Of another star, prince. Paul mccartney called him a creative giant. Do let us know what you think of our top stories. China and hong kong markets getting underway in about half an hour. A gauge of what is going on with your money today. Money going down a little today. Not a great end to the trading week. Times down,rait malaysia with a similar loss, and taiwan. Faring better than the open, down a third of 1 . The yen unchanged at the moment, although stronger in the early session. And Mitsubishi Motors are the two worst performers on the. Ikkei 225 asx 20 hit hard by the downturn. The new Zealand Market also weaker to round out the trading week, down a third of 1 . Trim back thell weekly gain we had seen on the regional index, currently down a third of 1 before china and hong kong come online. A few stocks we want to watch in up region today, iron ore 8. 8 , the secondbiggest gain ever. Atlas iron is very strong on that. It wasalysts were saying doing quite well, so a little overbought. Bhp billiton down by 2 . Looking like a bit of a downbeat day across the region today. You a lot for that. Mitsubishi motors losing 40 of its market value in two days, shares plunging for a third day because of the fuel economy cheating scandal. Lets find out whats going on. Mitsubishi shares are nosediving today after finally starting to trade. Not tradedas yesterday because nobody wanted to buy, while everyone else wanted to sell. Instead, the Tokyo Stock Exchange had to set a closing price, a 20 drop from wednesday, when it already lost 15 . Has now erased more than 40 of its value since the scandal broke, and is worth 4. 5 billion. Mitsubishi admitted to cheating japan by0 minicars in understating how much air and tire resistance they encounter on the road, but now we are hearing from a local newspaper that this issue may include more mitsubishi models, that is on top of the models we already know about. Japans transport Ministry Said it is continuing its investigation of mitsubishi and will inspect its plants today as well. Authorities have said that mitsubishi should consider buying back affected cars. The government is also reportedly considering changing its field economy tests for new cars. Mitsubishi has said that its testing methods for passenger cars has not complied with japanese standard since 2002. Nissan, who got about three quarters of those tainted cars, is now said to be considering producing its own minicars, having a big impact on mitsubishis bottom line. Says Mitsubishi Motors wont be releasing its 2016 fullyear forecast. Right, we will have a look at that story for you in the show. We want your opinion. Tweet us at rishaadtv, and include trendingbusiness. Japan post shipping 2. 5 trillion of its portfolio to riskier assets to boost profitability. The bank of japans negative. Ate policy is shrinking of where we are with japan post and what it is doing here. Good morning. To the new ceo of the Japan Post Holding company, formerly the ceo of the banking unit, and he told us that with 0. 1 ,e Interest Rates, the impact on the bank is manageable. If it goes further, it might start to hurt more. He says the real key was in adjusting their investment strategy. Over ¥200as just trillion and assets, and 40 is in japanese government bonds, which are increasingly affected by negative yields. 50 of the market returns negative yields now. They are looking at shifting and nottheir money putting it back into japanese bonds and investing in things like private equity. He also spoke about Real Estate Investment trusts and infrastructure funds as well. Rishaad the government still has that stake in japan post. Any idea of the noises out of tokyo and what they will do . Are they likely to sell it down more . Initially listed the company in november last year, they sold 11 of the company, and in the Holding Company went on to sell 11 of each of its units. Endin the game is fit game is 50 of the company. The lockout period is set to expire next month. Was very cory on whether the exact schedule for that, citing market concerns. Coy on whether the exact schedule for that, citing market concerns. Rishaad japan posts, where does it put its pension money . Lets look at some other stories we are watching. The one part of sony that was doing well just is not anymore. David we are in the middle of the turnaround plan. Shares are doing this at the moment, opening 3 lower. We have mostly disappointing guidance from the company, so shares are down 1. 8 over two days. The numbers look like this. Changes fromg at the last set of forecasts three months ago, better sales, profits down. The final report comes out at the end of this month. Changes,ns behind the have a look at the three. The second one is core business. First and third, something outside the control of sony. Also, a sharp drop in Interest Rates leading to an adverse impact. Analysts are still bullish on the stock, not necessarily the same view on the business itself. Anr function on the bloomberg. , a 25 pop from where we are at the moment. Lets have a look at google and alphabet. Out with earnings overnight, hitting a speed bump. The company missed firstquarter sales, firstquarter profit, blaming weak growth in ad sales and thinner profit margins. The cfo was talking with analysts, and she is saying that there are certain costs associated with revenue, variable costs, and they have been going up as a result of broad changes in the business and environment. The result, she says, is more revenue, but at a lower margin. Keep in mind that we are seeing some pressure in the after hours. The company is still the worlds most second viable, five to 20 billion. 520 lets have a look at the macro space. This, roughly and change from yesterday. There is the speed bump right there. That happened during the mariocement, mr. Draghi indicating the need to remain low or lower. He also said they did not discuss any additional measures. He says policies have been working and defended negative rates, saying there has been no sign that it is hurting earnings. He also weighed in on the issue of brexit. We do expect the continuation of market volatility, certainly until the referendum. I dont want to speculate about the outcome of the referendum, probably even after the referendum. Is it enough to endanger the economic recovery in the euro area . The assessment of our staff is that the risk of this happening is limited. That could come in the form of tighter monetary conditions. Ift to add, he said that conditions dont tighten enough to alter their outlook, then the ecb is ready to act with all the tools and instruments it has. Rishaad thanks, david. On our website, the first flight for japans stealth jet. Have a look at it. Bloomberg. Com asia. China hasd out what to do to get asia included on a local benchmark and how that will affect local investors. That is coming up in about 35 minutes. Coming up next, absolute onerns, we find out where person is looking for zero correlation with equity markets. We will be back in just a couple of minutes. This is trending business. A stronger yen weighing on japanese shares. It is time to consider the funds with absolute return characteristics. Family Office Research management, joining us from sydney. Great to see you. Lets start off with what people are asking. You were telling me that we have political risks, but lets start off with china debt. Why are people that concern . People in this part of the world are very sensitive about the commodity trade with australia and china, so theyre asking about the potential for a hard landing. What we keep coming back to is debt levels have risen sharply, weight too high and china, but the only real way to look at it is to dovetail the chinese fiveyear plan with what they are doing with the debt position. , which areanies allowed to default on bonds overseas, but then we see China RailwayMaterials Corporation not defaulting, see think to yourself, what is it about China Railway that is protected, and obviously it is the fact that it is critical to the chinese plan, and the areas where they are wanting to do fast, they are allowed to default wanting to ivest, they are allowed to default. In the next year or two, we will see a lot more defaults on chinese debt, some of them u. S. Dollar denominated. Rishaad quite small compared to what we have held indigenously, because it is debt where the burden is on the chinese people, and the way the country is set up, sure, there are some systemic risks when it comes to commodities, but overall it is a relatively closed economy, so people should not worry as much as they are. That could be a view. Yes, and i take that point. We did actually hold some bonds in the Major Chinese banks for clients, and we sold out of them entirely a few months ago. I prefer to stand back at this point in time. Being declared are still low, but the number is rising, and when the bad debt direction of disclosures is upward, that can have a big impact on prices, even if that number is not monumental. Is one thing of concern with your clients, High Net Worth individuals. Political to the risks, the u. S. Election, and a , britain leaving the European Union with that referendum on june 23. Is this now looming large in peoples minds . Is very large in peoples minds, especially those in the u k and on the continent. They are speaking about it in every meeting, and it looks to me like the lead up to the june 23 vote is going to be the time of volatility, not the postelection outcome. If the election action delivers exit, that will be followed by trade pacts one at a time and a reconstruction of the relationships. Lead up to about the that, and then the case of the u. S. Political scene, im worried about the lead up to the republican convention. The first three weeks of july before we get to that first ballot. Transpacificy is trade, and if the agreement and various features are in question, then that is a bad outlook for Global Equity markets. Areaad no doubt you watching japan with some interest as well. Bank of japan expected to go further into negative interest rate. ,r. Kuroda is doing the work but any further move towards negative rates might show this policy is not working. Shinzo abe sitting there. While tokyong burns . One of the things we have to watch closely is the degree of Japanese Investment outside of japan, and to what extent that speeds up or diversifies. In australia, we will see a number of acquisitions of austrian assets by Japanese Companies and greater trade alliances being built. That is positive for japan, because that gold in japan has to be invested someplace else besides bond rates that are negative. Japan will have to cut rates. If it happens quickly, we will see a moderation. Either way, the direction is slightly or greatly accommodative, one of the other or the other. Rishaad thank you there. Joining us from sydney. The stories making headlines around the world. Of personal data of millions voters in the philippines are Still Available after the hacking of the election commission. Personal details have been displayed, allowing identity thieves to access passport information, fingerprints, and more. A person has been arrested, and there is a report he has admitted to compromising the attacks. Suspended by the world doping watchdog, the suspension takes place immediately and prevents the lab from carrying out activities for four months. The lab has been told to take remedial steps identified by the disciplinary committee. The lab has 21 days to appeal. A mission to fly around the world powered by the sun is under again. Solar impulse left hawaii bound for california. It has been stranded since last july with battery problems. The Marathon Mission began in march of last year and has visited numerous countries. It will cross the atlantic, heading back to abu dhabi. Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. Signs, up next, ominous chinese stocks missing out on , butecent global uptick investors there have plenty else to worry about. The details are coming up next on trending business. Rishaad where counting down to the open of hong kong and china. 8 10 of 1 , down following on what we have seen in this part of the world. The shanghai composite falling by more than 4 this week. Of 93 globalorst benchmarks, the steepest decline in almost two months. Its not just the stock markets down in the dumps, some ominous charts as well to show us. To get theg weekend started like a scary chart out of china. The markets extending declines on this last trading day of the week. We had a 4. 5 decline on wednesday. When youre talking about asia, that is not such a huge moves. The is more about diversions story, china not partaking in the global risk rally party we have been seeing. Had commodities and equities climbed higher, and the Chinese Market in this slumps. It remains the worst performing market in all the markets this world, down 12 in the first quarter. Seeing this diversion given that the data out of china has been fairly good, gdp, investor data, better than expected. Markets are questioning the veracity of this data. If you do believe the data, at what cost do these growth spurts and i want to show you an example. When the chinese economy should be deleveraging, we are seeing record highs when it comes to credit expansion. Of new creditlars added in the first quarter. We have also seen the concern over corporate defaults rise as well, seven companies missing payments. That is already the 2015 tally. Quickly, the yuan, a lot of people saying it has been stable. It has been stable against the u. S. Dollar. Against that basket of it is trading at its lowest level since november 2014, a 17 month low for the chinese currency. Right, looking at the forecast for new energy, next. You shouldnt have to go far to get the help youre looking for. Thats why at xfinity were opening up more stores closer to you. Where you can use all of our latest products and technology. And find out how to get the most out of your service. So when you get home, all you have to do is enjoy it. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Rishaad a look at our top stories, asian equities on the way down. This is after disappointing corporate results, which included microsoft, alphabet, and sony. The yen holding on to recent gains. Thursdayse up after 2 drop, a third weekly rise. More than motors lost 40 of its market value and the fallout from its fuel efficiency scandal. Government investigators raided its offices on thursday. Nissan said it made that mitsubishi as a supplier of many cars. Hitting central bank back at german critics and frankfurt. He says the more they undermined his stimulus, the more he will have to deliver. The low rate policies have been criticized, and the german finance minister says they are contributing to the rise of antieuro populism. Indeed, a lot to chew on. I look at how investors in this part of the world are currently. A lot ofeen quite selling. Only two bank stocks higher at the moment as the hang seng is down. That oil price in new york trimmed its gains. The shanghai market lower by a tense of 1 , underperforming the region this week. Weve also seen the Philippines Open flat. Extending losses as the yen strengthens against the dollar. The kospi has been steady, down a third of 1 . By crude00 being hit prices in new york, down half a percent. Down half ofindex a percent, trimming its loss to 1 . There is only one sector higher on that index, and that is financials. I want to show you some stocks we are watching in hong kong. Isas thirdlargest insurer up 3 , but had jumped 4 on the open, its biggest since december. Its new Business Value jump 36 in the first quarter, beating analysts estimates. China Eastern Airlines also a solid performer. And atlas iron in australia has ended its share holder meeting to discuss restructuring. It is up 9 . Those solid gainers, a downbeat day in the region. Lossesseeing those continue on the open in hong kong and in china, similar to what we saw on Global Equities on thursday. Rishaad Mitsubishi Motors plunging again, 12 this time, having lost a third of its value. A 40 fall back so far. Fallout from this few efficiency scandal is now enormous. There are signs it will get bigger. Onlytsubishi is not the one. We have been talking about volkswagen for a while. The regulators are clamping down , rightfully so, because the emission standards are becoming more stringent. Rishaad they did not even ,onform to current standards but they conform to 2000 three standards. 2003 standards. Already many cars are fuelefficient compared to the rest of the fleet, so they are back to 2003 standards, but at the end of the day, they are still fuelefficient and him it less pollutants. Rishaad what sort of penalties could they suffer. We have been discussing this. Areother side, if they doing this too many cars, what about other models . The investigation is still ongoing, ok . We do have some preliminary estimates we came up with. Ivehicles were given a tax break of two percentage points. Basically, mitsubishi could be on the hook to repay those tax credits of around 200 million. Again, those are early figures. There may be other penalties involved, other vehicles involved. We will have to see as it plays out. Rishaad thank you very much indeed. Right, softbank investors are calling for an investigation, questioning the track record for their number two. What are they looking for here . Hi. The Investor Group has cal