Better than unemployment read as well. Lets have a look at some of the movers out there. It just shows that things are being priced in. The 10 year yield is pretty much unchanged. One move up on basis point. 10 year yields. An eye on what the bank of japan will say in a few hours time. Could be in an hourm could be this hour hour, could be this hour. No changes expected in that bank buyback program. It could go more into negative territory. Another Interest Rate decision is coming out of indonesia. Most people suggesting that we may see a cut. There is another body. It is a minority and they may stay after three Interest Rate cuts in a row. The indonesian rupiah has a dollars worth 14,090 in indonesian rupiahs. The bank of england a bit later. They are expected to state here. Stay here. Bloombergs u. S. Dollar index, we had some gains after the fed moved. E are holding on to those just up by a fraction. Ons look at what is going market wise. Have a look at some of those first word news headlines. Here is su keenan. With President Trump, he has signed a newly completed section of his border while in california, calling it a worldclass security system. He toured a section of the barrier in san diego and said it would be virtually impenetrable. The customs and Border Protection agency said that since construction work began, the number of people trying across has fallen from the hundreds to just dozens. President trump the president of mexico has been fantastic. All of mexico has been fantastic are a they have 27,000 soldiers. Addition to the wall we have soldiers in the wall is still up and has a way to goes a ways to go. We are building it at a quick speed. The legal hearing into Boris Johnson suspension with judges demanding he explain what he would do if they were to rule against his move. The prime ministers lawyer said the suspension was a political decision beyond the responsibility of britains most senior judges. Riddick say it was an abuse of power. As he said a no deal brexit is almost inevitable. The trade spat between japan and south korea is also hitting tourism between the two countries. A new survey says a rival in japan drove down overall incoming numbers for only the second time in six years. Korean tourist account for a quarter of tours in japan but flunked 48 in august is the two nations impose titfortat export control. Zealands Economic Growth beat expectations, but still marked a fiveyear low. Giving the central bank scope to cut Interest Rates again. Gdp rose 2. 1 from one year earlier. Slowing from 2. 5 in the first quarter. The rbnz slashed Interest Rates with a record low 1 last month. Most economists, while predicting one more rate cut before the end of the year. Global news 24 hour a day, on air at tictoc, powered by more than 2400 journalists and allison journalists and analysts, powered by more than 2400 countries. Yvonne 2400 basis points cut, the labor market is still strong. We are all noting the damage being done by the trade war. Trade developments have been up and down and up. In any case, they have been quite volatile. We do see the risks are more high in spirit we will watch it carefully. We will also watch the u. S. Data carefully. We will have to make an assessment as we go. Certainly the takeaway, one of the takeaways is that, some of them are looking at the data now, some are looking at more data. When you look at this, here is one from the last meeting where they cut rates. Easy from 2019 into 2020. You have a look out what it looks like right now into next year and this is why citi says you look at the flat line of the 20212020 you go into two. We will split the fullscreen into the quote from the fx strategists, why they are now calling this a signal that easing may be over because of that no change in the medium, from next into next year. They have been and still remain fully constructed on the u. S. Dollar. Rishaad dated, perhaps. Lets get an analysis. It was also something curiously said. The u. S. Growth outlook looked solid. If outlook look solid, why are we cutting rates . And if your are data dependent, why are you cutting rates if everything is great . Exactly right. The feds policy reaction cares dammed if we do and dam to for we dont. Part of it is tempering is. The other part is forwardlooking. The contemporaneous part of it is the so card the socalled outlet. We know it is tight, it is tight six months ago and will be tight three months from now. Conditions are ok, but the reality is, on a forwardlooking basement expectations drop from 2. 2 last year to 1. 7. We know there are existential risks out there when it comes to trade war and brexit. We have geopolitical issues. We have potential credit related issues. And the reason why we saw the ecb offer additional lines of credit to european banks and why inhave seen an intervention the wholesale ending market in the u. S. , in order to ensure that monetarys policies stays at the rate of that offense willt, indicates that all david is it appropriate is Monetary Policy appropriate for where the economy will be in 12 months time . Given there is no inflation, why not just cut anyway . Paul they are terrified. They know the experience of laste, japan during the two decades. They are trying to keep it above as long as they can. Haveknow that while they orthodox Monetary Policy flexibility, that policy is much higher than when you are in a qe world. It want to put off the inevitable qe as much as a cancel that the rate cuts that they do make are in the context and the backdrop of were expectations are trying to be geared are ferried to if they are away from that zero lower. Yvonne they even talked about qe light in the u. S. After this spoiling in the repo markets. Whats your interpretation about what happened . Is it enough to calm the tremors we are seeing . Lowering the rates on the excess reserves in order to ruth in order to enforce Monetary Policy. It was two and a quarter. They had to enforce that to interject. Now, it is now one and three quarters. There is indication they may need to do it again. It is not a oneoff. There must be some issue that we are not seeing in terms of banks sourcing their funds. Its through the wholesale market that there appears to be some question marks. Most likely this will be sorted out by the fed nearterm, but if we look at it and see what the ecb has done with respect to their particular market and credit to Deutsche Bank, and then it being almost generically applied to all banks, because they had a choice to go to the window. Coming to the window indicates and provide some information about the state of the banking system. No need for alarms. What it does mean is that the stress of the slowdown is starting to be felt in the United States. Rishaad the outlook is good, isnt it . Just to move on from that one. What happened with apple statement . Who does it benefit with that statement . Who does it benefit statement . Who does it benefit . Risk offas a house car on equities have been as an asset class since july 2 of this year. About isre concerned that we are shifting attention from earnings in 2019, which was slower in 2018, but an orderly slowdown to a more disorderly slowdown in growth, particularly in the second half of next year. As we see the tax cut finally drop out of the data. We think that will be q2 next year. We are pretty sure the fed understands that there is a base effect there in growth from around the middle of next year. About 912k ahead months. We are 912 months ahead of that. We are focusing on equities in the context of asia, where there is less exposure to the cyclical risks, particularly the trade cycle and trade war. Our biggest underweight is korea. Japan, china, hong kong. Where we are overweight is where there is more domestic demand driven growth. Where there are some countercyclical drivers, trade war gets worse, they are likely to get some positive to this. We see that and protection capacity shifting. In particular, thailand and vietnam. Weparticular areas are lets just say, less cyclically dependent. Pacelieve at a much slower it will slowdown. Even during the next downturn, were much of the world will be on the zero lower bound, much of will be inf emerging india. David it is ominous like the titanic. Kate winslet and leonardo cap real, but they are the last to sing. Paul stays with us. Coming up here, we are talking as momentum is building here in congress, a quick action and we will talk about how hong kong unrest has been taken in the city. President trump could have the final say. Rishaad the bank of japan decision after governor kuroda flag possible further easing. Views later. This is bloomberg. Rishaad Federal Reserve cutting its key rate earlier. The ecb lowered its rate to reopen bond buying. Will the bank of japan be next in line out of the big three to cut today . David or will governor kuroda keep his drive for the october for the october meeting . What is the answer for the question . Today . E boj move 81 say the next move will be towards more stimulus, but at this meeting in september, nothing is expected to happen just yet. People are looking at governor kuroda who is coming into the press conference back in july. You can see him there. When he expressed, he was more positive about the possibility of adding stimulus and cutting the negative rate further if it is needed towards the economy and helps keep inflation steady. Into our Bloomberg Library, you can see one of the big issues for the boj. Their experts are down nine quarters in a row. The last the klein a percent yearoveryear. Clearly the trade war has made a difference. There is a lot of conjecture bojt the boj, potentially announcing it will widen its range for the 10 year the bottom 40. 2. N the top, how to 0. 3 that is what they are looking for it or to bar also saying, look at this chart. We had that big move down below global bonding the rally when the u. S. Treasury and tenure got down to 1. 45. When the benchmark tipped below 2 . That rally has reversed a good it. Now you see the 10 year jgb yield back in the range. Another region another reason for the boj to wait for the next meeting. Then the big issue remains, what good will it do for the boj to widen its range . What good will it do for the boj to cut its negative rate further at a time when many people see those measures is not having any impact on boosting inflation. And there is the negative fallout for japanese banks. That is why the press conference once again will be the key focus once we find out what the boj did or did not do in the next hour. David kathleen will be on top of that story. Could come anytime now over the next, give or take, two hours. Chief equityts strategist is here with us. There is a sales tax that is kicking in and about 13 or 14 days. How does that model the mix for the boj . , it is unfortunate timing given where we are in the cycle. It will be unambiguously negative for consumption. And domestic demand at a time for japan needs some offset that chance. That net export is continuing to drop. Is muchan really needs stronger domestic demand, which means consumption in investment and that is not helpful. Why are they going ahead with it . Paul they are concerned about longterm issues with regard to fiscal. David rishaad they are worried about indebtedness now . Paul it is a longterm problem when it comes to the total budget deficit, the total accumulated national debt. The government sees now is the time for making the structural decisions. I would have thought earlier in the economic expansion that that wouldve been the time forward. Rishaad there is one way kuroda will get his target. Paul how is that . Rishaad by getting his taxes. Paul as we know, having seen the increases in japan before, we get frontloading of consumption ahead of the action tax itself. Your nearterm inflationary event. Thirdly, core inflation and headline inflation really did not move very much at all. Unfortunately, japan is still stuck in a deflationary paradigm. Yvonne it has been a sluggish market all year. Are you seeing any kind of Silver Lining in the stock market in japan in any way . Paul no. We have of we are underweight and have been so for some time. Just Economic Growth, but earnings. Earnings and diversification away from the international earners, which are suffering from, not only the global slowdown in trade, the slowdown drops for three consecutive months for the first time. A regional trade war with korea, which is unhelpful for that particular sector. Without inflation, which, there is a lot of cash on Balance Sheets in japan, when you have inflation, which is falling, when you have inflation for management to do something with the cash to increase dividends. Possibly even to do capital investment. The reverse is also true. When you have disinflation and deflation, managements are rewarded for holding cash. They hold cash. Having looked at japan for three decades, that is the default position. If that occurs, the returns in the dollar becomes more correlated with earnings on the market. Z yen, i think, is likely to be one of the currencies of choice for the next 12 months as we see risk factors occur globally. David why does and that spread the boj to do something, if in deep a still do have an option . That seems like a nobrainer. Paul there is an enormous amount of policy flexibility. What we have is some residents doing the opposite of what we are doing with tightening the fiscal policies. The problem there is the concern over debt servicing. Term, it is a very big structural issue. Maybe japan can take more risks on fiscal policy because their debt is domestically owned. You dont run the same risks of having currency crisis. It is the opposite. More impact the message becomes a lot more creative. Rishaad if you would please stick around with us. Lots to talk around lots to talk about. Paul joining us more from him on the way. See you in a bit. Yvonne tear latest business flash headlines. A strike by auto workers at General Motors could hit the company hard. S p Global Rating say gm may go through 1 billion in cash if the uaw action lasts a week. It could seat lost production of about 45,000 vehicles. The strike over pay and conditions began on sunday. S p rates gm triple b minus, the Second LowestInvestment Grade level. British airway pilots have called off a oneday walkout, calling for new talks. They are due to strike at the end of next week, but they are canceling to prevent serious damage to the brand. They take negotiations seriously. The twoday strike trapped almost all ba flights and cost the carrier 50 million a day. David Delta Airlines is funding a study to see if including branches can be used to create jet for your. They are investing 2 million to work with biofuel. Looking at the feasibility to power aircraft. It is part of deltas plan to reduce carbon emissions. They said it is about 20 of the way of cutting emissions in half by 2050. Yvonne fedex delivered its worst trading day as wall street rejected the claims of a trade and weakening Global Economy being to blame for poor results. For analyst downgrade shares, taking the ceo to pass for what Deutsche Bank calls a series of missteps. Fedex is not move fast enough to lower Capital Expenditure and air freight capacity. Rishaad lets look at whats going on market wise. This is the position we found ourselves in. Take a look at where we are now. These are things making headline. Taking a look at this. What we are seeing across the board is the Electronics Makers doing well, but also chipmakers up 4. 2 . Exporters, the biggest andributors to the topix the nikkeis game, a dollar overnight. More hawkish than anticipated. Tobacco is seeing a massive fall in the number of people smoking the domestic cigarette sales while it has fallen over 10 year on year. 10. 5 . Harm selected for the fifth time as an index component of the dow jones sustainability. Asiapacific index, people have to keep including it in their respective indices. David four centralbank decisions, three in asia. Two things toig take away. One is the japanese yen trading at 108. Big gaining against the dollar, which is gaining against the rest. That fourth column, big dip in yields we are seeing in australia. About one hour ago it was after they came up with a jobs report, which we will talk about in the next few hours or so. A take away from that jobs report is that it has been on but you look under the hood, massive job losses when it comes to fulltime employment. We will be back. This is bloomberg. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Yvonne President Trump says new sanctions against iran are coming in response to a drone attack on a major aramco plant. Mike pompeo flew to saudi arabia to coordinate reaction. They claim it is an iranian missile, and attacked from the north. Officials added that the strike was unquestionably from to run tehran. Rishaad Oil Facilities say this will not change Government Spending plans including our defense, and will not change the timeline for the much awaited aramco ipo. We are committed to the ipo and the government would choose the right time, they will lead the market and will decide. Most likely, it will happen in the next 12 months. The listing will happen. Considering market options, but the primary market for listing will be there. David still talking about oil the implications, daewoo paul Capital Markets kitney still with us. Did we feel any effect or did it go away . The First Response was one where we didnt know how quickly production would come back on stream. Oil has gone back to almost where it began. So far, it has been a blip. , if thistical event one was to repeat itself, obviously, that would be an ongoing problem in the absence of that. The supply side is relatively stable. Opec and russia, supplyside, discipline is offset by being more than fully funded, or fully supplied, by u. S. Producers. The supply side is stable. Demandside is falling with the Global Economy. There is a gradual grind down and energy prices. Rishaad is it time to get out of oil stocks . Despite the fact that quite a lot of them have sustained dividends. That is true. But we need to be concerned about in front of those cases airs we have heavy plans that affect cash flows and the ability to fund those dividends. Potential for refinancing risk in that space. As you know, the u. S. Highyield energy index has corrected over while theew months, generic highyield index is actually being relatively strong. This is one area we are concerned about with a bit of potential for credits rising. Yvonne you mentioned about the highyielders. It seems like thats where people were gravitating to. The highyield, the bond proxies and the like. But in asia, that has underperformed the last couple weeks, despite the fact that Central Banks are using now. Just to delineate what we were referring to as highyield credit, so we are negative on that space now. Wehyield equities, which are quite positive on, it makes sense. We have seen the first major correction in the u. S. Bond market since the great bull market that began last year at 3. 2 in the 10 year, where we saw yields more than half. We have seen it bounce to one point 8 . Consequently, the yield cap for the dividend stocks has very near term come in. We have seen a correction in those stocks. We are looking at this as an opportunity to reset, particularly where the yields are sustainable through the cycle. We have got the right financial metrics, balance sheet, free cash flow, and management willingness to sustained dividends during an economic downturn and that gives us confidence. We see this as an opportunity. David so we talked about two or three investment strategies. Highyieldgine equity to a lesser extent. Thailand. In asia is i would counter and say, why not india . It might be cheap, money is getting out. We are positive on india, too. We have been positive for a long time. It is just relative to the sizing of the waiting. The big markets, india is the bigger of the weight. We are also in the context of of the region gearing more towards growth, that is more geared away from the trade cycle and more towards domestic growth. Yvonne thank you so much, paul kitney, daiwa Capital Market chief equity out of hong kong. Reporter we start with fed chairman jay powell who reiterated his view of a strong u. S. Economy as he cut rates and said moderate policy moves should be sufficient to sustain expansion. The fed lowered its benchmark rate by 25 basis points while admitted there is weakness in Global Growth and u. S. Trade policy weighing on the economy. He says he may have to resume bond buying sooner than expected. Thewhile, the fallout from ongoing protests in hong kong is widening. New Research Says visitor numbers continue to decline, and Hotel Workers are paying the price. A survey by an Industry Association says more than three quarters of people working in hotels have been asked to take unpaid leave. Meanwhile, almost half expect their pay to be cut and for hotels to cut staff if the situation continues to worsen. A new report says asian economies will increasingly lead the pack. Boosting their collective share of business, while becoming less reliant on the rest of the world. Mckenzie Global Institute says the region will have a growing impact on trade and capital as well as on people, transport, resources, and the environment. By 2040, it says the asian media homes more than half the worlds middle class and accounts for more than one third of global consumption. Global news 24 hours a day on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im su keenan. This is bloomberg. Yvonne thank you. Earlier this year, tiffany reported dramatic drop in sales in Chinese Tourists. The jeweler discuss this in shanghai. I think the main driver actually is the currency fluctuations, because the strong u. S. Bond saves in the long run. Of course, the inflection of Chinese Tourists abroad. In mainland china, we have seen several quarters drawing double digit growth. China lets get our correspondent selina wang from shanghai, who did that interview with the tiffany ceo. Tell me more about his outlook for china, now that the economy is slowing down. Im here at their largest ever brand exhibition here in shanghai. It really plays up the companys heritage, showcasing more than 180 years of jewels, designs, its placement in history. That comes amid a chime time where more Chinese Shoppers are choosing to buy at home versus abroad. The company is facing headwinds including the u. S. China trade yuannd the weakening against the dollar. He did talk about how the tariffs are hitting the company. Take a listen to how he characterized how they are dealing with. That. This is an effect on the mainland china. Beyondomething that is our control, but we want to deal with it, but not just by increasing prices. We are looking at ways to mitigate this factor. Reporter so they are choosing to absorb the costs in the shortterm. He did say it is expected to have a bit of a margin impact, given that china is such an important market for the. This does not change their plans here domestically. David all right, good stuff. Selina wang, our china correspondent lived for us and the biggest favor biggest ever branded location. Kind of looks like a forest. Coming up here. Rishaad haslinda will be speaking to plenty more big names at this asia summit taking place in singapore. Next up, the Asia Research institutes kishore mahbubani. You are watching bloomberg. The key was always a regression analysis, which assumes the future would be like the past, which it is not. So you are being driven away from investing in fixed Income Securities and looking for yield. Sometimes today, the greatest risk is biannual low yield securities that appear to be of good quality. From a Technology Company perspective, these geopolitical issues are something that always comes up, and these are issues we always have to manage somehow. We are just focused on developing the markets and technology because we think 5g technology is the foundation of revolution. Ustrial i think recession is a tough word in asia when you are still talking about growth rates that are the highest in the world,oap pullback, absolutely recession at least from an asian economic perspective, china, india, perhaps japan over all as you think about this as the worlds growth engine, i think we worry more about the pullback. That pullback does have implications and gives us thought. Rishaad some thoughts from the milken summit in singapore. Lets get back to the event. Haslinda amin is there with us with a special guest. Haslinda the focus here at this milken asia summit is asia at a crossroads, all the uncertainties between the u. S. China trade war, democratic changes, and of course, when you talk about asia, you have to note hong kong in protest, persisting for more than three months now. Lets get more from a distinguished fellow at the Asia Research institute, kishore mahbubani. We are seeing how carrie lam has conceded on one of the five demands. Do you see her conceding anymore to put the city back to where it was before . I think the real issue is not the five demands. What technically stopped the whole issue was the extradition bill. Aat was like a spark that lit big fire because there was dry brush underneath, and the dry brush underneath was what i would call 30, 40 years of neglect of the bottom 50 in hong kong. The big contrast is that in the last 30 years, the bottom 50 and china has seen a significant improvement in their standard of living. In the last 30 years, the bottom 50 has seen a deterioration in the standard of living and no one is paying attention to their needs and interests. This is a major wakeup call. At the end of the day, what carrie lam should be doing is addressing this fundamental socioeconomic issue that hong kong hasnt tackled. It,inda what exactly is essentially in the end is it housing . It is absolutely about housing. In 1997 after the first chief executive of hong kong, he actually proposed hong kong should build 85,000 units of Public Housing a year, and over 20 years, that would be 1. 7 million units. Zero were built. That is absurd. How can you not take care of the people at the bottom . Statistic, for 1 million u. S. , you can buy and , you can buy four apartments of 1000 square feet each. You can buy 4000 square feet of apartment. In hong kong, for 1 million u. S. , you can buy 250 square feet. 16 times less. That is a market distortion of the highest order. It can only be solved by the government intervening decisively. Theres talk about intervention, and of course now a u. S. Congress bill on hong kong. How do you see that playing out . How will the court react . It is not a longterm strategic player. President trump will take advantage of shortterm opportunities. So if hong kong is useful to him , hey for embarrassing china will use hong kong to embarrass china. Haslinda on the bill . Hang on a second. Somethingdecides that more pressing has to do with china, he will also sacrifice hong kong. So it is unwise for the people of hong kong who be used as a pawn and what will become the greatest geopolitical contest between the u. S. And china, because i can assure you that the United States will not send troops into liberate hong kong. That wont happen. It is important for hong kong to ,ealize it is part of china its destiny is linked with china, and it has to come to terms with china and work out a comfortable longterm solution. Haslinda how can this turnout in the u. S. China trade negotiations . I think it will be one more chip on the negotiating table. But at the end of the day, the United States has got far larger interests. The number one consideration for President Trump is that he is going for reelection in 2020. It is very clear now, the evidence is building up, that the u. S. China trade war is having a real impact on the American Economy. If the American Economy slows down significantly, President Trumps election chances will be damaged. It is therefore in his interest to come to a deal with china at some point in time on the trade issue to boost American Economy. And if he has to sacrifice hong kong, he will sacrifice hong kong. Seconds, in about 30 some say the u. S. Is using this trade war to stop china from overtaking it. You say . It is not a trade war. It is the beginning i just finished a book called has in which i document that this is the beginning of a major geopolitical contest that has economic, military, cultural, dynasty dimensions. It is more than a trade war. Trade war is around one. Get ready for round two. Haslinda kishore mahbubani, always good to have you. , distinguishedni fellow at the Asia Research institute. We are coming to you live from the milken asia summit institute. Much more to come in the coming hour. Yvonne the busiest woman in the next 48 hours, haslinda amin. Thank you for joining us. Lets get a look at business flash headlines. Fedex delivered its worst trading day of more than a decade as the as wall street rejected a claim that the trade war and a weakening Global Economy are to blame for poor results. At least four analysts downgraded. Deutsche bank calls it a series of missteps in recent years. Critics say fedex has not move fast enough to lower Capital Expenditure and airfreight capacity. David david it has not been a good time for we work. Issues are piling up for the Office Sharing startup. In addition to its ipo being delayed, deals for two Major Properties in london are in doubt. A saudi based company has pulled out of the deal worth about 100 million, and talks have stalled on a property called we work waterloo, which the Company Calls the largest coworking facility. Breaking news. Rishaad bank of japan keeping unchanged forward policy. They stayed pat and they have come early with this as well. The earlier plea, the least they do. David they will review the economy and prices at the next meeting. That is something new. We have to double check that as well. They dont normally say that. They come out with a statement and then they flesh it out. We need to play pay close attention to the risk momentum. ¥80 trillion target for annual gdp turface is gdp purchases. We are getting a little bit more on them reexamining more things ahead of the next meeting. Yvonne they kept to the etf purchases at ¥6 trillion. Downsized risks from overseas economies seen increasing here. I think they wont hesitate to add stimulus if risks rise. We have heard that from kuroda before. Ouraad lets get over to editor, kathleen hays, in new york. Tell us, no big surprise, they are going through some of all this. What are you seeing . Reporter we had a story in the last couple weeks by one of our main boj reporters in tokyo. When the boj says they will review the economy and prices at the next meeting, what it makes me think of, the last time the boj announced it was going to do a global assessment at the following meeting. I am not saying i overheard the same thing, but that was the meeting where they announced yield curve control. You just said you hadnt seen that before, maybe we just havent seen it for a while. I think that is one thing that bears watching. I was also looking at headlines saying they wont hesitate to keep rising. Sks now. Do see them rising earlier, i showed the chart from the Bloomberg Library with exports down for the ninth quarter in a row. There is a lot of uncertainty hanging over the boj right now. I think people will continue to believe that in fact, the guest that was on earlier talking about getting a lot more creative with quantitative easing. How creative can the boj get . How long can the bank withstand a system with negative rates withcan get more negative, the boj purchasing so many outstanding gdbs . People say its distorting the bond market. This is a tantalizing tidbit, but again, when governor kuroda sits down in front of all those reporters this afternoon, i am sure he will be asked a lot of questions about that. Rishaad very quickly, we had a couple of people dissenting from the current Forward Guidance. They voted against this rate decision. What did they want . Reporter what they want is more stimulus. Is. S an ardent reflation he has been descending a lot of the meeting saying that we can do more. Potentially he wants more negative rates. Maybe he wants the 10 year jgb to be even wider to go to. 3,. 4 . Reflationis also a nest, but hes also confirmed concerned about the rates. David we are just getting as well another incrementally new statement out of the boj. Paying closer attention to the risks of losing that 2 goal momentum. We know that has been the reality of them moving away from the target they set five years ago. Correct me if im wrong, is that the first time they have actually acknowledged there is now a mercurial risk from them losing or achieving that target . Reporter i think that is an interesting point to raise. Certainly, governor kuroda has maintained confidence and said the boj is moving in the right direction. I think you are right. He has frequently said the momentum is there. He can look at the tight labor market. He can look at job openings to applicants. That ratio also indicating a market. Ob inflation a couple of times has gotten up to 1. 0 on the core numbers, still far from 2. 0 , but is moving in the right direction. Recently, we have seen it pulling back. You can blame that on a lot of things including volatility and oil prices, but that seems like another significant statement. Every reporter who covers the boj in tokyo will be getting questions later. It our asias bring fx rates reporter. Tell us about dollaryen here at the moment. The boj review of the economy, prices at the next meeting. What does that mean for the direction of the dollaryen now . Certainly, there is a slight tweak the market will Pay Attention to. The boj has always said that if we prepare to ease, inflation has always been a long way away from the goal. The markets are saying it will take an extremely high level of easing to get near their. There. Thats why you have not really seen dollaryen move much on the moment. I think going towards the next meeting with the new ratings on gdp and inflation, there could than. E tweaks that would move the markets. For the most part, the main thing is the risk of trade which connects to brexit or the u. S. China trade war. That is the main driver at the moment. I think at the rally at the you dont know how much of an escalation the trade war or brexit money will slide back into safe haven funds. Rishaad with this tax coming in at the moment, does that do anything to the yen in any way, shape, or form . What will it do with the Forward Guidance . Reporter i think its a very good question. Not necessarily the yen, it is more for the boj. The last time it did, there was an impact of the economy. Im sure the boj would want to see that impact again. Obviously if it is negative, that increases a chance for stimulus. This is down the line. They wont react straightaway, the boj. They may do, but with enough time to see the impact. Any initial impact on dollar yen minimal. Again, it is really the trade of the risk on, risk off of the trade war. If there is an escalation in ira n, with more sanctions and that escalate, again, another potential safe haven that could benefit the yen. Rishaad David Finnerty joining us from singapore, and of course kathleen hays, our Global Policy editor in new york. 2 inflationhe target being lost to some extent. David we will be back. This is bloomberg. This is bloomberg technology. Coming up, listening in. Facebook confirms it will resume collecting and transcribing some user audio clips. This is from its inhome video device portals. We will hear from the president for augmented and virtual reality, andrew bugs worth. Plus, president ial revocation. A President Trump revoked californias waiver on a