Thate seeing signs drillers are fearing a slump in crude prices. Hot property, china june home price data will give us the latest look at how the wider economy is doing. We will break those numbers down for you and 30 minutes. Follow me on twitter. Dont to forget trendingbusiness. Get underway. Ets singapore and malaysia have just come online. , that is theg short of it. It is a very unexciting day so far. We are looking for the next catalyst. Frosty,ns looking multiyear highs for some. Asia mixed. Basically flat on the msci. Blames are quite thin, especially in australia and center 30 thinner. We are looking at the drop in the kiwi dollar. We were looking at gains postturkey into early this morning, then inflation data came out. 5 , but therer is the drop their, a 1. 3 drop. Once the data came out, the a 62 chen chance chance that the central bank could cut rates. As far as the markets are concerned, this is one of the least exciting at the moment. Angie not even a coup will shake things up. The situation in turkey after the failed coup. The government of president juliette president recep arrested 6003 has at what is the latest right now . A gift from god, thats what president erdogan is saying after the coup attempt. Nightgain for a third thousands of people rallied , takingresident erdogan to the streets of istanbul and flying their flags. Once again, president erdogan pressed the United States to extradite the cleric who he says is behind this failed coup attempt. Before 2014, president erdogan and he were close allies, that ever since, he has been accusing him of trying to topple the government. The man says he has no connection, and the uss it will look at the evidence presented the u. S. Says it will look at the evidence presented by turkey. Are now getting a chance to see investor reaction, the lira recouping some of fridays slump, so eight muted response. Thats right. The lira is strengthening against the dollar after nosediving to an eight year low on friday when we heard of the army intervention. Will be opening a few hours from now, and we could see a reversal in warned funds. Solid week, climbing 6 as investors bet that further stimulus from Major Economies will boost demand for riskier assets like turkey. It is worth noting that so far 15 ,year istanbul is up and the yield on turkeys five year government bonds has dropped the most in emerging markets after brazil, but after the events this weekend, we could see a drop in turkish assets. Investors areed, very nervous as 6000 people have armyarrested, mostly officials and judges, so this could make investors extremely uneasy. Angie absolutely. Turkey has been the darling of emerging market investors, 7. 3 billion in inflows this year. It is worrisome because what is next . N going to do what kind of changes could we see to turkeys Political Landscape . The biggest change we could see is a change in the constitution, which president erdogan has been pushing for since 2014 when he became president. Just asident is ceremonial role, where it is mainly the parliament that has the power, but he was to change beenhat and he has yet able to get enough votes in parliament, but now after the failed coup attempt, he could call for snap elections and hope the ruling party will get the majority in parliament or he could call for a referendum as he has the support of the people. Thank you so much, live in istanbul with the latest. Lets get back to david taking a look at how oil is faring following the unrest in turkey, because a lot of this russianiraq oil goes through turkey, doesnt it . David it does. Youre not just looking at the ports. One official saying that operations are proceeding as normal. When you look at the Energy Assets in turkey and heres Something Like this, there is a reason to be concerned. We are looking not just at the government, but some of these bigger oil players. Bp saying that flows there are unhindered. Question, this is a threeday chart, so this is thursday, this is friday, and this is monday. But wes your spy, but wely your spike are basically back at levels before the coup. We were talking about the currency. Let me bring up a chart here on a pair here. That is the biggest bike in years. We recovered half of that at the moment, dollarlira on the way down. It shows you a weakening in the currency. We are pushing towards the upper limits at the moment. From a longterm standpoint, may be getting too much exposure into turkey. Angie thanks. , thebreaking news Singapore Exchange seeking a trading halt. To hive off regulatory functions to a separate unit, so theyre asking for a trade halt. We will give you an update as we get it. Meantime, other stories we are watching. Back to oil with a roundup. Rosalind exxon mobil has put in an offer for interoil. Are divided at 40. 25 each. The proposal would have made the deal worth 2. 2 billion. This new one from exxon will top that. It is a company that focuses only on top in new guinea Papua New Guinea. President obama warned against inflammatory rhetoric after three Police Officers were killed and three others wounded in baton rouge, louisiana. We as a nation have to be loud and clear that nothing justifies violence against law enforcement. Attacks on police are an attack on all of us. A suspect has been killed, but did not give further details. Seen rising been tensions sparked by the Police Shooting death of two black men and subsequent fatal attacks on Police Officers in dallas and baton rouge. In shinzo abeman s government says a students plan will not be funded by issuing deficit bonds. He did however hand at construction bonds. Cost 95is expected to billion. Shinzo abe has set these to me is package will be bold and include funds for regional infrastructure. Have said these measures will be bold and include funds for regional infrastructure. Angie thanks. Still ahead trending business on, the risk of default, why companies are struggling to meet the terms of their debt. Cut, next guest says Central Banks in asia have room to lower Interest Rates. We will have more. This is bloomberg. Angie a quick check of the latest business flash headlines. At job cuts after sale of internet assets. Analysts say owners could cut 3000 jobs due to redundant operations in Human Resources or marketing. Mondayreports later on with revenue expected to drop 20 . The aussie dollar could be the best way to stoke the economy. Rate cuts will have little effect on australias inch mark , heading towards 1 . That view is shared by the rba governor. Investors have turned more positive about the outlook for the world economy. Hedge funds and other speculators cut their bets on a gold rally for the first time in six weeks from a record high position last week. Concerns over the brexit vote has eased while the u. S. Economy has stayed strong. Coupys failed military has shaken Foreign Investors grappling with the brexit fallout. The lira bouncing back somewhat. Joining us is you bps chief economist for asia and the middle east. Bs chief economist for asia and the middle east. The policy stimulus everyone is expecting is the reason why you see markets trading through recent highs. Whats happening in turkey is quite disturbing. There has been increasing ,olitical risks recently chinas maritime city limits, other decisions around the world upwell, so there is a creep in political risk, but that expected stimulus driving markets higher. Foreign investors look to turkey as part of the emerging markets story. Youre getting a percent yield and a world of negative rates, but 8 yield in a world of negative rates, but this could shake investors, could in it . Get . Uldnt turkey sells a lot of materials into germany. It is an integrated part of the european economy without eating part of the european union. Its currency is very honorable to international sentiment, which is why you solid selling off heavily over the weekend. Angie if you are looking for yield, emerging markets in asia are offering it, arent they . If you are willing to take , dollarency risk Interest Rates are quite attractive on a relative basis. The other thing to think about is brexit. You are likely to get Slower Growth in europe and the u. K. , which means asia has become quite attractive. It is attractive to Central Banks because it gives them room to cut without feeling the pain. Youll probably get a rate cut from the central bank of indonesia this week. We have seen it from malaysia and will probably see it from korea. You are getting this long process and Interest Rate cuts in asia, which is quite good for markets. Angie what you think that will be in terms of trying to offset the china slowdown or the stabilization. Stabilization is probably a better word. The issue is not china. It is japan. What the central bank there decides to do with policy, it has been very muddled. The upper house elections have have provided the opportunity to do some fiscal spending. They need to have some clarity from the japanese that provides leadership for the asiapacific region. The next boj meeting is an important event. Angie what do think governor kuroda will do . Im not sure exactly. There is a lot of reasons for not doing anything. There has been a substantial decline in global inflation probably a reason to add to stimulus measures, but at the same time, they have not worked so far. Macroeconomic reform that japan needs. We need to see something on labor market reform, transparency, health care, measures that are much more important. Investors are betting that japan will come through with fiscal stimulus, which is what is affecting equity markets right now. Have been ats beneficiary of bank action, right . That cheape seen is money has been fueling speculation, and not necessarily investment. At what point do Central Banks and governments take a look at to get ino, we have here with some fiscal policy or reforms . We are there already. You can see that in europe. One of the reasons why policy has become muddled is because they are running out of german bonds to buy. It has become quite difficult for the ecb to extend quantitative easing. You need to start to see more fiscal measures in a coordinated policy between fiscal and monetary. Angie do you think they will stamp out this week . I do. I think they will wait until september. Downturn, tackle it when it happens. Angie mark carney as well. Why stand up and say there is a recession when there is not one . Do you think they will be talking about the time banks . They need to be. Angie they have to. The rules for bailing out banks almost prohibit a Clean Solution to the italian banking problem. Angie private investors have to be wiped out first. That makes it difficult for Prime Minister renzi. His political future is almost died to not wiping out private investors because most of the shareholders are his electorate. The indirect consequences of that could be catastrophic for the eu. You have political problems as well as economic problems in italy, one of the largest economies in europe and holds a lot of political sway union, so european for minister renzi is in a difficult situation. Angie its like we are running out of ideas, but Everybody Knows what to do. They are just waiting to do it. Thank you for that. Breaking news headline coming across the bloomberg terminal, softbank nearing a deal to buy thisings in according to a New York Times report saying to unidentified people. The deal could be the first largescale transaction since the u. K. Voted to leave the eu. Negotiations are not final. The price softbank was willing to bank could not be immediately learned. Coming up next, we take a look at why australia and the u. K. Are eager to the other around table to talkg trade. We are live in sydney to talk all the details. This is bloomberg. Angie this is trending business. I am angie lau. Loading upd managers on shortterm paper in the hopes of avoiding corporate default. Almost 930 billion worth of certificates of deposit sold in the first half, tripling the amount from one year ago. The demand for the safety of cds is field a number of corporate on defaults, tripling so far this year from 2015. Shares in samsung heavy have company isr the reported to winning a 2. 5 billion dollars deal for an offshore lng facility. Stock jumped 4. 9 . Days other news, the kiwi dollar has dropped after weaker than expected inflation increases the odds of a rate cut. The from a year ago, below. 5 median forecast. Most economists see the Central Bank Governor responding to persistently weak price growth by cutting cash rates to 2 at the next review on august 11. Theresa may spoke with malcolm tonbull over the weekend discuss a bilateral free trade deal as britain prepares to eggs at the eu. Prepares to leave the eu. Some significant legal hurdles and the way of any potential deal, right . It is not legal at the trade for britain to sign deals while still part of the eu. That will not be the case for too much longer. Both Prime Ministers had a phone conversation, Malcolm Turnbull describing the conversation as constructive. Theresa may put out an email statement and reiterated a point that britain intends to make a success out of rags it, striking freetrade deals with partners across the globe. , strikingbrexit freetrade deals with partners across the globe. Angie it would be winding back the clock, wouldnt it . It had a profound impact on the economies of australia and new zealand, the biggest trade partner wandering off into the sunset. Applelia fell by 90 , exports collapse, soft commodities followed suit, and the economies of both countries went through a difficult time after that. In some respects, it is a case of written being welcomed back to the table. Next to gethappens things moving then . As we know, these deals take a long time to iron out, so Malcolm Turnbull says britain will not be out of the eu for several years, but it is time to start work now. Angie we are expecting the latest chinese Property Prices to be released in the next couple of minutes. We will give you the day to live as it crosses our terminals. This is bloomberg. Get ready for the rio Olympic Games by switching to xfinity x1. Show me gymnastics. X1 lets you search by sport, watch nbcs highlights and catch every live event on your tv with nbc sports live extra. Im getting ready. Are you . X1 will change the way you experience nbcuniversals coverage of the rio Olympic Games. Call or go online today to switch to x1. Angie top stories trending this hour, the turkish lira has regained half of its losses following the failed military coup which solve the currency tumbled by the most in eight years. The government says 6000 people arrested with more than 100 coup plotters and 190 civilians killed. Oil and gas are flowing unhindered. Search saying exxon mobil has made a superior offer for ,ts take over target, interoil 45 per share. Rival bid is the better than its own, which by the shares at 40. 25 each. Has three days to respond. Softbank nearing a deal to buy arm holdings. The New York Times says negotiations are not final, but it could be the first largescale transaction since brexit. The deal could be worth more than 32 billion. Fors get straight to david the china open. Lots of anticipation. Are waiting for those Property Prices. Let me give you an update. Shanghai underperforming. Theres very little to trade on at the moment. May be Property Prices will give us something positive. Have a look at taiwan, a third marketigher, the latest in asia to enter a bull market. We now have eight markets. Lets get the list up for our viewers. Philippines,tan, indonesia, vietnam, thailand, new zealand, and india. Next up could be hong kong. We are about 2 away from the 20 threshold. Have a look at the off shore renminbi following the fixing from the pboc. Not much reaction in the offshore space. Kiwi dollar is where we are seeing the action. We have consolidated at these levels following the latest inflation data. A big drop their, 1. 3 drop in the kiwi from session peak. A little bit weaker as far as that is concerned. Lets bring in some breaking news for you, china released Property Prices for june. Lets get over to steve engle. More cities did see year over year price increases in china, 57 out of 70 track. It was 50 in the previous month. Month over month price gains, that is starting to slow. Ofare seeing a number cities, including shin jan, the cities that have had fast price increases, starting to implement curbs. Month over month new residential rose in 55 out of the 70 cities tracked by the government. Inwas 60 and may, and 65 april. Priceeen prices gains starting to slow a bit in those larger cities, in shenzhen hin jan shenzhen shenzhen. 22. 3 . Up both of these cities have seen sizable games gains. Is the cheapning credit we saw in june often as we saw ingdp the second quarter, but what it does is goes into the Property Market, and that is what we have seen. Property sales in the first half were up 42. 1 . That is one half of the story. The other half is that that pace has slowed. First Quarter Sales were up 54. 1 , so there is some heat coming out as those curves take hold in places like shanghai and shenzhen. The other aspect is to the emphasis to whittle off excess territory. That is inventory. Cheap credit is starting to filter into the Property Market on a wider basis. Angie lets see how investors are reacting. Lets get it back to david. Property prices out, and what are the market saying . Outd it is hard to make all the data, so many numbers that have to be considered. A look at the shanghai composite, down as much as a third of 1 . I would not call it a stark reaction. You are looking at the developers, real estate down a 10th of 1 . 33 out of the 26. Going back, you want to look at construction related stocks. One point we touched on was the china is making its way through excess inventory. At least that is the hope. You had the financing their. When you talk about final demand, its about real estate related sectors, construction, cement, steel, so materials down a fifth of 1 . Construction down a third of 1 . Speaking, there is very little to trade. Angie thanks for that. Speaking of, lets get more on the situation in turkey after that failed military coup. We are live from istanbul. Look, people still out on the streets there, waving their flags. What is the latest on the sentiment there . Ispresident erdogan promising a new turkey. For a Third Straight night, out on the streets in support of president erdogan. He has been an encouraging this, telling them to come out and support democracy. More than 6000 people have been arrested since the failed coup attempt on friday. Most of those are Army Officials and judges who president erdogan said has links to the movement he blames for the coup attempt. Minister says there will be more arrests to come. There are reports that 300 people have been killed since fridays events. What kind of Market Reaction are we getting right now . Lira reversing its losses after plunging to an eight year low on friday when we heard of the army intervention. Market has notck open yet, but when it does open, we could see turkish assets are lower. Week, an extremely solid week, up 6 as investors bet that further stimulus in developed markets will boost riskier assets like turkey. ,owever, when the market opened we could see it being lower. Atwill also be looking stocks that could be impacted as well. It is worth noting that overall istanbul is up 15 , and the yield on turkeys fiveyear government bonds has dropped the most in emerging markets after brazil. Still searching for yield and bringing a lot of money in there. Lets see if it keeps flowing after this failed military coup. Thank you so much for that. We are checking some other stories for you right now. French police have made further arrests over the to steal they attack that killed 84 people. Inther 80 five survivors hospital, 18 with lifethreatening injuries. Officials have defended security precautions in nice, saying 126 police and soldiers were on patrol. The socalled Islamic State times responsibility, but the truck driver had no known links to extremist groups. Oil producers expecting a third year of lower prices with drillers and creasing bets on Falling Crude by 29 . Crude has declined more than 10 since the peak and early june. It is stoking fears of a secondhalf slump, drillers raising cash by selling stocks or adding fresh hedges. Singapore may see more Companies Default as they struggle to meet the terms of their debt. To oil and Gas Companies have sought to extend maturities due to the weakness in the oil it oil industry. Is it a sign of something more . Lets get to our Southeast Asia correspondent. How bad does this look here . The two companies that ed. Ault it default 10 more are needing help. They are struggling to meet the terms of their debt, looking to extend maturities and loosen covenants. It gives you a sense of how difficult it is for these oilrelated companies most at risk. They have about 1 billion of bonds maturing by 2018. 20 is due by year in. We have seen prices recover, but they get Energy Players have yet to reinvest. It remains challenging for oil services companies. That is what we are seeing right now, they are struggling. Why is it that wealthy singapore bondholders are the ones getting burnt . Most of these bonds have been held by wealthy singaporeans. And 2014, Singapore Private banks bought 45 of local currency notes. They form the largest investor group. They have been looking for yield. Endsunt for yield always in tears, so here we are with wealthy individuals holding most of the Singapore Dollar bonds getting hit the most. They have helped to drive the growth in the bond market here. It is an ill liquid market, no liquidity in the secondary privateand some say banks could play a bigger role in helping clients to the process, but that is not really happening. It comes back to investing 101. S p says bonds in singapore suffer a lack of coverage, not much surveillance and research. Alarm bells should have been ringing right at the very beginning. Angie a lesson for everybody. Thank you so much for that. Haspokey man go phenomenon not only left its mark on the world, but also the market. Its 15 minutesr to run out per andy were all. Andy warhol. Nintendo has made history on the topix now . Juliette thats right. Nintendo has become the most traded japanese stock in any one day this century. It traded 4. 5 billion worth of shares on friday. That is the biggest daily turnover for any company on the topix. Electric,n over tokyo softbank, and the pond steel. We also saw nintendo shares rise significantly. They rose 71 . As i mentioned, becoming the most traded japanese stock since the century began. For ites that mean nintendos market cap . It has overtaken a number of big name companies, globally as well. Of 7. 3 market cap billion. That has more than doubled since its last Earnings Report when it reported a market cap of just over 17 billion. Nintendo has taken over a number of bigname companies. So not surprisingly with that kind of jump in one week, technicals are showing signs that nintendo is overbought. It currently has a relative strength index of 70. That does not seem to be deterring investors. Behrens says nintendo could continue to rise. No trade in japan today, but we will see what tuesday brings. All right, thanks so much for that. Ground, on solid Digging Deeper into china Property Prices. This is bloomberg. Angie a check of the latest business flash headlines. The Italian Government has hired j. P. Morgan to buy troubled loans from lenders. That is according to the sunday telegraph. 11 billion worth of public money could be used to buy nonperforming loans. Planu may oppose the because it does not want taxpayers bailing out banks before private investors. The fed willting keep low Interest Rates longer. It has reduced its forecast for net interest margin, the difference between what it makes on loans and pays on funds. Half, five second basis points below the previous forecast. Citibank reported a 17 drop last quarter in net income. Microsoft may not reach his goal to get windows 10 on one b devices. On one billion devices. Microsoft says it will take longer to achieve because of a dramatic reduction in Windows Phone business. The software has attracted only 350 million monthly active devices. A goal not being met on china either with new home prices rising in fewer cities in june. Prices were up and 55 compared with a cities in may. Your first reaction to this number. We saw some price recovery and now giving it back in china. I think it is in line with expectations. The government has put various measures, especially tier one degree invarying price, growth moderating in april and may, but price increasing again in june. It also depends on the product mix of the developers. In shanghai and shenzhen inventory lower. Prices will continue to beehive. High. He be the government has to satisfy demand, which will enable prices to correct. Angie they are doing what shanghai and shenzhen homebuyers dont want, restricting, but they are causing prices to rise, overheating what they anticipate is an already overheated market, so why cant they get their policy right . Policy is always difficult to achieve. I think the government is looking at longterm goals to maintain a healthy and stable Property Price market. In the lower tier cities, they are encouraging sales through relaxation measures. Angie still weakening prices. Again, it will take time. Sales are picking up, but in some of the lower tier cities, demand is weak. Theres not a lot of new job creation. Reallyisnt it reflective of the broader chinese economy right now . Yes, the chinese Economic Growth has certainly slowdown down in the last three years or so. The government is putting in a a lot of stimulus measures. The relaxation over the past 18 months is one way to boost the Economic Growth and stabilize the economic slowdown. I think on the over all the government will continue to maintain loose hands on the public property sector. Better inittle bit terms of the gdp, fueled by credit growth, and a lot of that credit growth is coming from mortgage loans. What is the danger of that as people look at rising defaults . Mortgage loans have been growing 50 year to date, in line with National Sales growth. How dangerous is that when people are losing jobs . Loan terms of the valuation, i think the banks are still quite prudent. The lower tier cities are looking at about 50 . Wealthy individuals with good credit ratings, they are open to extend to them. Time we saw this nationally supported and field housing drive, we saw that in the United States, led to some subprime lending and the housing crash. What is the chance that could happen in china . The chances quite low. They are trying to stop speculation in higher tier cities. Government is taking steps to prevent it from happening. Outlook for property, better than the first half . Not necessarily. The first half was very strong. We will see National Sales growth moderate, especially from the strong base last year. In 2017, i think the growth slowdown will be even more obvious. We do see a slowdown, but assign a stable outlook to the sector. Angie thank you for joining us here. , we take a look at how the turkish president took to social media to thwart the military coup. This is bloomberg. Return to the situation in turkey, a nation known for blocking social media sites at times. It is surprising that the government turned to the medium to get its message out during and after the failed coup attempt. President taking to face time. It is a little bit hypocritical considering he froze social media for his own citizens. You could put it like that. There he is talking to a reporter there. Supporters to go into the streets and take to the squares, essentially trying to reassert authority. Control, trying to take back control and using social media to try and control the message. What thessentially blocks are about, to control what the turkish people are seeing and hearing, whether it be a terrorist attack or elections. In march last year, the ruling party did push through this rule that would allow to block sites without needing a court order. Turkey has a young population. Has embraced social media and online technologies. For example, banking, more than half of the population use Online Banking compared a third in most european countries. Angie they continue to harness social media to rally supporters on twitter, something he also froze. He did use the turkish presidency, calling on people to go to city squares and airports and saying the president and government are on duty, encouraging them to go out there and put up a show of force against the attempted coup. According to the u. S. State department, they have been using twitter to try to get the message out. Angie thank you so much for that. Keeping and i on social media and the latest on turkey. In the next view, barclays view and the possibility of helicopter money from the boj. This is bloomberg. Angie this is trending business. We are lies in singapore, sydney, and istanbul. Hubsngoff, regional joining shanghai and shenzhen to curb in approaching bubble. Were also watching the turkish lira, regaining after the failed military coup. Governmentrdogans is backing control. Exxon mobile joining the race, offering 45 per share in what rivals say is a superior bed. Let us know what you think of todays stories by following me on twitter angietvlau. Trading in indonesia getting underway right now. Heres a look at the market. David things has been picking up in terms of volume. It is not exactly on optimism. Keep in mind, last week, monday through friday, gains across the asiapacific. Valuationsmagine the we are starting at but, again, searching for reasons why we are looking at gains, it when thees not matter underlying expectation is that more cheap money is going to come to the table. Look at australia, one third of 1 higher. Level so far this year, taking us all the way back to august or september last year, so, 54, 45. Another symptom of all of this money trying to find a place to go, taiwan entering the market on friday. Bull markets are in a are in all those which an emerging market space with the exception of new zealand. Now that said, have a look at the nbci emerging market index. Year est level this look at the amount of inflows going into emerging markets. Bonds,u look at the there is a lot of money going in. We ask people, why are they going in . It just appears that is where the money is going. Angie where is money going in home prices . China home prices rising month over month in cities. It is is a bad thing . Guest it depends. The pillarppened is of property has helped support growth howbeit albeit tepidly. Upswing in saw and credit, which usually goes into property. We have definitely seen that in places like shenzhen. Nationwide, here are the numbers. Of 70 cities, we saw pricing increases, so this is a continuing upward trend, representing the pillar of the chinese economy which is still strong. What is good and bad . That is a good number that it is adding to the acid levels. Asset levels. Month over month, you are starting to see restrictions and shenzhen and shanghai. Tier 4 are working off their excess inventories. People has been piling into the tier 1 cities and that is what we have seen. We are losing some momentum month over month. 10 cities saw decreases compared to 4 and 5 the previous few months. We have a separate number of total sales in the first half of the year. It looks like a strong number. If you look at the First Quarter , up 54 good again, the outence of the steam coming even though cheap credit was still plentiful. Angie it looks like a tighter restrictions did not necessarily work out for those markets because people still want to buy into it. It is also not helping recovery situations, either. Guest the government really wants to work off of the excess inventories, too many apartments sitting empty, not doing anything for the economy, but i want to bring back to shenzhen this has been the poster child. Shenzhen prices two months ago arising 62 . That has cooled off. Month over month, just last month, shenzhen cooled down to just 0. 5 . The previous month was 2. 3 . This is month over month, this is crazy. Considerably but look what has happened, and they to june may to june. Payment a mistake that is my typing trying to get onto the send quick enough that is june. The road trend is, slowing momentum in price gains. Slowly working off some inventory on those cities as represented in the overall number of cities. Angie but reflective of credit growth. Guest when you see a surge in credit growth, you see a rise in Property Prices. Angie still, regardless of what anybody says, thank you for that. The government of turkish erdogan says 6000 people have been arrested after the military coup, almost 300 killed and 1400 wounded. Inare alive and live istanbul. And 60000 killed people arrested, mainly Army Officials and judges. The Justice Minister says this number is expected to climb. They are saying that the person behind this failed military coup is a usbased cleric. He denies all charges but the president is pressing the United States to extradite him, the u. S. Says they will look at the evidence and see what they want to do. Theident erdogan, despite death and arrests, is saying ist the failed military coup a gift from god. He is also urging his supporters to take to the streets and for the third consecutive night, thousands of people have taken to the streets in support of him, weaving the turkish flag. Angie what kind of Market Reaction are we seeking . We are seeing the turkish lira recover a little bit. Guest that is right, the turkish lira a strengthened against the dollar after nosediving on friday when we heard of the intervention. We will be waiting for the stock market to open in a few hours and we could see a reversal of foreign funding. Last week, a climbed 6 as that the stimulus and the economy will boost riskier assets like turkey. We are also going to be watching on tuesday for the central bank decision. Before these events on friday, the central bank was expected to cut the effort and by 50 basis in as, for the fifth month row the now after this field military coup, we are watching closely to see exactly what they will be doing. And this is over to come had a difficult time for their economy, with a vehicle to recover . What about tourism . Guest tourism has taken a major hate over the last year as turkey deals with terrorism from the Islamic State in the Kurdish Militant Group pkk and tourists have been staying away, including russian visitors after causinged jet, diplomatic tensions with president vladimir putin. Almost tourism dropped 40 . However, the economy is expected to grow four percent this year. We are seeing a drop in unemployment numbers and a slowdown in inflation. You so much, watching the latest out of turkey. Lets take a look at some of the other stories we are watching today. Has put exxon mobile in an offer for interoil at a price of 45 per share. Thans say it is better their own bids. The proposal would have made a deal worth about 2. 2 billion. This offer tops that. The company focuses only on Papua New Guinea and operates existing plans there. Exchangesore stock seeking a trading halt. Hold willge says the be lifted after he makes an announcement to clarify the report did there was a fivehour trading halt due to a technical malfunction for which they have since apologized. Spokesman in shinzo government says an economic stimulus package will not be funded by deficit bonds. The data, however, and that construction bonds will be titled longerterm investments. The plan will cost about 95 billion. Shinzo abe says this would include funding for regional infrastructure like highspeed rail lines and ports. Japan is already the worlds most indebted nation. Angie still to come, singapore bracing for more corporate default and the wealthy are said to be the biggest losers. Plus, we will look at some of the big movers in the currency markets over the past few days with barclays. This is bloomberg. The turkish lira has regained about half of the losses following the failed military coup but my next guest says the Political Uncertainty will continue to weigh heavily on the currency. Joining us now from singapore,. He head of barclays strategy when you take a look at what president erdogans agenda is, this really enforces and builds on his political capital. And islamist versus a secular military stance and adjust reveals that there could be continued tension. That is right, there is going to be uncertainty. In one way, president erdogan may use this is that if i. A lot depends on whether he has cracked down on the opposition parties or if we will see some sort of a compromise or some deals with the opposition, but this may be a step along the path towards having a stronger presidency, Stronger Leadership that he has been pushing forward with. Market uncertainty is going to continue. We may see some pressure on the turkish lira despite the recovery as well as some steepening in the Interest Rate. We are going to see the pressure continue for some time. This could raise more economic risk. Theres a huge amount of deposits on sure that you might see Retail Investments start purchasing more. That could contribute to the impact as well. Angie the markets may not necessarily agree with us regardless of how we feel about a volatility in turkey because at the end of the day, this is an emerging market. It provides a yield in a global environment. A good point. And this is one of the things that has come about since the u. K. Vote in june. There has been a hunt for yield has yields have been falling. Are doing ors particularly well, including and brazil. Ndonesia this hunt naked a little bit of protection to the turkish lira as well as other currencies but our view is that this may not be sustainable. Ultimately, we may see some risk aversion pick up again in the months ahead after a short hiatus. We are seeing at least a recovering weakness in the japanese yen right now. Is that going to be enough for them to stand pat at the end of the month yo . Probably not, that weakness is due to the expectations of more monetary easing. There are even expectations of helicopter money being implemented, which would create a permanent increase in the money supply. There is the risk of some disappointment here. A 20 basising for point cut, and we are looking buying, andally more we could see some fiscal stimulus. The further out, fundamentals still support the strength of the japanese yen and it is difficult to see it sustaining its decline. Which fundamentals are we talking about . It is not japan supporting the strong yen. Japan actually has a positive output. It has a very, very Strong International investment position. It is obviously still the best safe haven currency around. We could see risk aversion pick up in the japanese yen will find itself strongly in demand. Saw when we saw the imposition of the negative rate, the impact on the japanese yen was shortlived, and this expectation is already built into the price. , and i thinkumor ultimately, the japanese yen will strengthen. Angie here is the problem. Most japanese were supporting the government debt. They were the biggest buyer. That has been replaced with the central bank. We have seen that affluent japanese investors searching for yields in u. S. Markets. If you do not have that support ,f the debt market in japan ultimately, that strength goes away, which signifies weakness. I think the point for the japanese debt market is that most of it is held domestically around 95 . If foreigners start selling japanese, that is not a big deal, it is whether the boj stops purchasing japanese debt and that is a very unlikely scenario. I still think we are going to see Strong Demand from the boj but it is very unlikely that you are going to see an impact on jbbs. I have to ask you about the fed governor who says that most of the data they have been looking at is wrong. Contradicting all of this datafueled decisionmaking from janet yellen and his colleagues there at the Federal Reserve, do you think that this is a new chapter for the Federal Reserve governors to talk about what is going to drive decisionmaking forward . I think it is interesting that these comments have been made. When you look at the recent data, it has been good. Nonetheless, retail sales were good. On the face of it, this would also just that they are still on track to raise rates. What is more interesting is that these comments suggest that there is not a unified view in the federal bank unlike the greenspan fed, janet yellen is struggling to get his unification. We are seeing quite a divergence. It doesnt mean they are not going to hike rates, but clearly there is much more divergence than we have been seeing. A centralin, this is Bank Governor that values consensus, so perhaps this divergence is interesting to note. Lets talk about ecb, what decision will they make . Guest we think there is no change. They may hint at further moves, perhaps the extent of asset purchases, we could see a delay perhaps in september, a delay in terms of when they finish their Asset Purchase Program are the parameters might change but i think it may be too early, just like the bank of england, they may wait to see how the impact of the leave vote will impact the european economy. For now, the data and growth has been recovering. We do not expect that to continue. We have revised it down sharply for eurozone growth. I do not think is going to happen this week. Angie great insights from barclays. Always good to see you, thank you for that. Lets get the latest business flash headlines. Yahoo may be looking at more job cuts after the sale of its internet assets. The new owners could slash up to areas like Human Resources and marketing. Second quarter earnings will be reported later on monday. Devaluing the Australian Dollar could be do best option to stoke their economy. Believes the rate cut will have a limited effect on their benchmark rate of 1 , as you shared by the rbas next governor. Devaluing their dollar would not stir any opposition. Investors have turned a little positive about the economy if gold is anything to go by. Concerns over the brexit vote have used while the u. S. Economy has stayed strong, curbing the need for Precious Metals as a refuge. Next, the u. K. And australia turned back the clocks with a tradeial postbrexit deal. All of the details coming to your next, head. This is bloomberg. Angie welcome back to trending spokess. Theresa may with her australian counterpart not internal over the weekend to discuss bilateral trade deal as britain prepares to exit the european union. Lets go to sydney. There are still some significant legal hurdles in the way of any potential deal, right . Guest you could say that. That is not actually legal for britain to engage in any deals outside the eu but that is about to change did if theresa may had a conversation on the phone on saturday, the australian Prime Minister calling that discussion constructive while theresa may is it saying that she has already said that britain want to make a success out of the brexit and striking trade deals across the globe is part of that bitterness of the two leaders with an opportunity to meet in september when they get together for the g20 summit in china to discuss is a little more, angie. Seen thishaway before . And trade deal between britain and australia would be winding back the clock . Guest yes, you might remember the days when britain joined the Common Market and what a disaster that was for australia and new zealand, losing one of its main trading partners. 90 of australian exports collapsed overnight and it was a similar story for a lot of commodities and words like the trail were getting kicked around. Betrayal who are kicked around. They could be that to the good old days. Angie thank you for coming up, exxon mobile joins the fight to control reserves and papa new guinea. This is bloomberg. Angie top stories trending this hour. Softbank agreeing to deal arm deal,gs, a 32 billion the Japanese Companies biggest 43 above fridays closing price. Did for has out. Ut bid a company for interoil than another bid. The turkish has regained half of its losses following the failed military coup. By president t led oil and gas that are flowing unhindered through turkish ports. Here is david with a look at what else is moving the markets for you now. David we are looking at a mixed of developed ar markets. Developed markets. You get the picture. Developed markets open are seeing a decent bid. Volumes are quite light. Were still looking for the next catalyst. My point is that we have seen a lot of inflows into the markets and etfs on friday. Toyou look at the exposure debt over emerging markets, substantial inflows from Institutional Investors and on the retail side. Here at something special. Pokemon go, j. P. Morgan out with a note, the best ways to play pokemon go if youre looking at data usage. We are looking at developed markets, telcos. Japan is closed today. Weeks, sowo essentially you are betting on increased data spending because people are going crazy over this game. This, iway to play mentioned etfs. Quite a bitn bid up as well. Nintendo, 90 . Up a 5 nintendo makes part of that etfs. Let me wrap things up with australia. Gold not mining, exactly in favor today. Whitehaven coal, which morgan is the new metal, so looking at higher commodity prices. Toces have the potential coalsdue to fortunes. The price target raised 41 to a 2. 25 a pop. Risingnew home prices and fewer cities in china last month. Seeing a deliberate attempt to cool house prices . Very definitely. A big pillar of the chinese recovery has been in housing markets. Makers wanted to see more houses built and more homes sold. In may, the value of homes sold increased by 70 . Curbs,ve stepped in with slowing down and cooling down. It is deliberate. Angie trying to get that out, but still tier three and four cities are having a tough time, and isnt that more reflective of the wider chinese economy . There is significant overhang there. That is a problem. That is acting as a drag on growth. It was working well in second and first tier cities, but outlying cities still a problem, and thats why having the balance right between curbing and stimulating those cities where they need to have more infrastructure build and make sure those homes are sold. It is a tricky balancing act between curbing and making sure the unsold stock gets shifted. Ok. E thank you so much for that. Exxon mobil has made a superior offer for its takeover target, interoil, giving the Company Three days to respond. Lets get more from our energy reporter. Superior to the one submitted in may . Is split up into two different parts. Exxon is offering 45 a share versus 40. There is contingent value rights , where exxon promises to give interoil shareholders extra based on how much reserves are found in interoils land. That dead is a little bit complicated because it depends on how much gas is found, but exxon basically offered a 17 premium. Both fronts there, exons bid came in a little higher, so interoil changed its idea for its shareholders and told them to support exxon. Angie it is interesting also that pop in new guinea popout new guinea is finding itself in the middle of a bidding war, right . Yeah, small Southeast Asian nation, but the strengths are twofold. They are lowcost and synergies. Aree elk antelope fields close to where lng is exported, so the cost for developing the fields and piping the gas down there are not all that much. An lnglready operates export facility there, and buying interoil would not only give it more gas to allow to expand, but also buys into a stake of a second proposed lng thenct, which exxon could use synergies to lower cost and get more bank for its buck. Angie what happens next. Said, they have three days to respond to this exxon offer. They said it is exploring its options and has not made up its mind yet. Over the next couple of days, there will be on a lot of buzz between the two of them to see whether or not this is something they want to try to top. Are already a partner in exons current lng venture. They will be a part of this new proposed one. Angie all right. Good to see you in our part of the world. Life for us in singapore. Singapore may see more Companies Default as they struggle to meet the terms of their debt. To oil and Gas Companies have already sought to extend maturities hurt by the weakness in the oil industry, but are there more to calm . To our Southeast Asia correspondent, does it look bad . And how bad does it look . There is a potential of a getting much worse. Two companies have he faulted, and bloomberg data shows 10 more are at risk. They are finding it hard to meet the terms of their debt and looking to extend maturities or loosen covenants. Is looking to extend maturity of its bonds in october by as much as two years. That says a lot about how challenging it is for the companies and oil related companies most at risk your good they hold about 1 billion in bonds maturing through 2018, almost a fifth due by year end, but take Energy Players have yet to reinvest. Company still treading water. That is why it is so difficult for these companies. Angie it looks like wealthy singapore bondholders are the ones really getting hit. Why is that . Most of these lawns are held by wealthy singaporeans. In 2014, Singapore Private banks bought 45 of local currency notes. They make up the largest investor group. The attraction is yield. According to one analyst, a hunt sor yield almost always iend in tears. Ends in tears. S p says these lawns suffer from a lack of coverage, not much surveillance or research on them. There should have been alarm bells. Because the secondary market is not liquid, it is difficult for investors to leave. The hope is for private banks to play a bigger role, but so far that is not really happening. Angie ok. Thanks for that. Get to other stories making headlines this morning for you right now. President obama has condemned the shooting death of three officers in baton rouge and the wounding of three others as the act of a coward. Louisiana police say the suspect has been killed, but did not give further details. Two weeks ago, Baton Rouge Police killed an africanamerican plan man, setting off protest. We as a nation have to be loud and clear that nothing justifies violence against law enforcement. Attacks on police are an attack on all of us and the rule of law that makes us society possible. Angie French Police have made further arrests over the bastille day truck attack that killed 84 people. Another 85 survivors are still in hospital. 18 with lifethreatening injuries, many of them children. Defended security precautions in niece, saying 126 police and soldiers were on the troll. The socalled Islamic State did claim responsibility. The truck driver had no known links to extremist groups. Sri lanka says it has no phobia about which countries it accepts money from, china, and japan, india, singapore and seeking investment in sri lanka as the country emerges from a decades long civil war. The country said it would break its reliance on china, but has since had to mend ties with beijing after a ballooning budget deficit forced it to seek help from abroad. We will take any investment china,mes, east asia, japan, india, singapore, and also from the middle east. We need the growth. We need the economic transformation. Angie coming up, turkeys government is not usually a fan of social media, but during the past few days has decided to make its voice heard. We will take a look at its ambivalent relationship, next. This is bloomberg. Angie welcome back to trending business. The kiwi dollar falling after we aker than expected inflation. See the rbnzts now governor responding to weak growth by cutting the cash rate. Itstalian government says hard j. P. Morgan to work on a plan to buy troubled loans. The sunday telegraph says 11 billion worth of public money could be used to buy nonperforming loans. Problem, the eu may oppose the plan because it does not want taxpayers bailing out the banks before private investors. Jb j. P. Morgan has declined to comment. Citigroup betting the fed will keep Interest Rates lower for longer. It has reduced its forecast for net interest margins, which is the difference between what it makes on loans and pays for funds. The margin will be 2. 9 and the second half, five basis points below the previous forecast. Courted death recorded a 17 job in net income last quarter. Microsoft says it will not reach his goals of windows 10 on one billion devices. The company says it is committed to the goal, but it will take longer to achieve. That is because of a dramatic introduction and its Windows Phone business. The software has attracted only 350 million monthly active devices. Active, lets return to the situation in turkey. In a nation known for blocking social media at times, it is surprising the government has turned to the medium to get its message out during and after the failed coup attempt. We are taking a look at this, erdoganaw president taking to face time with the events unfolding in turkey, but what is good for the goose is not good for the gander because hes the one who blocked social media for his own people. Paste president has in the had a relationship with social media. Their ang party push role in 2015 allowing it to block social media sites without a court order, so essentially restricting the flow information from social media. That is essentially what it is all about. Facebook to communicate with the people, urge people to go to the streets and airports to show their support. That was one way of him trying to reassert control and show that he is still there even though there were people trying to attempt a coup. It is a very connected asian nation nation with a young population. Adopted Online Banking, more than 50 compared to the european average of a third of the population. So social media is deftly one of the things that the young population has and braced. According to techcrunch, they looked at a site that checks various social media sites to see which ones have been blocked. That facebook, twitter, and youtube where unresponsive. Access appeared to be restored after about 90 minutes. The u. S. State department was essentially saying that reports are that certain sites have been blocked. They were encouraged to use other means, telephone, email, and sms. Angie it is ironic that erdogan blocked twitter and a lot of other social media to prevent protests in the street ahead of his election, and now he is turning to twitter to rally his supporters to go out into the streets. Tweaking s been eting extensively. The official twitter account of used byidency was also the president as well. Tocalled on everyone to go city squares and airports and saying the president and the government are on duty. Social media to rally the people to get support on to the streets for him. It does seem it has worked. In the past, a leader who was not able to get his message out, probably is not much of a leader and cannot assert control. Media for hiscial own means in this way. Angie thank you so much for that. What elseor a look at we will be watching for you in asia over the next five days. Tuesday, the imf releases its latest snapshot of how it thinks world economies will perform. Earlier this year, its Macro Economic forecasts all growth of in 2017. Ng to 3. 5 Christine Lagarde says there is little hope that the forecast will be revised up. The new Development Bank will hold its first annual general meeting in shanghai on wednesday. It was established by the brics countries last year and expected to contribute to infrastructure development, clean energy a focus. Macaus latest visiting numbers, revenue hit a low. Steadysmarket remains and is in position to grow with new resorts adding to nongaming attractions. A meeting of g20 finance ministers and Central Bank Governors takes place next weekend. This is the third such gathering this year. China holds presidency of the group. The meeting comes with a spotlight back on centralbank action in the face of global volatility. For corporateeek results and the u. S. As well. We are expecting some economic data. Su keenan has more from new york. Ahead on wall street will be all about the question, where do stocks go from here . A lot of investors weighing the potential for further gains with stocks near records. Corporate earnings are projected to drop for a fifth quarter, so there will be a focus on economic numbers and the profit reports, a question of whether the where the momentum comes from. Set to report, bank of america kicks things off on monday. The markets will get a double dose of u. S. Housing news, figures on previously owned homes sales and new construction surge in june expected hit the tape. Economist surveyed said it will be little changed in june. Wall street monitoring headlines out of the Republican Convention as delegates prepare to nominate their choice for president , donald trump he is the present of nominee. Other Companies Reporting earnings include halliburton, microsoft, general motors, and starbucks. Coming up next, top trade. How nintendos pokemon go has helped company make its mark on history. This is bloomberg. Angie go, go pokemon. The phenomenon has left its mark on the world. We are following the story. Nintendo has made history on the topix. That is absolutely right. Have a chart look at this chart right here. Nintendo becoming the most century,ock in this 4. 5 billion dollars in shares on friday, the biggest turnover for any company on the topix, taking tokyoippon steel and electric. This chart will show you how impressive last week was for nintendo. Surgen see that huge coming through and that latter part of the trade last week, nintendo shares surging 71 , so no surprise that this is its largest weekly gain ever. In terms of market capitalization against a number of other companies globally, nintendo now has a market cap of 37. 3 billion. That is more than doubled since its last Earnings Report in march when it told the market it had a market cap of just over 17 billion. Nintendo has overtaken a number of bigname companies. Not surprisingly with that kind of jump in a week, technicals showing signs that nintendo is overbought. No trade today, but lets see what tuesday brings. Angie thank you so much for that. That is it for us on trending business. Stay tuned for asia edge. It is the middle of the asian trading day. We are live in hong kong and this is asia edge. The top stories, softbanks biggest deal close to buying british chipmaker for more than 32 billion. 6000 are arrested in turkey. Also coming up, exxon mobil joins the race for inner oil offering 45 a share. Lets check on the markets with david. David over the last five or 10 minutes or so, it a spike here in dollaryuan. The weakest level for the chinese currency going back to the first of november of 2010. One on they single way down. Not exactly moving in a vacuum. Equity markets look like this, not the most exciting of days