You look at volume today come almost nothing, maybe 20 , 30 , 40 lower than what we are used to seeing at this time of the day. Have a look at malaysias reopening. We are seeing a big climb across palm oil futures. In kuala lumpur, we are looking a 4 drop. Op. We are seeing declines today. The action is really coming when it comes to the bond market. Again, we are pushing towards record lows again. It depends on which when you look at. But that twoyear in the tenure, those are at record lows. The fiveyear, the tenure, and the 30 year are there. Just a few minutes ago, the auto just out. Of china 19. 4 increase year on year. Keep in mind, we have a lot of data coming out of the chinese mainland. What is in store and why markets are cautious, not just because of the jobs data. We have a lot of these things coming through in the next few days or so. Sunday, he have inflation data, all the way until this time next week when you have the third line. Secondquarter gdp numbers are due out. There is speculation on the market when you look at this. And when you look at the renminbi offshore here, it is on speculation you might just get see this little spike right above six. Basically it goes quite nicely with the news out of shanghai. If the news isnt bad enough, we ht get a couple of seconds perhaps [indiscernible] eve on the longest run this year, this is on signs the central bank is coming back. For more, lets bring in the asia emerging markets editor. We are seeing this reflected in the china reserves. What exactly is going on here . People are increasingly betting that the pboc is cutting back on intervention in the currency and allowing more of a decline in the yuan as they seek to help their exports. So they see a decline at a very frantic pace earlier this year, late last year as well. People are reading in that there is some sort of a reduction intervention. We have seen the yuan declining for a while now. Yvonne there is a chance there is that the deceleration could lose control. What we saw earlier, we saw in august and january as well that the pboc sometimes tends to miscalculate what happens with its policies. We talked about it yesterday and this morning. Finds the people are more sanguine with the decline so far. Yvonne i want to bring in stephen engle. It looks like this is a very surprising bounds. Stephen yes. 13 billion up to 3. 21 trillion u. S. They had to defend the currency after having the sharp devaluation last august. But there were a couple of things that play. Obviously, the yens rise against the dollar, the fx core, cash pile was up 7. 3 against the dollar. Also, the pboc and authorities in china obviously not obviously, but it looks like they are not intervening as much. They are letting the currency depreciate. Glad stephen brought up the young angle. We dont know what the percentage of the holdings are. But it plays a central part in the fx reserves. So that probably contributed to the increase in fx reserves. The going back to the point about the intervention, what we said, we didnt see a huge the client. The sometimes can be a positive sign. Yvonne because we dont know whether it is more about the yen or the pboc stephen we know the british pound is in there as well. Thats in the basket, i should say. So the yens move was all that was obviously little bit more of a absolutely. Stephen outflows stabilize. But we talked to claudia for own in the last hour. The dollar. Seven to it looks from his perspective they are going to let this thing fly. From earlier this year, we had the depreciation of 6. 6. That has long been crossed. So 7 whats next, that is the issue right there. Yvonne thank you so much. We have been talking about china and the yen with our guests today. At is the head of macquarrie securities. What you are seeing right now is china trying to depreciate the currency without causing a stampede out of the country. So far, they are managing to achieve that. Is it because what is happening with brexit . Is it because of what is happening with eurozone are what is happening with japan . The answer is yes. It is all of those things. The environment is more conducive to slow appreciation of roman the of the renminbi and avoiding capital flux. As steve just mentioned, he expects officials are on a path of the nine appreciation. We can expect a weakening of the yuan. Lock a lack of outflows [indiscernible] our guests have also been weighing in on the impact of the brexit. The outlook for the World Economy is stable. The as you see relationship become more negative, that is where the real pressure comes to good but we havent seen that yet and i dont think we will because we are already a few weeks into the brexit, it will be a few years before we know how it will play out in the meantime you have economies around the world actually looking pretty decent to the European Union was getting in the bit better. It is still expanding. China is slowing but becoming more manageable. So the outlook for the Global Economy is quite stable. Yvonne that was the word from asia. We will check back on some other stories making headlines now. That reports that prosecutors have not posed a travel ban on the owner. His sister was arrested on charges of bribery and embezzlement. Investigations into alleged corruption within the founding family. A quick check on the shares. Confectionery down about 1 . [indiscernible] a temporary halt on operations in the u k at least for the shortlisted due to have pulled out the uncertainty created by the uks decision to leave the European Union. Unload. They u. K. Will have its second woman Prime Minister where they raced down to just one to runners. Conservative Party Members will choose theresa may or andrea the person who will take the country out of the European Union. Michael gove came last in a vote against among mps. Boris johnson did not stand. Still ahead, the worlds cheapest smartphone. How much does it cost and is it too good to beach or . Coming up to be true . This is bloomberg. Yvonne the latest first word headlines. Australias Coalition Government power days after the election. With 76 seats needed for a majority, his coalition has 73 and the support of at least two independence. The labor position is refusing to concede defeat. Department has announced resumption of its inquiry into Hillary Clintons use of the email issue a secretary of state. Andnews comes after the fbi the attorney general said she would not face any charges. The Associated Press says it is opening an investigation that will not get the way of other inquiries. At least one person is known to have died in attacks across taiwan. Sustained wind at 200 kilometers an hour gusting to 250. Railroad services are suspended until late afternoon. Yvonne senior officials have wound up their latest round of trott round of talks in tokyo. We were waiting for this emergency meeting among the ministry of finance and the Financial Services agency. Some of the headwinds that really came out are similar to what we saw from previous officials, meaning they will watch markets closely as well as for speculative moves. We heard kuroda say nothing cpi is going to remain negative or about zero for some time. Rod, it looks like the yen strength is causing some new concerns. Have been unique concerns about the yen continuing to be one of the focus of the discussions. And of course the discussion amongst official study was that. Spokenance minister briefly to reporters after the meeting. He discussed mark of volatility, which he said is continuing. And they are digitally watching financial markets, especially the currencys of course. He also said he would take any perfect action. This is a standby. We discussed standby. Discussed the continuing market volatility. We will can didnt we will take appropriate action if there is any volatile moves in the Foreign Exchange market. The this meeting comes ahead of the u. S. Bond payrolls data. So far this year, the yen has gained about 20 . The brexit putting doing his part in pushing the numbers higher. Yvonne ye did see the current account balance for may was higher than expected. Roslyn it was 8 billion compared to the 6. 9 billion dollars expected. So yes, it was higher than expected. The department of goods and services did fall from 2. 9 million to 2. 5 million. 2. 4 fallerbalances year on year. It has contracted year on year since july 2014. Isnne our next guest neutral on japanese and equities , unconvinced that policy action will have much of an effect. Adrian, great to have you. I think you have been neutral and japanese stocks for the early start of the year. What is going to change her mind . Japanesein problem for equities is earnings growth. Probably still have headwinds in terms of earnings for the Second Quarter earnings that will come out very soon, but also in the third quarter. Japanese equities are definitely a challenge at this point. It seems like abenomics have gone in reverse. Has it failed in your eyes . Problem at the moment is definitely that the negative Interest Rates in use from the beginning of the year are kind of knew in terms of effect. Inflation actually has fallen. Despite the yields from japanese bonds, which are already low and zero, before the inflation data, real Interest Rates are more effective. Financial market side, the support of the japanese yen. Yvonne i thought it was interesting, japanese investors are actually rushing to these golden vault in switzerland because they are expecting the yen to collapse given the failure of economic reforms, also with negative rates as well. So there are people in japan who think that again is going to weaken. I think one person from the mos official said it could drive weaker, beyond 300 per dollar. The very shortterm outlook for the japanese yen is still supported beyond uncertainties. The we would show the negative view on the japanese yen. It will start to weaken again. We believe global Risk Appetite will continue with the u. K. Referendum. Our shortterm trading team just set up a new trade with gold as a hedge. The trade at the moment is working more with full strength. But Risk Appetite is coming back, boosting the japanese yen to start the weekend. Yvonne when you see a turn, what is the timeline for that . We are stroke . Were trying to find an equilibrium. The threemonth outlook remains probably at 101. But afterwards, we expect some weakness. Theainly do not forget local economy, from the u. S. Health, is quite stable. The u. S. Consumer has shown resilience, the biggest rebound we have seen you to date at the highest levels. We think that the state of the Global Economy, despite all the uncertainty we now have with the u. K. Referendum will actually still be supportive for risk assets. Yvonne ok, still pretty risk on. We will talk more about the fed and the jobs report later on. Thank you so much. Coming up, another highflying currency. Live from singapore where the local dollar is nearing record levels. This is bloomberg. Yvonne concerns over brexit has sent the Singapore Dollar near a record highs. That may prompt the central bank to step in. Amin. Go to haslinda looking at more further monetary easing coming out of singapore . Are we looking at more further monetary easing coming out of singapore . It is stronger against most other major currencies in the world. Against the pound, up 14 . Against the greenback, 5 . Against the swedish krona, it is up 4 . It is seeking safety. Safe haven play simply because singapore has a top credit rating. Very unusual these days. Accounts ofredit lets. Three month ago, it was a completely different story. The same dollar was among the worst performers in asia and thats because of its economic indicators. They were lackluster. That hasnt changed. Dollar spells trouble for singapore. It is an export oriented country. So experts will be had. It will putting question inflation forecasts. It will put in question inflation forecasts. So watch out for october. Yvonne singapore such an open economy. How badly has it been hurt by brexit ends global slowdown . Haslinda it has been hardened it is likely to be heart even more. Brexit does complicated things for singapore. To the pressure it is feeling. Growth has been slowing. Consumer prices have been falling from more than a year and a half. Exports forecast a drop for the whole year. It looked gloomy enough back in april. We are talking zero appreciation, something it has not done outside a recession. Amongore expected to be the hardest hit in asia by brexit. Yvonne thank you so much. At how markets are trading in the asiapacific as we wrap up the trading week. Looks like we will see a weekly decline. He much flat in sydney. We are seeing that oil overnight, it was down to 4. 8 . So we are far from paring those losses. In seoul, we are seeing stocks are looking like this. Pretty much flat. Get ready for the rio Olympic Games by switching to xfinity x1. Show me gymnastics. X1 lets you search by sport, watch nbcs highlights and catch every live event on your tv with nbc sports live extra. Im getting ready. Are you . X1 will change the way you experience nbcuniversals coverage of the rio Olympic Games. Call or go online today to switch to x1. Stocks are headed for a weekly decline. Fromy shares are suffering a new month low in oversupply in america. And japanese policy makers they are vigilantly watching markets after meeting in tokyo. A fifthis headed for decline on signs that central bikes need depreciation to help growth. The pboc may have reduced intervention. Reserves grew 13 billion. A big jump in car sales in june. The Passenger CarAssociation Website says retail sales jumped to 1. 7 Million Units last month. Sales for the first half of this year were up 9. 5 almost 11 million vehicles. The faster than expected growth was driven by suvs and electric cars. Lets get the latest from the markets now. David let me get started with these revised forecasts. They started cutting or year and forecasts for both chinese and hong kong. A good example would be the hang seng index. H shares basically taken up from 10 to 9000 kv can see them at 8500. 9000. We can see them at 8500. Move to may actually cut the reserves racial requirement reserves ratio requirement. Its friday. They might actually move the equity markets doing this. This week has seen two general market themes. The shaking off of the brexit shifted to the jobs later on tonight. The second was the search for both yield and safety simultaneously. Which is why you had the search for everything from gold to the yen. And because of the things that you see on your screen. There is no yield across the japanese yield curve. When you look across the commodities space, that is why gold has been a performing. So something to keep in mind as we go into the weekend. Search for yields and search for safety. Lets hope it does get better. Australias department of industry has cut its iron ore forecast for next year by 20 . To below 45 a time. Stockpiles continue to grow. Paul, this is a chopping. Paul yeah. 20 is a pretty big cut. A pretty big reduction. If we look at the reduction of iron ore this year, it has done pretty well but no one really expects it to continue. Are notons they give particularly surprising either. Demand remaining flat. Export earnings remaining flat and they can see other supply coming on worldwide as well. This is the reason we think they are not too optimistic about the price outlook for iron ore in 2017. Yvonne we also heard from s p. They put australia on negative watch. Is this likely going to put more pressure on its aaa status . Paul yes, the reasons they are giving for that negative credit watches the possibility of widening budget deficits. , the price of iron ore has a huge impact. Is a 250 million hits westerly is bottom line. That is based on a iron or price of 55 per time. It means not great things for the budget deficit and the s ps negative watch becomes all the more understanding. Right, more pressure on this government as we continue with the voting in the selection. Thank you so much. North korea has announced a new yes sanctions against kim jong un. In our bloomberg reporter. Why has the u. S. Acted now . Ofit is a building up seen as of what is north korea and oppression, especially in developing of Nuclear Weapons and the trigger defense minister. These so what are sanctions going to achieve . Shi if you see kim jongils previous behavior pattern, he is not one to respond to logic. You send a top envoy in december to korea in a peaceful effort, but on generate six, they sought they launched a new contact. Yvonne the south has also deployed a new missile system. Big news. Ting shi yes, and that Missile Defense system is advanced. It might be deployed in one of the northern provinces. Said, we strongly will hurt and it stability and peace. It will not benefit the countrys National Strategy and is probably going to hurt, going to affect the strategies for balance. Urge the u. S. To to stop the process of them the processing merely. Yvonne i guess china is in the middle, getting the process immediately. Yvonne i guess china is in the middle, getting the pressure. Shi chinanorth korean relations are probably at their lowest yet. Beijing does not have a lot of influence over kim jongun. He is a maverick leader. Moscow areg and urge south korea and the u. S. To stop [indiscernible] the value of Domestic Holdings dropped to 9 to 180 billion in the last fiscal period. The firm has been cutting its exposure to banks while adding stakes in tech and telecom companies. Its have more than half of assets in china and singapore. Algae are expected to announce guidance on friday. Analysts say robust Home Appliance sales could make up for sluggish sales. Anding to j. P. Morgan chase paribas. Lic pb the bs acquisition and almost a decade entirely with debt aired this is the largest of financing since the u. K. Vote to leave the European Union royal credit markets and more banks will likely be bought, brought on board as early as next week. Its the world cheapest smartphone and its about to enter the worlds faste