The bedding is on for an supplyl rally due to disruptions in canada and nigeria. President obama in asia, looking for Stronger Economic security s influenceith china in vietnam. Let us know what you think. Follow me on twitter rishaadtv and use trendingbusiness. Weve seen some swings between gains and losses, not a lot of conviction in this market. We had a little disappointment over the weekend with that failure of consensus from that g7 meeting of finance ministers and central bankers. We are waiting to hear from janet yellen. Looking for signals as to whether the fed will be going in june. Also, what the bank of japan will do. There is speculation that they could buy more bts next month. Gains, deeperier in the red. Japanese stocks extending losses. The yen is not doing much. That trade data certainly weighing on japanese equities. Taiwan driven higher by apple suppliers. Throughkness coming from Southeast Asia as the likelihood the fed will be , earlierates come july than what markets have been pricing in. Numbers in a few hours time, so will be watching out for that. The kospi is flat at the moment. Oil with some declines. Iran not joining in on that freeze. Oil down by 4. 5 , the top the kleiner on the asx 200. Weakness in japan, off by 3 10 of 1 . Also some weakness when it comes to the iron ore miners. Bh billiton down. Theres despite the fact has been a retracement in the Iron Ore Price following the plunge we saw last week. Taiwan markets, possibly apple had put through in order for 78 million iphones from suppliers. We are looking into the details of that report, but we are seeing that positive effect when it comes to some of these suppliers and assemblers of iphone. 1. 13 , catcher makes casings for iphones, up 2. 6 . They said they would be doing a glass front for the iphone. Making bodies for the iphone, upside in the session today. A quick look at that commodities space. At the moment, a little downside and oil. , not a lot of consensus on where it goes. One part suggest we are to bearish, another saying it will be hard for japanese policymakers to curb any further gains in the yen given the political sensitivities ahead of that u. S. Election. Moment, strengthening to bit. Rishaad getting back to exports out of japan, down the seventh consecutive month. Lower,howing imports trade surplus of almost 7. 5 billion. What of these numbers say about economics . Yvonne we spoke with dr. Schiller during the g7. He said two years ago there was an initial euphoria when it came we see aics, and now stronger yen up 9 and exports have declined for the past seven straight months. Shipment figure was quite disappointing, down 10. 1 for april, which is worse than expected. We saw exports to the u. S. As well as china falling. Exports to china falling 7. 6 . We did see some supply constraints during april after those earthquakes. That might have restricted or effected some shipments when he came to car parts and electronics. It was the drop in oil prices that dampened imports even more, 23. 3 down in imports for the month of april. Oft leaves a trade surplus 7. 5 billion dollars, bigger surplus and we saw in march. That is nearly 2. 5 billion dollars more than what economists were expecting. This goes to show the pressure that the Prime Minister has to revive growth, especially after he did not get the blessing from g7 nations when it came to what policy levers they should pull next to revive growth. Of tensionn, a lot about that over the weekend on what to do next since it has appreciated so much this year. The u. S. Not particular convinced when it comes to intervention. We did see some fiction bween the u. S. And japan, the sharp at dissonance and views in some time. The finance minister of japan reiterated that the recent moves in the yen have been onesided, speculative, but jack lew saying that there is a high bar when it comes to what disorderly movements consist of. He brought an example of the 2011 earthquake and sunol me back in 2011 in japan that basically let japan intervene in the currency then. We are still a long way away from there, but tensions were a bit high. Competinging views when it comes to reviving Global Growth and response. That will be more clear when the leader summit begins this thursday. Hopefully we can see some kind of consensus, but it seems highly unlikely. Rishaad thanks. More on that story through the course of our show. We will have a look on whats going on with the japanese economy. Tweet us your thoughts at rishaadtv, include trendingbusiness. The head of irans state owned oil company says they have no willingness to freeze production and tell they reach presanction levels. This is like a bit of a red herring, isnt it . The prospect of a freeze has been dead since stildoha. Deal was always predicated on iran being part of it. Its probably going to be a bit of a nonevent in june, because we have seense prices crime to levels that were projected towards the end of the year. There probably wont be much going on at the meeting in june next week. Rishaad we have oil creeping up to 50 a barrel. The thing is, ok, what happens next . Is this rally set to continue . Fast, ifmb so far so the february lows for wti, the price is up 80 . It has made an extraordinary rise. Whether it can move from here is a good question. Disruptions are just disruptions, so that supply will come back onto the market at some stage. Those wildfires have started to ease and some companies are talking about restarting those operations. Crude at the u. S. Highest level since 1929. We have to see them come down before we can move any higher. Rishaad thank you, indeed. Lets turn to the federal reserve. More and more members of the looking to normalize Monetary Policy sooner rather than later. We have that story and others. It may be a president ial election year, but the head of the San Francisco fed said politics would not impact the Central Banks decision to raise rates. Williams also said the economy should be Strong Enough to merit a rate increase this year, but did not indicate when that should happen. Weems does not vote on Monetary Policy into 2018. He downplayed the risk of a recession for 2017. Investors now see a 28 chance that the fed will raise rates next month. Shares and blue scopes deal of making gains in sydney after the Company Raised its profit guidance, saying it sees 190 5ng profit at million for the second half compared to the previous forecast of 151. 3 million. They say that is because the impact of cost cuts have been felt sooner than expected, and because of higher steel and Iron Ore Prices. According to a statement to the ,hejunong Stock Exchange hanergy boss. Regulators have been investigating. He owns more two thirds and controls the parent company. Rishaad thank you. On our website, how premise to modis many shuttle is set to blast into the race for space. Its on bloomberg. Com asia. Coming up, whats on the agenda as president obama makes a historic trip to vietnam. Just ahead, our next guest says the fed could be about to make a huge mistake. Details are coming up next. And you are back with trending business. John william saying the United States economy should be ready for a rate rise this year. Markets pricing less than 30 next month. Our next guest things the fed would be making a mistake by raising rates too soon. Now from singapore. Why would it be such a mistake . In junelihood of going is probably a red herring with the brexit vote. I suppose a brother take the wait and see attitude then. Beit is wait and see may through june, but certainly they are penciling it in for july. My concern is while they keep talking about the headline rates of inflation approaching targets, i dont believe a psychology of inflation is embedded in the economy, so raising Interest Rates too soon could give an inflation rate falling in growth pulling back. Rishaad on some measures, inflation is going up. Going to keepbly rising . That is the point, isnt it . Very much so. If you look at the surveys of consumers or industrialists, some of those numbers would show the expectation of consumers and industrialists about inflation for the future, some of those have been sliding. Not sostreet, people are convinced that inflation is embedded in the economy, hence the fed should not be following through with tighter Monetary Policy. Rishaad is that why you are to raise your Portfolio Allocation to gold, 10 of the portfolio ideally in the precious metal. Yes, ironically even though there is not much inflation to our mind, we believe that policy mistakes by central bankers, in this case the federal reserve, will lead to greater volatility in the Global Economy, may be slide in growth rates in the future, creating more problems for the financial system. Hence, we believe that typically a client should have 5 to 10 of their portfolio and gold and should be buying after the recent dips of the last week. Rishaad thats one place to put your money for your private isents, but the other place to keep an i on middle eastern at sets assets. Worth looking at the saudi arabia equity market. Not had greate access, but things will change over the next 12 years. Believe there is something underway here in terms of a significant structural change. With its problems, saudi arabia is growing 2 to 4 . The improvement in oil prices is quite a surprise, and therefore we could see some upward surprises, so i do think that with structural change in low by he way shes and a positive story for the next 12 years, this is a part of the world to be keeping an i on. Rishaad structural change remains just a story at the moment. We want to see roe change on the ground, dont we . Thats perhaps when this advice comes to some sort of fruition. Absolutely. Although, we have seen Retail Investors in the past invest with blind faith, so we have seen very high evaluations leigh wishons on saudi equity without delivery. I do believe the government will deliver here. Its coming from a low base with a lot of skepticism, but that gives you an entry point. That gives you a relatively low valuation for a lot of hope, but for what could be some very good delivery. Other assetht, the class you have been looking at is residential real estate. We have predictions of property pricess in hong kong, falling pack. Singapore, price falls as well. Youre saying this is a hugely overvalued asset. At what point does it become a good value asset . Need a good 30 or 40 setback in most parts of the world. Cheap credit has a lot of people buying properties, second property, fourth property, and are hoping to rent out. Those rents are under pressure because the average person on the street cannot afford the average level of rents we have seen it recent years, particularly with wage growth it seems benign. A lot ofeen speculation in investment, particularly in london, where prices rose 35 to 40 in 18 months. Even if Interest Rates dont rise spectacularly, i do believe there could be quite a significant price correction. Rishaad looking to this part of the world and singapore, but further east, what you like and what do you not . We still like japan. It all has the bad headlines at the moment, and suppose Something Like a disappointment. They did not get the support for the yen to depreciate, but i do believe we will see follow through with a budget of 1 of gdp to provide a stimulus to growth. I think the bank of japan will be forced to come to the table was some measures to put some downward pressure on the yen. Both of the factors could bring a further rebound in japanese equities. Rishaad great seeing you. Have a good one. The stories making headlines around the world. Egypt is sending a submarine to search for the black box flight recorders and has warned against jumping to conclusions about what happened. Says also nares remain open and nothing has been proved. The flight crashed into the sea on thursday from paris to cairo. The french air accident investigator says the plane sent automatically messages about smoke and the cabin moments before it lost contact. Later todayexpected in the trial of a Baltimore Police officer charged with the arrest and death of freddie gray. He is accused of assault, misconduct, and reckless endangerment. Freddie gray died after his neck was broken while he was handcuffed and schappell shackled in the back of a police van. They say he unlawfully arrested freddie gray and was negligent for not buckling him in. Recordemains in a heatwave, temperatures topping 51 degrees celsius at times. Authorities issued a severe heat a third in the western states. The monsoon is expected to bring cooler temperatures from the beginning of next month. India has two years of poor rains with droughts putting extra pressure on the economy. Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. Coming up, hong kong deals with the triple economic property, and financial sectors, charting the headwinds, coming up just ahead. Chinas third highest official has warned hong kong to avoid rocking the boat or else risking harming the citys economy. He believes street protesters are not helping the cause. It is already rocking hong kongs economy. There are some signs of leaking and hong kongs economy. As series of charts represent this. The first one shows hong kongs chief executive is the citys least popular leader since the return to chinas rule in 1997. We also have the slump in retail, property, and financial sectors. This is a poll done by hong kong university. Is hoveringty around this 40 point level on a scale of 0100. It already started at a lower base then his two predecessors. Butpularity is one thing, we have some more measurable metrics. They show that hong kongs economy is starting to slow down. This is about retail sales. ,oing back to june 2010 to now we have been seeing this downward trend coming through in retail sales. February,ig lunch in but over the First Quarter of 2016, down by 12 . That is due to the crackdown on luxury and excess, but we have seen this play into the overall economy. Contracting. 4 in the first three months of the year compared to the prior quarter. That was the steepest drop since 2011. Also, the drop we have been property hong kong prices. You can see that they are down over 12 from the peak in september last year. Is forecast that we can see home prices fall even further. Goldman sachs has been predicting a further 20 drop coming through in hong kong we start toces as see borrowing costs soar, and the number of hong kong homeowners with apartments less than their mortgages has soared in the First Quarter. Alsoust these metrics, but sales in hong kong down 41 this year, offshore bond sales slumping 64 . Street protests or not, the Hong Kong Economic vote could already be rocking. Indeed. Thank you, the big adaptation of the angry birds game reveals why the birds are so angry. Its managed to top the north American Box Office, taking 39 Million Dollars to edge out captain america civil war. A shot in the arm for the games , recently cutting jobs. Rishaad a look at our top stories. Asiapacific stocks starting lower as oil extends losses, iran refusing to join any production freeze. Energy explores and utilities leading losses in tokyo. G7 finance talks exposed discord between japan and the United States on currency policy. Is the currency. Japanese exports dropping for a seventh straight month. Overseas shipments contracted 10 , imports dropped 23 , a trade surplus of 7. 5 billion. It underscores the mounting challenges to efforts to revive the economy. President obama arrives in vietnam, a weeklong asian trip, building stronger ties in the face of chinas influence. He is the third sitting president to visit since the end of the war. Engage an is eager to Regional Power with a rapidly expanding middleclass and promising market for american goods. The first trading day underway in hong kong and shanghai. A lot of volatility this morning. It is looking like a down day across asian markets on the first day of trading. By 6 10 of 1 . Chemicals, industrials, this one the back of oil prices retreating. Same story when it comes to sydney stocks, the asx 200 down 9 10 of 1 . Iron ore miners as well, despite the retracement in prices last week slows. Also, weakness from Southeast Asia, malaysia down by a quarter down bytraight times 4 10 of 1 . It is the energy space leading the index lower there. Shanghai opening a 10th of 1 that market has in not doing much over the past few weeks, sitting at that 2800 level. Point for support. Back, downng giving to tenths of 1 . We are in a wait and see mode. See about waiting to a potential move in june. This is what were looking at in terms of commodities. Is extending its retreat, down by. 5 . Focus,c meeting in comments from iran that they will not be joining in on this production freeze. The yen is starting to climb thatte counterintuitively miss on trade numbers for imports and exports. Rishaad thank you, indeed. Two days of talks between g7 finance ministers ended without consensus. There is a growing divide between United States and japan. Our chief asian economics correspondent was there. What is the difference in these positions . On of the biggest differences between the japan and u. S. In years on the foreign exchange. The japanese finance minister keeps making the point that he trading has yen been speculative and onesided. The g20 and g7 dont allow governments to intervene to help exporters, but there is a clause if Market Conditions are disorderly, a government can intervene. The problem is what defines disorderly conditions. When the 9 rise was put to jacob lew, jacob lew made it is a high bar for disorderly. The question is, does japan want to intervene . That is the point here. There have been many lines in the sand drawn and we have not had any firm evidence. They keep making the point that they are not interested in a competitive violation. However, the fact that they keep making this point that they have t