Monday morning . A good morning to you. We are seeing shares falling across the asia pacific. Check out the figures here. You see the regional benchmark right now. Modest gain here. But if you look at the individual stock story, it is generally a down day. Shares modestly lower in tokyo today as shares get under way. This is what we have. Higher by 4 10. The taiwan Index Trading lower. Lets go with singapore right now because we do have the latest g. D. P. Figure. Those numbers coming in perhaps slightly slowing in terms of economic growth. We did see the Monetary Authority there maintaining its current stamps in terms of the Singapore Dollar. Watching that today. Here are early movers. Among those, hong kong up 1. 6 . In the downside category. Noble group 4 10 of 1 . Thats the publisher of course of the straight times newspaper. Now, as shares continue to trade in tokyo today we are watching the yen. Been a lot of action on the currency front. These are the movers in tokyo. Your downside movers sharp nearly 10 drop there for the stock. Reports of a possible Capital Raising plan sending that stock lower. Nipen active. But one of the key auto makers, thats a stock you want to watch. Well be watching japan and comments out of the euro zone. Thats having an impact on the yen. Well continue to watch that as stock trading and the currency markets get under way this monday across the asia pacific. Now, the euro is moving this morning. Joining me now with more on the latest warning on the currency. A bit of a warning obviously but again certainly about negative Interest Rates. The euros appreciation is making it difficult for the ecb to target their inflation rate. Of march, at 0. 5 not a situation they want to be in. In those comments you were talking about he talked about how his options are limited as he has very few choices. The strengthening of the Exchange Rate would require to make our Monetary Policy stance to remain accommodative would require further Monetary Policy accommodation. So the strengthening of the Exchange Rate requires further monetary stimulus. So heres a take away from what he just said. Number one you could see an Interest Rate cut, and the path which the u. S. Took quantitative easing. Thats what you have to keep in mind. That could put the economy on a very interesting path, what you alluded to earlier, going into a negative Interest Rate territory, going below zero. The message is clear. That by holding euros you are holding something that is not attractive because youre not going to be making the same amount of cash. Now his comments come as the imf lets not forget washington you could include into this, is putting a lot of pressure on the ecb to really get a handle on this low inflation. The reason they care about that, a lower inflation is because of the euros strength which makes g ports from outside the euro zone cheaper. So if something is cheaper you could see why you favor going down that path. So thats something that the ecb does not want. So you could see negative i want rest rates. Negative deposit rate is the crucial one. Theres no upside so you want to lend it out. So thats probably the s and es. So that negative deposit rate could happen. With the goal of course that would ultimately stimulate the economy. You cant get it done, then, nowhere do we have a sense of time period for how long they would let this negative Interest Rate environment go or how long theyre willing to be. Then you could see the quantitative easing roll into play. But thats a twopart scenario. With the first being the negative Interest Rate. Thanks a lot. Now lets check some other stories. The owner of the worlds biggest futures market is being sued in chicago. The plaintiff claiming cne group sold information about orders to High Frequency traders. Cme says the suit is without merit it only offers one data feed with prices and all investors get it the same time. As ny recalling laptops they look at reviving the company through restructuring. Pepco is said to have found a pump. Sending radioactive water the wrong way. They say theyre checking whether there are any leaks at all outside the water system. s been six months since sites were set on the company. Things have just turned around in the short sellers favors. How they benefited. The shares plunged 20 on friday. And thats a huge plunge. That is after its last result. The results came out disappointing investors coming out at 22 cents per share. The shares are now down 44 since october, which is where they released his support ying basically the company misrepresented cash and exaggerated sales. Reported, least 72 is fictitious. Those are all allegations made against them making investors somewhat uneasy. Now they have been working really hard since then to try to get its share price back up. And it has been rising quite successfully. Not up to the highs that it reached last year but doing quite well. This Earnings Report making investors a little bit skittish not least because there was actedly an accounting error revealed. It revealed unauditting financial results. Lerical errors theyre saying. Overstated by nearly 370,000. Then of course guess what the shares are down. But not all companies will collapse because of muddy waters allegations. One company accused by muddy waters. But since then the company has done quite well. Theyve fought back really hard. Last month a unit offered to buy it. Thank you very much. Clearly you have a lot of red flags there. Thanks for that on that story. Russia and the u. S. Have accused each other of fomenting unrest in ukraine. The Security Council met. These are live pictures from new york right now. The raurgs Ambassador Says the west and kiev are behind the instability and the situation is most combustible ever. He ambassador u. S. Says only russia has the power to create such a situation. The meeting was called by russia after kiev sent troops to separatist parts of eastern ukraine. The search for the missing airline has become even more difficult with the grudging acceptians the black box bat rizz have probably run out of power. Nothing has yet been heard since last tuesday. Deemed s were found consistent. Theyre unable to find the accurate area. It sounds as though the battery life has come to an end. It is certified for 30 days were now into day 36. Its not likely its going to last much more. So the fact that we havent heard anything for two or three days, three or four days, indicate its possibly past its life. Water supplies to more than 2 Million People northwest in china have been contaminated by two separate accidents. Investigators say oil leaked from the pipeline fouling the water source. Fren the tests showed ben 79 levels are 20 times higher than approved safety levels. 250 mill mitters of rain fell in just 10 hours in places as the storm moved inland. There are no reports of deaths or injury but many homes and businesses were badly damaged. It made landfall on friday. The strongest to hit queensland since 2011. Up next, chinas economy set to slow down in the First Quarter. Figures out on wednesday. When we can look forward to that. Can beijing control record levels of debt . Details after the break. Welcome back. It is monday april 14th and youre watching bloomberg trn v. China reports First Quarter figures this week and were expecting a slowdown. Ahead of Global Markets research for asia has joined us now from sing por. Very good morning to you. Lets talk china, wednesday, and what your forecasts are. The government saying about 7. 45 for the year. That has caused a little bit of a rumble. Weve seen the mindset that were likely to get a drift down towards 7 giving them the leeway of saying about 7. 5 over the course of the current plenum. But 7. 2 is what were looking for on wednesday. What we think is likely to follow from that assuming that retail sales and ip sort of on the soft side as well. What sort of next round of stimulus might be looking for with a Holiday Weekend coming up in the north atlantic an ideal time for maybe a change in the rrr on friday. From the pboc. So keep your eyes alert for Something Like that. How effective is that if it were to change . At the moment probably relatively effective in that they can change the rrr selectively across different industries. A blanket change might not be seen as effective as pin pointing changes or easing in the amounts of reserves that have to be held for specific industries. But it can be pretty effective. And it would add to changes theyve had in the reapo policy of late. So i dont think its a blunt tool. They can use it selectively to give it a bit more edge. Retale sales production week ave exports last disappointing. And also again inflation. All these figures point to the wrong direction. Dont they . Theyre all suggesting that the policies that weve had over the last 12 months are actually having an impact. Theyve been trying to change the growth trajectory. Now they need to stop it ecoming a sustained slowing of growth and sustained the profile thats needed for the programs. So they have to step up on the other side now. Its part of what they do or need to do within a still heavily controlled economy. So we should be watching for this coming through over the next couple of weeks. A surprise change in pboc policy. Lets go to singapore. Exports calling ten months, 12 months. Obviously thats a bit of a blow. You have this in the last one this morning coming out again. D. P. Below estimates. Maintaining that modest and gradual appreciation. How do you interpret also the cut in inflation forecast . Right. Firstly i take my hat off to anyone forecasting singapore data. Its so incredibly volatile in a month by month basis. This quarter is jernlly a soft quarter. But it was soft. It wasnt massively so. I think we should probably push that aside and focus on what they were saying on inflation. Theyve reduced the headline inflations profile. But the core inflation is staying pretty much in place, 2 , 3 . But they wanted to stop volatility or curb volatility in the currency. So what we think theyre likely do is maintain the currency band close or the currency index close to the center of its band. So probably more intervention keeping the currency pretty steady is how we would see it. So not wanting to create any financial tightening from a stronger dollar. Looking at the research they have. It almost sounds frustration in your voice. Fourth year in a row, low rates, do they sort of say when is it going to change . But you have no idea. Have you been listening in . Youve been hacking into my client calls. Its very much the case. Weve been looking for this selfsustaining recovery in the developed economies laid by the u. S. After the crisis and its coming so slowly. Its not giving us the necessary final demanned pull that were looking for for this region. We were looking for a slowing in growth trajectories in china export pull y an into the u. S. Specifically. And thats just not coming in the way we were looking. But we still think its going to come. We still think that maybe the middle of this Second Quarter were going to get the surprise index for u. S. Data starting to take up. Its been pretty soft over the First Quarter. So that would be something we would be watching for to start signaling a possible export pickup. Thank you. Have a great weekend ahead of you. Thank you. Now, still to come, headlines were going to check in on the euro after the ecb warned about the currency strength. Could there be negative rates on the horizon . After the break well find out. In hong kong its monday april 14th and these are your headlines. The ecb has delivered its strongest warning yet on the rising euro. The president says any further appreciation would trigger more stimulus measures. A rising Exchange Rate threatens its ability to deliver inflation around 2 . His comments come after the euros rise of more than 6 against the dollar in the past year. The Singapore Dollar is lower after the Monetary Authority decided to stick with its policy stance. That includes gradual appreciation of the dollar, policy then all 23 analysts we surveyed predicted they would keep the modest and gradual appreciation language. The Philippines Central Bank governor said record low Interest Rate levels are not sacred. They say price pressures appear o be easing but pressure consists. Lets take a check now of how the currencies are performing. This is what were seeing. Looking like this around 44. 39 levels to the u. S. Dollar. Singapore they reported First Quarter g. D. P. Numbers today. You see the Singapore Dollar at 125. 18 modest weakness there and the euro. This is the level we see on the single currency as the comments continue to impact markets. That is a check of the top stories driving the market this monday morning. When they saw that pace looking at some of the highest paid executives right now. I think were in the wrong industry because if you want to make money youve got to be the ceo of a big u. S. Company according to the latest Research New York times looked at the 100 of the largest publicly traded companies by revenue. And that has filed their proxy as april 14 and this is what they found. No surprise. Larry ellison again highest paid ceo in the United States million bob 78. 4 iger followed and rupert murdock. If you take a look at the top rounding out that top five. Do all ceos in the United States get paid this high . And the answer is no. In fact, according to the New York Times article and they e sourcing equal the average makes 14 million. Still not a bad sum. Also, they tend to be breaking down how does that break down . For Media Companies in the 500, less right there, cbs of 6. 9 million. Viecome 37. 2 and bob iger 34. 3 million. And just to clarify, cbs was not part of the New York Times study. Again that was not part of the 100 of the largest publicly traded companies by revenue. Youre looking at the top guy right there and one could say the reason he made so much money is because his network is the most watched tv network in the United States, his pay rising 7. 7 . We want to show you also how well that stock has done if you take a look at the companys stock compared to the the s and p 500. You can see that up from 30 . And that stock was up 68 . You know thats very impressive compared to the 30 gain you saw last year. Exclusive interview with investor guy hans saying china is changing the way deals are made. And the hong kong gets under way. Well have opening prices when on the move returns. At the sharp end. Taking a hit in tokyo. Going to global. China is changing the way. Australians are told they have to work harder for longer. Hard. Working very 4000 lastl below week. Works all day. Of what iske a look happening across the asiapacific. We are seeing a downside for the most part. Japan is changing course. It is up by 0. 1 . Given the move in the japanese yen. The hang seng show starting lower. The shares are down by 0. 1 . We will be watching as some of the key stock movers this week, banks in a focus. Will be watching it sure we will be watching insurers. Expanding intong linkages as well. That in thenote identified companies that will specifically benefit from this particularly Hong Kong Exchanges which is a major mover up 12 . Today, it is not want the top movers, but here it is. On the downside, watch sino. One of the stocks that will thefit from the linkage is insurance company. It sort. Today, modest moves on the downside. A look of where it is in terms of the last two sessions we had here. The stock, it looks like you just opened. It is advancing. On friday, inside a game. Well continue to watch that one. On friday, we saw a gain. The yen. We follow we have toyota. Automakers as we watch the japanese market. That is the latest. Un security off the Council Meeting of right now. U. S. And russia have accused each other of the unrest in ukraine. To the u. S. Asoy he addresses council. Guys there will be the use of armed force in hostility in the ukraine. We will not sign off on the meeting. Going to behat is fundamentally undermined if military operations comments in ukraine. Refrain froms speculation or searching for tosons into why russia is what it does. Lets focus our attention on what we can actually do in this case. I am looking here at my western colleagues. Let us ensure that we do not allow reckless operations of the ukrainian of 40s that right now authorities that right now are in is a criminal and let us stop that from being implemented. That is going to have extremely significant consequences for the people of the ukraine. That needs to be avoided. In defense ofnvoy their actions in ukraine. Australias treasurer is over warning that they will have to share the pain. The warning a month before he comes with a budget. His first budget in fact. If the government in canada ready is the government getting ready . [indiscernible] well, lets put it this way. Retiret to be able to your ever. Especially when you consider the latest comments from the treasurer who said in the rise in ages under consideration. That is a direct backtracked under a Campaign Promise made by thatabbott before he won pensions would not be touched. Hockey made a compelling point. He said those in my generation will have to work next or three years. 85 plus will quadruple in the same appeal of time and the cost of the pension is rising 11 . Added a decade, is expected to top 60 billion. To fix the way problem is twoputting to raise the age at which people can retire. The problem isix to continue to raise the age at which people can retire. Is a good thing. Also, the traditional free government. Where else is the axe going to come . This is pretty normal. An hour after the budget, all of the leaks, into ju and unintentional about where it might fall. The ecb, the government, it is one obvious candidate. They are writing extensively about that today. A cut in funding which is 20 of their total budget. They have already lost 300 staff this year. Tony abbott does not have a Science Ministry in his cabinet. The other area that is speculated especially the coalition is in town, is the abc and sbs. Currentrites of the prime minister. A lot of speculation that their funding might suffer. On the revenueis side. Will cannot have too much information yet on what the government might do to try to raise revenues. What do we know for sure is the treasurer hockey is a leafy nobody under illusions that this budget will be an extremely tough one. Paul allen joining us. Biggest and same chinese money is changing the way it deals are valued. Guy hans also said china could be the key to the further rejuvenation of europe. Europe was still kind of stuck. It was like groundhogs day. The banks continued to try and get a better. That the t2 every now and again offload things. The thing attractive to me as the zombie companies. They have been sitting under bank control for several years. They are start to come out. Bill murray keeps waking up on the same day over and over until yes redemption. What needs to happen in europe to get off this treadmill . Extreme as the Structural Reforms needed in japan. What really needs to happen in europe are some of the protections in place need to be taken off. We need to be up to take on younger people and producer youth unemployment. In a doing that, we have to let some of the old people move on and go on to retirement. Discussions with Chinese Business leaders, government leaders as well to get the chinese more interested in investing in europe . In addition to sovereign bonds . What i say to them is [indiscernible] all the talk between 2009 and 2012, it is frankly nonsense. On the other hand, europe doesnt need does the capital. It needs some enthusiasm and life. The chinese definitely have to that. And cash . And cash and markets. How would you evaluate the state right now . How do see those pools of money collected in china turning into m a globally . They will have an effect. Some the larger chinese are not as blackstone. They are getting permission. They will be competing for businesses which they can then leverage in china. Because of the chinese connections, there is a price to pay and it will be high. In certain sectors, you will see an increase in price. And frankly, you will see some of the western firms just price out in the market. They are obviously looking for strategic commodities as well. Whether in canada, australia, the United States. We to producers. We have a large cattle farms. They want to buy beef. Is it on the market . Not at the moment. I will always listen. That was british financier, guy hans. Portray between hong kong and the trade between hong kong and shanghai is soaring. We will talk about the winners and losers. Tim. What are the implications across industries . Is prettyit interesting. A couple of things with the take a look at. One is quite simply the discount or premium between a shares and eight shares. The stock eight shares are on the shanghai and eight shares are trading in hong kong. With contracts a premium discount we can track a premium and death count. As you can see of the top panel of this chart, we are at an a share discount which is close to being as extreme as it gets. Quite often we will see it down to 5 8 and it could go to a premium. That could possibly narrow if indeed there is a more interest globally, access globally for chinese mainland stocks. It is true if a investors have the ability to of stock. Es like luxury goods and technology where there are Hong Kong Listed shares that mainland investors could potentially be interested. There are number of interesting ways to look at this. Fox also looking at also looking at [indiscernible] a roller coaster shift in leadership. Tell us what you are seeing. Pretty intriguing there as well for the year to date, mcsi is close to flat. A lot the discussion about a preference to emerging markets. China, which you see, is it white and has had a roller coaster. Web it down and up now twice round tripping. China is almost back to sort of global type levels in terms of performance. The most important aspect of that is it has not been the same old stocks. It was not technology which 11 00 p. M. It it was not china. Ogy that led msci we have seen significant rotation where technology and healthcare have, under pressure. You can see that in this chart, john. And contrast, the old economy has come back to life. Financials, materials, energy house burden this latest on rowley since midmarch. D this has spurre latest rally since midmarch. What has sustained this . A 64 thousand dollar question. It is interesting because the shift of leadership which occurred happened with the catalyst of several new initiatives. We have seen a a string since the mpc. More recently, we have had the opening up of shares which could raise capital for banks and the reverse takeover pacific which is showing more and so he reform initiatives soe reform initiatives. It is cheap it seemed to spark of this change in a leadership in the past few weeks. If you look at valuation, you have a chart and theyre now. It is a case where the technology and health care and dearlyr staples are more prized. The old economy stocks are much cheaper. Valuations, not really a hurdle. Further execution on a policy initiatives. We turned it a real change. Continues, we have a possibility for this to sustain. Research actor of Bloomberg Industries. A little bit more. China is strengthening its grip on a couple of markets. A group led by china is buying in a peru. Billion. Ting 5. 8 the deal would help glencore win approval. Accountinge biggest for half of global demand. Coming up, prospects for Precious Metals in the coming months. That is the Global Outlook when on the move returns. Welcome back. From an investor who is looking to add the asset class of Precious Metals, the question is which would be worth the most bank . Weighing the options. This morning i am looking at which of these Precious Metals, gold or platinum right there would get more precious. Which will perform better from here on out. As you can see, that done fairly ok. We put together the most accurate forecasters. This what they are saying. Lets start with platinum. I do not have the spot price. The median forecast is 10 to an per ounce for0 the Fourth Quarter which will be the highest level in a year. You can see it on the screen. Forecasto gold, median dropping over 11 to about 1100 per ounce in the Fourth Quarter. It is the lowest since 2009. Tradedrecious metals are relative to each other. Premiums and discounts between watchedose are closely for any cues. How does that look like between gold and platinum . I the chart to show you. You look at the percentage differences between the two on a per ounce basis. One cost 10 . 10 more thanst gold. That premium has been widened by the end of this year. The question is, why . Free reasons. One is higher demand for platinum. Supply concerns. And third, as economy improves, lets need for the safe havens of gold. I want to focus on the first two points right here. That demandimated will outstrip supply by 161,000 ounces. This comes from consumption alone. Among the use of platinum to give you a look, those devices of cars. The second is the strength of ongoing south africa. It is the largest producer of platinum. City january, 70,000 union members. Both of these put upward pressure on prices. Just to remind all of our fromrs, those views are the five most accurate forecasters of both metals in the last two years. That is your Global Outlook for today. U. N. Council is meeting. Russia and america are accusing each other of the arrest eight ukraine. In ukraine. Rest up next, the charges facing china. Pushing deep crucial gdp figures on wednesday. Discussing the retail sales. Join me after the break. We have a chief general economist. You are watching on the move. Now, the key one is china. Gdp are expect to release on wednesday. My next guest has lowered her forecast. For joining us. You lowered your forecast. Exports, imports, inflation data point and the wrong direction for china. About 7. 5 . It will rattle a few nerves. 7. 1 . Em will. 1 . 7. 1 7. 2 . T at i loaded the key 127. 2 . Based i lowered the key one to several. 2 . 7. 2 . Down on the headline numbers in trading. Those numbers do show a weaker demand as well as domestic with thensistent celebration and investment flows. That is why we lowered q1. , this willher before be a Good Opportunity this coming weekend to do a crown ratio. If they did as a market experience, to think it will be the right move for them . I think the governor talked about their is room for fine tuning. He might well. At the moment, he will likely use the open market to ensure liquidity into the system. I think the rates will be around the several. 3 . That out flow. I think the rates will be around that 7. 3 . The depreciation of the currency and i do not expect nearterm. If growth does continue to slow, a rate cut would be in the cards. Indeed. I do expect it to pick up in q2. And a special on the back of the governments series of measures to promote growth. If Growth Continues to disappoint and we see pmi continue to fall at production the team to weaken, is there is a room of four inches cut Interest Rate cut. Week, the Spring Meeting of the world a bank. Russia and ukraine are key right now. Its a china concerned enough to be addressed . Talking about the risk of chinese hard landing. I think their view was chinese minus the policy had been to chinese policy had been to accommodating. In the Financial Sector and problems in the balance sheet. And the leverage in the economy down the road. Someat case, there is truth and there are timid. Clearly, the risk on the global side. The government has been taking the relatively quake action. They need to stabilize Market Sentiment and i look for continuing recovery down the road. A lot of positive points of view. Thank you. Show, reportshe of more job losses. Well take a closer look when on the move returns. A very good morning to you. I am john dawson. We are on the move. When the euro stress has gone up too far, a new warning from the ecb. Why the electronic maker is taking a hit. Reported that citigroup is trimming. The euro is hoping. Mario draghis comments. The latest on the next a possible move by the ecb. Concerning data in fact about this so far. Clearly the ecb is warning about the deposit rate. The next possible move. That is right. Running out of options on the policy. Mario draghis comments had to get impact. Well see the euro move. Lets start with that. After tryingalling he hinted at further stimulus talking about depreciation and the euro. We have seen the currency. It capped its longest and strongest weekly advance since september. The euro sliding a marginally today. 0. 25 . Watch it the euro. Or possiblefurther stimulus. Across the region, this is what we have. Investors taking a look. Lets look briefly at the japanese a year of how things are looking in term of the yen today. This what we got. Well keep an eye on that. I wanted to listen to what mario draghi had to say on saturday speaking in washington. The strengthening of the tohange rate would require make our Monetary Policy to remain accommodating, equally accommodating. Further wereire policy accommodation. So the strengthening of the Exchange Rate requires a further monetary stimulus. Draghisnly, we have comments. Watching the euro and stocks across the asian pacific. We are seeing a rotating of games. Japan advancing. Look at the hong kong movers. 0. 3. 0. 3 . It continues to benefit from the announcement last week by regulators in china that they will expand market cooperation across the border. Bottom line, that means of billions of dollars of flows and across the border into hong kong and it is benefiting many local businesses including Hong Kong Exchanges. Beneficiaries the amount of the insurance company. Thank you for that, zeb. Job cuts for citigroup. About to lay off 6000 people. At the markets desk. A different markets desk. We still have our jobs. [laughter] for now. Lets discuss the citigroup. We are seeing a continuation of the scene we saw in the last quarter of last year which is that are looking to cut costs and manage their expenses prudently. What you are seeing is according to people familiar with the matter, the bank is looking to eliminate between 200 and 300 jobs. Of itsanslates into 2 global workforce. The cuts come from their global unit. It handles. And bond trades. While the company is cutting, a spokesman from the firm said we are adding some talent strategically. Earnings are out tomorrow. Do we expect this be announced . Acquitted a analyst we are talking about, the expectation is a yes. Because they have been doing that for the past few quarters and they comment on the workforce. What we know is the cfo told investors the last month to expect trading revenue to fall into the mid teens. , expected tonue hold up to fix in,. That is sufficient with the top of banks. Well show the bank has been year toer the past date. We are off over 12 . Expect clarity toomer on the Earnings Call from the company. On their clarity Earnings Call from the company tomorrow. Months sincen six it is aller has said new chinese target. The shares kept rising. It has turned in the short term. The details on this. It was. On friday. that is after the results came out. Basically leaving investors of more disappointed. They came in at . 22 per share for the whole quarter. That is quite a big mess as well. Investors were already anemic. Because of reports from october. Mobile was a fraud and had miscalculated sales. Ile isst 70 of nq mob surreptitious he said in a report. Investors have been uneasy. Nq mobile is working hard. Pretty strong words. Muddy waters, was strong allegations. Le has been nq mobi working hard to prove it is a not have and it does issues that muddy waters have been talking about. [indiscernible] revealby the fact it did an accounting error. It is revised in the three months. They were saying that there were clerical errors. And were overstated by miller 350 a by nearly 350,000. But nearly 44 lost in october. He does have a punch. To see the results of the internal investigation. File theirhey will annual report. Thank you indeed for that. Nq mobile. Other top headlines. The owner of the biggest futures market is being sued in chicago. They said cme group sold information ahead of other investors. Cme said the suit is without merit. All investors receive information at the same time. China is strengthening its grip on a couple of markets. A group is by a copper mine in peru. It is getting 5. 85 billion. Its what help glencore with final approval to take over the stop china is the biggest buyer of copper and accounts for half of global demand. Sony may recall thousands of laptops because of the heating off of batteries. Panasonic, the potential recall comes as the ceo looks to revive the the companies and restructuring and job cuts. In tokyo. Ain the euro sliding. Does the eurozone as iraq he said need more stimulus draghi said need more stimulus . We will look after the break. You are watching on the move coming from hong kong. We are expecting some bigger names from the u. S. As the headlines, for banks and tax. Guess coming from banks and tax. Big names coming. Heard center, we have from wells fargo and jp morgan. Citigroup reports on monday and bank of america am American Express on a wednesday. Morgan stanley and Goldman Sachs in a short week. Markets will be closed for the good friday holiday. According to a bloomberg surveys, chavez from the five biggest banks probably fell to 16 billion down at 4 from a year ago. The frayes are joining include tech giants google, ibm, and General Electric as well as cocacola and pepsi. Maybe a short two week, but certainly packing in a lot in the four days. Twochair janet yellen have speeches planned. One of tuesday in a vent sponsored by the atlanta Federal Reserve a while before the Economic Club of new york. The second speech before the Federal Reserve releases is the age of book summary of economic weeks before its policy meeting. A retaila includes sales. According to a survey, we likely sign up take in a march boost about the warmer spring weather. The same story for housing and building permits. Initial jobless claims on the other hand, economists expect to see a slight increase in the unemployed. Well have more news right here on bloomberg television. Back to you. Welcome back. A check of the fx markets. A next guest greg gibbs is strategist at rbs. Thank you for joining us. Lets start off with arguably the most important move, mario euroi implying that the would mean a more easing. How have your clients and your team this morning we acted to that . I think it is pretty these are strong comments from draghi. He is not a man who mixes his own words. It is clear there is a message in there that we should expect more policy. It is the case that the market has this type of price in it. The policy easing expectations is improving confidence in the periphery. Providing support to the euro. Farmarkets driving the euro on the story. You are not expected to be weaker this week. Implications that in the negative deposit rate. Currently, the cash rate have creeped up. Range of in the different policies as they may take. To tiepossibly trying the negative cash rate. They would like to do liquidity and some type of of asset purchases. To the Banking Sector which will push down cash to where it is in the u. S. And japan. They will continue to hold down the possibility of negative cash as well. What did you advise your clients for the best trade in the eurozone . I think it is a very short term site in europe. Deciding the conditions of the pearl river he and the modest recovery that is happening. Y and the modest recovery that is happening. I expected to come off a little. It will probably be around 1048. You mentioned the ukraine and china. The gdp out in china on wednesday. In your research, while china is still down, you have one report about chinas property shares the risk. How big a concern is that . A very big concern of mine. I think that china is probably economyer one and its does appear to be slowing. The property sector, which we do it details later this week, does look to be peaking which is an important factor. It was a big factor in the downturn and the u. S. Economy and a 2006 and 2007 leading to the Global Financial crisis. It puts a strain on china. A big issue remains and continues to keep me looking to the downside of currencies this year. Arguably, china is slowing down as you said. The aussie dollar has the most to gain. How do you forecast . What is your advice to clients . I think, you should be look at it this period of strained to be shorting the currency. Above 95 for instance on the dollar. The dollar, we are getting increased carry over trays. It will be stable from the time wellbeing. The house in the market is very strong. In fact, it has been supported by foreign investment. China. Ing from you see two sides of how china is affecting australia at the moment. Over the course of the year, the downturn in the commodity demand will be the deciding factor for currency. Now. Is report i am reading , chinasy again currency in an unsubtle market has eased off a little bit. In is the impact on the u. N. Regard to the fx market . We have not seen a strong fallout across the Global Markets from the weakening and the chinese currency. As you mentioned, chinese currency has been steeple stable over recent weeks. That is a recovery in a lot of those emerging currencies. And it helps with a positive outlook. The fact we have a more stable currency. , it still embodies some of the risk of which is coming from china. Perhaps, more consistent weakness with the chinese currency could unravel some of the borrowing which china has been doing over recent years. And it contributes to some of the stresses in china. We need to continue to watch for evidence of financial strength. What are you advising your clients . But theult question, best trade and exit price in short term or what ever you think is the best range . Yeah, yeah, it is incredibly difficult right now. The current trays which are quite popular because of the conditions from the u. S. And japan and possibly from europe. You have increasing risk coming from the ukraine. It is a very difficult environment. I would be looking for basically more range which is possible we are seeing this year. As ive mentioned, i would be looking for the timing. Possibly waiting for evidence of Financial Stress in china to reduce. That is on the agenda. Also look for a positive view over the coming year. Again, it is a timing issue. In theseeing a recovery u. S. Economy. Eventually, it will play positive for the u. S. Dollar. Thank you for that. Greg against. Joining us from singapore. The 6 metals close to billion and copper. Is it worth the price tax . Well put that question to our next guest. He joins us live. Welcome back. Agreed to pay 5. 8 5 billion dollars for a copper mine in peru. Our guest joins us. Thank you for joining us on the story. I appreciate your time. You are paying top dollar. Is a high quality assets. For some saying paying too much, what would you say to them . Fact we havey the done eight months of Due Diligence on this, we have a pretty good feel of the lowcost operation. 00 tons a year that put us and the top three of world production. Below0 years and it is the dollar cash cost. The question is potential along the line relatively small amount in that area was up area. Howd do you put a value on that long life . We expect to pay this in seven years. How much mores, is left after seven years . How do you put a number on that . Or we say we have done our modeling and we believe it is not a bargain. Certainly glencore is a top seller to deal with. That is what has taken so long. We believe we have came up with a price that is fair to them and to us. What was the Sticking Point . What made it take so long . I think glencore obviously had a few of a value on it and we had to do our work and we had a 50 complete at this stage and there is more to complete and of the project. Let core and ourselves a know there are risks in a completion. Glencore and ourselves a know there are risks in a completion. How do you put a value on those risks . Those are what the discussions have been about. About 2. 4 billion left on the side. You have so much potential there. What is the potential mr. Michelmore . What did you believe would stop production in 2015 . Saylencore would certainly that 2015, we have our views on what it will cost to complete and the timing for that. We do not have the keys to the operation yet. With a number of months to be able to complete the transaction. During that time, we will be on the ground and much closer to the operations and Construction Side of that. Well have a bit of feel by the time we complete and will be able to give the market our review on the timing. Final question behind this is the huge engine called china, how do you see the demand for copper Going Forward . Will it be consistent . Side, wek the demand see china is consistent. Last not as tough over the couple of years. There are 600 Million People in china. We certainly know that the government is very focused on getting those people into public theing and into jobs and infrastructure around that, all of that needs copper. We know that is think is going to be worth zinc is going to be required. The question has been the supply side. With all of these project coming on, we are starting to see a number of these projects cannot get their funding are they are not coming on to the level of reduction that they originally thought. Thank you very much. Andrew michelmore joining us. The deal to buy the copper mine in peru. The u. S. And russia clash in a Security Council meeting on ukraine. A sharp fall for sharp. The Electronics Maker is taking a hit. The business of golf. The indoor club in the center of manhattan. Accusednd the u. S. Have each other of fomenting unrest in ukraine as the un Security Council met in emergency session. Moscows investor says the west and kiev are behind the instability, while the u. S. Says russia only has the power to create that situation. Our u. N. Correspondent. What else has been said so far . The Russian Ambassador to the United Nations said the reason why russia called for this emergency meeting was to express concern over the situation that he said was getting out of hand in eastern ukraine. In the meeting, he urged the u. S. And has western colleagues on the Security Council to call them toaders and urge pressure ukraine to call off a deadline that was issued by the acting president of ukraine. Which actually will happen in about 30 minutes local time, basically was an ultimatum for the prorussian protesters in the southeastern region to lay down their arms or face antiterrorist operations by the ukrainian military. The Russian Ambassador to the u. N. Said, if the western powers do not take any steps to have the ukrainian authorities call fourwaydeadline, then talks scheduled for later this week that is supposed to negotiate a political outcome in ukraine will definitely face problems. The Ukraine Ambassador said in fact ukraine has demanded, russia leaves us alone, i quote. In response, the Russian Ambassador said, its not russias fault that ukraine is now what it is. What has been the response to that across the meeting . Twohourlk of this meeting that began at 8 00 p. M. , the bulk ofril 13 it was exchanging going to each other, saying, russia denies any involvement in the armed groups in ukraine, whereas the western the ukrainian by ambassador saying, thats not the case at all. That russia is manipulating ukraine and the security , sending in Ukraine Special forces, etc. That was most of the meeting. However, the Russian Ambassadors main target audience in the meeting doesnt appear to be the ukrainian ambassador, but again the u. S. And western envoys, to deliver a message. He made an explicit call to the u. N. ,mbassador to the samantha power, that she urges Vice President biden to phone ukrainian leaders and tell them to call off this deadline. What can the west realistically do apart from sanctions . I think that is the question they are trying to answer themselves. The u. S. Ambassador to the u. N. Samantha power said, if russian actions in ukraine continue this way, the u. S. Would have to consider more sanctions. I think thats a discussion that the eu Member States are having amongst themselves. At this point, i think the developments over the past they have been so fastmoving that you first need to see what happens beyond this deadline that the acting ukrainian president issued yesterday and see where it goes from there, and whether the political process is later this week will be impacted. Thank you for joining us, our u. N. Correspondent. Zeb looking at markets this monday morning, april 14, and the impact of any selloff from the u. S. Equity led to an early selloff or stocks across the asiapacific today. The mario draghi comments on the euro, impacting trade. We continue to monitor those developments in the ukraine, as you reported with the u. N. Emergency meeting. Lets take a look at equities. Shares in shanghai and shaw and hong kong, trading lower today. We are following that mmg acquisition, acquiring the las b ambas mind from glencore. We will continue to follow that any impact on commodities. Look at the asx 200. This is what we have among those stocks moving. Amitil continuing that decline from friday. Friday, it fell to a fiveyear low on a profit warning from the new ceo, allison watkins. This as investors say they were caught offguard. The shares falling. The main amitil, cocacola bottle or in australia down almost a 5 . The nikkei 225 has been swooning between gains and losses. Active,makers have been including suzuki and toyota. In brewery space, sapporo brewery is up over 3. 7 . Watch for shares of sharp. They are big decliners today. Sharp down on the order of 8 in tokyo. Lets check in on Southeast Asia. Jakarta continuing to trade this morning. These are the key movies movers to the upside. We will continue to watch this market, as well as emerging market currencies. We have seen this move in the euro, and we are also watching the yen on this risk aversion, some of the geopolitical, other volatility related the volatility index is in the United States, the vix in the United States, and it has seen a spike in recent days. What they call the fear index. Thanks for that, zeb eckert on the markets. A trained tie up between trade tie up between hong kong and shanghai. Who are the winners and losers . For more, we are joined by tim craighead. Be on the markets, what are the implications now across industries . I mean, its pretty fascinating. You mentioned the hong kong exchange, certainly the implications carry much further. If you think about it at one level, you can look at the ashares versus the hshares. The locally traded shanghailisted ship is stocks versus the Hong Konglisted stocks. There is a relationship over time. Sometimes the ashares have been at a discount. Recently, they have been trading at a discount to hong kong. We are at the lows from a historical perspective. If there is demand for mainland shares from Global Investors trading through hong kong, youve got the opportunity to possibly see in this discount see this discount narrow or possibly go the other way. Its also interesting to get about mainland investors looking for opportunity and hong kong. There are certainly industries in hong kong that you can invest in that you cant on the mainland, things like luxury goods or Technology Stocks in some instances. The gaming companies, for example, all traded in hong kong, not in the mainland. Things like that are items that all analysts across industries are considering from the standpoint of potential implications. The mainland. Ed taking a broader look at chinas stocks, you commented about the roller coaster and the shift in leadership. Tell us more about what you are seeing on those two levels. Intriguing. If you take a look year to date, we have seen the msci world broadly speaking trading a little less than flat. It is down a couple of percentage points. You will recall, there certainly was that growth scare in january where everything around the globe came under pressure. What intriguing about china at this point is we didnt just see the recovery back as we saw with the world. We had a roller coaster, down, up, down, and now back up again. With this latest rally, its close to the developed market levels, which is pretty intriguing, especially given the conventional wisdom that through a lot of this year a lot of focus has been undeveloped markets as opposed to emerging. The other interesting thing, what has driven the china recovery or rally as of late has really been a rotation back to the old economy, things like financials, materials, energy. They have really driven this recovery. The areas that were the big winners of last year and early this year, such as technology and health care, have actually been coming under some pressure. You can see that in this chart you all have pulled up. Yellow and blue at the top, technology, health care, coming under some pressure, and you can see the old economy stocks are rallying the last couple of weeks. If i can, what is your thought on why this is happening . What is the catalyst for it . Can this rotation be sustained Going Forward . Question. The key to us thatesting this latest shift in rotation occurred right around some important initiatives being announced, such as preferred share issuance, which could potentially raise capital for banks. Pacific takeover rivers, essentially shifting its headquarters to hong kong. On from a series of initiatives certainly that have come out from the third plenum last autumn and then the mpc earlier this year. Mosaic of change occurring. It seems like maybe this shift in rotation has something to do with that. Valuation, at the right now the Technology Stocks and other growth areas certainly still trade at a pretty significant premium to the old economy. If the government executes, if investors believe there is sustainability, valuation would not appear to be a hurdle to this rotation having some legs going for it. It all really boils down to, is reform and opening for real . Are we really seeing this mosaic of change . The bloomberg industry analysts, we are seeing a lot of evidence of that at this point. Tim craighead from Bloomberg Industries joining us. On the bloomberg terminal. You can read all of his teams reports, as wells. Chinese money is changing the way global m a deals are valued. Her Firm Chairman guy hands says china could be the key to the further rejuvenation of europe. Europe was still sort of inck in ground stuck groundhog day. The banks continue to try to get better. The things which are most attractive to me are what we have described as a zombie companies, which have been sitting in bankcontrolled for several years and are now storing to come out. A bill murray reference. If he keeps on waking up on the same day over and over until he had some sort of personal redemption. What needs to happen in europe to get off this treadmill . You really need structural reform. It is not as extreme as the structural reform needed in japan, but what really needs to happen in europe is that some of the protections that are in place need to be taken off. We need to be able to take on youthr people, reduce unemployment, reduced graduate unemployment, and in doing that, we are going to need to let some of the older people move on and go on to retirement. What has been your discussions here with Chinese Business leaders, government leaders, as well, to get the chinese more interested in investing in europe . What i say to them is that europe is not going to collapse. Between 20092012 that europe was going to suddenly go is frankly nonsense. On the other hand, europe does need capital. It needs some enthusiasm, some life the chinese definitely have that. They have cash. They have cash, and they have markets. How would you assess the space of private equity right now . Massive changes in the industry since the depths of two guys bash of 2009. How do you see the pools of money collecting in china changing the m a landscape globally . They will have an effect. Firmsf the larger chinese are not as big as blackstone, but they are approaching it. They are getting permission to invest abroad. They will be competing for businesses, which they can then leverage in china. Because of their chinese connections, the price they are about to pay will be higher. In certain sectors, you will see an increase in price, and frankly, you will see some of the western firms just priced out of the market. As they are obviously looking for strategic commodities, as well. Canada,ed assets in australia, the United States. Wheat producers. Exactly. We have a very large cattle farm in australia. We are pleased about the fact they want to buy these. Is it on the market here . Not at the moment. [laughter] but you will listen. I will always listen. A good interview with british financier guy hands. That was stephen engle. Up next, going on a shopping spree. We will look at why retailers are investing in the cloud when on the move returns. Welcome to cloud cover, our series on cloud computing. This week, we are tackling the Big Questions about what the cloud means for shoppers. There is good reason why more and more retailers are investing in the cloud. Research,to forrester total Online Retail sales from just five markets, china, india, japan, south korea, australia, that is expected to grow to close to 400 billion from close to 400 billion dollars last year to 850 billion in the next four years. How is the cloud helping you shop and retailers sell their products . Sportswear manufacturer under armour has occasionally faced unusually high traffic on its website after ad campaigns. This sudden rush essentially means an overloaded website. We all know what that means. Its slow down browsing, potentially driving a customer away. However, with the cloud, it essentially allows the company to raise capacity in just seconds. The cloud helps with cyclical spurts so you can scale up or down whenever you need to. A chinese sports brand uses personalized campaigns. For instance, if they know a customer has bought tennis shoes and tennis clothing before, the Company Sends them a special promotion. They can offer these tailormade discounts on tennis products endorsed by a wellknown tennis player to encourage them to make additional purchases. Analyticses private to determine how long the customer actually stays on a particular website. From that data, kids 21 has been able to see what products are most popular in a particular session. If a customer stays on a particular page, the system generates personalized product recommendations based on personal interest to nudge andomers to pay more towards further purchases. There is a slice of the cloud for serving up pizza. Dominoes in the u. K. Uses the cloud for development. Whether it is software for getting toppings right, whether you are a fan of pepperoni or delivery, even faster the pizza maker uses the cloud to experiment on what may or may not work. Ats just take a closer look one retailer here in hong kong that is using these new technologies to help them keep their eye on the ball. While the players battle it out on the field, on the sidelines its a battle to attract merchandise sales. One way to be on the ball is to track it on the cloud. The best place to understand it all is away from the maddening crowds right here at thekukri store. The official retailer for the sevens migrated its pointofsale system to the cloud, and since then, tracking sales has gotten a lot easier. The stadium at hong kong is about 20 years old, and the technology within it is quite poor. We have about 670 booths. We wanted to be able to see exactly what was going on both to do it. The only way of doing it was moving to a cloudbased solution. The stadium simply did not have the technology to link everything together. Uses cloud services. One benefit is the cost compared to a proprietary system. Another benefit is flexibility. When we go to Something Like the Hong Kong Sevens, there are literally 40,000 people in the stadium. We are selling tens of thousands of items across only three days, probably about 20odd hours. We have a huge rampup in that period of time. We need a system that can cope with lower dividend a demand but also can go through the roof when we need it. I want to see how your pointofsale system on the cloud works. Lets say i want to buy this Hong Kong Sevens shirt. How does it work . Youve made a good choice to start with. We have a barcode scanners. Everything has a scanner. We do that, and immediately like magic. It comes up into the system, telling the size, the details, everything, and the price. Obviously, i hope you are going to buy more than one item. Pay. Just simply click we have all the various methods of payment that can be made. How do i know that this purchase backs up to the other purchases you made of the day and perhaps the week . Its thedashboard. We can look at its the d its the dashboard. It tells us the total number of sales the past seven days, we can look at the products that have been selling, the most popular ones, and we can move into many other areas to look at, by booth, by area, what is selling. This is realtime data, a Strategic Point of view for knowing what are the popular products. That can help you with managing your inventory. Absolutely. For us within the stadium, we are selling tens of thousands of items over a short period of time. Restocking the booths with correct products, ones that are selling, is really important to us. At customer for us who comes to the booth and isnt able to get what he wants is probably a lost sale. Having the right products theyre all the time is absolutely key for us. Key for sales and key for fans. Mia saini, bloomberg, hong kong. We will have more on our special series cloud cover next week, but up next, we will stick with sports driven swinging into action and taking to the golf course downtown. More on that when on the move returns. Welcome back. A new Virtual Reality headset will go on sale at the end of the year. Quartex aims to give users a lifelike experience in the normal surroundings. We will be putting it to the test. A new type of of er experience. 3dre not a traditional Vr Experience that you wear and experience games away from your monitors. What we can do we can do that, but what we are really good at is taking the environment around you and creating holographic experiences. To delivers not just an original 3d experience. Our focus is to deliver the next area of entertainment experience. Spatial entertainment is where we can take space around you, you can without movies, gaming, anything you can dream and imagine, you can live out in your own space. Fertile tourism, training. It has a wide variety of uses. You can go to our virtual showroom and see the car youre going to buy. You can get that through true feeling of the car in your space. It is a platform. We are not just targeting the gaming space. We are targeting every vertical, from training to architectural to gaming. Pretty much anything where you can live out the space virtually, we are trying to tap into. We are trying to get mass awareness and mass consumption. That is it from on the move. Stay tuned for asia edge where we will recap the big stories of the day so far. The middle of the asian trading day. We are live in hong kong. This is asia edge. The top stories this hour, the u. S. And russia clash at a Security Council meeting on ukraine. Selling short and getting it right. The bet that may have worked for carson block. The cuts will not be over. Reports that citigroup is cutting even more staff. Im angie lau. Also coming up, ask the oracle. We will take a look at ceo pay and find out who was smiling all the way to the bank in the u. S. Last year. A little less lucky over in australia. Australians are told they will have to work harder for longer. We are going to take a look at the prospects for the lucky country. Driving through midtown, we visit the indoor club bringing golf to the city. All that and more on this monday edition of asia edge. Im zeb eckert keeping an eye on the markets. We are seeing stocks generally lower across the asiapacific today following that slump on wall street on friday. The nasdaq index with tech shares leading the decline, below the 4000 level, and it filtered through today. We have seen some volatility here. Japan, swinging between gains and losses. Across the region, declines for the hong kong hang seng, the shanghai composite, as well. Across the region, as Southeast Asia continues to trade, modest moves to the upside in jakarta as well as singapore today. A lot of Corporate Movement and a lot of action in the commodity