Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240713

We have an exclusive interview. In hong kong the government is again rejecting calls for universal suffrage for the chief executive here. This as anger bubbled back on the streets of hong kong. Shery australian markets have just opened to trade. Lets turn to sophie for a check of what she is watching. Sophie we are seeing stocks gaining ground,. 1 with the stock market looking overheated and valuations and records. The latest, investors buying into the aussie stock rally. Environmental risk around the earnings estimates. Futures looking mixed. It is opening slightly lower, this nikkei futures under pressure ahead of japanese industrial output we will get later this morning along with taiwanese export numbers and jobless figures from hong kong. We are seeing new york crude. 1 , asground over investors consider the potential impact from the auction health in libya and iraq. Said this is a policy delay disruption and there could be a quick turnaround if there is a political solution. Libya has less reduction at stake than saudi arabia and its difficulties are more contained. All right. Thank you for that. There is a wealth of Central Bank Decisions from the g7 states. Otherld set the tone for countries. We kick it off with the bank of japan on tuesday. We are not expecting much of a move, but watching out on wording to see if there is more positivity or uptick on growth expectations. We are in particular looking ahead to the ecb with christine at lagarde Christine Lagarde at the helm. Lets get more on this. It is an interesting start to the year for global banks centrally because we are looking at a wait and see mode for a lot of these Central Banks. Focuses . Our it is likely to hold. We are looking at positive news for the trend of the year, the cyclical recovery globally. The data is showing stabilization growth in europe. Both in asia, stabilization and Manufacturing Sector particularly. We have some positive momentum building. That is underlying the cyclical recovery,the massive the squeeze chute which is what everyone is hoping for, that the very dovish tone they have taken so far with easing monetary conditions will support it further. The back of this is really the last of ammunition moving forward. They have adopted a negative Interest Rate, but in the ecb itself there is increasingly likely to adopt a move away from this. It means they have to wait and see while striking a tone that will be supportive. Among the rba, questions over whether they will move in february. We heard from a heard former board member saying we have reached a point where extraordinary Monetary Policy like this and easing is seeing diminishing returns. Reversal rateshe in australia. Is that the case, despite all the stimulus and easing, we are seeing a structural slow down and these cant be addressed by Monetary Policy . Absolutely. We are looking at a level economy which is aging. Europe and japan are depopulating. In places like that that are traditional growth areas like china, it is aging. So that is a wharton for the rba and other Central Banks. For the rbamportant and other banks. The ability to push up demand is less because not only do you have high Household Debt in australia for example but the ability to grow outward is limited because the point is not only lowering interest expense burden but cheapen the currency so you have the ability to export your low growth. The question is where will we export this to if the growth sputtering in china . We saw the growth slowing by 50 basis points. This is an area where australia have looked for in growing. Moreover, people dont talk about the native side of Interest Rates, the hazards and the rise of inequality in terms of the push up in asset inflation. That, if thef economy is not already in a recession and we are looking at running out of ammunition, the question is, is there any more room to grow and we continue to push rates lower and how helpful would that be, and if it were the case, should we pass it on to fiscal policy . Many of these issues we are facing globally. Shery china has been doing a lot on fiscal policy. They have been trying to stimulate fruit tax cuts and local governments doing at stimulate through tax cuts and local governments doing what they can. They already have an economy settled saddled with so much debt. Is to issue for china of control plan economy. The debt level is high in terms of corporate debt and the risk aversion is there. You saw the marginal ledort measures, the state investment hasnt increased that much. If you juxtapose the 2019 state led investment with in 2015 and 2016, it has increased to offset private investment in china and private investment has decelerated. In the past the public side is where it comes in to put the flaw on growth. That is a cyclical story. Pboc vernight the trying to put the floor on growth and fiscal policy and the state sector is really there to put the floor on demand in china. Beyond the cyclical story and what we are talking about in the movements of pmis, we are looking at china having to deal silveringver ring economy, so issues how to agerate retirement flows to gracefully. Moreover with the young population declining, how do we have new funds to support retirement . The structural push will be quite important for the central bank to address. Moreover, rising pushback about chinas ability to grow outward as you know with the u. S. China trade war. Not only that. Within asia you see north asian economies diversifying from chinas ability to move up the value chain, by moving factories to less competitive economy, more parliamentary with less complementaryre with less friction. There are issues to be addressed but without addressing this, we can talk about these cyclical trends. Growthimately if asian is likely to decelerate as well as Global Growth. Shery you are sticking around. For now lets get to first word news with paul allen. The bodies of ukrainian victims of the plane crash in iran have been flown back home. They were among the 176 people who died when the plane was brought down by a missile january 8. Tehran has no immediate plans to release the black boxes to ukraine or any other country. That contradicts earlier statements. Rival factions in libyas simmering civil war have held talks in berlin as production of a oilfield was hit. The National Oil Corporation said output will be over 70,000 barrels a day. That is down from one million a day last saturday. That is libyas lowest level since august 2011. The volcano in the philippines is venting smoke and ash after an option that displaced thousands of local people. Tion that displaced thousands of local people. Magma is rising and a devastating explosion could be days or hours away. First tennis majors starts in australia and it could be halted by a are pollution from the worst bushfires in decades. Organizers of the melbourne open are monitoring the air quality continuously after qualifying matches were delayed last week when people collapsed. There is an air quality scale of one to five and gains will be games will be halted if it reaches level four. Global news 24 hours a day on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Unrest has returned to ang kong after a sunday sunday really turned violent. Four Police Officers were professors were ordered protesters were ordered to disband. How bad was it . Didnt last lull that long. People thought the worst was over. We have gotten indications from the government, but it did bubble back on the streets yesterday, turning more violent as basically this was the approved protest area here, and the epicenter of the Central Business district. Against the outliers and radical protesters, reached the boundary of the approved area to demonstrate. The police say at least four Police Officers were attacked with wooden sticks as well as other improvised weapons. We got word on the Police Departments that four petrol bombs were thrown at a Police Office in apolice different district. It is probable dissatisfaction to satisfy. All of the demands except for the official retracting of the tradition bill which kicked this all off in june. The government hasnt met those demands. Here we are back to a repeat cycle, protest on the weekend and recapping monday morning. One of the key demands, universal suffrage. Any progress . Stephen not at all because the government put out a lengthy statement saying that the little the Political Climate is not conducive to be talking about constitutional issues like what law,tlined in the basic which states the ultimate aim is the universal suffrage for the chief executive. Beijing has made it very clear, especially since 2014, saying they cant accept a leader who is antichina or antibeijing. That is the sticking point. In responsetement from the hong kong civil assembly, one of the organizers of the demonstrators, saying if the government refuses to give us universal suffrage, it is a sign they are suppressing our freedom and democracy. That is why we are at this stalemate. The government is perceived to be in transient towards the protesters demands, and the protesters are not letting up. Haidi we do get hong kong employment numbers later, and the numbers could be higher than the figures might suggest. Lets listen to what they said about it. I mentioned travel, tourism related sector, hotels, having [indiscernible] 5 on the rate. Haidi that was the secretary for commerce and Economic Development of hong kong, speaking last week. We are seeing the shops being closed, hotels and restaurants emptied. Surely we could see businesses shutting jobs. Jobs. D stephen november 3. 2 . We are expecting december 3. 3 . A little of, but just little up, but in junetle up, it was 8. 5 . In the Global Financial crisis 5. 5 . 9, it was just 3. 3 now. Most economists are saying it is the beginning. 2020 will see a wave of layouts in the hotel and hospitality and tourism space as well as retail. , jewelry chain here going to close 20 of their shops. We could see not only a wave of layoffs but of bankruptcy as well, if things dont improve. Engle there in hong kong. We are speaking to the hong kong chief executive, carrie lam and other World Leaders from the World Economic Forum Taking Place later on this week. We have more conviction, including how natural disasters are infecting current investment decisions. This is bloomberg. Haidi lets get to hong kong for what to watch in markets. Sophie we are seeing new york crude jumping as much as 2 , following the political instability in libya and iraq. Libya,gage luggage in 800,000 barrels a day, accounting for 3 of total opec supply. I want to highlight this Australian Health insurer which is as much up as much 15 after cutting it profit forecast , citing higher than expected claims. And looking at super retail, falling as much as 7. 9 two in a row october low. Get aoup was able to marginal increase in sales despite the bushfires. Investors are not that optimistic despite the update. Seniorstill with us is a economist. Thank you for sticking around. We are talking about matcher massive structural interests massive structural issues various Asian Countries face. How living to deploy capital overseas to increase investments and returns . You have a progrowth environment, like south korea, and aging, the growth is lower. Fourthing out for the quarter, likely to be in the low or 2 . The forecast is around 2 . The roomof korea, forward is likely to cut rates but there is not much room to cut. It is ahead of the game in terms of aging. Dealing with a debt issue. The experience of japan shows in order to protect profit margin and to grow, it needs to go outside. The way it has done that is going to Southeast Asia, china to reduce input costs. The whole and that but europe and the u. S. And the rest of the world. I think many of these north asian economies will need to do so. South korea, deploy more capital to Southeast Asia since 2014 than to china. China is its largest trade partner in terms of imports and exports, but it is unlikely to be the case if you look 10 or 20 years from now because it needs to diversify, not only because of china slowing but china increasingly more capable of producing hightech goods, and korea not able to take it vantage as much. That is the trend across the board, taiwan and south korea, japan. The trade surplus was china is china is competitive. They need to seek other opportunities. And also the demographic issue, it is difficult to resolve because you have to fundamentally change the way you structure your society, to reverse the them a graphic issue. Japan,case of korea and has talked about this a long time but we are still in an environment where japan is depopulating, south korea is accelerating the working age population. Shery how much can be economists count on intraregional investments and relationships and trade when they have their own issues to deal with . It is an arbitrary story. The profit margin, to look for growth. It doesnt mean it is able to replace growth and domestic demand. A good example is korea. Vulnerable and not very diversified. It needs to work on this, limit to how much you can be in terms of productivity and expanding your way out. South korea is facing the issue facing a being also north korean issue as well. It is very difficult for south when in terms of growing an economy there is natural it is where it has the most complex and it is very close in terms of the best closed in terms of culture and geography. Ofit is very closed in terms culture and geography. North asia is traditionally very productive in terms of tech and industrial policy, growing outward but less productive in places like services. It is dependent on essentials like oil and food. The biggest deficit of oil and food are in north asia and china , which means not only is it exposed by the external factors but also essential sources. Thank you so much for joining us. Economist for emerging asia. Plenty more to come. This is bloomberg. This is bloomberg. Haidi you are watching daybreak asia. Is cutting the bonus pool at its Investment Bank by 30 after a tumultuous year for the and vendor investor to embark on a major restructuring. They say it is going to cut costs below 24 billion and retain top talent and to pay regulators. You may need to cut fourthquarter to meet on the targets. Shery jpmorgan is buying bmps. Ffices in paris the building is in the first sector, 10 minutes walk from the louvre. Jpmorgan has property in the area and it is not clear if this means it will be moving employees from london as a consequence of brexit. Jamie dimon said a hard split would be a disaster. Haidi a Top Performing fund at Morgan Stanley betting on cash rich consumption stocks in asia especially in china. The banks asia the banks is opportunity meeting 29 of it here. It targets its peers. The of which are in consumer sector. We will be speaking with the Morgan Stanley ceo and other banking executives at the World Economic forum in switzerland this week. This is bloomberg. Paul mrs. Daybreak asia. China says the new stars like virus sars like virus is still preventable and controllable. Health authorities confirmed 17 new cases of the rotavirus sunday, bringing the total to 62. The source is unknown. Authorities are seeking to reassure the public as hundreds of millions prepare to travel ahead of the Lunar New Year. The Hong Kong Government rejected the for universal suffrage after a rally in the Central Business district sunday afternoon turned violent. The demonstrations turned easily but police asked to have it end saying people had gone beyond the approved area. This was the eighth month of unrest. Warl faction in libyas have held talks in religion as the biggest oilfield was hit by damage to a major pipeline. The National Oil Corporation said output will be 60,000 barrels a day, down from one Million Barrels a day last saturday. That is libyas lowest production level since august 2011. Global news 24 hours a day on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am paul allen. This is bloomberg. Shery lets see how the oil markets are reacting to the news out of libya, not to mention the protests in iraq. What are you seeing . Ashie brent jumping as much 1. 7 and wti using its climb. Crude price is more modest effect from september, when the Saudi Oil Facilities were attacked and libyas displaced output of 800,000 barrels a day only represents 2 of the total of the supply. Politicians, business executives, it is that time of year, they are going to the World Economic forum in davos. We are seeing the key drivers of the Global Economy. Enda curran is here. It is everything. Enda it is interesting in the world of economics, a lot is going beyond the trade war conversation. We are looking at the big structural changes coming out of not just [indiscernible] this decade. That is why davos will be dominated by topics like thenation, Climate Change, role of capital and the impact of the digital economy. Abouteporter, talking social mobility, that you can create social mobility and boost economic outlook. A lot of people are looking beyond the near term and seeing structural issues. Shery now the trade deal has been struck between the u. S. And china, what are people attending attending going to focus on . Enda people are looking beyond the trade agreement. Davos will likely be dominated by the big, key structural issues. Analysts are talking about the peak topics going on, bank of America Merrill lynch calling it a peak decade, eurasia saying it is a tipping point. Some of the issues cover Climate Change. There is a view around the world that with the extent of climate disasters and emergencies, it will force political action. Whether that happens remains to be seen. There is a view we are seeing peak youth. There is more over 65 then under five. With all the economic planning, we are looking at peak oil, electronic cars and automotive transports to come online. There is a feeling the last 40 years have come to a natural end in the cycle and we are looking at a reset and a new World Economy over the next 10 or 20 years. Haidi the Climate Change and peak energy mix and policies, very much taking place in australia. I find it interesting. You can talk about Central Banks. It ties in, Central Banks cant do much with these structural issues like demographics and climate, Everything Else you talked about in terms of the trends. There areaper massively powerful economic institutions. We are talking about these structural issues and the question is what can Central Banks do. There is a debate about the role for Central Banks in offsetting the impact of Climate Change, and there is a feeling there is not much they can do. So we have to go back to the government and politicians side. There is no doubt Central Banks are trying to stay relevant to global Climate Change. Haidi ask the bank of japan in terms of what they can do. Think of always a pleasure. Enda curran here. Shery dont miss our guests at davos including the imf md christine, Harvard Kennedy school reinhardt and elaine chao. President trump will be going to davos as his impeachment trial officially begins. Washington editor ros krasny joins us. What should we be watching out for . Very interesting visual for him to be going to davos as the impeachment trial gets underway. The number one issue coming into the trial, whether the call witnesses or not. Whether to call witnesses or not. Democrats want some of the Trump Administration officials to testify. Most republicans are opposed to this, even those in the Clinton Administration were ok with having witnesses at clintons impeachment trial. That is a big point of issue. If there are witnesses called which seems unlikely, the trial could last for weeks and weeks. Ted cruz, the texas senator, says he thinks it could last to eight weeks, almost two months if we get into a witness situation. That has implications for the campaign chair, getting legislation passed, and it would be quite the sideshow. Other things to watch, President Trump has an interesting legal team, controversial members like ken starr. It will be the tv trial trump has been looking for. Right. You talked about this being a show trial. We know how this is likely to end, with an acquittal very what about the court of Public Opinion . The request through signs the trading with china is that the he pushed through signs the trade war with china is at the table. It looks pretty clear President Trump is using the trade narrative and economic narrative to not so much distract from the impeachment trial but to show in a way that his administration is working, working hard for regular people, and that he can then come out on twitter and say, the donothing democrats. Even as i am speaking here, he is in austin, texas at a Farm Bureau Conference about how the trade deals, the china deal, nafta, south korea, really helps the farm economy. He is looking to sort of shore up his standing in rust belt states big on manufacturing. Even the messaging at the china trade deal signing last week where he had a number of key Business Leaders, he is looking to show the strength in the economy from these trade deals, to show his administration is on the ball. It is interesting. , or aerg Economists Survey by bloomberg sees Global Growth slowing to the slowest since 2016. Trademp, by getting the deal through as he has an taking various other measures, forget that growth stronger, over 2 , it has a big positive impact on his prospect for reelection in late 20. In 2020. Ros krasny with the latest on the impeachment proceedings. Volatility and currency sitting at the lowest level ever. We will discuss that next with anz. This is bloomberg. Volatility is reaching it lowest level in some cases years. Its lowest level in some cases years. The Jpmorgan Index is at its lowest level. The Anz Banking Group head of research joins us from singapore. Lets get started with these price swings. Nonexistent at least compared to last past years. Is there a things such as too much calm in the markets . There is such a thing. We have seen times when volatility has been low, only for something to come in and stir things up. We hope we look at the last two years. What tended to stir things up with the trade war. With the signing of the phase one deal done, we might have to look elsewhere for something to stir things up. For the time being the economic recovery in asia looks set to pick up with exports starting to recover. We are in the honeymoon time with the phase one signed. Volatility and stay low for some time. Shery you did a study on the seasonal patterns you can find on some asian currency hairs. Pairs what should we focus on given this month of january . Baht january the thai performs strongly. This year hasnt turned out that way partly because of a strong run in december. And the thai authorities worried about the thai baht strength and they have taken measures. The rhetoric has been strong. So it failed to pick up this year but the thai baht is one of my preferred currencies for 2020. Aht tocipate the b strengthen. Haidi what other Currency Pairs are you opportunistic about . I am bullish on the taiwan dollar. Taiwan had benefited from the trade war, as taiwanese manufacturers had brought production back from china on shore, which has started to see domestic growth in the economy pick up strongly. Growth is set to accelerate. In addition, the global tech cycle is picking up some steam, which will benefit taiwan exports, given the exposure to semiconductors. I believe the likely industry is. Till under hitched any further strengthening in the taiwan dollar will cause them to have to cover the under hitched position which will be to further taiwan dollar strength. Does one retain its the yuan retain its anchor strength, something which could impact the signing of the trade deal, when the remover of the test with the removal of the currency manipulator tag . For asiann anchor currencies. It has strengthened slowly in the last two weeks, but i dont expect the recent strength to last. Part of that is the positive sentiment from the phase one deal being agreed to. As we approach Lunar New Year, traditionally it is quite normal for the yuan to strengthen as nese exporters convert accumulate receipts to meet bonus payments and other spending associated with Lunar New Year celebrations. I expect the recent strength to unwind as we get past the Chinese New Year, and coming months, we expect a structural slowdown in the chinese economy to sub 6 this year. The onshore will meet the impulses they have to buy from the u. S. And to meet foreign currency debt repayments that will be this year. Shery when it comes to the chinese economy, we are expecting targeted measures to stimulate the economy by policymakers, whether it is the pboc or cutting of taxes and inmulatory events happening different sectors of the economy. Are they at all going to have an impact on where the currency goes . If you look at policy measures by the pboc, using tends to resolve does result in a weaker margin. They have started off the year with rrr cuts. We anticipate further to come and potentially even some slight easing into Interest Rates as well. Given our view the chinese economy still faces nearterm headwinds and a structural slowdown with the aging population, i anticipate supply chain shifts to continue. There is a need to provide ongoing support for the chinese economy and ultimately that will help to weigh on the yuan as well. Shery lets talk about india because we have seen stagflation setting in, because of food prices, but the economy slowing down. What is your forecast for the indian rupee . Weakeningipate models in indian ruby towards the 72 level. But the rest looks favorable. India lets not forget is dependent on exports for generating growth. The pickup in the tech cycle is going to bypass india. India faces domestic challenges. They are nonbank financial ofpanies, feeling the strain high nonperforming loans and credit creation will be subpar, which will act as a drag on economic growth. For those reasons, it is very difficult to see the indian rupee outperforming. My view the rupee will outperform in the region. Is the dollar still the best when it comes to g10 . Point inis particular time, the dollar offers one of the highest yields amongst g10. It is my expectation the fed is on hold. There is not a lot that will cause severe Downside Pressure on the dollar at this point in time. Neutralar less broadly on the dollar. The dollar will continue to hold up well against the euro row. Sterling eventually will strengthen, if we can get ongoing brexit uncertainty out of the way and trade negotiations get on track well. The dollar, as i said, will continue to trade sideways for the coming few months. Shery great to have you with us. The anz head of asia research. Dont miss our interviews at the World Economic forum in davos with asian Business Leaders including executives from temasek, xiaomi and others. This is bloomberg. Shery you are watchingshery daybreak asia. 140 billion investment arm is sounding caution on credit markets. Dso says it is time to care at the biggest and mogul best most liquid force are sending a sell signal. The president said talked about what appetite he is seeing now. Cautious but busy. Those dont seem to go together. Go back to the market right now. T is a very confident market the consumer drove 2019 with confidence by spending. The investment community, is confidence changed when the fed started using early in the year and you see that in returns across credit and equities last year and now the business community, which was losing its confidence, with phase one behind us, the confidence is creeping back in. The market is good. Equity markets are good. We are at tight spreads. In credit, we back up and we say, where can we be protected and do things in 2019, leveraged loans, senior in the capital structure, they are secure. You can trade them so they have liquidity. We did a lot of business there last year. And direct lending has similar characteristics but it is private. Much of the activity is the same, in those protected areas where we can position ourselves in a relatively aggressive market. And you are reluctant to buy what . Say for us, this market makes distrust distressed difficult. Distressed inhas it, it can fix the Balance Sheet by now with this kind of market, it tells you there is risk in that company and in the underlying asset. Is that is why it has been so difficult to make money in distress . Yes. It will come again. All of these things set up the next distressed site cycle which is why it is difficult to be in the business. Right now it is difficult to make money. It is not getting any easier . The world has been on fire. Energy, i heard the group before talking about energy. If you think about upstream Energy Companies will have issued by the end of this week over half of the debt they issued all of last year. The world is more aggressive. It is great for the companies and gives more opportunity but it is a place where we want to be cautious. Biggestwas the distressed opportunity in 2019. Why didnt gsm participate . Gso participate . It is historic. It has been around since the gold rush. It serves a community which is one of the wealthiest in the country. They cant serve that community. That is before the recent fires. It has a political aspect to it and economic aspects. All of those things for us, when there is a political piece over the top of investment, it is hard to take a big position in it. Scott speaking to erik schatzker. Markets opening at the top of the hour. What are we watching . Sophie it is a muted start to the session. The yen is barely near an eight month low, we are keeping an eye on eight month lows. Jumping over 1 . But parrying the earlier advanced, which could be related to the libyan and iraqi output which is temporary. The uptick in rate counts. When it comes to stocks to watch, looking at mitsubishi over theafter a report cyberattack which could jeopardize the clients data. Also keeping toshiba on the radar as the investor hopes to derail and take over the chip equipment maker nuclear technology. Also a subsidiary may have misreported ¥20 billion in sales. Toyota is in view after investing another 700 million into its American Factory in indiana and boosting production of suvs and trucks which would affect output in texas and mexico. Advisoryming up, this director joins us to talk about possible contradictions amid Strong Performance for the asx 200. A little bit and after that, our interview with one of the worlds biggest Agricultural Commodity traders. The ceo joins us later on daybreak asia. You want to catch our interviews at davos this week. We are joined by the heads of the new york stock exchange, the nasdaq and the hong kong exchange. This is bloomberg. Mberg. A very good morning. Im haidi stroudwatts in sydney. Asias markets have just opened for trade. Shery good evening Global Headquarters in new york. Im shery ahn. Sophie im Sophie Kamaruddin in hong kong. Welcome to bloomberg daybreak asia. Haidi our top stories this monday. Anger a wreps again in hong kong as a protest rally turns violent. The government again rejects demands for a universal suffrage. A libyan blockade may smash up about 800,000 arrows of oil a day. Shery the faraway cfo heads for court in vancouver later. The chances of beating extradition to the u. S. Are put as one in 100. Japan and south korea coming online. Lets get straight to the market action. Sophie this morning, tokyo stocks gaining ground. Nikkei 2 10 of 1 . Today will watch boj bond by action in a short and come ahead of the Central Bank Policy decision on tuesday expected to standpat by raising the growth forecast given that fiscal status is raising the output. This morning, cost be gaining kospi gaining. Our bshares are gaining ground, expected a rally. 200 looking overheated with a 14 day rsi. The aussie Dollar Holding Steady below 69 this morning. Thats after a threeweek drop for the currency. Lets check in on snp this morning. In asia trade, a slight tick higher while treasury futures are steady with u. S. Markets closed on monday. We are seeing a jump in crude gainingbrent and wti with the advance given the destruction to libyan and Iraqi Oil Output seem to be temporary. A quick check on the offshore yuan below 687 after an eight week run. We do have some optimism given the indicators it is looking positive for the chinese economy. Haidi lets get to first word news with paul allen here in sydney. Paul the bodies of the ukrainian victims of the plane crash in iran are flown back home. They were among the 176 people who died when the plane was brought down by a missile january 8. Immediates it has no plans to release the black box recorders to ukraine or any other country, contradicting earlier statements about releasing it. China says the new stars like virus that has killed two people and sickened dozens more is still preventable. There were 17 new confirmed cases, bringing the total to 62 p or the source of the virus is unknown. Authorities are seeking to reassure the public as hundreds of millions prepared to travel as of the Lunar New Year holiday. The volcano in the philippines continues to spew smoke and ash. To belent activity seems falling but seismologists say the drying of the crater lake and the earthquakes indicate the magma is rising and a devastating explosion could be days or hours away. The years first tennis major starts later monday and australia, and it may be halted by air pollution from the worst bushfires in decades. Organizers of the Australian Open are monitoring air quality continuously, after qualifying matches were delayed last week and some players collapsed with breathing problems. Australia has an air quality scale of one to five. They say game will be halted if measurements reach level four. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im paul allen this is bloomberg. Shery the next two weeks sees about 300 companies on the ms ci asiapacific report earnings. Lets go back to sophie for the bigger picture. Sophie lets show you a snapshot of the direction of global earnings. As you can see on the chart, 2017 and 2018, earnings upgrades , but 20 was opposite with a trade and growing global little a lot of auto the asiapacific index has been trading higher since the end of last year relative to benchmarks in the u. S. And europe. Holding up the board here to check in on what the earnings outlook looks like across the region, south korea expected to come top of class in the region with forecast Earnings Growth of 2020. 32 in this is on the back of that the in that many analysts have cited that tech will continue to drive growth in asia this year. Hong kong however is projected to be the worst performer in the region, companies, particularly retail, are suffering following months of protests. Corporate earnings in hong kong expected to be a negative territory this year. Haidi thank you so much. Lets take a look at earnings. Our next guest is also concerned the asx Strong Performance is at odds with valuations. The associates director of Family Wealth management at dixon advisory. We will Start Talking a little more regionally, but lets take a quick look at australia. Are in overbought territory for the First Time Since july. Eighth straight sessions of record highs when it comes to wall street. Are we getting a bit overheated given that other than hong kong, australia is expected to be the weak spot in this earnings session in asia . That certainly seems to be the case. We have reached the 7000 point milestone and we had the best start to january since 1983. Thats fueled by not only the phase one trade deal but also the fact that we have seen Interest Rate cuts over the course of 2019. Thats likely to continue because we have one more Interest Rate uncut on the cards i the end of june. Ands really out of kilter at odds with the weakening economic climate here in australia and also the lackluster Earnings Growth. We have seen a few key red flags today. We have seen earnings downgrades from Companies Like mosaic group. Weve also got very high valuations, the highest since 2001, and no real pickup in Consumer Spending despite the tax rebates and Interest Rate cuts. We would encourage investors to be very selective when it comes to investing in the aussie share market. Haidi we keep talking about the rotation to value which hasnt materialized across developed markets. Valuations byt almost every metric would look quite pricey, but you have investors thinking we are highs, if i record dont have money in this market, then maybe i should still be adding to my position . The fear of leasing out . Yes. Thats the case with australian shares. They are an integral part of our portfolio. Nonetheless, we would encourage investors to look at offshore, so companies in the news this week, reaching above 300, as well as the best performance over the last decade, there are companies also like goodman growth and a wrister that have a portion of revenues from overseas markets. In that regard, we would encourage investors to look at domestically focused companies, revenues from overseas, and other examples, but nonetheless has twice the Earnings Growth. Shery are you looking at overseas markets like the u. S. . When we talk about rich valuations, you cant compare to the s p 500 index. This gt be chart showing the u. S. Premium at the moment at record highs versus the rest of the world. What are the risks of investing in this frothy environment . As you said, the u. S. Share market is also at a record high. Isike australia, that underpinned by very strong consumption and positive economic fundamentals. That being said, the real risk for the u. S. Share market as of course the fact that we are coming to the end of this stimulus process with the Federal Reserve for one more Interest Rate cut this year. Investors could be seeing a repeat of 2018 with investors starting to fret and worry about the policy reversal and potential for tightening in the future. That is sort of the key risk to the u. S. Market. The president ial election is coming up in november. The impeachment process really isnt weighing on the u. S. Markets, but the other key things occurring at the moment, we are closely monitoring u. S. Profit margins to see if theres any pressure coming through from increased labor and cost as a result of those tariffs. Shery is this still the right time to invest on the american has been when this going on the entire year of 2019 . We certainly shifted our focus when it comes to the consumer, more so to the asian region. We know the easing trade tensions and also the recovery in industrial production, and therefore the Global Economy will play out quite well for the asian region. China,larly focusing on the growing middle class is accumulating wealth at the fastest rate around the world, so the cyclical sectors such as entertainment, hospitality, and tourism will perform quite well, but we expect more so the main beneficiary to be asian tech stocks. Companies based in china, taiwan, and korea that the market leaders now, 5g, artificial intelligence, and ecommerce, for example. If we are focusing on the consumer, the focus is shifting towards asia rather than the u. S. Consumer. Shery thank you so much for joining us, alice browne, dixon advisory associate director for Family Wealth management. Breaking news out of south korea. Samsung carrying an executive researcher restructure. Moon will be leaving the smartphone business. That is the crown jewel of the Smartphone Samsung electronics. He joined the company in 1997 as an injury or about engineer. This executive shuffle also. Ffecting other people while the business now will be division, moonm will leave the Samsung Electronics smartphone division. We are seeing Market Reaction swiftly to the surging at the moment. Sophie we are seeing shares of samsung climbed to if fresh 52,001. Igh topping this on the back of that appointment and also head of the electronic maker sales report due out january 30. The final results are due that day. Lets check in on another mover. We are highlighting toshiba, earlier falling as much as 5. 6 , including a report that an internal investigation has found one subsidiary had ¥20 billion in missed reported sales involving suspicious transaction. Haidi Sophie Kamaruddin in hong kong. Still had, an exclusive interview with the Olam International cofounder and group ceo, sunny george verghese. The company is dividing up its business. Shery up next, the latest from hong kong after the latest protest rally turned violent. This is bloomberg. Shery you are watching bloomberg daybreak asia. Unrest as we returned to hong kong after a rally in the Central Business district turned valeant violent. Protesters were ordered to disburse. Stephen engle joins us. Tell us what happened. Same, evenore of the though there was a bit of a lull that lead people into a false sense of security that things might be improving, it came back with a roar yesterday. There was Police Gathering here yesterday. En as the afternoon wore on, the police started ordering people to disburse, to go home, to leave. Some outliers kind of went beyond the approved protest zone. There was some violence. Some Police Officers were injured. A few protesters were also injured. There was tear gas fired by the police. Also yet late yesterday, we are hearing from the police that at least four bombs were thrown off into the police station. We are hearing in central hong kong, the center of the business district, the upper center of the incident yesterday. Basically the organizers called this rally to bring back global attention to the plight of hong kong after what they felt was sidelined a little bit because of the lull, but also because of the elections and developments in iran. They wanted to put it back in front of newspapers. Shery with the rallys continuing, any sign of progress by those demands from protesters . Reporter not at all. It will be interesting. We talk about how hong kong, the protesters want this back on the front page as well. Carrie lam is heading to davos for the World Economic forum where she would likely send a message that hong kong is trying to get back to regular business. However, the protesters want to keep her feet to the fire on the main demands. The crux of that is the pursuit of universal suffrage for hong kong citizens to choose their chief executive. The government put out a lengthy statement late yesterday saying the atmosphere, the political atmosphere right now, is not right, not harmonious, and there is no mutual trust right now, so that is not conducive to implementing basic reforms to the basic law here, the constitution, which promises the ultimate aim, the ultimate goal, which is universal suffrage. But given the climate, the government put out that lengthy statement saying now is not the time. Haidi doesnt seem to be middle ground at all. Thank you for that. Stephen engle in hong kong. A reminder, we are getting jobless rates from hong kong for the month of december out today as well. Cfo is set to appear in a Vancouver Court monday for the formal start of extradition hearings. She was arrested in canada 13 months ago at the request of the u. S. , where she is a cruised accused of wire fraud and conspiracy. Ben cooper. Us from what are we expecting . Reporter this is focused on the question of double criminality. The canadian judges trying to answer the question of is the crime that she allegedly committed, is that also a crime in canada . The allegations are that she had deliberately misled about the relationship between huawei and sky, a hong kong operation in iran, and that this violated sanctions, and the u. S. Contends that she deliberately misled them. Cant beers argued she extradited based on that claim because that violation is not considered a crime in canada, but the canadian prosecutors counter that with the arguments that the underlying behavior is an offense because she was committing bank fraud fraud by lying to hsbc. Sticking potential point here in this case is that most alleged misconduct did not take place in the u. S. Or canada, but it actually heavily rests on a 2013 meeting at a hong kong house between her and hsbc banker. If the canadian judge determines at this hearing that it does pass the test of double criminality, we, will see this go into the next phase one of many more to come. Shery so the chinau. S. Trade war to be on pause. Does this mean tech tensions and the National Security concerns are here to stay . Reporter even though the phase one trade deal has been signed, this could have implications for negotiations. Of we have heard many u. S. Officials say in the past that this is a separate National Security issue, but President Trump has said before that he would intervene in this issue if it could help him reach a trade deal. This is very significant when it comes to china and canada relations, which have dramatically deteriorated since the arrest about 13 months ago. At the time, china threatened grave consequences, and days later, china arrested two canadians, a former diplomat and a businessman on charges of espionage. That was largely seen as retaliation. In addition, china has also put two canadians on death row. They have halted billions of dollars in agricultural imports from canada. The results of this could have broad implications for geopolitical relationships. In addition, this is also seen as part of the broad crackdown from the u. S. On huawei. You have huawei on the blacklist, the u. S. Government trying to expand that blacklist more products that cannot be sold to huawei. In addition, you have the u. S. Trying to encourage allies to ban huawei from its 5g network. You also have a group of bipartisan senators trying to fund a domestic or western alternative to huawei when it comes to 5g. The implications of this are quite broad. Shery shery our china correspondent in beijing, thank you. Breaking news. Toshiba machine surging after murakami made an offer. He is japans best known activist investor. Making a tender offer for toshiba machine and the stock rising. Sophie has the latest. Sophie with that, toshiba machine jumping as much as 50 after that offer, just hours after they agreed to tender shares. It has been a controversial takeover battle. They did not give an offer private price or indication, but they said it would begin january 21. This is bloomberg. Haidi oil is on the rise amid supply disruptions and political instability in libya and iraq. In terms of the impact, a lot of analysts are saying this is not going to be as impactful as previous disruptions we have seen in the last six months or so. Reporter thats right. For once, it is not u. S. And iran tensions driving this, there are tensions in other parts of the region, libya and iraq. Its possible this could be a fleeting impact. Its probably too early to say. Whats happened is the libyan commander has blocked oil exports. That is a show of strength ahead of a big meeting in germany. Whether that will have the desired effect, it remains to be seen. Some commentators saying it with the germans trying to broker this deal. In the shortterm, it has taken 800,000 barrels of production from libya out of the market with a sharp impact on prices. We have seen them up about as much as 2 . A lot can depend on how the meeting goes later. Shery this of course adding to the fact that we are seeing iraqi protests continuing. How significant is their output to the broader picture, and how much could this affect how long the rally could continue . Toorter it is important point out we also have disruptions in iraq that have taken out one oilfield and potentially another one also. Iraq is a major producer. Theres also ongoing doubts about compliance with opec production cuts. All of this place into a positive supply dynamic for the market. On the flipside of that, i would caution what weve seen recently is u. S. Crude inventory showing considerable builds. Expectations will continue. If we could get another strong rise in u. S. Crude, that could sap strength out of the rally. In the meantime, the market will be focused on the protest and escalation to could add to upside pressure. Shery thank you. Lets get a quick check of the latest business flash headlines. South africa says its working on solutions for the National Airline after failing to pay about 140 million in emergency funding. Local lenders agreed to provide a similar some last month, while south africans are finding ways to keep flying. The government said he would match that amount. They haved to do so, been in bankruptcy protection since last month. Haidi Deutsche Bank is cutting the bonus at its Investment Bank by about 30 after a tumultuous year that saw the lender embark on a major restructuring. The ceo is caught between the pledge to cut costs below 24 billion while also needing to obtain sellers and appease regulators. Shery indias largest private lender has had net income rising 33 to 1 billion in the three months through december compared to 790 billion a year ago. Largely hdf c has largely avoided this market. This is bloomberg. When you move homes, you move more than just yourself. Thats why xfinity has made taking your internet and tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Asia. This is daybreak i am paul allen. Violence in beirut with police and protesters clashing outside parliament. More than 100 people were injured according to lebanese authorities and the red cross. This comes at a worsening financial crisis and the continuing impasse over the formation of a new government. Demonstrators say the political elite is ignoring them. The Hong Kong Government rejected protester demands for universal suffrage after a rally in the Central Business district turned difficult violence. Police ordered it to end early, saying officers have been attacked by protesters who went beyond the approved area. This is the eighth month of continued unrest in hong kong. The first tennis majors start later monday in australia and play could be halted because of bushfire pollution. Organizers are monitoring air quality continuously after qualifying matches were delayed last week and some players collapsed with breathing problems. They have an air quality scale of one to five and games will be halted if it reaches level four. Spacex one step closer to a aftercrewed flight passing a major safety test showing it can abort a mission if something goes wrong. Elon musk says it is perfect and there could be a manned launch sometime after the a number of parachutes are required for a crewed mission. Global news 24 hours a day on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am paul allen. This is bloomberg. Green. Markets in the lets go to sophie. Stocks arean extending gains after a seven week advance. We are being led higher by south korea, the caspi the kospi gaining following samsungs new chief. Broadly speaking we are seeing currency markets looking little changed with volatility at multiyear lows. Lets check in on oil this morning. Brent and wti rising more than 1 amid tensions in libya and iraq disrupting production. Reaction not a start comparing to the disruptions to the saudi oil in september. We are seeing wti paring its jump of 2 . And one person says this is a policy related disruption in libya. There could be a quick turnaround if there is a political solution. Sophie in hong kong. Singapore is planning to reorganize its portfolio into agricultural business divisions. They are eyeing potential sales sells. Joining us is the cofounder and group ceo. Right to have you with us. Why now . Thank you for having me. Almost exactly a year ago, we launched a new Strategic Plan extending from 2019 to 2024. Theere trying to reimagine trends. Were we affected those, we on diverse and different teams. We were embarking on an exercise to see how we could build on the new Strategic Plan in terms of capitalizing on these diverse trends, one of which was about the growing predisposition on the part of consumers to eat food that was more nutritious, sustainable, natural, value added. The other was really emerging markets of asia and asset classes, growing demand for fiber including a changing dietary habit of the populations because of the growing middle class, to move from carbohydrates to protein. So this reorganization into entitiesnew, distinct is really playing into this so that we can signify our portfolio, sharpen our focus and have the opportunity of attracting investors who believe in these teams completely and thereby potentially [indiscernible] businesses down the road and lift these businesses and create additional Growth Capital for further profitable growth and maximizing longterm value. Haidi is there a time frame with regard to a potential ipo . Isso this execution plan going to be done in four steps. The first is resubmitting the business which we are doing today. The second is organizing in terms of operations in the new operating groups or entities. The third is [indiscernible] the fourth is ipo. I think the whole process will be completed and we will do a sequencing of the updated as this is between 18 and 36 months to do the first one and complete the second one. The time range is in that horizon. What are some of the factors that will lead you to pull the trigger . There are various factors. One is our assumption these are two divers and separate teams and there are investors who believe in the teams and by attracting the right kind of. Nvestors into the portfolio we believe we will be better valued. Secondly by doing the ipo, will be able to raise additional Growth Capital we can reinvest. Conditions would be us being able to evaluate the thesis and able to establish we can get the materials, significant uplift in valuation by getting the right kind of investors, raising Growth Capital, accelerating and going faster and quicker in capitalizing on these strengths. If you look at the first entity which is food ingredients, it consists of market leading global businesses like cocoa, coffee and dairy. And the on trent commodities that sits in the sweet spot of the growing consumer consensus to eat products that are healthy , nutritious, sustainable, traceable and natural. The second growth which is grains business, animal feed business, protein, rice, cotton and Commodity Financial Services business, play on the growing inand for protein and fiber emerging markets. We have developed the capabilities and assets that allow us to get investors interested to participate. If you bring in the right investors, we will be better valued. The timeframe is between 18 and 36 months to complete the listings. Shery what about if thomas and mitsubishi, where do they play into this . Unlock hidden value and eliminate value in the business. It will accelerate profitable growth between longterm value. I am confident that all our shareholders will support this plan. I cant speak on behalf of of our shareholders. They will speak for themselves. As a board, we are very confident that this plan will unlock longterm value and therefore we will have the food back in the support of key shareholders. Your expectation they will stay invested in the group as a whole, or that they will become just two different entities . I think they will remain invested in the group as a whole. I feel confident that they will see this as unlocking a lot of value for the group as a whole. Last while you divested some various assets, water rights in australia and processing facilities in the u. S. Do you see more divestments as part of this overhaul . Yes. When we announced this strategic four we said there were pathways to execute this and to generate the goals and targets we had set for us. One of which, we wanted to streamline our portfolio. That meant out of the 16 platforms we were in, we announced we would list four of those platforms, and we would divest part of 25 related assets. In the first year of the plan will be released 700 million of Investment Capital by devasting these. That divesting these. So the latest by 2023, all of these will be liquidated. The existing assets are going to be part of our company. And we will hold the ingredients. Nd the two new entities but it will also be responsible for the divestment of the existing assets, because it will take gestating assets like the farm plantation business in cap , logistics in africa, and there is the incubator for engine two. Our new platform for growth. It will provide the parenting advantage as well as provide shared services to osi and oga to optimize. So the divestment is going ahead of plan. The first tier of limitation. Haidi you have said all along said olam hasnt been affected by the bushfires, but you are part of a working group looking at the impacts of sustainable expansion and growth in the aggro sector. What does that look like . What projects are underway given you have written and spoken able toe need to be produce food and find new food sources in an era of Climate Change, and when resources are coming under pressure . I have spoken about it, not just spoken about it, but if you look at the various initiatives, the sustainability at the heart of our business, it is also a differentiator. Apart from being a key source of inspiration our employees. People come to work because they feel the work in the company is going to make a difference for the global food and Agriculture Sector and to the world. Livingave announced olam landscapes policy where we are trying to regenerate not just farms and sourcing operations but also in the landscapes in which we operate. We are focused on improving soil carbon, focused on mitigating the impacts of Climate Change. We are focused on water stewardship. We want to maximize a drop of water. In australia, the fact we saw the highsecurity water we have the opportunity to have access to that because we sold it to the canadian pension fund. In australia, the deficiency is between 18 . We put sensors on the trees that we canto detect target irrigation for the time and to those that require the water. Similarly in our californian operations, we have red onions for dehydration with a solid content of dust we have br we have bred onions for dehydration. Aboute land to do that, i half. Reduced. Ares we have we have also launched a product running out of time, but i want to get your take on the huge amounts of commodity purchases. Is that something that could affect your business . Quickly. We have limited exposure to wara, and so far the trade has not impacted us significantly. China had a massive duty on inhave a huge footprint australia. We were able to gain market share for armaments in china and flavored of the u. S. To europe and india for example. I think we have navigated that well. We are not doing this because we are under threat. We are not trying to restructure the company into cost savings. There is a opportunity to keep these emerging separate teams. We have the assets and businesses and capabilities to really take advantage of carving the portfolio along these teams so we can attract investors keen on these and be better valued and unlock longterm value. Shery thank you so much for your time. International cofounder and group ceo. We will speak to people from the World Economic forum in davos including the executive of thomas and xiaomi. This is bloomberg. Shery the year of the ratshery will be upon us. It is lining up to be a strong time for the chinese yuan and government bonds. Joining us from hong kong is the Greater China rates and affect strategist. Great to have you with us. The chart on the bloomberg showing already the chinese yuan has been pretty strong, going past the First Quarter forecasts. How much stronger can we go from here . Thank you for having me here. We are expecting the yuan to 6. 7 at the endto of 2020. Another 2. 2 appreciation from the current level. We think the trade deal signing in terms oftive boosting the stability of Exchange Rate in terms of boosting export growth for china for 2020. We are projecting current account surplus at roughly half percent to. 8 of gdp for 2020. On top of that, with china opening up the domestic Financial Market we are expecting bond market inflows to doubles on last years level. That is supportive to the yuan. Shery we talked about the in china, among the concessions beijing made given the phase one trade deal with the u. S. But a lot of those had been foreseen. How much of a difference will it really make especially in 2020 if a lot of the measures dont kick in until later in time . Time beingfor the our forecast of font market in the flow is based upon the stepbystep monthly index, the bond inclusion into the major index. We have bloomberg market spot index. We have to j. P. Morgan global diversified bond index to include renminbi starting from the end of february. We have another major Index Provider to announce a similar renminbi inclusion decision at later part of this year. All of those perhaps will contribute to continue the capital inflows. I share your concern with regard to the opening up policies, especially in the Financial Services sector. If you look at the details for the phase one trade deal, i think the timeline for actual opening up of Financial Services ,ector, security firms insurance companies, by the end of last year, from a domestic policy standpoint, we know the 100 of fully foreignowned Financial Service Companies Regulation will take effect by the end of this year. The phase one trade deal in fact accelerated by eight months to the beginning of april. So i share your concerns of this policy having been announced. Perhaps with uncertainties of implementation but i want to highlight in the phase one trade deal the timeline for such opening up has a uluru and i expect more investment to be. Aid later this year a lot of financial institutions, Financial Service companies have already started the process of setting up a fully owned Financial Service unsure. I expect inflows into Financial Services sector to pick up at the latter half of this year. My forecast of bond market inflow to double, that is based on expectation for index inclusion which already being announced. Theop of that we expect supranational agencies, multilateral agencies, plus for a natural Banks National banks to increase, be bond asset allocation. Are expecting the loan primary to be announced for january from the pboc. Is that going to be impactful given the Chinese New Year . Fall bypect the rate to 25 basis points throughout 2020. In january we have a couple of technical issues. Number one, we have the Chinese New Year. Liquidity tends to be tight. Chinese banks are in the process rateifting ending reference rate from the old policy lending rate to the current lpi rate. That starts march 1. The technicalities of making the transition might also delay some of the cuts in the rate. But on the other hand given the reserve of primary ratio cuts took effect at the beginning of this year, i see there is room for basis point cut in january. Perhaps a 60 chance of a cut. Haidi thank you for joining us. Deutsche bank Greater China fx strategist. Lots more ahead. This is bloomberg. Toshiba is surging after the company saw the best investor planning a tender offer. The jump is the biggest intraday gain since 2008. Lets get to pablo with the details. Probably helps to set the scene. This is a story with a lot of moving parts. It started late last year when corporation, a massive conglomeration, decided to bring in several units that are public trading. One of the companies was a Semi Conductor equipment maker called nuclear. New flair. A Company Called point you made an unsupported unsolicited bid for the same state. Toshiba already earned already owned half of it. It was a confusing story but what made it interesting was the famous activist investor in japan already had it stake in new flair. We thought the battle would be between toshiba and hyoya with playerestor as a major but toshiba machine, which also owns a part of new flair, sold its part in toshiba, ending the takeover bid in favor of toshiba. Terms out he was not for new flair after all but he owns a stake in toshiba machine. And he said they are going to make a bid for the whole company. It is not yet quite clear what price or on what conditions but the story is here. Shery how likely could the investor succeed . He has a track record of getting what he wants. He also has a track record of spending time in jail for various dealings. Toshiba machine came out saying they needed at least 60 days to consider his bid. If he proceeds with the tender offer, there will be new shares in what is called a poison pill. It seems like they are set on fighting him. Very interesting story. We are going to watch this develop. Trying to explain the latest on toshiba machine and the activist investor. We will speak to some tech investors in davos later this week including the microsoft representative and facebooks. Haidi we will speak to the hong kong chicken executive carrie lam as a protest continue. We are joined by the prime ministers of spain, the netherlands and jordan. This is bloomberg. It is 9 a. M. In beijing and singapore. Welcome to china open. Im tom mackenzie. Yvonne were counting down to the opening of trade. David your top stories this monday morning. Across the asiapacific extending their rally, rising after seven straight weeks of gains. Oil is also on the up in turmoil in iraq and libya. Anger a wreps hong kong. The City Government again rejects demands for international suffrage. Cases soaring ahead of the