Our bloomberg voices are on the ground with all of this mornings top stories. We begin in japan, with efforts to calm the market jitters over the coronavirus outbreak. The boj says it will provide ample liquidity to ensure stability. Joining us is enda curran. It help to the market for a second. What did we learn . Enda it seems like it is part of a coordinated push by the worlds Central Banks. To be a g said they would provide liquid it the boj said they would provide liquidity and followed up by putting money into the market. It is important to also say what they are not doing. They didnt signal an Interest Rate cut. Interest rates are already in the get of territory in japan. They didnt indicate any outright easing. They already have a huge Balance Sheet from years of quantitative easing. It is in sync with steps being taken by others. It is more designed to ensure confidence than outright easing. Alix lets stay in asia right now. Global coronavirus cases are at 89,000. Indonesia re
Prices keep going on as demand from investors to buy Financial Assets but there isnt enough them on from businesses to invest in innovation in Capital Investment paying pacing of waiting is a group think they think that entrepreneurs Small Businesses big corporations they will be investing thinking its all about the private sector and theyll do it yeah i think it is about to do that i think the theory of quantitative easing is basically that if the central bank by the safe assets the government bonds some of the Corporate Bonds that are held by Institutional Investors the Institutional Investors will then bible and slightly risky of bones from the real economy from medium sized and those firms will then use that money to invest in Capital Investment productive activity in reality where there isnt enough demand in the economy and what youve seen is those investors just buying other types of Financial Assets buying up really. State in Capital Cities around the world which is why people g
Thanks for joining us here and. Welcome to the program. All right now the streets of tehran remain packed with tens of thousands of mourners for the funeral procession of same salomone the countrys most powerful general was assassinated in the u. S. Air raid at Baghdad Airport in iraq on friday of these are live pictures were bring you from the capital tehran Iran Supreme Leader earlier wept as he said prayers over the slain commanders coffin there has been a huge outpouring of grief across the middle east and indeed beyond as well one of the 1st repercussions for the United States has come from iraqi m. P. s who voted on sunday to expel Foreign Forces from their country for conducting the killing on their soil donald trump though warned iraq to brace itself for heavy sanctions if it kicks troops out. We have a very extraordinary really expensive ear piece thats there it cost billions of dollars to build long before my time were not living unless they pay as back for it if they do ask
Now are the roots to be found in postings because. I know youve been writing about the fact that we keep emphasizing Household Spending rather than innovation and progress and the money supply may not be the most important thing here it may be money allocation as someone from the Chinese Communist but anyway yes i think that is exactly the problem there isnt really a supply story problem theres a demand side problem the demand is coming from speculative speculative type demand so theres lots of demand from households to get mortgages to buy houses house prices keep going on as demand from investors to buy Financial Assets but there isnt enough them on from businesses to invest in innovation in Capital Investment paying my wages group think they think that entrepreneurs Small Businesses big corporations they will be investing. Its all about the private sector a little do it yeah i think it is about to do that i think the theory of quantitative easing is basically that if the central ban
Voices in the military will see committee at the bank of england saying its not working yet well theres voices everywhere and now even some of the top x. Central Central Bank Governor was raising questions about q. E. In his announcement talked about the need for governments to do more expanding fiscal policy and thats a view thats becoming increasingly prevalent i think amongst Monetary Policy makers governments arent yet getting the message that we still havent seen expansion in fiscal policy to create demand in the economy that i think is so you need the roots of the response problem to what we have right now are the roots to be found in postings because. I know youve been writing about the fact that we keep emphasizing Household Spending rather than innovation and progress and the fact that money supply may not be the most important thing here it may be moved. The allocation is still in for the Chinese Communist but the way it is yes i think that is exactly the problem there isnt r