The Falling Crude prices, we are seeing very strong gains in sydney. Strong gains are coming through from singapore, malaysia, interestingly malaysia being the net oil exporter. Weve had comments coming through from the saudi Deputy Deputy prince of saying that if iran does not do anything, they will not do anything either in terms of getting supply free. On the downside, the energy sector, resources down. Weve got word parsons down by 2. 5 . Bhp is downon close to 2 . Resorts is down 1 . We are seeing returns in decline. The leading decline is in the new york session. We are expected to see a downside when it comes to these exporters from the back of that did a lot of analysts that. Should the yen hang onto these gains and we dollar continue to maas is down by 5 , toyota by 2. 5 , nissan by 2. 5 . A double whammy for the currency, as the Sales Numbers come through from the u. S. Market. Rishaad the oil market is full after saudi arabia said that it would only freeze production if iran did. Japan also saw its first weekly thesee after it saw comments coming from saudi arabia. Why did they spoke the market so much . Spook the market so much . Arabia andsaudi other producers Start Talking about the freeze, they have been a little bit questionable about it. These latest comments are adding ammo. Iran is just coming off of years of sanctions lifted in january. They have boosted Oil Protection to 3. 2 billion barrels per day. They are still still have a billion barrels shy. These comments last week from salman show that this oversupply is not going to be magically erased overnight. Rishaad absolutely. Theres other news out of saudi arabia. This could be the big one, with the country saying that they are sell a portion of the stateowned oil company. This is the end of the is this the end of the oil age . Dan it might be. They are selling a little bit less than 5 of the company, but this is the Biggest Company in the world, containing 270 billion barrels of oil reserves. At the current rate they are pumping, 73 years worth. They have used oil proceeds to and keepocial Services Life as good as it has been. At hisman is looking lifetime and saying, you know, one day sooner than later, we will run out of being able to just rely on these oil fields. They are willing to make a 2 and can Sovereign Fund then use these dividends to prop the country up. Rishaad a very much. Thank you very much. Looking at a conundrum for Glenn Stephens and the reserve bank there. The dollar decline is why traders are causing a rate cut in australia even as the countrys growth outperforms most developed economies in the last year. The currency has raised nearly 30 since last year. It looks like even the boj governors negative rate policy has not convinced businesses that sustained rate prices will hold. The Japanese Company cut Inflation Expectations for the next five years. Boj is according to a report from march. A year from now, inflation is expected to be 0. 8 . Got hisillionaire hand on the prize after a fouryear pursuit. Has saidman of foxconn innovation and leadership. Tokyo,are surging in rish. Rishaad indeed, looking at the sharp shares, it goes along with what is going on the foxconn. Company has seen its shares surge, im talking at the sharp shares. It has been a long, hard chase, but it isnt over, is it . The money is literally in a bank. Foxconn put out ¥100 billion deposit on march 31. Issueave until october 2 400 million new shares that will give foxconn a controlling stake in the company. Attention is increasingly turning toward the turnaround for sharp. Rishaad he has got a job to do, hasnt he . He has a massive list of things to get right. It seems that sealing the deal might be the easy part . He likes to talk about the benefits of hardship, but he has his job cut out for him. Shop reversed and operating profit last week. Has aactually technological edge with its ecotechnology, but has struggled to capitalize. With the Consumer Electronics brand in the solar business, they have struggled to know what to do. Rishaad now, what can we expect from these two companies, now . Still looking at the outstanding issues. The major one being what will happen to the 200 billion of preferred shares currently owned by the bank. When we last heard, foxconn was going to buy half of it. That is something investors want to know more about. We will look at the sharp burning results later this month , see how big of a challenge they have ahead of them. Rishaad thank you very much, pavel. Tokyo sealing the deal. Coming up later in the show, apples push to flood india with cheap phones is meeting a wall of resistance. In china, the latest and usas recovery, but is it too soon to salivate . Celebrate . Rishaad this puts and out the success of the proposed deal between major producers. But spring and jonathan from sin the from sydney. What does this mean. We knew that they were reluctant syrianse up, but unless ravens had come along, but they said they wouldnt. Why has this disturb the market so much . Disturbed the market. Jonathan the market is saying that if iran can produce for five dollars a barrel, why shouldnt she . I do expect to give this some time. These countries that are certainly looking at financial , there is potential for a freeze. Are you looking at a price range for oil between 35 and 50 per barrel . Absolutely jonathan absolutely. If the price of oil is down near that he was 35 or even lower than that, then you would see a lot more words, a lot more harsh words being said. I think the oil market is pretty much in a range. It is weighing on the downside of 35 and we dont want to see in above 50, because we will get more from the u. S. That is how it is for some time with oil. Rishaad lets move to the other elements of the commodities complex. Youre saying this is turning into a buyers market excuse me, sellers market from being buyers market. When we seeing here with iron ore . Numbers weome of the are seeing, particularly out of the u. S. And out of china are encouraging. Remember, in china they are not just going to stop stimulus. Theyre looking to reduce capacity, and when you see the combination of the 2, you get a , even givenron ore the amount of supply coming on the market, will have a good spike. We like to think that we will in place fora low iron ore, and given china, i think we will gravitate to the top side. We could either see more of a sellers market emerge over time. Rishaad oil and iron. Do we see a general turnaround when it comes to commodities, particularly the basic resources . Jonathan i think so. Following the u. S. Dollar, how the market is reacting to the politics and the fed, how they see it, i think the turnaround in commodities is going to be based on what the u. S. Dollar does. Things are being bearish. We are seeing spikes in the commodities. I get a sense that the market is saying, if it is going to stay in this environment for some time, why are we in the u. S. Dollar, should we be bringing investments back home . I think the u. S. Dollar index has been on that 5070 level for some time. We could see a fell upon the dollar that could support the commodity sector. Rishaad and gold, naturally . Jonathan its been a bit boring. The reasons to buy gold have been hard. We have obviously seen a good rally. 1270 now. I see the dollar under pressure, ic gold spike quite readily. A dollar for to be gold. Well see that price go back up to 1270. Those dovish terms are perhaps official policy. Jonathan thats the hard thing, you have to find a captain in this respect. If thats whats going to happen, thats what going to happen. I think obviously, people really do want to save. You look at inflation, and its moving, but not in a drastic way. At the end of the day, whatever comes out of the fed, it will be prolonged in any case. I think the time has been set for this dovish period. You really will start to see Significant Growth on the economic side and the inflation and that stance will actually change. Rishaad janet yellen is preoccupied with what happens in the Employment Situation and has good news with that on friday. Report showingbs how the jobs had been created, but actually wage growth numbers, which are pretty good. Jonathan yes. I think that is the positive thing. When youre seeing the economy start to respond, then you do start to see things moved to the top side. Moved to the top side. See that inflationary since the fed wanted, we are down below the forecasted levels. , the wage growth is one aspect, and if we see a trend develop, that will be a trend that yellen will like. As a result, she might look at a little bit of a dovish turn. At the moment, it is important to keep the stimulus and the economy growing. Thats what we want to see. Rishaad thank you, jonathan. Jonathan there in sydney. Lets look at the stories making headlines around the world. Investigative journalists are saying a new data leak reveals were leaders and politicians and celebrities hiding money in shadow companies. This is the result of a panamanian law firm, which denies fostering illegal acts. Protect theey would dignity of vladimir putin, after claimed to Million Dollars in transactions are related to his associates. More pieces from the missing Malaysia Airline has potentially wash up in washed up in the indian ocean. 2 parts found in mozambique are almost certainly 370. Nmh the plane disappeared almost two years ago. About 800 passengers in our apart from kuala lumpur, less than 20 of the usual capacity. Discontinuing its flights until next year to brussels. Youre watching bloomberg news. Rishaad coming up, the Philippine Bank heist investigation is shifting its focus. Nila after ao ma very short break. Rishaad now, having a look at the Philippine Senate situation, and 18 million i were highest is shifting focus on how the money was laundered. What has happened to the money . What is the latest . Good morning. Based on the testimony collected, youre looking at around 61 million of this money going to the casino system. 30 million of that has been spent. Official to statements, 31. 8 million can be seen as retrievable, if traced to local corporations, and if the courts were to act swiftly. Overall ok, what is the action from the reaction from the investigators . Well, first of all, the Banking System sorof the phillippines has been declared sound. Is note saying this going to affect the Banking System in general, but it is a question of perception and how investors are looking at regulatory systems in the philippines. That is one thing that investigators are looking at, and others in looking at how the elections are going to happen. A lot of reform needs to be placed together within these next few months to avoid further scrutiny and backlash from the investor community. Rishaad honestly could the ate blueribbon community the senate blueribbon community will be meeting tuesday. What will they be talking about . What the Senate Hearings are about are supposed to be in aid of legislation. The council of the philippines is submitting a set of recommendations as part of legislation that hopefully this or the next congress will file when they resume session in july. There has been a set of sessions on lifting the bank secrecy law, one of the most restrictive in the world. Oakley that will close loopholes in terms of making these incidents happen again in the philippines. Rishaad thank you very much. Joining us there from btv in the philippines, as we have reported, we have a massive document leak from the Law Firm Mossack Fonseca about World Leaders, corporations, and celebrities using offshore banks. This comes from so many leaders. Former World Leaders and were leaders. 128 Public Officials and politicians. This has been a yearlong investigation, and it has been a long time in the making. Onnamapapers is trending twitter. 11 million documents have been released in this data leak. A lot of Investigative Journalism went into this. One of the pieces of information that came out was something about ties to vladimir putin. Edward snowden is currently in there, seeking refuge but this refers to the Panama Papers showing there were at of transactions with ties to russian president vladimir putin. Thekremlin accused International Consortium of investigative journalists which published the report of a information attack on putins wealth. Says thesekesman questions have been asked hundreds of times and answered hundreds of times. Nothing to say there on these allegations from the icy ij. From the icij. Minister, note the president , but the prime , says that iceland has not been positively per trade since the mighty ducks two. He has not resigned yet, but there have been calls for him to do so. Definitely, a lot of interest in social media on this. Rishaad mcgivern much. Up next, chinas ambitious new plan for six of their banks bad debt problems. We have the details, coming up. A look at our top stories, asiapacific stocks starting the week on the up. Regional benchmarks stocksing, japanese shopping a fourday slide. Oil a racing its gains for the year, saudi arabia saying it will only cap production if iran and others follow pursuit. Follow suit. Iran has ruled out a Production Cut for the time being. Foxconnares has chairman terry glock completed the 3. 5 billion bill. They revealed liabilities that may show an operating loss. ,harp having a breather hourlong lunch break in tokyo. We have quite a bit of action elsewhere despite china markets being closed for the holiday. , risk onng good gains attitude in asia despite crude prices retreating, as well as a number of pieces of data being to the downside. Retail sales in australia flat against expectations of again. Sydney stocks up a 7 10 of 1 . Weakness in the dollar ahead of the rba decision. The rate cut decision still on the table despite the aussie dollar strength. Look elsewhere, nikkei 225 up as it takes a break. Percent, up by half a malaysia up by 4 10 of 1 , despite oil price retreat we have seen. The saudi deputy prints saying that if iran does not come to the table, saudi arabia wont either. The aussie dollar extending declines now. The retail sales number down. The yeno seeing strength story continued to play out. 111 handle, ag at twoweek high against the u. S. Dollar, certainly weighing on currencies and stocks trading in tokyo. Analysts saying the yen strength firstwill be a conundrum of Japan Companies as they go into Earnings Seasons for the next quarter. Rishaad thank you. Generator power granted three licenses to build its giant coal mine in central queensland. The expectation is 11 billion tons of coal over its lifetime, grading thousands of jobs. Environmentalists are not happy with this. Paul is in sydney. It is a troubled history, a troubled project, and it is going ahead it seems. It has been going ahead through all the difficulties. There are 160 environmental ,onditions attached to the mine also beset with a few financial problems due to the price of coal, bureaucratic issues, and geography challenging, too. I have been out to the area where this mind will be built. It is in the middle of nowhere. That, 600 kilometer rail line will need to be constructed to get the coal to point. The coal terminal will require dredging as well. Createdated 5000 jobs at the peak of construction. They say they will commence construction in 2017. Rishaad given all the trouble and expense involved in building coale have an area where is cheap. How does this mine make money . Paul that is the question. , wellton out of newcastle off 2011 highs, but they use the price asiews the coal temporary. That answers the price question. The environmental questions continue to linger even with all the conditions imposed. They are concerned about the potential impact of waterintense coal mining on the water table, in environmentalists concerned about the dredging of abbott point, very close to the Great Barrier reef, so vigorously opposed as well. The plan to continue with construction in 2017 eight still be on the optimistic side. We will have to wait and see. Rishaad thanks for that. China may allow banks to convert the equivalent of 150 billion of bad loans into equity. This coming a report from a business data provider in china. Tom mackenzie is with me now. How is this working . We are getting some insight into the steps the government may take, and what theyre looking at is taking those bad loans from state owned enterprises and converting that into equity. What were concerns around that might mean for the Balance Sheets of the banks. The process is likely to spend three years, and it is our first inside into what the government is thinking about the economy after the National Peoples congress. Rishaad you are talking about bad debt becoming bad equity . Tom weve heard voices from the chinese bank itself. Concern thating this is going to shift one problem to another. They want to make sure there is a cap on these bad loans to equity swaps. Economists say you could take these bad loans, give it to the banks, cleaning up the Balance Sheets for state owned enterprises and makes accessing credit easier, and they go back to the banks to get credit at a better rate with some of those bad loans shifted off their Balance Sheets, creating a cycle of debt that so many are concerned about in the corporate sector in china. Rishaad this is what you are telling me earlier about the ceo of the biggest bank in china, his salary is. 3 0. 3 of jamie dimon 27 million pay package. Rishaad that does include a bonus. Of 85,000 for the chairman cut, and he saw his salary 72 last year. Rishaad why . Tom the government is trying to back off on ceo pay. They are worried about inequality and sending out the right s