Another leg of the search for mh 370 which disappeared nearly two months ago and nothing has been found. Paul allen is with us from sydney now. Where do they go from here . The think that will be number one question they will be asking themselves. The chief of the australian effort, angus houston, this meeting is to figure out where you go from here. Officials are putting their Heads Together to decide what to do next. 58 days in and absolutely nothing has been found. They owe itn says to the families of the missing to continue with the search. He is confident that theyre focused on the right area. They announced that the Aerial Search for debris is done. Anything floating is presumably no longer. The search is now exclusively underwater with the submersibles covering 400 square kilometers of the ocean floor. Yete said, nothing found and this is now the longest search ever for a plane in aviation history. Thes a longer this goes on, more it will cost. Its a matter of time before the question of money came appear. Pretty high on the agenda as well. The search contract has been extended for another month. That cost 40,000 per date to run, an estimate that the bill could run upwards of 60 million. Its an uncomfortable conversation to have but it was inevitably going to, who would pick up the tag. Is closing the Family Assistance Centers on wednesday am they are urging the families of the missing to head home and wait for news there. Earlywill be some compensation payments but more money will be forthcoming and plenty more discussions about exactly who will pay for what and how. For that. Ou paul allen in sydney. Were going to get back to whats happening on this monday for the markets. Geopolitical risks persisting and we have a situation in ukraine which is red hot at the moment. Lets find out whats going on. A situation in ukraine is worsening in we will get more details in just a moment. Thely, it is overshadowing fairly encouraging u. S. Jobs number that we got in america. ,000 the best month that we have seen it over two years. Normally at this point we have about seven markets. Japan and south korea are closed essentially right now so the markets that are open getting their first chance to react to those u. S. Numbers and if you key Economic Data numbers coming up. Ervices pmi from china hsbc comes out with their own or read on services in china in about 40 minutes from now. Be out ofe will indonesia from noon, firstquarter gdp. The government is coming out with a more to mystic view of 5. 7 or 5. 8 the expansion figure coming from indonesia. I want to focus on the macro view. Sporadice a lot of violence in ukraine so lets get a quick check on how the currency markets are doing. It is a good gauge of risk aversions. Own dollars sterling still flirting near the fouryear high. One level you want to look 1. 6989, theis fouryear high back from august 2009. 1. 3867. Theugal is finally exiting Bailout Program later this month. Whether or not that fully reflects the Underlying Health of the portuguese economy is a different matter altogether. Theres a big source of debate still. Has not really budged. If you compare to about a week. Go, we are closer to 102 green means the currency or strengthening. For the for the end second straight day. Commodity markets, the big story is looking out for oil markets. Hey vn output falling protesters shutting down several oil fields in the country. 260,000 barrels at 1. 3ar back, we were million. Looking at gold and seeing the , 0. 6 rise today and geopolitical tensions giving them another reason to go long this monday morning. Back to you. We are getting back to the violence in ukraine and kiev admitting they are essentially now dealing with a civil war. The west is calling for calm. It . People ignoring going towards the third biggest city in ukraine, odessa. Port city. Is escalating the tension significantly. Prorussian militants are attacking the Police Station. Where one third of the population is ethnic russian. Its a pretty intense area violence has spread to. Police are free because of the attack on the present and Police Station. The spread of violence does impacts. Prorussian separatist were also killed over this. This is the impact of the violence spreading run east to odessa, the border. Its very crucial and clearly raises the concern flagged for the area. What are the russians and the est saying . The canadian spreading more sanctions on russia. Vladimir hooton says hes extremely concerned about what has happened in odessa. People are calling into the kremlin in despair, thats what theyre saying. The kremlin says theyre getting thousands of calls from your cranium seeking help. They would say that, wouldnt they . They said they are there to help to help their people in ukraine. The u. S. As troops are being mobilized. More Russian Troops are there on the border. The concern is where this will go. The could change exportimport outlook. Definitely a concern and thenitely escalating violence again. Tempers flaring. A city where, again, one third are prorussian, ethnic russians. Will be getting very intense. To anand Angela Merkel have been talking on the phone. David cameron talk to him on the phone and has been calls for a second geneva meeting. Portugal going to exit the Bailout Program without putting any cautionary credit measures in place. Lisbon has its first bond auction since requesting a rescue in 2011. They said they have recovered credibility. Greece is the only euroarea country still part of an eight group graham. Has decided went will exit the Bailout Program without requesting any precautionary loan. After long consideration, we concluded this is the right choice of the right time. The china index of Service Industry rising in april coming in at 54. 8. Upside from the figure from march, 54. 5. We will be on the economy with the latest survey. Those regain figures as we get them for you. Australian freight operator offering to buy iron ore company, one point 3 billion u. S. Dollars, a 39 premium over the last closing price. They were surging the most in Something Like five years. Do we have those figures . They are up 30 or Something Like that 36 . R straley a currently trading after profit was up 8 cents after reporting an 11 increase. 0. 9 . Loan growth and Money Management changing results. Lets have a look at those on the on the way down after they reported losses on friday. Is the second Consecutive Year for the carrier in the red. A milestone in europe and the recovery. More on the portuguese story after they said they would not need further help from the bailout members. Running the latest view on the health of the chinese economy and about 30 minutes or so. Hsbc out that the latest survey. The slowdown there is affecting economies near and far. Growthng goals in numbers later today. Theyre looking to offset. What is this all about . We get the answers now from haslinda amin. How much do they really need . 350 Million Dollars is what they are hoping to raise and the plan is to increase funding from state backed companies by at least 60 . That will help only help to thestart projects across country roads, power plants, and trains. Nnfrastructure is a well know story. Now theyre looking to its neighbors to help fund its development. Off to japan, hong kong. He has been unable to fulfill a promise to build the countrys infrastructure. At this graph. Investors are deterred. The lack of infrastructure hindering interest. The economy slowed to the slowest pace since 2009. Firstquarter numbers do later today in the market forecasting a slowdown. Structure inhe 2010 to provide longterm funding for construction. Shareholders include the government itself, world bank and there are some terms here. Financing limited to maximum 35 of each project. Maximum loans of seven years. Big plans for new airports and train lines, as you have been alluding to. Election promises. Whats the likelihood of this actually becoming a reality . To be fair, there is political will. They want to expand 10 small airports and expand along the island of sumatra. Warners are now allowed to own as much of 49 of air warts. 100 of power plants built under publicprivate partnerships also. Exists but they have not been successful so far. Term endsents second this year and a Jakarta Governor leads in opinion poll to take over the position but has yet to detail plans on how he plans to take on the challenges of the economy. Little of the expansion plans in the country. We are joined by Michael Mccarthy in sydney. Thank you for joining us. Just to get a view of whats going on there in indonesia and really looking ahead to china as well. Where are we now with the growth situation . Many are starting to talk about a hard landing. I would question who are crawling those for a hard landing. This story gets around despite the fact that there is very little empirical evidence to back it up. Yet the rumors and concerns persist. At this stage, we have no numbers to back up this idea that a hard landing is coming. Of thee track record economy, no reason that its about to occur. Lets kick it out to whats going on market wise. We have a stellar markets report and you look deeper down to the Participation Rate and you freak out. Is that why were seeing a lack of conviction in the dollar and quities . I think thats part of it. With the lack of wages pressure, a flat performance despite the falling unemployment rate, there are still plenty of slack and the market and i believe thats the real concern. 12er employment dropped from. 7 to 12. 3 indicating there is still plenty of capacity to start looking through the line in the sand of 6. I percent. From a risksue asset perspective is the high levels we are seeing. The u. S. Market still near record levels. Investors remain cautious despite is very good numbers. I guess it will take quite a change traction get aims moving along in any meaningful direction. Dollar . Ou make in the has the strength of the way because of the strain . A clear positive trend. Markets are positioned ahead of it. You saw the big hiccup in fortility with a 1 range the euro, gains for the u. S. Dollar all given back largely because of the prepositioning ahead of the release. Newsts turn to some good now coming out of portugal. They are exiting the bailout with no per cautionary credit line. Greece is the only country still receiving this money. It does appear that the last of the crisis here is fading. Working without a safety net on the high wire is a high risk scenario but the confidence expressed will outweigh any concerns about the risks. We are not seeing a great turnaround in europe that what is diminishing risk. Investors have responded accordingly in the strength of the risk markets of their suggest your hand participation continues to grow. Would you buy portuguese bonds . With the price . Thats the key issue. A lot of the risks are not reflected in the current levels for portugal. Assets in favor strategically, im against them generally speaking but particularly given the rallies weve already seen, i would not be buying them at all. Have a great week there, mike. Pessimism only offshore. The latest take on the sliding r mb. Im david inglis in hong kong. Lets look at the fx headlines. The worsening situation in ukraine pushing some investors to lead on the side of caution. Violence erupting in more cities in the east and south. Ukrainian forces launching their biggest assault yet to reclaim some territory from prorussian rebels. Kiev says it is essentially war. Ining to china, improvements the central gauge for services. Pmi risingturing rmb near the highest level in 10 months. The indonesian economy was byected to have expanded roughly 5. 6 . The countrys finance minister says the number was probably 5. 7 although he does not expect to see growth exceed six percent this year. Quickly have lets a look at what theyre doing right now. Call it academic strength here. Offshore rmb. 6. 2557 and those of the stories driving your fx story. Staggering. Rs are 500 meters high and they faced 2046 steps to reach the finish line. The mens race was won by an australian sender ends runner but an Italian Mountain climber taking the womens event. A narrow win for apple. Find out more. Portugal exits leaving only greece still needing help. The latest health check only chinese economy and minutes away from the view from hsbc. The competitive rivalry gets out of hand. In hong kong, getting shares on the screen as well. David, what is guiding Investor Sentiment . We had a fairly encouraging jobs number from the u. S. In the same time, we had heightening of the risk and geopolitical tension in ukraine which is a bit mixed through the region. Today, japan and south korea as far as the health gauges are concerned. Its a big week as far as rate decisions are concerned. Five Central Banks are coming out with centralbank decisions all on perhaps where they are. Oing as far as Monetary Policy here are the opening numbers. A bit of weakness. Lets see what those levels are right now in the opening minutes of trade. 2021, down. Hang seng about flat. That is up about 0. 5 . I would assure the chinese currency and in particular the. Ffshore you have Morgan Stanley and youre looking at a oneyear chart. See the very sharp relative weakness. It is not something we are accustomed to seeing. Their stanley is advising clients to stay long on the. Ollar against the offshore rmb theyre expecting a lot of the taiwan banks to sell the currency after the financial regulator in taiwan cracked down on derivatives product. That could be another reason for you to go short on the offshore and go long on the u. S. Dollar. Midpoint the pboc said. That will push the dollar you uan lower. On that note, back to you. Ireland, spain, and now portugal. Portugal says they need no more bailout money and leaves greece is the only country still needing the life line. We looked at ukraine a little while ago. The catalyst for this, exports have been going up, encouraging. Two was a very successful on auction. They issued 750 million euro. Is one of the lowest levels it has had for quite some time. Its the lowest level since 2006. It was 18 . This is a lowest price ever recorded for the 10 year, hence the success. We now portugal exiting the theram due to end may 17 bailout was back in 2011. Aces the confluence of Financial Markets has returned. Portugal returning to financing itself in an impressive manner, from the german finance minister. Heres the portuguese Prime Minister talking about why they are doing it now. We have financial reserves for one year that can isolate us from any external fluctuation. Rates are at ast historical low. We have an external surplus, something that did not happen in decades and we will continue with the budget rigor because that is the will of the government and the supporting parliamentary majority. They do not have the support of the ratings companies. They are all stills saying it is junk status. What are these Rating Companies looking at then . It has a clean bill of health, but you have to look at the real state of the economy. Hat people say about that . Debt is higher than in is. 192 129 . Unemployment is down but it is still very high. Still veryployment hard. The jobless and the magic word that. Those are big concerns. Not me making any change to the junk while that is hanging around. Thats a concern for the time being. Worrying is they are not asking for the precautionary line. Thats the point. Thats engendering the confidence. John dawson there. Lets take a look at the patent case with apple and samsung. They were looking for Something Like 2 billion. Samsung is going to sake as apple did not get anywhere near the 2 billion they wanted. If you are taking a look at what they were hoping, it was over 2 billion and they just got six percent that. The jury in a san jose, california, courtroom saying they infringed two of the four patents on the table. One is the ability to make a call when youre already on a website. The other allows to unlocking the device through gestures. Account of the claim the most valuable, applications to be updated while you were working on another application. They lost the claim over a do a universal search for information with a single clicked. Apple infringed on one of the two samsung patents. As aey will claim this victory because they did win but it was ever so narrow. 40 for was looking for every phone. It was basically a slap on the wrist. Its a good way to look at it. Cap categorizing these ongoing disputes, nothing has been to world shattering that has destroyed market share or even investor confidence. I want to know it will go how far well go to cover litigation expenses. It just about covers it. Maybe they gain a little. Now both companies will request the competitive models are not sold in the united states. The problem when you look at it from apples point of view is that the case and deciding products in question are no longer sold in the u. S. Of the s three. And below. The s four and the s five are not covered in this. Even if they win an injunction, most of the devices that should , theyre not sold by sam sun in the u. S. So its interesting to see what will happen. No doubt this is not the last of for both of these companies. If you were a shareholder, you are probably doing quite well. Opal samsung and apple close to 600 . Thats one corporate story weve been following for years. Now we have a look at some of those other stories making company headlines. And steady for australian banks. Profit rising eight percent after reporting an 11 increase. Loan growth and Money Management fees were the result your siemens close to selling its logistics and airports business. Wilbur ross. They may sell as early as this week. Plans to sell the unit making baggage handling system was first announced two years ago. China National Nuclear power is set to be looking to raise at least 2. 6 billion dollars in an ipo in shanghai. The money will go to four products to help ease an anticipated power shortage. Those are the company headlines. Way,ill on the manufacturing data from china, hsbc figures coming after the break. Numbers force beijing to rethink its stance on monetary stimulus . Your back with on the move. Go its impossible to us to choose a stock bubble. Others say we have breathing space. It is the subject in todays Global Outlook. Cast your mind back to the. Com selloffs and this year replaced by social networking site said today. Like the pre2000 selloff, valuations are dangerous high. Trading at 943 times earnings. 91 times for facebook and 500 times for amazon. Boeing, 17 times, rio tinto, nine times. That, to me, is perspective. The s p 500 hit its highest level ever back in march of last of 2007. The peak this is despite income not actually recovering to 2007 levels. Risen but person has it shows you therefore significant difference. Why is this happening . Your member Alan Greenspans arning of exuberance . Fast forward and we have quantitative easing. Let outis slowly being by what we call tapering. Is, therefore, little strengthen the underlying economy and investors know it and are quite nervous. The quarterly letter to investors, the chief Investment Officer says the s and p is already 65 overvalued and a signal for bursting is when it hits the mark which shows you the outlook and the snp surged since the trouble began march 2009. The index is 50 short of that level. They say income many times any time. Thats todays Global Outlook and im john dawson. News out of china, 48. 1, the take on manufacturing. , talking about the difference in the convergence with the official numbers. Economy is suffering from relatively weak momentum. It is suffering the problem of excess capacity. Reflected when we see these factory gate prices as well. It has been below zero for a long time. Substantially below as well. Why does that not translate into more practice in the economy . That is also why the new leaders , it is less from the investment. This is from the eightmonth low that we had at 2. 3 . It is mostly because of the basic facts. They wentld argue from bad to worse. Month over month rate is probably still negative. This deflationary pressure is still there. Its going to be there for quite some time ill china transforms itself. About the beijing authority going to start pumping more liquidity in the system, injecting capital as well but they are already doing that, arent they . Theolving the problem with same approach as before is only making the problem bigger so they are being very careful. They deliver the message, they say they are not going to do a very big stimulus. I think that is quite a cautious approach. Vale already seeing some loosening in the reserve rate requirement ratio. Intoll just extend itself urban ones gradually. Its possible especially if they get a sustained capital outflow. The market expectation is actually that there is the path of depreciation and that will happen. Where do we go from here . We think the economy will remain weekend at the celebration why does everyone say this economy is weak when we are talking about seven percent annualized growth . Cannot have 10 growth anymore for an economy of that size so naturally you ratchet down. If everyone is building up the same expectations, there is also some expectation in the market hoping that demand will remain really strong but it is becoming less so. What represents the recession and the hard landing . Below 5 but we think that is a very low case. Why a figure like 5 in your view . That means for a few corridors, the growth would actually be negative and that is possible for china. The implication for employment will be huge. Going to beably more than the policymakers can handle. A can be painful. Thats the thing. Maybe the pain could actually do china some good in the long term. It can force the government to reform faster. Its all about reform and a day. General. I from scoiete the number, 48. 1 looking for 48. 4, so further weakening when it comes to manufacturing reflected by the numbers we had a week or two ago. In the official data showing just a slight expansion there. Up next, an Office Taking open plan design to the extreme. A special report on the move returns when on the move returns. Move comingn the from you in a bloomberg hong kong. Openedsinesses have plans such as behind me here. One ad agency has taken things a step further by seating every staff member at the same table and here is what could be the worlds longest desk. Thanks when i was growing up, and never thought i would have the biggest desk or that it would be the main character of an office. Weve had the Real Community feel almost like a joining a club. We thought it would be fun if everyone could said that the one desk. We wanted the desk to be its own character. Your first view in this space is you realize the table further down the spaces climbing up and down. It curves and it moves in different ways and heights all the way through the space. The most affordable way of doing this was to use plywood. We covered it in all liquid process, white paint, and then epoxy resin. It is smooth and the underside is where you understand where it all goes together. It creates a lot of an informal gathering meeting spaces. It allowed us to have more areas to put books and items that really domesticated the space. One could say there was an inherent risk because it had never been done before and we had to go on a journey and hope that it worked but the overall cost equation was cheaper. Its all about paper. Being hardwired with your computer, not being a part of something dynamic. Who needs a desk . Frankly, no one. Need a you just surface. Its time to utilize that freedom. To the seas. Desks the extreme sailing season despite a huge crash here. The yachts were maneuvering ahead of the start. Then we saw this happen. Took place. On theghi had right of way but crash was so violent that the red bull bow went straight through the hull. Alinghi was far enough ahead to take the win anyways. Hong kong down by 1 and shanghai also after three Public Holidays down nearly 0. 1 . Up next, australia, china, malaysia, working out the next steps in the search for a flight 370. Details for the talks in the next hour. Were live in hong kong. Were live with on the move. Contracting again the chinese factory sector keeps pulling back. Stops in hong kong and shanghai on that news. And fighting spreading in ukraine. Pro russian militants gaining ground. And it does show the risks of a deeper slowdown becoming more evident. Hsbcs final figures for manufacturing last month. This is the private survey and as you say it signals that perhaps the deepest slow down the near, the manufacturing contracting the number 48. 1. Anything below 50 inside kates contractions. Check out the trajectory in march, the refiesed number of 48. We saw april, 48. 1 against a survey of 48. 4. It shows us in plain english is that Property Construction plunged in the first quarter. Cooling factor activity declining as well. And all of it expected to have an impact. The other thing is the previous months reading on this p. M. I. Data revised down. Its quite a lot of signs that get people worried here as well. What are we looking at . As s an important week china comes back from holiday. Thursday numbers expect to show a 3. 5 drop fopping a 6 in march. The exports continuing to be under pressure there. Were also expecting c. P. I. Numbers for april, consume irprices and Consumer Prices forecast 2. 1 . Were expecting Producer Prices though to continue to fall. These have been falling for months. I mean, it could be nearly two years the p. P. I. Number. Thats what we have. Again, further, further signs of well, overcapacity. Absolutely. And this is the price of goods that the factory gave. Its a forwards indicator of what we can expect for the sector in china. So those important p. P. I. Numbers are the latest clues on friday and trade on thursday. With all that in mind, lets find out how the market is doing certainly the investors in hong kong and in shanghai not liking these figures. Whats gone on here . In australia we did start out with this month with erasing the early gains. Youre looking at a oneday chart here. Were at 10 00 a. M. Hong kong time. 54, 46. 5,446. And the banking stocks. Let me show you. Its the banking stocks that weighing on the sector. Theyre down. About. 8 . Mostly in other sector groups and in fact, lets dig deeper and there we go. There we zpwo down in the order at 1 to 1. 2 . The mining stalks are gaining in todays . Lets see iron ore. The prices for iron ore. Theyre saying its about 105. Its the specific concentration iron ore thats going into the northeast of china. We may see a drop short term two to five u. S. Dollars but its unlikely the drop will fall below 400. We could see 115 to about 120 u. S. Dollars per metric time. Thats because of the seasonal demand picking up. They will get the financing they need to buy a lot of these Raw Materials giving the tight situation in china. And let me end with this, gold mining stocks getting a big boost. This morning or perhaps a reason to buy, of course, violence in kraine pushing up gold prices. 103 there we go with the gold price. And thats reaction from the gold mining stocks are concerned. Head funds rish have increased. This has been something ongoing since the beginning of the year. 1306 per ounce of the precious metal. And as david was alluding to there, the situation in ukraine responsible for the uptick that weve seen. People look for appear haven when it comes to gold. The Ukrainian Government admits that a civil war is taking place in their country there as well. You know, russias considering their next step. Yes, this is really quite tense because 30 of the population are russians. That therefore raises the bar. If it happens again the ukrainian Prime Minister was with g the city and and the grieving of deprids death and you have the storming of the Police Station where pro russians freed 67 imprisoned again protestors. The police in ukraine freed them out of their own accord and they said no, we stormed the place because of aggression. Well, thats brought on a very, very intense situation. Vladimir putin is very concerned. Kiev muls must not stop with their defenses. And people are calling the kremlin in thousands in despair. Thats the claim out of the kremlin. Meanwhile canada in the last few hours putting 16 more ssian sanctions on individuals. And they are struggling to maintain law and order right now. Odessa is a crucial city particularly for they have exports. Its the worst falling since february. The pro russian president. Well see what happens now. Russians are building up their troops in the border. There was a buildup before . Ok. I mean, do you know what, what is the latest from russia. You just mentioned a couple of things that theyve been saying. Eve had Angela Merkel talking to vladimir putin. Whats the reaction to this . They want to avoid sanctions. David cameron has called out of his own volition. Cameron wasnt listening as they wanted him to. They want him to renegotiate. Putin is like its our business. But putin has figured that the next step is coming. Bottom line. But again, clearly d aggression is getting quite out of hand and that port city will affect the gas supply. Its crucial against czechoslovakia. Thanks for that. Thats john. Of course, this is the story of the last two months. Its australian, malaysian officials meeting. Theyre going to decide and where to continue looking. The plane has disappeared two months ago. And absolutely nothing has been found. The hunt continues. There. See it were expecting a News Conference in about 20 minutes. Will have that live when it happens. The president visited again of the sea world feried disaster telling them it breaks their heart of what theyre going through. Officials say 244 bodies have been recovered. Weve got about 60 people still missing. Most of the victims are students from a Single School outside of seoul. 16 people have been killed. The loco motive coming off the line there at row ha. More than 120 people have been injured. Some seriously. And people expect the number of victims to raise. They do not know what caused the accident. India serves 20 Million People a day. Up next, its make or break time for asias economy. Were going to be finding out what he means. That is when on the move returns. Monday, may the 5th and these are our top stories. Portugal, without putting any precautionary measures in place. Lisbon held it first bond option since its 120 billion rescue in 2011. Greece is the only country still part of an aid program. The government has decided that we will exit the Bailout Program without requesting for anything precautionary. After long consideration of all pros and cons we concluded this is the right choice at the right time. Reserve officials are more reason to pan back. The unl employment rate meanwhile fell to 6. 3 . Freight operator arise offered to buy an iron ore company. What are they paying . Ell, 3. 9 billion. Aquila jumping on that news. It is c. D. P. Day. And joining us is robert suberan. Hes the cheeve economist of japan. The slowdown. Theyre blaming the chinese. Yeah, i think we should be expecting a bit of a slow down in indonesia. Were forecasting a slow down from 5. 7 to. 567 growth. We thip investment and export will be causing the slowdown. It is linked to china. China slowed down the effect on Commodity Prices that indonesian export will be contributing. Er picture for indonesia is not to get too worried about the slowdown but more stability. And as long as they can rain in the imbalances whether its the fiscal position and lone growth, i think thats what markets will focus more on loan growth, and i think thats what markets will focus more on especially with elections happening right now. How important will these lections be . You no, what needs to happen . And do you think there is really the political will in place to get things done . I think the jurys still out. So the risk is, it is another Fragmented Coalition government. The risk is the government is more populaceat are rather than commercial or yen tated. Indonesia is hat that takeoff point. The middleclass is getting stronger and stronger and so you need more sur ply otherwise youre going to run into bottlenecks like india has. This is crucial. The government really needs to do its part in enhancing supply. If it doesnt those imbalances are getting wider. Fall on the bank of indonesia, the central bank to have to possibly raise Interest Rates everyone further to contain the demand side if the supply side doesnt pick up. The reform side is most important for indonesia. And these elections results will be critical. Rob, what about, you know, what youve been saying in your latest report. This could be make or break year for the trend rate of growth for asias big economy. Its not just indonesia were talking about here. Theyre already down to china giving is p. M. I. Number we just. Thats right. I think, you know, in china as well, i think the focus is really on these more boring structural issues. But really china has to get on top of the oversupply and the property sector, the high debt levels, the pollution problems, inefficient state of enterprises. The growth model needs to change and unless that happens, the trend growth rate is going to continue to slide in the coming years. And the tricky thing i think for markets is to arrest the slowdown and potential growth means reforms that are painful in the short run. But its good in the longer run. And i think thats the kind of dilemma trying to face us right now. Were at a Crucial Point because the Property Market is really starting to correct quite significantly right now. Really china needs to take one step back in terms of easing policy a little bit right now to show that growth doesnt slow too much. Longer term theyre going to have to keep the tightening bias and reforms. So its hard to see chinas growth getting back above eight i think in the coming years. Thats obvious, rob. Really at the end of the day, you cant expect an economy to grow that sort of way. It has to. Ts a man churian economy. The question for china is do they do the right things in terms of the reforms . And you get a gradual slowdown if they dont. And they try to focus on shorter term growth. We might get a few quarters, maybe a year of growth pickup. But if these imbalances get worse, the high risk landing people worried about become more and more real. There is the story for china is it a gradual trend slow down pickup . Have a anything below she can see 5 in growth in a few years time for the chinese economy. But if it grew 5 now that would respect a recession. Theres a very good chance that that would happen this year. I wouldnt say very, very outside chance right now. By have a 13 chance that chinas growth slows below 5 before the end of 2015. Its not this year. Its next year. Thats nontrivel yall. Were concerned about the Property Market. All the indicators are pointing south right now. Yeah, indeed. Just give us an idea of how important the Property Market is for the chinese economy because you know, it could really be the one thing would take us to the economy as youre mentioning off the tracks. Yeah, i think thats right. So weve elevated it to the number one risk over the sha dope financing sector precisely because it has such a pervasive effect on the economy whether its through revenues to local government, whether its financing. I guess the other one is yum Stream Industries that depend on the Property Market, steel, copper. I think also collateral for bank wins. If you look at the property sector, the g. D. P. Is only about 16 . But if you add on all these indirect effects the value added to the property sector for the overall economy is about 1 3. Its very significant. And the problems are biggest in the third and fourth tier cities. And its very pervasive. So its harder for the government to control when theres a serious oversupply problem. Shadow financing you can roll over some of these trups funds where you can get them restructured. Its harder for them to do a handson for the Property Market. Thats why were quite concerned and probably a policy needs to be eased now to avoid this. Great talking to you. Rob from singapore. Lets show you what with ve coming up after the break. Tiko airways. At find out why were looking at tiger airways. Find out why its losing altitude. Well look at some of these earning stories. This week is a busy one for corporate japan. Lf bank out with fiscal year easternings. The company has been on a bold acquisition to buy sprint and looking at team mobile at the moment. Microsoft and sony expect today return to profit. Should earn 160. Nintendo trying to revive itself with new products and cost cuts there as well. And its toyotas turn to come out with its latest figures on thursday. Analysts are looking atability 15 in the first three months of the year. And the factor boosting sales along, of course, with that demand returning in china. Asia pacific markets. This is what weve got ahead of all those earnings over the course of the week. Ng sang tseng, it was weaker than expected and really made the situation worse was that the previous months number was revised lower. The con drax for the chinese economy has been worse. Shanghai also feeling it there as well. The taiex indeed and were seeing some weakness in manila and taipei. This is designed to increase communication between employees but one advertising took a step forward by sitting everybody at the same able to. Heres what could be the worlds ongest desk. When i was growing up, i never thought i would have the biggest desk or that a main desk would be the main character of an office. Barbarian group has a Real Community feel. Its like joining a club. And we thought about what would this need to be, we wanted the desk to be its own character. Your first view into the space are that people working in a table. Its climbing up and down. It curves and it moves in different ways an different heights all the way through the space. An affordable way of doing this was to use plywood. We would cover that until liquid process. And this apoxy resin so that the space that you work on is smooth and the other side you understand how this is worked together. It create as lot of gathering meeting places for people. Us to domesticate the space. One could say there was inherent risk because its never been done bmp and we had to go on a journey and hoped that it worked. But the overall cost equation was cheaper than Standard Open plan office. This is lrds about paper frankly. Being hard wired with your computer, not having any mobility, not being able to be a part of something dynamic. Who needs a desk . Frankly, no one needs a desk. You need a service. The whole worlds changing. Its time to utilize those reduce rather than them. Were going to head over to jakarta to have a look at what to expect. Its the close lunchtime break over in tokyo too. In and in and in and in an stokes is a falling. Online, hitting the right note. Growth numbers coming through pmi numbers coming out of china, hurting what is going on here in hong kong in particular. That was the latest piece of bad news. Hbcone claiming out of showing a deeper contraction. We have what is happening ukraine. Worsening. On is gold is also getting a bit of a kick up as well. Market you want to watch closely today. We do have gdp numbers coming out in the morning, perhaps later, closer to noon here. 5. 6 as the median estimate coming out of jakarta this morning. If you speaking again, are a bear, things did line up the way you would want them to as we kickoff off a new trading week here in asia. A fairly weak start to this week. Call. Is a close it is impossible to call, i should say. The signs for some investors out there, other say, hang on just a minute. [indiscernible] t com has been replaced with social networking site and gaming today. Social business networking website linked in traded 943 times earnings. That compared to facebook at 91 times earnings. Thing compared to more traditional names. Therefore the very dark the gulf of defense between tech and more established. Since last march, the snp has p has jumped. S an remember Alan Greenspans warning of irrational exuberance. Easing. Quantitative also on the rise is the prospect of rising Interest Rates. There is little strengthen the underlying economy. The investors know it and are nervous. The veteran fund manager who currently forecast the dot com crash sees it coming but not until the u. S. Election. He says the s p is already 65 overvalued. The signal for the bursting is 2050 margarethe here. 2050 mark right here. Plenty of concern for the markets. We are looking ahead to indonesian growth figures. Economists predicting growth will be pretty much the same as the previous year. Tell us more about these projections. The third biggest economy in southeast asia, indonesia has some growth slowdown. And chinas slowdown is contributing. Investors confidence in to be regained. China is indonesias biggest trade partner. It is also predicted to grow slower than earlier targeted. Gdp for the first 9 . Rter wellbeing 5. 5 he wont be expecting gdp to grow beyond 6 by the end of the year. Tightening on both fiscal and the other side will continue this year. Analysts also predict a better than forecast gdp data. You for that. Air. D losses and tiger in tiger air. Es pretty. Not looking in the first hours of trade, tiger down. Yesterday, looking even worse, down by 20 . Its looking pretty bad. Tiger air has had a turbulent time. Million losses the year before. It is in the red. It is running 16 of its planes through the end of march next year. That means eight planes will be clipped. It is also cutting unprofitable routes. Macau. G flights to isyou can imagine, tiger air a victim of intense competition. Just there are just way too many players. Demand is not enough to fill the seats. Is it true that tiger suffering partly because of a lack of a large hall market . Large home market . Toespecially compared neighboring markets like malaysia, the philippines, and tiger air has been trying to tap those markets. It doesnt seem to be working out very much for the airline. Tiger air has already sold 40 of its stake. Tiger Air Philippines is now mandala. Ng excess capacity with more budget carriers getting into the space in the last 10 years. Pray painful for tiger air at this point. Coming up next hour, a look at cloud computing. We are addressing the issue of security today. How safe is someone elses server . All the questions and the answers when on the move returns. Cover, ouro cloud take on cloud computing. When deciding to entrust all or part of your company data to a third party, the safety of that information is of paramount importance. It is the number one concern companies have about cloud computing. Of course, fears of a lack of. Rivacy and security those findings are borne out around the world as well. The main Reason Companies are not moving to the Cloud Security concerns. That is according to change wave research. More than half of the largesized companies and approximately one third of the smallermediumsize Companies Site security as their primary concern. Security areabout not increasing. They are not decreasing as well. 25 of companies expressed in 2011. This increased to 42 last year. To get more on what is happening in the security space as it pertains to the cloud is the chief technology officer. You highlight that there are three concerns, three threats that are going to be facing the cloud this year. What are they . The biggest thing is more focused around any a potential data breach or data loss that may take race. Take place. Moving information to the cloud is first and foremost. People tend to think about when is it stored, how about how do i protect that, where is it stored . We have seen an increase in vulnerability lays in vulnerabilities being probed. How do you know if one is more secure than another . If i want to go to the best hotel, i look at the ratings. A fivestar hotel means i will get the best service. Is there anything like that in the Cloud Security space . There is affiliate case for going out and see what the Cloud Service provider can offer, what kind of security controls they awful they offer. There are organizations or alliances that have been formed to ensure you can go through a checklist to work at if this is a good Cloud Service provider that i should be going out there and what are the risks around that. How do you ensure your clients that the cloud is secure and safe . Is it isggest thing more a case that the cloud is different from any security technology. Its more of a case how do we start to leverage existing policies. Its more of a case of ensuring do i actually have the right capability in place today . When moving onto the cloud, what types of information are they using . Have they gone through a data classification process to and to ensure that the information they put out there is personally identifiable or is it for the domain available . Your companys reputation hinges on your ability to protect consumers. But that is challenged by technological advances and the savviness of hackers. How do you stay nimble . That is an interesting challenge. Looking attantly what are the cyber criminals, what are they actually doing . We are closely other turned to look at what potential vulnerabilities are. At the same time, try to provide capabilities and assurances that they can start to apply the best and applying policies and technology as well. Technology is just changing so quickly. All theway of analyzing threats and throwing them into an antivirus database no longer holds. How do you use the cloud to help with this type of protection . The best way is we obviously leverage the cloud ourselves. The biggest thing from our perspective is embedding a lot of intelligence and the cloud. We try to look at how do we start to leverage the capability the cloud and use the transverse mentality by turning on every one of our pieces of technology as a sensor to feed all of the intelligence information. One organization can share that information with everyone else out there and that is how we try to keep up. Of thatre tha o realtime capability. What if a cloud provider gets hacked . The worstcase scenario is you information did actually have up there in that specific Cloud Service provider . What is the potential data loss or breach . Its more of a case of understanding what you put up there, what. Is the likely impact. What is the likely impact . Have we now given the keys to the kingdom a way to potentially a cyber criminal . In my research, i found this term, a dark cloud. Explain that time and what the industry potential is for that. Anticipate more threats to the cloud more than ever this year . The biggest thing with the dark cloud is more around we have seen cyber clouds ownraging, creating their you can starthere to leverage our platform to start to launch service attacks to a thirdparty. Where are going. To have to leave it there. There is a cloud over tasmania and lawmakers arent worried. They plan to upload Realtime Data on the entire island economy. To improve everything in tasmania, starting with food and drink. The peaceful vineyard looks like the perfect escape from the always on 21st Century Digital world. Look closer among the leaves though. These vines are online 24 7. Mostly, they talk about the weather. You can see we have another note here. Another node here. Down through those cables, if you look into the soil, weve actually got cables going into the soil. We are measuring soil moisture and temperature. The data is transmitted back to the winery and then 200 kilometers south to the university of 10 minutes of tasmania. An app is being developed to help with the next vintage. Once this is all live, we will be able to access the data from anywhere on a mobile device. If you got live date of when youre walking through and can say, ok, the soil moisture is you can instantly get some irrigation on their. Beif Realtime Data can downloaded from grapevines, why stop here . Data from an entire city or an entire state of tasmania . That is the next step. Collecting data on creating an economy wide. Ease and heart rate monitors have been developed for hard fish so changes of Water Quality can be accounted for in realtime. We count very heavily on agriculture. We are looking at new financial instruments. A whole range of new areas. It might take some time to get all the space data out on the cloud. A more immediate benefit will be vintage ofter tasmanian wine. More than a dozen dead after a train derailed south of mumbai. A look at some of the court headlines we are tracking corporate headlines we are tracking. Siemens said to be close to selling their report solutions business. Sale asmay announce the early as this week. A philippine brandy maker is looking to buy what mckay mackay. Te and at least 19 people have died when a passenger train derailed south of mumbai. The unfortunate accident taking place as we speak. Let me give you a sense of how large it is. Thatorlds Largest Network carries nearly 150,000 kilometers. It has 8000 stations. It carries nearly 24,000 passengers each day. Moved thet public ninth largest sector employer. Most governments do not [indiscernible] maintenance continues to be very poor on the networks. Czar introduced lines areduced new introduced. Exports, we continued to see her thick accents like this one. A quick look at what is going on market wise. A look at hong kong and shanghai. The states pmi data, we saw contraction and worse than expected contraction in that sector. People reacting negatively to that news. In sydney, if fallback of four. 1 . Nt straight times index off by. 01 . That is it for this monday edition of on the move. Looking at images of victoria harbor in hong kong. This is asia edge. Asian stocks turning lower. Hong kong leading the way down. The factory sector in china contracted once again. Weve got more violence in ukraine as the eastern part of the country slips out of kievs grasp. Clue. Days and still no discussing how to expand the search. We are expecting a live News Conference any moment now. Saving goodbye to the bailout. Eu program. Ts the onlineting the vine appeared of tasmanias plans to upload Realtime Data. Markets forhing the all of you as we take up the new trading week. No risk monday. Ukrainedevelopments in showing the situation is getting worse. Seeing really weak interest getting into stocks. Looking at gold, the yen, some of the sovereigns across the reason