That is half a percent difference with the strong reading of the manufacturing base. Reaction tot is a pmi. The crucial figure to figure out is data. [indiscernible] china above the gain line. Hong kong above the gamelan. And look at australia. Those thanks to the pmi. Data from china has been high on the agenda for our guests this morning. The economy is generally in good health. Fairly broadbased improvement. There was a rebound in output. We saw a continued expansion in export orders and an acceleration in new orders in general. Since the economy it seems the economy has turned the corner. There will be questions over the sustainability and the general strength of the recovery. Richard gibb is mccourys head of economics. He is less optimistic. We are not impressed really by the many stimulus and the very targeted [indiscernible] we think it will need to be broad base. And more concerned about chinas sluggish receptor. Property sector. A very interesting point is we are entering an interesting phase in the property space. In the month of may for the first time, we see prices coming down. Will be painful. Prices will come down. We will see some elasticity and volume picking up again. 2012, we had the same situation. It lasted two to three quarters before the momentum in gdp growth started again. On asiais todays word from china. A new poll suggesting japanese voters are losing patience with shinzo abe. Some of the details, lets talk a little bit about this. This is an asahi poll released today. His supporters followed to 43 . Amines that more than half of the people asked that means that more than half of the people who responded to the poll are in opposition. This is a hot button issue. Shinzo abe has championed a nationalistic tone. He has taken china to task for the maritime disputes. Japansants to bolster defense stance amid this territorial dispute. If you look at the poll response, asahi, 43 in support of it, 66 say no collective selfdefense. In a separate kyoto poll also conducted june 21 and 20 seconds and a 55 oppose the defense bush. In with a wave of popularity and so much was expected of him. And still so much expected, i suppose. One of the things perhaps not mentioned is that what he is trying to do is get peoples wages up. That hasnt really worked out. It certainly hasnt. And the economy is one of the low points in his poll. More than half do not have confidence in his economic it was abenomics. The other tarot, so to speak, which we are still waiting on arrow, so tothird speak, which we are still waiting on those reforms. Of course, one of the first things that happened when he downin was to send the yen Something Like 16 . But it started to haul that stuff all ahead of that but it started to fall ahead of that. Is an expensive place to visit. Perhaps the Real Estate Market is not as expensive as it used to be. By ford taurus, it is an expensive place to stay in a hotel. Forort tourists but tourists, it is an expensive place to stay in a hotel. We know the japanese are huge travelers. Given the week yen and that wages have not kept pace and the sales tax has gone up, more people are choosing to stay at home. Guess who is going to japan in the highest numbers. People from taiwan, hong kong, korea. I thought you were going to say that you were. [laughter] i would love to. It is a good place to visit. Word well, the focus being on japan, the Traditional Games space is the ball. Lets find out what is is pinball. Lets find out what is happening. The government gives an the government taketh away. They must get revenue somehow. They go for the film lawmakers pinball they go for the makers again. Sega sammy makes these pachinko games and other pinball games. Shares have fallen by almost four percent. Sankyo also falling but off the lows now. Then you have heiwa also falling by 1. 7 . They reopen again in half an hours time but we see them suffering. If they do tax these companies, one of the biggest casualties will be the top line including the margins. Reports are coming out that there will be a tax of pinball makers. Lets take a look at some of todays other top stories. Ge is a step closer to its biggest acquisition ever. It cleared the biggest the last hurdle ever for Alstom Energy assets after agreeing to sell a stake to the french government. By 20 stake is a condition france to seal the deal. The state auditor found National Petroleum corp. Miscalculated gas sales and failed to develop a gas project on time after receiving government approval. Then built a gas Storage Facility in the northeast without permission. The latest development in iraq, militant forces claimed to have seize control of border crossings along the frontiers with the jordan and syria. Wideing continues across parts of the north including in the city of mozilla which fell to insurgents two weeks ago city of mosul which fell to insurgents two weeks ago. We will in the show, discuss the growing humanitarian crisis in iraq. In about 20 minutes at 11 30ird or singapore hong kong time. Minister tries to gain a repeal of australias carbon levy. We will be heading to sydney for details. Plus moral what those manufacturing figures from china tell us about the countrys slowdown. Interesting news from japan and china this morning. Lets bring adrian mowat. Lets start with china. We are now in expansion territory when it comes to hsbc. That is very good news for the hsbc pmi. This is consistent with what we are seeing out of taiwan at the moment. We got very good performance out of taiwan Tech Companies both in share prices and sales. If you think about where these guys are located, many are located in china, particularly in the region surveyed by that pmi. Ahead of the cpi figures coming out this friday at of the glue isoks like off the rose my comes to shinzo abe. I think we are being a bit unfair when it comes to shinzo abe. They have delivered on inflation and growth in real gdp. That is what they set out to do. They did not say they would get 2 cpi immediately. I think investors are being overly critical or may be asking too much from policymakers that are delivering what they promised to deliver. Onand maybe putting pressure boj and abe, abe to get the third arrow and place. We had contraction activity in april as the sales tax wasnt lamented. But it was implemented. But if we look at the sequential, it is up from the april lows. I think what is going on with china is very helpful. There is a lot of concern about the chinese economic slowdown. Much concern about the rollover of trust products, management products. We seem to be very much into the extentandpretend mode. , the loanproduct comes to maturity, there isnt the cash there to repay the loan. So you extend the loan and capitalize on we pretend it is a good loan. And pretend that it is not a problem at all. Kicking the can is a popular policy tool. It would be unfair to say that it is just the chinese who do it. True enough. But for emerging markets, this means that china can prop up china is no longer a risk to the bull market. Whether be it indonesia, the philippines, india or taiwan tech. China has a little bit of a catch up. Then these countries with better macroeconomic stories continue to lead the market. What do you like in terms of something you did not like last year . Recently upgraded russia to overweight. Ea rt with russia over we started the year with russia overweight. It looks as if the tension between ukraine and russia are diminishing. We also need to hedge ourselves a bit because with the problems in iraq, we want to make sure that the portfolio has some hedges in it for higher oil prices. So going prorussia is a good sign. We cut korea from an overweight down to a neutral position. Woulde hoping that korea perform in line with taiwan. But some of the specific issues around the Bigger Companies in korea is holding that back. Does the south korea story discourage you . The concerns with korea have not been quite company specific. Elections juste finished and there are some concerns that maybe they reforms, there is not support for the kind of reforms that south korea has wanted to extend. I have i am a bit cynical plans,he reform reforming its labor markets. I dont think there is any political will to actually do those things. A more flexible labor market, one where it is easier to create jobs but also to retrench jobs as necessary. That is a big issue in korea. We also have a relatively protected economy as well. True enough. Thank u so much for that. Lets thank you so much for that. Lets talk about china and all the rest when we see you back. Thanks. Now what to [indiscernible] the ipo of go bad pro and we have Economic Data points to dominate the next five trading days. In the coming week on wall street, a key question for investors will be can the s p 500 record rice continue. We will be getting a raft of new economic reports that will certainly play a role. Economists say that this weeks data may show the u. S. Economy shrank in the First Quarter at the fastest pace in five years. U. S. Durable goods probably fell in may while personal spending and home sales rose. That mayrg survey says sales of homes likely climbed at the highest level this year. We will get that data on monday. On tuesday, we will learn about new home sales which are forecast to increase to a fourmulti. Fourmonth high. Wednesday, the highly anticipated ipo for go pro, the cameras used by surfers, skydivers, and other extreme sport enthusiasts. The Company Seeks to raise as much as 427 million. We round out the week with jobs data and confidence data on thursday and friday. Another walks off his hit for sony. Collectinga man 2 was 37 million. Lets have a look at some of the corporate headlines. Boeing may be partially to blame for last years asiana plane crash in san francisco. The final ruling is expected on tuesday. The airplane hit a seawall at the end of the runway and three chinese teenage girls were killed. Property Companies Among the top stocks this year. This afternoon home prices fell. First time that has happened since 2012. For the second time, one of japans biggest wireless operators are in the news. Million, the app present news content to media outlets. Thatude is on the rise and means rate costs. Joseph joins us now for more. You just completed your outlook for power utilities. How does the picture change at all with the middle east coming online with serious implications . Good question. Energy prices dont flap uncertainty and now the geopolitical situation in the middle east translates into uncertainty. The second half for the utilities in asia was already not a little bit extremely buoyant so to state because thermal coal prices are expected to come up very slowly in the next few quarters, which is that for utilities, especially those account pass through. Now you have Oil Prices Going up. Although there is not a lot of oil per se used in asia, they use gas and gas rices are indexed. Up, then prices come gas prices will come up and it will be a double whammy. You will get that Inflationary Pressure at least for consumers and for power utilities. Yes, the companies that cannot pass it through easily, like the Chinese Companies or the korean companies, this is bad for earnings. For those companies that can pass it through, like the hong kong utilities are the japanese utilities, then the consumer gets hit. Not just me, but the whole industrial complex. In japan, they will have to pay more for the electric power. They are already pay more because of the weaker yen. Talk about the gdp growth which ties into the larger growth in utilities but we have not seen a robust gdp growth in a letter countries here in asia. Thats right. The market Consensus Forecast for gdp has come down. What happens with gdp is electric power actually moves in tandem with gdp into in developed entries. In developed countries. With forecasts coming down, again, volume growth is not buoyant. What does that mean for cost for utilities . Are on theues vulnerable side and your costs may rise. The only bright side is Interest Rates are expected for most Asian Countries to remain fairly flat. So that is the nine for utilities because they have to invest a lot of money. So there is a lot of capital expenditure, a lot of borrowing. So Interest Rates are a key indicator. So that is a little bit positive. But at the end of the day, it is feel, feel, kewell feel. A lot of ipos coming out. Any in the utility sector . Powerre are quite a few a few Nuclear Power related ipos coming online and a couple of engineering companies. Of course, the markets are not that buoyant for utilities. They may consider the signing. But for now, the filing should be for the second part of the year. Thank you so much. India, looking at futures, we did see losses in the section on friday. But we could be seeing some gains taking back some of that negativity. Lets get out to sidney. Asiapacific on the way up overall. Sydney is one of the key drivers. The top bit of news is tony abbott trying to get an abolition of the carbon tax or parliament once again. A quick look. We do see the kospi higher by. 4 . Chinese manufacturing expanding more than expected. We were expecting contraction, but hsbc showed expansion. In fact, chinese equities largely to the upside. We have the tokyo reopened coming up on the other side of this break. Refugees flee and hundreds of thousands as the insurgency gains ground in iraq. Questions about singapores ability to fight back. And taxing times in australia. Tony abbott tries again to repeal the carbon levy. Lets have a look at some of the world news. A series ofarried airstrikes in syria that left a teenager dead. The 15yearold boy died and his father and another person were wounded in what has been described as a project t a projectile. Russia supports a ceasefire in endine and negotiating an to the deadly violence. President putin bank says any solution must include the rights of russian speaking residents in ukraine. The south korea military says it is close to arresting a soldier who killed five of his comrades over the weekend. They say the sergeant was armed with grenades and a rifle. Seven other soldiers were wounded on saturday night. The sergeants parents have been brought in to persuade him to surrender. China has reaffirmed its policy of direct negotiations on maritime disputes, rejecting calls for international arbitration. Beijing says it will uphold its territorial claims, further raising tensions with japan, vietnam, and the philippines. Hanoi claims that a chinese ship ship near sunk a the oil rig. Militant forces claiming to have seized control of border crossings along the frontiers of jordan and syria. Fighting continues in parts of the north on the west, including mosul which fell two weeks ago. Is sending 300 advisors but has ruled out putting troops back onto the ground in iraq. Baghdad releasing pictures showing the Iraqi Air Force surrounding above the refinery. It covers several hundred square kilometers in northern iraq. It produces fuel for domestic customers while southern oil output remains unaffected. Singapore has experienced several cyber attacks. It seems like they can i get this under control. Why not . Can you believe there is not enough people skilled enough to fight hackers. There is a small pool of them global early globally and every government wants sever Security Experts. It is posing a huge problem for singapore, a country that is linking of the facilities, infrastructure for realtime data. Fromed better protection cyber threats, a system to detect, respond, but that is not the case. The number of Cyber Security experts here is falling. Last year, we had 1200. The year before, 1500. In that time, threats have risen. Stolen ina was singapore. More than 500 singass accounts s accounts weres compromised. The attacks are more targeted. Cyber Security Experts definitely in demand. What is the cost of the cyberattacks here in monetary terms . Billions. They are expensive. Cyber crimes costing singapore about a billion dollars. The bigger you are, the bigger the threat and loss. The worlds four largest economies, the likes of the u. S. , china, japan, germany, they collectively lost 200 billion. And they need to part with even more money if they want to combat cyber crimes. Heres what the World Economic forum is saying. Delay adopting Cyber Security measures in the world could lose 3 trillion in economic values in just six years. The issue is not just a lack of security expertise. But it is awareness as well. Online threats have become more sophisticated. But organizations lack awareness even urgency. Thank you so much. The Australian Government is again trying to get rid of the carbon tax. Tony abbott reintroducing a repeal bill to parliament. Opposition stalled with us on the last time. Im sure that tony abbott is more confident this time. That is why it is read presented it is represented. It is no guarantee that the repeal will be able to proceed without a couple of hitches. Up until now, the senate has been controlled by the labor and the greens who have stated their opposition. But a new senate will be in place from july 1. That is why tony abbott has decided to have another go. He reintroduced this legislation a little over 90 minutes ago to the parliament describing the carbon tax as a 9 billion hit to the australian economy. He campaigned on repealing it, claiming he has a hand it to do so. Well a mandate to do so. Power will be held by a rather eclectic group as thependents as well live, united party. Clive palmer united party. Any passage of this repeal legislation will need to support. Clive palmer has not stated where he stands on the petition. He is a code for he is a colorful character. So you can expect a bit of horsetrading. Thanks a lot. To the other big story we are tracking, a chinese manufacturing gauge rose to a sevenmonth high in june, cating the government well use a prize at the numbers . It was an upside surprise. The first positive rating for the hsbc market pmi so far this year. The way i read it is that chinas government took significant steps to underpin growth in may. Monetaryal bank eased conditions, making it easier for the banks to lend. The ministry of finance steppedup public spending. The june data seems to be showing that this is already starting to have a little positive effect on chinas economy. The Manufacturing Sector humming back to life. The hope is we will see more stability for chinas economy over the summer. As an economist for bloomberg, what do you see as the sectors that play into this data . Property, we have all been watching that very closely. How does that factor in . I think that is the big unknown for chinas economy over the next ticks months. In the first half the next six months. 2014, werst half of saw slightly contracting real estate sales. The real estate sector is the biggest driving demand in the chinese economy. Construction has also started to contract. We will see considerable downward pressure on the chinese economy in the second half. That could be the thing that pushes chinas chinas government to use further steps. Coming up next, we are going to have more on this latest snapshot of the chinese economy in our all in discussion. Welcome back. We wanted to save most of the bulk of china discussion with mr. Iron ore himself from australia. [laughter] the other daying that he thinks everybody should get over this. In australia, the mining site of thing, the boom is done. If you look at is what is happening with employment in the thestreet, there are plenty of stories of coal mines shutting down, people losing their jobs. The coal industry, there are plenty of stories of coal mines starting to shut down, people losing their jobs. If china is not slowing down as hard as expected, as thomas, maybe theres hope yet. If your Business Plan was extrapolating 10 growth than you and up with 7 overall iron oregrowth, with growing 3 , that does not really work with the Business Plan. The real kicker with the iron ore thing, that number was built in japan. The fact of the matter is, in australias case, it is a highcost country. The aussie dollar like that today. The simple fact of the matter is that the aussie dollar is a killer. You find hong kong relatively cheap. [laughter] i was crying with joy. Is that the first time he had been to a supermarket . A problem facing australia, the highcost as a nation. A great kicker for the region generally, but theres still a lot of [indiscernible] a terrible place to be at the moment. What is a minor to do . Transform to services, but you cant do that that quickly. In the case of australia, they will try to ramp up production in the short term. Case, a highcost nation, you cant do anything. Try to look for industries where you can actually do something. One industry that is not doing too badly at that is buying plasma, things they use in surgery and that type of thing. I thought you were going to sit coffee. [laughter] car production is not working out for australia. Terrible industry. It should have gotten it gotten out of it years ago. Wheeze to pay these horrible terrorists. We used to pay these horrible s. Tarrif market, rather than the economy, has this great benefit of bigger superannuation funds. The stock market seems to throw out cash mainly through dividends but also by stock buybacks. Companies are wellrun. The company is not slowing as much as paper as people feared. We did expect the aussie dollar to weaken so we did have a preference toward the exporters. 88, it it went down to was kind of like, we will look at 80, maybe 75. But then he came to a halt. It is in the range between 92 or 94, thereabouts. Wrong when its far too expensive. In the early 2000s, it was in the low 60s. Australia was a great place to visit. That was when you could actually produce movies like star wars, like the bad version of star wars. Upt was when hollywood was in arms that you could produce movies in canada and australia. That is gone. I have only been in australia once and it was for a wedding in sydney. Greg culture, the country. A nine great culture, the country. A nine dollar ice cream cone. Here is the thing. To downthe rba continue the currency without backing it up and doing some great options . If they were to cut rates, it fuels the Housing Market once more. It is a terrible bounce that Central Banks have at the moment that they are try to stimulate growth. At the same time, they are trying to avoid asset bubbles. What is the most common question youre asked by clients at the moment . Most common question would have been around the Wealth Management trust industry in china. What is going to happen with all the rollovers that occur in the middle of this year . I have to say, one of the problems i have with the emerging markets when talking with local clients is the lack of interest. Global clients are happy with what is going on in the united states, in europe, confused by japan. Markets probably have to look out the window, probably not too much in the morning, and nothing to do an afternoon. Indonesia, does that offer relief for australia as a in cymer destination . In didnt a consumer estimation . Destination,port use consumer potential in indonesia, a major emerging market. If you are living in perth, the closest city is jakarta. It should be a destination. But for australia, the population is small. How do you become a competitive exporter when you dont have the population Critical Mass . The destination for australian Agricultural Products maybe. The huge problem, the australian brief and a Television Program came out that it was terrible and it was a disaster on that front. Ofwhat would it take to sort even out these imbalances for australia . I think it is getting the currency back to the 80 level. I reckon you can look at the u. S. Job market. If the u. S. Dollar was to fall, the heat would come out of it. In the u. S. , we have qualitative easing in japan, the ecb. The backdrop of all of this is still the geopolitical tension. Tos not forget, in addition iraq, what is happening in ukraine and russia. Its not over. And things are not looking that stable in hong kong. Absolutely, 700,000 people in an online poll that is deemed illegal by china. All of this, how does this come to a head in the latter part of the year . Iraq, very focused on talking about that, the situation in ukraine appears to be going in the right direction. There are more conversations between russia and the ukrainian government. Occupy central, it does highlight some of the tensions that we have here with the joint declaration presenting a great novel idea. But there are always going to be tensions in that idea. Have a one country, two systems for 60 years. Its an international treaty. But there are ambiguities in the treaty that allowed the two different size to have different interpretations. We have tensions between hong kong and china about mainland visitors. I think we need to be careful about not allowing these tensions to rise too much. It could a lot of sensitivity in the business community, demonstrations planned for the first of july, how they are perceived globally in terms of the stability of hong kong. Perceived globally or pursued by china . I think more perceived globally. China probably is aware. You talked about three quarters of a Million People voting for how the co is elected. Ok. Jpmorgan. You are watching asia edge. Getting the situation on the ground in iraq, joining us on the line from the kurdish capital is the red cross. Thank you for joining us. Lets find out what the situation is on a humanitarian what arerently and iraqis facing . Continues to be volatile. The number of the displaced people from [indiscernible] people, as you00 probably know. The fighting started in september in december of last year. Can you hear me . Obviously, we have a technical problem at the moment. Only we will try to get back to him once the sound situation we can imagine it is not easy to contact parts of iraq at the moment. Lets look at what is going on market was. Better than expected managers index, the hbc number coming through at 50. 8. That indicates expansion. We were looking for 49. 7. These are the latest numbers and show perhaps a slowdown for the chinese economy may not be as pronounced as perceived by some. Continuing astocks sixweek long rally. Harley davidson doesnt normally come to mind, but they are hoping to change all that when it comes to green energy with a clean new bike that runs on electricity. Bloomberg takes a look at other programming rides you might enjoy. It is a strange one, having a Harley Davidson that does not make that thunderous noise. That is exactly why you would buy a Harley Davidson. The world cup, not great news for south korea. A 42 defeat. Belgian beat russia. The following is a paid program. The opinions and views expressed do not reflect the views of bloomberg. The following is a paid advertisement from starvista entertainment and time life. Listen to the music even the nights are better