Tire n markets, stray straits higher. Chinese banks reporting yesterday. Beating forecasts again. The pboc clamping down the credit issue in china. People run off their trades for the quarter and it is on to the next quarter which starts tomorrow. Some of the worlds biggest banks are facing increased scrutiny. Ae bank considering forgoing potentially lucrative deal in the country. We are talking about Deutsche Bank. A conflict of interest here. Right. The core of the issue, you are here you are seeing a lot of hires. Relatives in high places. Lets put it that way. One of their clients, china general nuclear power, that is chinas Largest Nuclear power producer. Deutsche bank has been working on a few things with this client. This is also the same client that the nuclear producer the same client, the nuclear producer, who is said not to file in hong kong. Now it is likely to fall out of a ipo. In this case, it is the daughter of the chairman of this Nuclear Company that is said to be working for she either works or she does not. We do have a timetable. She is said to have been hired in december 2011. She was then said to have moved d in Deutsche Bank. Obviously, Deutsche Bank declined to comment as did the client. The client said that the daughter, celia, is not currently working for the bank. But this is something that jpmorgan has had to grapple with as well. Coming on the backdrop of what happened this week, the search of the ceo here. Right, here in hong kong. I think his resignation was announced march 24. Havecac are said to investigated the offices. But they said they do not comment on individual cases. As did jpmorgan who declined to comment. But we heard from resources that they have taken computer records, several documents from , and the court issue is whether or not jpmorgan did hire some people so that their relatives could steer business toward the bank. Thank you. Company ischinese said to be looking to list in hong kong. Portome say that tsingtao qingdao port is looking to list. Profit at record chinas biggest cell phone maker. Huawei is gearing up to make up for Cyber Security restrictions in australia and the united states. An ali baba shopping spree goes on. In time retail. They will form a venture in china. Abenomics is faltering, that is the latest data. The concern is that it is 2. 3 . Tomorrow, the tankan survey. Slightlyis faltering abenomics is faltering slightly. This is the performance of the yen so far this year. Abenomics wants a weaker yen. Wants to encourage exporters, wants to encourage japan inc. So far, not looking very good. Another big blow for japan is the amount of foreign money being pulled out. The impact has been pretty dire. It has. Year 9. 5 far this down. Up. Topix you mentioned the money going out. 97 5 billion yen. Cashiggest withdrawal of since the crash of 1987. That shows you concerns about this. Also the strong yen weighing on those crucial exporters. Coming up later in the program, we have claims that the spills appetite for coal danger for the Great Barrier reef. Richard harris is on asia edge next. Asia pacific stocks on the rise. Set for a fourth straight daily advance. Iswonder why Richard Harris wearing his ostrich todd with heads in the sand ostrich tie with heads in the sand. Do we have a closeup of richards time . It also has some ostriches without their heads i also wear my elephant tie. They never forget, you see. Is this a forgettable First Quarter for japan . For most of the markets. , but for japan, after last ye very much is well discounted. Shinzo abe, it is not of the omics. Not aben we had the three arrows. The key one was reform of the economy. But that has not happened. It is almost impossible politically. , guess we thought that abe of anybody, would have been able to do it but he has not. He is addressing lawmakers today. To have stimulus on stimulus, there isnt a lot happening. It is like having a jumbo jet going around the runway and not actually taking off. I think olivia dese would be that generous. Patient is sick and getting a placebo at the moment. There is the ultimate realization, hang on, im not feeling better. The japanese index was largely psychological. We saw a big hole in the yen. Against the u. S. Dollar, it was not that far off. I think the markets pretty well know when something is happening and when something isnt. Do you think todays factory number is really worrisome . I think that a lot of the figures we are seeing at the moment on the low side even out of the states, we have some weakness because of europe, etc. But fundamentally, the numbers are good. But they thought it would increase factory output because they thought the demand would be there with the sales tax. On the other hand, im not sure we should be panicking at the moment. Have had to bring forward their consumption ahead of that. Is it not more worrying that they have not done that . Your producer was bringing head consumption and she was in hong kong recently. If you look at what happened in , it when they put vat up did not come out in the figures and it had almost little effect. Inwhen you compare a 8 tax, the u. K. In europe it is about 20 . The problem is all of this optimism was supposed to offset the sm is him after the sales tax, that wed we that we would see a big hit to gdp. So well that optimism get considerably larger . If they optimism isnt there, the pessimism probably isnt there either. I point to what happened in europe where taxes went up and people just took it on the nose. They are relatively small increases and they have been discounted better than the second coming. I think the consumers have very well budgeted these. We may see figures pretty well close to zero but i am not panicking at the moment. If you look at what janet yellen was saying 10 days ago about the u. S. Economy underlying still being strong, i think thats right. My feeling is that the u. S. , the u. K. , europe are still in reasonably good shape. And the figures will start to improve. I think they will start to be the engine of growth. But it will take a while. What do you think the strategy is for japan, Capital Expenditure or investment in technology . I think those are very important but the most important thing for japan, as for many other markets, is to release the supplyside. We have to go back to factorism and reaganomics. Relaxing the supplyside and getting producers to produce more. The amanda side we try to push with relaxing the economy to its bitter and. To relaxtime for banks and they need to come to the party. If things are looking bummed out, is there a long way or for the to go . I look at japan as an index on the world market. Bethings go bad, it will because the rest of the world is going bad. By the time the next crash comes around, it will still be highly indebted. It probably will still have a supplyside problem. And that is probably the time you want to be careful about it. Where are you invested if not japan . In the developed markets at the moment because that is where the recovery is. There is a wildcard. The emerging markets dont look great at the moment. Indonesia looks pretty great. But some of these markets have been hit quite hard. They are not necessarily impacted as much by specific factors like we see in china at the moment. As we see recovering western markets, we will see recovering there. Harris, Group Discussion coming up in about 15 minutes. Australia says there is no time limit for the search. The missing malaysia and asia edgen returns. The australian Prime Minister says there is no time limit on the hunt for the missing malaysia and plane. Tony abbott spoke after search patrol in perth. Still no sign of the plane. We still know so little. That is contributing to the frustration. Day 23, nothing from the search. The operation today includes the australian vessel fitted with underwater vehicle and equipment to detect of the missing plane. Time running out very quickly. As you know, the lack boxes are batteryoperated. They last 30 days. Seven days left. Australia says, if they dont get a location on the pinger, they have to use a sonar to get the image. It is a slow process. We are well short of that point. I think we await to the grieving families of the 239 people on board. We sell it to the anxious owernments of i think we to the grieving families. We owe it to the anxious governments. Them to doo all of what we reasonably can to get to the bottom of this mystery. And a lot more work needs to 0. Done to locate amex 37 we heard about the data locator. Technicians are still looking into it. They are trying to extricate data even from the pilots digital media. The fbi is almost halfway done in the analysis. That is according to one u. S. Official who did not want to be identified. The official says no smoking gun has emerged so far. Nothing sinister. Witht the fbi to be done its work on the simulator in a week. And you cant help but think about those families. There has been no answer. The emotions are running very high. Beenerstand there has another outburst of emotional reaction from the families. You are right. It has been very emotional and they are venting their anger. They are to many what they call the truth. Several dozen chinese relatives are demanding an apology for the malaysians handling the search. Statement that said the plane crashed into the southern indian ocean. They have said before that there is no proof and they dont quite believe that. Arrival,urs of their they held banners saying we want evidence, truth, dignity. Also hand as the murderer. Give us our relatives back. Pretty strong words. You can understand their predicament. The airplanes disappearance has sparked anger in china. As well as announcing boycotts and malaysia. In malaysia. Thank you so much. The top check on stories making headlines around the world. Close economic relations in china have been hindered by protesters. About 100,000 people but organizers say that half a million to art. Took part. To Prime Minister refused shelve the deal. Holding talks in paris seeking a solution to the crisis in ukraine. Ukraine cannot function as a unified state and should be a federation of regents who choose their own language, illusion, and economic model. Meanwhile, crimea has cemented its relations to russia. Moved forwarde two hours to be in line with moscow. Protesters have returned to bangkok after a relative calm. Toling on Prime Minister resign. The march was the first since the Constitutional Court decided to until februarys general februarys to annul general election. China is experiencing a 3d printing revolution. That includes entire buildings. Materials are said to be more environmentally friendly and costs substantially less than traditional construction. We are counting down to the open in mumbai. Just less than 20 minutes away. Futures currently looking like this as mumbai opens. Lets whip around to the rest of the region with futures pointing to a higher open for the nifty 50. For the nfte the regional benchmark index hosting its worst start to the year. Uncomfortably nudging close to that 3 on inflation. Rate perhaps unchanged. Seoul, a trading debut for harbin bank. It is a third of 1 higher here in hong kong. That is among the gainers here today. Pricing the low end of the range and raising money here in its trading debut. Chinese regulators helping to maintain those gains as part of the regulations of new chinese ipos. We are looking forward to the afternoon business in tokyo. We will get the latest on japan after this short break. Japan reopening in three minutes from now. Trying to turn things around. We will hear from the head of blackberry. Commerce versus conservation with the Worlds Largest living thing under threat. New zealand took this contest but there is a currency battle that it does not want to win. Neighboring countries yet often far from neighborly when it comes to sports. Australia and new zealand are known for their fierce rivalry on the rugby field. But there is a top spot that neither one in either country will want to own. Dollar is the bestperforming currency. [indiscernible] china is the largest export market. One of chinas original video websites is hoping that it will come to the rescue of the stock price. America is the american superhero, the Marvel Comics hero that was made into the movie. Scarlett johansson and samuel l son flew there to youku. The company has been well regarded for its online video technical prize. It is one of the first in china. But it does not necessarily have the traffic to move forward. Stock is down 18 over the past month and they are trying to do what they can to arrest of that slide. Addedring with disney captain america is one way to do that. It is a big growing trend. A bew siyr a new source of revenue for them. You want more eyeballs and stronger content. They are all investing in content, the name of the game rihght now to expand their library. Second time is the charm for john dawson. Back to the story of australia and new zealand. They are fierce competitors on the rugby field. But that is also applied to the currency markets. It is a top spot that neither australia or new zealand want to own. Thats right. The kiwi dollar is this years bestperforming currencies of developed economies. They are headed in very different directions. China is the biggest export market for both countries so growth is absolutely crucial. But there is a slowdown. He said that china has great and that isd room stimulus. The economy is expected to grow 2 this year. They came up with the biggest surplus since 2011. Australia, mining is the great Growth Engine and very dependent on chinese demand. Rising rate is another reason. With manyets tomorrow economists forecasting the 2. 5 rate. The trend is for rising rates. New zealand has party begun raising rates, leaving australia behind. Upward thest first of developed economies to tighten. Of any oferformance the g10 economies, the aussies are not far behind with almost 4 . The aussie wins with a gain of 10 on january 24. For exporters, this is a big worry. Something both Prime Ministers have warned about. Some see the kiwi strengthening even more. Rallying quite steadily, especially the aussiep we aussiekiwi cross. Now we see the kiwi against the dollar begin to break the 87 level. Then we see it rally up to the historical high. The aussie and the kiwi are fighting it out again for a victory. But neither wants a strong currency or damage to exporters. Lets take a look at the latest on turkey. Claiming victory in local elections. The crackdown on social media has energized critics. Twitter doesnt have much to do with the price of fish. But it has dominated discussion about these elections, especially since it was blocked a week earlier. I dont think this was a good move as people were committee getting with each other. He did the best thing, not just for him but for other people as well. He is protecting their rights. By blocking twitter, the Prime Minister managed to deepen the divide between his supporters and his opponents. The people who add this point immensely dislike him are the ones who are mostly outraged and affected by this ban. The rest, his base, are so mesmerized and radicalized by his persona that they are ready to do anything that he wants them to do. This time around, he just wanted their vote and for them corruption nations, reportedly those advocating him and his family. Ultimately, this election came down to who turkish voters trusted more. Withhose keeping the faith twitter and youtube, what happens next could be equally epic. So much is about the election and Corruption Cases and probably there will be a move after the election to criminalize usage. Otherwise, legally, it cannot be stopped. Of course, the government could unblock twitter in line with court ruling. But the Prime Minister shows no sign of backing down. Time to look at some other stories. Fast retailing could be headed to the nyse. It is considering the big board. It trades on the nasdaq and listed in hong kong earlier this year. Panasonic may be ready to spend. The exporter will be investing nearly 10 billion over the next year. The money will be focused on auto and housing operations. Bank are sof harbin far unchanged after the hong kong debut. They will raise just shy of that half 1 billion. Chinas lenders are being squeezed by slow Economic Growth and rising bad debt. Those are the top corporate had taught headlines. The new fed boss making a keynote speech. After the break, we discuss the state of the mac and economy and look at the wider global recovery. Welcome back. We have our chairwoman, chairman, federal reserve, janet yellen, chicago. She does seem to be getting to be more her own woman. It is refreshing to have who you can measure every word. Im sure that sixmonth reference is something she wishes she never made. Im sure that is the case and the spin doctors threw up their hands in horror. Why should the chairman of the fed be this good oracle and say things as they are all the time . Maybe six months, maybe nine months, that is what it is like. There you think she did it on purpose . I dont think so. Six months and stutter. . That is really cynical. Think that a spin doctor would be terrified at that. Are alwayss tomorrows fish and chips newspaper, isnt it . We will get used to how she says things and not quite worry so much. Perhaps a personal element to the fed. I know she really cares in a work like the ordinary guy. Not just out to protect the Financial Markets completely. Fedis interested on how policy impacts everybody. She talks like a regular person even though she is a highly accomplished economist. Be a good thing or maybe a bad thing in a central banker but i think she knows exactly what is going on. Following on in the path of a number of very significant fed governors is a tough order. Do you think they know what is going on in china . Does anybody . Quite. The thing about china is to never read the figures as they are at face value. I suppose you could describe it as that. What would you look at, what would be reliable . I tend to look at major changes or obvious changes. 5ther it is 7. 5 or so and or 7. 4 is irrelevant. You know it really should be 6 . Then you have to look at that direction. What everybody seems to think and it is probably true, it is not going to be 8 . We look at things like citic securities and raising money here in hong kong and opening things up th