The worst of the slowdown in china may be over, and david inglis is looking at this. Pickup, 50. 8. A it was not a big surprise, because if you look at the range of forecasts from economists, pretty much everyone was expecting we would still see expansion. As high as 51. 5, so i guess you could argue that it is more in line with expectations. This is really a survey, at least for this particular one. A series of questions. How many optimists are there, compared to pessimist . A number above 50 indicates that people are perhaps a little bit more bullish on their own business, so that is what we have for the large enterprises. If you look at the medium sort of companies, mediumsized companies, because that is a critical area right now, we saw a big improvement here. 50. 3 in april, 51. 4, which suggests that some of these measures that beijing put in place over the past several have filtered over. That said, you look at the smallest firms, it is more difficult for these firms, 48 point eight, still showing a contraction here. Talking about, tomorrow, we are going to be getting the hsbc market pmi group it it is a smaller survey in the number of respondents, but it looks mostly at the smaller types of firms, so we will get indication from there about how it is shaping up. Pretty small. A lot of these firms are having trouble. The slowdown, that is where it is really being felt the most. China is closed today, ironically. No reaction. Seeing reaction in other markets . It is interesting. Australia is a key market to watch because the trade flows between the two countries, and that said, i will be back in just a bit. Coming up, we will take a look at the reaction. An update across the region. Of course, a lot of markets are closed today. We have china, hong kong, taiwan, new zealand closed today, so a fairly quiet session. Japan. I guess, australia. Just to show you the big movers. , that stock, maker go bullish on that. 5. 5 . Friday, a big drop which ended 4. 5 underwater, so perhaps we are seeing a reversal of that trade. And australia, lets get to the big movers. A little weaker. Earlierhad a raised losses, but when you look at the mining stock, we were talking about china. Big declines. We will see Iron Ore Prices continuing to go back. We saw the benchmark in china, the import benchmark, at least, falling the most since march, so we talked about pmi. You look at this steel sector, that is where the pain is being felt. The industry is continuing to shed a lot of its underutilized assets. 46. 4 there. ,nd you look at inventories steel, that is piling up in factories, so what you have in terms of the imports for raw materials, like iron ore, that is not budging. We are seeing contraction on that. And Iron Ore Mining companies have seen a bit of a slip. About metals, just very quickly, gold, they are down about one quarter of one percent. This is about a fourmonth low for gold prices. Silver, about 4 10 of one percent. Or the first time, trading below 19 per ounce. This is the spot price, by the way, and copper, there you go, up about half of one percent. That is what we have right now. David, thank you. Say theyean companies are becoming increasingly pessimistic about china, suffering from the golden age for multinationals being over. We spoke to a president who talked about what was dragging sentiment down. It is surprising to see that this is a game changer. We are now down to seven. And this is more than i thought Slower Growth if it planr, struggling whatdown to 17 from 41 is going on . That. Hink people assume european ceos, are they starting to see the storm clouds of a financial crisis with that the way they can operate in that market. Machinery is still doing fine, whereas other areas are not for the time being. Are you seeing, anecdotally, evidence of people saying it is just not as conducive for business here . Whether it is the corruption probes, what does that tell you about the Business Climate here . They are looking at this. To some extent, it is lower. But now they see sort of the end of what we call the golden age of multinationals, this high growth. Almost half of those countries surveyed said the golden age is over. Again, some different segments. Glaxos a former head . Glaxosmithkline is shaking the rafters, and if he does get jail time . What message does that send to other ceos . I think the most important thing is transparency. Proof of what happened, who was engaged. If it is a deal behind closed doors, then i think it sends a message of insecurity to the European Business community. I think it would really help to put this case into the open, prove it, show the documents, show the case, and in order for everyone to understand that you cannot bribe in china. Putting a significant business person behind bars, we also have to see if it is rightfully done. President obama is stepping up its his fight against Greenhouse Gases with new regulations to be out today. He is expected to propose cutting Greenhouse Gas emissions by 30 in the next 15 years. The cuts would apply to existing power plants and will be measured against 2005 levels. Be flexible to allow individual states room to decide how those reductions are met. Well, australia, however, is winding back on Climate Change despite going through its hottest two year record. Is, are youquestion feeling the heat . Yes. That is the short answer to that. Last month particularly was extremely warm. We had 19 days in a row in sydney with a temperature above 22 degrees, and one day, we were at 27, and it was a similar story across much of australia, and here we are today, the winter forecast 22. These observations are picked up by a new report from the Climate Council, which does confirm that australia has just experienced its hottest twoyear period since records began. They are also predicting an el nino event for the second half of this year, so that will mean even warmer, drier weather, which, of course, means more fires, and last year in the out skirts of sydney, he had fires in the mountains, and the droughts will have an impact on agriculture in australia. Movingave seen the u. S. To curb emissions, just as we heard before we came to you. What is the Australian Government doing in this regard . Well, the report came from the Climate Council is a good indication that the Climate Council has just been relaunched as an ngo. It used to be a climate commission, which was a governmentfunded body, which has been abolished the new government, but they also abolished the Clean Energy Finance corporation and another. It is well known that there was a plan to scrap the carbon tax which was brought by previous government. Although current budget negotiations make it pretty unlikely for it to go through the senate. There is also no science in australia. That was abolished, as well, by the incoming tony abbott government. There has been no Energy Minister for the first time from the 1930s, so while they are serious about Climate Change actions, these actions do not indicate that they are taking it particularly seriously. Into stanley, indeed. All, live in sydney, thank you for that. We will be watching Market Action in india after the gdp came in lower than expected. The economy was adding pressure on the new Prime Minister to spur growth. He won a landslide victory last month on the back of promises to revive the economy. Indian futures have just started trading, and lets look at that market, the futures just a little bit towards the downside compared to the last , the nifty futures just marginally lower. And in geopolitics, the increasingly strained relations between russia and ukraine, and the focus on china. We will have more on that when on the move returns. Russia and ukraine resume talks on a deal to keep gas flowing despite the growing separatist crisis. They paid their first bill in 780 6 holding over million for gas supplied in february and march. Of usingccuses russia gas as a political weapon, and there are more than 5 million in unpaid bills and must prepay from here on out or face being cut off. Lets get more on this from the dean of the school of Public Policy at the National University of singapore. He spent more than three decades in the Diplomatic Service there, and, professor, it is always a pleasure to have you on bloomberg. Thank you for coming today. This is an important week in ukraine. We have the gas talks ticking up and other forms of engagement. The eu leaders meeting in brussels. How do you think this washes out . Well, i think a lot will depend on whether or not the United States and russia and the eu and russia can have a broader understanding about their respective roles in the world, and, unfortunately, as you know, even though relations were going quite well after the end of the cold war, unfortunately things natown, and make joe kept expanding and came to their borders, and finally when the russians were afraid that ukraine would fall into the lap of nato, they thought they had no choice but to seize back crimea. That had been a Traditional Russian port. So what we need to solve the problem is not about the details. It is about rebuilding or digi trust between russia and the United States and russia and the European Union. And that Strategic Trust is critical. So much has been lost in months. There have been all of the developments here. Is there a new paradigm, i wonder . Of the west on russia . Well, it is important to emphasize that we are living through an era of the greatest power shifts ever seen in human within aand, clearly, few years time, the chinese economy will become much larger , first inmerican gnp gdp terms and subsequently in nominal terms, so with all of these power shifts taking place, everybody has got to make adjustments, including the United States, and the lesson we have learned from the ukraine crisis is if russia and the eu, if america and eu push russia into a corner, then you saw what happened. Gashave got a 400 billion deal between china and russia. With the power changes taking place, and you need a new kind of Strategic Thinking in washington, d. C. , in brussels, and in the european capitals to a just to this new world order that is coming. This dealalk about with china. I want to get to that with the time we have left, the custom is a major deal. It is years to make. Ins this signify a new shift russia, as well, we do not need the west, this is fairly . The russians are basically doing the logical thing that anybody would do if you are pushed into a corner, if america and the eu imposed sanctions on russia, russia says, ok, i have other alternatives. I can go to china and subsequently to india and others and make deals, and that is why it is important for the United States and the European Union to exercise 13 degree straight and to remind themselves that in this new world order the united date cannot behave as unilaterally as it has over the past 10 years. To build a global consensus on anything before it launches any objective, and therefore, i think it was a mistake for the United States and eu to try to squeeze russia and force russia into other options. Now, of course, the flip side of this coin, the critics would argue, is that russia unilaterally launched the actions in ukraine, so how do we defend, or how does russia defend against that . I guess leaders in the west say they are trying to stand up for democratic principles. Well, i think, you know, we live in a world of repeating narratives, and the western narrative is that russia unilaterally seized crimea, and, therefore, it was a mistake made on the part of russia, and there that narrativet is out there. At the same time, there is still a russian narrative that says at the end of the cold war, gorbachev received assurances from resident George H W Bush and the secretary of state that the west would not push nato to russian borders, and russia believed all of these assurances were violated in the last few years, so the russians say you have not kept your promises to us also. So it is important to understand there are two narratives going forere, and the difficulty western strategic thinkers is to acknowledge that we live in a withex multi polar world many multiple marriages in the world, and that is why you notice, if you look carefully, many of the major countries did not sympathize with the United States and the eu when they tried to corner russia. China and india, for example. They said, you were pushing russia into a corner. Lets bring it back to the asiapacific for a moment, because, certainly, over the weekend, he had the shangrila dialogue taking place over the weekend in singapore, where you are now. China says it will press forward with the territorial claims in the South China Seas, and this is a flashpoint in asean. Are right. I attended the shangrila dialogue, and what i think was new in the dialogue was that the level of concern about china has clearly risen significantly in east asia and in Southeast Asia, and it is clear that the South China Sea issue is going to be a very difficult issue to resolve, and, unfortunately, one problem that has arisen is, as you know, china has what they call the on the china sea map, a map at the united nations, and therefore, they are stuck with it, but it is a map that will prove to be a problem for china because you cannot defend that nine dash line. Law,here is international but having said that, i think the chinese at the end of the day will go back to being careful and restrained in their actions in the South China Sea because there is steel much to lose with these flashpoints becoming a bigger problem in the years to come, so time is on chinas side. Therefore, it would be better for china to be patient and not push too hard. Certainly. Ghstakes, we saw that with vietnam last week, and we will see what this dialogue leads to, perhaps further restrengthen it professor, we are out of singapore, joining us live, thank you. Coming up next on the program, making products in korea is getting more expensive. It is the currency that is the culprit, and we will take a look headlines, after a short break. I am david inglis in hong kong, and these are your headlines. Starting off in china, they released the manufacturing over at 50. 8, thepmi highest in five months, and also a sharp improvement in a similar reading with mediumsized enterprises, but if you look at smaller firms, 48. 8. Of course, any number above 50 indicates expansion. Morees to show that support is still needed. Economists were expecting a gain, but south korea posted a surprise drop, the first rock in after your months, and so far, the sharpest one going all of the way back to september of last year. Advancing five percent this quarter making south korean products more costly for foreign buyers, but at the same time, it has had a positive impact in slower inflation. At his because imports, like energy, are cheaper. Expectations are being revised lower in the fastest pace in about one year, and cutting their annual forecast to less than the 2. 1 outlook. Inflation data comes out 7 00 a. M. , andg, come along. I want to show you very, very quickly. Very sharpa strengthening. Of course, over the past few months, this is what we have. These are the stories driving the market this morning. Dont go away. The u. S. And japan are corrosive are criticized over security. Chinas manufacturing hits a fivemonthood high. Welcome to this halfhour of on the move. Senior military and defense representatives were in singapore for talks as the various territorial tension the region heated up over the weekend. Are joined by ron ha. The is the latest from shangrila dialogue . And a lot of whispering go on, tense faces. These are the three main players and of course vietnam in this as well. It is a tensent fractious time. Chuck hagel talking about china actions as destabilizing. Then of course, the Chinese Deputy chief of the pla, they pla, talked about the army, talked about hateful words. It propaganda war of words, very extreme indeed. Voicing his concerns and his frustration. We oppose military alliances flexing their muscles against third parties. Use ofng to threats or force or seeking absolute security at the cost of the security of others. The fascistr allow and militaristic aggression to stage a comeback. Those are strong words from the chinese side. There have been tens times in recent weeks between china and vietnam. We will take you to vietnam with this maritime dispute continues to dominate headlines. What is the latest . Vietnam has been trying to rally support against china. In an exclusive interview here in hanoi, we got a chance to speak with the vietnamese Prime Minister and he called for a stronger u. S. Voice in the region. He says he wants to see more tactical and more effective contributions by the u. S. Likely welcome chuck hagels comments. Comments thates he supports china and they are vietnam. The question in many peoples whether vietnam well file legal actions against china just as the philippines has done. We got a chance to ask the Prime Minister exactly that. Vietnam will use all possible peaceful measures to defend and protect our sacred sovereignty over the sea, including legal actions. About 10 thirds of Global Marine rate on the east sea. So any irresponsible action that sparks a clash will interrupt this huge mobile trade flow. That was vietnams Prime Minister in our exclusive interview. , when it comesay to a legal action, it is a matter of when. Vietnam a lot that needs to think about, including economic retaliation by china if it files legal action. We also heard the Prime Minister tell us there has been some thect to certain sectors of vietnamese economy because of the dispute. They want to see a stronger stance. They want to see vietnam stand up against china in this matter so there is pressure on vietnam to take legal action. Tensions running high on both sides to exercise restraint. Thank you both. Checking some other stories making headlines the military junta in thailand applied soldiers deployed last month. Calling for a return for democracy. They sang loud patriotic songs. Is coup leader says the army in total control of thailand and it will be at least 15 months before any hospital election. The u. S. Has defended striking a deal with the televised two free a with the televised to free sole u. S. Soldier. He was released in exchange for five detainees at guantanamo bank. Concern of his health prompted the deal. The world cup 10 days away, a board member has called for swift investigation into new claims of corruption surrounding the tournament in 2022 that is to be held in qatar. Long been rumors of impropriety in the bidding process. Documents have emerged alleging the former fee for former paying millions of dollars for the bid. Talking about buying 7478 planes. New zealand has agreed to buy more planes from airbus. It will pay 1. 48 billion dollars. It will replace lanes find domestic routes. It will enter final talks with the italian carrier under certain conditions. However, no details have been given. Corporatethe top headlines. Etihad has the ultimate in flying for those of us who have no jet. Apartment withne a bed and a bath in the services of a personal butler. It is not the only one making highclass travel more classy. Here are some more luxurious options. Time now for our Global Outlook and google is the latest company to talk about its lack of versed it. Lack of diversity. Generally, it is good business. Valley . Ut tech, silicon recent figures suggest that the of female and minorities in key positions fell in fortuned seats 500 tech companies. Percentage. Diversity hass its benefits on the bottom line. The report shows that firms with the highest level of racial diversity made 15 times more in terms of revenue on average as you compare that to those of the lowest levels of racial diversity. Diversity,y gender that accounted for a difference of 600 million. In other words, they made 600 million more in revenue compared to those with a less diverse gender less gender diverse firms. Is harsher from shareholders to add more females in directors and executives. Looking at similar friends, facebook only has two. Members are white males. On twitter, Marjorie Scardino is on the board. The remaining seven are white males. Vp admit that more work is needed in this space. Google is not where it was to be when it comes to diversity. This lack of diversity among googles 50,000 employees is not unusual. Across the board in the u. S. , last year, only 26 of workers are in these fields, in computer and mathematical occupations were women. Intel, shifting gears a little bit, shifting companies, provides a brought down a breakdown. The ratio is about the same. So fairly low. They key thing is to remember that diversity could mean more profits for various reasons. Women make up half the worlds workforce. We can actually boost economic in emerging countries over the next 15 years. Some things to keep in mind. That is your Global Outlook for today. Lets go back to our top story this monday. Chinas manufacturing numbers. They were released in the weekend. The factory sector is improving. It has risen to the highest level in five months in may. Recovery wont be very exciting says my next guest. Program. O the what do you make of these programs that share recovery in the industrial sector is clearly underway, does it not . Yes, it is. We must remember the government had been putting in targeted efforts to lift certain segments while trying to address imbalances in others as well. Through fromcoming Stateowned Enterprises and down through to the Smallest Company as well. We are seeing some sign of growth. What the take away from the numbers that we should be concerned about . Employment,sed on for example, not being where it needs to be. Indeed. While there are encouraging signs, both on the domestic front and from the external front as well, there is still weakness in the labor market as well. Perhaps it is not traditionally the best number thats best month to look at the implement numbers because it is a shortened month. Overflow want to see translating into improvement in the labor market which should in turn generate at least investment growth. That is basically the trajectory we are looking at. We have been focusing today on the impact of the smalltomedium enterprises. How are they faring in the current environment . Indeed. ,f you look at the other pmi the revised number should be coming up anytime soon. It is getting less bad. What we are seeing is certainly credit tightening has affected Smaller Companies much more so than large Stateowned Enterprises. But with the improvement we have seen in the over flow passing through soe, it should pass on to the Smaller Companies itself. We should see gradual improvement. We are in the second half of the year now. What we are seeing is what we should see happening on the ground. We are seeing some sign of growth in the x port sector itself. Taken together, that should the export sector itself. I can together, that should be positive. At this juncture, we are looking at unless we are seeing substantial, broadbased on a sustainable basis, the government will continue to. E looking at targeted measures we so with these first four months industrial profits. We saw profits in the resource sector coming down. A pullback. Een but Consumer Spending has done reasonably well. Growth. Areas where they want to see credit channels two, smaller see credit channeled into. They will be looking to support them. So targeted measures are still very much the case at this juncture until we see signs of sustained broadbased slowdown. We saw that with authorities reducing sub lender ratio requirements. What kind of easing will they used to calibrate this economy . What unconventional methods would you recommend . It is still pretty much textbook stuff. Yes, there are areas where there are where they are faced with excess liquidity. They are making sure that the liquidity flows through areas where they want to see growth. They want to see Infrastructure Improvement and spending. Acrosstheboard spending. Hence come on railroads, and terms in terms of infrastructure. Is the slowdown in credit affecting the property market. Sectionswant certain to carry on as well. So this is a very fine balance we are seeing. While the Broader Market is seeing substantial pullback and some surprises, on the ground, they want to see some areas of growth. So these kinds of targeted measures can be risky. There is plenty of Downside Risk in these measures that you could undershoot your tightening process itself. We will be watching all the numbers with the bdi, so to say, slowdown but not a broad they slowdown is really the key word here. Broughtbased slowdown is really the key word here. The weakest pace since 1990. Yes, we have not seen the kind of pace they are used to. Where is the new normal . The government talks somewhere around 7. 5 . Accompanied by job creation, which is ultimately the key, coming back to the earlier question of where is the growth still coming from, yes we are. But the main numbers seem a little bit unclear on that front. So if the job numbers continue to come through, i think policy makers will take some comfort from that slowdown. Good to see you as always. Still to come this hour, a dazzling display. City puts on its finest at the vivid festival. We will bring you a special report when on the move returns. In singapore, the shangrila dialogue was held over the weekend. You see an advance. Udc we see commodityrelated shares move a quarter of 1 . The vivid festival was launched as a way of attracting more people to the city in the offpeak season. It has become a runaway success. It is sydney as you have never seen it before, lit up in a blaze of light in the vivid festival is underway again. Of the australian sensibility tends to be loud and brash. So weve had to ask some of our partners, for instance, the french [indiscernible] , very gently ask them to get bigger and louder. Creators duly obliged and still retained some elements of cultural restraint and dignity. Britains 59 productions, the same team that produced the video content for the london olympics, have turned their hand to the sales of the sydney opera house. Not even one of the Worlds Largest iconic buildings is enough to attract tourist in the light of a winter day. It seems to have worked him from his first weekend alone, 200 70,000 people came down here to the waterfront are. Just in the first few days of vivid, we year incredible reports from restaurants up 300 to 14 to 400 . One vendor said that he sold an extra thousand to letter ice creams. This years festival will crack the one million visitors mark during its 18day run. The wordofmouth is overwhelmingly positive. To come out here and see this every night is absolutely wonderful. It is full of surprises gave you can stand it for 30 minutes and still get the wow factor. It is very good, once a year. It looks very beautiful. The Customs House building has turned into a giant musical instrument. This year, even the recycling bins are in on the act, projecting empty bottles and papers on the wall like a giant game of tetris. Successful event, organizers are promising the next edition will be eager and better again. Be bigger and better again. Aboutg about like light displays, nasa has a rare corruption on the face of the sun. The footage shows clouds of superheated articles exploding from the outermost layer of the sun. It is remarkable i. New figures showed chinas manufacturing at its fastest for months. European companies are losing confidence saying chinas golden age is over. Simmering tensions surface at a Regional Security conference in singapore. Welcome to this hour of on the move. This mondayy morning, the latest health check on chinas economy shows signs of a recovery in may with numbers showing the worst of the slowdown may be over. Healthier, i think is one of the key takeaways. There was an improvement. The subcomponent is where you really get the story. Basicallyns were penciling that way anyway. The components, several of these things are worth looking at. You look at the outlook for manufacturing. That was eddie that was at a fourmonth high. Are seeing a pickup as far as demand is concerned. That is why a lot of these terms are starting to turn up more. The problem is employment. The employment component of pmi dropped further. We are basically in contraction territory, meaning less expecting to higher in the future. Technology making things simply more productive good but at the same time, when you see a number like this come down as policy makers, especially for beijing, it does not bode well as far as stability is concerned. Employment and keeping things table is a key priority for beijing. If you look at the mediumsized firms, that is another encouraging sign. 21 24 for a jump to. He mediumsized firms targeted measures are stirring to aim at this area of the economy. Still shows a contraction. The targeted measures, i guess working as intended because they were targeted of course by beijing to avoid a hard landing. Yeah. They are putting in place a lot of these steps. They are starting to account for something. A mini stimulus is what they are. Alling it especially the central bank, have managed to bring down borrowing costs for banks. That measures how much banks pay each other to borrow from each other. , that savings gets passed on to the clients. Weektate council met last and put out a statement saying the point of all of this is to the economy up because we are facing heavy challenges. They admit that. And a lot of these moves and steps are taken to make sure credit is there where it is needed, to reduce what they call social financing costs. To strike ault balance between supporting the economy and also keeping the reform agenda which is really mostly about trying to steer the its over linesom in debt. Difficult indeed. The market closed today in china. Are we seeing reaction to these numbers anywhere else . In china. Rio tinto in australia. Rio tinto opened on some of these things. Lets take a look at how some of these miners are trading right now. We will go back to the currency and just a bit. Let me show you how the big three are trading. Bhp down on. 5 . Down 1. 5 . Bhp i will get more details on that. You look at the pmi figure in china, the headline figure, 50. 8, that is fairly encouraging. But if you look deeper and for the steel industry, the pmi is having a bit of difficulty. There has been contraction for the most part of this year. Our hats that is why it is not it is not filtering through. Thank you for the update. Lets stay with china for a moment. European countries say they are becoming increasingly pessimistic about china. The economy is entering a more normal environment due to the slowdown. Underlying still, the majority of companies are looking at china. The growth story is there, lower than ever. But now they see the end of what we can call the golden age of multinationals. We will be watching for Market Reaction in india this morning after gdp came in lower than forecast. In thenomy grew at 4. 6 Second Quarter adding pressure on the countrys new Prime Minister to spur growth here. Sri lanka is hoping to raise its financial sectors. The chief Securities Regulator says he is aiming to get the country on the msci emerging markets index s s 25th teen. Companies touire elicit 15 million in shares. Overs war of words security has moved up a gear. Senior military and defense officials were in talks over territorial tensions in the region. John dawson is live in singapore this morning. Ha in also joined by ron hanoi. It has been a very tense conversation. Some very tense faces out again and small conversations and whispering corners, this kind of stuff. Joining the u. S. In the war of words. China, as its my it grows and becomes a biggest economy in the world, that is the concern. Is east china sea, what going on as to tensions. Chuck hagel gave a speech and he called chinas actions in the South China Sea as destabilizing. Shinzo abe says he does not welcome dangerous encounters. The deputy chief of the pla in hena about the hagel speech, said it is full of words of threat and intimidations. This intimidationsd. This leads to the concern of what china is going to do next. We now have a comment from the deputy head of the pla about how they are very concerned and frustrated about what is being said about china. We oppose military alliances flexing their muscles against resortingties, to threats or of the use of force or seeking absolute security at the cost of security of others. We will never allow the fascist and militaristic aggression to stage a comeback. [indiscernible] in and nothing to be afraid of. But it will provide defense equipment to protect Southeast Asian nations. That is the concern. Yes, very tense time this weekend in singapore. I will have to ask you to stand by because we want to , our bureau ha chief in vietnam. On the the latest chinavietnam tensions here . Vietnam has been trying to rally International Support against chinas basement of an Exploration Oil rig off the central coast. To hear a he wants stronger voice from the u. S. In the region. He told us he wants to see more contributions from the u. S. To aid in the regions stability. It is likely he would welcome chuck hagels comments in singapore in which he specifically cited the expiration rate off of vietnams coast as one example chinas actions that is destabilizing for the region. We saw russians are they in singapore say that he supports vietnam and china we saw shinzo abe say in singapore that he supports vietnam and china. Vietnam will use all possible , peaceful measures to defend and protect their sacred sovereignty over the sea, including legal actions. About two thirds of Global Marine trade is transported through this marine route on the east sea. Any irresponsible action that triggers a clash year will interrupt this huge global trade flow. That was the Prime Minister speaking to Bloomberg News in an exquisite interview. Legalt comes to filing action against china, the Prime Minister says it is a matter of when. We heard him talk about the importance of the chat the South China Sea which china calls the east see, to international trade. There is a possible economic retaliation by china as a consequence of filing legal action. Vietnam has seen some impact a certain sectors of the vietnamese economy because of this dispute. Vietnam has addressed that with solutions to mitigate the impacts. But overall, you guy vietnamese citizens youve got the enemy citizens who say they want to see a stronger response from their country when it comes to china. They want vietnam to stand up to china. Ofreasingly, there is a lot pressure on vietnam to file legal action. Both sides being asked to use restraint. Thank you for that. And thanks to john dawson in singapore. We will have more on the territorial tensions after the break. We will look at how the growing war of words is weighing on the minds of investors. Stay with us. Newly causing people to change the fundamental views on growth in the region. Something to keep an eye on. That could bring an impact on in theence and pricing th region. Australia is so sensitive to any economic moves in china. We have the strong figures showing the industrial Sector Holding up. That is a positive sign for australias commodity businesses. As youfident are you place your bets on those commodityrelated companies . As you said, we are seeing somebody me in terms of growth in china. A little bit week so far this year with the Manufacturing Sector and to the many stimulus the mini stimulus. A lot of supply coming on from the large producers. That seems to be keeping that market well supplied . That is a significant driver of the sector within australia. And also the australian economy in terms of trade. We are pretty cautious at the monument at the moment. Avoiding a lot of those mining stocks. Another market that china is a dominant player is the copper market. That is about the only commodity area that you would be buying into. Which companies are you making bets on . At the moment, we have a austinof holding in town in pan austin. Copper future mediumterm. Looking at the infrastructure that will go on in china and the lack of real new Mining Investment coupled with the copper space. Interestingly, china is taking ,ome Strategic Investments building copper stockpiles and increasing activity from china soes and others making acquisitions in that space. So we like that space. We have a heavy week on theomic data and moves by central bank or perhaps no move at all by the central bank in australia. What is your expectation if the decision comes tomorrow . I think the rba is on hold tomorrow and probably will be for quite a while to come. If you look at the Growth Outlook for a strata, it is pretty lackluster at the moment. Obviously, mining a distant them and taking off in the next couple of years. Theyve done a lot already in terms of knowing rates. Ofe reaction in terms stimulating the housing market, Building Construction going. But the rest of the economy is looking a little bit stagnant. Business investment and confidence is somewhat lackluster coming out of the recent touch it as the government looks to writing the deficit coming creasing a few taxes the deficit, increasing a few taxes. I think that leaves the reserve bank on hold with very low Interest Rates. That is probably likely to pressure the aussie dollar Going Forward . Going forward. Sean fenton from tribeca investment partners, thank you for your time. Coming up next, mattel hopes to make headways in china. Checking other stories, the military and thailand deployed thousands of soldiers in bangkok to head off protests about last months coup,. Coup. Coup leader says the army is in total control of thailand and it will be 15 months before any possible election. The u. S. Has defended striking a of theith a taliban. Released in exchange for five detainees at guantanamo bay. The administration had concerns about his health that prompted the deal. Critics say the move could put u. S. Troops in danger. Sleeping beauty with a twist. Capture the box office with a 70 million debut. Mattel has ruled out the big stars to raise its image in china here in it launched its first 90s barbie doll his First Chinese barbie doll. Are you a barbie fan . It is very important for mattel. Topay not sound like a story, but for mattel, it is a very important part of the chinese strategy because it has been trying to deepen the market. The First Chinese actors to have a celebrity doll. The key thing for china is to target the local market. As chinas general manager said to make barbie more successful in china, we have to make it more relevant to chinese girls. Obviously, a huge name in china. Mattel has had its thing is branded china before. Thats right, it opened a Concept Store in 2009 to huge fanfare. But it had to close less than two years later. It wasnt shifting enough of these dolls. People said it didnt really have the right strategy going into china. It went big. It did not aim for the local markets. Gone into Stores Like Walmart on a smaller scale before going big scale. It had six floors, a restaurant and a spot. And also bridge the cultural issues, for example, education being a big factor for asians and many people perhaps not wanting to spend a lot money on a play thing as opposed to an educational thing. So really trying to span that cultural division. Gone up, doubling in the last year. They sold nearly a Million Units of barbies. Every set, know your customer. Know your customer, the local. They have localized the doll to other markets . In india, it is a big hit and argentina had a target store. They thought they could replicate that in china and it turned out they couldnt. We will see if the sales continue to soar double digits this year. Coming up next, feeling the heat as the mere. Rises. Specially loses special images from the sun and trading in the asiapacific. Generally gains for the major stock markets. We will get you the Southeast Asian trade as that gets underway. First, a check of the northeast asian markets. Japan is higher as well as south korea. Take a look at the philippines, singapore and malaysia. The jail composite started the monday session lower. We will be back in two minutes here on on the move. Stocks rise after chinas manufacturing is a fivemonth high. Indonesia on alert as an erupting Volcano Forces flight cancellations. Welcome back to the program. A lot of shut today in the asiapacific. Lets get to david who was watching the session in tokyo. It is continuing its momentum. I want to show you first what is happening with the dollar yen. What we have seen in the last 30 minutes is weakening. It is basically over the 102 handle here. As far as the topix index, 1. 5 in the morning session, 1217. And a lot of momentum. Back in may, it posted its first monthly gain so far this year. As far as volumes are concerned, we are right about give or take about a fifth higher compared to the previous month average. Despite the fact that, yes, we are seeing yield. Points,p over 58 basis give or take 1. 5 . The dollar yen is weakening. Three stocks we are watching sely in japan, each eli iichiach eli da looking at a deal of 4. 5 billion. We had moodys cutting the debt rating to stable. That has reversed earlier losses. San rio, maker of hello kitty, 2 . Much as ¥3rth as billion for the buybacks. We see shares being pushed up. That is what is happening in japan. On the lunch break right now. President obama is stepping up his fight against Greenhouse Gases. He is expected to propose cutting Greenhouse Gas emissions from u. S. Power plants by at the 30 over the next 15 years. The cuts will apply to existing power plants and measured against 2005 levels. The proposals will be released by the u. S. Epa, the Environmental Protection agency a my and will be flexible with agency, and will be flexible among individual states. Through itsting hottest twoyear period on record, paul, are you feeling. He heat over there yes, we are sweating through the winter as well. It is all very lovely until you consider it is opposed to be winter and last month was very much the same. We had a couple of days of 27 degrees. The last two years with the hottest in australia on record and the warming trend is intensifying. Looking ahead, protecting an el nino event for the second half of this year, which means more of the same, hot, dry conditions which will mean some fires potentially, a repeat of what we had in october of last year on the outskirts of sydney. We had unseasonable bushfires which hashen droughts a pretty Significant Impact on the agricultural sector. We were just talking about the United States doing what it can to curb emissions. What about australia . The fact that this report came from the Climate Council speaks volumes. That is an ngo that has been rebranded. It used to be the climate commission. Also abolished has been the Clean Energy Finance company and the Renewable Energy agency. The government is planning to scrap the carbon tax and replace it with a direct action scheme. However, that has a hope of ever becoming reality. Science minister here in australia for the First Time Since the 1930s. All of those measures tell you pretty much all you need to know really about house years this government takes Climate Change. Paul allen live in sydney on a hot winter day. Lets go to indonesia. The weather is having an impact on flights. Indonesia has raised its ok no alert to the secondhighest level after an eruption over the weekend. Nearby areas and disrupted flights as far away as australia. What is the latest on this serious ok no serious volcano . A number of domestic flights to the eastern parts of indonesia have been canceled due to a powerful eruption. A spokesman at Indonesia Transport Ministry said they canceled five domestic flights from bali airport to eastern indonesia. According to one spokesperson, it also canceled flights from five airports in eastern indonesia. Domestic carrier, line did also. Lion air it directed last friday creating ash clouds creating disturbances. Flights in and out resumed yesterday afternoon. According to the provinces regional Disaster Mitigation agency, volcanic activity, including gas and volcanic ash is in decline. It is a small standing Volcano Island largely uninhabited by used by locals for farming. We will continue to track the volcano and if you are flying today from indonesia and to indonesia, best to check your flight status. Lets time time to check some of the corporate headlines. Aaron meritslure away from airbus. It is talking about buying the lureemirates emirates away from airbus. It is talking about buying the 787. A deal between etihad and eight tell you is close but not yet sealed. Italial enter and a tile is close but not yet sealed. It will enter into final discussions only under certain conditions. Has displayed perhaps the ultimate in fine for those of us who do not have a jet. It is an airborne apartment with a bed, a bath, and the services of a personal butler. Etihad is not the only one making highclass travel a little more classy. Here are some of the more look sure he is options more luxurious options. Is 21,000 new york to london still a lot of money if you ask me. Coming up next, we will check on how the aussie dollar is performing ahead of tomorrows rba rate decision. Economists thought there would be a gain. This get some insights on did drop in south korean exports. Guest. The we will eat up with korea. We have this report on exports. We have Inflation Expectations moving. What is your sense on how the korean won reacts to all this . Unexpected weakness was on exports probably has something to do with the currency. As you say, it has appreciated about 5 in the last couple of months. Korea has not been immune. It has been a nonwelcome beneficiary of capital flows in search of yields in this low volatility environment. You think thats why the authorities have been getting more vocal in their concerns about korea and strength. Whenever the korean won appreciates to around the 10 level against the japanese yen, we see in upping of the rhetoric in terms of the undesired korean won strength even by actions even if the actions by the. Bank. The korean it is almost predictable, both sides complaining about the impacts on earnings commanded exports. Important Interest Rates decision tomorrow in australia, the rba meeting. I am curious how you see the aussie dollar trading ahead of that and as we come out of the meeting. Dollar at around . 93 is almost identical to last month when the rba last met. They did reference the currency is being high then and we expect them to repeat that rhetoric. We do have the currency under a little bit of pressure this morning ahead of that meeting and that is jurgen by some pretty weak numbers on house that housealing Price Inflation has moderated quite substantially in the last month. Then we have shockingly weak building approvals. Not all is extremely well in the australian garden. That will keep the rba very cautious. They will certainly maintain their neutral bias and suggest rates will be on hold for a concern for a considerable period of time. I think they will be a little bit cautious about suggesting the economy is performing well enough to think that rates could be rising anytime soon. And their concerns particularly of an investor activity driving up prices. Factor in the benefactor with pmi number seven the weekend. Weekend. S over the the pmi data that we had this the hsbc last week suggest perhaps a reacceleration in chinas industrial activity. At the same time, you have relentless downward pressure on the iron ore. Ofrepresents a third australias commodities export story. Low. New cycle it is clearly a worry. It tells you that australias terms of trade are continuing to depreciate. It should be reflected in a week Australian Dollar. There is probably more focus on the Iron Ore Price than on the broader china growth picture. To our mind, it suggests there could be a little more aussie pressure ahead. Wait to seeave to more pickup and volatility. It is the low volatility environment that is keeping the Australian Dollar well supported in the 90 294 range. That is interesting, the low volatility state. It seems that these geopolitical issues around the world are being ignored at the moment at least by the aussies. Thats right, it has been remarkable how many geopolitical flashpoint there are, whether it to chinan to ukraine and japan, australia seems to be completely disinterested. The ongoing priming of the pumps by the Central Bank Says the continuing as they are deal with to volatility appeared a could mean an economic shock, perhaps some unexpected hiccup in u. S. Inflation that jolts the u. S. Bond market and in turn potentially supports the dollar pared at the moment, there is more chance that that will shake the markets out of its current low volatility than anything that occurs on the geopolitical stage. Thank you for joining us ahead of the rba meeting tomorrow. We will be watching it closely. Coming up next, early pressure on indias new leader as the economy grew less than x the dead. Lets take a look at some of the stories we will be following this week. On tuesday, some big tech names will be in taipei. Traders at the annual show include the acer shadow and renee james and a media tech chairman. On wednesday, the corruption trial resumes. The judge discharged the previous jury after one of the members had to be dismissed on health grounds. And russians are they will hold talks with other g7 leaders in brussels on thursday. Meeting without russias president after choosing to boycott a plan instant she. Openng ahead to the india after gdp came in lower than forecast. The pressure building on a new Prime Minister right out of the gate. Good morning. You are very right. We have seen one of the worst run rates in the last 25 years in the Indian Economy with gdp growth coming in below the mark. See gdp growth coming in at 4. 6 , below the mark for the fourth straight yeatime. Finance minister talks about reviving growth momentum and he said that we must really move forward toward fiscal discipline where we can reduce the deficit, contain inflation, and improve growth rates. He also hinted that higher fiscal deficit Going Forward will be a crucial area. The new government has inherited an economy where gdp has grown by 5 for two years in a row and fiscal discipline will be heavy. The Central Government will really keep the benchmark Interest Rates to fight inflation rates. There. T happening we will be following the Market Impact later today. Sydneys vivid festival was launched to attract more visitors to the city in the offpeak season. It is a runaway success. Paul allen takes a look at the dazzling nighttime displays. It is sydney as you have never seen it before, lit up in a blaze of light. The vivid festival is underway again and exhibitors are under orders to make the city as bold as possible. The australias sensibility tends to be a loud and brash. So we have had to ask some of , very gently asked them to get bigger and louder. Creators duly obliged and still retain some elements of cultural restraint and dignity. Britains 59 productions, the team that produced the video content for the london olympics, have turned their hand to the sales of the city upper house. Worlds mostof the iconic buildings is enough to attract many tourists in the light of a winter day. Worked. To have from its first weekend alone, 270,000 people came down here to the waterfront. Few days ofhe first vivid, we are hearing incredible of 300 ,f restaurants 400 . One of the ice cream vendors in the harbor said he sold an extra thousand gelato ice creams on saturday night. Will crack onet million visitors during its 18day run. The wordofmouth is overwhelmingly positive. To come out every night and see this is absolutely wonderful. It is full of surprises. You can stand there 30 minutes and still get the well factor. It is very cool, what sierra, and once a year, and very beautiful. The Customs House building has turned into a giant musical estimate. Even the recycling bins are in on the act. As with any successful event, organizers are already promising the next edition will be eager and better again. Breaking news now to share with you. Intel, confirming that its Southeast Asia managing director has died in a climbing accident in the United States. He was one of six climbers who is thought to have been caught in an avalanche on Mount Rainier in washington. Theyre two guys and for clients may have fallen more than 3000 feet from the last known location. We will keep you updated on the story. It is the middle of the asian trading day. Youre watching asia edge. Top stories this hour, stormy waters, simmering tensions come to the surface at a security asianue in singapore and stocks rise as chinas manufacturing picks up speed feeling the heat, australia swelter service to hottest years on record. Media pressure on indias new premised her as the economy fails to respond to his landslide the dream. Live in mumbai. Aipping the switch on spectacular light show. We have a special report on the vivid festival from sydney. Barbie is back in china. Will the new model fair better than her predecessor . A very good morning to all of you. I am watching the markets for everyone this morning. Those that are open if we do have a few closed. The highest level since november of last year mostly because of a strong morning session we saw japan. The nikkei is at a twomonth high. The topix index rising to its highest level. The yel
comparemela.com © 2020. All Rights Reserved.