The leaders of asias two biggest economies are in washington, though unlikely to meet oneonone. Obvious says his door is always open. Follow me rishaadtv and include trendingbusiness. China markets underway in 30 minutes. Quarter. Of the haidi we are ending on a strong note. The best monthly gain since 2009. Still on that extended tear from said, buildingen on 2016 highs. That sentiment seeping through to the early Asian Session. A few strong sessions of gains for south korean stocks. Singapore lower on account of the drop in oil prices, u. S. Inventory continues to build. That, some of these energy names, particularly those listed in sydney, rushing off that the klein. Origin energy, up by 5. 5 . That despite the plunge and oil. Japanese stocks seeing gains, up by. 5 for the nikkei 225, despite relative strength of the yen. The dollar continues to weekend. Take a look at the movers corporate news, banks in the spotlight as earnings come through. This is what is happening in the ta pummeled,n, taka down 20 . Bill for the recall could be 24 billion. Japanese up, a that of games, but reports the Israeli Company that cracked involvedhone has been the owner of that company helped to crack that iphone. Hai starting trading after being halted yesterday. A 25 haircut for foxconn agreed upon. Rishaad this is a drawn out pursuit of sharp. Winning a big discount on the original price, 3. 5 billion. Deal set to be signed on saturday. He managed to get a big discount. Good morning. Yeah, that month of wrangling and pushing the deal was not for nothing. Sharere paying . 88 per versus one dollar 18 1. 18 per share. Two directors out of 13 voted against it, pretty unusual sign of dissent and a japanese company. Its unlikely that banks are getting what they wanted either. Were still looking out for information. As the dust settles, the question is what is next. Same day as the announcement of reversed itsrp has operating profit into a loss, sign of challenges ahead. Rishaad thank you very much indeed. Story, have more on that looking at that throughout the program. Tweet this your thoughts at rishaadtv, include trendingbusiness. Controlled by one of chinas richest men, and other stories making headlines. Chinas the impact of slowdown is weighing. Tumbled 50 in less than a year, falling below its ipo price, prompting its parent to consider taking the unit private at a cost of 4 billion. Wanda has fallen this year. Forecastt group has overshadowingmp, over shuttin gains from its other operations. The Worlds Largest money manager is looking at cutting 400 jobs at black rock, 3 of workers. A spokesman declined to comment. Job cuts have not been finalized. The firm is looking to focus resources on strategic priorities. Thate told bloomberg expect to in the the year with a higher head count as they add staff. Larry fink had warned of cuts to two volatility in the markets. Cutas big lenders have dividend pavements in the face of rising bad loans. Bank of china president says it is a sign of the new normal as his Bank Reported weakest Profit Growth in a decade. The percentage of profits paid out as dividends by the lenders fell by 30 . Bank of chinas net income rose 0. 7 in 2015. China Construction Bank saw a rise of just 0. 1 . Slow Economic Growth and record levels of corporate debt have riven bad loans to the highest in a decade. Howaad were looking at chinese little emperors are propping up the Australian Housing market. This is on bloomberg. Com asia. The trading halt the close tab the market last august could cause chinas entry into the to be delayed. We have more on this. It has been nine months since mscis last consultation. Oughasnt exactly as they they cover their selves in glory. China wants to be in the msci global indices. They have done a number of 2014,s in november opening Shanghai Hong Kong connect, and that helped investors access the mainland market. This year, following consultations, they relaxed restrictions in february on foreign funds with qualified foreign investor license in china. They will no longer be required to apply. Those of the changes implemented, but following the Trading House last year and a Circuit Breaker mesko earlier this year, there are question the Circuit Breaker fiasco earlier this year, there are question marks. What are the remaining obstacles for china to be included in these indices . Show moreally need to inaxation in the rules trading rules and china. Allow morely need to access to the market. They also need to relax rules on trackingunds chinaasia products. The remaining hurdles. Showurse, they need to they are ready to allow greater access to the chinese mainland equity market. Rishaad thanks a lot for that. Joining us from singapore. Volatilenot the only that bet. Marketnd its riskiest outside of greece, find out why. Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. Watching thisre is trending business. I am rishaad salamat. That japanest things is the riskiest market outside of greece. He joins us now live from tokyo. That is quite a call to say japan is the most risky place to be outside of greece. , but the data speaks for itself. Interestboj posts rates to negative rates to hope that will call markets and investors, it had the opposite effect. Everybody suddenly panicked. You have wild volatility swings in every segment of the market. Becameyo market uncorrelated with the rest of the world, so for anybody holding a Global Equity portfolio, holding on to japan was creating risk in that portfolio for no good reason. They started dumping it. We started seeing outsize value, growth, momentum, so all of the the rallies we are seeing are junk rallies. That doesnt bode well for the near term. We have earnings season coming up, and that will tell people how bad is it. Rishaad also, how much of this byk is exacerbated fluctuations in the currency . Absolutely. Dislocation of Monetary Policy between Central Banks and the boj is creating a lot of market. Ty in the fx holding onto a yendenominated stock means you have to hedge, which costs you more, more volatile, riskier, and you dont have higher expectation of return on that as set than something domestic. Have been dumping stock since the beginning of the year for that reason. Rishaad that brings me to the point, ok, if it is so risky and volatile that people should be staying clear, youre in tokyo. Why are you there then . Japan is an adjusting market for us. It has been doing the same thing for long, but it is finally getting to a stage where it wants to change, and it wants to do things differently. We have a few clients here already, and they have been asking us to do more with them, be closer to them, and Start Talking to them about how you use risk tools to read the market and make sure you invest where you should be. Right, and where should you be if youre going to be anywhere then . A lot of it depends on your investment horizon. We have earnings season coming u. S. , japan,the and that will tell us whether all this quantitative easing last year, is it working or not working . Are we headed back down . We saw some bad earnings news thatschinese banks, and a problem since they are 40 of the index, and that is about to get more volatile. They want to know in japan what is the earnings impact of all this quantitative easing. You had somebody talk about sharp reversing their earnings from profit today. And thats the case ripples through other corporates, especially because last year when they announced earnings, the yen was at 120. Today, we are at 112. What is the impact on the earnings . Was the earnings last year due there fx rates are was demand for their products . Its interesting what you are alluding to. Weve had a lot of revisions, restatements, a verys corporates and previous earnings statements. You could argue that this might the abenomics working and people are becoming more transparent with the boardrooms being reshuffled. You could argue that, yes. You do see some companies trying to come clean and trying to be more transparent, and others less so. There was the whole sharpfoxconn deal that was very public. It wasnt smooth or transparent in ant we expected adoption of the new governance code and so on, so there are still pockets of corporate japan that are not changing. Pressure is deftly there on them, and we want to see more of that. Some of the Pension Funds want to insert themselves as investors. Is going to come, but it will take time. Thank you. Stories making headlines around the world. Aung san suu kyi has taken on a string of ministries in the new government, including a prime ministerial role. She will lead energy and education policy. Her longtime ally has been sworn in as president. Myanmars first civilian leader in more than five decades. The National League for democracy won a landslide victory in november, that it has been vague about its policies. Itsh korea has repeated demand that seoul, korea and washington cancel their annual work games. The Foreign Ministry says the exercises were driving things to what it described as the brink of war and announced the Nuclear Threat from the u. S. Almost 17,000 troops are involved in this years of drills, the biggest ever. North korea says they are preparing for an invasion. European courts have upheld the decision not to charge the London Police who shot and killed an innocent brazilian man more than 10 years ago. He was shot seven times on an 2005,round train in july two weeks earlier suicide bombers have killed 52 people on the citys transport system, and police say they mistakenly thought he was one of the failed bombers. His family say they are deeply disappointed in the decision. Powered by over 2400 journalist and 150 bureaus around the world, this is bloomberg news. Rishaad right, up next, keeping things competitive, talking to bloomberg about Interest Rates ppe. The ruby the ru rishaad getting straight to some breaking news on trending business. One commercial property jumping 20 after a report considering requiring all Hong Kong Listed billion u. S. Dollars, shares tumbling 50 . 21 of premarker delly and ian wanda on the bet the company will take it private. Minister sayse the country could be doing better. He believes an Interest Rate cut would help. We caught up with arun jaitley in sydney. The areas where we can do better because of several adversities, exports have gone down because global trade has shrunk. , wesecond area of concern have had two that monsoons. Have a better monsoon, we could improve. Thirdly, i think there is still an need for indias private sector to invest in a bigger way. I think these are the three challenges. Surely the low oil prices been welcome for india . Thats the reality which we cannot tonight. Lower oil prices offer a considerable amount of savings. What you feel is the right price for the ruppee . The right price for the ruppee must be decided by the market. Most Foreign Ministers and central bankers fall back on that market argument, but there must be a price where you like to see it. Politically, everybody was to see a stronger currency. Competitiveas to be the ruppee has to be competitive. You feel pressure to keep it competitive . I think there are pressure from exports to keep it competitive, and politics to keep it stronger. The r. B. I. Next week will decide on rates. Well below 6 . How much would a rate cut help the Indian Economy . , wenterest rates are high have had 125 basis cuts over the last year or so. Only half of it has been transmitted to the banks. The banks are in a position to transmit more, could t transmit more. It would be helpful. You need a more competitive cost of capital. Rishaad arun jaitley talking to paul and. Turbulence,urrency a downdraft for chinese airlines. The market opened in hong kong and shanghai. Opening numbers for you right after this break. Plus, keeping tabs on one the commercial. Wandampany jump on commercial. The company jumping 21 , the most since its trading debut, wanda group considering privatizing the company. , thee looking at that price could be as much as 48 a share. Details right after this. Rishaad a look at our top story, asiapacific stocks heading for their biggest gain in seven years. Material and consumer shares among those leading the gains. The regional benchmark up 9 in march, but still down 2 for the year so far. Jumpingn dalian wanda 21 on the news that the parent is considering taking the unit private. Group has forecasted a fall in sales this year, a slump in its main real estate business overshadowing games from entertainment options. Giving up initial gains as foxconn sealed its takeover deal. They will pay 3 billion for a 66 percent stake, a discount of 900 million from the original agreement forged back in february. Values, the common new team will try their best to move forward together. Jointl enhance our operation and turn shark into a leader of the Global Electronics industry. Turn sharp into a leader of the Global Electronics industry. Juliette some conservative gains compared to the region. Flat the hang seng pretty at the moment. Elsewhere, we are seeing discontinuation of that yellen speech. Extending on 2016 highs, coming through in the Asian Session ends terms of sentiment. Strong gains in sydney, buying oil, energy, resources, despite a collapse decline in oil prices overnight. U. S. Inventory continuing to build. Raising fears of oversupply situation continuing to take hold. Up, still off session brushing off the story of yen strength, dollar weakness. Weakness fromf butapore, down 7 10 of 1 , shanghai up 3 10 of 1 . Extending on that rally we saw yesterday. Chinasls in focus as big five lenders continue to report earnings this week. It has been the same kind of trend. Communications reporting upside yesterday, upside surprise, and we saw that again with bank of china and icbc. Bank of china up seven tons of 1 . Icbc up by half a percent, but still a beat. Investors are brushing aside the fact that we are still seeing that bad loan coverage ratio continuing to fall. It is still above the regulatory minimum of 150 come up at regulators will likely have to bring that down, otherwise these banks will not be able to pay a dividend. The stellar out performer of the session, of 20 in premarket, wanda commercial property, on groupws that dalian wanda may take this company private. Is down 50 since june last year. We are seeing a pop in that stock. Asia listing suggesting that if they get that shanghai listing that will be enough for their financing needs. Rishaad were having a look at chinas state owned airlines, suffering combined Foreign Exchange losses of 2. 5 billion less the year, all of this with the surprise yuan depreciation and august. Tom mackenzie with me now having a look at these individual carriers. We are talking about the top three players and chinas airline sector, air china, china southern, chinese. They dont hedge against oil volatility. That rosy picture has been volatility,the fx the devaluation, 4. 5 down in august. That is where this thing has been for them, and these are companies that buy their aircraft in u. S. Dollars, spent about 100 billion on ordering new aircraft. Rishaad they are continuing to pay for them. That,yve done well on but offset by this fx devaluation. Rishaad what are the airlines saying . Their passenger numbers are rising, a growth sector. Other airlines, particularly lowcost and budget sector, as competition. They have been cutting back on their u. S. Dollar debt. Last year, those lines were cut. That should play into a more profitable picture Going Forward as they reduce that debt level. China southern slashed theres by 40 by the end of the year. Rishaad what are people saying about these carriers. Where do we go from here . Most analysts still see a positive outlook for these airlines, the sector, china as a whole. It is the Worlds Largest travel market. Rishaad a cant help but the with 1. 4 billion people. The Central Government shifting away from manufacturing , a positive for the sector. They know passenger numbers are growing, but competition as well. What happens to the renminbi Going Forward will be at the top of their agenda. Rishaad thanks a lot for that. Years of pursuit and five weeks of lastminute negotiations, foxconn ceiling p, paying with shar 3. 5 billion for a 66 stake, a discount of 900 million from the original agreement in february. The foxconn chairman has been chasing sharp since 2012. He was a transform foxconn into a company that also sells electronics. Ass has come as a Shock Electronics was japan in many ways for years. Great to see you. What was your reaction to this . Think the overall reaction is in corporate japan . It is the first time. It is a bit of a culture shock. Foxconnhink about it, isnt the leading edge of japan anymore. The perception is that it is so. If you look at domestic production, it is less than half than 15 years ago. It is not the leading edge. Jab about time we had a new in the arm with new management. We tend to have with a chorus line management, where everybody ask the same. Acts the same. Rishaad arent there just too many players in japan . There are so many people in Consumer Electronics there. Absolutely. There are far too many players, and players doing the same thing. They are not specializing at what they are good at. Everybody once to do everything for everyone. This has to change. Conglomerates really have to focus more on scrap and build type of process. Bang on you have been about it for years. It is a bit of a cultural issues , very difficult for a Foreign Company to come in and take over a japanese company. Are these walls coming down . It is coming dow