We saw it declined last month as well. So all of this boost from por parttime jobs. Participation rate increasing to 64. 5 . The aussie dollar climbing and climbing fast. ,aidi it does beg the question these structural changes, the gig economy, the decline in fulltime. , the Interest Rate probabilities, if you look at december, expectations of a cup from the rba just over 12 , but the rba isy, still stuck between a rock and the hard place. I am glad i am not on the board. It is a difficult tightrope to walk for the rba. This is something they always talk about this in the statement and minutes, weak labor growth. That is one theme that is remaining consistent throughout, the casuals station casualization of the workforce as those parttime numbers keep going up and up and up. Shanghai and hong kong open, lets get to sophie kamaruddin, the aussie dollar and its move as well. Sophie chinese stocks adding to that picture, the shanghai composite extending wednesdays drop, down. 1 , headed for a weekly decline, but chinese stocks on course of snapping three months of losses. 1 hong kong, shares are down , halting a two day prize. The question we are posing after the fed rate hike is what will the pboc do . There Deleveraging Campaign is making headway. Today, the pboc strengthening the yuan daily fix the strongest since no camber. Since november. Goldmans sees mediumterm stability for the yuan. , closer look at the hang seng falling over 1 , Consumer Discretionary stocks falling almost 2 , and real estate on the back foot. The Hong Kong Monetary authority is urging homebuyers to consider risks after the fed rate hike. We had hong kong follow the fed when it came to that move. Steps will be taken the Property Market risks continue. They have been grappling with escalating home prices in hong kong. Certainly, yeah, yeah, quite a political and social issue definitely being grappled with by authorities in hong kong. Lets get you caught up to date with first word news. Tom mackenzie in beijing. Tom thanks. Toshiba falling after Western Digital after california courts blocked the sale of its chip unit. Toshibawants to stop from transferring their joint venture in preparation for a sale. As aartners are at odds shiva tries to raise desperately needed cash to cover a multibillion dollar writedown from its disastrous foray into the Nuclear Power business. The fed says it intends to push ahead with its rate hike program, but warns week inflation may pose a problem. Rise, and they indicated one more this year while setting up details on how they expect to shrink the fed balance sheet. Janet yellen said unwinding could begin relatively soon if the economy continues to expand is expected. This mornings reading on the cpi showed weakness in the number of categories, and certainly something we will be closely monitoring in the months ahead. We are focused on making our policy decisions on the mediumterm outlook and we will be looking carefully at incoming always, revising our outlook and policy plans as appropriate. The new zealand economy grew less than expected in the the rebound in derry was offset by falling construction. Gdp rose. 5 . The forecast was for a gain of. 7 year on year. Expanded 2. 5 , slightly below estimates. The kiwi fell moderately. Businesses expected to fall to . 65 in the next 12 months. German chancellor Angela Merkel expects the u. K. To stick to its brexit timetable even as her finance minister and french president said the eu door will remain open. To comment on the possibility of a british you turn on the issue, saying she would not speculate on any subject, especially weather brexit happens or not. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Rishaad the fed is done and dusted at least for now. The pboc boosted borrowing costs after the fed raised rates in march, but this time there is a lot of skepticism it will do the same thing. Scott, it is a different world to what we had, so does the pboc need to do anything here . We will probably find out in 10 minutes. There are arguments both ways. The argument that they will not follow is that the sevenday repo rates in the markets are higher than march, so this targeted squeeze rishaad we have a chart with regards to that. We do. The stronger yuan and sevenday repo levels will show you what happened since march. Those rates were much lower and the yuan was weaker. Both those situations are now reversed, so there is less of an imperative to stop the outflows and bolster the yuan and squeeze on the repos. You have the hand on the capital controls as well, the fixing of the yuan strongest since november, so they dont want the yuan weakening again in this fed tightening cycle. Rishaad why do Interest Rates differentials matter . It is all about capital outflows. Rishaad if you have capital controls thats right. Capital outflows will only stop so much money. If there is a stronger yield and the u. S. Or less narrow yield china is still a developing country so it needs the yield premium over the u. S. As that yield premium shrinks, the will be a natural flow of money to the u. S. , so china and needs that you premium to make sure capital doesnt head for the exits. March was the last time they did follow the fed in lockstep. So far as you can read the pboc tea leaves, what is their policy outlook or strategy, hold, titan, ease tighten, ease . They dont want to be sending to strong a signal or a weakening signal. The benchmark rates are firmly on hold. Tools,bout liquidity sevenday repos come up 14 day repos, and some of the lending measures. A couplee been tweaked of times this year largely to the upside, but now they are at the level where there is less shadow banking going on and money markets are tighter, so perhaps they are cutting down the financial risks, but still making sure money gets to businesses, customers, mortgages come into the real economy. Haidi thank you so much for that. Malcolm scott there in hong kong, the pboc not following the fed rate hike. Coming up, jobs data and a massive surprise. This time to the upside. We will speak to all strays latest employment numbers. This is bloomberg. Haidi this is Bloomberg Markets asia. I am haidi lun in sydney. Rishaad i am Rishaad Salamat in hong kong. Peach aviation says it may take until the end of this fiscal year to develop a bitcoin payment system. The airline announced in may it would accept the crypto currency , hoping to encourage customers from regional japan and overseas. We decided to step forward and do this initiative with bitcoin has a way to bring expanded choice. Considering as you mentioned the volatility, we have to do this responsibly and in an effective way, so we are now working to develop the payment system. That should be finalized by the end of this fiscal year. An auto company may the likes ofith Fiat Chrysler as it maps out a route to sell vehicles in the u. S. The Company Plans to enter the market in 2019, and the general manager says it is examining a range of options. There is already a joint venture with Fiat Chrysler in china and would not rule out cooperation in the west. A group of 20 Global Institution investors as 33 of japans Largest Companies to improve Corporate Governance i appointing independents. Six have met the target, 10 out of 33 fell shy. Get back to the jobs numbers out of australia, always confounding. The director of economics at National Australia bank joins us now. The numbers are always a surprise, but an upside this month. Not that long ago, these numbers were surprising on the factsde, so rotational of seem to be taking part. Seems to have accounted for more than three quarters of the change in employment, the part coming into the sample. That is not to say that that is more or less representative of the broader economy, but makes you where he about the headline result. Haidi it just paints a broader tion of, that casualiza the workforce, this mix between parttime and fulltime really changing. This is what im worried about, 76, a pretty tight labor market, weak inflation and wage growth, now at record lows. Why is this piece of the puzzle still missing . Its not just australia. Were talking about japan and the u. S. Seem to have a global aspect to it. That is true. In the case of australia, particularly comparing us with the u. S. , we have not seen the big decline and underemployment over there. So a little bit less of a puzzle here. The underemployment was surveyed with this result, down only. 1 from the previous quarter. Underutilization rate remains pretty high, 8. 8 or 8. 7, so a lot higher than the quoted Unemployment Rate which is now apparently 5. 5 . I think that explains some of the disconnect between an Unemployment Rate closer to the longterm natural rate, which would otherwise produce wage inflation, and what we have out wages growing still less than 2 , so a degree of genuine labor market slack. Those other points about the structural changes that are going on in the workforce as well. With the series of softer patches, voices have been suggesting the next move from the rba will tighten. That is still only 12 point 5 by the time we get to the december meeting. The new the numbers out today change your mind about what they will do . We have the survey earlier this week that was a little bit more upbeat. I think there is still a lot of disbelief in the market as to how representative that is. We saw the numbers today, which were strong. The other point is the reserve bank, even though unemployment is higher and inflation is lower, that would suggest the rba should have room to cut further. The Housing Market is quite sensitive to rates and they dont want to put another rocket underneath the australian Housing Market, so we are quite some ways off from the reserve bank considering the rate cut. The wages cycle has yet to be determined, so we can see them doing anything other than sitting on their hands do this year and next year as well. Rishaad fundamentally they cant really do anything, can they . Hiking,they will not be and they cant cut. Wed not have thought dont get feedback from businesses that rates are any impediment to invest. It is either the economy or a little bit of caution on their part, so Monetary Policy has probably done as much as you would expect, but we do have fiscal policy slanted towards expansionary with the emphasis on infrastructure spending, so that is doing something to support the economy. We can why our view is see them sitting on their hands for many months. Our phraseology is for the perceivable future. Fundamentally to really solve all strays economic ills, you have to deal with the Property Market, havent you . To do that, you probably have to somethingative no politician would deal with ultimately. It is obviously a difficult issue to deal with politically. Of demand,e forces which remained pretty strong, lined up against supply, which is fixed in the shortterm, and the measures the bank has taken to slow growth in the investable market, having some effect on the demand for investor finance, alsorobably affecting the supply side at the margin, so it is a tricky issue for the authorities to deal with. Negative hearing plays out, but obviously there is a lot of politics tied into that as well. Will it all and in tears . Tears . In david . Quick question, will it all end in tears . Working it outs at the present time. The retail market, buyers and sellers, that is working. Apartment space is an interesting one to watch. This year will be an interesting year. Tore is still quite a lot go, but we are almost halfway through this year. Is aparts are good, but it new experience comes to let see hot through this year and next year. Rishaad great to talk to you. Talking to us in light of those unemployment employment figures. Taking a second or third look, we will examine why the Monetary Policy is revising growth estimates to china once again. Haidi haidi haidi this is blog markets asia. I am haidi lun in sydney. Rishaad i am Rishaad Salamat in hong kong. Growth raising its target for china for the second time this year. 6. 7 g it will expand by this year, up from 6. 6 in april. David lipton spoke to bloomberg in beijing and said the pace of reform must pick up. Lead see the Chinese Government providing some support through fiscal policy and the way credit policy is being managed, so we think this is the right forecast. To slowpect the economy a little, but think 6. 7 is the right one. Urgencyalked about the of reforms. There is consensus amongst some economists that we have Slower Growth in the second half, but stability, and that is providing a window. How big is that window and what is the timeframe that policy makers have to an act of these reforms we have been talking about . Under way. Eforms are we would like to see reforms intensify, etc. Right, and sustained. Intensify, accelerate, and sustained. New economy sectors to support Household Services and also to the problems of credit growth that have created vulnerabilities in the corporate sector, specially the state owned enterprise sector, where borrowing has been substantial. Shouldk all of that proceed in this study way in order to reduce those boehner abilities and find new drivers reduce those vulnerabilities and find new drivers. When people look at the chinese economy coming you said there should be a plan for tackling corporate debt and that should be a priority, otherwise there would be serious problems. Are you seeing that plan put into action, or more needs to be done . See two issues. One is the Financial Sector has inn growing, growing complexity with new products and lots of interconnection. , the authorities have really begun to intensify their scrutiny, tightening financial supervision of financial institutions. Welcome andt is will contain risks in the Financial Sector. Then there is the lending from the Financial Sector to the corporations. It is very important that there be deleveraging. So far, credit growth has slowed, but is still growing and the ratio of credit to the size of the economy is still rising, and that needs to be brought under control. The destination of credit has two changed so that you dont have a situation where the companys getting the credit are really not using the money for productive purposes, so in the end they are destined to have problems of servicing their depths. Haidi that was Tom Mackenzie speaking with the imf deputy managing director david lipton. Plenty more to come in the next hour. We are continuing to follow the fed, but will the pboc tracked the central bank again this time . We will talk about what the pboc policy trajectory will be for the rest of the year, taking a look at Market Reaction and in asia as well as the fed raises rates. This is bloomberg. From our studios in new york city, this is charlie rose. Charlie we begin with politics. Attorney general Jeff Sessions appeared before the Senate Intelligence committee and he hiscalled to testify about recusal from the Russian Investigation and his role in the firing of james comey. The exchange was at times combative and some challenge his version of events and others accused him of stonewalling. I believe the American People have had it with stonewalling