Lets get a check on these markets. We are waiting for shinzo abe to make the press conference this morning. Following that news we did see the dollar dropped against the japanese yen. We have pictures of shinzo abe at the podium in tokyo. He is stepping down two to Health Concerns due to Health Concerns. He is japans longest serving Prime Minister and will make these remarks this morning about why he is doing so. He is leading ahead of its term set to expire in september 2021. The Big Questions are abenomics and what it means for japans economy, quantitative easing, stimulus and structural reforms. Freaky arrows of his economic plan, many are saying the Silver Lining is the boj under kuroda will continue, and that will support the economy. He is taking the stand now. The boj plans to keep current pace in september. Lets listen to what shinzo abe has to say. We have been fighting against an invisible enemy. We tried to minimize the infection as much as possible. We tried to avoid symptoms of the people and protect the people based on expertise. The government has done its level best. Many people have been affected and infected, some of them died. For thosences victims. At this moment, doctors are trying very hard to treat the disease of the people. Today, from summer to autumn and into winter we made decisions about countermeasures. By taking countermeasures, we strike a balance between preventive measures and social activities as possible. We have seen the advancement of treatments. Half of the people who died are in their 80s and older. They have a high risk of symptoms. People are suffering chronic diseases. We trying to save lives of the people. The most important key for the government is how we can deal with countermeasures. Winter is coming. We may have more people with fevers. We have to reduce the burden on medical systems. We will focus on the people who have high risk of infection. We have to change the way we take countermeasures. We have been testing. 200,000 tests can be done. The high risk of infections, we ask Staff Members to take tests on a regular basis so we can for people ofions chronic diseases. When it comes to medical assistance, focus will be placed on people of higher risk to covid19 infection. We have reduced the status of the disease. People with no symptoms [indiscernible] burden we can reduce the on medical systems and doctors and hospitals. Some hospitals have accepted covid19 patients. They are suffering reductions in their incomes and finding themselves in a bind. Even though the seasonal flu happens, we have to have a oftem to treat the disease covid19. We have contingency budgets that will be executed immediately. Together with covid19 countermeasures, we shall never. Ave a vacancy we have to deal with that. Launchedea has ballistic missiles. , we cannse to that protect the lives of people in japan by having intercepting capabilities. Meetings andwe had ofcussed the new policy Missile Defense systems. That will be discussed in the parties. Those are the messages to report to the public of japan. Let me talk about my own health. Ago my chronic disease emerged. I needed to step down as Prime Minister, but then i caused troubles to the public. , and i wasw drug ready and healthy. I decided to take on significant responsibilities as Prime Minister. Years i controlled my chronic disease without any issues. Kept focusing on my job is Prime Minister on a daily basis. June i had a regular checkup and there was a sign of the disease, that is what my doctor said. Drugs. Been using my month there was some condition in my Health Condition , and i was short of my and resurgence had emerged. Going forward, on top of the drug i am taking, i will be taking the new drug. Week in a checkup there was efficacy of the drug that was confirmed, however i need to have continuous drug administration, so i cannot lose focus on my treatment. What is most important to the public is to deliver on the results. For seven years and eight months, in order to generate outcomes, i pulled out all the stops for my job is Prime Minister. I needed to fight against the disease and be treated. State in in a perfect terms of Health Conditions. , i have to make political decisions, important ones. I cannot make any mistake in terms of important decisionmaking. The support of the public is what i have to respond to. To respond to the mandate of the public, and i made a judgment that i should not continue my job as Prime Minister. I decided to step down as Prime Minister. The most significant challenge for us is the countermeasures against coronavirus. Obstacles avoid any when it comes to the fight against the coronavirus. Over the past month, that was the only focus i had. Struggled to make this decision. I see the downward tread in infection after july, and toward winter, the necessary measures have been put together. Leadershipunder new the challenges should be addressed, and this is the only timing where the leadership change should be happening. For the past seven years and eight months we have addressed a variety of challenges. There are a lot of challenges we have not completed. , and are some achievements some milestones that we hit in mandate. Respond to the , i want tohe public extend my appreciation to the people of japan. Though i have one year to go in my tenure, and with other challenges that have not been addressed yet amid the coronavirus outbreak, i decided to step down as Prime Minister. I would like to extend my apologies to the people of japan. I was not able to solve issues involving japanese nationals. The peace treaty with russia, constitutional amendment, im going to leave my status without achieving those ambitions and targets. Indeed a regrettable thing commitment. It is a under new leadership of the party, we will work out new policies. We will have a new engine for growth. Those measures will be executed. The next Prime Minister, before he or she is appointed, the onus will be on me. I will take my responsibility as Prime Minister of japan. , and i have tont regain my health again. A new administration of politicians, to the people of support appreciate your for eight years. Thank you very much indeed. I will take questions from reporters. If your name is announced, please go to the might go to the mic. Thank you. You decided to step down as Prime Minister. As you said, the Continuous Administration of the drug will continue. Consideredould have the option to serve as Prime Minister and be treated. I believe your Health Condition is very severe. Is there a necessity to go to the hospital . When did you make the decision to resign . In the First Administration you needed to quit, and this is the second time for you to do that. A political backing cannot happen. Cannotlitical vacuum happen. How will the successor be decided . Will there be official voting . Think there should be a joint meeting of Party Members . Do you have any person in mind to succeed in your job . You asked about the treatment of my disease. On top of the drug with the iv, the treatment will continue. Checkup, andealth we started to see the efficacy of the treatment. I did consider the possibility of continuing the treatment and serving as Prime Minister after june. There will be important decisions to be made in september, and the session will be starting. There is no guarantee that my Health Condition would continue to be better. Completion of the administration of the drug, my treatment could be over, but there is no guaranteed. Amid the coronavirus outbreak, we shall not generate any political vacuum. Choice but i had no to resign, because of the timing. Last week and this week i went to the hospital to receive the checkup. That was the decision i made after the Health Checkup this week, monday. This is still in the middle of the tenure. Take the criticism that may arise, but as i said in the beginning, in the autumn and winter there will be influenza season. We put together countermeasures for that, and those packages were put together today. They should be implement. We have more visibility to do that. We see the downward trend of infection. That is why i made a decision. The president ial election for the successor. Thinking about those timelines, this is the only timing to minimize the impact. That is why i made such a decision. As long as i serve as Prime Minister, i take the responsibility to fight against the coronavirus. , the drug is very effective, so i will continue to do that for the time being. President and how the president should be election, i am not in a position to talk about that. I am not the one who should talk about who will be the next person. Lets have a question from the other coordinator. Achievements, [indiscernible] please give examples. Amendment ofional , what important assignments will you pass on to the next Prime Minister . We asked a question about legacy. It is up to the people. Shownk the history will what legacies are. When my administration was launched seven years and eight months ago, the recovery was a prerequisite for the recovery of japan. I said we will recover the damages. The people who can work can work. We have to work to make job opportunities. That is high on the agenda of my administration. Jobs for more than 4 million people. Based on the growth, we have [indiscernible] i think we have made a step forward on those achievements. For national security, we have peace and security, and a system to support each other. [indiscernible] japan and united states, the basis of our diplomacy. Japan and u. S. Trade negotiations. Japan took the initiative to freedoms economy with which is fair. Election isational held, people gave support to my government. My special thanks to the people of japan. The history between japan and russia, the constitutional amendment, all those issues carry greater importance for the government in japan. Annmarie outgoing Prime Minister shinzo lobby in tokyo explaining his move to resign due to Health Concerns. Dignified and on a speech from a Prime Minister. Cannot do both, fight the illness and lead the country fighting covid19. He said he decided this week only that he did not to create a political vacuum in japan. For some reaction on this and the market impacts it is having, we welcome paul brain, chairman bond fx, Newton Investment management. Thank you for joining me. I am sure you heard abes comments, a stunning move for the morning. What is his legacy going to be in terms of abenomics . No inflation, massive debt, what legacy will he leave behind . I guess the focus of combining monetary and fiscal policy to address the issues. You can judge if he was successful doing that or not, hours he put in place, i think japan would have been any more difficult position. I think it is a combination spread across two other economies, especially in the virus situation. We have a significant combining a monetary and fiscal policy, rates. To zero inches zero interest rates. Saidrie the bank of japan as he was taking the podium that they will keep the purchases set for september. The you think kuroda is more important to keep japan on this trajectory than who becomes Prime Minister . Paul he is certainly key when it comes to Monetary Policy, centralbank policy. That combines with the purchases , and the policies of japan for five or six years. It is important that he stays at the bank of japan. Whether they can do more or should have more government lesslus, or should focus on taxes that is causing angst ,irected at the abe government as the new Prime Minister takes over, what will be the fiscal policy . What will be the tax policies Going Forward . The central bank with kuroda, that policy should remain. Annmarie everyone is talking about the note j. P. Morgan put out about the yen going to 100 if abe would step aside, and the copy it that President Trump would have to lose the election. That president at trump would lose the election. Paul we think the dollar will be week anyway . Loose Monetary Policy in the u. S. Be strong will against most of the major currencies at times, but it will be weak. That begs the question, can the yen be weak in that environment . Currencyas a major instead of the dollar or the yen. I think the japanese currency could be undermined by political uncertainty. Annmarie we have to hold it there. Paul brain, chairman bond fx, Newton Investment management, thank you for joining us. More japan, next. This is bloomberg. Experience the ultimate sports hub. Where you can find games, news and highlights. All in one place, right on your tv. The xfinity sports zone. Use your voice to search every stat and score. Follow the teams you love. And, even get notifications with breaking news alerts and more. With the xfinity sports zone everybody wins. Now thats simple, easy, awesome. Say xfinity sports zone into your voice remote today. Next question. [indiscernible] i believe you can exercise or clout to an extent. Ballot going to cast a for a candidate, or wait and see . The succession of your policy ,or your support [indiscernible] there might be a discussion within the group, but i am going. O resign president , i will in the nextclout election. I think i should not do that. Items. Re four four items in the draft of the constitutional amendment. Whoever becomes the Prime Minister, it is a commitment will i am sure he or she work on the constitutional amendment. In the middle of the tenure, i believe your Health Condition is severe. How will you be involved in politics Going Forward . You said you will be involved as a policy maker, but you will be former Prime Minister. Is that something you can do . Are you willing to be involved in diplomacy . How are you going to be engaged, and where even a do with the lower house elections . You ask what i am going to do in the future. Will try to recover my Health Condition. As a policy maker, i want to continue my job. I would like to make the best effort so those policies are implemented. For the next administration, needless to say, as one policy maker i want to support the next administration. You are asking about what will be happening. , want to utilize my experience if there is anything i can do, i want to do that. ,he next lower house election this is the decision that will be made by the voters. As one policymaker, i want to do what i can do. Prime minister abe, you took the question many times. Annmarie you are listening to pry mr. Outgoing Prime Minister shinzo lobby. He gave his reasons for resigning due to a health illness. This is the second time he has had to step down because of a Health Condition. He said if he is not healthy himself, he cannot lead the country as it fights a global pandemic. He mentioned winter is coming, and that is an ominous reminder of what the world is fighting in terms of covid19. Blog on thentastic terminal, you almost feel like you are in the room. Abe is using a prompter for this speech because it is so lastminute, and he did not want to create a vacuum in the political sphere. Lets look at how markets are reacting. Dollaryen dipping below 1. 06. We are seeing the euro bidding higher against the yen. The biggest question, can it go to 100 . That is coupled with trump losing the november election. The nikkei closed lower, japanese stocks took a hit. Stoxx 600 off as well. Global equities coming to a halt. More on other headlines. First word news with laura wright. Laura the end of an era for shinzo lobby, rezoning for health reasons. It ends his run as the longestrunning premier. At a News Conference in tokyo, he apologized for leaving during the pandemic. He will stay on until a successor is chosen. President trump closed the Republican National convention with an attack on joe biden, urging people not to trust biden. Trump promised to cut taxes and create 10 million jobs in 10 months. No breakthrough in the stalemate over the stimulus. Nancy pelosi and mark meadows spoke for the first time in three weeks to try to break the impasse. Earlier this week, analysts predicted there would be no deal until the end of september. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Annmarie thank you. Japans Democratic Party is looking for a new leader. In the united kingdom, the liberal democrats have elected one. In last decembers election, they failed to win other voters who gave a majority to boris johnson. Have a new leader, who joins me now. Welcome to bloomberg television. Arguably the most important job as new leader, how do you make the Party Relevant again . I have is exactly what been saying to the party, we need to be more relevant. We have had three poor general election results. We have not been able to communicate our values to people. They do not think we are on their side or that we represent them and their concerns. I have to turn that around, that is the problem i have to fits. Im talking about a National Listening program where i talk to members of people across the country and the party engaging in a listening exercise. Our values are timeless, but we engage with voters concerns, what is on their mind, their problems, hopes and dreams. In a covid world where people are worried about health and livelihood, this is the right time to engage people about the future. Pollrie the partys ratings are languishing. You have been acting as the leader for virtually the entire year. Why will you now be able to expedite that and make the Party Relevant . Ed during that time, we have been doing a number of things. We do the election review, and we had a disappointing election in december. I wanted to make sure the Party Learned a lesson, and that we do not just review 2019, we look back on previous elections to make sure we are learning the right elections learning the right lessons. We are not pulling punches, and that is the basis for the changes i have started to make in the party. The listening exercise engages with voters. It has been difficult to engage with voters during the pandemic. Covid campaigning has its challenges, and i want to exercise this listening program in a way that does answer the questions that we failed to answer. I could not be more frank with you. We have a problem, im going to fix it. Annmarie where does the party stand on brexit . Is it becoming inevitable there will be a no deal brexit . Democrats will oppose a no deal brexit. We have argued, although we do not want brexit at all, the government has amended to push that through. We want to challenge the government to deliver on what it said it wanted. Boris johnson said he wanted a deal and opposes a no deal. We will hold him to account for that. It is vital for the economy and our National Interest that a deal is got, a good deal. Liberal democrats would like that to be in a single market, that makes the most sense for the economy. Given our economy is in dire straits because of covid, and we are probably in a recession that is the worst in 100 or 300 years, the government should be striving to minimize any economic damage from brexit. A no deal brexit would add on to the disaster of covid. Beeral democrats will challenging and sticking to our principles and arguing against a no deal brexit. Annmarie the other thing we learn from covid19 is the acceleration of energy transition. You are proposing 150 billion pounds for green energy jobs. How do you pay for it . A similar question people ask of joe biden as well. How do you pay for a Green Energy Transition . Ed the Green Energy Transition is the competitive one. When it was a cabinet minister for Climate Change, i nearly quadrupled renewable power. Of offshore wind is not competitive. If you want cheap affordable green energy, that option is now there. The threat of Climate Change is so great, and the Climate Emergency will be so costly to the economy, lets accelerate that transition. Thats use the covid recession as an opportunity to create the jobs. Make sure we are investing in Green Technology come on green energy, green transport, insulating homes, rewiring can transitionat our economy to where we need to be longerterm. Annmarie thank you so much for joining us. How do you pay for all the transitions while the economies are brutalized by covid19. , leader of the liberal democrats, thank you for joining us. Primethe end of an era, assertions oh abe ends his run as the longestserving premier. What it means for investors, next. This is bloomberg. Annmarie you are watching bloomberg surveillance. Im Annmarie Hordern in london. More on our top story, Prime Minister shinzo abe is stepping down, he confirmed the resignation in a News Conference in tokyo. He will stay in office until a successor is chosen. Analysis, jesper koll, ceo, japan, wisdomtree investments. You are in tokyo, thank you for joining us. Lets talk about the legacy abe will leave behind. Did economic did abenomics work . Jesper i think abenomics absolutely worked. He was in power for eight years, unprecedented, lots of stability, the Business Committee loved it. The stock market doubled under his rule, and we you look at deflation, when he took power,. Ages were dropping by 2 now they are rising by 2 . That polled japan out of deflation. Nnmarie it certainly did you agree with the sentiment from analysts on wall street that it does not matter so much that kuroda but continues the boj policy . In my day job for the stock market forecast, of course. The central bank, the liquidity provision, that is really what matters very much. However, Political Leadership does matter. Particularly for japan where there are a lot of structural problems, directives on tax changes, directives on labor law changes, to make japan more competitive. For that, you need strong Political Leadership. The bank of japan for a backdrop of the stock market, absolutely, but Political Leadership to get japans Companies Competitive again, absolutely you need it. Annmarie what is next . Abe refused to say who will be his successor. Who do you think . We are hearing a lot about the foreign finance minister, defense ministers. Jesper it is very interesting, you have had eight years of a strong grip on the party. As a result of that, there is a lot of pent up frustration of ruling Party Members who have waited it out and thought it was their turn. That they could not come through. Effectively the leadership succession will be decided within the political party. It is not a general election, just inside the party election. There will be smoky backroom dealings rather than a knight in shining armor. Annmarie im waiting for President Trump to treat about this. They had a personal bond. What does a new p. M. For japan what does a new p. M. For japan mean for the country . Jesper abe was extraordinary. Once a month he left the island and traveled the world, promoting abenomics, cutting deals to promote Japanese Business overseas, spearheading specific partnerships. Mostly be the trade agreement between japan and the u. K. He really put japan on the map globally as a trusted and proactive leader. That will be incredible he hard to follow. Whether it is relations with the u. S. And india, where Prime Minister abe and modi forged a strong relationship, and incredible buffer against the rise of china. Annmarie abe would say to abenomics,buy my similar to buy american. Is this the litmus test for his successor . Jesper absolutely. His successor should be focusing on deregulation, helping to make japanese industry more competitive. There importantly, abe was good at listening to business leaders, listening to outside advice. For all intents and purposes, the current frontrunners, they are inward looking people with little connections to the business or financial community. It will be a bit of a struggle to come up to this level abe has set. Annmarie when do you think we will get a name for his successor, and we do not get one quickly, will there be volatility in the japanese markets . Likely tothink we are have a successor in place in three or four weeks. The japanese are very organized with this sort of thing. It is a rigid budgetary cycle that starts to kick in from the middle of september. Time putzingaste around. I think we will have a successor in place sooner, and we will get a general election bubbly in the spring a general election probably in the spring of next year. Annmarie japanese election spring of next year. They give for joining us, jesper koll, ceo, japan, wisdomtree investments. Coming up, President Trump delivers a lawn order message at the rnc as curfews are placed on several u. S. Cities after protests. The latest from the united states, next. This is bloomberg. Annmarie economics, finance and politics. This is bloomberg surveillance. President trump says voters cannot trust joe biden, speaking at the rnc. He made a case for a second term and accepted the nomination. He promised tax cuts, more jobs, and less reliance on china. Our quick take reporter joins us from new york city. How does the messaging differ from what we saw from the democrats last week . The contrast could not have been more stark, which is expected. Gave the the democrats message of restoring democracy. The republicans intensified this law and order message, which was trumps 2016 message. That message for many people now seems contradictory. Given the backdrop of reignited protests we saw this week, President Trump turned his attacks on joe biden and went so far to say americans would not be safe under a biden presidency. We should remember what kicked off the convention, the speech from the couple who waved guns at Peaceful Protesters this summer. For many americans, the convention does not reflect the reality people are facing. There were protesters outside the white house when President Trump was making his speech. The one throughline of both conventions is that biden and trump agree this might be a most critical election of our time. Annmarie that seems to be the sentiment. Thank you for joining us. She is my friend, i should know her last name. We do still have Prime Minister , outgoing Prime Minister shinzo abe speaking in tokyo. He gave a dignified, a motional, on a speech about why he is resigning, due to Health Conditions. Fight againstnot his health and the global pandemic. Japanese equities are falling this morning. Bloomberg surveillance continues into the next hour. Next, more from jackson hole. This is bloomberg. Hike coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions. Touchdown only mahomes. Expect anything different . The big events are back and xfinity is your home for the return of live sports. Tom this morning, it is truly back to the 1960s, back to the belief that a central bank can let inflation rise to spur economic growth. Forecasting inflation is so 2007. Up, up and away with my beautiful inflation. To the fled re to the fed reflate, can it help america . And president will preserve american way of life. Givet reelected, we will free reign to violent anarchists , agitators and criminals. Good morning, ivory one. Im tom keene good morning, everyone. Im tom keene. For francine in london. We have been watching a most difficult speech from shinzo abe and japan