Fiveyear nightmare. Where now for the yen . It will strengthen the gains this year. It reaches 105. Us know what you think about these top stories. We got the opening here in hong kong about 30 minutes from now. Also in malaysia. Give us a flavor once going on out there. Japanese yen. A we areo get to 90, and far from that, then it becomes a problem. If you look at that through the prism of purchasing power parity. If you even without that would take it out to maybe a dollar per yen. The equity markets are on the way out. Market we the chinese should be getting export numbers out of the philippines soon. The 11th straight decline in exports. Out of the philippines. Slow growth in japan. The weakest in three years. Is the first full month of loan activity with the negative Interest Rate policy from the bank of japan. Making its way through the system. Let me break it down for you. Banks and automobiles leaving the game. 3. 5 and as i mentioned the automobiles should be over here. 2. 3 . The Risk Appetite seems a little bit more robust. Rishaad hasmalaysian Prime Minister faced months of political attack due to his role in a troubled state fund. Transactions. What do we know that we didnt know yesterday . These documents from a are justn committee another huge blow for the Prime Minister. They show questionable transactions that bypass to the board of directors and finance ministry. The officials were questioned they made multiple therences to article 117 of constitution which states that all matters need authorization from the Prime Minister. That thenow saying prime in his capacity as chairman of the board of advisors must be examined as he could acted as a shadow director. They also released a separate report that identified at least a 4. 2 billion unauthorized meanwhile 3. 5 billion of payments made by the company to an Abu Dhabi Company are under investigation as a Sovereign Wealth Fund they are denied ownership of that company. We are now seeing conflicting statements from both sides as the firm said they negotiated agreements with the previous heads of International Petroleum investment. Saying it was a surprising claim but neither the companys new of thise payments. All comes as authorities need to determine if some of the billions of dollars that it raised percent out inappropriately. More than 12. 8 billion of debt over six years. Using some of that to buy energy assets. With these new developments, it does look likely that the scandal will not go away anytime soon. Rishaad china has plans to tear down the walls of its gated condominiums. With goldmanup sachs. It is the latest firm to reach a settlement with u. S. Authorities. Trying to hold it accountable for the financial crisis. The u. S. Justice department has confirmed that goldman will pay 5. 1 billion due to serious misconduct over the sale of Mortgage Backed securities. Goldman will pay 2. 4 billion in plus 875 million in cash payments. Such a the fifth multibilliondollar settlement that has been reached with u. S. Banks on the back of the governments push to hold wall street more accountable for the subprime crashes. Other banks including Deutsche Bahn can remain under investigation according to people familiar with the matter. Earning season has picked up in the united states. They may be in for a rough ride this quarter. This could be the first u. S. Earning season worst u. S. Earning season since the financial crisis. Revenues tumbling 15 . Down 196me came in billion one year earlier. It was better than expected performance in the lightweight alloy products. Theyll become the least 400 more jobs. Has always been the unofficial opening act for the earning season and this could be a rough season. A lot of that drive coming through from Energy Companies alone. Pc shipments sliding to their lowest level in years. Yet another challenging year ahead for the industry that has really been staggered by changing consumer trends. Top spot with 19. 3 of firstquarter shipments. Apple coming in at number five with just over 7 . Up from 6. 4 one year earlier. Globally shipments have dropped 9. 4 . That is the sixth consecutive decline. Pc makers have or any weight in with four straight years of falling shipments. Under pressure. Customers are delaying or inpping purchases altogether favor of increasingly powerful smartphone and other mobile devices. Even when you come to look at developing markets like brazil and russia, they are losing demand there. The strong u. S. Dollar is also weighing on these shipments. Rishaad going to the company with these troubled taiwanese law firm. Launching a new handset today. One that is seen as a major make or break moment. End ofrs hope it is the a fiveyear long nightmare. If they can turn this ship around. They need some good news. They need a shot in the arm. Gotell as news that we yesterday. Will workming they with that the Australian Company northrop grumman. Revealedelse has been except that the deal was still in the early stages. A shot of encouraging news for a company that is had numerous problems over the past five years. Shares over that timeframe plummeted 93 . In taipei. Htc had 9. 2 s peak market share in smartphone systems due largely to deals with u. S. Carriers like verizon. Its market share has slipped to just about 2. 5 in 2014. Largely through what analysts say were marketing missteps. Apple and samsung have taken the heart highend market away while Chinese Companies have squeezed htc at the low end. Becomingthe risk of whose handsetola business was sold to google for nearly 10 billion and then shuffled off to lenovo for just 2. 8 billion. Or worse nokia whose handset unit was sold to microsoft and itntually microsoft shut down completely last year. Htc is pinning its hopes on the launch of the new flagship handset later today in new york city. The htc 10 based on leaked promo videos analysts say there is nothing to revolutionary about it. For an android smartphone except ande longer battery life better speakers and a thinker beveled edge. Good luck, htc. Rishaad territories in the south china sea. How it is affecting the rights of the people who depend on those waters to earn a living. At the yen and its affect on the Investment Outlook for the asiapacific market. This is trending business. Rishaad the violent surge in the ends value has japanese policymakers worried. To takeysts scrambling a look at all this. Currently we are at just below 108 for the end. Yen. Japanese yenthe naturally gains further relative to the dollar. , bullish betsts there. If this goes up a lot of people are going to get burned. He called 115 and 110 and now he says 105 will be in the cards. Because of the really aggressive easing of the monetary policy, this has now and 105. To 110 we could head towards 90 or 80. Around 100 no problem. David we are still a bit away from 180. We are back to 107 right now a critical support level. Problem but 105 not just yet. If they do intervene they will need the agreement of its counterpart. There could be some headwinds for the yen and the rally. Have a look at branch prices. Oil obviously has been on the way up. Red means the correlation is breaking down. If branch goes up, the yen goes lower. Brent goes up, the yen goes lower. Rishaad lets get more information on the end. Yen. When you make of what is been of late . With the yen christopher our customers are keeping a close eye on where it is going. I think this support is just around 107. We could see it creeping toward the 105 level. I think it will be a pretty tight range over the next few days here until we get a little more clarity from japan. I think our customers at Td Ameritrade asia are keeping a close eye on it but are more focused on u. S. Equities at this point. Rishaad im sure you have some guys looking at Japanese Equities because they move in an inverse relationship with the yen. Christopher that is totally good question. We do see an increase in some of the etfs on the japanese market. See people are trading the American Exchange traded funds. We definitely see increased opportunity for our traders. With that inverse correlation the spoke about. Rishaad lets look at the usa. Alcoa kicked off the earning season with a bit of a disappointment. People are suggesting that this set of earnings that are coming are going to be weaker than i have been recently. Perhaps the worst season since the financial crisis. Closely with the fed be looking at this . Christopher the fed will definitely be data driven. 8. 5 to 9 . Expected earnings down yearoveryear from last year. So the Federal Reserve is deftly going to keep a close eye on that. With whatin with the we saw last night with Robert Kaplan from the Federal Reserve saying we need to continue to have patience. You have two things that have the earnings downward. What looks good . Telecom and Consumer Discretionary look to be 13 and 10 on the expected upside. At t tried to drive earnings from the telecom sector. Some of those internet retailers and automobile manufacturers should push it up from the discretionary side. Rishaad poor earnings season is already priced in on the s p 500 . Christopher i think it is differently priced into a point. We were expecting that eight and a half percent downward miss on the earnings. Atlas we have some large beads on the downside. Alcoa came out last night. Their income was so bad. , you have tonings look more not just at the top line number but also the underlying fundamentals. Athink it is priced into point but if we do see some what you willwn, see is the increase in volatility in the stock market. That means an increased opportunity for our traders. Directional tight bets or to hedge their portfolios. Rishaad thank you. Haidi troops and barricades are being deployed in brazil where Congressional Committee has just voted to move forward with impeaching the president. That means the house of parliament will have its own say on the impeachment as early as next week. The brazilian currency has had a sevenmonth high on speculation that the president will be ousted. The president says impeachment would amount to a coup. David cameron has defended his tax affairs in parliament. He says he delayed a to questions about the Panama Papers due to his anger at seeing his late fathers name attached to stories about tax evasion. Sold all of his shareholdings when he became Prime Minister. To avoid any conflict of interest. David cameron since 2010i have not own any shares or any investments. The primeation of ministers Tax Information in this way is unprecedented but i think it is the right way to go. I am not suggesting that this standard should apply to all mps. The search continues for survivors of a building that collapsed in shanghai. A mother and child were pulled from the rubble. Others are trapped. Cameras caught the moment that it happened. Preliminary report blamed the builder for the loadbearing walls. It was constructed during the 1980s. One floor of were above. Rishaad demand for hedge funds may be about to take off in japan. No sensiblesays move to tokyo over its regional rivals. Ore on that when trending business returns in couple of minutes. Rishaad he joins us now from tokyo. How did the Hedge Fund Business become a bit stronger than a wasteland . Tom basically after the financial crisis a lot of hedge funds closed their doors. Grow,did not really bounceback in the same way that hong kong and singapore did. In the last four years the number of hedge funds in hong kong and singapore have basically doubled. Where is in japan it was broadly flat. Tax,ig reason they give is Corporate Tax rate in japan is about twice the level of hong kong and singapore. Red tape is another issue. , thet up a fund in japan cost of a license is about 10 times as much as it would be in hong kong and singapore. Generally the culture is less receptive to tokyo to startups and entrepreneurship than in hong kong and singapore. Rishaad what is the outlook then . Is this an industry that is dead on its feet. Is there a reform package in prospect . Tom in terms of demand it is an industry that is not dead on its feet. There is Great Potential especially for raising capital and tokyo. You have these big money who traditionally had big holdings of japanese government bonds. Rates theive interest yields on those bonds is not attractive at all. And greatbig push potential for hedge funds to raise money from japanese managers. Rishaad how was the performance of these japanese hedge funds . Tom in terms of performance theyve been doing pretty well. Abe. R Prime Minister his economics has really helped their performance. They have beaten the hong kong funds every year. Rishaad thank you for that. We will lookeak, this is thewho says biggest Investment Opportunity since walt disney bought land in florida in the 1960s. On the market opened here in hong kong and shanghai. Opening numbers are next. Rishaad japan is driving gains in asian shares. The n snapping its longest drought since 2012. Banks leading the stocks up. For the first time this month at the yen is weak but getting some respite for japanese exporters. Equities in sydney also higher. We saw stocks slip on wall street. Alcoa coming out with expected earnings. This could be the worst earnings season since the financial crisis. Alcoa profits down 92 . Ill its projections for the coming quarters. A slowing demand story out of china. Transcripts from malaysia and parliamentary hearings indicate the Prime Minister could have been involved in decisions on questionable transactions with state funds. directors and the finance ministry as well. Under questioning that all matters did need to be authorized by the Prime Minister. Some breaking news is coming through from australia. Business confidence strengthened in march. The monthly survey of those conditions jumping to 12. The highest level of Business Confidence in australia and several months. Confidence rising to six. That is double the february figure. The Service Industry remained to best performer although construction is getting to close the gap. That is a story just coming through and we will be getting some reaction on it. David not much reaction yet. It is been fairly quiet across the currency markets. We are at dollar weakness this morning. When i show you the map youll get a sense of what i mean. We are basically trading sideways. On a lot of these markets right now. The Australian Dollar is at 76 u. S. Cents. Up half of 1 . The chinese mainland, and manila, were looking at a flat session. I will tell you about loan growth in just a moment. The philippines just came out with export numbers. The 11th straight monthly decline in export growth. Down 4. 5 . The estimate was for one of 3. 2 . Back to the equity markets we are looking at gains in japan led by the banks. We also got the loan data out of japan. At some point between today and the 15th of the month we may also see china come out with on new creditrt growth. In are looking for new loans of more than 1 trillion. They came out with a statement on friday that directors and members of Senior Management of the bank have raised 800 million hong kong dollars. Buy Company Eight shares. It should help build a culture of responsibility and ownership among the staff. Something to flag. Rishaad gaining as thees yen holds a sevenday rally. The biggest gainers are banks. Despite the data showing that negative Interest Rates have pretty much failed to spur lending. What did we learn from todays numbers . Gareth bank of japan released monthly data on loans and deposits this morning. We saw that japans banks have grown leading by just 2 in march. A little disappointing. It is been sitting at an average of about 2. 5 of the last 12 months. It is the first full month since the bank of japan negative Interest Rate policy took effect on the 16th of february. A sign that the policies not having the effect that had hoped for. One analyst suggested that the cut in the rate of lending has on the back of some lending to thege Renewable Energy sector. They were lending it to the renewable sector. Hardliners are also holding off at the moment. Disappointing results from the bank of japan. Rishaad the negativen of Interest Rate policy has failed or is it too early to tell . Gareth i think it is too early to tell. The policies designed to shift the lending to the private sector. To spur the economy. Firstnot achieve that goal. We are seeing a drop quite significant way. It might take a little longer for it to pass through the borrowers. But things are not looking too good for the bank of japan now. Rishaad thank you. The reserve bank of india is building up its reserves. In attempt to shore up the rupee. Growing their stockpiles to an unprecedented level. Rupee is the asiapacific markets worstperforming currency. Product is hoping for a turnaround with lowerpriced handbags. To narrow the spread of prices between the 10 . Probably needs to kickstart growth after the lowest growth year in china and the strong dollar. Chinese conglomerate h h is buying the worlds secondbiggest airline. It will pay for the swissbased game group holdings. At a 20 premium to its friday closing price. It says it plans to do list the company if the offer is a successful one. Chinese electric carmaker has the buzz created by teslas new model three. It will focus on its image of the next two or three years. It is hoping to gain better recognition of its tec