. rishaad: thank you very much for that. looking at the start of the trading day in shanghai, and the start of the week in hong kong after a public holiday, moving slightly up. , little moreures conviction. not very much. but we do have at the moment, the way down in the auction period. sport-utility vehicle under the link brand in china. the biggest loser is china mengdu. there we go. indo gases is expected to resume trading in the tuesday session. this is china's biggest maker of industrial gases. it has been and broiled in a boardroom battle over management control that started earlier this year. last month, it looked for more time to complete the audit of its 2016 earnings. it also warned of impairments and other adjustments that could affect the cap. following to a net loss from a profit of 535 million yuan the year before. coming up, counting down to the release of april rba. for thatre in sydney breaking news. this is bloomberg. ♪ rishaad: that is the scene after 9:29 a.m. counting down to the start of the trading day in hong kong. fromrishaad salamat coming bloomberg's a

shanghai. we are live with some of the industry's top players. well, violent moves on the markets, the sterling after that surprise call for a snap general election on thursday, june 8, hoping to shore up a position in the conservative party and her personal position by getting a mandate. she has never won an election to the office of prime minister. part of the price action was to hated by people getting out of sterling. week of news, but shows you the positions they were building up. not as much as october, but a significant amount of short positions on wound to the benefit of the pound as it takes its losses against the dollar to referendume june 23 which has sent the pound the tumbling. haidi: that's right. it comes tones when cable, a six-month high. we are heading into this parliamentary vote to allow that snap election to take place in the first week of june. what is interesting is we will see a look at that chart to that obtained, but i wonder how long this will take for this ground to become crowded, if you them,deutsche bank among abandoning a two-year bear call on sterling.

. plantory is talk about its on shanghai airlines. will it be splitting it up for selling it? the company says it has no plan to sell shanghai airlines. aia,ing gears, earnings, world's second-biggest life ensure to that is not very exciting, is it? look at that. billion, a key metric of course for the insurers, up 39%, beating estimates. -- stors not tried kwiechow moutai. david: i don't remember. that is the problem. you don't remember what happened when you take it. proof, so 50%06 alcohol. kwiechow moutai is the chinese super fiery distiller of growth andofit income growth and revenue beat. diageooutpaced its rival , worth $88 billion, and shares are up or did percent in shanghai, a record high. we are expecting more momentum ahead of the peak holiday season, people giving bottles of the stuff for holiday. more to come. this is bloomberg. ♪ ♪ it is 9:29 in the morning in hong kong. the openunting down to of markets in the asia-pacific. that is just across the harbor, which houses the highest trading floor in the world, the 90th or 91st floor. if i get that wrong, correct me. , not

overall number. we are still waiting for the price rises. details from beijing, shanghai, and shenzhen. beijing, house prices of 22 point 5% in april, year on year. for april, house prices in shanghai of 14.2% year on year for april. shenzhen, house prices for april up 6.7% year on year. monthly basis, house prices unchanged, so cooling in shenzhen, but beijing strong indeed. the overall number, prices in china in april rose in 58 cities of the 70 monitored, down from the 62 we saw in march. really that march number surprised many, much stronger. so prices rising and slightly fewer cities than the month before, but still showing relative strength. has been number explained because people said a rush as people sought to block him before more cap's were put into place. cities, the major cities come have put in regulations to make it more difficult, bigger deposits, harder to buy a second home. if you don't live in the city or are from the city, it becomes more difficult as well. on the flipside in the smaller cities and towns in the heartland of china, they are trying to move so

-hong we had thet after shanghai-hong kong connect. supposed to give foreign institutional funds exposure to the booming technology space and the stocks listed there, as a opposed to shanghai. if you want to look at how the the dollar, this is an outflow story. it is not that attractive to foreigners investing into chinese equity markets. global funds have sold a net 3.5 one billion yuan of mainland shares through the shanghai link this month already, even as the shanghai composite moves into bull market territory. as you can see, the correlation between the losses steepening on that hong kong-shanghai link in correlation with the -- rishaad: you can see the flattening out of this line here. indeed, we have seen the yuan weekend. is foreign interest waning? we could be making money out of this? there are several factors at play. valuations are a concern as well. the shanshan feng composite index trades at 45 times projected earnings or current earnings, three times hong kong, 49 percent more than the nasdaq, double what shanghai is doing, so some say it is overbought territory. t

have seen is this calm down for major cities. beijing and shanghai seeing quite a sharp slowdown when it comes to stocks in these major cities. moving quickly to quell what was seen as a property bubble. there were concerns of housing affordability and speculative line. we have seen the slowdown in prices. bit moreing a little moderate because these measures have not been as severe. a key point when it comes to china's economic health because we do know that the property sector there affects more than 40 other sectors, everything from cement to furniture being affected by these numbers. in about 25 minutes, we should have those numbers. been talking about the surge in volatility over data in the u.s., concerns about policy as well as that terror attack in spain. we are seeing a downside in the asian session now. >> as you said earlier, asian stocks are playing follow the leader. the drop in the s&p 500, one .5%, the second-biggest drop in 2017. -- 1.5%, the second-biggest drop in 2017. take a look at futures. markets might be able to take these catalysts in stride. take a big picture

believes china hopes to use the expo in shanghai to diversify away from the u.s. she joins us from washington, d.c.. let's start with you were -- with your views and what we have heard from washington, d.c. has anything he said -- >> not really. china is ready to open. china is ready to help other countries. china wants to import a lot of people. sign a to go ahead and special agreement with e.u.. he said a lot of great things. there was nothing that was very concrete. there was nothing that was new to kickoff the import event for china. he talked about the need and the desire to cut tariffs goodsr and import more from foreign markets. are there beneficiaries that are going to likely be positioned for that? we have seen over the last few years around the edges, tariffs reduced on some products. he you expect that will continue, and are there going to be beneficiaries beyond the u.s.? --likely, that will return that will continue. one of the biggest audiences for him is that you -- is the e.u. particularly, for emmanuel macron, who is currently visiting. that is what he would like t

missing a wide gap particularly toward the end of the chart, versus the shanghai note. in terms of what this means, the significance we heard earlier in capital from these management, she said it was significant not just for china but for foreign investors. >> it is very symbolic. i think it will be a big wake-up call for the industry, because let's not forget even if we're in years, we are hardly rocking the boat. we are talking about a drop in the fee for chinese markets. in the sea for attorneyr chinese markets. reporter: morgan stanley says the immediate impact may be relatively minimal. the decision goes china's way, you might see a push up in the market around a half or 1%. we look at the decision later today, but it wouldn't be initiated until next year, hence the relatively low market moves that morgan stanley will be exit -- expecting from this. this is the early stages. bloomberg intelligence says further down the line you could see interest in around 400 billion u.s. dollars from foreign investors. haidi: it is symbolic at this stage. how does it tie into china's overall refo

premarket premarketer in that auction. futures indicating a rise too. shanghai has been under caution, but at the same time looking elsewhere and the msci china index, which has outperformed, as indeed h-shares in hong kong. we are looking more at that. that is what is going on at the moment. we also have a lot of money coming into emerging markets. sophie: the shanghai composite closed at an october low as regulators are intensifying their crackdown. seeing interest in unloved chinese banking stocks. #8139, chinese banks on the mainland have been underperforming as mounting sufficient to take action. up, that has picks provided some support. #7150. what we have seen is with that first quarter performance by gbank, they reported better numbers and the bad loan ratio fell. we have the chart now. chinese big for banks and turns of market cap, it has been steady. in 2011, out of favor but now we are seeing a pick up here. has raised them to .utperform, but concerns remain a rather important data point. rishaad: we have to get analysis from deloitte on market direction. we had to

is the further integration of hong kong and mainland markets. shanghai-hong the kong connect launch. this is hopefully introducing institutional investors to the new economy in china, consumer related to high, health care stocks, about 40% listed in the shenzhen are consumer related. further hoping to professionalize the equity markets in china with more foreign institutional investors who perhaps have started to shy staterom those loaded owned enterprises, the old economy stocks in shanghai, so i will toss it back to you because we will get some dignitaries talking in just a few minutes, and a few of my colleagues in the press corps are giving me the evil eye as i'm speaking over the dignitaries. haidi: we will let you go so you don't get into more trouble there. we will be catching up with him later. still to come -- rishaad: the long wait for the shenzhen-hong kong connect, we find out what investors should be looking for. goldman sachs on how the outcome on asia will change with the italian referendum. this is bloomberg. ♪ rishaad: you are back with "bloomberg markets: asia" t

to switch the bullish stance. while the shanghai, did drop after the second quarter gdp , we do have the msci china and at, the line in blue, maintaining its resilience. this was backed by sturdy earnings. earnings prospects are weighing in when comes to performance of chinese stocks. i want to end with a check on noble shares in singapore. this after the commodity traders think the most in two months after monday. that happened in the last half hour of singapore training -- trading. rishaad: thank you. let's find out going on with first word news. republicans plan to --eal and obamacare repealing replace obamacare, but it looks fatally wounded. criticized by another senator for time republicans that long-term cuts to medicaid demanded that conservatives would likely be unlikely ever to take effect. mcconnell was accused of a breach of trust. plans are said to be under threat. sources say funding for projects could be denied with the conglomerate accused of breaching the subject in .overseas investments six purchases i said to have violated the world's best rules. -- have violated th

shanghai composite. we are 30 minutes away from the open in china and hong kong. singapore and malaysia have come online. taiwan is on holiday. we saw the msci asia-pacific index has the best week since mid-july. to thecounting down reopen. today we have south korea, japan and taiwan all closed. australia is the leader. report coming in from mining players. not that surprising when you have the commodities space. percent.steel up 1 we see a bounce in aluminum and the iron ore contract. singapore market fairly flat on the malaysia index. have a look at the new zealand market and the new zealand dollar. there is uncertainty th as to is going to form government. both parties could form a viable coalition. kiwi formen the against the dollar. just want to show you this chart. bit of interest come through the australian milk provider a2 milk. sydney andd in both new zealand. it is the south pacific's top year and goldman sachs is expecting an 11% advance. let's look at how some of these market movers are faring. a2 milk in sydney. we look at those stocks we are watching. a2 milk of five 1.4%.

boeing are seen as possible targets. and oil marking a milestone with a new futures market in shanghai. we assess the challenge to wti and brent. in hong kong, i'm rishaad salamat. haidi: in sydney, i'm haidi lun. the new pboc governor pledges further reforms. he says the economy can withstand external threats. this is bloomberg "markets: rishaad: futures in shanghai, going to look at the pricing to see how that is going, prices omicron rmb and dollars as well. it is a selloff again. we are talking trade and tensions. haidi: the oil futures debut in china, probably the only milestone omicron a positive sense that we will be talking about today as the rest of the markets are significantly risk off. last week ending by close to 6%, the biggest decline in close to two years. looking at u.s. futures, we are flattening out a little bit, so maybe this is the worst of it. let's get to sophie with a look at the damage so far. 30 minutes from the open in china and hong kong. watching the oil futures trading in shanghai for the first time today. 20 five years it has taken policymakers to get tha

into china. the shanghai market. averaged around $36 million a day. yuan.illion small compared to the expectations we got. the news we are getting now is traders make it additional days to trade into shanghai. because of the holidays, the difference between mainland holidays and hong kong, a lot of traders could not get into the markets. we are hearing they are looking into arrangements to keep the northbound link in shanghai and shenzhen open. to 32 week days of the year. they are trying to improve these flows into china. rishaad: thank you for that. word take the first headlines. in central paris, it has been shotd off after a gunman three police officers, killing one and wounding the others. counterterrorism investigators are at the scene. the attacker seems to have been alone. the area has been cleared. metro stations shut down. ors in chinaatio will consider impacts as they introduce new rules and shadow beckoning. -- thinking. bloomberg reported in february the pboc was drafting new rules. shares jumping in sydney. the austrian government approving the $5.6 billion takeover

bloomberg markets . we are minutes away from the start of trading in hong kong and shanghai. hong kong futures looking like this, up 9/10 of 1%. coming back from a holiday. sentimentme positive filtering through from wall street as we saw gains across the board. gold seeing some downward pressure, down a quarter of a percent. the biggest weekly drop in more than three years. shares in samsung taking another hit at the moment. down by other 4%. companies asking partners to stop selling the galaxy note 7. urging users to power down and store the device. stope advice is for you to using the device whether it is the original device or a replacement device. stop using them on planes as well. retail partners around the world to stop selling and exchanging these. t-mobile,en at&t, carriers in the u.s. will stop selling the note 7. yesterday, samsung met with the state run south korean agency for technology and standards and they confirmed the possibility of a new defect with the note 7. ofleast five new incidences catching fire are being investigated in the u.s. called a recall at this time.

ministers meet in shanghai. this is bloomberg. ♪ rishaad: you are back with "bloomberg markets: asia." i am rishaad salamat in hong kong. haidi: i'm haidi lun in sydney. a quick check of the latest business headlines. japan airline shares are surging in early trading. income rose 33% of the last billion.to $100.776 rishaad: panasonic out with earnings, pretty much in line with the thinking. they were looking generally for a forecast of $767 million. pretty much bang on. panasonic maintaining the forecast seeing growth in the auto related is this mrs. is increasing profits.let's at the bloomberg data. surging by the most in more than two months. shares are recovering somewhat after plunging more than 7% on monday as its results were released. the food and flavorings company says first net quarter income came in at $146 million, an increase of 18%. they did not change any of their forecast. rishaad: trade ministers and delegates gathering at shanghai amid today, talks coming rising trade spats and border tensions between china and india. let's look at what has been going on with investing in

counting down to the opening of trade in hong kong, shanghai, shenzhen. it is a beautiful sunny day after all that rain in hong kong i am haidi lun in sydney. they will be joining a mix to session. central bank activities, fed speak, also the opec meeting in vienna. the markets have priced in a nine-month extension for the deal, but take a look at this chart, in terms of the impact of any curb if it is extended into the rest of the year and next year. #8760, this is a historical chart that tracks the impact of opec's output cuts in comparison to the impact when it comes to prices. the last cut, you can see just how much more dramatic that cut was when you saw that correlating elevation when it comes to prices. the fact that even if opec comes through with the extension, it is not the shock needed to change the dynamics of the oil markets. it depends on compliance with producers like iran, which historically has not been compliant, and on the other side, u.s. production continuing to potentially undermine efforts of opec. let's get over to hsery. we are seeing in hong kong, another day of

kong and shanghai, the open in kuala lumpur, taipei, and singapore. here is sophie kamaruddin. sophie: a number of markets coming online, checking that space. we are seeing continued gains on the asx and new zealand, and the kospi reversing gains made in the morning. space,look at the data what's happening with dollar strength, resuming strength following the friday jobs report. note, the yield of seven basis points friday. bill gross is expecting a breakthrough to the 2.6% level, pushing it into bear market territory, gross saying the treasuries are at an inflection point. gold edging higher after falling in the wake of the u.s. payroll data, gaining demand for alternative assets, and equities soft in. the robust case for u.s. interest rates going higher could make bullion less appealing. and continued outflows in gold-backed funds. oil halting gains below $54. natural gas oil and explores increase of drilling activity to a one-year high, offsetting saudi arabia's output cuts. , thet word on the yuan pboc pledge to guard the financial system and guide the yuan. we will have t

taking a look at hank on, shanghai -- hank on -- hong kong and shanghai markets. sophie: i am an observer, so a lot of games in my life. taking a look at equity markets, chinese large caps higher for a third session. the hang seng swinging at the open, now gaining ground. i.t., energy, financial stocks leading gains. taking a closer look at shanghai, the benchmark pricing for a sixth straight day, consumers stocks on the up after that blowout alibaba singles' 25 billion dollars in sales. hasn't peak global says the chinesence is that online retailers have room to grow and they could hit $1 trillion this year. checking in on movers in hong jumping 11%y garden on news it will be included on the hang seng, but cathay pacific is sliding on their pending removal and changes effective december 4. cathay pacific has fallen for an eighth session, the worst for the stock since 2015. cathay pacific is the biggest laggard on the hang seng, down over 2.2% this morning. up, suspending trading in hong kong, but the stock was cut to neutral on weaker sales growth and slower store expansion. tho

mainland markets qamar are you seeing support coming soon for shanghai? or are you seeing support coming soon for shanghai? >> the fundamental factors are supporting the market, but looking at the technicals, you are seeing support for the 3100 level on the shanghai composite. csi 300.he these are the key levels at this moment. rishaad: nice one. joining us from ig asia from singapore. reporting a drop in first-quarter profit could we would look at the market -- stock in the premarket next. ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. rishaad: i am rishaad salamat in hong kong. we count you down to the start of the trading guide here, shenzhen, and shanghai. premarket pretty much flat, not a lot of conviction. the futures contracts suggesting, diversions, but we can expect the index to, well, flip between gains and losses. a story about the banks as well when it comes to china particularly, bank reporting season. that is what we have at the moment, on the way down to china construction bank down .3%, net income 10.2 billion dollars, the country's second-

shanghai. or carrier has concerns details about a deal with american airlines including selling a stake and introducing a cochair agreement. they will issue 2,000,008 shares to americans that will pay at least $200 million. the stock continued to trade in hong kong closing 0.7% higher on monday. to invest innvited saudi aramco in what is expected to be the world's a guest public offering. saudi arabia is preparing for that by forging closer relationships with its a gift buyers and walking in future demand for oil. the kingdom plans to sell 5% of saudi aramco next year. the chicago fed president charles evans says uncertainty over inflation and federal spending could mean two great hikes would be enough this year but he told bloomberg he would support three if he gains confidence in the forecast. evidence did a great with his fmoc colleagues to raise rates march 15. >> to the extent that i gain more confidence in the forecast that i have, that would be a good indicator that i could perhaps support three. two might be the right number if there is more uncertainty or any modest conce

surging in shanghai. this as a mystery chinese trade is feeling to gain -- fueling up again. .- fueling the gain rishaad: we are looking at second quarter gdp to be up 6.6% on last year. we await these numbers. there is a lot of pressure with the inflation reading on the central bank tight breaks -- hike rates. >> the economy is broadly doing well. gdp numbers are strong. inflation is at a five-year high. they are struggling with higher rice prices and higher oil prices are also impacting. there is a feeling the philippine central bank has to move by as much as 50 basis points. movekers are considering a , such as lowering tariffs or making it easy to get imports. all accounts, there is a certainly pressure on the positives. governor, willk he be behind the curve? >> there has been with the weakness of the currency. if you were to compare them to indonesia, indonesia was being very proactive during the emerging markets volatility. they made it clear they were trying to get ahead of the curve. bank is a perception the of the philippines is behind the curve. if they move aggressively that

♪ >> it is 9 a.m. in shanghai, beijing and singapore. welcome to bloomberg markets china open. i'm tom mackenzie. yvonne: i'm yvonne man. were opening up to the trade in hong kong and mainland markets. tom: let's get you top stories. asia falls after a six-month high after it adjust earnings reports in the u.s. and japan. risk appetite may have checked out for easter. chinese indicators have impressed the head of gdp, but are they too good? markets are spooked by the possibility of less than does. david: we are and the fast lane at the shanghai auto show. electric cars are all the rage as manufacturers seek to reverse declining sales. tom: we are at the shanghai auto show. we will be doing a deep dive with some of the leading executives here. we of already spoken to the ceo, , talking about his muted optimism about a potential turnaround and the chinese market. we will be speaking in the next few minutes to the ceo of mclaren. ofer in the show, the ceos ofborghini, lamborghini, bentley, audi and the chinese automaker listed in the u.s., the oh-- neo. there's a lot to discuss. but m

pressures. shanghai is in a bear market. slump is threatening its role as an economic anchor. in hong kong, i'm rishaad. haidi: also coming up, trade concerns casting a pall over china's tech ico's. we will be tracking investment flows. this is "bloomberg markets: asia." rishaad: a little bit of a bounce, pretty much flat. also looking to what's going on elsewhere. perhaps adicating slight lift at the start of the trading day. semiconductors for tenths of 1% higher. -- 0.4% higher. it's looking positive but anything can happen. haidi: caution there when you look at sentiment. if you look at the msci asia-pacific index, it is flat after two days of declines. taipei, not as tech heavy. 0.4% higher in taiwan. futures looking like we are ,oing to continue that recovery s&p 500 rebounding from that selloff. are watching how this bear market in shanghai is going to open up later on. there is going to be apprehension with a-shares in bear market territory in five months. the small batches looking remarkably like 2015. fundamentals in china are very bad. even bargain hunters looking at these cheap

to of how shanghai shares may start, futures higher, but easing off that advance. slumping to as two-year low, the second worst plunge for that benchmark. tech stocks bore the brunt, sinking the most in two years. this brings the shanghai composite closer to bear market territory. yesterday's slump brings declines to 18%. in the currency space, today's fix will be keenly watched as low, plungingto a at the fastest pace as the 2015 devaluation. rishaad: the pboc bidding to calm markets down. easingould see more of the deleveraging range. the pboc said on monday it will handle the pace and intensity of the deleveraging campaign. that leaves leeway for policy tweaks. we have seen that fine-tuning from the lowering of the triple r to the injection of funds this month. that could stave off bond defaults, so we could see a rally in the chinese bonds. the 10 year yield fell two basis points, now at an eight week low. haidi: thank you for that. we will talk more about china. the central bank calling for investors to remain calm and pledging to use monetary tools as we see this trade stan

losing $1.7 trillion in january, the shanghai benchmark at a two-year low. the housing index is also under pressure, below the 29,000 level going into this week. looking ahead, the bloomberg survey of analysts indicates stocks could be going lower in the third quarter. ramy: yes, third water, we have to be patient. apple lookingace, to up its audio game, are we seeing any moment there? board: let us look at the to look at some of the potential movers. apple's preparing to ramp --production, to have bear in mind, apple has expanded production to foxconn as well. high mexico electronics is down x electronics is down, they usually work on apple's headphones, and the deal is not finalized. ramy: thank you, sophie. as you head into the markets in china, we will see how the beer are looking in about 20 minutes from now. let us go to paul allen with the first word news. paul: thanks, david. a civil rights group has ordered trumpto order president to unify mother and 2000 undocumented children taken from parents. the aclu filing also calls for a halt to all features of versions of families c

this into context. the csi 300 benchmark in shanghai, shanghai/shenzhen stocks. what happened to that beijing -- that is what investors in china were asking themselves after this date of large-cap shares plunged, rattling the market, one which has become ♪ rishaad: margin debt below the bubble peaks, has been increased seeing for six straight months. a lot of investors nursing their wounds this morning. haidi. haidi: absolutely. getting the bigger picture look. coupon that before 2015. a 3% jump or fall in any of these chinese indices was almost a calm day. how farteresting to see it has, and how little volatility we have had from the worst in 2015 until now, so we are looking ahead to the shanghai and hong kong open, taking a look at how sentiment worsened and if it provides a little bit of support. a lot of analysts saying there is no point in them going in right now because it will make no impact. the scope of the small cap do not provide support to the broader market. let us take a look across the rest of the asian trading session because we are seeing not a lot of hand with the

china. like the shanghai link, this opens up the market for investors coming in. stocksre a lot of tech and health care stocks that some called the new economy, so different from elsewhere where you might see blue-chip stocks. these capital says shenzhen named a window on china's domestic opportunities, seen as immune from u.s. politics. daily trading limits are the same. if you want to buy into shenzhen , access to any stock in the exchange index, and also the small and mid-cap innovation index come a value of more than 6 billion yuan, and any dual listed companies. stages, hongal kong saying that access to the small cap gauge will be restricted to institutional investors. tends to be quite volatile, quite a few retail investors, so they tended to make trading choppy. rishaad: yes. we have seen that, haven't we? just one way of china opening up its capital markets. what else has been going on? msciind: in june, the rejected adding shares, saying there were barriers to international investors. tohave seen china committed this move to open up its markets. in february, it removed lim

well.ad: we started off yvonne: it changed. rishaad: everything seems to be going down, shanghai to bring makers, other liquor the glass being half empty continues. industrial have the production numbers over the weekend which wasn't enough to of ly give any kind optimism. that started slowing growth, key thing . and the to watch here to watch this atk, midweek, we take a look how we are faring when it comes to overall broad sentiment, a picture, the 300 is the one to watch here this morning. we are seeing the large caps 1 1/2%. we did get that, some clues from government about what they are going to do to boost some here whether it's the share byebacks, changing rules regarding that. actually some pretty significant things to watch and how things could actually turn around. quities, we're not seeing a clear picture of what is really going on, we are losing a little here with the likes. nikkei. is strong,ian market and singapore .6 of 1%. coming up a little bit picking up by a third of 1% at open. what we have been seeing, not really a clear story as well. likes of the the rupee als

shanghai market, the weakness in the won affecting the kospi. some ofve a look at these currencies and what it looks like when you chart them. its biggestn 4%, drop since 2011, leading declines in emerging-market currencies across the region, heading for its biggest drop in five years. this rally in the dollar sapping demand for emerging-market currencies. if you have a look at the korean rallyt had a strong around this time last week, down 1.6% at the moment against the dollar. so, quite a bit of weakness. let's have a look at the fixhore renminbi, the yuan about 6.8 for the first time since 2010, weakness in the are a lotenminbi, so of movement coming into these currency players. a drop today, so the yield continuing to rise on the 10 year note in australia. it rallied by more than 20 basis points thursday. australian bonds at their lowest level since april, so the return note, 2.58year percent, quite an extraordinary week. haidi: thank you for that. rishaad: let's head over to sydney and joined paul allen for first word news. after years of tension, president barack obama and presid

. shanghai and shenzhen about the come on stream. haidi: let's find out more from david. david: let me get started with , the fixing coming out 15 minutes back, a surprise given that it was the biggest adjustment since august. we have been on a weakening trend in any case. we are seeing a little leg up. with leading to this? some people are pointing to a big drop in the euro overnight following with the ecb did not announce, perhaps pushing up the dollar, an adjustment here and there, then we find ourselves in this situation. 109.21 is your level. -- 1.0921 is your level. there we go. we have been pushing higher and higher for the most part of 26 dean. for thewhere we are -- most part of 2016. that is where we are at the moment. preceded levels which two selloffs in risk assets previously. something to watch. in shanghai, not in hong kong, we are close to your, philippines also, nothing there, shanghai down. three trading debuts in the mainland today. if history is any guide, there we go, different day, same story. ipo, regardless of what they do, does not matter what violation, there

profit guidance. >>> and going live in shanghai with the stock market. but we hear they are still confident on china. >> i don't see people pulling out of china but i continue to see people putting money into china. >>> g20 leaders warn russian president vladimir putin more sanctions could be on the way as they meet in brussels to discuss possible measures. >>> now to our top story, a quite astonishing story in japan. the gdp number shows a 1 president 6 contraction against the expectation of 2.2% growth. one of the analysts said there's a big drop as businesses cut back on investing. key consumption is another weak quarterly factor. japan is now back in a technical recession following the drop in q2 after the sales tax came through. the latest fall is cementing last week's rumors of the second tax hike to be delayed and a snap election will be called. now what does that mean for the markets? the nikkei, sorry, the yen hit a seven-year low of 117.06 but they are currently up .92%. does this mean we get more easing or have a snap election? or a sales tax hike is delayed? hence the

you next time. eisuke sakakibara, mr. yen. ♪ rishaad: 9:29 in hong kong. as usual in shanghai, shenzhen, and tokyo. i am rishaad salamat coming to you from bloomberg's asian headquarters. haidi: i am haidi lun in sydney, where it is a holiday. we do have shanghai coming up, the open, looking ahead to china gdp numbers and domestic activity numbers as well, fixed asset investment a key one, as well as retail sales and industrial production. that is coming off the back of these robust loan numbers from friday suggesting this effort to deal-levered the system might take longer than policy makers had hoped, so all of this food for thought when it comes to the pboc on their selective tightening drive. let's look at the shanghai open, a little move with that yuan. for thought when the china data dump comes through at the top of the hour. first-quarter gdp beating, 6.8%. of thatalling ahead friday decline. hong kong closed today, but to put this on the radar when the hang seng resumes trading, we are looking for a resumption of trade after posting a net loss for 2016. only .6%, leadi

asia. advance,a two day shares in hong kong lower 5.5%, shares in shanghai lower by .1%. we are waiting for china caixin pmi. we will see how that feeds into market reaction. taking a look at how that is playing out when it comes to sector breakdowns on the shanghai composite, only real estate and materials stocks on the up-to-date. just a note, we do have several governments around the new economic zone to be developed, seeing they will be putting into place property tightening measures to ensure speculation is not too rife and otherwise, banks and consumers staples leading the drop in shanghai. take a look at some stocks and focus. let's look at tencent shares trading today. wells fargo ind terms of market value to become -- part of the top 10 biggest companies in the world. we do have that trading lower by .8% today. china unicom resuming trade, up .4%. it could see a change to its shareholding structure in response to the government nudging is so easy to draw in more capital. ejiang expressway falling over 5% today. ahead of its post-earnings briefing at 11:00 a.m. today. it

can be part of the story here. shanghai stocks entering bear market territory which means they're down 20% from the december 22nd peak. if you're having a case of deja vu that's because this is the second time china has dropped into a bear market in five months. it breeched it's august low when the panic started. chinese banks giving 91 beside in new loans in december and that was down sharply from november. the chinese currency which remains a key focus for the markets stabilizing a bit. the people's bank of china setting a slightly weaker midpoint for the yuan but the fix has been steady now for a week despite setting earlier in the day. the yuan traded firmer. there's been a lot of volatility in the offshore market in hong kong. a big gap in the way it's trading relative to the official way that they have been managing it and that's causing a lot of anxiety in the markets. here's how the final session of the weekended in the red for the japanese nikkei index. for the hang seng in china. the hang seng in hong kong and of course i mentioned the chinese market as well. continued c

summit. supports these mechanisms such as the shanghai organization cooperation in inying greater roles building a fairer and more equitable global economic governance system. advancell continue to the initiative in the spirit of international cooperation and collaboration for shared benefits. will work with the participating countries on major projects, head more major trade platforms companies --more more capable greece to invest in companies to create cooperation in areas of technology and people's livelihood. we hope to set up the whole world for "operation. ladies and gentlemen, friends. is on thee economy whole, stable. for the first three quarters of gdp grew byina's 6.7%, including a 6.5% growth registered for the third quarter meeting our targeted goal for growth. yearoutput for the whole is projected to be 600 million -- so millions of new jobs have been created in towns and cities, hitting our annual goal ahead of schedule. companies profit margins, government fiscal revenue -- china's economy is truly performing well within the reasonable range. china is still among th

oil tanker has collided with a cargo ship off shanghai, leaving 32 missing. the tanker caught fire after the oneision and is caring million barrels of natural gas condensate. it happened about 160 nautical miles off the coast. it says the missing savers are all from the iranian ship. malaysians opposition has named the 92-year-old mahathir mohamad as candidate for prime minister. malaysia's longest-serving prime year will try to topple the premier and his coalition. the opposition says if mahathir mohamad wins, he will remain until the jailed leader is able to take over. the bbc's china editor quit blaming an equal pay. she accused the bbc of a secretive and it illegal pay culture and facing a crisis of trust after it was revealed that two thirds of staff earning more than a certain amount for men. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. i am paul allen. rishaad: china's foreign posting anserves 11th straight monthly increase under tighter capital controls. let's bring in enda curran. let's look at

shanghai. this particular market up 0.2% for the nikkei 225 and the kospi. the shanghai composite paring off earlier losses to close 1.4% higher. the hang seng closed 0.8% higher and the bombay sensitive 30 index cloes closed up 1.5%. what is not on this chart is the taiwan market which closed lower. in terms of the recovery picture, a lot of concerns there, but the market seems to be closing back up. nymex light sweet crew up 59 cents. brent crude trading up 38 cents, $70.92 a barrel. bertha, good to see you. how are the futures looking today? >> looking much better. it looks like we're taking a bit of a cue from what we've seen in asia and europe this morning. we've got dow futures right now about 70 points above fair value. we're going to hear from dow component home depot this morning. lowe's disappointed over the weekend. we heard over the weekend both warren buffett and eddie lambert had cut their allocations in home depot. so it will be interesting to see what the bid box retailer has to say today. we'll get housing starts, as well. a very busy day today. and watch apple, a

something he describes as a huge structural shift. speaking in shanghai, he says he wants to accelerate reform and introduce greater safeguards for intellectual property. he also says the government tends to promote -- intends to promote shanghai. a ballooning of a deficit in the first eight months of the fiscal year, more than 200 billion dollars larger than a year earlier despite the revenue boost from president the congressional budget office expects the deficit to come in by around $1 trillion by 2022 and remain at that level for at least seven years. inflation remains below target in india, as well, where consumer prices rose, matching forecast, but below the r.b.i. goal. it is the 10th consecutive month that inflation has been below target and provides more argument for rate cuts. passenger vehicles also declined last month. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. i am selena wang. this is bloomberg. conditions taking the spotlight. we will discuss how the pboc could actually react.

shanghai composite is a rallypside after underway. gains for the hang seng as well. check out what is going on in the commodities complex. we are seeing steel and copper indexes store in shanghai. .rent a bit weaker holding at the 75 handles so far. let's gave to first word news with paul allen in sydney. >> north korea watchers say the regime is destroying its missile driver and testing. only known is the used for land-based mobile medium range launches. this comes days before the summit between rishaad salamat trump.sident it is not clear if the dismantling of the facility is permanent or temporary. president trump insisting they make the first move. one u.s. official tells us the president is being advised not concessions,any onus onthem onus -- the the north. the latest wage information from japan dims hope. in overall cash earnings in march was the biggest in years and raised expectations. 0.8%.s pay rose household spending fell for a third straight month. golden thoughts and india shrunk in may. the world's second-largest consumer and a considerably weak period of demand. shows

dollar-china up. u.s. futures, 29.50 into the open. look at the equity markets, the shanghai composite, topix index, , decenthave asx session, volumes coming back but not quite to the recent averages. quickly, look at the bond market. will talk about a reposition out of sri lanka but that is what you need to know. you haveear yield, japan, australia, the u.s., and what you've seen in gilts. 13 basis points, second-biggest in absolute value, biggest jump since referendum in percentage turns, biggest jump on record. we will see if this continues. are we setting ourselves up for disappointment? puttinghway to brexit, yield on a staircase to heaven. we believe that there for now in terms of markets. su keenan is with us in new york and has an update to your first word news. the u.k. is a step closer to agreeing a new brexit deal after talks between prime minister johnson and his irish counterpart. sterling jumped the most in as we heard the two sides could see what he calls a pathway to a potential agreement with the eu. he said he believed his deal is deadlineat the brexit at th

with the shanghai, shenzhen. getting reaction to the chinese economy with more signs of life, strong numbers in pmi coming way instant -- coming in stronger than expected, coming and stronger than the september numbers as well. haidi: we will see how shanghai plays in this, because typically good data, you do not think you would get a lot more using and that continues to drive mainland markets lower. let's take a look at the shanghai markets that have opened for trading. here is david. david: yes, we have the two markets opening up, quick reminder the philippines which opens up at this time is shut because of all saints day in that market. after pmi data a pretty good turn of events, you have these four markets up above water. hang seng up 4/10 of 1%. i have a look at the movers up and down. in up on the hang seng. shanghai a little bit above water at this point. to break things down, i want to point out what is happening. the reason i'm looking at energy is you can see prices at a four-year high in china. they are not coming down on speculation that they have raised prices and are t

liquidity operation loans. this after the shanghai composite posted it's fifth consecutive session of declines despite yesterday's rate cut. as you can see down 1.3%. let's get the word from sri wrapping today's asian market trade for us. >> let me talk about this operation to inject 140 billion yuan via the slos. this is an attempt to avert a liquidity squeeze. remember the recent measures that we saw yesterday announced by beijing amount to some 650, i think between 650 and 750 billion yuan being pumped into the money markets in china a lot of people saying it's to offset the capital outflows as a result. so it seems to be a zero sum gain so this explains why beijing today in the last hour or two is attempting to top up the liquidity tank. it's a short-term move and short-term in nature and short-term impact on the markets. tomorrow we could see it contribute to a degree of stabilization but once again this is arguably policy incrementalism by beijing. it does suggest a bigger broader more crafted package of measures so the latest measures are far from being big bank. might contribu

, insurance players , oil holdinge steady around $53 a barrel, weakness in the shanghai market. willing to putot money back into equities ahead of the end of the year. the offshore renminbi weaker following the pboc fix today. you are seeing the yen flat after hitting that 10 month low against the dollar, 117 handle. , aterms of the commodities boost in the aussie around .2%, emerging market countries being sold off, so a dollar strength story. down .2 percent, but mixed in terms of the overall equity picture today. let's get to first word news headlines with sophie kamaruddin. aramco will continue to explore an ipo in japan. riyadh is looking at markets from hong kong to new york for one of the biggest share sales in history. the saudi foreign minister has downplayed tensions with the u.s. after congress passed a law allowing victims of the 9/11 attack to sue them. californiaity of economics professor peter as donaldll advise trump puts a china critic as a trade advisor. new zealand's economy expanded faster than economists forecast last quarter as construction boomed and consumer spendin

well. this is bloomberg. ♪ david: welcome back. trade talks are resuming and shanghai. china and the u.s. might be even further apart now than when the trade talks broke down in may. yvonne: can they bring it back to that time? let's bring in our china coanchor, tom mackenzie. what, if anything, can we expect from the talks in shanghai? say thekeptics would gulf between these sides speak to that as well, it is best whether structural issues, intellectual property, or demand. others say at least we got to a point where steve mnuchin and robert lighthizer have taken the effort to fly to restart negotiations, the first time since may. they will be sitting down with the vice premier and the commerce minister. leading up to these talks, there was a bit of jockeying between the two sides. you had china for example giving the go-ahead to companies to buy more agricultural products in the u.s. on the u.s. side, you had the meeting between trump and tech executives suggesting he would ease curbs around huawei. -- youflipside, the you have the u.s. looking at the wto and opening up a possible

underway. that is a long way off for the moment. nikkei feeling it. the hang seng, lower. shanghai feeling that down drop. let's get to those moving parts. the u.s. 30 year treasuries, levels we have never seen before. 1.9. the whole curve is below two into the u.s. we have stronger than expected for's -- fixed gain. is the message still continually one where we are seeing them sending this message out that the yuan is not a one-way bet? 11 days of declining. the new zealand dollar on track to go down to 62 u.s. cents. confidence to come out earlier on in 11 years. we will be hearing what is going on. we will be talking to this san francisco fed president mary daily later on. u.s. dollar against the pound, here we go, we have the have -- the last headline. we will have five weeks of that parliamentary debate. some are saying they are trying to stifle a deal on brexit. effect, thees in most viable option, i guess the most embedded on option right now. $1.22 for the pound. here's to furred work -- first word news. su: we begin with argentina. the country is again banking on the imf t

percent. the nikkei up over a percent. and the shanghai composite posting a fractional gain up about a quarter of a percent there as well. overall we are seeing movement in european markets as well. mostly to the downside however. the ftsi mib in italy off and the blah blah. >> it is friday but there is still a lot on today's agenda. we'll get the results of the purchasing manufacturers index for april. at 1:00 p.m. eastern we'll get weekly rig count numbers. and on the corporate front caterpillar, mcdonald's, general electric, just some of the names before the opening bell. >> it is early on. but still the idea that we could be seeing at least an earnings story play out where we continue to see that earnings recession play out. a sales recession for s&p 500 companies. so a big move. and a number of big stock movers. microsoft. shares under pressure after falling short of estimates for the first time in nearly two years. the cloud business couldn't make up for a slowing pc market. still satya nadella sounding upbeat. >> the cloud is being built to optimize and grow. with our results th

departure of stanley fischer. there was a petro chemical tanker off of shanghai that could explode and cause an environmental disaster. the body of one sailor has been found. 51 others remain missing after the tanker collided with a petrol. her on saturday. -- carrier on saturday. clouds of toxic smoke are hindering rescue efforts. says she has no plans to run for u.s. president after a rousing speech at the golden globes. demillethe sessile b lifetime achievement -- cecil b. demille lifetime achievement award. shares torive up weight watchers in which oprah winfrey has a stake. i am paul allen. this is bloomberg. 7:10 in seoul. north korea and south korea kicking off high-level talks about now. year, been a tumultuous in which the north korean regime accelerated its weapons program. donald trump threatened to strike back with "fiure and fury." joins us from the communication bridge on the southeast side of the demilitarized zone. what is going on, steve? stephen: this is the dmz behind me. this is the reunification bridge, the joint security area that is demilitarized and jointly cont

challenges involved. hong kong and shanghai open as well. ♪ rishaad: we are back now. this is "bloomberg markets: asia". i am rishaad salamat. having a look at what is going on. we haven't seen much money coming out of china. money flowing into hong kong drying up to some extent. moveis after a massive when it came to just before that golden week holiday. we're talking about a trickle here. spending in shanghai $8 billion on hong kong shares, the biggest inflows since 2014. net buying this month has been 7% of that amount thus far. we are looking at this narrowing shares and hween a shares. let's get to the shanghai and hong kong open. here is david. david: it's all about the currency markets. go,hore renminbi, there we 6.78 is your level following the fixing. it was not a big surprise. when you consider dollar strength, the drop in the pound and the euro. the fixing was north of 6.76 , so that's what were getting. this wall have a follow on effect with other majors. should be down, there you go. have a look at the aussie dollar, flat at the moment. stirling is what you want t

to continue. i look for resilience for shanghai stocks. 2015 highs.r the fibonacci analysis pointing to a break out. 1481 on the terminal shows it has broken above the upper percent between 38.2 and 61.8% retracement level since the drop early 2016. the next area of resistance could be the 76.4% level, the 3400 level. and the stronger yuan stable pboc policy, that could spur gains along further. china inc. looking financially healthier, and set to grow in 2017 at the fastest pace in seven years. we are looking to those chinese mending rates. rishaad: absolutely. thank you for that. right, let's find out what is going on first word wise. , president trump has described the flooding in and said the government response will serve as a model for future disaster recovery. looting prompted authorities to impose a curfew from midnight to 5:00 a.m. harvey brought the heaviest recorded downpour in u.s. history. billions range from $24 to $100 billion. meanwhile, the storm has paralyzed mumbai. it forced the closure of a train network which carries 8 million people each day. whether forecaster