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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot com, the radio plus mobile app and on your radio.

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Speaker 1: This is a Bloomberg business flash. And this business flash

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Speaker 1: being gross you by National Realty thirty returns on cash

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Speaker 1: and rented real estate. Find them at m r i

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Speaker 1: A dot net. Well in the early going, we have

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Speaker 1: the stock index indexes right now they are mixed. The

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Speaker 1: down Jones A desk laverage down seventy nine points. That's

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Speaker 1: a decline to point four percent. The SMP five hundred

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Speaker 1: now is down four points. That's down to tup. How

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Speaker 1: to turnaround in the tech have a nastac right now

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Speaker 1: it's four points higher at eight sixties seven. Any number

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Speaker 1: of deals today. Abbot is buying Saint You a medical

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Speaker 1: for twenty five billion dollars in cash as you share

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Speaker 1: as a as a result. St Jude shares they are

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Speaker 1: soaring today, and also Comcast a green to acquire DreamWorks

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Speaker 1: Animation for three point eight billion dollars. That works out

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Speaker 1: to about forty one a share. Once again, it's not

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Speaker 1: INDEXUS right now they are mets. The DAL up eighty

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Speaker 1: five points, s and P five is down four points again.

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Speaker 1: The doal down eighty six points at the NASDAC right

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Speaker 1: now four points higher. We check the markets for you

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Speaker 1: every fifteen minutes during the trading day. Right here, Bloomberg

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Speaker 1: Radio and Bloomberg Surveillas continues back to Mike and David.

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Speaker 1: Thank you very much, John Tucker, Well, um, if you

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Speaker 1: were short the Japanese, Yeah, going into the Bank of

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Speaker 1: Japan meeting, you lose the kenning much stronger after the

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Speaker 1: Bank of Japan disappointed people who thought they would add

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Speaker 1: additional stimulus to the economy. Imor Daily is the head

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Speaker 1: of G ten for analysis for Standard Charter and unfortunately

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Speaker 1: you're one of the people who is a bit unhappy

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Speaker 1: with Coronisan this morning. Yeah, I have to say we're

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Speaker 1: exfrecting more from the Bank of Japan. We were looking

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Speaker 1: for them to introduce negative policy rates on their bank

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Speaker 1: landing and also to do more and do more in

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Speaker 1: terms of e t F purchases. However, we were probably

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Speaker 1: at the lower end of market effectations, so we actually

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Speaker 1: did see a risk that the yend and the yend

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Speaker 1: could rally Actually off the back of this. I think

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Speaker 1: it's a problem in terms of market communications and elevated

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Speaker 1: market iffretations going into this meeting on what the Bank

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Speaker 1: of Japan really did, which the market, you know, kind

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Speaker 1: of overlooked their support package for the earthquake case areas

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Speaker 1: and really saw this as a a nothing move. We'ven

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Speaker 1: talked about that yet. Today there was some some stimulus

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Speaker 1: in that regard that the Bank of Japan is going

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Speaker 1: to deliver some money to a commodo. Correct, yes, that's true,

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Speaker 1: but it's only of a limited size UM, and obviously

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Speaker 1: it's not on an ongoing basis. So I think the

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Speaker 1: market was looking to a lot more and was looking

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Speaker 1: for you even further cuts UM in terms of negative

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Speaker 1: interest rates, looking for expansion of q Q we even

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Speaker 1: equity purchases UM. And really what came really fell a

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Speaker 1: lot short of market expectations. Now our Fox over in

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Speaker 1: Japan we're writing that this is stimulus delayed, not denied,

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Speaker 1: that they're still going to have to do something in

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Speaker 1: the near future. Yeah, we would definitely subscribe to about you.

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Speaker 1: We are looking for further using as from the bank

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Speaker 1: and in the second half, so you know, either ten

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Speaker 1: to twenty basis points of further cuts and that could

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Speaker 1: be combined um with an expansion of QQWI and including

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Speaker 1: e t F purcesses. I think there's many factors to this.

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Speaker 1: I think it's stronger. Yeah, obviously damages in place and expectations,

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Speaker 1: damages exports UM and the exports of major Japanese companies,

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Speaker 1: which are really kind of the backbone of the behavioral

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Speaker 1: train change that economics is hoping to put through UM.

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Speaker 1: But also in terms of the amount of of foreign

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Speaker 1: overseas as IT holdings that the Jeffrey's Investors UM now holds,

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Speaker 1: I mean a stronger Yean, it's definitely gonna damage that.

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Speaker 1: And I think the lower Nicky as well your movie

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Speaker 1: up setting for abbas. So I think you know this

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Speaker 1: is definitely monitor easing delayed, not to nice. What do

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Speaker 1: you make of the decision to delay then the motivations

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Speaker 1: among the b O J to to do this. Is

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Speaker 1: it because of the market reaction, because of the market expectation? Um?

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Speaker 1: You know, I would say there has been such a

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Speaker 1: backlash to negative to negative interest rates locally, so that

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Speaker 1: could be part of it. UM. Also, UM, they are

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Speaker 1: looking at what kind of impact on the economy and

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Speaker 1: negative interest rates have and almost if you ease directly

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Speaker 1: after just having introduced negative policy rates, are you you know,

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Speaker 1: in some way admitting that negative policy rates aren't working. Um,

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Speaker 1: So I think, um, either they're gonna wait a little

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Speaker 1: bit longer, and I think they'll continue to do the

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Speaker 1: kind of big bang policy and eind since they will

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Speaker 1: come back and hate two with an aggressive and easing

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Speaker 1: program um, and we're expecting a much weaker yans the

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Speaker 1: back of that because the negative rates aren't working at

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Speaker 1: the moment um. I think they underwhelmed market expectations and

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Speaker 1: you've got a backlash from the market. But I think

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Speaker 1: what the Bank of Japan has been very clear about

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Speaker 1: saying is, you know, this isn't a policy for financial

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Speaker 1: institutions or for markets. This is for the economy and

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Speaker 1: we'll wait to see it feed trough and see if

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Speaker 1: it has an effect. So they've given kind of an

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Speaker 1: indication of six months, so that's kind of the time

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Speaker 1: frame where you would really see it started to take effect.

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Speaker 1: For I think that would almost be a guidens in

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Speaker 1: terms of when we would expect to see them ease.

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Speaker 1: For there we've been talking about the strengthened Yeah, and

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Speaker 1: how about the week dollar in light of um, what

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Speaker 1: we got yesterday from the from the Fed not doing

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Speaker 1: much there to help the strength of that dollar. No,

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Speaker 1: not doing much at all to really support the dollar.

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Speaker 1: And you know, and and all the equities are dying today.

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Speaker 1: But I have to say that I think in terms

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Speaker 1: of the global environment, you know, having you know, a

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Speaker 1: slightly weaker dollar m and having a more cautious sed

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Speaker 1: it's probably very supportive for for some young currencies and

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Speaker 1: also for commodity and linked currencies, And it is supportive

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Speaker 1: for global growth. And we've obviously seen you know, rebuind

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Speaker 1: and global equities since them. The FED you know, turned

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Speaker 1: more of it in our March meetings, So we'd expect

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Speaker 1: that trend really to continue, with the Fed being a

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Speaker 1: lot more causes. Uh is smarter than us. Um. We

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Speaker 1: we would say the central banks over the last twenty

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Speaker 1: four hours did no harm. You wrote it in Latin,

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Speaker 1: going into cherry. Uh, they don't see inclined to add

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Speaker 1: a lot more stimulus? Are are central banks in general

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Speaker 1: feeling that what they're doing is running out of runway

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Speaker 1: here that the extraordinary stimulus we've seen you'll be having

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Speaker 1: so much of an effect anymore. Um Well, I think

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Speaker 1: corot To kind of answered that question directly in his

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Speaker 1: press confidence when he um, you know, urge markets that

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Speaker 1: the central bank is definitely not run out of policy ammunition.

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Speaker 1: I think it is a question right there, if we

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Speaker 1: don't get kind of more aggressive stimulus from the ECB

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Speaker 1: and from the BOJ, will this question really come back

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Speaker 1: in terms of you know, how much ammunition do central

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Speaker 1: banks really have to ease um to ease further into

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Speaker 1: support markets. And I think at the moment, you know,

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Speaker 1: we're being helped by stronger prints out of China and

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Speaker 1: also a lot more cautious bed um. So I think

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Speaker 1: you know, unfortunately, I think that I look at the

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Speaker 1: moment is a coucious bed and expectations for more easing

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Speaker 1: from the Bank of Span and from the ECB. UM.

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Speaker 1: But I think you're sarning that question if central banks

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Speaker 1: run out of I mean this or not, you could

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Speaker 1: definitely crop up again. What are the effects on China

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Speaker 1: on the u N from this this decision out of

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Speaker 1: Japan overnight? Um. Yeah, I don't think it has much

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Speaker 1: of a direct impact probably um for someone em and

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Speaker 1: it's just a maybe currency wars or maybe coming to

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Speaker 1: and eat and and um, I think it's very much

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Speaker 1: the markets always switched in terms of looking at when

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Speaker 1: they're gonna they're gonna ease further. Then, you know, I

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Speaker 1: don't think the market is you're very considered that they're

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Speaker 1: not going to ease again. I think the reaction in

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Speaker 1: the end and the reaction in the NIKA is definitely shown.

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Speaker 1: Then it is a question of when and not if.

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Speaker 1: Um So, I don't think there's too much elevated concerned

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Speaker 1: the movement the more easy will be forecoming. How about

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Speaker 1: the European Central Bank, Um, they're also affected by what

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Speaker 1: goes on in band equities down there and the questions

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Speaker 1: about whether or not negative rates are having an impact

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Speaker 1: in Europe as well. Um. Yeah, you know, it's it's

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Speaker 1: a hard thing. We have such a negative you know,

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Speaker 1: interest rate environment within the European Union and we still

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Speaker 1: do you think that the negative rates have an impact

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Speaker 1: and and certainly will support inflation going through And to

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Speaker 1: be honestly, as a question of what else they can do,

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Speaker 1: I do think there's kind of tactical switch in terms

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Speaker 1: of the ECB to really step away from you know,

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Speaker 1: targeting the stage rates through negative interest rate policy, but

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Speaker 1: more being really supportive in terms of credit environment within

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Speaker 1: Europe to really kind of bolster landing bolster growth. I

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Speaker 1: think we saw that from their policy easing earlier this

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Speaker 1: year that they're much more focused in supporting the economy

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Speaker 1: and not not so much focused on on the potential

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Speaker 1: flashy effects of a weaker currency. Um, so we do

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Speaker 1: you think we are seeing its slight shift in terms

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Speaker 1: of ECB away from from a weaker euro in terms

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Speaker 1: of more credit support and to the economy. M Daily,

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Speaker 1: thank you and Latin to Tom King would have loved

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Speaker 1: her note in latin. Um. We're wrapping up in an

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Speaker 1: extraordinary couple of hours here, David, with all kinds of deals.

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Speaker 1: I know Dave Wilson will be back to kind of

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Speaker 1: run through everything but the big one billion dollar Abbot St.

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Speaker 1: Jude deal of course, the DreamWorks deal as well. Yeah. Now,

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Speaker 1: Paul Sweeney was really impressed with the price Jeffrey point

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Speaker 1: for that and as you said, shreks out by in

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Speaker 1: a ferrar. But it has not impressed investors. Right now,

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Speaker 1: the SNP five is down by three points a tenth

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Speaker 1: of a percent. The Dow Jones industrials are off seventies seven.

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Speaker 1: They're off four tenths. Nanatack the only major index in

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Speaker 1: the U S It's are seven points right now to tents.

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Speaker 1: We are produced by y U n As always can

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Speaker 1: tell you our technical director. Thank you to David Gura.

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Speaker 1: We wish Tom Keena continued happy vacation from the folks

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Speaker 1: that surrounds