Focusing on it. What is the latest and what we know about these images. Images . A it is another clue in mystery that is desperately short of them. This is a french satellite. There are objects floating in the ocean. There are no signs given with the images. They are north of the other satellites. 850cts were discovered kilometers north of the current search area. This is news from the french and a chinese satellite found objects. They found an object that is 22 meters long. It is consistent with the size of a wing. 120e images were taken kilometers south by southwest of where the first satellite images were seen and they are consistent with drift modeling. However, as we were told a short while ago, spotting the objects is the start. The issue is satellite the initial satellite imagery was released four days after the photograph was taken and the thing is that, to get that and report to the public, it takes time. You have to collect the image. You have to process the image. You have to identify the object and, you have to. Of course, these objects drift and they are part of the indian ocean. The challenge is great. The area keeps expanding. We are getting more countries involved in the process. How many planes are in the area . There are more on the way. On sunday, there were eight planes in the search. They search an area of 59,000 square kilometers. It does sound like a lot. When you consider the enormity of the indian ocean, it is not. Chinese ships are on the way and more aircraft from japan, india, and china are joining the search. It looks like the weather is against them. A cyclone is forming in the ocean. That will make a difficult job more difficult. Thank you. Malaysia is responding to flight 70 and it has drawn criticism. Contradictory messages were placed with a streamlined operation. They are declining to comment on the latest images. We are here with the story. You feel for the families here. What frustration for them. You are right. This is a great aviation mystery and satellite images from france could help solve it. Authorities dismissed questions on related close. Heres what happened. Exist if it is not on camera. Will you repeat the statement . Have you seen what the french have found . Sir no. But very briefly. Well explain it . What are you trying to hide . Just read the statement, he says. These responses do not help and there is criticism of how officials are handling the search. They have uncovered nothing and no sightings. Australia is coordinating the operations there. Do we know anything about the satellite images . What we know is from an official who declined to be named. They said that the images were captured on friday and are estimated to be 500 nautical miles north of where the chinese and australian objects were detected on satellites. That the quality of the images were fuzzy and unclear. Thank you. Im keeping up on the ongoing story. Some other stores are making headlines. Asias biggest Refinery Company is seeking 3. 5 and aome is up tad shy of estimates. Ok, the hong kong session. We are watching shares in a Company Selling a 25 stake in the retail division. 7. 5 billionling dollars. They want to take watsons public. Student protesters are invading the taiwanese cabinet. They are campaigning against a wideranging trade deal. Chinese takeover and the chinese president says that abandoning the deal would undermine the economy and Damage International credibility. Started. Pore sessions the nikkei moved and seeing that, of course, it is two thirds of one percent off. Australia is marginal and we have chinese data out in half an hour. That should give us an idea. That is the latest snapshot of the slowing chinese economy. Let us move to the crisis in the roilingthat has been the Global Markets and foreign exchanges. Russian troops are across the eastern border. Leaders are meeting later today in the hague to formulate a response. Let us get the latest developments here. Alk us through what we have president obama is heading to the hague today. The kremlin does not seem deterred. There is a troop buildup along the border of the ukraine. They have supports from france, germany, absolutely. We have seen sanctions. Limited sanctions. We will get to that in a moment. Russian forces stormed the military bases in the last few days. We have seen dramatic pictures from that. They are withdrawing troops from the crimea. V says government in kie they will defend the country. It couldrn is that lead to armed conflict. I believe that these are the bases of Andrews Air Force. That is air force one departing with obama on board. That is what we have at the moment and will be coming through at eight minutes past 9 00 in the evening. At Andrews Air Force base. They have received support from the United Kingdom and they wrote that this is the most serious risk to European Security in the 21st century and the russian troop buildup was called a grave risk. Seek eye ton do not eye on these issues. Will gather in the hague. You have china, japan, European Partners who will be there and map a way forward. We have some sanctions you have said that are being billionairesussian and the inner circle of Vladimir Putin, the russian resident. Is it too early to suggest that they are working in any way . Once they have had a limited impact and it is important to note that these are individual sanctions. Are a billionaire or connected to Vladimir Putin in statesy that the united does not like, you could be subject to a visa ban and you will not be trading traveling to the head states. Some billionaires, including rosenberg, a big name there. Aids,ir putins. And visa andians havingard holders are issues using visa and mastercards. The russian government has complained about this. The European Union is limited in what they can do. Impact embargo would things and you have a banking curve that could hit london. Indeed. There are a number of russian billionaires that have property and accounts there. Certainly. Londonk at the market in and the kremlin appears undeterred. The sanctions are not going to do much to Vladimir Putin and if the u. S. And eu rate of the economy levels sanctions, that l hit and that is a technical definition of a recession. For thethe search malaysian aircraft entering a third week. There are challenges facing this operation. Flights are hampered by conditions. A planes are involved in the operation and they are covering six 2000 square kilometers. Locatethey are unable to the images by satellite. Ever kinds aircraft reconnaissance aircraft. Mh 370 disappeared from the radar on march 8 and nothing has been found and then. China spotted possible debris in the ocean and they try to verify that. Last week, searchers were unable to find the objects. 239 peopleissing and are on board. We are joined by an independent air Safety Consultant and a former member of the ntsb. Thank you for joining us. We do not know what happened to the aircraft. What about the next steps . I know that there are steps taking place and radar data is continuing to be analyzed and theyre trying to extract every little bit of data that they can out of the data that they have collected from the countries. That is going on and the search is refining. Something we can find that will help us concentrate the assets we have in the indian ocean into a narrow area. We have a few weeks left from pinger, as it is called. It is important to zero in on an area and pick up that signal. We have some news on that front and we have heard that we have the navy moving their resources and some assets to this current search to look for or pinger, as you refer to it. They believe that they may be onto a clue in that area. I hope, for the families and the sake of this investigation and malaysians, that we get the box and we put away the cause of this event and having it linger malaysiagovernment of and the families. Absolutely. The families are in purgatory over this. You have been skeptical about some of the information that has come out and the erratic movements of the aircraft. Tell us more. Everybody made a lot of talk about the 45,000 foot altitude that they thought that they saw on the radar and coming down at supersonic speeds to 23,000 feet. We have primary radar, it is not the most reliable and you have the smooth out the high and low points to keep things in perspective. And it a jigsaw puzzle is a difficult jigsaw puzzle to solve. We need to take our time and make sure that we get the clues right. The data has to be analyzed. It is tedious and it will take an art and a skill. It is painful and slow going. Those people have worked hard to get us a location. It is not easy to be in a boat, and the airplane, offshore, looking at an airplane or looking for an airplane. Long should this debris stay on the surface of the sea . Will it sink to the bottom . It depends on what it is. I am amazed at the size of the pieces that they see floating that could be from an airplane. That does notng break up on the ocean will float. One piece ofhat this airplane to be identified. Then, other people will go to work and the people understand ocean currents, wind direction, we record all of that and what is going on in the atmosphere. All that data. And the items of the that were drifting started. Were trying to focus in on a search area for those boxes. Yes. We are getting other debris and a life vest that could come to the surface. They are smaller. Our wooden pallets commonly taken on aircrafts question mark yes. Sometimes, the goods on the palate will float. I have not seen a list of the cargo. We know that it will float. There are many objects on an airplane that would float. Thank you so much for joining from the National Transportation safety board in the united states. Crimeae it along to officially adopting the ruble as of today. They may not be too happy about it when they see how it performs. We have those details next. Good morning. I am john dawson from hong kong. These are your fx headlines. Pushingsanctions are russia towards recession. The ruble is the second worst performer this year. The chinese economy will be on the radar and from the merri figures for march are being released. The economists have the forecast underneatha growth 50 into craig indicates a contraction. The Chinese Government reiterated inflation goals in london. There tohalfway reaching their target. Rightl look at the ruble now. We have ukraine story and look at that. There it is. 36. 2945. The main currency. The other thing were watching out for is the impact of hsbc and manufacturing data that is coming in. Two have a two speed, speed economy and they are for it to not slow as far as fast as many are concerned about. Manufacturing pmi is crucial for the Australian Dollar. Course, the rookie corona mr. Kuroda is talking about the decade of inflation and it is at 102. 35. All of those stories are on the fx markets this morning. Thank you. And talk aboutg stories on our radar. On tuesday, we have all the ball but in the first meeting. There could be an 18 billion offering that is bigger than facebook in 2012. It is a big and important week. The earningd at season is going on and were watching the bank of china on wednesday and the slowest Profit Growth in years. Microsoft will debut a version of office for the ipad and people familiar with all of this said that the software will have limited capabilities that can be upgraded with a subscription. Anger as student step up protests against a trade deal. Hard decisions lay ahead. Thefinal frontier and beaches are empty in myanmar for now. Within a look at what is going on with trading. We have some markets and we had hong kong and china. As have a look at the prospects there. Stocks are rising across the region for a second day. There is a rally in japan and korea today. Manufacturing data out of china is important. We love commodity shares and the Australian Dollar. The index is higher today. The nikkei is up by 1. 3 . Those of the biggest gainers and the real focused real focus is on the numbers out of china. Is expected to show a third month of contraction for manufacturing data. The numbers are critical and i want to bring your attention to what were seeing right now in taiwan and in australia. The composite get underway, we see a start to the recession and we see china moving four percent. There is advance among internet stocks that are making acquisition here and we are hutchison. Following it is off the charts really. Friday, they agreed to pay 5. 7 billion to take a 25 stake in the retailer. Unit andkke biggest we will see the plans for the ipo of the unit. I want to bring it up on an interim basis now that we have a little bit underway. You can take a look and see what they are doing. We updated on hutchison and they dropoffg a steep right now. Look at friday, compared to today. It is four percent lower and the stock fell four percent. Hutchison is the stock to watch today. 5. 7 billion and we saw them today. We get to know a lot more about china. They are down year to date. Numberske a look at the we have the latest set of profits and a slight miss. Theyre looking at it more closely and plan to embrace the government agenda. They are searching for private capital that is not entirely related. It is dependent on state capital. That is right. Andave that effort up 3. 5 they missed estimates. The big blow with the crude Oil Price Falling last year. Crude Oil Prices Fell 20 . They want to see money coming in to offset the crude oil prices that they are targeting. They have a capacity of 1. 8 billion cubic meters a year. Crude. S a supply glut of the outlook was a concern and we have the price from the last year. The share prices are just under this morning. Comparison, they have done the least and 22 . This shows you that they are down because of crude oil prices and outperforming the key rivals. They are down. It is an interesting performer outperforming their rivals. It is because of the shale gas area and the margins. In a drive by beijing to get them to open themselves up to be Market Forces that. Uide these companies private capital does not rely on this. It is an enormous point and a big move forward. It requires tradeoffs and again, the talk about fully embracing this. Asked Christine Lagarde about how confident she is . Whats clearly, the chinese share of Global Responsibility they mustsed and support global good, financial security, environmental sustainability, and improving global rules for the game. Will increase global cooperation. Includestail unit 30,000 petrol stations. They need to embrace the reform and the government is putting money towards that. The money goes to the enterprises and creates a level playing field. It is very good for china inc. Whats move from china to taiwan. Protesters there arent stepping opposition to a trade deal with beijing. They say it will hurt democracy and they say the reforms would lead to an eventual chinese takeover. Earlier, tim said that these are live images of the legislature. This is what tim had to say. Andast night, it escalated the president give a press conference to reporters that paid them lip service and repeated why the pact with china is important. The protesters have a splitter and they went just north of the Legislature Last night. That was after the premiere issue the executive order to effect eva those people. Evict those people. There is a large compound and they started you taking them over the night. I observe people walking out of the compound with injuries and many were dragged. I observed the police using bat ons and riot shields to hit protesters. By 6 00 this morning, the compound have been cleared. I would estimate that 1000 riot police. Report a little while ago. Let us turn to the stories making corporate headlines today. The head of yum brands saw his fault is pay full last year. They fell short of performance chinas and sales from began to slow down in late 2012. Company suppliers were accused on approvedicken levels of antibiotics. Was season 3 million. They have seen more losses this year and they want to boost the brand. They say that phase one of the turnaround is complete. Tiger air is growing their fleet. Valued at under 4 billion and delivery is scheduled for 2018. Those are your top headlines. Is rapidly becoming a major hub for the soda industry. Dreamworks is spending money on properties there. It is important to moviemaking and movie watching. Our chinese correspondent went for a tour. Katzenberg and spielberg may be the original dream team. Later it is katzenberg teaming up to build a compound in shanghai. A this is a chance to build oneofakind cultural and Entertainment Center in the heart of shanghai. But his anger his answer to disneyland. A are complementary and do not compete in any way. The perception is that he is doing what he did 20 years ago. And s taking on Disney Jeffrey Katzenberg called me and said that he could not find a better partner to be working with. We all share one vision. That is to transform the site into the broadwood of china broadway of china. We are in a journal its Cement Factory that is going to be the Dreamworks Center in asia. Industrial style. Reporters could not resist poking around. How do i get down . This is going to be the boardwalk along the river in the new complex. You are going to have to use your imagination. Dreamworks, that is the job that they are in. Many of the structures will be kept and renovated by the time that the center opens. The shanghai disneyland is further along in its development. A similar transformation is happening. Is that is left around here a shop that sells cigarettes. I will be here two months and then i will have to move. There is nobody left and they have all moved out. Built asprojects were worry mounts about the investmentdriven growth. It. Here is a reason for i think that prices were getting crazy. As long as you work with the capital that you think you can afford and do not get yourself in hot water, you will be fine. Off in the distance, the areas around here have factories and a giant shoe. The big Hollywood Studio are leaving their footprint. Oh my. We will watch every step. Right. Coming up next, china has their first Economic Indicator for march and the latest on the factory industry and manufacturing. Were talking to Morgan Stanley about that. A snapshot of the nikkei moving 1. 5 . We have data on chinese manufacturing coming out any moment. Lets have a look at what is happening in sydney. There we go. Slight movement. But look at the singapore session. And therene percent are a slur of figures to be a slew of figures to be analyzed. We are reacting to the number that we just got through. In with this is coming the purchasing manager index figures. This is the number that we had that beat estimates. That was the lowest level in seven months. We have economist expectations pick up. They are coming through here right now and lets get more on this. Economist. Hina any number below 15 indicate contractions and this contraction is more than expected here. I would not read too much into it. It is a marks number. They have a biased towards small and mediumsized enterprises. I would say that it is a better and notr for exploits so much for the country as a whole. The data has been all over. Yes. It has. And tend to be stabilizing i think that this number looks worse than before. I would say that it is going to. Ring out a bad number everybody talks about a slowdown for china. We are doing that because there is a slowdown coming. That is a deep one. We have been on this for a long time. We are seeing financial conditions around this time of the year and it is coming. Deal and a consensus we think that the recovery will come significantly. It takes time to see it and ill emphasize that policy makers are arty having that reaction. Biggestis the second one coming in the union. In a longer run, we think it is harder to say. , rather thanto say the consumer boom. The hope is that it translates. They want to become more consumer related and oriented. From where china is, in terms of the Manufacturing Sector were and the position, it takes time for them to feel this. . We stay there with us we are going to get more. Stocks thatchinese are hard hit. We have an analyst favorite emerging today. There is a tangible reminder of the economic rise. Take one look at the crowded roadways there in beijing. Car ownership is surging in china. There is also gridlocked and pollution. There are less than clear winners between the chinese steel makers. Analysts rated it. Peer ands the global if you take a look of the truck of the day, they compare the contents is sharing to revenue from asia and the united states. They scored 4. 7 in our ranking. Ur for the metal corporation. 3. 8. Er afield, they tied the 3. 5 and 3. 2. They have half the market for automotive. That they are the clear beneficiary of rising vehicle demands and are expected steelw and help the makers are trying to reform businesses. Local companies are continuing to expand. 10 andsales could rise with the automobile manufacturers association. There are headwinds on the marketplace for the chinese Steel Industry and many investors remain skeptical. The top banking regulator said capacity need to cut for the top guidelines. They are strict credit guidelines imposed on polluters. Meanwhile, the price of iron ore has dropped in the past year. There may be a bright spot here. It is all about the sales. Citigroup says that it is the best. That is the Global Outlook for today. Is chinese steelmakers under pressure here. We have data and a flash of pmi data coming in weaker than expected. There is a deeper contraction in reviews the thought in china. A headwindmore and that faces the chinese economy next. Lets go back to the chinese economy. They are weaker than express mated with pmi data. Helen is still with us. Thank you for sticking around. We got your reaction to the numbers stop what about the headwinds facing the economy question mark we associate the financial conditions with dean tight. Tight. G economy isthe real higher than before. It is still slowing down investment. Secondly, if you think about the fiscal policies and Public Sector austerity programs, this is still slowing down the economy. Ill concern is more. Which ones question mark for example, we have a higher spoeected as so reform. Words . Those do we have private capital to go there . A i expect they will. Allre seeing Something Like got police being in charge of lucrative business here. I am sure that there will be more capital that is interested in coming in. What is not necessarily going on is another field. Broad result a happening quickly. Will have to hold up for that. It takes time. Beijing does not move as quickly as others. Thank you. Helen from Morgan Stanley. Lets tell you about a manufacturing data that we had. The manufacturing machine in china is running below capacity and that is according to the flashy numbers. We will look behind them over the next 60 minutes. That will be when on the move returns. I am rishaad salon that live in hong kong. This is on the move. Chinas first Economic Indicators in march. It is another disappointment. The costs of western sanctions has russia Hutchinson Whampoa is taking a hit in the hong kong session. Lets get you to this breaking news. It is the latest indication of the state of chinese manufacturing. The readthrough is that chinas growth. John is here with a look at the numbers. We were at a sevenmonth low in february. We have gone even further down. The previous figure was 48. 5 . The forecast figure was 48. 7. The actual figure, 48. 1. Anything below 50 is contractionary. 48. 5, 48. 1 manufacturing is that crucial dynamic part of chinas economy. As you look at the Australian Dollar for reaction is that seen as a proxy . Depend on chinas economy. If manufacturing is slowing down and the economy is not working as planned they do have this target of 7. 5 clearly without this manufacturing really driving forward, it will be quite hard. Contracting again. Lets kick it out to zed and see if there has been any reaction to all of this concern. I saw that the hang seng had given up some of its gains, right . Slightly, but it is still in positive territory. Even with this surprise drop in manufacturing, according to the numbers, the hang seng is higher by just about 1 . The shanghai composite advancing. This is what you have. A 10 gain in some cases, but we are seeing big drops for the panda fireworks. Shanghai, 1 advancing. Petrochina, one of the star performers today. We have Hutchinson Whampoa down in the session. A big decliner. This is because we have thomas at making that 5. 7 billion investment. Hutchinson when polo, delaying an ipo of its retail arm, from what we understand. Biggestlee catching unit. Rustic look at what is happening in terms of the chinese pmi data. We know usually there is a Significant Impact when we see negative numbers out of china. It suggests less commodity consumption from the worlds secondbiggest economy. The Australian Dollar today is down marginally. Around . 90, . 91. Had,iday, this is what we . 90. We are going to keep a close watch on that reaction. You see, as this pmi number came out, as we look at the intraday chart, this is what weve got. It has been steadily declining. You see the sharp drop when the pmi figure from china came out. We will watch this closely. The final rating comes on april 1. Others check in on some stories making corporate headlines thus far. The head of a young brand so is yum brands the restaurants fell short of performance targets. State television accused some of the companys suppliers of giving chicken unapproved levels of antibiotics. Backtoback losses for the chinese Sportswear Company li ning. It was short nearly 46 million last year with analysts seeing more losses this year. It says phase one of its turnaround is nearly complete. Mix, air is in the ordering seven planes from airbus. Newdeal is for the a320, aircraft, valued at just under 4 billion. The delivery is slated to start in 2018. That is a look at your top corporate headlines. More objects have been spotted floating in the indian ocean. This is the area that is the focus of the search for the missing malaysian aircraft. Lets get to sydney. Paul, tell us more about these images and where we are. Rish, what we have here is another clue, a small clue in a mystery that is desperately short of clues. These latest images do come from french satellite. There is no size of objects given in the image, and they were also spotted some distance from the current search area, 850 kilometers north. It is a point of conjecture whether the objects could have drifted that far in the week or so that has elapsed since the first satellite images from the light. N corridor came to there was other encouraging news over the weekend with a chinese i like seeing objects floating in the water. Dated march 18. Something 22 meters long and 30 meters wide. It is about the right dimensions for a triple seven wing 777 wing. Those images were taken 120 kilometers southwest of the first objects that we saw photographed from space the other week. Out there. Bjects as to what they are, that is an open question. Says actuallyh spotting these objects is just the start. The initial satellite imagery came out and was released four days after the photograph was taken. The thing is, to get that analysis done and then report it to the public, it takes quite some time. You have to collect the image. You have to process the image. You have to scheme scan the data. Then you have to verify what you are seeing is what you think it is. Of course, while that analysis is being done, the objects do drift in the ocean. The only way to confirm what they actually are is to get out there and take a look. The area gets bigger. The search gets more and more people involved in it. You were saying last time there are about eight f current aircraft which were doing the rounds in this particular part of the indian ocean, right . Thats right. We had four out there on friday. There were eight. Of course, they didnt find anything. There are more planes on the way from india, japan, and china. China, sending two large jets, which have a longer range than other air forces have been using. However, there is another challenge on the way. Of course, that area of the indian ocean they are searching 40s. Wn as the roaring so far, they have been blessed with relatively calm weather, but there are reports now that a tropical cyclone, cyclone jillian, is now beginning to form in the indian ocean, which is going to make an already difficult task a lot harder. Thanks for that. That is paul allen for us in sydney with the latest on the mh370. In other stories making headlines around the globe, we have student protesters invading taiwans cabinet offices. It is being seen as a sharp escalation of a fiveday escalation. They are campaigning against a wide ranging trade deal with beijing, saying it will erode democracy. The president said abandoning the be at the deal would damage taiwans international credulity. Up next, the west issues a warning to rush over ukraine. We will have a look at the Economic Impact of the crisis coming up next. This is on the move streaming on bloomberg. Com and indeed your mobile device. We are going to have a look at what is happening over in the ukraine. Crisis is roiling Global Markets. Russian troops continued to fan out across the countrys eastern border. This comes as western leaders are set to meet later today in the hague to formulate a response. Last time we were talking, we had air force one leaving Andrews Air Force base en route to holland. The flight is over the Atlantic Ocean on the way to holland as they begin these talks. World leaders from china, japan, and european nations meeting to discuss, what next in terms of russia and the increasing troop buildup on the eastern border of ukraine. U. S. Intelligence telling the Bloomberg News that additional troops are being added, some as close as 31 kilometers from the actual border. The kremlin and president putin deny that he will invade, but key as is saying they will defend their country. This all comes after Russian Forces stormed another military base in the crimea, and certainly, there is concern on the Global Market that this could get worse. While some are playing down the idea that this could turn into a war, others are saying, we need to be ready. Certainly, these talks at the hague will focus on tightening the screws, the diplomatic efforts that can take place in the bid to really avoid armed conflict. Ok. The west is starting to present a unified face. That is why president obama is at the hague for. What about these sanctions themselves . Are they actually aimed at people in a circle . Of Vladimir Putin thats . Exactly right, some of the russia, topires and government aids. So far what we have seen our individual sanctions that have been leveled by the eu as well as the united states. The united states, a bit more stringent in its sanctions. We are talking about visa bans, assets being frozen. These individuals cannot travel to the united states. To billionaires who have had sanctions slapped on them since the sanctions were expanded on march 20 cannot travel. There are banks which are reluctant to lend to russia, and certainly, local banks in russia that has been named in these sanctions. We are hearing reports of individual credit card holders, visa and mastercard holders in russia, who are having trouble using theres cards their cards. One challenge, of course you do have the eu summit limited in the kind of sanctions it can russiaissue, or slap on because one third of the energy the eu uses comes from russia. You have huge natural gas shipments, and you also have big contracts. France, for example, a military contract to supply armed forces. That is huge. France would miss out. We know the Banking Sector in the u. K. , london could be hit if they extended banking sanctions. It is a competent it matter , located complicated matter. Our next guest is here live in our hong kong studios. Just back from china. I want to talk about ukraine first, which is something on the back burner, in the back of peoples minds right now after it initially having an impact. The situation is not resolved it. No comment from the first moment we saw this coming through, it was, watch this developed. Lets see if this will branch out from a political crisis into one that is going to be much more economic. That is when the market starts to react much more aggressively. We have seen volatility in some of the emerging market currencies, some of the assets around that. The ruble has been under pressure. They started using it as of today. We have to look at what happens if businesses are penalized who are in russia, some european businesses, u. S. Businesses, if there are going to be penalties on their businesses. I think the market starts reacting a little bit more aggressively if that starts happening. In a worstcase scenario, we start seeing bloodshed. I think the market will see bigger volatility than what we are seeing right now. We hope that doesnt occur. Markets just have to keep a very close eye on this but continue as they were. Lets move to china. Fromave just come back there. Seeing this pmi data coming out, that was weaker than expected, showing a further slowdown in manufacturing. Did you sense any of that while you are visiting . Not really. I was talking to my clients out there. Generally, the feeling was quite neutral, to be honest. Most people were not seeing the concern that a lot of western analysts are are talking about, the credit expansion in the debt bubbles people a look at. In the last couple of days, the pboc are moving towards a much more expansive policy now. I think we are going to start seeing that cushion very cus hion effect. This number will be looked at. I will guess we will see some weakness coming through in the aussiedollar. That is a proxy. What happens in china has a direct correlation. Thats right. What is interesting for me, if you look at shanghai copper, the correlation with the aussiedollar has been strong for a long time. It is strange. We export that 1 and copper, most of it in iron ore, but people have always seen copper is a good proxy of the chinese economy. Now considering the fact that so much of the imports have been used in financing deals, people are saying, is copper a good barometer of the economy in china . We have seen big divergence between the copper price, which has been heading south and looks terrible on the technicals, and the aussiedollar, holding nicely. Slighty pricing in a positive. Let me turn the question around on you. When you are visiting quiet clients, what were the questions they were asking you . I came out there and said, look, this is the first time i have been to china. I do want to tell you what is happening in china. I can tell you about the economics. You know more. They wanted to know how the banksn hedge funds, the were playing sentiment around china. What was happening with peoples perception of copper, the australian copper, aussiedollar . How did you answer . I just said, if you look at the taiwandollar, that is naturally the closest proximity. Aussiedollar has separated and diverged away, but the one everybody has been talking about most closely has been the copper traded, how that rates from here given the high level of imports that have been used in that financing deal. If you look at the news flow from most western economies at the moment, from newsletters and sources, generally the advice is pretty negative, but the consensus is we hold at about 7. 5 . Put inot the china place. If we see it below 7 , they will look at stimulus to boost it back up again. Also, probably, particular concern about which way the u. S. Economy is going. Thats right. They were asking me, do we start going over weight on the u. S. Dollar . Everybody tries to predict the dollar strength. It always ends up in some sort of weakness. Thats right. I am guilty of that myself. If you look at the forex markets in general, every time there is a consensus trade that gets put on, the dynamic suddenly change. Everybody has been bearish on the canadian. I remain very bearish from the rhetoric we are hearing, but retail sales numbers, inflation numbers, a little bit better. We still think the dollar is a good trade for the longerterm. I still like the dollaryen. I think the yen weakens again, gets the extra leg up in june, july when they have to expand the Monetary Policy can. Think currency markets are driven by positioning. If you look at positioning in the dollar, i think the market is very much underweight. Now is a good time to start articulating u. S. Dollars for a longer term. And the next few months, we will start seeing a bigger aggressive move back into the dollar. We will need to see that data coming through in nearing what the fed have been saying. Unmarried of other things which could throw that production off. Thank you for that, chris weston. Next, shanghai making the dream a reality, becoming hollywood in asia. A special report coming up. Courseing forward to the of the week. Tuesday, Alibaba Holding the first meeting about its ipo since declaring that would happen in the u. S. It is estimated it could be worth 18 billion. That is bigger than the facebook sale in 2012. It would be big for chinas banks, as well. Bank of china, wednesday. The lender along with its three rivals is expected to see the slowest Profit Growth in five years. The reason for that . Surging bad loans. Take a look at thursday, microsofts new boss will be debuting a new version of Microsoft Office for the ipad. It will be his first appearance with a new product. He took up the role in february. People with knowledge of the announcement say that the Free Software will have limited capabilities that can be upgraded with a subscription. Competing. Teams barbados, and trinidad part in thisking years event. Shanghai is rapidly becoming a major hub for the film industry. Dreamworks is followed disney on spending billions of dollars on a showcase property with china expected to become even more important for moviemaking. As well as movie watching. Stephen engle now reports. Spielberg, and definitely the original dream team, but for asia 20 years later, it is katzenberg, lead, and seamen, teaming up to build a showbiz complex in shanghai. Us is a chance for us to create a oneofakind cultural and Entertainment Center right here in the heart of shanghai. His answer perhaps to the massive shanghai disneyland . If anything, they are, women treat one another. They dont compete. It,e may not want to admit but the perception is that katzenberg is doing what he did 20 years ago when he left disney and cofounded dreamworks. Hes taking on disney, and again, surrounding himself with industry heavy hitters. Jeffrey katzenberg called me he couldnt find a better partners to be working with your that we all shared one vision. That is to turn to transform this a 40acre Industrial Site into the broadway or hollywood of china. This is really a behind the scenes look. We are basically in a derelict Cement Factory that is going to be Dreamworks Center in asia. It is kind of cool industrial chic. This reporter simply could not resist poking around. You could not believe how many jagged edges there are. How do i get down . This is going to be the boardwalk along the river in the new dream center complex. You are going to have to use your imagination, but fortunately for dreamworks, that is the job that they are in. Many of these old structures completelyt, labeit renovated, by the time the dream center opens in 2017. The shanghai disneyland is a lot further on in its development. A similar transformation is happening here. Nearby neighborhoods have been raised. All that is really left around here is a loan shop selling cigarettes. I will be here another two months at most, and that i will have to move. There is nobody left. They have all moved out. These two projects are being built as worries not about the health of chinas investmentdriven growth. Developers are under problems in china, but there is a reason for it. I think the property prices were really getting crazy. The ug as you work with think you can afford and you dont get yourself into hot water, you are fine. You can see the future disneyland site off in the distance. Of course, the areas around here there were some homes and small factories check this out. A giant shoe. Obviously, they made some shoes or sold some shoes. The big Hollywood Studios . They are leaving their footprint. We will be watching every step. Stephen engle, bloomberg, shanghai. He doesnt have any fun when he does his reports, does he . As we were talking about china, we had the purchasing managers index, the data showing there was a further contractio. We got a figure of 48. 1. We were looking for 48. 7. Any number under 50, contraction. Coming up, malaysia under fire for its response to the missing aircraft. We will get details from our Southeast Asian correspondent next when on the move returns. The missing plane mystery entering a third week. 10 aircraft now scouring the ocean for clues. The imf salutes the changes in china but says hard decisions lie ahead. A rollsroyce is under investigation after claims of bribery in india. The search for the missing malaysian aircraft continues weeks after, three he disappeared. Sundays flights were hampered by cloudy conditions over the site. Eight planes are involved in the operation. They have been joined by a couple more, as well. They are covering an area nearly 70 thousand square climate others. They have sailed so far to debris, whiche was spotted by a satellite last week. The weather is expected to worsen today, and rain is forecast. More resources are being drafted into the search. The fleet includes aircraft from australia, new zealand, china, and the united states. Nothing has been found since the eighth of march. China said one of its satellite spotted possible debris. It has been sending ships to verify that secondrate another satellite image to verify that. Weve got to check out all the options. We still dont even know for certain that the aircraft is even in this area. We are just taking whatever little piece of information comes around to try to find a place where we might be will to concentrate the efforts. Malaysias response to flight 370 is drawn widespread criticism. Messagesontradictory were replaced by a stream of information, but kuala lumpur, not commenting on the latest images. We have been following the story from the start. Hard thing for the families. Absolutely. This is one of the worlds great aviation mysteries. The satellite images from france may help solve it. You can imagine the frustration among reporters, among family members when a malaysian authorities dismissed questions on the latest clues. Malaysia refused to comment. Here is what happened. [indiscernible] can you repeat the statement . What have the french found . Very briefly, why cant you explain it . I think they just released it. What are you trying to hide . You have to explain. Just read the statement, he said. Such responses, not helping. Efforts and the southern corridor or have uncovered nothing. No sightings, according to esther licht, which is coordinating the operation there. Australia, which is cordoning the operation there. Do we know anything about these satellite images yet . If not, why . Is from a know malaysian official who declined to be named. He says the french images were captured on friday. They are estimated to be 500 nautical miles north of where the chinese and australian objects were detected on their own satellites. The size, about 22 by 13 meters. The problem really is this. Arequality of the images fuzzy, very unclear. It is pretty uncertain at this point in time what they really are. Thank you very much indeed. She has been covering the story from the getgo. We are going to take a look at kuala lumpur as it does face criticism. Our next guest says a Malaysian Airlines says a Malaysian Airlines has handled it pretty well. Thanks very much indeed for joining us. Overall, in your view, how have authorities really done . They were subjected to widespread criticism. Was it warranted . Look, they are facing an unprecedented situation over this missing aircraft, and the pressure on the airline and authorities is massive and increasing everyday. We are now heading into very uncharted territory. The problem really has been conflicting information. When youre in that situation of crisis, it just adds to confusion. It adds to speculation. It adds to the anguish of the families. What about Malaysian Airlines . What reputational damage have they had, and what do they need to do to turn things around there . The reputation is largely built on trust. The airline has to work very hard to maintain the trust of the traveling public, the trust of families, the trust of the authorities and so on. Corroded by poor communication practices. Really, the airline has to make sure it keeps its act together. It has to ensure that it communicates effectively and deal timely with the families and the media pressure. The media pressure will be intense. We are dealing with a lot of speculation. A lot of this is driven by media. The other thing is, they can play a straight card and do it you just suggested, but if youve got governmental bodies being contradictory, it muddies the waters. There needs to be a critic a Clear Channel to get the information out there. The golden rule with crisis communication and disaster communication is, speak with one voice. You can have many voices, but speak with one message. There needs to be a lot of work, particularly from this point and theas time goes on mystery continues. There needs to be a lot of work in the background. There needs to be a lot of coordination between the airline, the government authorities. The message must be consistent. That is the thing. That is the mantra for dealing with crises like this. Weve got somebody different voices from governmental bodies in the early days of this mystery. Malaysia meant that came under criticism of other foreigners. In many ways, people started attacking the countrys political structure. Would it be a harder job for the country also to turn things around . Well, of course. The whole countrys reputation, if you like, is at stake. Before, the textbook on crisis communication has run out of its last page on this. The country, the airline is in uncharted territory on this, and they really have to make sure they keep their act together. Black holes and organizations. Resources are drained. Malaysian airlines, they have a worldwide operation to maintain. Yet they have to deal with this crisis on top of it. It is a dicey reputational minefield for the airline and the country itself, but if they work hard together, if they coordinate information, and also if the airline and the officials walk the talk, carry out what they say they are going to do, then they are pretty much going to have a Good Opportunity to maintain their reputation. Other airlines have had serious accidents and continue to protect them. There is no reason a Malaysian Airlines cant do the same. Doctor hey mitch mclain, thank you indeed from griffith university. Indonesia has announced it is increasing its luxury goods tax. , we will find out why theyre doing this. Our correspondent is there with the details. A wide why . Good morning. Why . Revenue. To boost they currently have a current account deficit. The government is planning to implement a new luxury sales tax. This new tax is part of a policy package released by the government on august in august of last year. The government was targeting for the limitation to be december of last year but missed the target twice. The president said on his official twitter account that ax will soon be implement it. The new tax would only be certainle for cars with amounts of power. The government earlier was saying that it would be up to 150 . The finance minister has confirmed and assured that the president will definitely sign the new tax at the end of this month. He also added, this is not the only measure that the government is taking to help the current account deficit. Other than raising the luxury tax, the government is also considering an increase in subsidized fuel prices. Indonesia is the worlds secondlargest importer for luxury cars, such as bentley. Back to you for now. Thank you very much indeed for that. Born of the state, controlled by the state, but opening up to the markets. The changes underway at sinopec. A special report coming up. Of march. He 24th it is monday. I am rishaad solana. The search for the missing malaysian plane is now entering its third week. Flights over the indian ocean sunday were hampered by cloudy conditions. It planes involved in the operation nearly covering 60,000 square kilometer but unable to locate possible debris. Student protesters have invaded taiwans cabinet offices. It is a sharp escalation of the fiveday occupation of the legislature. They are campaigning against a wideranging trade you with. Eijing the president said abandoning the deal would undermine taiwans economy and damage its international credibility. More pressure for chinese leader to leaders to add stimulus. Manufacturing unexpectedly fell last week. Manufacturing output continues to contract. It would make it for the government to reach its 7. 5 growth target this year. China has said it will speed up Construction Projects to support the economy. Chinese data, something investors have been focusing in seeing that weakness come through. Lets take a look at what is happening. The hang seng gave up some of its games, but i dont think it is that badly off. It isnt. It is extending a bit of a gain from the last time i saw you. It is up 1 . Unfavorableely earnings reports, even with that somewhat disappointing pmi number out of china, showing contraction, a surprise drop. Manufacturings on by the way, the final numbers are out on april 1. We are seeing the China Enterprises index, representing those Chinese Companies listed, it is rising. These are your key movers. You have petrochina moving. Petrochina, in focus today. It is rising the most in two weeks. We are watching it closely. We have sinopecs results missing estimates. Petrochina is up as much as was up as much as 5 earlier. It is the second consecutive trading day of gains here. We have barclays favoring petrochina over sinopec for its stronger Balance Sheet and cheaper valuation. Lets take a look at the commodities space really quickly. Of course, the chinese data does have an impact on commodity prices. Complex,ok at the industrial metals, copper prices are trading lower in the wake of that. You see copper here for the threemonth month contract, it on awer by about 0. 5 oneday basis. If we pull it out and take a look at the past week, this is what has been happening with copper prices. They continue that downward trend. Year to date, given what we are seeing in china, a more dramatic drop for copper, down 12 . This is on concerns about the chinese economy. Lets check in on crude oil prices. This is what we have today for crude oil. Slightly higher year to date, but lets look at it on a oneday basis this is what texas traded in new york. If you want to look at the london benchmark on crude, that is the gray that is used generally across europe. We are seeing declines. The london benchmark for crude there we go brent crude is down. The dubai contract looks to be trading lower for that crude oil grade that is used across much of the middle east today. Precious metals, down as well. Lets talk about one of the major oil companies. Sinopec came out with earnings yesterday, slightly missing estimates, but more importantly is the fact that this is the largest state owned company. It has been encouraged by authorities in beijing not to rely on the state for capital. Instead, to try to embrace private capital, as well. It is one of the major reforms and one of the major stories. Earnings were held back by the price of crude oil. It is as simple as that. Overall, the picture was down by 3. 5 excuse me, up by 3. 7 to 10. 6 billion dollars. That missed estimates. That was the number one criteria. Of that, they produced 453 Million Barrels of crude oil last year, up 3. 5 year on year. I mentioned the oil price. That was done 7 , crude oil, last year. Profit force sinopec down 21 . Glass shale that to 1. 8xpanding billion cubic meters per year. They are forecasting a supply cut a glut. This is an out performer, isnt it . It really is. It is down. Against the other two, it is significantly better. It is the best loser. Down 52 in the last year. Petrochina is down 18 for the last year. Sinopec is down 2. 5 . That is quite encouraging overall. Ok, it is all about change here. The authorities in beijing want these state owned enterprises to do that is what i mentioned at the start private capital over state capital. It really is. It is a big reform story. It is like shifting a titanic tanker. The plan is to fully embrace reform. Do get a lot of the money. s dont get as much money. Therefore, that is a concern off the radar. By doing this, they become on the radar. Sinopec is embracing it. I want to, for example, seymour private income, private investment into their retail business. They are going to sell off 30 of that. That is actually going to go. Barclays of values it at 20 billion. That is one area to track. Is a big, big deal, a big shift of momentum, a big shift in policy. Christine lagarde of them ive did say she embraces this idea, and in fact, the reforms are ambitious and will require tradeoffs and hard decisions. China is up to the task. Here she is not. Clearly, chinas share of Global Responsibility as increased, as well. Supporting Global Common good, Global Financial stability, environmental sustainability, and improving the global rules of the game. The imf will continue to be a key for him for this kind of global cooperation. But it she is hesitant, has to happen. She is complete we confident about china doing it. John, thank you very much indeed. Isthe next, rollsroyce under investigation over bribery allegations in india. The latest on that coming up after the break. The start of trading over in india. The aircraft engine maker rollsroyce is under investigation. There are claims of bribery in india. Our correspondent joins us now from him by. What precisely is the company being accused of . Story that has been unfolding over the past one month. Two days ago, the Bureau Investigation in india has launched a pulmonary inquiry , as well assroyce a thirdparty consultant based in singapore called Ashmore Private investment. What really is the allegation that has been leveled against rollsroyce . This is a case which relates to allegations of kickbacks, which have been received in the supply of helicopter parts. We understand that a letter was received. Ofwas released at the start this investigation. It relates to allegations of kickbacks during the time of 20052013. We understand that for 170 parts, which were supplied, allegations of kickbacks relate to almost 100 of those orders. That rollsroyce, for its part, has started an investigation against officials relating to what payments were made to ashmore investments. Thanks very much indeed for that. Known to some as the lost world of paradise. Unspoiled by the 21st century. Not too much longer, as David English style reports. Myanmars opening up means the pristine islands are changing forever. Who wouldnt want this . The the emerging gui islands off the course coast of myanmar. It Hundred Islands spread across a chain that stretches 400 climbers. It is unsurprising that one of the very few dive boat operators describes the place is the ultimate escape. There was no infrastructure, no towns, no streets, nothing. I lost island world like a maritime shangrila. No one in our group had ever seen anything like it before, and we were absolutely enchanted. All this could soon be a thing of the past. Enter progress. This is the new master plan of nextis being dubbed the hookchecked. The government is hoping the tourism project will bring in more dollars in the 2000 people who came to visit and 2013 abroad hundred among the planned amenities, a marina, a fivestar resort, apartment blocks, eject nicolasdesigned golf course, and of course, a casino. In other words, not exactly a small addition to the current skyline of one lone bungalow hotel. Now lead the local fisherfolk. They have lived here for centuries, and they are not so thrilled about the impending change. The only thing we are good at is hunting squid. I dont think it will work out ok if we have to work alongside. We can only work with ourselves. This is how it works. The government has to look clearly at how they can strike a good balance between progress and preservation. Meguiwe talk about the islands, this is totally unspoiled. Also, we need to make everything as to not ruin any of our environment by the investment in this area. As the sun slowly sets on a more pristine past, the hope is that tomorrows sunrise preserves moments like this. David english, bloomberg. Ingles, bloomberg. That is it for this edition of on the move. Stay tuned. It is asia edge coming up. Bloomberg. Asia edge is coming your way after this very short break. This is victoria harbor in hong kong. We are live and this is the middle of the trading day. This is asia edge. A look at our top stories. Chinas first Economic Indicator for march is another disappointment. The biggest drop in two years. Taking a tumble in hong kong. More possible objects in the ocean as the search resumes for the missing malaysian airliner. Program,ng up on the the pristine, untouched beaches of myanmar. Warnings that may put the deep south into peril. We are talking about chinas economy, seemingly faltering here. That is the verdict after the latest reading on manufacturing a few hours ago. Were actually expecting an uptick. Instead, we got a downward move in a downward move. Yes. They want to see manufacturing consistently perform. Was 48. 1. Figure anything above 50 is expansionary. The forecast was 48. 7. 48. 1 is below that. This is at an eightmonth low. Manufacturing is a big thing