularly the last couple of years, the narrative has been on mobile flows on interest rates, and global qe. it is a call determent relationship where you have all of the factors. we

i'm surprised by how governor kuroda is to the bank of japan. the next person who takes over for mario and draghi has big shoes to fill. so you're hoping it is a german text the top spot? >> i think that may be the case. it is a selloff environment for european bond yields that have been anchored by the ecb program, by lower yields. there is a different cast of characters and we are trying to make expectations based on what they are telling us. set andwhole different it could be a whole different ecb next year. do you react to that, should you respond to that? >> not immediately but i think there may be a shift in focus. much like it has been a pro usa or pro-america focused -- maybe there is a pro-german focus within the ecb or within the european union. that could be to the detriment of some other countries. imagine the damage done if you have an aggressive repricing of sovereign yields and credit? let's say you have a more conservative central banker in the hot seat -- i would they want to do that anyway? point --ing up a good given where eur

. >>> the bank of japan governor haruhiko kuroda stuck to his easing script in a speech in japan. it's his first appearance since his official nomination to continue in the role government officials have been supportive of another term for kuroda saying continuation of policy is key to market stability. >>> attention is turning to the impact of rising rates steve liesman looks at what is happening after past rate hikes. >> the stock selloff launched the great rate debate with the question of what happens to stocks when interest rates go up what's happened in the past? we looked at six occurrences the first one back in '93/'94 was the only negative period for stocks when interest rates rose sharply. '44% back in '98 and 2000. 11% in '03 and '04 41%. 43% this was mild compared to the previous one, though it is a sharp spike in interest rates. what happens six months later to stocks after yields rize in t s ten-year this one was positive. the other ones were negative 8.4% here with a question mark of what happens next here. all of this happens in the context of declining ten-year yie

i'm surprised by how governor kuroda is to the bank of japan. the next person that takes over from ecb president mario draghi will have some big shoes to fill. when you start thinking about the ecb post-draghi? lisa: i told you i am short btp's. jonathan: so you're hoping it is a german who takes the top spot? lisa: i think that may be the case. it is a selloff environment for european bond yields that have been anchored by the ecb program, by low rates, etc. it is a totally different set of members as well. it is a different cast of characters, so we are looking forward and we are trying to make expectations based on what they are telling us. it is a whole different fed this year and it could be a whole different ecb next year. jonathan: kevin, let's think about it. you are at the bloomberg terminal one morning and the headline says he is the next president. do you react to that, should you respond to that? kevin: not immediately but i think there may be a shift in focus. much like it has been a pro-usa or pro-america focus since donald trump w

simon: i think governor kuroda's confirmation for another term would be a helpful intervention. i think one of the things that you need to look at is the degree to which this is just the flip side to the u.s. dollar weakness story. and the degree to which the boj is not fully in control of these dynamics and will want to potentially top-down the yen -- talk down the yen. quantitive easing is running at about ¥42 trillion at the moment. anna: up next we will talk about pricing groups profits -- about tyssenkrupp. ♪ back. welcome live shot of singapore there. you got stocks in singapore managing to rally this morning, despite the fact that you have got yen heading the highest hitting the2015 -- highest level since 2015. danone will sell about ¥195 billion worth of shares in yak ult. anna: let's get a market check. >> the key economic data from asia to watch is the u.s. inflation report. we see that markets in asia are mixed. investors are struggling to work out whether the rout has run its course or is causing -- pausing for a bit of breath. gdp rose in the fourth quarter, but

year highs, and more cracks appear in credits, but the easy money set to continue in japan as governor kuroda gets another term. we begin with the return of

it posted a challenge to kuroda's reflation efforts. from taiwan, we are waiting on the fourth quarter balance. the index is looking to a second weekly event thanks to the jump we saw on wednesday. in singapore, we are awaiting numbers. recovering from the losses we saw on thursday and we are watching reaction to the weaker profit update in the fourth quarter. stocks are losing some ground. with have an earnings update. drop.darby posted a that's continuing in australia. sidney shares are rising for a third straight day. woodworth is falling despite showing stronger profit. last look at the yen, which is 107 handle.d the it gives pressure on the yen as the currency strength pushes the inflation goal further away. the dollar-yen pressure could remain intact and it could be at the 105 handle. rishaad: look at the yen. anyway, let's look at special counsel robert mueller as he ups the ante in the russian probe. let's get the first word news with all allen. paul: former trump campaign chairman and a one-time associate have been indicted a s

obviously, keyed to governor kuroda's policies and carrying them out. and being able to communicate these policies to lawmakers about the can understand and be on board with all of that. that is one of the positions. the other governor is expected to be someone who is firmly in the camp of reflation, sticking with the stimulus. he has been a friend and advisor for over 30 years. he is ambassador to switzerland. he is known for being an architect for abenomics and it is in the reflation is cap. these appointments have to be made by march 19. very important i think in the sense that it will be seen as support for governor kuroda and what he is doing to appoint people like this. outd: kathleen joining us of new york. still ahead on the program, shares of verizon up 3.4%. australia and competing in the coal market. we speak with the ceo about the company, next. is it over for hong kong and china's markets? here the view, next. this is bloomberg. ♪ this is "bloomberg markets: asia." check of get a quick your latest business headlines. struggling air by mak

most economists say more stimulus on the back of -- from the bank of japan after shinzo kuroda for a second term. spoke to a former advisor to the government who says kuroda will have to wait and see. >> structural reform is very important and fiscal stance is very important. all bankers can do is continue until theand wait inflation rate goes toward 2%, which may take another six much to a year. haslinda: confidence in rebuilding its business in asia despite flagging fourth-quarter net loss of up to $1.93 billion. says restructuring talks have been productive. indonesia has issued a red alert after the latest irruption of mountain about an so much a -- in sumatra. ashes to reach seven kilometers in height. it was dormant for 400 years before rumbling back to life in 2010. singapore, malaysia and thailand trading today. here is how it is looking for those indexes. gains across the board. minutes.0 this is bloomberg. ♪ julia: welcome back to "bloomberg businessweek." i'm julia chatterley. carol: and i'm carol massar. still ahead in this week's issue, -- still ahead, how the wwe came

against the backdrop of having kuroda continue as the boj governor? henderson: that is exactly right. obviously in the short time, we have seen significant volatility both in japanese stocks and the yen. we have seen a short rally in the yen, a traditional safe heaven of buying. from here, we would expect some degree of consolidation in the yen, as volatility comes off, and as investors refocus on things like yield spreads and evaluations in japan. economic a positive story, as you just heard, mr. kuroda reconfirmed by the bank of japan as the governor, or at least renominated. obviously that has to be approved by parliament. also some interesting picks for deputy governor such as mr. waka tabe, and mr. amamia, those monetaryso just more easing to come, or at least the maintenance of a lot of this monetary policy. that is a pretty positive backdrop for japanese assets and japan as a whole. once the dust settles, certainly my view is that investors will start to take another look at japan . haidi: why do you make of the correlation, when it comes to th

and to her left is hiriko kuroda, the governor of the bank of japan who has actually been a friend of mine for 40 years. we met at oxford, and to his left is mary callahan edoes who is chief financial officer of jpmorgan's asset and wealth management who i've met and shared panels with now on quite a few occasions, and i'm looking forward very much to this one. so let's start with the short-term economic outlook, and you've just recently at the imf produced your update which is wonderfullly cheerful and forecasting 3.9% growth in the world this year and next, so what could go wrong? >> well, let's celebrate what could go right for the moment because we are in a sweet spot, as i've said. 3.9%, 3.9 in 2018 and 201 is not bad and what's interesting is about 120 countries have actually seen the growth increase last year and we only have one-fifth of the emerging and developing countries that are seeing the gdp on a per capita basis decline so it's well spread out, and it's shared between advanced economies, emerging market economies and the part of the world that i would certainly worry m

kuroda said it is not time to get involved in the yen market. he is giving latitude to the yen bulls to push, and push, and push. where is the red line for kuroda? 10 year government bond yields rising again 2.9%. i mentioned cpi, the core number came in at 0.33%. the market is reprising. -- repricing. the bond traders are really beginning to swarm around 2019. you got the curve flattening. the markets are pricing in moves of 25 basis points. next year they are ahead of themselves, they are pricing in 2019.s by you're looking at nearly five hikes by the end of 2020. where do you go on yield? equities are higher, bonds are lower. that is the stay up late on the bond market -- that is the state of play on the bond market. juliette saly has your first word news. juliette: jacob zuma has resigned as president of south africa. it was the ruling anc decision to force them out. ramaposa will become acting president. >> no life should be lost in my name. neverso, the anc should be divided in my name. i have therefore come to the decision to resign as pr

hiroki kuroda may have seemed easy, but it is hard to keep the boost towards a target. for all of this, we have kathleen hays and the tapering looks further away. andhis is not helping people say that there is a risk that occurred and they expect stimulus will continue and a survey of economists supported that. the view of reinforcement pushes itther into the future and is the strongest since 2016. what's here what the deputy finance minister said about how worried he was or is not about the rising yen. something like the dollar, i don't think it is major for the economy. , i think the governor is not worried about the appreciation in the currency. >> in economists think that this will delay the shift and raise moreield target and create easing quickly with the deputy lifers andho are boj the ally of the governor. questions are over the inflationists. you for joining us in studio. i want to start with the , if ion of the yen and was the governor, i would think that i wished it moved in the other direction. >> the main scenario is the u.s. raising interest rates and it w