what do you make of the boj position? to tonerday, he tried down what he said before, but the euro still appreciated, and the main reason is he has not talked down the euro, which has happened in the past. you are right. we are not talking about a taper tantrum we have seen four years , and theben bernanke ecb is clearly conscious about this, that they have to normalize this. 60 billion euros in bonds, there are not enough bonds around. enough inhere aren't japan either, and governor kuroda is continuing that. everyone talks about the law of diminishing returns. have we gone past the point of returns anymore? >> that's true. up to 10, most bonds year maturity were still in negative territory, so we have up, yields slightly moving but clearly from next year onwards they have to reduce, taper, and normalize their purchase program. for us, it is not a big surprise. we are surprise how the euro reacted so sharply on these comments. rishaad: let's talk about euro -dollar, most are bullish. the fear of missing outcome of the mo

japan had its boj day. we do see yen higher leading up to this decision this morning. 111.88 for the dollar-yen. euro traders ahead of the ecb, as well. the yenains a given strength for the nikkei 225. kuroda coming up hours before the ecb. talking about central banks, records on wall street. we seem to be more routine now. betty: they absolutely are. it seems like central banks are a little bit of an afterthought when it comes to the u.s. markets. at this moment, investors are primarily focused on earnings. let's pull up the boards here. you can see the markets closed higher. every single sector in the s&p gained, energy leading the way, s&p up 0.5%. the nasdaq higher by 0.6%. let's get to first word news with courtney collins. first up, the congressional budget office has upgraded its estimate of the impact of the strict repeal of obamacare. a number of uninsured people would arise to 32 million by 2026. president trump told senate republicans that health comes before a holiday. he said they should stay i

that is another thing the boj is fighting. rishaad: boj also battling economists expectations because they are not exactly let's say optimistic about what the endgame is. >> a lot of people are questioning that and i will be talking about that big picture. recent bloomberg survey, 60% of economists we surveyed said the boj target is not obtainable and they expect the boj will not think about tightening until after governor kuroda leaves office. he may be reappointed by prime minister abe. when the boj does titan, they will raise that 10 year yield target, so a lot of interesting questions. to beof policy questions looked at end up with next week in tokyo. so much fornk 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.

japan, boj's today meeting started today. it may be enough to see the real ignition of yen the plight of safety moves after the president's health care failed. 112.05, still a bit of strength here in dollar-yen. equity futures up higher, slightly by 10 points right now. -- you didmention mention the s&p hit a record. it sounds like the bond markets are saying rates are going to stay lower for longer. we will talk about that keystone in a moment. in the meantime, the dollar lower, sliding to that 11th month low, stocks clawing back. they did reach new highs. su keenan here with key market moves to watch. you mentioned the trump disappointment or defeat in the health care, a big hang over the market. we talked about how it was a record close. notice the nasdaq and you might not notice what is underneath stocks,the fang facebook, netflix, amazon. netflix really tore it up this time yesterday in after the bell. it was up in a very big way in the regular session. harley davidson reported earnings, big disappointment, letting the m

the boj fights its lonely 2% battle. at the otherecb end of the spectrum looking at the change of tack. -- tech. more oflet's look for this with kathleen hays, where she covered the boj. we heard from governor kuroda, he held course, but pushed back the goalpost when they would hit inflation. what was your take? kathleen: my take is that andrnor corroded -- kuroda the team at the boj is clear, they are in it for the long haul. in the more reason to dig and continue to fight the reflation fight. i want to preface this whole discussion around the view of questioning this theme of central-bank diversion. not because of the boj, they are the side we look at when we want to say there is diversions -- divergence. a lot of questions for governor kuroda about pushing the inflation target out to 2020. he said 2% is a necessary target. he made it so clear, you have to understand, japan is fighting a 20 year deflation legacy. let's hear what he said. >> i would like to point out, there is strong deflationary mindset among japanese

still that stalling inflation number, what does that mean for the boj and yen? we are seeing a bit of upside from the yen trying to push back 111. there has been some singapore earnings coming through. let's have a check. uob down, but the singapore banks rallied yesterday. singapore airlines returned to profit helped by a surge in the number of passengers and a recovery in the air cargo market. , up by 1.3%ng noble after that 31% tumble yesterday. the international swaps and derivatives association will meet on august 1 to discuss whether the extension will constitute a restructuring affect. across the region, it is only real estate in the black. thank you for the market update. , checking shares of that, down 7.5%. for reasons why, let's get it over to singapore. tumbling afterba a u.s. judge ruled his court can consider western digital's request to block the sale of its chip unit. toshiba argued that as a foreign company it should not be under the authority of a california court. the joint venture parties agree to binding arbitration in san francisco, toshiba

the boj hanging in there? lisa: the boj, the question is when will they run out of assets to buy? i mean, doesn't the boj on the entire japanese stock market at this point? they own 60% of the etf right now, they are controlling their 10-year yields and i think is that why nobody talks about that because the mystery is taken away. jonathan: thank you to our guests. coming up on the program, the auction block. hey gathering revolt among high-yield investors. this is bloomberg real yield. ♪ ♪ jonathan: from new york, i'm jonathan ferro. this is bloomberg real yield. i want to head to the auction block now, where i got to say, not much action recently anywhere. starting in greece, the return to the bond markets postponed. that is partly due to a debt cast by the lifeline may be available as the funds bought said yes to the bailout in principle. another bond issue, korea halting its $200 million sellout. high-yield investors finally getting the upper hand of the -- after years of central bank asset buying and pushing back against some of these issues. in the united states, a 10-ye

that does back the question, where does that leave the boj? >> on hold. yield curve control, keep the 10 year yield near zero, by as many bonds as you need to. still, interesting last week that the jobs to applicants ratio and japan is the highest since february 1974, but the tight labor market is not boosting inflation in japan. 7942, a classic. the white line is year over year , the overall inflation figure. the one that matters the most is the yellow -- excuse me, the white one is the matters the most because that takes up fresh prices, 0.4. nikkei news reporting this weekend that with the boj may do is lower its inflation outlook for 2017 and 2018, and also for itsack a bit inflation target. an interesting story on bloomberg, principal global investors, they are arguing that , boj mayd of the year have to start talking about its eggs that path. --is getting more global exit past. it is getting more global. the boj may have to start spelling it out. >> of potential sea change in terms of communication from the central banks, any chance a drop in inflat

what did the boj say today? japan kept all of its policy tools in place, paddle to the metal on stimulus, unlike other central banks. you still insist it will hit the inflation target even if it takes longer than they would. as the date for when that will 2% target for the fiscal year starting in 2019, no sopranos just thought they would wait. it's a delicate issue for the bank of japan, finally acknowledging it will take longer. 1.4% makes theom optimistic on growth. they see the economy expanding modest -- modestly. , they have to do that to buy the bonds to keep the 10 year note yield a zero. ,any people telling us today bank of japan officials and others, that even this is still optimistic. let's listen to it former bank of japan member. let's>> they have become a littt more realistic. today i think the boj [indiscernible] is still we think that this unrealistic. the bank ofe sure japan governor will be peppered with all kinds of questions along these lines, are you still optimistic when the target is 2% and

boj starts its two-day meeting today. boe and ecb in the next. this background of a crackdown on wealth management products and shadow banking in china taking place as well. those of the things we are keeping tabs on. haidi: we are continuing to clampdown regulatory and the impact on financials, smaller banks exposed to these wealth management products now under scrutiny. it is a dollar weakness story. the dollar index falling to the weakest since august last year. shanghai, hong kong, shenzhen online. let's get it over to sophie. sophie: more losses for chinese stocks,'s sliding for a second day has concerns around the financial risk campaign rattling investors. politics is to protect investor interest in productive financial stability. the hang seng gaining .1%, extending a seven-day rally has hong kong stocks have become a refuge. we did have that strong fix from the pboc helping the yuan maintain its momentum, the offshore rate rising for a seventh straight session. onshore rate rising to the strongest level since october. taking a look at ho

you see it steepening in the boj. we have seen to fixed income operations in less than a week, alicia. >> we have seen arguing for a --g time, that these targets [inaudible] which does make a difference. it shows they are not very confidence. never really achieving that precise target of 0%. it makes no sense now. beforetroduce it right interest rates globally started to move up. theit is basically forcing boj to come back. the yen being weaker than ever. they should just forget about it, or free write it in a way that does become a target. the whole idea was not to have negative rates. [indiscernible] of the day, they need to look at what is going on around you. markets -- give up. now the curve is steepening by itself. >> they can let go. >> i want to drop a chart here. the net long dollar position. i find a fascinating chart. ,round the march timeframe these net dollar position start to go down. there has been this sort of tamping down of expectations for fed rate hikes which have been essentially confirmed today i

>> i feel that boj is desperate. every 10 shows that year move -- yen move against the dollar, the japanese carpets were only see of .56 percent increase in profit. it is not much. there had been talk of increasing fiscal stimulus, but 'sth prime minister shinzo abe approval rating of 36%, it's hard to come across. haidi: we have seen abenomics has been boosting the stock are the boj'sy monetary policies now hurting the topix? >> the topix had been rising, but compared to the u.s. stock market, it is not going as fast. i pulled up some data showing the boj's monetary policy, the year inly rose 8% per the last four years. another thing, 30% of the japanese stocks are owned by foreigners, so when ever that yen weakens, it will affect foreigners capital gains, so that's why a weaker yen is not in a survey good for the japanese stock market. haidi: that's a really good point. thank you for that. , the growth of online personal finance in asia with a company that has backing from alibaba, goldman sachs, and ifc. the chair

jonathan: why does no one talk about the boj anymore? they came into the market and offered an unlimited amount of mobility. there are different forms of accommodation occurring among central banks, and they have a very different strategy that what you see in the u.s. somenk japan has had improvement in growth to modest improvement in inflation, but they are still very, very, way behind. they still have a significant amount of recapitalization to get lending and the economy going. you will see different forms of stimulus coming out of japan for the foreseeable future. jonathan: is that enough to keep the central bank in the market, lisa? the boj hanging in there? >> well, the question is, when will they run out of assets to buy? doesn't the boj own the entire japanese stock market? etf, and60% of the they are controlling their 10 year yield. the mystery is taken away. .onathan: maxwell, mark, lisa, coming up, the auction block. the issuesinvestors, facing the prospect. this is "bloomberg real yield." ♪ jonathan: from new york, i'm jona

the boj is pretty much steady as she goes. how significant will be the words of mario draghi to figure out what the ecb can do without causing cover tantrums? >> in contrast with the ecb, the situation is quite similar. time we will not get a new inflation. but if we did have one, it would probably have to be another downward revision, because they would price it down and the euro is up. the economic background is not too dissimilar. boj, the ecb is stuck between a rock and a hard place they know they cannot afford to define for much longer. that is why we expect eventually they will have to taper, but as you said, draghi will have to very careful communicating that to the market to avoid the wide spread, which would undermine the effectiveness of the monetary policy. francine: i have a chartier here, looking at inflation in the eurozone. you can to the difference between core inflation, the white line, and the blue line, inflation overall. the main difference between the boj is first of all, the balance sheet, the percent of

the boj says it will take longer than thought to reach inflation. this is the second hour of "daybreak: asia." i'm yvonne man in hong kong. after 8:00s just p.m. in new york. i'm betty liu. we are watching all these economic numbers that have come out. inflation not really budging. there inentially flat japan, but we did see retail sales miss on the other end, household spending a nice tidy beat there. a mixed picture, as we have seen with economic numbers out of japan. yvonne: it is interesting to see what led to that spit -- search in spending. --surge in spending. try to push the inflation target beyond 2019 to reach that 2%. we are seeing it stalled for the month of june. in all review the numbers been it. let's get to the first word news. have the we did weakness coming through from the nasdaq in the s&p 500, but we have the dow holding at a ride -- record high. let's see how that plays into equity markets here in asia. it not very positively. almost all markets opening lower. have australia's market coming under pressure in the early session,

governor,boj deputy he is under radar. what is expected after his speech? kathleen: it could be interesting, because he is the deputy governor. last week they had to push out the date when they saw their key cpi number getting barely to the 2% target. in other words, stimulus will stay in place for the indefinite future. he is also considered one of the more dovish members on the policy board. everyone will be waiting to see what he says when he speaks, whatever questions he might answer, that might flesh that out. we have the june boj minutes yesterday and they were discussing whether or not they need to start discussing exit publicly. these are the things we will be listening for closely when mr. nakaso speaks later today. yvonne: they said basically, we should not talk about talking. [laughter] yvonne: kathleen hays, thank you. we speak to the president of one of thailand's biggest energy producers. more on that. this is bloomberg. ♪ ♪ ramy: we are counting down to asia's first major market open this morning. japan futures up 2/3 of 1%. getting a cue

the boj cutting its purchasing of five to 10 year notes. the currency space, the dollar trading near a 14 month low. that is setting most asian forex on the up. higher but it is trading near a two month high. extraent moon did get an budget passed on saturday. the biggest drag for the kospi. crude prices extending on fridays decline. the taiwanese dollar is on the losing end of the prester best end of these --losing end of the spectrum. i want to show you what is going on when it comes to the hang seng, one of the outliers, adding .4 percent. green for other sectors led by casino stocks and utilities sectors. hscei index staying afloat, said to rise for the first day in three. great wall, china railway and china bloc -- >> hong kong stocks back to gains this monday after friday's pause. let's get the first word news. >> the u.k. is claiming that removing trade barriers to the u.s. could generate another $23 billion in business by 2030. the trade secretary is in washington for pulmonary talks. the u.k. cannot formally signed trade deals with

just quickly looking at the boj, increasing the amount of five-year notes it will be fine. billion now buying $330 as yields go up more out of their comfort zone. the 10 year at 0% is their comfort zone. buying ¥500 is billion worth of 10 year out right future delivery jgb's, so boj treasuries there, or should i say japanese government bonds. let's discuss more. lots more to discuss on janet yellen's upcoming testimony. our next guest is watching for any additional details on balance sheet reduction. we have more with state street global markets in a moment. plus, cautious on stocks, but planning to him by more unlisted assets. this is bloomberg. ♪ ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. inhaad: i am rishaad salamat hong kong. investors looking for some clarification over the balance andt reduction rate increases when janet yellen testifies. joining us now is the global macro strategist at state street global markets. are we going to get anything new? >> i don't think so. we have the june fomc minutes. there was only one interesting data,

governor saying he is out of ideas, radical thinking, and that was the experiment with the boj. do you see that is a possibility? >> to the first point about the high road coming yes, but we keep talking about the monetary and fiscal stimulus and never have got into the third arrow in the quiver, which was the structural reform program. forerms of the future governor kuroda, the biggest challenge he faces is if this bit of a taper tantrum in global bondts and that 10 year target 0%, which looks flaky this morning, heading higher, that may be the bigger challenge to growth in the short run than any challenge from within the movement to take a different path. there is this hawkish tone. manus: the tone has changed. anna: exactly. china and about introduce that theme, china's new bond length started today with little market reaction, the bond connect program with hong kong gets offshore investors are a way to access the mainland's $10 trillion market. it is a one way direction of travel. anna: butcher money in -- manus: a whole other story if you want to take your money out. as was

jonathan: why does no one talk about the boj anymore? they came in earlier this week and offered unlimited amount of ability for people to sell, sell, sell, and buy.buy, mike: there are different forms of accommodation occurring in central banks and they have a very different strategy than the u.s. and in europe. has had some improvement in growth, some modest improvement in the inflation picture, but they are way behind. they still have significant amounts of recapitalization has to occur in the banking system to get lending with the economy going. so you will see different forms of stimulus coming out of japan for the foreseeable future. jonathan: is that enough to keep the central bank in the market, lisa? lisa: the boj, the question is when will they run out of assets to buy? don't they own the entire japanese stock market at this point? , they the etf right now are controlling their 10 year yield, and i think is that why nobody talks about that. the wrister he -- mr. he is taken away. thank you to our guests. coming up on the progra

of boj is in a continuation monetary policy. we will continue to make sure will tell you what do need to know. live blogging what is happening. the other is lythgoe -- live go. a couple of options to keep you up to speed. ave many panels available on your bloomberg screen. the ecb will signal its intent to scale back monetary stimulus. is enjoyingurrency a 14 month high but what if draghi does not deliver? the ecb president released a policy update at 12:45 p.m. today. let's take a look with mark cranfield. are asymmetric. no one is expecting draghi to stay. it will be an exercise in saying as little as humanly possible about the subject of qe and electives from it. what constitutes a surprise today? mark: the euro exchange rate and withund yields will end up a closed yesterday. it will be a good result for mr. draghi. in reality, there will be quite a lot of positions going into the meeting and we would like to see some volatility as he is speaking. he has a thin line to tread. already he has said something which suggests they

the boj asserting control over the nation's bond yields, sending borrowing costs lower with its first fixed rate purchase operation since february after the global selloff, bonds pushing yields higher this week. no bids after the central bank offered to buy 10 year notes of .1%, the boj after think after bund yields rose across the globe, threatening that yield curve control strategy it implemented to keep the 10 year yield around 0%. this is the third time the boj conducted this fixed rate operation since introducing that yield curve operation in september. it is not all about the fed, the boe, and ecb. vonnie: that is where i pick it up because my next guest may have some problems. yen, ande, a weaker not only that, a free-trade deal struck with europe, and the word is theresa may will want to have a chat with him tomorrow. he is a happy camper. yields in the u.s., that big rise continuing. the 30 year at 2.94. approaching two basis points for the first time since i don't know when. a couple of other currencies, the ruble trading above 60. weaker by .6% today. the turkish lira at 3.

yvonne: that drama feeding in japan. 10 year yieldhat at a critical level for the boj? kathleen: it could, the bank of japan is now being watched. will they come in and buy some to bring the yield down? what you're going to see here in this chart, is right over here on the far right, you can see how the 10 year yield has poked its head above 0.1. sinceas not happened february. a look how things were back then. what happened, the bank of japan came in and bought some bonds. the bottom line is very important. not just for the bond market, but for the bank of japan itself. yield curve control is one of the most important part of the bank of japan's policy, keeping that 10 year at zero. the more we have a global bonds market selloff, the more major banks signal, we are going to move higher with our policy, the more we see pressure on the bank of japan. the pressure to step up and buy more bonds and explain to the public what they are doing. july 20, 21ing on will be an interesting one, maybe even more interesting than the fed. kathleen hays, joining us from new york. be foc

boj survey we got from the was the updated version, and they were revisiting these plans. this raises a lot of questions of the state of japan inc. at the moment. betty: i am looking at how the japanese yen, which we had seen weakening moments ago, now is strengthening slightly, interestingly enough, on these disappointing numbers you mentioned. we see dollar-yen falling closer below that 114 level. we will continue to see the reaction. it underscores just how hard it is to get japan inc. going. much more ahead. this is bloomberg. ♪ ♪ yvonne: this is "daybreak asia." betty: a quick check of your latest business flash headlines at this hour. barclays is on a hiring binge to boost investment in market operations in japan a year after it cut when hundred 20 jobs. 10plans to hire at least bankers and sales staff to advise on mergers and sell investment products. barclays is ranked 14th among advisors on mergers and acquisitions in japan according to bloomberg data. asked usuropean exchange euro net has about $2.3 billion available for acquisitions. the company operates mar

. >> what happened last year, the boj has come out and they have said this is what we want the price to be, the yields to be and they are basically threatening the market. and they are putting pressure on japanese yields to also rise and the boj has made it clear they do not think that global bond yields rising should put pressure on japanese policy for rise,anese bond yields to and they will act to make sure that the 10 year yield stays at the level they have set, 0.1%. ♪ ♪ david: you are watching "bloomberg best." i'm david westin. next week, jeremy corbyn meeting with eu negotiator michel barnier to outline his vision for brexit. after a strong showing in the snap election, he is aware that corbyn is aware that he could be the next prime minister as talks continue. he sat down with guy johnson to discuss the political possibilities. >> we did very well in the election. we did not win the majority, but we put out a large number of votes and a credible, economic alternative to this government. this government does not have a majority and it has done a very strange deal with the

is the boj in that thinking as well. even though we've got a great piece showing you how no economist believes that boj will hit its suppose it are get by next year, will boj yields grind higher? will the boj have to spend more keeping yields near -- julian: i think that is highly likely. it is difficult to know if they will grind higher. they, along with the ecb, will be behind the other central banks, but i think the boj probably will be the laggard. mark: how long does may last? one year anniversary. will that chart in a year say two-year anniversary or not? julian: she needs some positives and if you things to go our way. mark: what sort of things? julian: the brexit negotiations are the key. if she can make good headway, there's a good chance she can stay in power. if she doesn't, -- mark: not exactly going swimmingly when the e u negotiator says there's a lack of trust and he doesn't think the u.k. government has its house in order. the sounds out of brussels aren't encouraging. is that part of the game? julian: i

clearly, the messages coming from the boj this morning. david owen is still with us. .avid, your thoughts on japan they have been there and done that in terms of trying to stimulate the economy. deputy governor given us some thoughts on white wages have not increased. he put some of that down -- on why wages have not increased. he put some in a down to waiting on the fed. the go all of these central banks grappling with the effects of -- david: all of the central banks grappling with the effects people have to keep real interest rates very negative. that means inflationary expectations at the anchored close to target. that is why they keep referencing 2%. at the end of the day, they want wages to pick up. the same is true here in europe and also in the u.s. is abe'se other risk popularity is waning. jpmorgan said we estimate the ball ability -- the viability of the abe may administration -- does it prove a risk factor to abenomics? of the day, ifnd we don't get major traction in japan, what do central banks do? they have always tried every

steen jakobsen, the boj is in some ways, the outlier right now. at the moment, it feels like the outlier. it is not turning in anyway hawkish, we will stick with our policy and keep the bond market with its hand out. , weill continue to buy etc already own a big chunk of that market. they are not letting go. does that feel like an outlier to you? how does that start to manifest itself? the german curve is steepening and the japanese one isn't. what are the derivative fx for what the bos -- what are the derivative effects of what the boj is doing right now? >> you have one of the biggest positioning in a long time, in three years, i think. i also think about monetary policy. you are putting everything into the same basket. a close of japan has and approach with the 10 year being fixed. they have a slightly different approach. in terms of the monetary policy, i think it is a concern. it is the same concern that is the aired in china with the pboc focusing on the wealth management products. so, yes, it is a concern that central banks beco increase an

boj's attempt to control the yield curve. it is leading gainer in the region but we have the percent.n down .2 yuan tradinge stronger against the dollar, .round 680 it is set to strengthen for a second day against the greenback. rashaad: let's find out what is going on with the first word news. the g-20 wound up in hamburg with the u.s. further out of step than ever with the international group. mr. trump went home having been lectured on trade by china and france and having received little more than platitudes for north korea. trump has doubled the u.s. out of the paris agreement. the president returned to washington saying it is time to work with russia and he discussed a joint cybersecurity unit with president clinton. that led to protests from both parties. --the president returned to washington saying it is time to work with russia and he discussed a joint cybersecurity unit with president putin. secretary of state tillerson visited ukraine to reaffirm u.s. support two days after the first meeting between president trump

weekxt week, the fed, this the boj. this failure of inflation to rise was a japan problem, but does not look so special anymore. , will they acknowledge this or change the date when they hit that 2% target further into the future? ,n the other side of the ledger the boj is not getting to its inflation target fast enough, isn't really working, but gdp has been stronger in japan, wages starting to grow, will theirt low, growth forecasts acknowledge that part of the picture has gotten brighter? most anybody expects is a signal they are starting to buy fewer bonds. decision that will be closely watched later this week. thanks for coming on for us. coming up, speaking of what is feeding through to inflation and wage growth, robots taking on more work to help china transition to a higher value economy. what about people who need jobs? that is next. this is bloomberg. ♪ ♪ quick check of the business flash headlines. amazon's expansion plans including the deal for whole foods raising questions in washington. wall street is

the boj or ecb? our view at bnp paribas is it is likely to be the boj. of these two, we think the yen is likely to be or remain the week currency. we would not be thi surprised to see euro-yen had higher. francine: interesting call. i was looking through your nose and this, high, canadian dollar versus new zealand dollar. , where else do -cad.et nzd >> we think this is going to be elevated. that chart is a great want to highlight. we think the bank of canada may actually surprised markets and hike rates this month. if they do that, the canadian dollar should do well and outperform currencies like the new zealand dollar. this is a great way to be positioned for that view if you have confidence like we do that the bank of canada will hike rates. francine: is this your favorite chart? >> it is. we think the market is too hawkish. there is potential for the bank of canada to surprise. this is not a trait that is interesting for everybody, but it elevates position and pilots opportunity. tom: thank you so much. steven saywell, bnp paribas. paper,this as a lit

what we have seen of the last year is mostly governor kuroda and his economics. , the boj in particular gradually has to start to taper, has to change course, so there is little that can be achieved by monetary policy, so other policies now have to take over, and this so far is not in place and there has been little discussion on that. i think shinzo abe will be careful in terms of replacing governor kuroda, but he needs more coordination and come up with a fresh agenda now. martin, supporters, proponents of abenomics would say it is not that it is failing, but they need to keep doing it, and many years of the deflationary mindset is hard to thee, but now potentially boj having to revise down its inflation target, so has it been a failure? >> not really a failure. japan has an aging economy as a slow growth economy, and economy where it is hard to raise wages because so many are already old and probably have a product to the problem on that side, while the young are a smaller group and have difficulty to get in positions to move up. it is hard to change this on the monetary side, and ja

we also have the boj meeting tomorrow. inflation.ng u.k. i wanted to put the dollar in there compared oto the euro. this is all about the health care reform bill. tom: what we try to do every day, folks, is get you out front of the academic discussion. ia few weeks ago, an incredibly important speech on where europe is and where the united states is. here is the key chart from his 25 page powerpoint. this is killer, fracine. the white is the u.s. the blue is the euro. here's the rollover from the financial crisis. and they really have not come back. what is cool about the sitting your chart is here is the united states gap, and here is the massive eu gap. europe is catching up. europe is doing better, but they have a long way to go to get back to anywhere near the extrapolation of what should have been. that's a great chart from blanchard. francine: that is a really great chart. i have a simpler chart, tom, but i think simple is best ahead of the ecb, showing the rally ahead of the euro. it is currently at 1.15. the premise of this is that

we also have the schedule boj minutes from the june meeting. interestingly enough, no surprises, but they did mention that many members continue powerful easing. they say the exit could not be foreseen. it was premature to even start talking about this exit. he says that might confuse the market according to some members. diversionsntral-bank with the fed on one side the boj on the other end the ecb somewhere in the middle. we will look at that later on. boj's not wanting to confuse the markets. not much in confidence either. the nikkei 225 looking flat along with other asian stocks. we are tracking treasuries lower. we do have oil continuing to rise. we have gold falling as the dollar is rising slightly. gold is down .2% while the dollar is up .8%. given the dollar strength, we are seeing the yen snapped a five day advance down .2% after 110.62 a high of monday. the yen could find some support if the upcoming u.s. consumer confidence figure increases dollars selling pressure. keep in mind that speculators are holding the dollar since 2013. we

. >> there's few exceptions to this the boj, they're nowhere near the tightening talk. same with the snb, he said, no we have to plan whatsoever they have to wait for the ecb to move first can we consider that central banks are behind the curve or are they doing the right thing by being patient >> if you'd like, there's idiosyncratic factors in each of those countries. in switzerland, the swiss franc is uncompetitively high amongst other currencies the smb is battling expectations on pushing the swiss franc further up in japan, we had the boj saying they would buy unlimited bonds to ensure that it was trying to get its bond yield back to zero from about 10, 1 bas1 basis pois >> phillip, you will stick around for longer. phillip shaw after this short break, we will bring you an exclusive interview with one of doha's top financial leaders who says the qatari economy might benefit from the ongoing blockade by arab neighbors. >> it's ban blessbeen a blessinn disguise in the short-term we've seen a lot of businesses in the region who have committed to this part of the world

the boj saying it would buy an unlimited number of jjbs at 0.11%. it increased the size of the regular buying of 5 to ten-year jgbs from 50 billion yen to 500 billion yen. the nikkei falling by a third of a percent. the hang seng off by a half percent. the kospi off by a third of a percent. we are seeing more of a generally negative picture on the european side of things. trading is still going on there. if you look at the markets overall, we're pretty much negative across the board. fractional losses. the dax off by 0.2%. the cac in france, half a percent. the ibex 35 in spain off by a half percent sterling hitting a session low on weak uk output and trade data the european trade of things, the euro just losing ground marginally against the dollar. the pound, 1.2916. dollar strength across the board. >> that dollar strength is playing out in broader markets to check on oil right now after a modest rally for wti and brent yesterday. we are lower again wti crude back under $45 a barrel 44.34. ice brent at 46.98 keep in mind record output from saudi a

we did have an announcement from the boj. pro to push back on the boj inflation target rate, and changed its 10-year bond yield target. the dxy, which has a 40% weighting from the euro, is headed toward a key fibonacci level here. this is the 61.8% retracing of the advance with the dollar bottomed. the intellectual partner says the dollar bounce is largely driven by that euro and general uncertainty over politics in the united states as well as the fed policy outlook. ♪ emily: back to one of our top stories, qualcomm's ongoing legal battle over licensing fees. the latest, they are hitting back at qualcomm saying the chipmaker is asking for accepted payments. if successful, the counterclaims could cost billions of dollars in refunded fees and damages. qualcomm has offered new patent infringement suits against apple. but this time, in germany. tech litigation with bloomberg intelligence. both sides debating their case. what does this mean? >> case continues to expand and reflects the licensing discussion and kind of behind cl

i hope to see the continued effort from the boj having a more positive impact on the economy. rosalind: the indonesian prime minister has stepped up the campaign for election support by announcing millions of dollars in aid for farmers. farmers will be given cash handouts and have death wiped off. many of the ruling coalition have been hit by financial scandals. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. yvonne: thank you. fresher earnings and economic data will share the spotlight, hearings on the trump administration's potential ties to russia, the fed meeting this week to decide on interest rates. su keenan has what to expect. a busy week on wall street. let's start off with gdp data. >> it is a number widely watched. 2.6% annualized growth rate expected, a pickup from the first half, a lot of that being fueled by consumer spending. that would be an contrast to the beginning of the year. in terms of the big economic reports, durable goods expected to show acceleration. in the middle of the wee

matt: even with the boj policy change, well the change in tone, i should say, to some extent, do you see the following through with a much more dovish stance going forward? do they join the rest of the central banks in the world to a sort of less dovish, even hawkish, slant? >> that is a really interesting question. and wonder if's that is a nice short at the moment, not because we have any particular information that suggests they will change their stance, but it feels a bit like a bit of a free option. i think interestingly, as the politics is shifting over, that could have an impact. kuroda and abe have been a joint team in power for quite some time now. right now, popular support for abe is declining quite rapidly. i don't know if that changes the situation and there is change afoot further to milan and that would raise the possibility of shifting. they are going to get nowhere. guy: so, how long should kuroda be staying? there is talk of whether or not he should go soon. >> to some degree, they come as a package. he's not really a central banker anyway. i think that would be int

where can the boj claim success? gdp, i've consecutive quarters of growth. that has not happened in 11 years in japan. wages are starting to rise. could they alter their gdp forecast? it's a monetary policy report meeting that happened four times a year. could they lower their 2017 forecast just a bit, because it probably won't make it by the end of the year. one thing they are not expected to do is drop the time when they could hit their target of 2%. right now they are looking for some time fiscal year 2018. anna: great to have you on the program, kathleen. a quick word on the boj, what they say about the estimates of gdp inflation, that seems to be the focus this time around. holger: they should admit they will not hit the 2% inflation target. the japanese economy is actually doing fairly well. it would take an absolutely reckless monetary policy to get japanese inflation to 2% within two to three years. it would take either a major currency depreciation, which japan does not heated up -- need at all, or germanic increase in money supply. we should not ha

there is not much on day-to-day, but as we work our way, we have the ecb and boj on later on this week. japan is closed today. be aware of that. it has been closed. let us move on and show you what is happening around the world with the gmm. this is the picture around the world. the big caps came under pressure today. that is interesting. the data out of japan, out of china. expectations,eat matched what we had this time around. as a result of which, it generally, there seems to be a sense of optimism this morning. excuse the cricketing story in asia this morning. the chinese equity markets fell, which is interesting as well. the s&p was up .5% friday. the banks were down despite some actually fairly good numbers from the likes of jpmorgan. the aussie dollar coming a little bit of pressure this morning. of ad been on something terribly. let us give you a picture of what is happening in the quantity space. there is a china effect. copper story.e there is copper as you can see trading up by 1.29%. we have already shown you the full value. do not need to do that. let us talk about what is

in hong kong, the countdown to the start of the session, the boj policy statement out later on. mario draghi and company in frankfurt, ecb decision day as well. could governor kuroda be left out in the cold with the only major central bank continuing to buy bonds? we should know hopefully in a few hours from now you're it looking for to the most unpredictable number as we call it than this part of the world, aussie jobs. haidi: that's right. we are expecting 15,000 jobs to be added in the month and to inch up just slightly, but as you and i know, this is always quite a volatile gauge. i am haidi lun in sydney as we wait for those job numbers. the aussie dollar has been a headache when it comes to what the rba is doing. we know they have been sitting on their hands, but we do have again against the trade weighted index, up six point 5% since the start of june, so that is de facto tightening. the job numbers are out. is an interesting read, the headline rate as expected, 5.6%. 14,000 jobs created overall, but then it gets weird. check out these numbers, 62,000 full-time jobs added

we believe the boj actually would be the exception. the market has been speculating, but the bank of japan has been very clear that until inflation if they to present, give up now, it would be a tremendous shot to the credibility. mistake be another huge to do this now, so we believe this would be the exception compared to other banks. manus: we will talk more about the central bank and virgin says and who has the ability to move. he stays with us. highlights for your day ahead. china's xi jingping will meet with russia's vladimir putin in moscow. the redrow modi becomes the first indian prime minister to visit israel. and justin trudeau is down in dublin before flying to edinburgh. a celtic theme. coming up, we look ahead to the fed minutes from the last month's meeting. this is bloomberg. ♪ manus: risk off. that's a shot of hong kong's river. the hang seng, this is your imap function on your bloomberg. wn 1.6% in financials. look -- inll in nc a and see the biggest issues at play. the banks are down. 1.34%.ff there is this shakedow