President xi jinping. Day two of a threeday stroist china. These are live images coming through from there at the moment. We do have, of course, arriving here threeday visit, accompanied by a whole gamut of Business Executives from germany as they try to drum up trade between the two countries. Lets look in more detail and get to beijing itself. Stephen engle is there with a closer look at the visit here. Steve . Im looking at it just as you are right here. Shes going to be given full military honor welcome to beijing as the premier hosts her. Met her last night after she flew in, her first stop on the three, almost fourday trip to china. Her seventh trip to china as chancellor since taking over as chancellor in 2005 and trade will be the focus of this visit last night. As i said, she flew in, merkel met with the premier and two, of course 0, exchanged the pleasantries before the cameras about the importance of building mute chur trust and, of course, business. Germany is chinas largest trading partner in europe and obviously china is a key market for german goods, be it the audi sedans or b. M. W. Theyre very popular here. She has also brought with her leaders from many key German Industries including the heads of deutsche bank, deutsche post, liamens, lufetansia, airbus, volkswagen, among many oceans. Yesterday she toured a volkswagen plant with the chairman martin wintercorn. Shes being given full military honor welcome in beijing and said to meet president xi jinping later tonight for dinner. Who, of course, was just in germany in march. Business is one thing, isnt it, steve . There are a lot of other issues, human rights issues, et cetera, et cetera. What about the more sensitive ones, do they get swept under the carpet or will they be dealt with . Well, im sure they will be dealt with behind closed doors, not necessarily in front of the cameras. They will say all of the right things and talk about their great relationship as you see here in the video right now, merkel is on the steps of the great hall of the people with her delegation. Basically on the geopolitical front, im sure they will speak about the fighting in the ukraine that will most certainly be discussed given merkels outspoken comments already. Pollution in china, shes mentioned that. She mentioned it yesterday in the province saying this has to be something China Addresses as they push industry to the west in Sichuan Province and elsewhere. And groups earthed her to raise human rights issues. Its believed merkel could press the chinese for the artist that has not been allowed to leave the country of late, to allow him to attend a gala in germany. Of course, a lot of his works are now on demrace in large show in berlin. Again, headlines going to be coming out of the press conference and other events the next couple days will most definitely be centered on trade and business and investment. Rish . Steve, thank you for that. Steve engle. Growth continues to be priority number one for chinas Economic Policymakers but in a bid to uphold that 7 1 2 growth target new evidence peoples bank of china, pboc, is using unconventional tactics to spur growth. Lets look at what they are. This gain is that question we ask, when is stimulus im talking about on the fiscal side, actually stimulus . Indeed. It calls into question the Monetary Policy rule versus fiscal policy role. Traditionally, central bank deals in Monetary Policy, government fiscal policy. In china, of course, you dont necessarily have restrictions sa you have elsewhere around the world. It appears pboc, under the leadership trying to carry out of the orders of the communist party to maintain 7. 5 g. D. P. Growth this year, and its resulting in unconventional policy decisions. Credit suisse, everbright securities, jl morgan have taken a look at this. Jpmorgan says some of policies lack transparency and contrast with the pbocs effort to shift to a more marketbased credit scenario. These policies are very specific and they target Key Industries in china that need a little bit of help. All right. Question is, and more specifically, what type of fiscal tools do they appear to be using . I knew that question was coming. Lets look at what exactly that i offer. For example, 16 billion relending facility for agriculture and small businesses. Earlier in the year, another 300 billion yuan for lowincome housing. If you look back in time, china widely used relending back in the 1980s and 90s. Not necessarily looked lying upon by economists but it could target and address some of the issues in industry wheres there are high refinancing costs without stoking depth problems elsewhere by say acting largescale stimulus program. Fws being targeted. Thank you very much, indeed. Some of the other stories making headlines, hsbc may exit another foreign market. This time libya. According to sources bank is willing to close operations after local representative fails to meet hsbcs requirement to lend the shut offs in iraq, japan and latin america. Executives have been simplifying the Bank Structure and really focusing on key markets. Worlds Biggest Pension Fund suffered its worst quarterly loss in two years. Japans government Pension Pension Fund fell. 1 in the last quarter. The fund is under increase pressure to overall invftment strategy and move into riskier asset. Commonwealth bank of australia says its Financial Planning units will indeed stay. The lender says improved supervision and advises firmlyness place. Last week apologized for clipets losing money due to invftment advice from business divisions. Lenders paid nearly 50 million in compensation to more than a thousand clipets. Agreed to review advice given to people who actually suffered. Out of the headlines, issuing starne warning while also praising Central Banks out there. I. M. F. Director lagarde hinted to a global slowdown unless its given, quote, booster shot here as well. Johns here to explain what shes talking about. Theres also talk of, well, i. M. F. Lowering Global Growth forecasts. Hints towards that again. This is in the conference on the economy in the south of france. It was an i. M. F. Meeting to make it clear but a little concerned, the Second Quarter report comes out for i. M. F. On Global Growth forecast and what theyre saying. Hinting towards a little downgrade. Last one, of course, back in april. And that was 3. 6 growth and 2014, 2. 9 in 2015. She was pointing out that they would be slightly different figure from april. In other words a downgrade because she said, as you mentioned, warned lackluster investment, mainly slower growth. Recovery in the economy globally less robust than expected. Why . The depressed levels she called them of investment, Central Bank Efforts may be finding her limit and she urged governments to inject boost into infrastructure, transport across the border. Her quote was this despite the many responses to the crisis, recovery is modest, la bore ourks fragile and measures to boost demand despite the good will of Central Banks will find their limits. What shes saying, Central Banks have done all they can, money, governments, its dwrurn to come up to the groove. I guess the question has to be, whats got on to this . It looks as the economy son better footing at least. Why make comments now and what is she recommending . Shes concerned about lack of infrastructure spent, for example, transports looking ahead, education, power, water, communications. All of this about government spending. Yes, Central Banks need to pass it on and spend, spend, spend. Her point is using figures from the World Economic forum. She said china, for example, sees no brutal slowdown. That was the uptick. Global spending on basic infrastructure is 2. 7 trillion a year. Shes saying it should be 3. 7. That 1 trillion difference equates to the south korean g. D. P. That shows you how big the gulf is and governments must spend on building transport, you mentioned communications, health, education, et cetera, to come up with the level where they should be. John, thank you very much. Jon dawson there. Coming up to speed with these markets here now and what were looking at new trading week kicks off. Now, i guess, well into the second half of the year, right, david . Thanks, rich. Keep in mind last week we had very strong run in asian stocks. Still near sixyear highs for the regional benchmark there. 147. 45. Once you get above 154, so far away. And we could actually be hitting new highs. Keep niped as we look at the market, a big quiet in volumes are very thin across the region. For example, in australia were down about usually 50 lower compared to this time of the day. Japan about 15 lower as far as turnover. Keep in mind back on friday u. S. Markets were closed. We had a little weakness coming on from europe. That said, lets look at the currency markets. Big moves here. Looking at sterling, of course. Little bit of a weak start to the week. But that said, 170, 138. Compare the peak we hit on friday, 170, 180. Down about. 5 of 1 . Looking back over six years, that trend line is still fairly clear. A lot of strength there coming from sterling. Lets look at quickly now let me get rid of that line for you, dollar yen. Now something to worth noting for dollar yen lets look yeartodate charge to put it in perspective for you. The trading range that narrowed quite substantially for dollar yen so basically looking at lower lows and as far as here we go 102. 18 for japanese currency. Back to you. Thanks, david. Next whats next for asias biggest oil and gas services company. Exclusive interview with the the president after this very short break. One of asias biggest oil and gas service companies, expansion opportunities, expecting in americas, west africa and middle east, recently launching its First Support vessel. This is off brazil, ahead of schedule. Joining us excusively from kuala lumpur is the companys esident and group c. E. O. Sherilo. Great to see you. What is the expansion looking like now . How much is organic and how much of it is inorganic . Good morning, rishaad salamat. We have a very good balance of organic and inorganic growth. We have been building substantially in the past decades in the areas you have seen us do acquisitions in. For example drilling doing for over a decade and the seed oil business into our company. This strengthened our abilities and expanded our market. So its a good balance between homegrown capabilities and also ilities that require that we acquired. The same again for the upswing business we acquired. You acquired new fuel malaysian operations. This brings me to another point, a lot of u. S. Companies are looking at the domestic market, looking at shale and opportunities that it presents and divesting themselves of upstream operations in other parts of the world. Newfield would be one of them. Are you looking at some of those divestments themselves and if so which ones . I think we are always looking at opportunities to build a Regional Independent oil company. But it has to be something that is substantial and also which allows us to operate. We wont be going into opportunities where we will just sit in as an investor. So at the moment, bidding of assets being sold go ahead, sorry. Please, go on. Sheril, go on. At the moment we are bidding and also in vietnam, some opportunities in china, which newfield china is also offering on the market. So youre quite busy in that space because there have been quite a few reports about what happens with some of the murphy oil. Lets look at that. Thats one of the names touted around. Were not looking at murphy because its just an investment position. Ok. Then theres also a bid on rock, another one. Youre really in the headlines it seems. No, were not looking at rock for sure. Predominantly we are an oil 0 service company. Both bulk of our assets used to capture opportunities across the value chain and across life cycle of an oil field. For example, we start with e. M. P. , we can do pipeline facilities, installation, and also do decommissioning of drilling. More than 90 of our revenues right now are coming from oil service and remain strong as an oil service company. Absolutely, shahril, i know that. Where oil prices are right now, the question remains, many of the unprofitable fields are now profitable and economically viable. That must set up a lot of opportunities for you. How do you make the most of that . I think its important to see its always volatility in oil prices, we need to see what the longterm oil price would be. And i would be conservative and not be too eager to be looking at opportunities when oil prices are up. Everything becomes viable. We need to have a more conservative view on oil prices when were doinging wa decisions. When were doing acquisitions. So you must take a conservative view on the oil price and, of course, as you mentioned not look at the volatility. Were in maybe an era of oil prices being about 90. I remember talking to people 10 years ago, anything over 70 releases a whole a whole series of wells which would not ave been able to be drilled. Thats why we need to be conservative. Fields are getting more difficult and smaller and we need to be coming up with new techniques and capabilities in order to make this project viable. Thats one of the reasons why we have configured our company in the way that we have, the way were able to capture the value across the value chain and aggregate the i. R. R. In order to make this more difficult field viable and profitable. Well, the other thing is were looking at the balance sheet. You have Something Like 27 billion in terms ofs or. Current order book. You said that should last four four years. Are you confident you can maintain that . I think its important for us to continue to bring in at least 10 billion or 3 billion u. S. Every year to replenish what work we do during the year. For example, we will export around 78 billion this year so we need to go out and win the same amount in order to maintain that order book and always give a fouryear visibility on our arnings. And our e. P. S. Investors love that, having four years of visibility. Not many people can do that. Tell us something in order to capitalize on that and to keep that fouryear horizon, where are the opportunities for you globally . Were focusing in central america, in our home base in the middle east and also in africa. East and west africa, where new projects are coming on and assets that we have invested in and people, integrated project Management Team are all geared towards capitalizing on opportunities in these areas. Shahril, great talking to you. The chairman and c. E. O. Joining us there from kuala lumpur, where theyre based. Have to take a break. Up next game, set, match. And Novak Djokovic back on top after winning wimbledon. Right. Lets check on some of the stories making headlines around the world. The middle east where israel arrested six jewish suspects over the killing of palestinian teenager whose death sparked a day of violent protests. 19yearold Mohammed Abu Khdair was abducted near his home in East Jerusalem last week. His charred remains were found shortly afterward. Autopsy results indicated he was still alive when he was set on fire. An act of revenge, they said, for the earlier killing of three teenagers. Ukrainian groups claim a tactical victory against prorussian resurgents after capturing another area in kiev. Raising the flag over administrative buildings. Kievs been under militant control since april. They vowed to regroup elsewhere and fight on. Having a look at sports, news and tennis Novak Djokovic defeating Roger Federer to win second wimbledon title and reclaim top spot in the mens game. Went to five sets, third coming out on top to take seventh grand slam title. It ends a run of three straight defeats in major finals. And were down to the semifinals in the world cup this week with brazil, germany, netherlands and argentina left in the competition. The United States has been knocked out of the tournament, viewers there are still watching the games by the millions. We exclusively spoke to the c. E. O. Of espn about increased interest of the game from america. Our average Television Rating is up 39 , despite the fact its up that much, digital viewing has been through the roof. This will be, is already most streamed sporting event ofal time. Of all time. Were 70 beyond sochi olympics. We will be more than double sochi olympics before this is over. And that was the previous high water mark. Can you see more on our exclusive interview with espn chief executive john skipper. Coming up tomorrow. This is bloomberg, this is on the move. Snoor from berlin to beijing, merkel in china to increase trade ties with 170 billion. The candidates are neck and neck with the election days away. Slopping that shopping is slowing for shopping is slowing for chinas luxury retailers. Well, it is one of the biggest democracies in the world and indonesia upon president ial candidates indonesias president ial candidates are trading barbs. Get more from our South East Asia correspondent. Key issue is always a in races there and it is no different this time. It is an issue at the heart of this election. We have seen decades of corruption and voters want change. They want a cleaner government. Both candidates have committed to that. Loggingpoint, illegal and mismanagement is costing the government more than 7 billion, according to human rights watch. That is more than the health budget. An internal report shows that government officials took 1 5 of ver 30world bank loans o years. His is a country that is rich in resources and accounts for 65 of total x boards. They failed to meet exports. They failed to meet, despite a commodities boom. Corruption is a way of life in the country. Ministers, ceos, and bankers have been convicted for graft. Can that corruption is at the heart of this is corruption is at the heart of this election. Is there anything between them at the moment . What can be expected here . He looked like he was dead. Things have turned around. Well, it is a tight race. A victory could mean going back to the past, a more closed society and a stronger military. Some say he has been beating a nationalist drum. What is curious is that a number of corruption scandals have plagued the coalition party. He focused on this issue. More seen as fostering a inclusive government. The proposed changes are not so much in terms of economic reform. Bureaucracy. He is a selfmade man. This issue is this. His ties to the former resident. President. There are questions about what role she would play if he became president. Would she end up pulling the strings . Thanks for that. In a few days time, we will know the result. Coverage this week and a special show with our southeast correspondent. , thursday,ing up Hong Kong Singapore time. Mayil sales fall again in for the fourth straight month. What is happening . Mas what happened . They came against what people were thinking. Andor sales for jewelry watches. 20 of retail sales and it was down 24. 5 year on year in the month of may. It was the second largest drop in over a decade. Use the same brush on it. There must be some that did better than others . We had strength and super supermarket sales. We had strength in footwear accessories. Cosmetics and medicines were up. Is that because we have a different type of chinese person coming over right now because of the anticorruption policies in place . Gete are people who want to ordinary stuff and do not want to go to highend jewelers. Push for that in china and that is hitting watches and jewelry. We had a drop in the price of gold and that is another factor. Consumers can only come to hong kong so many times. Do i go to call lump or kuala lumpur . There are visa restrictions being eased in many cases. Absolutely. They see the opportunity to pay for their trip if they buy a highend luxury product in china. Higherften priced much than elsewhere and they can buy three or four of those items to pay for the price of the airline ticket. Thank you very much. Ok. What time is it . It is four minutes past the bottom of the hour and we have Chinese Markets getting underway this morning. Lets have a look at what is going on with hong kong in the mix and shanghai, as well. Show a slow start. You can see it. Lets look at the percentage movers here. The gains here. You can see the top three. The losers are the big chinese oil explorers. Markets are opening up. Manila is continuing the run and entering a bull market. In china, a few things i want to clarify. There is a document from a security regulator and a banking regulator that outlines another piece of financial reform. Commercial banks, for the First Time Since 1997, will now be allowed to repurchase or buy back bonds. The statement has let is yet to be final. We are taking a look at that from the security regulators. These are stocks we are watching closely and hong kong. We are seeing a little bit of an upside full top upside. Merkel is in china. They will be looking at a joint venture between air china and another airline. We are seeing cost and revenue on the back of a state visit right now in china from the german chancellor. Keeping on that theme, the president is in south korea and we have the bank of Communications Winning a mandate to the first mandate. China pacific is up 2 . They will be paying 36 million to get a state and agricultural. Agricultural. N the remnant be is at the lowest level since 2005. Bi is that the lowest level since 2005. We will be back later on. In china, they find it is easy to get a luxury. The chinese luxury booking service, i hope i got that right. It does sound a little bit like uber. But, not. You did get that right. It is similar. Adding ating end. Y and to luxury you mentioned uber. It is similar. They offer buicks. What is the difference . The question. We have not tried it out. It is similar. It is based closely on the uber model. They will work with show for companies. Ali baba. Well. Ommerce done they do not back the arch rival archrival. There will be attention. How did you guess. Guess . They compete fiercely in the market. They are breaking away a little bit with the luxury end. Says that they are using the taxi booking services. For anything, real estate to cinema. Few namestioned a here and it gives me the impression that there is a lot of competition here for taxi apps. There are. The two big ones were mentioned. There is also lyft, which is announced a launch in beijing and easy taxi. They are all trying to grab market. None of them have at the luxury end. Market in china is evolving and the government is starting to look closely at what is going on. There was af may, draft issued that said they are regulating services and looking closer at the industry. That could require the companies to share information or consider, as an extreme example, putting all of the services under the government, a huge blow to these companies. We do not know what will happen. The government is looking at what will happen. They are keeping a sharp eye on this in the market. Thank you. But seven look at the other corporate stories making lets have a look at the other corporate stories making headlines with john dawson. A person close to the matter wouldhat dov charney stabilize the company. He left the company and they would be in default. Ofleft after allegations misuse of corporate funds. Claims a deal will be made during merkels visit to beijing. Cost and revenue. Y have struggled to apache,gas producer, says to be selling its stake of lng. They are in talks with potential wires buyers. They announced that they would be selling 10 billion worth of assets and look to cut down on that. Debt. Those of the corporate headlines and i am john dawson. Bringing down the house. Why some say that the property bubble is about to burst. It is a day in tokyo. Just seeing a bit of a move out there to the upside. Nothing to talk about full faith left picture. We are looking for a lead. Section. Ave the sydney is pretty much flat there. The index is that 45 minutes. Wading into fiscal waters. Are trying tos spur on growth. We are talking about china home prices starting to fall in cities across the country. Warnings of a property bubble. As byk, as seen analyst. Are we about to see one happen . Yes. We will look at the property market. One view says do not worry because the risk is overblown. There is weak evidence of a property bubble. Before we get to that, look across 70 cities surveyed. Rice is falling. 35 out of the 70. The market has turned. Do not worry. Let me just show you nicely and make it clear. Incomes. Look at incomes. Raising house prices and do not forget about wages going up. They are underreported in china at the upper end and house are overestimated. Finances are still healthy. The level of savings and or mislead outpaces the amount of household debt. Generally, there is not too much. They have to think about running away. Is a banking system. They say no. The bigger bank, especially a anre, have exposure to internet property. That said, looking at this measure, there is a market and a generalization that there is an. Versupply some are in trouble and there is an enormous reference between the cities. What does this mean for you, as an investor . By that, look at a bigger name. Look weighty and credit means consolidation. You look at healthy valid sheets. That is it for today. Mercedes is going to bring. Ack over 1 million. They have been laid. What does the other carmaker have to offer . They are left with only mercedes. Now, they are going to bring back the top of the line sclass. Than twice the price of the most expensive rollsroyce. Is known as a limousine. It is known as a limousine. Of seats. It is the biggest production Passenger Car the world. It is meant to invoke the 600 series limousine. Uffd to show for che requires themoal to produce cheaper cars. Like this00 29,000 one. They have to keep the luster ,ith a line of highmargin cars based on the sclass. They have the bottom and with the luxury cards. There are rumors that we will see a nameplate on a mercedes at a couple of car shows. Racing to the finish. We will hear from one of the millionaires. That is coming up. Again this race weekend. Ryan chilcote caught up with a russian millionaire to find out how he is trying to shake up the sport. The champion of siberia before he made hundreds of millions selling beer and credit cards. Now, pumping his money and energy into his own team. He wants to talk to me about it while he does some writing riding. What is this . Is it about making money . I would rather spend money this way. Rather than prostitutes. Week, you have full access. It is another day on the road and a chance to put feet up and rest legs. Average pro will cover 30,000 kilometers a year and there is just a couple of hours race to 219 kilometer the top of a mountain. Race and it ise time to talk strategy. The have to take it. 200 kilometers high in the alps, he is attacking the finish line. He arrived at least part of every race. Win. Kes to good. He checks in with the team. They are in second place and looking dangerous. The riders are on the final stretch and they are not the only ones suffering. He rushes to find a television for the finish. Come on. We have to finish the job. Second. They finish three seconds behind the winner. Are you happy . No. There is no second place. Remember who is second. I want to win. Is one of the most competitive and driven people i have ever come across. Money. Ke it is the passion of my life. Rising from Humble Beginnings to become one of the most successful entrepreneurs with a bank on the stock exchange. It was a good start. We do it. That is to be the winner. I am here. I am the man. He is number one. Ryan chilcote. Beautified it even easier to stay in touch with on the move. You can get me. Hello. We are live in hong kong. The seventh trip to china. Merkel is in beijing. Not fast enough. Forecast. Ts breakout american moment. We hear from espn on how many are tuning in. Merkel is in beijing. It is day two of her visit to china. We are in beijing with a closer look at the visit. Trade is the focus of the visit. The seventh trip to china as a visitor. They had a big ceremony on the steps of the great hall of the people. Street from the square. They will hold a conference later on. She was given full military honor. They will meet later today with the president , who was in germany in march. You are seeing merkel in beijing. Comments thisw morning before going into a closed door session. She called china and germany ties important. Germany is the largest trading partner in europe and a key market for goods. Sedans,. S, she brought leaders for many companies. And bolts like an volkswagen. A tour of a plant there. She wants to see you the Investment Trends that are happening in other parts, rather than the coastal china. She went in when for the start of her 3. 5 day trip. But she brought loads of Business Leaders to side many agreements. There are other things on the agenda. Human rights, intellectual property, and environment. Absolutely. She talked about that. She said that the relationship between germany and china is not limited to economic corporation. Water ration. Cooperation. The dialogue will extend to societal issues and human rights. Merkel toe urged raise issues on their behalf during her visit. She may push for an artist to be in germany. She will talk about global high six all it takes and the and the politics fighting in ukraine. She commented about the pollution problem in china. Thank you very much for that. Growth continues to be a priority. The number one priority for chinese Economic Policy makers. They have been ordered to keep to the 7. 5 target. China is using unconventional tactics to spur growth. We have more. This Monetary Policy and fiscal policy is getting blurred. Well with not sit those who believe that Central Banks should focus on Monetary Policy and government should focus on fiscal policy. He is carrying out the orders of the calmness party to maintain a 7. 5 growth rate. I have come up with unconventional stimulus measures. A quota for a Lending Program that is your marked for agriculture and small business. Another 300 billion for low income housing. You are seeing targeted stimulus programs carried out and you see these, on the fiscal side and not from the central bank. And economist said that the central bank has invaded the area of fiscal policy. It is money that should have been invested and was not. Absolutely. Also, this is the Infrastructure Projects we have reported on widely. Many rural programs have seen reserve ratios cut and some markets are estimating that we may see another cut coming up later this year across the board. The concern and jpmorgan has forces, is lending that was popular lax transparency and runs inconsistent to the current push to become more marketbased and less tied to the affairs of the state. Lets take a look at some stories. Another foreign market. The bank is planning to close operations. They failed to meet the hsbc requirements. The chief executive is focusing on key markets. The pension fund suffered a quarterly loss. The Government Pension Investment Fund fell. 8 . Pressureer increased to overhaul the Investment Strategy into riskier assets. The bank of australia says that they will improve supervision and are trying to. They lost money due to Investment Advice from those divisions. Toy have paid compensation 1000 clients. The advice given to people for those who did suffer. She is making them again. Issues a stern warning to the world government and comes in to praise central government. She hence that the global slowdown is in danger unless investment in infrastructure picks up and there is a shot in the arm. That is right. There is an economic conference and and imf meeting. Said there was no brutal slowdown expected. They said they want to meet the target and will spend money on infrastructure. That is what they are going to do. What she said, without saying it exactly, is that the Central Banks are playing a game. They are not passing on infrastructure, transport, water, electricity. And warnedaking against lackluster investment leading to slow growth. The economic recovery pick up will be less robust than expected because of depressed levels of investment and centralbank efforts could be hitting limits. She says that despite the many responses to the crisis, the recovery is modest, laborious, fragile, and measures to boost demand, despite goodwill. I mentioned before that she said that they want to starts bending on basic foundations. This is very true. Why now . What set this off . What are her chief concerns and what is the policy description she has . , the second half of the year. He imf report comes out that is when we could get a hint. That the number at 2. 9 . Asted she did say that it would be slightly different from april and a little bit lower. She points out the global spending on basic infrastructure is two point 7 trillion a year and she says that it should be 2. 7 trillion year and she says it should be 3. 7 trillion a year. It they need to boost significantly. Thank you. John dawson. What does this mean to having any effect right now . It is a mixed bag. The bulls and the bears have their hats on. Unless you are in manila or jakarta. Those markets are the latest to open up right now. Together, everything the regional benchmark is underwater. We had a sixyear high. It is over the asiapacific. It is worth noting that the market story is basically no trade. Volume is substantially lower across a major market. You look at what is happening lowerere is about a 25 level, compared to today. And ite a look at japan is up 40 . Lot to tradey a on. It is quiet on the data front. We have markets close and are waiting for our first catalyst. It could be a bit of a profit kick. I want to show you currency. Five days lower. This is june 17. Take a look at the pound sterling. The same story. A little bit of weakness there. Last friday. It will seem to hold. We are looking at higher lows there. Japanesee a look at currency now. That it hasre is been muted for the most part. Trading range,e and i pointed this out our it has narrowed. We are looking at lower highs and a support level, for the most part. That is the story. Take a look at the currency markets. A busy weekend, wasnt it . Wimbledon wrapped up. The mens finals were decided. Novak djokovic reclaims the top spot. Theserv comes out to take seventh grand slam and Roger Federer ends his run. Come, a fresh debate on recovery and the imf is having second thoughts. We are joined about that. The semifinals and the world cup this week. The netherlands and argentina. Viewers are watching the games by the millions. The exclusive interview. We have elevated interest and more than that in the game. Our average Television Rating is 39 , despite the fact that that is up that much. Is up. Ital viewing this will be the most watched sporting event of all time. We are beyond the sochi olympics and the sochi olympics before this was over. That was the previous high water mark. That was john skipper. Text that tomorrow on bloomberg. Catch that tomorrow on bloomberg. In yorkshire, of all places. Ryan caught up with a russian millionaire and found out how is going to shake up the sport. He put the champion of siberia before he made hundreds of millions selling credit cards. Now, pumping his money and energy into his own team. He wants to talk to me about it while doing writing. Riding. To what extent is this about making money and you being a rich guy . I would rather spend money this way than on casinos or prostitutes. We are one week into the tour of switzerland with one of the best teams in the business and we have full at this. For the riders, it is another day on the road. The average row will cover a year. Ilometers there is only a few yards before the punishing race to the top of the mountain. Race and it ise time to talk strategy. You have to be all. They have to take it. Beat all. You have to take it. 200 kilometers ahead of them, alex, they attacked the finish line. He writes part of every race. He likes to win. You see it. Good. He checks in with the team. They are in second place and looking dangerous. They are on the final stretch. They are not the only one suffering. He rushes to find a television for the finish. Come on. We have to finish the job. They finish three seconds behind the winner. Once are you happy russian mark are you happy are you happy . Not at all. I want to win. Not to be second. Of the most competitive people i have ever come across. I am the happiest man on earth. I make money. I go for the passion of my life. Rising from Humble Beginnings to become one of the most successful entrepreneurs with a bank on the stock exchange. A rider wasspent as good. I would not be successful. It taught me to be the winner. I do it. I am here. I am the man. He is number one. Ryan chilcote. Bloomberg. All right. Lets talk about what is happening next. The shift about downwards. They are looking at sterling, which seems to go up and up. As promised, focus on the foreign exchange. Bank of australia. He is in sydney. Ok. Theyre in sydney. Lets start off with the prospect. Quite effective. Shortlived. What will it take to go down further . Well, first of all, i think there is too much to send it down. Underlyingt the factor is the australian economy proving to be stronger than narrowed to at is low with 1. 4 of gdp. I think that investors are starting to come and buy australian assets after a short time. Is lookingian dollar to track. Yeah. What about economies doing better than expected . Schisms. A lot of there is a possibility of a rate cut coming through. They could help. What is your take on that . Itwe are not anticipating cutting Interest Rates. There is a market price and a hedge to potential. Itself as larger and larger. We are not in the camp that they will cut Interest Rates. We do not think they will follow through and we do not think that will weigh on the australian dollar. It is interesting that the rates have moved and have not had an effect on the australian dollar. The marketorrect, will see a leg up. What is going on right now . There is more depreciation and a but love further depreciation. The boj would, as well. We are seeing budget news. Yes. At the moment, they follow the path of treasury and if we get a drift in treasury yields, we will see a grow higher. Japan are the collapse of surplus. We get it on tuesday and we anticipate the risk dipping back down into deficits after surplus. We think this will push the dollaryet higher and the collapse in a current account andlus is equal to 3. 1 gdp what is a current quarterly account deficit in japan. What about the dollar . When are we going to get as much expected and anticipated prolonged Dollar Strength . I do not think that will happen until the First Quarter of 2016. That is when we anticipate moving into positive territory. Even when they begin to lift Interest Rates and the second half of next year, we have a more temporary affect on the dollar and it will drift a bit lower. It is positive in the First Quarter. We anticipate strength. Thank you for that. And exarmy general goes headtohead in indonesian elections. Boosting business. Merkel arrives in beijing. The taxithe rise of app. Competition set to go up a gear in china. And neck ande neck the vote is days away. Lets talk about that. They have been trading barbs in the debate. Both contenders from us to fight. Raft we are joined live from jakarta. Good morning. It seems like there is a cigarette paper between them. But you are right. Had a final debate on saturday. The are seeking to replace president who cannot stand for a third term. They was on food, energy, and environment. It increases production of energy and food. These to make the country more selfsufficient. His contender pledged to increase orders and boosted output. They predict that they will output one billion barrels a day in 2015. In closing statements, they pledged to. Lead in earlyong polls. Surginge led to the votes. Around 30 , it has come down to a single digit. Foundation foral putllectual cert systems them for systems put them up. 11,300lyst predicts 11,500 if she wins the july election. A win would send the rupee sliding to a fiveyear low. That is according to morgan stanley. The security measures have intensified. They have tried before. The disturbance is believed to be intensifying ahead of the election. On thursday, they suggest the likely direction of who will win the election and the results are at the end of this month. Thank you. Result. Et a ourill be there live and correspondent is there. Is 11 30, Hong Kong Singapore time. Headlines around the world and taking a look at headlines in the middle east, six jewisharrested suspects over the death of a palestinian. Was inducted in his home last week and is remains were found shortly after. The autopsy indicated that he was still alive when he was set on fire. There was a killing of three jewish teenagers. Togaza, Officials Say that have died and another was injured in an israeli airstrike. That they wereid involved in firing rockets. Gazackets were fired from over the course of the day. The troops have claimed a tactical victory against prorussian insurgents. The city andd raced the ukrainian flag over the building. It had been under rebel control since april. They vowed to regroup elsewhere and fight on. Protesters are in support of moscow and demonstrating. They are waving flags from russia and the independent people plus republic. Many have come to the aid. No, no prominence comment from the kremlin. It is day two of a threeday visit to china. She will meet with the president in the evening. The german leaders are accompanied by a Large Business delegation. And es between Germany China and germany. 170 billion a year. Well, merkel touched down in china and on the first day of the visit, there was a tour of the factory that employs more than 7000 people. Say that they are trying to drive sales in the country. For more and why they are we know it isa, the world las vegas. Worldhat matters possibly just. Biggest. S that is what matters. Germane is a strong presence there. They have different market share, lets say. Bmw has 392,000. Mercedes has 250,000. You have very different approaches going in and different market you are targeting. Quite a lot of growth. They are looking to help with another 600,000 cars a year. That is extraordinary. Landscape,etitive why this question mark why this . There is a lot of value that goes with this. They have been wellpositioned ca quality and value, also, che. There is a good deal of local manufacturers and they are positioned well. This is for the government. You work for the energy letter. And this is one of our pets. Is there a green read through . It is fun. We have electric vehicles and it looks like an oldfashioned standards war. Bmw charging downwards. And bmw proprietary works with the chinese auto company. When they say that theyre going to put 10,000 around beijing, you need those. You are looking at a case where you have to do a lot of careful positioning. This to be a real problem, looking ahead. Youre talking about mobile phones and industry standards a couple of years ago that has never borne fruit. That may be the mobile phone industry. You have to add another wrinkle. Real estate. It is like a betamax competition. They refuse to. That is right. We have all these things playing in here that remain to be seen. If youre lucky enough, you are fine. If you are driving 150 miles a day, you are also fine. We are talking about partnering versus competing and it is quite a lot to go on here. Thank you very much. Ok. To getrs find it easier a luxury ride around town. A taxiservice service. Enough, owned by alibaba. Yes. They have a big investment. It is basically trying to generate more revenue and try to revenue modelable going forward. S and areuxury car positioned against huber. Uber. They are trying to spread out into a lot of cities and they are only in four cities, right now. That this company will need to a little bit more. Is going to be called Something Like, number one special car. Thats an attempt. Feelingves off a special like uber. It works on a similar basis. We do have it. How have they positioned themselves . I have not gone and done a test run. Cars. Y have luxury the ceo admitted as much when he spoke to bloomberg. R. Is based on ube unashamed. That is also called intellectual theft. Or, a business model. Themselves in the luxury and. End they have little didimen. Yes. There are many competitors there. They are pushing themselves to the far end of the market and getting more customers. The Chinese Market has been a huge and fierce competition i and them. The regulator said they will look more closely at this industry and is considering making them share information. Possibly wrapping them all under the government. That would be a huge blow. Thank you. Lets get back to cars. Mercedes is bringing back one of their top of the line vehicles. It is another. It is called the pullman. It costs 1 million. Bloomberg has taken a look. Rollsroyce and bentley. What does the other luxury car have to offer . They are left with only mercedes. Pullman brings back the version of the sclass. It is twice the price of the most expensive rollsroyce. And that royalty. It is known as a limousine. Of seats ands a privacy screen. Of a great white shark and the biggest production Passenger Car in the world. It is meant to invoke the same as the mercedes limousine used to show for by theok to overtake bmw end of the decade. Meeting this goal requires mercedes to produce cheaper. Ars, like the 29,000 one they have to be careful to keep the luxury luster by doing so with a line of halo cars. Maybe they need to balance out the bottom and with unattainable luxury cars. That we aremors going to see the nameplate on a couple of mercedes in november. We go to beijing because of this at the moment. He was there. Is day two. T, it this is what we have at the moment. Ok. We will give you have funds for that when we get them. Did you have funds for that woman get them. Dlines when wea get them. That is the call from a hedge fund. Given 10pparel was million. They believe that dov charney will return to the company and it would stabilize it. He left the company and they would be in default. Ousted after allegations of sexual misconduct. A joint venture with china. A german newspaper claims that a deal will be made. The airline will share costs and revenues. They have struggled to keep up with the intensifying rivalry. Producer, apache, is selling their stake in a project. People close to the matter say that the company is in early talks with buyers on the deal. They announced that they would be selling assets to cut. Those of the corporate headlines. A look at business. Factoring it into the forecast. The. We are back in a couple of minutes. Right. Our next guest is sciencerelated to clients Climate Change. The Intergovernmental Panel joins us now. Thank you. Lets start off with the reality on the ground of Climate Change. I notice that it is not called local warming anymore. No. The world is warming. The decades have been warmer than any decades before. The world is warming and sea level is increasing. Glaciers are increasing. The Climate Change is unequivocal. That is clear. What is behind it . You know, what is behind it, specifically . Of course, there is a buildup of co2. Our government not doing enough . Governments not doing enough . It is a collective thing. The climate is changing because of the release of co2 and Greenhouse Gases that he the the climate. At everybody contributes to that. If we want to tackle Climate Change, it is collective action that is needed at an international level. Are we at a crisis point . Well, for some, the crisis is close because, if you think about sea level change, for example, countries that have a low altitude are threatened already by Climate Change. The culture is starting to be affected in some regions. There are droughts and extreme rains. Agriculture. It is becoming a crisis for many communities and, if we do not tackle Climate Change more, the risk is that it will become a crisis for everyone. Well, in certain dialects of chinese, there is no word for crisis. Only, opportunity. Is there an opportunity here . Absolutely. It is a crisis and an opportunity. That there areow many elements of solutions in the technical and economic area that would offer opportunities to adapt to Climate Change. We will not be able to avoid. And, to prevent the part that we prevent byvent by being more efficient. Who wants to pay High Energy Bills . Nobody. We can use energy more efficiently and lowcarbon technology. They could be the source of many benefits and synergies. Do not have is, we a global agreement on Climate Change. How can we get one, in your view . They have shown that to have an International Agreement accepted by everybody by consensus, the fact that it needs to be perceived as fair by everybody is very important. So, by seeking fairness in the International Agreements on Climate Change, there is probably a way forward. , thank you for joining us. Ruling the world. The pope and obama. The top leaders on twitter. A third. Who is it . The Prime Minister has become the third most all load followed on twitter. Over 5 million followers. Has 43 million and the pope has 14 million. Has one of the most retweeted tweets. Facebook as been one of the center of the Online Privacy debates. They are not the only offender. Here are five Big Companies yourg to get too cozy with personal details. Transformers is a big hit in china. They dominated the box office for a second week. That is it for this edition of on the move. Asia edge is next. Mark mcfarland. The chancellor pushes for more trade. A heated debate in indonesian elections. Nextl maneuvers, chinas step to boost growth. Growth it is. Running out of steam. Forimf may cut forecasts Global Growth even as the u. S. Rebounds. All hail the rise of the taxi app. Battling robots in a box office milestone. Why chinese cinema goers cant get enough of transformers. The deals have been done behind closed doors. Ofela merkel and a host german corporate heavyweights are in beijing drumming up more business with china. Stephen engle is following the chancellors visit. What have we got so far . The chancellor is having a press conference with the premier. It started at 10 30. Brace for this nothing earth shattering coming out of the headlines. China and germany agreed to boost mutual clinical trust. Stop the presses