Voting to quit the European Union. Beenigning for brexit has suspended after the killing of an mp committed to staying in the eu. A man has been arrested. Follow me on twitter at rishaadtv, using trendingbusiness as well. And 30ding day underway minutes in hong kong and shanghai. At theaving a look glass is halffull today, isnt it . Bulls i session for the to put their hats on. A solid tone compared to yesterday. Are looking at gains at the moment, 7 10 of 1 . Not quite erasing the losses yesterday in japan. We have managed to offset the week. Poised for a weekly decline. Story has been ons pop right here dollaryen. Comments,o do with basically expressing concern that these recent moves and dollaryen have been onesided, abrupt, and speculative, playing off the risk of brexit. Chatterrked a series about a possible intervention. On that note, the central bank and finance ministry are meeting at the moment right now in tokyo to Exchange Information on global markets. One currency trader stating what is going on here. You are looking at a few leveraged, smaller hedge funds paling back long yen cross positions. Pulling back long yen cross positions. The Brexit Campaign is suspended at the moment. 104. 74, that seems to be driving the equity markets this morning. Thank you indeed. Right, campaigning has been suspended after an mp was shot dead in her West Yorkshire constituency. A 52yearold man has been arrested. Any suggestion of this being linked to the socalled Brexit Campaign . Week, we willext be close to getting the outcome of the referendum, but there is no suggestion that the killing was linked to the Brexit Campaign. West Yorkshire Police made it very clear at the press conference after the incident happened, announcing that they were not in a position to comment on motives. We have reports and an eyewitness cited that the attackers shouted, britain first. Britain first is a Political Group in the u. K. That are antiimmigration and antieu, backing the Brexit Campaign. Are not they involved and would never encourage behavior of this sort. Both campaigns very quickly suspended activity on thursday in london. Today, there will be no campaigning from either side. We also saw that investors and waiting, expecting speeches. Instead, they gave short condolences and respectful memories. In the currency markets, the pound had been down 1. 3 against the dollar. It erased of those dollars on the back of that news. Hade minister David Cameron been due to go to gibraltar on the south coast of spain, but canceled his proremain rally and gave a short statement to the cameras. What happens next . This campaign has been suspended. What happens next for it . It is hard to say. , leave was ahead, and recently, quite a few of the polls have been putting leave ahead. Now that the campaigns are suspended, it is hard to tell. The imf were due to put a report out on the consequences of brexit. Byy delayed releasing that 24 hours. Bmg were to release another poll this evening, but have delayed again by 24 hours. Have to wait for it. David cameron will go on television sunday. Corbynor leader jeremy will go on television monday night. As it stands, those events going ahead, but we wont know more until a campaigns resume. Rishaad thanks a lot. Lets look at what is going on in japan. The sovereign debt rally could push yields on bonds to lowes. S. At what isa look going on with this, yields all but vanished. Year jgb yields going negative soon. How low can we go . The answer could be a whole lot lower. Weve just been talking about brexit. Is also uncertainty over the u. S. Recovery, a host of concerns in japan. We spoke about the 40 year, but everything from the fiveyear to the 40 year are tumbling to new lows. Week, the 10 year hitting a record low. Bse 20 year and the 30 year jg all heading south. This started with negative rates implemented at the beginning of the year. In 2014, we had the expansion of stimulus. Maturity, this is quite extraordinary, we might get a negative yield on the sooner rather than later. On thursday, down a must. 5 since the middle of april. At this pace, we are looking at subzero in two months. The idea that investors might be turned off by negative yi elds in japan were shattered. Yields dont matter anymore. It is a negative yield world. It is difficult to put a limit on how low we can go. We know that boj was on hold this week, warning inflation would stay at zero or fall back into deflation for the time being. If you look at what this is doing to stocks, where looking at a decoupling relationship. The topix is doing, completely diverting. Not far that behind shanghai. Puttinge stronger yen pressure on these outoffavor japanese equities. It will be interesting to see what comes out of this meeting. A lot of rumors about intervention in the market, but we are waiting and seeing. Rishaad its not just japan. We have this global bond rally. What are we seeing elsewhere . Risk aversion putting the squeeze on Government Debt worldwide. , we are seeingar this trend globally. Negative territory for the first time this week to it u. S. 10 years heading south. Global Government Debt has gained five and a half percent this year. The most going all the way back to 1995. I just want to point out that this is a remarkable environment. It is having very interesting ramifications for banks. Japanese lenders have come under in normas profit pressure. We are starting to see treacherous waters. Week, we had seven japanese lenders, including three megabanks, essentially taking on the risk of being the last to be paid. Is beingbeing that it underwritten by the Development Bank of japan. Certainly it is one indication that we are in uncharted if not treacherous waters. Rishaad thank you for that. Lets have a look at some other stories. A surprise in jakarta. Yes, indonesias Central Banks stepping up its Stimulus Program, slashing rates for the fourth time this year. Cut the keyation rate by 25 basis points, lowering it to 6. 5 . It eased macro limits to spur lending. Policy makers been under pressure to reduce rates amid slowing growth and inflation. Watching hsbc shares on the open in hong kong. This after the lender settled on a 14 year old classaction it inherited after a 2003 acquisition. Pretax chargerd a of 585 million to settle the 2000 two lawsuit about allegations that investors were misled. Involves the 2003 acquisition of Household International for more than 15 billion. The previouse sued year, alleging the company and three executives made misleading comments about mortgage lending practices. Hsbcs finance unit has agreed to a 1. 5 billion deal to resolve the litigation with the settlement subject to court approval. Kongshares lifted in hong after slumping significantly over the last 12 months. Shares in sydney are adding to thursdays 13 gain. This is despite being put on a downgrade review by moodys. It follows crowns announcement of a planned spinoff of its international business, restructuring plans, and changes to its dividend policy. Moodys reckons it will result in materially reducing its asset base. Crown wants to spin off its International Businesses from its australian casinos, believing that investors have undervalued the core business due to a downturn in gaming in macau. Rishaad right, with the web tv, whyovertake mobile is king when it comes to marketing. Chances of a reversal when it comes to the Asian Pacific fortunes, that is ahead. Rishaad you are back with trending business. Asian stocks paring back the biggest drop we have seen since may. Perhaps britain will vote to stay in the European Union. After this tragic killing, sentiment has changed. We dont really know. We dont know. Is still aampaign good campaign. I think the consequence of leaving the European Union is severe. Will votes that they marginally to stay. That is my guess. Hasnt roiled the markets. Two weeks ago, traders were very sanguine about this really. Suddenly we have had these polls turn. That sense of calm is gone. Exactly. Costs are rising dramatically. Rishaad how closely are you watching it . I lived in the u. K. For 12 after i came back, i still watch it closely. If the british decide to leave the eu, i think it will be a big tsunami. Synonymy rishaad weve had so much event risk already. First of all, the msci, then the fed. Yesterday, the bank of japan. None of that news has been good so far, has it . No, unfortunately. , the s p went to a new high. It seem like the market was complacent. Rishaad it seems so long ago. This bad news is pulling the market back. Ashaad it is now looking though, if you look at what is ot lines,with the d its almost likely the fed will cut rather than hike. What difference would it make if they cut by 25 basis points anyway . Good point. Originally, i was thinking about maybe twice. Now, probably only once. The fed, i dont think they can afford to go ahead. Rishaad it depends on inflation, doesnt it . The Global Economy is not in good shape, europe, japan, and china, just raise it. This going to kill the u. S. Economy. The labor market has a softness. Rishaad it was an outlier perhaps. We also looked at some of the jobless claims and they are showing a different picture. Im sure this is a kind of an outlier and probably we will see a revision up in the nonfarm payroll number, but in the previous couple of months, the payroll number also revised down. That also worries the fed a bit. Youaad how much are concerned about what is going on in japan at the moment . The bank of japan keeping its Stimulus Program steady and will carry on until they get a 2 inflation target. I think they should revise the target. Rishaad why have one . They dont want to change. I think they should revise. The headline inflation is close to zero. Rishaad with all this going on, you want to run for the hills. Exactly. This is not going to happen. I dont know what is in their minds. Spike towe saw the yen 104. 10, and that was unbelievable. Think the market lost confidence in the boj. Rishaad that is the anomaly here. , theu lose confidence currency should depreciate. In japan, it is the other way around. Havens for the safe instead of shifting money overseas. I think this is the consequences for us. At the beginning of the year, everyone was convince japan would outperform. Rishaad thank you very much indeed. Thank you. Now to the stories making headlines around the world. A person of ducted has spoken about his experience. He spent months being interrogated about the clients of his publishing companies. He went missing eight months ago. He returned to hong kong on tuesday. The cockpit voice recorder from the crashed egyptair plane has been recorded recovered. It was retrieved from the sea four weeks after the plane went down when 66 people on board. It is not known what caused the flight to crash. Emergency messages talked of smoke in the cabin. The pilot didnt issue a distress call. Withtnamese search plane nine people on board has gone missing while trying to locate the pilot of a fighter jet who had crashed earlier. The patrol plane lost contact off the northern coast about 80 kilometers from fort. Search vessels have been sent to the area, but the operation is hampered by high wind and received. The russianmade airplane crashed on tuesday on a training flight. Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. Coming up, oracle looking to the future, 10 billion in revenue. We will discuss that and where they go next. Rishaad you are back with trending business. Beat estimates, 10. 6 billion, sales to kleins lately. About wherewe spoke the Company Stands now. For years, this is a company under a lot of pressure for saying you are slow to the cloud. These other companies are moving to the cloud. Why is an oracle making this move . They were saying that they have been working on it. See sometarting to real momentum and optimism that oracle is getting there. Oracle on some level was having itself on the back of little bit saying, we have gone through a tough spot as we make this transition and things are starting to look better. Oracle has a little bit to boast about today. They are very aggressive on their forecast. What is going on with the cloud growth there . They did bring this up. There is some truth in it. When companies are getting slow. , the growth rate is forecasting growth that shows sales growing more quickly with the cloud, going above 75 , versus under 70 in the previous quarter. Momentum, broad portfolio, investing in data centers that are topnotch. So the cloud is the story today. Real quickly, why is this a big deal for oracle . Look, it is cloud, cloud, cloud. That is all you hear about in the valley on the enterprise side. Oracle is showing they can speak that thing which an investor like it. Right, a break here, but looking at countering corruption in china. What Bloomberg Intelligence found about the effect of the crackdown on the economy. The market up just over 1 , shanghai underway. The numbers are next. . C sv rishaad a look at our top stories. Rallying with crude oil in the pound. Bookmakers increasing the odds of written leaving the European Union. Anxiety over brexit helping to raise 2 trillion over Global Equity value. Oil snapping its longest selloff. Central Bank Officials meeting in tokyo after the finance ministers said he was concerned about one sided abrupt and speculative exchange movement. The yen retreating from highs. Thursday against all peers after the bank of japan held off on further stimulus. The Brexit Campaign has been suspended after the killing of a member of parliament. And stabbed after meeting voters in her yorkshire constituency. She was a committed member of the remain camp. Witnesses said that a man shouted britain first at the time of the attack. A 52yearold man has been arrested. Shanghai flat. Week indications were would get a 1 were that we would get a 1 pop. Let me show you what the aussie 10 year yields are looking like. We have been talking about there is so much demand. Bet that other a people will continue to buy this. The yields are on the way out. This could lead down to australia sewing about 1 billion in debt to 2027. Average yield, 2. 1691 . Were looking at a coverage ratio of two times. Perhaps that is down to this being a slightly longer time than a 10 year. The 10 year yield going higher. At dollaryen. Ok this is the other big story. R thee still waiting for results of that meeting in japan. So we have given back some earlier weakness in the japanese yen, but we are still trading at much weaker levels. We heard some comments coming out of the finance minister, expressing serious concern over these abrupt moves in the exchange rate. They are meeting in tokyo, the finance ministry, the boj, and Exchange Information on global markets. Promise, theys open in hong kong, china, and manila. Pretty much an update story across markets. This friday definitely a more positive tone coming through. Rishaad thanks a lot for that. Indonesia cutting rates for the fourth time this year to lift a sagging economy. Most people do not see this coming, did they . Well, it is a bit of a surprise. What the president told bloomberg this year. He wants rates to go down, down, down. To support growth, and growth is a concern. The Central Bank Cut its estimates for 2016 to between 5 and 5. 4 . With low inflation, it is a Good Opportunity to cut rates. To show a this chart, inflation at the slowest in more than 60 years with 40 of the population still living below the poverty line. Cpi is an important factor to consider. Well, looming as brexit referendum, uncertainty of u. S. Rates, chinas sluggish global growth. It looks Like Bank Indonesia is bracing itself for a fallout should investors flee the market. We see that happened time and time again. Was put in just in case. Bank indonesia looking , what areoan growth the economist telling you about this. Are these measures likely to work . Difficult to say. Consumption is low. Loans are down. Bank of a new leisure had to do something. Deposithe minimum requirement to buy homes. Not domestic loan growth picks up remains to be seen. , the president is struggling to keep his promise of 7 gdp. He has taken steps to cut red tape, attract foreign money, cut spending, but still no 7 growth. The drop in commodities is not helping either. Rishaad thank you very much indeed. The golden age of hong kongs retailers is over. Letssmetics and julie a jewelry outlets are doing to give us a clearer idea. They have been hurting for a while. Nearly two years of falling sales. The last time we saw a positive number was november 2014, so almost 1. 5 years now. Is a factor inen this, making hong kong not so attractive. Hong kong dollar has been pegged to the u. S. Dollar. It become less attractive for shoppers and visitors coming here as well. Rishaad a triple whammy. Tightening on corruption in china, a slowing economy, all these factors play into it. On the mainland are predicted to fall this year according to the hong kong tourism board. It looks like this pain will not stop anytime soon. Hong kong has contracted by 0. 4 . Today onwe had a story a cosmetics brand. It is suffering badly. It is hong kongs biggest cosmetic retailer. It is an interesting gauge of exposure to mainland shoppers. 71 of its sales are from visitors coming from the mainland. Sales fell 17. 6 in the first few months of the year, year on year, and that includes chinese new year, a pink time for shoppers to come spend money and hong kong. Analysts have a sell rating. ,f you look at other retailers a gold retailer is down as well. Rishaad thank you very much indeed. Lets have a look at some other stories. Tax evasion of bank sometime sources telling us that investigators plan to recommend charges of Money Laundering once they identify the suspects. 93yearold Sumner Redstone reasserting his control of viacom, removing five board members, including the chief executive. National amusements Holding Company says new directors have been elected in accordance with the bylaws. The shakeup makes the way for the the elimination of the chief executive. Volkswagen announcing a new strategy, shifting to electric cars, automated driving, and right hailing. Investments of 11 billion by 2025. Hasfuel cheating scandal cost the company 18 billion so far. Chinas Anticorruption Campaign has widely been seen as one of the factors behind its economic slowdown, but we have been delving deeper looking at this. Bloomberg intelligent saying that is basically not the case. Youre not seeing that, what are you seeing . I think you put it pretty well. The conventional narrative is that the antigraft campaign has been one of the most significant factors dragging down chinas growth since 2012. The popular wisdom is that chinas officials have been scared, thrown into disarray by the Anticorruption Campaign, and they have not been able to pursue big Construction Projects , not willing to spend money, display their wealth, and all of that has been a big drag on demand, so there are a lot of anecdotes that support that narrative, but until now, not much data. Map province by province Corruption Cases against province by province growth, and what that analysis is telling us is that the conventional wisdom is wrong. There is no connection at a theincial 11 between intensity of the Anticorruption Campaign and what happened to the growth rate. Rishaad how about when corruption was taking place . The converse of the belief that the Anticorruption Campaign was bad for growth is the belief that corruption when it was taking place was good for growth , that we have these wheeler dealer officials, wheeler dealer bureaucrats, were lining their pockets, but they were getting stuff done in the process, getting things built, spending money, and i was driving chinas growth. We did the analysis on that as well and look at the relationship between corruption before the Anticorruption Campaign kicked off. Thiswe found was in respect as well that the conventional wisdom is wrong. Provinces with more corruption did not grow faster than the average. In many cases, they grew slower. What this adjusts is that chinas experience of corruption is it unique. It is pretty similar to the Global Experience of corruption. The Global Experience is that corruption isnt the greece in the wheels of growth. It is a spanner in the works. Rishaad lets talk about the origins of corruption. You have been looking at the data. What does it tell you . Chinas chief corruption havetigator and his team been extremely active in cracking down on graft wherever they find it. Have had some very senior officials, former members of the standing committee, and tens of thousands of junior officials caught in their anticorruption dragnet. But what our research is saying that that its own might not be enough to deliver a sustainable solution to the problem of corruption. That is because the origins of are in oversized state sectors, oversized public employment, and overreliance on debt to drive growth at the local level, so a sustainable solution to the problem of corruption also requires chinas government to get to grips with the much more challenging structural reform issues. Rishaad thank you. Right, coming up, advertising revenue will overtake broadcast tv, and it will happen later this year. We talk about this fastmoving shift. It is 9 44 a. M. In hong kong. These other stories making headlines around the world. To banks and talks to create the biggest lender in the middle east. Sources say discussions between National Bank and First Gulf Bank are in parliamentary stages. Lenders facing falling profits because of lower Government Spending and slowing economic growth. The deal would give the combined company 170 billion in assets. The most venerable names and cosmetics are teaming up. Elizabeth arden for 900 million, 14 a share, 50 premium. Bank of america and citigroup have committed about 2. 5 billion to help pay for the acquisition and refinance elizabeth ardens debt. Singapore airlines is to assume nonstop flights to the u. S. Three years after putting them on hold. Francisco, to san ending united rains as the only carrier to connect the two nations. Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. Rishaad we are looking at internet advertising set to overtake tv ad revenue for the first time. The report also says the full potential of the digital sector will still remain unrealized. What is the major finding . The most striking finding is that by 2017 we will see internet advertising will override television advertising. Rishaad so linear tv versus internet, but you cant just say internet because there are so many ways you look at digital. There are different delivery channels. Which ones are the most effective and which ones are the least . Advertising,ernet one is mobile, the other is wire internet. We tried to analyze the trends. Increasingrtising is. Mobile will be the king. The wired internet is still the Major Driving force because of the User Experience and the limited screen size for mobile , and therefore the User Experience is key. People are using blocking technology to block those advertisements. This is an area they need to overcome. Rishaad that is the point, isnt it . How long does this go on . People are increasingly irritated. People try to deploy new technology to block those ads. If the advertisers can think of a way to attract the attention of the people. Media,mple, on social then those people may use it by using videos to attract attention, it is a different form of delivery. Lets talk a little bit about mobile. In this part of the world, where we are World Leaders in this part of the world when it comes to mobile advertising. Europe and the United States have been way later into the game. Trendanalyzed a fiveyear and the total china market, still less than 50 of the expenditure in the u. S. Grow. L however, the u. S. Is also fast growing. Road, wes down the still find the total ad spending in internet advertising is still 50 . Rishaad which are the countries in asia that are growing fastest when it comes to Digital Advertising and digital ad spend . That depends on the internet penetration. Also on mobile adoption. Apart from china, india and indonesia. We see strong growth in our report. Rishaad the thing is, how do where do you get the most bank for your buck . How do you measure the efficacy and the results of advertising . Traditional tv advertising already has an established matrix. The statistics and the effectiveness. Advertising, there are different media and devices, metricse the measure of are in the testing stage. Struggling onll the most effective way to deploy a widely accepted matrix. One shouldsuppose not say one is better than the other. They should all be part of a campaign. Work together and complement one another, digital and linear tv . I agree with this. Softhe economy is a bit and purchasers need to tighten their purse strings. Therefore, they need to measure the effectiveness. Effectiveness will tell you whether you can provide a better experience. Rishaad effectiveness with things like Programmatic Advertising to work out what you like and make it relevant to who you are. The traditional tv advertising, it is more for the mass population. Mobile advertising is more targeted to the individual. The core for that technology is on the higher end. Thats why a lot of companies have emerged calling for the transformation. Rishaad thank you so much. Looking at Digital Advertising, internet advertising, overtaking tv in terms of revenue at some point this year. Going, gone, japan could push bond yields below zero. Traders dont seem to mind. We are having a closer look. Japanese banks venturing into potentially dangerous waters as they look for ways to make money as Interest Rates go negative. There may be a lesson or two to learn from the restructuring of bank debt in the socalled brady plan in the 1970s. Christopher lang joins us from singapore. How far are banks going in search of yield now . Well, they started lending money on a subordinated basis. A company goes into bankruptcy, they will be the almost last in line when it comes to getting paid back. Banks usually do the opposite. On a securedlend basis, so they are the first in line when there is a bankruptcy because banking should be conservative when you lead money lend money. They also usually do it on shortterm, five years, three years, not 60 years on a subordinated basis. They are sort of going crazy there in japan. Rishaad we do have some breaking news out of japan. A couple of lines from the chief currency board. Juliette that is right. Chief currency strategist baking to reporters in tokyo. They have discussed the fx question with the boj. They are still very concerned about this fx volatility. Basically saying that the bank of japan, the ministry of finance, and the fsa discussed Holding Meetings frequently. They had a good discussion with the boj and are still discussing and watching developments with situation. Also saying that volatility is rising and Financial Markets and more strengthsee coming through in dollaryou next week ahead of the brexit vote. Rishaad we have these bond yields hitting these record lows. , all ofhave brexit these causing concern. More on these in the next hour on trending business. From our studios in new york city, this is charlie rose. Charlie we continue this evening with our coverage of the shooting in orlando. The tragedy has highlighted the distinctive challenges posed by lone wolf attacks. It also raises questions about fbi procedures going forward. The bureau had opened and closed two terrorist investigations into the shooter, omar mateen. His wife is now the subject of a federal investigation. Authorities are looking into the investigation and knowledge of his attack. Joining me is tim murray, former Deputy Director of the fbi. I am pleased to have him. Let me begin with the question, whs