Transcripts For BLOOMBERG On The Move With Rishaad Salamat 20140519

Evacuate theirto citizens following violent protests. To Chinese People were killed. Chinese people were killed. There was a demonstration outside the chinese embassy. They have suspended towards to vietnam. Tours to vietnam. Clashedthere when ships at cm we have this first talent and we have this firsthand account. Both countries claim territorial rights to these waters and chases and collisions. This crash occurred last week. SayVietnamese Coast Guards the boat was idle in the water when the chinese vessel ramped it. There was damage. No one was hurt. A radar screen shows that there area, which in the is more than double the vietnamese. Chases like this are daily occurrences. Both sides are ordering the other side it to leave. Isthis coast guard vessel seven not of miles away from the exploration rig that you can see in the background behind me. There is a ring around the rig. As closeon is to get to the vessel as possible. Typically, chinese vessels give chase. The turf battle at sea is likely to continue. Bloomberg. Here . T is happening what has been done to calm the waters. The tensions will subside on land. They were quick to disperse the protests that were planned and they will not allow them to continue after this. It has done too much damage to International Reputation and it is clearly in their interest to keep things quiet. They cannot allow the chinese to get away with this. On the other hand, there is not much they can do. They can chase ships and make harassments. They have to keep that up while diplomacy has time to work. Vietnam and china resolve this on the round . On their own. China likes to handle things bilaterally. They are more powerful and economically in control. Case, and you have seen the highlevel talks that have accomplished nothing. Not much will happen. Do is tonam needs to get their members on a more united front against china. Ok. To question is, what happens make beijing remove it . Hopefully, not too much. It is the middle of august before the monsoon season hits. At that point, they will have made their point. Their point will have been made and they can safely move aside. If you thought this is about the oil, there might be deals that can be done, and so on. If china is making a larger point to the United States about the waters in this part of the world, it will take quite a bit to get them to change their car to us calculus. Is in chinaputin this week. Do you think what happened in crimea will embolden . They have been careful. They have not come out in outright support of russia. There are elements within the Chinese Government who understand that russia is not the model they want to follow. This is not a rising global power. China benefits from being part of an international order. Hopefully, they will not think that Vladimir Putins strategy is one they need to emulate in the south china sea. President th korean says that she is responsible for the disaster that killed people. She failed to manage the operation. The victims are students in a single school. Indias leader says they are doing gods work. Nominated as Prime Minister later this week. Modi is seen as probusiness. Them winning a seat in the lower house of parliament. With the leader being john has the details. You just said it. The first story. He was a front runner. He did not win. Extraordinary that they are heading to a senior and critical cabinet post. Parliament ise of where they are a minority. 51 will have 245. Obama pushing through lows. Laws. He has a seat there and that is a good one to have. Government is one of the favorites. Clearly, the preferred candidate for Prime Minister. We will see what happens. Won on theon was promise of the economy improving. On the election, we saw stocks go up in a search. Won the majority and we saw the rupiah fly. Andhey pushed through decided. Clearly, inheriting jobless growth. All of this must be addressed. Up rupee, for example, is from the record low last year. He was put forward as the Prime Minister by the party. The rupee is now at a high. Of course, we can see the performance over the last few months. Better stocks so far. However, the defensive plays are out of the way. Deutsche bank and the construction stocks have benefited from economic recovery. Gains by the banks and their. There. S watch out for those in the open today. Up. Sbank limiteds have an important bsd capital goods index. All of the crucial capital goods. There it is. Thank you for that. Chinais no let up in after the government asked lenders to accelerate lending earning. We will talk about it. Over the past years, it was the case that beijing was trying to prevent prices from climbing up quickly and now, we see the policies in a negative. Take a look at the prices. That is right. Comparing march versus april. You have beijing and shanghai. Cities. F 70 just to go over what is contributing to the property slump that you see, a supply and demand issue. Providing more steep discounts to during homebuyers. It is interesting. They were trying to encourage lenders to extend more mortgages. That there saying market is on a break. That is what they say. I have that on the board. Reaccelerates to credit growth. Know whichlicymakers lever to pull. They know which one to pull. The question is, when are they going to pull it and how much are they went to pull it by. Thank you very much. We will tell you what we have on the way. The new government. Our next good says that the economy will have a slow process. The main benchmark is one of the bestperforming. Of ait may be the start longer gold rush. We will speak to find out who will drive the next phase of growth. Here is a look at the markets across asia. Have the region index. Had thewhat we have moment. Trainingtures started trading. Look. E a up. It may be it may not be the panacea the people have been looking for. Meeting a definitive result . Absolutely. As stop we are going to have modi tsunami. This is a vote for economic growth. The fundamentals are in place. We have very slow employment growth. High inflation. These are things that they have to deal with. The good news is that it will be a long road ahead. There are low hanging fruit that can be plucked easily. The First Priority has to be the new budget. It has to be delivered by early july. That is right. I think there has been a loss of fiscal discipline on subsidies and the current account deficit. Rein thatto work to in and take some of the pressure off of the r. B. I. What we need is Decisive Action in this budget and clear clarity for hown on subsidies the tax base can be expanded. If that is the case, there is the potential for rate cuts next year and that is the other key for the economy. Structurally, things have to be done. Side, there is going to be liberalization. He has gone and spoken against them. Talked about the low hanging fruit a moment ago. They are getting more foreign capital in to kickstart the Capital Exchange cycle and work two reduce. Up is aopening this sensitive issue. There has been a bill before parliament for years that has been languishing. I think that that could send a positive signal to Foreign Investors. Getting back to the fiscal mix of things, there is a on the monetary side and among the government. How does it work . I think the government has been very clear about that and is looking for more support on fiscal policy to take pressure off of Interest Rates and help in the fight against inflation. Areas that india has to work on his food prices. Government spending over the last five years or so on subsidies has been a critical element of influence. I think that is important and the early noises we get out of the administration around our administration our relationship with r. B. I is important for setting the town. We may see Interest Rates earlier. We do not know much about the proposed. The former trade minister is back around as a lawyer and is a strong choice for the bjp. The policy direction that we will get. Thank you. Still to come, a twist in patent laws. We have that coming up next. These are your headlines. Boosting stocks and the rupee. I sent the rupee to an 11 month high. Signs of recovery. It currency jumped after smashed estimates. Monthged 18 in the last and there was a forecast of a 5. 8 increase. The first gdp this morning. We will know if stability has taken a toll. A forecast of 2. 2 . That would be the shop is the sharpest drop. Analysts believe the country may fall into recession. You can see the rupee. Im only going to show you one. It was 68. Use that shows you the strength. Drivinge the stories the market. Right. Shake theittle to growing pile of legal bills and we are watching this one. Lets imagine that at the top. You have apple and google. Take a look. We are tired and done and will not play out these battles anymore in the courtroom. They have spent millions in legal fees. , theyre going to motorolang to see the availability. Years,e past couple of lawsuits have been filed in the United States and europe. They are going to duel when it comes to things like mobile and online music. , many people are saying, is not an active competitor and there is little for them to do. They have agreed to Work Together and focus on patent reform. Look at this, people coming together in harmony. It is interesting that you mention this. Ofy say, this is apples way saying that they are going to focus on samsung and double in our fight against samsung. Oneold you about how apple 120 million from samsung. 158,000 and will continue to fight it out in the courtroom. Each company is going to seek a ban on each product. They can be old products. Right. Thank you very much. Lets tell you what is going on. Six months in the philippines and people rebuilding their lives after the typhoon. The shanghai market opens. Godssays he is doing word in india. Rebuilding lives after a typhoon. We have a special report. Shanghai is starting off. Lets go out to john. Would have an impact right now. The prices are disappointing. We will tell you about home taiwan. Nd australia is pretty breach. Resources and banks on the klein there. 25 . By it has been falling. China and hong kong. Look at the impact of the stocks we are watching this morning. By fours are off percent. Today. Ssed estimates the retailers and stocks open again. If i can look at the pie chart the hong kong see open. Particularly the property area. And gas. Cials two quarters of a percent and property stocks. Holdings. Roperty these are all crucial ones. Prices rose. A price increase back in march. It has gone down by 12. Landing 1. 5 . You are seeing a decline right now and this is a reflection on that. India is preparing for a new government. Bjp wins in a landslide. They report on the challenges ahead. Hello and good morning. I am at the bjp headquarters. Nobody really thought they would get the kind of majority. Seats s 284 seats 284 seats. A significant majority. It is not something that most were expecting. The congress was completely washed out and did not manage to have a enough to be the leader of the opposition. Time, over then in and, he conducted capital. We have multiple with the media thewe will watch parliamentary board meeting. And, in a few days from now, we will look at the ceremony taking place. Take a look at the protests. Protests started when they sent an oil vote. Vietnam has deployed Security Forces and Ho Chi Minh City over the weekend. There was a demonstration outside of the embassy in hanoi. A public apology after in pyongyang. The incident was described as being serious. Reports say that the building housed 90 families. People charged in negligence in connection to a mine explosion in southern turkey. The Mining Company ignored safety concerns and it was superficial. Victims were taken out of the mine on saturday and the entrance has been sealed. Six months, devastated parts of the philippines are still trying to make a living. David sent us this special report. The family survived the disaster and the typhoon took almost everything they owned. Wish, more than anything else, is to earn a living. We cannot rely on aid. That will run out. Is one of the thousands who relies on the fishing industry. The United Nations estimates that 25,000 fishing boats were destroyed and forecast that it will take one year to bring things back to where they were before the typhoon. It has a net. And they bring the fish and. About marketso and refrigeration . The response from the private sector has been critical. Jumpstartwere used to trade on the ground. We deployed livelihood for stores. We gave them capital support. Store likefor a this. Month, i was able to sell 100 worth of things and i can use that money to buy more merchandise to sell. Overall, the finance industry has estimated that foreign aid has topped 3 billion. It is present in the region that we is something hope to launch within the next month or so. In many cases, it is not enough to fish or teach them how to fish, it is giving them tools to rebuild their lives. Shows apinion poll collapse for tony abbott. How bad was this polling results . Result . Two polls were conducted and they told similar stories of support editing away from tony bbing away from tony abbott. The Opposition Labor Party is at 56 . Of four percent in opening up a 12 lead. Up four percent and opening up a 12 lead. Tony abbott is now at 40 . For the first time, the Opposition Leader is out in front and commanding lead so commandingly so. People were protesting on the streets in most state capitals over the weekend. They are upset about the measures running deep. Abbott haster tony sayonded to the results to that the job is not a popularity contest. Budget. A harsh people saying lies lies lies. It goes to the lying. It is a popularity contest. We are seeing a series of broken promises. All of these things that were said before the election. Theses at the root of awful poll results. It is only 2014 and the next election is not due for a few years. There is time for them to bear some fruit from the tough decisions made last week. Thank you. Saysg up, our next guest that they are still at risk of a bubble here. That is when on the move returns. Lets have a look at the trading day. It is positive. Look at the overall region. On the way down. 40,000. The nikkei there. Lets look. Lets have a quick look here, as well. That is. 8 . Lets check in with what is going on. We are flat. We have had 15 minutes of trading in hong kong. Lets look at the hang seng. It is down. 33 . And political instability. Street protests are having an impact. That is the global outlook. It is gdp day in thailand. ,he forecast for growth compared to the year before, is 0. 5 and that is a concern because of the hit from the longrunning clinical impact. It looks even more alarming. The economy is expected to shrink from the previous quarter by 2. 2 . Why does this matter . Well, it matters a lot. Thailand could go into a technical recession. What is going on there shows no signs of being resolved. Goldman sachs has cut the growtht and see 1. 7 this year. Whenhave cut the outlook what they think will be happening at the protests and the political protests put a drag on government spending, as well as tourism. Banks have weight gain. They think that thailand has experienced two consecutive quarters of contractions. Let me leave you with a quote. For a long time, this was looked at the economy running on a separate track from politics. That assumption cannot be taken as granted anymore. Were covering the gdp figures today. Lets have a look at the top stories out of china. Keephave told lenders to less than one third of the bank cost liability. It has more than tripled over the past years. The prices have continued to spread. That is the fewest in 1. 5 years. The central bank called on the biggest lender to grant mortgages. Is current property continuing to rally into next year. We are joined in the studio. Thank you for joining us. Would you make of these figures. Yeah. Prices anding tightening liquidity in the second half of the year. The banks are cutting out and develops are becoming difficult. It is not surprising that the development is cutting pressure. This is what we saw in the past few months. Flex are there any curves in place western are there any curves in place . Tothe government wants stabilize the market. We hear about the property household the chinese will only by what it is on the rise. They wait and see if the price will connect correct. Support o assess ask for support. Ande mentioned sentiment negative sentiment creating further negative sentiment in a vicious cycle. Indeed. The propertytigate market and, at the same time, with the new government, rather than using credit price purchasing and those administrative measures, they want to let the markets play a supplyrole and let them the price adjustments. Hugeousing market has a divergence and it is hard to have a sense of the broadbased policy. How much decline in prices do you think the government would tolerate . House price has corrected from 2012. On a yearnwide basis on year basis, they use that as toauge and it is close 1015 . 10 , Many Developers into more difficulties. Housingmportant is the market for the overall chinese economy . Should we see a decline . Indeed. We published the reports. Thank you for reading it. We have a line. It is too important to fail. We know that it is the contribution to gdp growth. We are considering the balance and, at the same time, the exposure to the sector that is rising. Obviously, there is a shadow banking sector. Have close that they to 18 trillion in debt, but the official number. And thebt payments property markets collapse. The central governor has to come up. Talkingch and you to you. The Housing Market slowdown in china. The tablet market. North korea could open some doors in the reclusive state. Right. Ght lets look at the stories. He and president xi. May sign a deal. Western sanctions are starting to bite. Kong, fergusong is selling fine wine from his personal collection. There are a series of auctions. Ferguson. Holding a midterm Business Strategy briefing. They took a massive hit, following the profits that forecast of a loss. A forecast of a loss. Football at the end of the week. And athletico. It is the first time that the teams have appeared. Theng headlines with tablets and homegrown devices. They will allow some to become more. North korea is not the type to let a lackntry of Internet Access to the way of a mobile industry. All were on display at the recent international display fair. We are selling them with a lot of applications, and quitting literary and artistic works read by our people. Also textbooks. The tablet with the television function is the most popular. Includesallest tablet access antenna, offering to staterun television. Connect to can only north koreas internet. The Office Software is similar to microsoft. Pyongyang and hand the import components and assemble them in north korea. The educational tablet that we are building for our own style in useful application. Textbooks,urces, reference books. It has the function of dictionaries, handling multimedia, and documents. As a just as capable computer. For 260, they are a bargain. Not earningr those the average north korean wage. A dispute between china and vietnam. Hello, everybody. I am rishaad salamat. We are live in hong kong. This is on the move. Clashing over territory, resources and national pride. The annulment china square off at sea. Modi says he is on a Divine Mission as he begins to form indias new government. How to lose supporters and alienate people. Tony abbott taking a hit after last weeks budget cuts. Lets have a look at this deepening maritime row between china and vietnam. Beijing evacuated thousands of citizens following violent protests. Foreign businesses were sacked and to Chinese People died. Companies from taiwan and korea were also affected. There have also been clashes at sea. Happened. Out what signs this could be resolved peacefully . About 12 hours by boat just to get out to the area of the oil rig. Once you are there, the horizon is dotted with ships left and right. I was out there for three days and here is some of what happened at sea. Shipsnese and vietnamese have been locked in a tense cat and mouse chase about 140 miles off of the bombs coast off of vietnams coast. Both countries claim territorial rights to these waters. Both sides have called in boats to the area. This clash occurred last week as a the enemies boat got close to the rig. Etnames. Ies vite the Chinese Government says its boats have also been rammed while legally protecting the rigs operation. A rig shows 60 boats in the area, more than double the number of Vietnamese Coast Guard ships. Chases like this one are daily blastences as both sides horns and blair recordings, ordering the other side to leave. Vietnamese coast guard vessel is mild from the rig. Have created three perimeter rings around the rig. The mission of this boat is to get as close as possible. Typically what happens is chinese vessels give chase. This is what has happened behind us today. While the governments are locked in a diplomatic standoff, the turf battles at sea are likely to continue. What is the latest on these affect uh and of Chinese People in the country . Has said it has ever actuated about 3000 citizens from vietnam. It says it is sending five ships to pick up another 1000 on top of that. The first of those ships is due to arrive in vietnam sometime today. China also said that it is suspending parts of Exchange Plans with vietnam. And analyst we spoke to said the moves are political considering that vietnam has maintained their security at this point and there are plenty of flights out of the country. That china wants to shift the spotlight and criticism to vietnam and away from china and its oil rig. We have been reporting, antichina protests did turn deadly last week. There has been a clampdown there, hasnt there . Are things getting out of hand . Over the weekend, there were calls on social media websites for people to demonstrate nonviolently. They responded with mass Text Messages which are pretty rare in this country, telling people not to come out. And Ho Chi Minh City, there were hundreds of police and Security Forces that arrested people and prevented thisfrom demonstrating weekend. The government, the message they want to send is that security has been restored and they are not going to take any chances on violence. Right, there is no let up in chinas property slowdown. Just days after the government asked we are joined by bloombergs chief china economist. What is the story here . We had april numbers on house prices coming out over the weekend and they are pointing to a continued deceleration in chinas property market. There are now no major cities in china where returns on property beat returns on money market funds like alibaba. There is only a handful of citiesies, a handful of in the country where returns on property are beating the interest you would get on a oneyear term deposit. Sector is looking pretty unattractive to speculators. With speculators occupying a large part of the market, that is a pretty negative sign for demand. What does it all mean for chinas overall growth . It is one of the biggest pillars of the economy there. That is right. The worry for the government is that chinas real estate sector is the key driver of domestic demand. Construction, demand for steel and cement, demand for furniture, these things together account for maybe 10 of gdp, maybe even more. The worry for the government is that as prices decelerate and sales fall, we are already seeing a deceleration in construction and that is going the seven point five percent growth target slips further out of reach. There have been a lot of curbs on property there to avoid speculation. Does that mean those can be unwound . Does that mean beijing can manage the situation . I think the key for chinas government is to try and get out of this difficulty by boosting genuine demand from firsttime buyers, people who want to buy a house to live in. They are continuing to curb speculators who pushed property prices skyhigh. We have seen Chinas Central Bank trying to make a move in that direction. Last week they encouraged the commercial bank to accelerate approvals of mortgages to firsttime buyers. That is their attempt to solve the problem of weak demand by ramping up purchases by genuine people who want to buy houses to live in them. Tom, thanks for that. We should have a look at what is going on with some property related stocks. The hang seng stocks, all these are seeing declines. The april reading for the cities the are seeing slowdown cities where the prices are rising fastest, it is the fewest in a year and a half. So, these once you can see playing out. These composite, we have ones. These are the ones that are seeing declines that are quite obvious. The pie chart, the overall market, this is the hang seng. I will show you the shanghai composite. When it kicks into action, there it is. all of these seeing declines. Real estate off by 1. 2 . Look at that. Six stocks are rising. 63 are under. These are the big ones. All these three, right across the region, are seeing declines. That shows you the impact of the composite is quite intact. To theals are tied also other stocks as well. Thanks, john. Up next, indias new leader asks voters to give him six months to make his mark. He may need even longer. This is on the move coming to you from our studios in central hong kong. Getting a new government and this is after one of the biggest election victories in decades. The bjp winning a landslide. Zeb has got the details. The nifty futures for india pointing to a gain. We will get to that in a moment. On investorsus betting on the next finance minister of india. He is a Senior Leader in the bjp and is the front runner according to sources to be the next finance minister. He failed to win a seat in the lower house according to Senior Party Leaders but that has not diminished his chances of leading the finance ministry. He was not available for comment when contacted i bloomberg news. If appointed, he would face a host of challenges. Economic growth in india hovering near a decade low. The central bank keeps Interest Rates elevated to deal with rising inflation. Ley . Is jaite he was running for the first time and he lost to the congress candidate. We will watch this very closely. Absolutely. Cane is optimism that he shake up the economy there and that has made the rupee rapidly appreciate. No doubt. Those nifty stock Index Futures are rallying at the moment. When you look at what happened last week, we saw the nifty index rising to a record on friday. The sensex at an alltime high. , that sword stocks as well. Soared as well. The rupee has been one of the best performers. It is the currency to watch. , lookcy analysts saying for the rupee to extend the gains on modis win. It is a world beating rally. Statistic, 44 billion Foreign Investors have poured into india since last september. Thanks for that. Lets have a look at the Investment Opportunities following this election. Thank you for coming on. He says, give me 60 months. What does he do in those 60 months . There is a lot he can do. The most important thing is what he does with the investment cycle. The investment cycle has stagnated over the last two or three years. Gdp growth has come down to less than 5 . The Immediate Impact which you see. He can extend that. On the monetary side, people say they have done all they can effectively. But he needs to work on the system side. What does he do there . For that, we look at the track record he has, he has been the chief minister for more than a decade. Whatever hea puts his hands on, he is able to execute. E would look to consolidate his government has been much smaller. That is one way of reducing the expenditure. It is very difficult because india is so fragmented. You have all these different states. Has got a full majority. Need to dont have a very large cabinet. As you are an asset manager, how do you look through the lens of an asset manager . We are quite positively positioned in our portfolios. We thought that the expectations in these sectors are low. Even now we think that after the Election Results if you take a 69 month view, there will be more to grow in these sectors. Way around inr the defensive sectors. The rupee is at 58 in the moment. At what point does it become uncomfortably strong . The central bank does not want that. It doesnt want that because indian inflation has always been much higher than its trading partners. There is a political reason for the rupee to depreciate in a slight manner. What, 1 ,terest rates 2 . Yes. The Interest Rates will be on a higher level. Wants to depreciate the currency, he can always do that. That is one of the earnings he had from last year. You need to have very strong results. The central bank does not want to repeat it. Central bank has started intervening and there will be more. Right. Some of the sectors which need reform, we were talking about the retail side of things. Congress did move in that direction. They wanted to make these reforms but the bjp was against them. That retaileel is is not the panacea. The country if doesnt function. There are hundreds and thousands of momandpop shops. India is a very big market. We are not that bothered for retail. You should be more focused on how to create jobs in the Manufacturing Sector which is what the agenda of mr. Modi is. He has got to try and create jobs. We have very little jobs growth and it is one of the youngest populations in the world. That is another low hanging fruit. We have a large educated population. The skills are not right for the jobs which are required. Giving environmental clearances, forest clearances, you will have big job creation. That is his agenda. Thank you very much for coming in. Have a look at australian politics next. Pounding in opinion polls after last weeks unpopular budget. We are going to head to signy for the latest on that. This latest opinion poll has seen a collapse in support for tony abbotts coalition government. Lets head over to sydney. Paul allen is there. How bad was this . They were pretty horrible. There were two polls that came out postbudget. Pretty much the same thing, a very heavy drop in support for the coalition government. Just seven months after they won a landslide election. Look at some of the numbers from the Fairfax Nielsen poll. They have opened up a 12 lead after the coalition dropped four points to 44 . The labour party up by the same amount. Take a look at the primary vote. The coalition now down at 35 . Labor up to 40 . ,ony abbott taking a hammering now down to 40 . The Opposition Leader, well out in front with 51 as preferred Prime Minister. It is all because of this very tough budget which got handed down last week. Theave people taking to streets in protest over the weekend. In pretty much all the state capitals across australia, very upset. That werey, the lies told to them before the election. Tony avenue it is saying that he wasnt elected to make ed decisions easy decisions, but hard decisions. Not to win a popularity contest but to govern effectively. I guess we could argue broken promises from the government. That really is at the root of all this. Tony abbott did win a popularity contest. It is called the election. He campaigned very hard on the issue of trust and the broken promises from the labor government that he defeated. As necessary as this might have been, it contained tough measures and he is putting the country on a path to surplus. Politically, it was a catalog of electoral the trail. Made,election remark he no cuts to education, no cuts to health, no change to pensions, no cuts to the abc. He made those remarks in september. Four out right lies in that sentence alone. , thebjective measure australian public was lied to. You are seeing their reactions in the polls. Betrayal thathe we are seeing reflected in these opinion polls. On the upside it is only 2014. Another two years to the election. Paul allen in sydney. Do stay with us tomorrow. We are going to be joined by some bigname guests. Ryan chilcote is sitting down with the russian Prime Minister to discuss the crisis in ukraine and the affect that sanctions imposed by the west are having on the country. Look ahead to what else we have got on the agenda. President putin starting a brief visit to this part of the world tuesday. May sign aident xi deal for russia to supply natural gas. Raisedsis in ukraine has beijings apartments. Retiredsday, the Manchester United manager is selling wine from his personal collection. It is the first in a series of auctions that may raise 5 million. Sony holds what it is calling a midterm Business Strategy briefing. Sonys stock tumbled last week. They forecast another annual loss. The briefing will be held by president kazuo hirai who is under pressure to turn the company around. Madrid tackles citywide athletic oh. It is happening in lisbon and it is the first time teams from the same city have appeared in the finals. A ceasefire for now. Apple and google put some intellectual property suits on hold. North korea launching its own Tablet Computers and rebuilding lives after the typhoon. We have a special report. Over to john, we just got the close for the morning in turkey during it in turkey. A decline . China is off by 1. 1 . Home prices coming out disappointing for them. We have seen property stocks falling the most. Hong kong being affected by the same theme. Breakat the lunch marginally higher. Looking forward to india. Also you have the rupee as well. Performance, seeing gains. Also tack. The rest are seeing a decline. Banks, Financial Services and real estate off. The biggest declining area of the day. [indiscernible] they have all seen declines. That is a bit of a concern for the day. Look at the currency performance today, we can see here. Obviously the one to watch out for, the indian rupee. Look at the difference in strength. 58. 78, you can see from this. You can see the thai baht, a little bit of weakness up until so far this year. Quite volatile, political instability, tensions all that. 32. 50 two is the current price on that. Throw in the japanese yen. There it is. All these currencies a bit stronger. Thanks for that. We have gdp data any moment now. Fangpeugeot recalling vehicles in china. From january to september 2011. The recallsexpect are due to faulty parts that may lead to fuel leaks. We have got the pfizer and astrazeneca in the mix with pfizer raising its offer for the british drugmaker. This raises british concerns about the takeover. Billionbid of 117 would be the biggest acquisition ever of a u. K. Company. Pfizer said this is its final offer. At t has agreed to acquire directv for close to 50 billion. The deal has already been approved by both companies. At tgreement will give more firepower as it takes on rivals such as comcast and Time Warner Cable who are planning a merger. A growingshow except pile of legal bills. Declaring aogle ceasefire in their intellectual property wars. Mia has been watching this for us. Imagine that, companies playing nice. We are talking about the two biggest tech giants in silicon valley. We are going to no longer do any of these battles in the courtroom. They dont want to spend the money. They spend millions of dollars to try to get the other side to agree that one owns a patent versus the other. What we have is lawsuits as it pertains to the motorola unit that google owns being dismissed now. 20 suits have been filed across the United States and the eu. They are doing in other areas including mobile maps and online music. They put millions in legal fees. When you look at the reward, it is ever shrinking. Many say that motorola isnt a big competitor anymore. Why would you want to spend to defend the patent behind that . What does this mean and the other dispute that apple has all the time . Apple is mean that going to play nice with samsung . The opposite is how analysts are viewing this. Motorola is no longer a distraction. Apple can now focus on its main target. Got biggereye just on samsung in terms of the amount of attention they are going to get from lawyers and the amount of money apple is willing to spend. Is it worth it . Last month i talked about how apple was seeking 2 billion in damages from samsung. They got just 120 million. It barely cover their bills. 158,000d to pay samsung dollars as well. The Court Battles are going to continue. Thatatest in that saga is each side can ask the court for certain bans on products sold in the u. S. Is that a smart move . Most of the products apple wants a ban for is products that nobody wants anyway. These are older versions of the smartphones. Whichoes not cover the s5 is the latest smart phone to go head to head with apples 5c and 5s products. We are talking about tablets of another form. North korea entering this market with homegrown devices. They are not threatening samsung or apple but they will allow some in the reclusive state to be a little bit more connected. North korea isnt the kind of country to let Something Like a lack of Internet Access get in the way of a budding mobile device industry. Four tablets are now available in north korea and all were on display at the recent International Trade fair. Sellingablets we are them with a lot of applications including literary and artistic works which are widely read by our people and also the textbooks and reference books which help ibo study. The tablet with tv function is the most popular. The smallest tablet includes a retro antenna offering improved reception for state run tv. International Internet Access is restricted in the country so users can only connect to north koreas own mobile intranet. The tablets that run the Office Software which is similar to microsoft. Companies import hardware from china and taiwan. Pyongyang Technology Company and import components and assemble them in north korea. The tablet we are developing as an operating system adapted to our own style. This tablet has more than 400 multimedia resources including textbooks and reference books. And has the function of dictionary search, handling multimedia and handling documents. It is just as capable as a computer. The devices have been surprisingly well reviewed. At 260 for the top of the model, they are a bargain but only for those not earning the average north korean wage. Breaking coming out of thailand. Continuing political gridlock is having a measurable impact on growth. Zeb is breaking down the breaking gdp figures. A bit of a shock. We expected growth to moderate. Thailands economy did contract in the First Quarter on the year on year basis. A contraction of 0. 6 . Our survey called for a slowing of growth to 0. 4 . Instead we have the economy contracting 0. 6 . This comes amid continuing political turmoil. Violence in the streets. The Prime Minister forced out of her job and certainly an uncertain future for thailands economy. We have seen a broadbased the klein in tahi stocks thai stocks. The turmoil shows no signs of resolving itself. The other key number we are waiting on is the quarter on quarter figure. Our survey calls for thailand to see a contraction of 2. 2 in the three months of the First Quarter. The key figure, the economy contracting 0. 6 in the First Quarter. It just goes to show the challenges facing thailand. This number is a surprise, worse than expected. Thanks for that. Coming up, more analysis on these figures. We are asking what it means and whether the continuing political gridlock will weigh on growth. These are our top stories. Sent ships to evacuate citizens from vietnam after violent protests. The antichina protests started when beijing sent an oil rig to hanoi. Two Chinese People died. Leader says heg is doing gods work and represents a break from the past. Narendra modi celebrating his election victory. Be nominated will as Prime Minister later this week. Modi is seen as probusiness and once arun jaitley as his finance minister. Jaitley failed to win a seat in the lower house of parliament. Home prices continuing to spread. In april, prices find in 44 of 70 cities. Eased in some has places. The central bank called on the biggest lenders to speed up the process of granting more mortgages. Marketsve a look at the and see how they are doing in hong kong and shanghai. We are just about an hour and 30 minutes of trading so far. About 0. 3 . By those figures not really helping developers. They are dragging down the shanghai composite. South korea also in the mix at the moment, down by 0. 1 . , thatlia and new zealand poll showing a decline in popularity for tony abbott in australia. Lets get more insight on those china growth figures. What is your first read . There is a litany of bad news coming out of thailand with regards to the Consumer Sector. Despite this bad news, it is important to note that there are selective opportunities in the Consumer Sector that one cannot ignore. I would highlight the liquor sector as one which is resilient. Thailand is a country of tremendous resilience. The consumer in that country is made of teflon. Liquor consumers in particular represent solid opportunities to investors. What do you think is the real drag if we have this resilience . The main driver would be the fact that there is a lot of money coming into the economy from the export earnings as well as the fact that the country is in the throes of a transformation from traditional forms of retailing to modern forms of retailing. That would certainly drive the consumption. It would also drive the consumption of meat products. We are reasonably optimistic of the prospect for the companies that are engaged in this sector. What i am trying to get at seen their have firstquarter gdp, a contraction of 2. 1 . Think is writing the economy down . What is going wrong . We know about the political gridlock. You are saying it is not having much of an impact when it comes to the consumer but where is it having an impact . The impact is greatest in the export sector. In the Consumer Sector, there are hopes of resilient consumption in a number of sectors. If you look at the liquor sector, you would see that the consumption of spirits is in a sense different to the trends you find in a number of other sectors. Formit there is a cause concern in the form of a contraction in Consumer Spending which istho quarter, the first time we have seen it since the 1997 crisis. Consumer confidence is low but it is always darkest before dawn. I would not ignore selective opportunities in thailand, in particular in the beverage sector. Abouts talk a little bit are you looking at Companies Like Thai Beverage for instance . That is correct. Thai beverage is a company that is a leading player in the spirits business. In the last quarterly earnings, we have seen the 13th straight case of volume growth in the spirit sector and the second oftance since 2009 profitability in the beer sector. There are pockets of confidence in the Consumer Sector that cant be ignored. The other interesting thing is that it is a thai company that has exposure to regional growth in Consumer Spending. It is one of the lead players in burma, myanmar edges it is now , in the beer market it has exposure to market share in the burmese beer sector. To beveragexposed consumption in singapore and malaysia where there are reasons for tremendous optimism. I wouldnt rollout the thai Consumer Sector. That, there is tremendous cause for concern. There are some companies in the Consumer Sector that have taken on u. S. Dollar debt. I would avoid some of those names. It comings of course to the consumer. The rural poor have been supported by the subsidy program. That has been suspended now. That is going to have a material impact. The Rice Subsidy Program has proved to be a daunting task for the government. It has led to the government looking for other ways of financing it. There are reports that it may be scrapped. Spending, if you track it over the last 10 years, has been fairly solid. It has not been related to the rice subsidy. The rice subsidy came into effect in 20112012. Consumer spending has been on an upward trajectory for about 10 years. I wouldnt connect the rice subsidy to Consumer Spending. There is a weak correlation between those two developments. That. Nks a lot for thank you. All about those thai gdp figures, contraction on the year on year basis of 0. 6 . Up next, back in the philippines. How people are rebuilding their lives six months after the typhoon. Lets check on some of the stories which have been making headlines. Take a look at the south korean president. She says she is ultimately responsible for the ferry that killed at least 300 people. The system will be dismantled and overhauled. Collusion between business and government for the disaster. The captain and his crew have been charged with homicide. Has offered a rare public apology after the collapse of an apartment building. State media showing officials with grieving relatives at the site. The number of victims has not been released. The incident was described as serious. Reports say the building may have been housing more than 90 families. A group has been charged with tionigence in connec with a mining disaster in turkey. The Mining Company ignored safety concerns and government inspections had been superficial. Charges could lead to sentences of up to 15 years imprisonment. The entrance has now been sealed. A cargo ship has returned to earth after a monthlong stay at the International Space station. Dragon was released above the South Pacific and splashed down off of mexicos baja peninsula. It brought back to tons of equipment. Two to paying space x make deliveries to the iss. It is six months since typhoon haiyan devastated parts of the philippines. The storm left millions homeless. We are back to see how things are now. David ingles brings this special report. This family survived the disaster but typhoon haiyan took almost everything they owned. Now is tomate wish earn a living. We cant just rely on aid anymore. That will eventually run out. We need to start rebuilding our lives. She is just one of thousands who relied on the fishing industry in the areas devastated by the storm. The u. N. Estimates that in the 25,000 fishingt boats were destroyed. They forecast it will take another year to bring things back to where they were before haiyan. The boats, it is about the motors and the nets. There is a whole supply chain around that. Also, what do they do about markets . What do they do about refrigeration . Damage wasnt of the such that the response from the private sector has been just as critical as the government. Rural telecom used their resources to Jumpstart Research jumpstart trade on the ground. We gave them phones, we gave them capital. 200 for oneabout store like this. Month i was already able to sell about 100 worth of things. Now i can use some of that money to buy more merchandise. Overall, the countrys finance ministry estimates that nongovernment aid has topped 3 billion. Microfinance organizations are present in the region. Philippines ase a conduit for the firms. This is something we hope to launch within the next month or so. In many cases, it is not enough to simply give them fish or even teach them how to fish. It is giving them the tools to rebuild their lives. David ingles, bloomberg. That is it for this monday edition of on the move. Stay tuned for asia edge. Reports ofsea and heightened military activity. This is hong kong and this is asia edge. Look at our top stories. The worsening maritime dispute between china and vietnam. I higher calling in india. Modi says he is on a mission from god. Building a new life, returning to the philippians six months after the storm. Also coming up the star, having aced, turning to tensions in asia. Home prices continue to decelerate. And north korea enters the tablet market. Could this be a rival to samsung and apple . China very much on the downside. Hinas home prices rose evidence of the property impact in china. The hang seng also seeing declines. Jakarta, malaysia, Malaysian Airlines down. Malaysia reports gdp