this is 2 billion euros to 3 billion euros in june, 2018, bonds that come up for auction. also, longer term paper, 3.75 billion, this is ten-year paper on office. the market looking out for that. this is how it placed on the rest of the markets. bonds, yield of 1.66%. portugal yields tracking close to the 6.5% mark, still treasuries a fraction of 2.6 own & own and on gilts, 2.31. investor watching debt markets and on we can its and forex. let's just dive in and see what some of the trades look like. we have a little dollar strength now on some of the baskets. euro dollar the exception, still seeing strength on the euro, 132.73 currently on the charts. the dollar/yen rates, 98, inching back to the 100 level. australian dollar, very much on the back foot today. we have seen steep fall, 1.5% here. this was after the central bank governor said there was more room for the currency to fall and also the interest rate cuts. and this comes up to a key central bank meeting next week. some of the market anticipating this as a sign that interest rates will mark lower. sterling/dollar

the euro is irreversible. it is pointless to bet against the euro. it's pointless paubecause the e will stay. i'll repeat what i said in london the first time, we will do whatever it takes, within our mandate. the euro is irreversible. we are ready with our omt. as i said before, we stand ready to act with omt. we decided to lower the interest rate by 25 business points. we will address and cope with the consequences if we decide to act. we discussed several forms of forward guidance. the key ecb interest rates to remain at present or lower levels for an extended period of time. it is the first time the council says so. >> the euro crisis will come to a head this autumn. in an interview in a german paper, he called the policies fatal saying they brought time for politicians which is then wasted. he also said that following the german elections, france will pressure the ecb and germany to get support from the omt program. still with us, hawking meeting. what do you think of the comments? >> i hope he's completely wrong. the dire predictions that all w

ultimately what's -- what's at stake here is an 8.1 billion euro sum of money. 4.8 billion euros to come from the eu. 1.8 billion to come from the imf. ultimately they're expected to get this money, though it will come through in two separate

that asset of the company are at 4.25 billion euros. so probably there is a little bit of pressure as well here because they're really desperately need a cheaper refinancing, ross. >> yeah. and, let's talk about -- we spoke to the ceo yesterday, the unit spun off, had a bumpy first day of trading. things are better today. what's going on? >> they have been quiet, some analysts saying that it is a good buy and they have increased the target price, credit suisse is saying 44 euros and ubs came out with a note, they didn't have a look at yet, which was at least optimistic. and positive about the share price development. and we're seeing shares really jumping on that. yesterday still every commentator was very negative on the outlook for the company because, of course, through the sheer structuring of the transaction that if you had ten semen shares, you got one share in your portfolio that would have meant as well there was no clear decision to buy into the issue. so the likelihood that you're selling it again is quite high. that was the o

and euro sterling, euro/aussie. >> i think people are still cautious on the financial sector and the direct underperformance in the overall index. i think china would still be in reform because we are bullish. some people are very cautious about the financial sector in china, so that's why we would see china to continue to underperfe underperform. >> right. so that's the thought of some members with the s&p up a fresh record highs, let's get a look ahead at president. christine is still with us. ben, good to see you. what do you think? do we have retail sales today, mr. bernanke during the week, and a whole host of earnings, how does it look to you? >> reporter: well, certainly a lot on the plate, if you will, for traders right now and a lot of information coming out this week. as was the case last week for the most part and really what i'm seeing is a subdued kind of limited reaction, limited in terms of precipitation at least across as far as stocks go and some of the stock indices future products. very low energy type trade. again, you touched on the fact, albeit it very much conv

and i asked her as well what is that 6 billion euro thing, roughly 1,000 euro per capita youngster unemployed so literally nothing but she explained we have to count as well the 60 billion euros of unused funds sitting with the eu, so-called social funds and the eib, the european investment bank will make more loans to small and medium-sized enterprises in those countries who essentially face the credit crunch. so take a listen what they have -- what she has to say on the sheer numbers, where they're upping the budget for that. >> it is not only the number that is -- but where do you want to invest this money. it has to be efficient. and for the first time we have labor ministers and the finance ministers and the heads of public employment services at one table because the investment in mobility in europe, the investment in dual vocational train, skills for the future generation, next generation, and, of course, to fight the credit crunch in southern european countries. these are the three pillars we want to invest in. >> how do you want to export the model to southern europe. a lot of compan

and the contagion effect this has had on the euro. the euro is not prepared for that. we have seen the contagion in two countries like spain, italy. you need to think about ways to protect yourself about this job, which is completely different from the credit shock those countries had in the past year or so. new challenges for the ecb today and it is all going to be about signaling they are completely ready to protect themselves from -- >> more than die lock this time. last time investors were incredibly disappointed that nothing transpired. >> compared to the may meeting there was a big disappointment. may was about promises and june was about underdelivering relative to the promises. it is an important meeting. i think the market lost a bit of patience around the talk. it wants the walking to walk, basically to strategy here. i think here on balance, this is setting us for a slight disappointment again. >> we'll wait for the press conference later today. thank you for that. jacques, chief european economist. >>> still to come, the mpc meets today for the first time.

this year from 3 billion euro last year. so that's good news. for the next year, the company is expecting very significant cash reduction and also there was a positive announcement yesterday evening, the european commission approved the support from the french states. it gave its dreamline for the french state to provide a financial guarantee for the financial need of peugeot. so all and all, better target for the negative cash flow and financial support from the state, that's the reason why the stock is where it is today. >> we'll be talking more about peugeot during the course of the program. let's talk about diageo, stock down a percent, but new strength in u.s. allowing the spread group to allow 5% in net sales for the fiscal full yoear and increase dividend. double digit growth in the emerging market may be hard to maintain. >> the emerging markets are going to be a rocky road. just in the results we have declared, brazil has been tough, nigeria is tough, china and india slowed down. however, we have still been able to

euro/dollar just on this side. see where we stand at the moment. 1.239 that's where we stand in european trade. let's go to singapore for the update on asia. sichuan? >> thank you, ross. asian markets sharply lower this monday hurt by u.s. tapering fears and beijing's plan to rebalance its economy. the chinese government basically said it will no longer extend credit to sectors that struggle with overcapacity. the news put pressure on chinese banks. bank of china and icbc's hong kong listed shares both down about 2%. a few other troubled stocks to tell you about. china's rongsheng heavy industries plunged today on chatter beijing will not step in to keep the company afloat as the shipbuilding business has overcapacity issues and the stock has already lost about 33% over the past three sessions on concerns over its profit warning. workers laid off and also the cash crunch situation. in japan mobile carrier softbank also lost ground after standard poors downgraded the stock to junk inciting the expensive deal to buy

and euro/dollar, 1.3269. now, the indian rupee also is a tad weaker ahead of india's central bank decision tomorrow. currency likely to be the focus after hitting a lifetime low of 61 per dollar earlier this month. it's lost more than 8% of its value versus the dollar this year. today the prime minister of india is meeting industry leaders to discuss how to deal with the issue. and here's the rupee at the moment, 59.37. let's get more. patrick, nice to see you. let's kick off with the rupee. the finance minister has come out this morning and said the weakness of the rupee is down to what he calls speculative attacks. is he right? >> no, i don't think so. look, i heard that as well. look, i think the weak rupee is a necessary part of the policy mix in india. we've got, you know, triple deficits. we need easier monetary policy, tighter fiscal and a combination of that, we need a weaker rupee and we expect it to stay weak for some time to come. >> is it going to get back below those record lows? >> look, i think

euro/dollar below the 132 level. pretty much flat on the day. and sterling/dollar at 153.61. >>> turkey's central bank holds its policy meeting today, widely expected the bank will raise interest rates in order to stabilize the lira, which fell to a record low recently against the dollar and bring inflation down. in rare written statement ahead of the meeting, the governor signaled the central bank is willing to raise rates. let's continue the discussion about the turkish lira and what the central bank will be doing today with the head of the cemea economics at morgan stanley. he joins us now. thank you for taking the time to speak to us. so there seems to be a pretty broad consensus that we are going to be seeing a rise in rates, but by how much? what is your base line? >> the market is divided in terms of expectations, 50 and 100 basis points. looks like the majority expects 50 base points hike in the upper end of the quarter. we think they might actually go for 100 base points. we are in the minority, but i think two things to note here, firs

so the 100 million of the euro that mr. schaeuble brings along will have to wait some time until they get into the real economy, because this is the one that suffers in greece. there is no access for sme in greece to banking capital, so this is urgently needed money, but 100 million is much too low as a spur of the greek economy. >> a lot of tensions on the streets as schaeuble arrives and a lot of the protests have been forced away from the area. does this just fuel resentment towards the germans? >> well, it has happened already during chancellor merkel's visit to athens that all the protesters have been expelled from the city center and away from the airport to the city center. it is bad, i say this as a european parliamentian, bad for the european spirit that having somebody who is a friendly nation who should be somebody who helps you in such a bad atmosphere, but this is the way we are. this is the status we are in europe at the moment. the greeks try to do their best in order to show the best picture and mr. schaeubl

euros at the same time last year. this is on the back of cost-cutting and increase in tax revenues. despite the european stories, the euro has been much more direct by what happens with the fed and chinese growth worries. >> absolutely. i mean, like you said, the stories do matter for the long-term. they matter for trend growth in italy, for example. a slow pace of structural reform means lower trend growth. but it is very hard to turn that into a short-term currency trade. most investors were standing back from eurodollar at the moment. >> with what we saw clearly in the last couple of weeks was with the fed comments was, you know, preripheral yields rising any concern in euro traders that if u.s. yields continue to back up, the ecb will lose control of peripheral yields? >> i think the ecb will be very conscious of that and conscious of the danger that it ends up importing policy from the u.s. which is clearly something it doesn't want. financial conditions and economic conditions very different in the eurozone. and

820 million euros a year earlier. the stock price is still up .2%. all weighed down by lower net interest income. and bhp billiton soaring today, another record rise in iron ore production. output reached 187 million tons, increase of 9%. the world's biggest mining company is plowing ahead with plans to increase output further and said expansion of its iron ore operations in australia is running ahead of schedule. back over this way, land securities says 97.2% of retail portfolio is occupied. we have 52% of its latest city skyscraper nicknamed the walkie-talkie is already prelit. the share price just over 4% today. and the earnings day ahead looks like this. before the u.s. open, bank of america will report numbers with ebay, ibm, and intel the ones to watch after the close. thursday, it is the turn of the tech titans, microsoft and google, they'll both release second quarter figures. while at the end of the week, numbers from general electric. >>> coming up next, we discuss managing your investments online with nutme

so a weaker euro, lower interest rates are helpful. but the underlying message of the s&p downgrade is the problems haven't got away. >> asmussen, tried to rein back in his comments that rates staying low is more than 12 months, but i know he didn't mean it, but we all believe him, do we? and what are the implications of that? >> i mean, the ecb is trying to play the same game as the feds did and the bank of england are now, which is to try and manipulate market rate expectations and push yields further out on the euro curve down a bit to extend monetary easing. the problem is, the ecb's mandate is a little more rigid in terms of what they can do. they're walking a fairly tight rope in terms of how much they can guide the market on a forward basis and still stick within their mandates. >> is there a danger of the ecb losing out to fed -- losing control because of -- >> i think clearly the u.s., you know, the u.s. fed is probably still the most important central bank in the world. and europe can try and differentiate itself, but it is h

euro/dollar, 130.68. we traded in a 120/137 range for the euro/dollar over the last month. that's where we stand right now here in europe. let's check in on the markets in asia. we'll focus on india where the central bank is set to tighten liquidity. >> it was an unprecedented switch the rbi took last evening but it is pretty much in line with what a lot of emerging markets had been doing in terms of curbing the volatility they have seen in the currency. we have seen it with indonesia and brazil, so now the rupee has preceded over 10% or nearly 10% from may 2013. in terms of a couple of -- initiated last evening, the amount which the bank can borrow from the liquidity adjustment facility will be around 75,000, so the cap of the ceiling has been around 75,000. that's one of the steps which has been undertaken in order to suck up the liquidity from the system to provide lack of volatility within the inr. now if the banks cannot sort of borrow from the liquidity adjustment facility or the organized facility, then they have to move to the marginal standing facility which is bas

>> well, the euro would certainly help. remember, all these countries, not just portugal, remain fundamentally dependent on net exports. so a weak euro will help. but still you need to have also strong germany. and there the euro doesn't help you much, right? a lot of exports go directly or indirectly to germany including for portugal. so depending how well does spain, france and germany, certainly portugal will benefit from that. >> reporter: is it fair to say that the germans in particular chancellor angela merkel want the mood music to remain fairly muted coming up to the german elections, they need portugal to go very, very smoothly until that point? >> i think certainly the current german government do not want initial prices, do not want any crisis. that is critical, right. so, you know, we think that the mechanisms there, the firefighting mechanisms will be in place, should there be any reason for another crisis. there's no question about that. >> antonio, thank you so much for that. that was antonio pascual. and kar

merkel saying the euro crisis is not over yet. just be aware that merkel is speaking out of frankfurt. you see the live pictures coming through right now. >>> joining us, though, on japan, if we head back and continue our discussion on japan, is nicholas smith, the director and strategist from the clsa group. good to see you. a lot of analysis out there, a lot of people, they would argue the dpj lost the election last time around, the last election. and as opposed to having the actual ldp party winning, do you think this time when looking at what prime minister abe is up against that people are warming to abe's party on its own merits? >> absolutely, yeah. i mean on the day before the lower house elections in december, the support for the ldp was 24%. now it is 48%. so certainly the support numbers are showing a lot of support. you look at the support for the prime minister himself, and you can see that he's got 16 points higher support than koizumi did, and he's always talked the great hope for japan. so, no, i think the support

euros. why? well, you have to wait until tonight. we have an exclusive interhave with the cfo of the bank in europe in closing bell. the cfo. over to you. >> looking forward to that. thank you very much, stephane. >>> back to our conference with yanek. you've been following the telefonica numbers in particular. what stood out to you about the numbers? >> i think the -- first of all, the reduction of the debt. 14.8, telefonica, it is very important for them to make sure they put the capital, the banking sheet in order. >> it is still high if you put it up against operating cash flow. >> it is. but they're working on it. we saw in the process of selling the irish -- the irish company. some 40% of central america asset. we see that with the kpn they are -- even though it will spend cash up front, in the long run it will be beneficial for the margin. >> this is a company that should be making an acquisition now, just to flush it out for our viewers not aware of it, they had a planned acquisition

the company raising just shy of 600 million euros. rolf buch is the ceo of deutsche annington and joins us from frankfurt and first on cnbc. thank you for joining us. congratulations on the float. you finally got it away. it has been something of a rocky road, hasn't it? >> yeah. hello. yes, it has been. but in the end, i am with our former chancellor who once said it is most important what is the outcome in the end. and the outcome is great. we are now listed. >> yeah. so what happens now? >> so actually now we have the possibility of really to execute our strategy, which is using our market leadership and really getting better every day, a little bit, and then we have a big investment program of 800 million in the next five years, where we invest actually in two megatrends, first megatrend is energetic modernization, where we help our -- to reduce energy bill. and the second is very important topic in the german market, we are preparing our apartments for elderly people that they can stay in the apartment a little bit longer and the

the exception is on the euro dollar trade, where the euro is holding up .1%. we're above the 100 level in dollar yen. australian dollar is also pushing back a little bit. it has reclaimed the .92 mark but down sharply in the session. sterling dollar is also sliding on the back as well. let's check in on the markets in asia. li sixuan out of singapore with more on the trading day. we had weak hsbc numbers there. how are investors reacting across the region? >> yes, indeed. thank you, karen. in fact, weaker than expected data from china's factory did put some pressure on asian markets today. the shanghai composite finished in the red after those pmi numbers dropped to an 11-month low to 47.7. chinese midsized lenders were broadly lower. this on fears that they will be tapping the markets to raise funds. this after authorities gave the green light to china merchants bank to issue 3 billion new issues. earnings news also very much in focus. japan's micromotors maker nidek soared 10%. and apple suppliers in the region also higher thanks to a better than expected ea

and euro/dollar. >>> still to come, are the expectations for mark carney too high? we'll take a look at the man who's now taken the helm at the bank of england. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ >>> tahrir square in cairo is the epicenter of mass protests with millions calling for president morsi to stand down. violent none strademonstrations to at leas

and euro/dollar, just below 129 at the moment. that's where we stand with the markets. i mentioned egypt a short while ago. let's get the latest from cairo. yousef rejoins us. yousef what do we understand is happening at the moment? >> reporter: well, ross, the atmosphere is still very, very tense here in downtown cairo. remember that the muslim brotherhood is now calling for its protests, calling it the friday of rejection, expected to rally around noon local time right after friday of prayers, basically fighting what they're calling a full military coup and clamoring for the argument they have been holding on to, they have the legitimacy after a free and fair election in 2011. the army is on high alert, we had more violence overnight, one soldier was actually killed in the sinai peninsula and here in cairo, and outside of the city in the hometown of former president mohamed morsi. now, the army is also taking precautions here, put out a statement saying that the guarantee the right to protest peacefully but they also made it clear that it would be negative implication

and now let's have a look at euro/yen, now at 129.23 to 28, with the euro lower against the yen. investors sold a common currency overnight as major credit rating agencies downgraded italy's credit rating. they also sold the euro following reports that a european central bank policy maker expressed ideas that the bank intends to keep its interest rate low, beyond 12 months. the ecb later clarified that the comments were not meant to give any guidance to the duration of its policy, and the euro managed to recoup some of its losses. so the big focus here today and tomorrow will be the boj meeting, and we'll continue to keep track of any developments there. back to you, ai. >> all right, eileen, thanks for that update. eileen lee from the tokyo stock exchange. >>> well, will soon see another country joining the eurozone. european union finance ministers officially approved the baltic state of latvia to become the 18th nation to adopt the euro, starting next january. the ministers gave the green light to latvia at a meeting in brussels. the latvian government said the conversion rate

euro dollar now at 1.297 to 2975. and checking on euro yen at the bottom of the screen is at 130.65 to 72. the yen and euro appear to be capped ahead of the upcoming european central bank meeting thursday. and now let's see how the stronger dollar is affecting the opening levels for here in japan for wednesday, july 3rd. the nikkei is higher by 0.40% at 14,159 points. nth.r closing above 14,000 and the top ix is higher by 0.09%. investors may continue to buy shares of major exporters today, especially automakers, as u.s. vehicle sales increased more than 9% in june. sales for toyota, honda and nissan increased year on year, so we may see some support for the share prices of these companies today. and we'll continue to keep track of more developments as we go through the trading day here in japan. back to you, ai. >> thanks, elien. eileen lee at the tokyo stock exchange. >>> the bank of japans massive monetary easing has significantly raised the volume of money on the market. but loans to businesses and individuals hav

euro dollar now at 1.297 to 2975. and checking on euro yen at the bottom of the screen is at 130.65 to 72. the yen and euro appear to be capped ahead of the upcoming european central bank meeting thursday. and now let's see how the stronger dollar is affecting the opening levels for here in japan for wednesday, july 3rd. the nikkei is higher by 0.40% at 14,159 points. after closing above 14,000 points for the first time in nearly a month. and the top ix is higher by 0.09%. investors may continue to buy shares of major exporters today, especially automakers, as u.s. vehicle sales increased more than 9% in june. sales for toyota, honda and nissan increased year on year, so we may see some support for the share prices of these companies today. and we'll continue to keep track of more developments as we go through the trading day here in japan. back to you, ai. >> thanks, elien. eileen lee at the tokyo stock exchange. >>> the bank of japans massive monetary easing has significantly raised the volume of money on the market

the dollar gained ground against the euro. the euro dollar is not at 1.32559-3260. it will start to taper the monetary stimulus. we will get direction from the consumer confidence data due later today. the european central bank will hold the meeting on thursday and investors will be watching them. euro yen. a lot of focus on central banks and economic data and earnings reports. we will be keeping track of all that. >> thanks for that update from the tokyo stock exchange. the people at bmw have launched their first fully electric vehicle. they are hoping to rev up a market that has been slow to take off. the german car maker unveiled the i-3 hatch back at events in new york, beijing and london. motorists will be able to drive about 130 to 160 kilometers on a single charge. they will be be able to reach speeds of up to 150 kilometers per hour. japanese suppliers produce the carbon fiber body. it's nearly 300 kilograms lighter than bmw's hatch backs. managers will release the car in europe in november than other markets early next year. the ceo predicted to that sales

let's have a look at the euro dollar trading at 1.309-3100. we saw the dollar fall against the common currency. we see data on jobless claims and investors get more direction for that. moving on to euro yen, trading at 130.20-32, recovering from the upper 127 level on wednesday. the euro strength against the dollar is encouraging them to buy the common currency. just before the market opened, we received positive data on machinery orders for may. it's up 10.5% which is an improvement from the previous figure of minus 8.8%. we will see how it plays into the markets as well. back to you. >> thanks a lot for that. from the tokyo stock exchange. a u.s. federal court has ruled that apple conspired with five publishers to raise prices of electronic books. the district court in new york stated that apple violated antitrust laws. the presiding judge said the it giant created a mechanism and environment that enabled apple and the publishers to work together. the aim was to eliminate all competition for the ebooks. the firm will appeal the ruling. the o

let's take a look at euro/dollar. it's now at 1.3191-3192. market players bought the euro after portuguese government bond yields fell given the positive developments in the country's politics. economic currency rose to the highest level in about a month against the dollar. and last but not least, let's also take a look at euro/yen at the bottom of the screen. it's currently at 131.10-16. so like i mentioned, a pretty negative start at the moment. we'll see how these currency levels affect shares of japanese exporters today. >> sounds good. thanks a lot for that update from the tokyo stock exchange. >>> japanese trade officials are getting ready to join free trade talks for the transpacific partnership framework for the first time on tuesday. the delegates aim to find out what has been discussed and to explain japan's position to 11 other negotiating nations. the 18th round of the tpp talks began last week in malaysia and will continue through thursday. japanese representatives are expected to be allowed to participate in the discussions star

the euro is weaker against other major currencies. they are trading at 129.27-32 compared to around the same time on thursday. investors are failing the common courtesy as they maintained the interest rate low. the president also gets the outlook and the interest rates in the eurozone will remain at or below current record low levels and analysts say this signal that a recovery in the region economy is lagging. having a look at dollar-yen, the dollar is trading at 1 hadn't hadnhadn't -- 100.27-28. as the u.s. markets were closed overnight. we may continue to see limited movements in dollar yen as market place wait for the job report i mentioned earlier and we will come back later at market closing to see how japanese shares finally end the first week of july. back to you. >> thanks a lot for that. the tokyo stock exchange. japanese cosmetics maker admitted to problems in dealing with consumer complaints over skin whitening products it is recalling. company officials say we will make sure the problem never happens again. the company ha

let's move onto currency starting with euro-yen. that's compared to the 130 level at around the same time on wednesday. market player saw the euro due to the situation in portugal and finance minister both resigned. this is casting doubts over portugal's commit 789s, especially after a boring cost jumped above 8%. now, all eyes will be on the meeting later today to get more direction for the common currency. now, let's have a look at dollar yen. it is now 99.83-85 against the yen. currency investors are to remain cautious as a guide for its policymaking. well, that's all for me. back to you. >> all right, all eyes on the jobs report for friday. >>> well, a united nations report says global average temperature rose to an all-time high in the decade 2010. the decade was marked with ak semirating climate change. the report from the world meteorological climate organization was based on data from 129 nationings gathered between 2001 and 2010 >> a sharper rise in tempature suggested global warming is accelerating. these climate changes c

let's have a look at euro-yen. the euro is stronger against the yen at 130.03-08. they are boosted by the eurozone and investors will be closely watching the european meeting on thursday to hear what the president has to say about state of the economy. we may see investors continue to buy shares of japanese exporters today. >> thank you for that update. the bank of japan released the survey yesterday. it shows that many domestic manufacturers did not pass on higher costs to their customers even though businesses paid more for raw materials stemming from a weaker yen. among the respondents, buying costs for raw materials and parts for large manufacturers were at plus 24 points. the the figure for smaller makers stood at plus 35 points. both were up nine points from the previous quarterly survey. a positive reading means a larger percentage of firms mean purchasing costs went up rather than down. the figure for selling prices was at minus four points for large manufacturers and minus 12 points for smaller ones. this is due to intense price competition especially in t

in united states, intercontinental agreed to buy euro next. the japan exchange group has turned a new chapter, but challenges do lie ahead. in derivatives for instance, it's still far behind markets in china and south korea. the group needs to strengthen its competitiveness and its international presence. nhk world, tokyo stock exchange. >>> chinese economy shows further signs of cooling. the latest data suggests that the economy expanded at a slower pace for the second quarter in a row. chinese manufacturers exported fewer goods as the yuan rose against other currencies. gross domestic product was down from a rate of 7.7% in the previous quarter. >>> now for insight on what the numbers mean and what lies ahead, we spoke with a senior fellow and a specialist on the chinese economy. >> i think it's too slow for a chinese economy, because that could damage the stability of the society and second poupt here with just concern about jobless rate could end up going up sharply. so i think that chinese government need to implement some stimulus policy

checking on euro yen at the bottom of the cream is at 129.24-34. it's set to rise against most major currencies. as both central banks are leaning towards loose policies. the bank of japan's governor gets upbeat comments on the japanese economy aftermarket closed on thursday. this may pp investor sentiment hoar. the banking giant and wells fargo later in the u.s. and we will see how that plays into the markets here in japan. >> sorry we couldn't get the numbers up for you, but it is a mixed picture. from the tokyo stock exchange. free trade negotiates on are urchd the transpacific partnership will get a briefing later this month. the country will be the newest member to the trade group. nations engaged in the t approximatpp will be engaged and they will only be allowed to join from the 23rd when it gets all the necessary approval. a special session will be provided so japanese delegates can catch up on current topics. they will send 100 delegates and they they aim to fully understand so japan's position is reflected in the these records are being m

let's have a look at the euro yen now, bottom of the screen, 131.55 to 60. gaining a touch against the dollar as well. but against the yen, that's compared to 131.26 levels, when tokyo stocks closed here yesterday. so the euro is stronger. now, still earnings and data to come out in the u.s. and in japan in particular, cannon kicking things off here is going to release its earnings later today on wednesday. but let's not forget, of course, the transpacific partnership, free trade talks. japan, japanese participation and the negotiations was formally approved on tuesday. a lot of focus on that, and it could affect share prices on japanese sectors such as autos. i'll track some of those, as well. back to you, ai. >> ramin, thanks for that update. ramin mill guard from the tokyo stock exchange. tokyo markets are in the red early this morning. but tokyo is not the only market open. so i'll leave you with a check on some others. >>> members of tokyo's olympic big committee are doing everything they can to win the 2020 summer olympics and paraolympics. they're ask

>> some activity in the dollar/yen and the euro/dollar as well. let's look at some of the pairs. the dollar actually rose a touch following the fed chief's words, currently 99.51-56 and the euro/yen right now at 130.58-68, having fallen a touch against the dollar, but holding relatively steady there against the yen. now, more earnings are going to be coming out from the u.s. with tech giants google and microsoft among some of the bigger names and also from the financial side, we got morgan stanley and that's going to be a big focus of course after bank of america came out and showed strong earnings highlighting a little bit of a turnaround in the banking sector in the u.s.. so it's going to be interesting how related sectors here perform today as well. but both the topix and the nikkei trading in the positive. back to you, ai. >> ramin thanks for that update, ramin mellegard from the tokyo stock exchange. >>> tokyo's not the only market open this hour. i'll leave with you a check on the kospi and some others. >>> protesters have hit the streets of a town in eastern india, demandi

the euro/yen the euro is weaker against the yen compared to this time yesterday when it was at the 132 yen levels. you can see 131.61-64. it has gained against the dollar, its highest since the third week of june due to strong german economic confidence data, so quite a bit of volatility in the currency and stock markets. ai? >> and ramin, regarding earnings, major companies in japan have begun to report. tell us more about that. >> yeah, we're in full swing for earnings reports here, of course, and numbers came out for nissan after the bell yesterday, first of the major automakers to release numbers and the three months to the end of june. nissan showed a net profit gain of 14% on a weaker yen and strong u.s. sales. however, sluggish sales in china and europe led the company executives to maintain its profit forecast. now on friday, you may want to look out later today when markets close, nomura holdings japan's biggest brokerage and next week toyota and honda it's expected they'll show some improvement as well. big focus on automakers and high tech, consumer electronics and heavy ind

british authorities said that nyse euro next will take over libel. the move came after three major financial institutions including barclays were given a huge fine last year for rigging the rate through false reporting. they say that handing over libel's control will tighten rules on the bench mark. also this will allow the calculation of the rate to be based not on reports from banks, but on rates actually used. it's believed that libel transactions worldwide amount to $300 trillion. >>> new faces are around the table at the world trade organization. and already they're facing a trade dispute with their counterparts from the european union. eu delegates have criticized the russians for what's called a recycling fee on imported vehicles. they say the russians are overcharging to protect domestic car makers. they say the maximum fee for new cars is $3,400. for vehicles older than three it has caused imports from the eu to fall by 7% while russia's domestic market expands. >> we actually have such recycling fees here in europe. but the fact is, russia

one is the merger between new york and the euro in 2007. others have initiated since then, but many turned out to be unsuccessful. the u.s., intercontinental exchange agreed to by and the hong kong acquired the lopd an metal exchange. the challenges lie ahead in derivatives trading and it's still far behind marks like china as well as south korea and the group really needs to try very hard to strengthen the competitiveness and the international presence. that will be a big focus. back to you. >> on to other headlines, the world's second largest economy continues to lose steam even as new chinese leaders try to reignite growth. the slow down has fuelled concerns about the future of the country's economy and global leaders are watching to see how the new leadership will engineer a turn around. china's national bureau of statistics reported that gross domestic product expanded 7.5% between april and june. that's down from 7.7% growth in the previous three months. the single digit growth set in after the third quarter of 2010. and for a closer

the euro/yen also having broken above the 132 yen level, 132.34-39, hitting a fresh two-month high boosted by stronger than expected manufacturing data in germany and france. now the focus is on the business german may i say, may i add actually the german business sentiment later today and that may add further direction. following on with earnings, yahoo! japan and nissan will be coming out with earnings after the bell today, so we're in full swing here with earnings as well. back to you, ai. >> keeping you busy ramin. thank you for the update, ramin mellegard, from the tokyo stock exchange. >>> japanese delegates to the transpacific partnership free trade talks are busy catching up on details of the ongoing negotiations in malaysia. the japanese officials joined the negotiations from tuesday. this round of talks has been going on between the 11 other member nations since last week. chief negotiators from the other nations opened a special session on wednesday to help japan catch up. japan's chief negotiator koji tsuruoka and several others were briefed about the status of the talks in sev

euro/yen at the bottom of the screen is at 129.95-99. and we have more earnings reports from companies like japan airlines, toshiba and honda later today and we'll keep track of that. for now, a pretty negative stock for the trading session today. back to you, ai. >> thanks for the update from the tokyo stock exchange. as you know, investors are waiting for two announcements from the u.s., gdp and the federal reserve's decision on monetary policy. now, david stockton is a former director at the fed and senior fellow at the peterson institute of international economics. we asked him for his views. >> first of all, i would like to ask you about the outlook of the gdp coming up. what is your prospect? >> i think we're likely to see a weak second quarter figure, somewhere probably at 1% or below at an annualized rate. and that comes on the heels of 1.5% in the first so the economy in the first half has certainly underperformed its potential. >> reporter: what do we expect from the next monetary meeting coming up on the same day. do you think

taking a look at the euro/yen, $/yen at 100 to .04 to .05. the governor likes what he sees. karodu says the program of pumping money into the system is having a positive impact and will pull the country out of deflation. he spoke at a meeting of the bank's 32 branch managers. he says the economy is picking up. he expects domestic demand to grow as a result of the bank's monetary easing measures and the government's stimulus efforts. the boj chief says the economy is heading for a moderate recovery as countries outside japan also post growth. he says the central bank's bond buying program has let businesses and consumers to expect prices will rise. >>> tourism officials say more and more travelers are visiting japan. more business leaders have started taking notice. they're offering goods and services that meet the needs of muslims. officials at travel organizations that's trying to attract tourists from islamic regions hosted an event at a hotel near tokyo. about 200 people took part. the guest rooms are stocked with some important items for worship. they have prayer rugs on

portugal actually has been almost dormant in this euro mass -- mess. overnight the 10-year bond was about 8%, which is really worrisome. it settled at i believe around 7.4%. as you know, bond players are the ones determining the fate of the country. in terms of the spill effect, i do not see a major one. obviously portugal is a very tiny country. it needs, i would say, $5 billion to $10 billion of additional aid to help us economy. whenever things like that happen, whenever the yield on a 10-year jumped like that, there is definitely nervousness in the the spillover effect is there. >> i spoke to a gentleman in the last hour in lisbon who said, i would like to get an answer on how you grow an economy and make things better when people are out on the reeds and do not have jobs, do not have food. there is a level of anger there that is help will -- palpable. he does have a point, doesn't he? >> he does. similar to the united dates, unfortunately politicians and even private sector is relying on a few people in the central bank to determine the fate of th