a two day meeting. they said they are going to adopt a target for long term interest rates in an effort to meet their inflation goal as soon as possible. they say they will abandon their base money target and instead set what they call yield curve control. that involves central bank purrs of bonds to keep egbs at current levels of 0%. they will purchase them in line with the current pace of about $780 billion worth. but they also note that the pace of increase in the monetary base may fluctuate in the short run depending on market conditions. in the short term the boj will apply a negative-interest-rate. the policymakers decided to abandon the current two year time frame for achieving their
2% inflation goal. they now say they are aiming to hit at the earliest possible time. boj policymakers first set the target in 2013 but they have continued to fail to meet it and have been pushing back the date. policymakers carried out a comprehensive assessment of the bank's easing steps including negative rates. they need to adopt mers that offer greater flexibility and more sustainable. excessive declines in long term interest rates lead to lower returns on pension products. this limits the number of pension products companies are obliterated to pay. the direct impact on overall activity is unlikely to be substantial. they noted, however, these outcomes to negatively affect the economy by deteriorating
consumer sentiment a possibility that required careful monitoring. officials acknowledge a further rise in expectations of inflation is uncertain and may take time. boj governor emphasized that the new mers are necessary to strengthen the current framework of monetary easing. >> translator: it will allow the bank to respond. the boj can respond flexibly according to economic changes, prices and financial situation. >> kuroda alleged another aim is to prevent lower interest rates to effect consumer sentiment. for the latest on the boj decision we have a special guest in our studio.
a bank of japan executive director until may and currently an executive at miso research. boj trying to win back confidence among investors, traders, market players who have been questioning the boj central policy decisions of late. what's your take on the policy changes made today? >> yeah. i think this was generally productive and constructive and also that the market will come to this decision. >> but we're hearing some new terms here about yields. >> yes. the problem was people considered too much flattening of yield curve means long term interest rate was too low. this could actually have a detriment on the bank's profitability and mediation and
also people who have a funding the insurance company may also suffer from long term yield it's very, very low. actually this green line was very low. after ten years minus 0.2. now the current yield curve is around here and boj decided today to generally maintain today's yield curve going forward which means that they generally say don't worry about it, this will never happen. so actually this gives more confidence to pensioners and older people and generally households and banking sector. so take out any possible side effects. i think it is constructive. >> so there's some relief among people who have been saving for
long term. now the boj has abandoned setting a certain date for achieving their 2% inflation date target. does this mean that the boj policy aren't they kind of proving that the policy hasn't worked? >> actual ly, after the headwins and settled down, but the expectation of the mechanism. people are not forward looking. people are backward looking expectation. that's one reason the boj said the reason why we don't have inflation yet. so boj come up with stronger commitment to 2% inflation from now on but there's great uncertainty how expectation will
form l formulate. uncertainty is the key word here and given the uncertainty it's sensible for the boj to postpone, possibly postpone exact date of the 2%. >> they can act more flexibly so it's a good thing they abandoned that target. >> they have much more flexibility and freedom when they have to act in terms of the additional easing because until today market people actually keep asking boj to stimulate more. but now flexibility means more freedom to think about when that is achieved. boj can get out of the pressure of the market to come up with it. >> some negative aspects you saw today? >> actually not so much negative but comprehensive assessment. one piece that is missing is the
structural reform. the reason in my view why interest rates are still low people don't expect much stronger economy in the future which means firms are not willing to raise so much. stronger economy is one thing very immediate to create more pressure. maybe boj could have emphasizez that. >> real quickly, what's going to happen next in november? >> well, that's a hard question. unpredictabili unpredictability. the economy doesn't justify any further cut in the interest rate or additional easing. >> thank you very much for coming in today. >> thank you. checking the market reaction to the boj decision, tokyo stocks rose while the yen lost strength for the details ramin mellegard has the details from the tokyo stock exchange. >> reporter: markets have been anticipating this policy meeting
and the outcome saw major gains across many shares and sectors. the nikkei 22 a rose 1.91% to finish at 16,807. the broader topix soared 2.71%. the yield on the ten year jgb rose over 03% for the first time since march. the dollar gained ground against the yen. analysts say currency traders could benefit from higher yields on long term government bonds. back to stocks and following a calm morning session the boj decision brought about a strong shift in sentiment. financials rose substantially including banks, insurers and brokerages. the lack of deeper rate cuts from the boj was seen as good news for many of these firms. mitsubishi financial group,
dai-ichi life insurance both grew 7% and nomura holdings rose. there was a bounce in exporters. pioneer, honda, panasonic all saw hefty gains. ramin mellegard, tokyo stock exchange. moving on to other markets in asia. upper momentum from japan's spilled over into the region. kospi rose for a fourth day up by .5%. sidney added .7%. hong kong responded 23,669. highest finish in two weeks. gains in japan's financial firms encouraged investors to pick up banking shares. the boj's decision had limited impact on mainland china. the shanghai composited edged up by.10%. chinese premier said the country's economy is showing a steady upward trend.
executives at china's major steel makers say they are thinking about absorbing a smaller domestic competitor. it would create the world's second largest producer of steel. executives say they might take over wood iron and steel group both state-owned. chinese steel makers account for hahalf of global output. a pillar of the chinese economic reform is to encourage consolidation in the steel industry and lower production capacity. here's a look at some of the other businesess stories we're following. japan's trade balance fell into the red for the first time in three months. finance ministry officials say the deficit came in at $184 million for august. the value of exports was down 9.6% posting 11th straight month of decline. stronger yen and summer holiday
period pushed the number down. train makers are showcasing their latest technologies in berlin at the world's largest trade fair of its kind. nearly 3,000 companies are taking part. hitachi unveiled a new system. competition in the global railway market is intensifyfyin as demand for train cars is expected to grow in both emerging and industrialized countries. you can catch our report again online together with the full transcript. look for nhk world and business wrap. thanks very much for joining me on this business corner. i'll leave you with the markets.
the man suspected of planting bombs in new york and new jersey reportedly had a notebook in which he expressed anger over u.s. military actions. ahmed khan rahami is a 28-year-old u.s. citizen of afghghan descent.t. he was arresesd on nday. rahami allegedlyly set off the bomb in manttttan tha injured 31 people. federal prosecuts haha indicted himn tenen charges inclcludg the use ofeaponsf massestructi. the criminal complaint against rahami cites exkrerptexkrerpts
carrying. notebooks criticizes what it calls the continueded slaughtery the u.s.s. in peoplple in afghanistan, syria and palestine. one passage said the sound of bombs will be heard in the streets and calls for death to oppression. the fbi investigated rahami two years ago but did not find any connections between him and terrorist groups. world leaders are taking the stage at the united nations general assembly in new york. some are making their debut before the world body, others are saying farewell. earlier our colleague catherine kobayashi spoke to nhk world's kozue hamamoto who's covering the event t for us. she asked her about the highlights of the first day. >> reporter: two leaders spoke the last time at the general debate. secretary-general ban ki-moon steps down at the end of the year after a ten-year termrm. he lamented that the u.n. had continuously failed to confront pressing issues.
>> far too often i have seen widely supported proposals blocked in the name of consensus, by a few. or sometimes even just one country. time and again, i have seen essential action and good ideas blocked in the security council. >> in his eighth and last address to the general assembly, president obama emphasized his goal of a world without nuclear weapons. the u.s. submitted a draft resolution to the security council, urgining member stateso refrain from nuclear tests just weeks before the general assembly. the vote may come as early as this week. >> when north korea tests a bomb, that endangers all of us. and any country that breaks this basic bargain must face consequences. and those nations with these weapons, like the united states, have a unique responsibility to pursue the path of reducing our stockpiles.
and reaffirming basic norms like the commitment to never test them again. >> he also stressed the importance of rule of law and international cooperation, referring to russia and china. >> if russia continues to interfere in the affairs of its neighbors, it may be popular at home, it may fuel nationalist fervor for a time. but over time it's also going to diminish its stature and make its borders less secure. in the south china sea, a peaceful resolution of disputes offered by law will mean far greater stability than the militarization of a few rocks and reefs. >> obama seemed confident of his achievements during his eight-year tenure, but he also expressed hope for his successor to follow his approach in international affairs. >> kozue, what were the other countries' agendas? >> british prime mininister theresesa may made her debut at the general assembly.
she said that the uk will remain committed to the international community even after its brexit. >> for when the british people voted to leave the eu, they did not vote to turn inwards, or walk away from any of our partners in the world. so this is not the time to turn away from our united nations. it is the time to turn towards it. >> turkey's president urged european nations to help tackle the refugee issues his country faces. >> translator: i would like to call out to all of my european friends who believe that syrian refugees are a threat and a clear danger for them, the barbed wires and the high walls will never provide you with the safety and security and peace of mind that you seek out for. >> on wednesday, japan's prime minister shinzo abe and the chinese premier among others will address the general assembly.
>> that was nhk world's kozue hamamoto in new york with the u.n. coverage. we'll have more coverage from new york throughout the week. as we heard in the report, the refugee crisis is high on the agenda. world leaders have pledged to take in 360,000 refugees that is double the current figure. the promise came tuesday at a leaders summit on refugees headed by president obama. representatives from 52 countries and organizations were in attendance. >> this crisis is one of the most urgent tests of our time. our capacity for collective action. >> obama said so many of the refugees come from just three countries -- afghanistan, somalia, and syria. he calls the situation a crisis of epic proportions that tested international order and humanity. >> we all know that what is happening in syria, for example, is unacceptable.
and we are not as unified as we should be in pushing to make it stop. > japanese prime minister ab has pledged to contribute $100 million to help with the crisis. >> translator: all countries and organizations should play to their strengths and complement each other in tackling the problem. >> abe said japan will also provide educational support and vocational training for about 1 million people. more than 65 million people around the globe have fled their homes because of war or persecution. that is the largest number since world war ii. scientists in europe are turning to a very old form of air travel to create what they hope is a better way to rescue migrants and refugees at sea. researchers test launched a
zeplin-like air ship. it's equipped with devices including sensors and gps to detect people in the open water. they wanted to make sure it would fly smoothly and transmit data to the ground. >> translator: it's basically an attempt to combine a relatively new platform with old technologies. to come up with something efficient, reliable, low cost, and easily manageable for maritime surveillance. >> the international organization for migration says about 300,000 refugees and migrants have tried to reach europe by boat this year. the number has dropped since last year but fatalities are on the rise with more than 3,000 estimated to be dead or missing. japanese cabinet ministers say they will decide on fate of a prototype reactor by the end of the year. it has been plagued by safety
problems for decades. they say they will consider the option of scrapping the facicility. >> translator: we have reached a decision in totoday's meeting tt wewe will conductct a drastic rw of the modular reactor project including the opening of decommissioning it. >> anyone stares also agreed to maintain japan's nuclear fuel recycling policy. fast breeder reactors aree designed to generate electricity while producing more fuel than they consume. the monju reactor was meant to play a key role to recycle japan's nuclear fuel. spent fuel from conventional nuclear power plants containts plutonium which can used as fuel. the reactor runs on uranium pollute nom m
plutonium. it has been in operation for 250 days since its trial operation started in 1994. in 1995 a leak of sodium used to cool the reactor led to operations being halted. in 2010 the first test runs in 14 years began. three months later a piece of equipment weighing over three tons fell into the reactor. due to the seeeemingly endless problems the reactor has never gone into full operation. last move to n nuclear regulato recommended the government designate a new operator to ensure safety but relative agencieses and the private-sect haven't reached a conclusion partly because it costs $200 every year to maintain the facility. japan and france are cooperating in studying the fast reactor technology in france's project.
>> nhk "newsline" comes to you live from tokyo. many parts of japan are reeling from a series of recent storms. however on the other side of the pacific substantial rainfall is in dire neeeed. >> yes, there are 15 large wildfires occurring in the westerern united states, and tw of them are happppening in california. the one in big sur has become the e costliest wildldfire in u history, and the other one in the south is threatening a base. we have some video coming out of santa barbara county. a a wildfire has bururned more 1,800 hectares since saturday, and caused the base to lose power and forcing information use generators. no structures are threatened, but the fire is spreading without any containment. california has been contending
with dry weather over the past five years, and the whole of the state is under drought at this moment. in fact, 20 of the state is under exceptional drought. so improve the situation this year, it definitelneneeds raini and also cleler tempereratures. however, no signgnificant rain expected for t f foresabable future and temperatures s expecd toto rise as we go into next wee so conditions will not be -- will remain quite bad. meanwhile, heavy rain is expected for the eastern portionsf f the unitited states and also the u.s. southwest because the moisture coming in from the remnants of a tropical storm will cause rainfall over there. meanwhile, significantaiain is expected once again for minnesota and also wisconsin. more rain is expected at leaeas for the next 72 hours. meanwhile, more rain is expected for the eastern seaboard once again. that will raise the potential for flooding and landslides even further across the southeast coast. temperatures are going to be on
the high side once again in los angeles. 28 degrees for the high on wednesday. as we go into next week, things will be heating up once again. temperatures expected to be over 30 degrees starting saturday. but cooler temperatures can be found across the pacific northwest. 18 for the high in seattle and with an abundance of sunshine quite hot for this time of the year in chicago. 31 for the high on your hump day. now let's go to asia. despite the slow start to the typhoon season, there have been 16 named storm in the western pacific so far of the year. we are looking at a new system that may form within the next 24 hours. this system is a tropical depression at this moment, but will likely become a tropical storm in the next 24 hours. high pressure is controllingng e weather over the continent, but rain is affectg g parts ofof southwesestern china and rain i expected to spread up towards the north of japan. we will see rainy weather once
again including tokyo and kyushu where heavy rainin fell yesterd. temperatures are going to be 22 in tokyo. starting friday, it's going to be warming up. 28 degrees for the high in tokyo. according to the japan agency, starting saturday going into early october, we will see exceptionalllly warm w weather. so don't put away your summer clothes yet. meanwhile, across europe, cooler temperatures can be found across many portions of europe. thunderstorms are expected once again in italy, the peninsula on your tuesday. temperatures are in the teens in many places. cluing moscow and warsaw. the mild weather will continue across the west. all right. here's the extended forecast.
♪ host: hello, this is "france 24." time now for 60 minutes live around the world. these are the headlines. yorkuspect in the new bombing last weekend is charged with four offenses, including using weapons of mass destruction. the u.s. says russia is behind the attack on an aid convoy in syria, claim moscow firmly denies. two days of classes in the democratic republic of congo leave close to 45 peopled.