They will buy 30 and made by more overtime. Have an analyst saying in india, there must be a balance between a strong rupee and a realistic rupee. Follow me on twitter. Markets, opening in shanghai in about 30 minutes. , we have memorial day in the u. S. , and much of europe also having a break. What do we have . Of these markets in europe are up 5. 1 . Up by. 1 . This is how asia looks. I should note it is looking slightly better at the moment. In japan, we were down by 4 10 of 1 . We have basically erased those losses. Australia is pulling the index closer index lower. Volumes are very light. You have these three markets opening up, singapore up out of the gates, a tenths of 1 . Taiwan and malaysia are slacking. You look at where the benchmark is, about 128 or 129 on the asiapacific. Drop in january, two percent right now. You had that rally in between. Long story short, the markets are waiting for a cue. Are there are fairly hawkish comments coming from the fed. When you look at how currencies are trading, and i guess you have to take a step back and look at may in its entirety. Down about 4 or 5 for emerging market currencies. Poised for the largest drop in three years. Gold is continuing to gain. It is about 100 bucks cheaper compared to the start of may. It is a bit higher at the moment, but keep in mind we are down by Straight Days by nine Straight Days into monday. Prices is up gold to 50 bucks, 49. 50 here. But again, rish, long story markets are trading silently. Nothing much to trade on at the moment. It is a very busy day for eco, but apart from that, everyone is a little cautious. Rish. Thanks, david. Shares in Virgin Australia are on the way up. A Chinese Company will be taking a 13 stake. We are going to sydney to have a look at the details. What is going on . Hna will pay 159 million australian dollars for the stake. 30 per share, . 30 per share, and hope the premium over mondays closed. Chinasany operates fourthlargest airline. Theyre are hoping to diversify. They intend to increase their shareholding overtime to 20 . They will also get to nominate somebody to sit on the virgin board. The ceo held a media called short time ago stop a short time ago. Here is something he had to say. The careful review is still ongoing, and we wont have the results of that for a while. We will get back to that when it is time. Having said that, hna has committed to supporting whatever the outcome of the review is. The ceo is understandably upbeat, but on everybody feels the same way. Major virgins shareholders, Singapore Airlines, will be reducing its stake to 20. 1 . And new zealand is very keen about getting out of its 26 stake. Look at virgin shares over the course of the year, they are down 30 . Even though stock is up 4. 5 right now, that is a one cent rise. Rishaad ask for that. Have a look at some of the other stories we are watching for you today. The scandal around takata is not going away. Here is heidi. Day, anotherther development. The company has rolled out bankruptcy as a way of reducing s exposure to liabilities. These worldwide airbag recalls. Instead, sources are telling us that the company is going to take a controlling stake and carry it through. They will meetd with manufacturers and Financial Firms with the aim of finding a suture by the third quarter. Takata wants to stay listed and maintain its airbag businesses while selling off for operations. The company declined to comment. In tokyo, extending gains by 2. 5 at this point. At this point, they are down 67 . That has cut the market cap to 327 million. Global investors are about to get a double dose of chinese equities. Alibaba and 12 other adrs will have their full value added to the indices by tuesday. The shares have been a haven. The have outperformed broader china index and the shanghai composite. In the meantime, asia has been trading sideways on support to keep things stable ahead of the key decision. What indias finance ministers says his country is on track to continue is growth rates despite uncertainty when it comes to the economy. Speaking exclusively to bloomberg television, theyre finance ministers said industry has no signs of slowing down, saying significant activity spending,ough public foreign investment, as well as urban demand. He also says the repeat performances are not assign investors have lost confidence, but that reforms are underway and a work in progress. We crossed all those barriers, one after another. , thee an unfinished agenda reform process, which is still pending. Still bringing it the Corporate Tax down from 30 to 25 , freezing exemptions. This will be completed over the next few years. Reporter a lot of focus on foreign investment. He says he hopes to double the number of Companies Investing in india from about 1000 at the moment. India is the worlds fastestgrowing economy, but hasnt has had increasing frustrations due to the Prime Ministers inability to push for a National Sales tax, as well as uncertainty. Rish . Investors have been digesting a clutch of data coming out of the region. We have been taking a look at the latest. What has tokyo been saying . Results. Reporter lets look at industrial production. Point 3 . Zero up a little bit, but that was worse than the forecast of 1. 5 . 2. 8 down from a rise of in march. Reduction is expected to rise 2. 2 in may and 0. 3 in june. Jobless rates in april, 3. 2 , below estimates, and same in march. The jump was 1. 34, which beat expectations. It is the highest since 1991. But while japan does make close to full employment, it has been hard to stoke wage growth. Low unemployment should usually bring higher wages, which helps rings and closer to the target, but they have been very stubborn. Lets take a look at spending for japan as well. That did not fall as much as forecast. It had dropped more than 5 . Generally the numbers have not been as bad as forecast. It points to a mixed picture of the japanese economy. There has been a lot of discussion about a stimulus popping up, also a possible delay in the sales tax hike. It is reported today that Prime Minister shinzo abe as agreed to delay the hike until october 2019 from april, and without dissolving the lower house. To have a quick look at south korea, numbers killed more than forecast in the month of april. Weak exports and Corporate Restructuring of show builders of should elders are hurting shipbuilders are hurting demand. E coming up ahead [indiscernible] coming up next. Rishaad chinese equities in the crosshairs of shortsellers. Mainland stocks surged this month to levels not seen since last years market route. If you look at this one gauge of how investors can gain a short exposure due to shows Short Interest with shares taking up 6. 1 last week. This is the highest level we have seen all year. The last time we saw this level of bearishness was back in that july, june, august period, and that was just beginning to be the bull market turning into a 5 trillion rout. What is driving this cousin is an . The shanghai cop this has them is him . Pessimism . Has been trading sideways all month, which is why this. Ts suspect in the meantime, it says that perhaps storm clouds are gathering with it comes to the currency, and therefore the economy. Goldman says this sweet spot that the u. N. Has been trading in a week is is week against the dollar. It is coming to an end, now warning a renewed outflow. Case in point, it is down monthly 6 in may. That is the biggest monthly decline since august of last year, and close to a fiveyear low in yesterdays session. Is going to be exacerbated by the likelihood of a fed rate hike. Seeing the we are pboc set it at this, potentially to take up pressure ahead of a move on the feds. It is said that investors are likely hedging out their positions using these funds to go short on china. Given the focus on the currency, it is interesting that we are getting more detail on how that daily fix is set. Us that everying day, 14 Market Makers sit down, they look at the previous days close, and they come up with this fix. Ing is saying it is still a black box in terms of how much we know. Royal bank in canada said they stopped paying attention since last augusts devaluation. Angierishaad thank you very mu. We have the Market Strategist of iga with us in singapore. What is your thinking on this . I dont think that the current yen weakness is going to trigger a widespread devaluation him on the other countries, simply because there are a couple of reasons. A weaker yen reflects a stronger u. S. Dollar. Second, i think the daily fixing has been more protectable. Predictable. This suggests the pboc is allowing Market Forces to determine the direction of the u. N. We have had discretionary input from the government itself. I think this is not going to be not going to trigger the currency war. On top of that, at the g7 meeting, the g7 leaders agreed that they are not going to embark on a currency war. Any is a testament that widespread fears will be unfounded. We had a note from Goldman Sachs saying the end of the yuans sweet spot is not a, because it is enjoying relative strength against the dollar, but ofkness against a basket other currencies. What do you think about that if that unwinds . Guest if that is the case, i think it will probably be detrimental, in terms of the sentiments across the world. But i think it will be in the interest of the beijing authorities to actually keep the yen in line with Market Forces. Moves againsty it, it will be allowed to move in line with Market Forces. I believe policymakers have now switched focus on growth, rather than on the stock market or the currency market, because they are allowing Market Forces to determine the path. In gold trading, research is getting crowded because people are betting on a rate hike soon. June or july is the thinking. June has a 30 chance of the moment at the moment, according to fed funds. Risk thathink it is a the consensus industry will once runup toen in the the june meeting. Meeting as theoc dollar rise further, the u. S. Dollar comes up stronger than , then we could see more yen. Ding of the see again, we could also expectations built even if there is no june rate hike. As of now, janet yellen says it will be appropriate in the coming months for a rate hike. I think investors are looking at june as well as july. Rishaad june as well as july. The thing is, that is reflective of essentially good needs for the u. S. Economy. Good news for the u. S. Economy. Good news is often interpreted as bad news. Is this good news changing, or being taken for what it is, perhaps . On thei think it depends market positioning. For now, i think what the is thathave interpreted it is bullish for our risk market, especially if this weeks data and the coming weeks data turns out to be stronger than expected, underscoring the optimism that the Federal Reserve has for the u. S. Economy, and this should filter through to the markets in the coming months. Thank you. We will have a look at some of the stories making headlines. With a series of bombings in baghdad killing at least 24 people. The deadliest killings happened in a suburb next to a shopping area, killing eight minutes and three soldiers. A boobytrapped exploded, killing three and wounding 10. The attacks are coming as Iraqi Forces Move into falluja, held by the Islamic State for more than two years. Reports from seoul says north korea fired a missile today, but it appears to have failed. The south korean joint chiefs of staff says the missile was fired around on, but it went wrong. Details are scarce. The north has failed at least two missile launches last month. Disney says it may take legal action against chinas new wanda city theme park due to snow white and captain america lookalikes. Wanda tells bloomberg the characters were from individual stores in the park and do not represent the company. Disneys one tiger is no match for his pack of wolves. You are watching bloomberg. Coming up, a warning that things are going to get worse before they get better, at least for the deflating hong kong harbor the market. Property market. What is the thinking behind that . Details, next stop next. Rishaad despite slumping property prices in hong kong, a bloomberg poll says things are likely to get worse before the government steps in. We haveews bloomberg newss freddie. How far do things have to go before we get restrictions removed . Afterer probably right the decline. According to our pohl, its 19 , but the range was everything from 5 to 30 . The thing is, there is really public outcry about falling housing prices. They benefit all of us, right . With the exception of maybe five or Six Properties controlled by big families. Rishaad thats the thing here as well. It is still ranked as having the most expensive housing. Its the most expensive city in the world right now. What is going on . Have these been together . How do these fit together . It is partially a question of supply and demand. The supply is not been large for several years. Rishaad sometimes the elements are kept empty until they wait to see demand coming. The thing is, will developers be needed . Not. Ter absolutely we do have elections coming up in the fall, and the opposition at affordability as an issue being a legitimate criticism of the government. The last thing they want to do kowtowing to the powerful elite at the expense of those who cant afford to buy houses. Rishaad is this due to homeowners buying the peak of the market in september . Reporter not really. There have been restrictions on how much mortgage you can get. , butis a maximum of 60 for most people it is probably only 50 because they were buying higher up the ladder. The number of negative equity cases, where your house is worth weston what you know, i think is 1400 cases, compared to ours, which was 100 thousand. Even as prices fall another 20 , maybe that number will double, but thats it. Rishaad thank you very much. Coming up, the impact of the slowdown in china. We will look at what is going on and how that is affecting other asian economies. Rishaad a look at our top stories. The latest Economic Data out of japan, industrials hitting estimates, still down 3. 5 from a year ago. Indicating weaker consumer spending. Australian shares on the up. Plans to increase the state to almost 20 over time. T a Singapore Airlines has its cutting its stake to 20 in response. In march, new zealand said it may sell its entire 26 holding. , 70 chance that msg i will include mainland listed shares to its industries in june. They were thinking it was 5050 last month. Alibaba and others will have their full value added from the close on tuesday. The shares have been somewhat of a haven as they outperform the shanghai composite. Paul allen has the details. Tomorrow that deals with the building approvals. Month on month, coming in as expected for april. Were expecting a 3 decline. Building approvals climbing by 3 so much better than expected result there. This set a very positive impact on the yearly figure as well. The market had been expecting a have to decline of 6. 7 on year. Suggesting there is a glut looming in apartments if building approvals continue to look strong. A current account coming in and little worse than expected. 20. 8 billion deficit. The deficit is the normal state of affairs for this number. We will see what that brings. Thank you. Getting straight to the market open time also kicking things off with the aussie dollar from that news. As pop pointed out, we are above 72. Its spread over two days. The big one as we just talked about, tomorrows gdp. This is really down to dollar dynamics. Emerging market currencies are poised for the sharpest monthly. Rop about 4. 5 . Lets see what happens today but roughly speaking, thats a loss. Pboc. O seed down to dollar dynamics. Spreadly, the volume was. You look at how the yen traded. You look at emerging market currencies here. We are starting to reverse that at the moment. Perhaps this adjustment we are seeing, just a function of that. 68 at this moment. Very quickly let me run through a few names you might want to keep an eye on. The economy shrank again there. Seventh straight quarter. Then we are starting to unwind at the moment. , this is theat company that went underground in hong kong. It announced it is planning to raise fares by an average of 2. 7 starting june 26. Shares up slightly. We are expecting another drop here. Another doubledigit drop following the 20 drop we saw a few months ago. The 10 drop tomorrow. Rishaad a slowdown rippling across the world. It is a place is closest to china hit hardest. The small economies, they are all suffering. All suffering for different purposes. Kong retail sales. Retail sales are weakening. You have the financial sector. So its suffering. We have the anticorruption crackdown in china. It was a arendt is number yesterday. First quarter growth down 13. 3 . And you have the fallout in commodity prices. Is managing to expand. Its a far cry from the rapid expansion of recent years. And taiwan is getting squeezed by both sides. The demand is down and its getting squeezed by increasingly competitive rivals from the mainland. Rishaad what is the common theme . Is howcommon theme chinas grinding slower and its not bad that i get. Its still at 6. 5, 7 range. Also broadly speaking, does this broaden out . It does broaden out. If you assume this commodity price, it remains a force on less demandwide and flowing to the rest of the world, less potential growth for the rest of the world. You, malcolm. Lets quickly move to some of the other stories were covering. Spending nearly 35 million on debt. It has consistently denied any wrongdoing. The Hong Kong Ipo is nearly 40 times oversubscribed. The company scheduled to debut that Stock Exchange wednesday. Asia. Ng shares in helping cotton motors. The company says is cautiously optimistic about global growth. Numerals drive sales of the u. S. Your back scandal affected about 100,000 cars and to cotton takata motors. Speaking exclusively to not a signelevision, investors have lost confidence. Be adont think that would very accurate analysis. It was only in august last year when there was a lot of instability in the chinese currency that we were also impacted. Since then after the initial thee have had, we strength of the ruby depends on the strength of the economy. The reserve bank has been watching the situation and we have to maintain a balance between a reasonable strong rupee and a realistic ruby. Rishaad confidence as well there with people of course working together. Relationshipyour and will he be reappointed in september . I repeatedly have said these are not areas where we we have always regarded the r. B. I. As an important institution. I dont think the government and the reserve bank have any issues with each other. We had the Monetary Policy implemented with major reform this year and hopefully by the end of the year, the Monetary Policy itself will come into effect. Indian finance minister speaking to me earlier. Next, hong kong playing host to theg entrepreneurs with hope of making the city the hunt for tech startups. Rishaad it is 8 43. These are the stories making headlines around the world. Police prevented protesters from marching to the palace but let allowed petitioners through two prevent potential violence. Local media has been ordered to use its a full show official title today. Company Biggest Energy restarted Oil Sands Operations after a fire ravaged for mcmurray. Ofefighters took advantage better weather. Uncor has a 4000 employees the wildfire forced around 80,000 people to leave for mcmurray. A second highresolution satellite into orbit. It was carried into space by a long march rocket and it will join a network of satellites helping with urban and rural planning, land surveys and environmental protection. The satellite is able to collect 3d images of objects just 2. 5 meters long. Two more to be launched by the end of the decade. 150 bureausists and around the world, you are watching bloomberg news. Eve on is at the event. Take it away. Rishaad yvonne you can certainly feel the buzz as we take things off on the first day of the conference here in hong kong. We are joined by 8000 startups. We see more than 50 growth from the year before and 500 or so investors here at the convention. Right now we are joined by the ceo of next. You are hong kongs first fullservice us a celebrator. You invest in earlystage startups. Enters the mood as we into rise. Good morning. I think from our perspective, we are not seeing a fatigue. I would describe the hong kong ecosystem as gaining critical mass. When you look at the attendees expected, application or accelerator programs, which are more than 30 year on year and an increasing amount of applications from silicon valley. We say the trend is our friend. Unless we build platforms to build entrepreneurs not only with fund but partnering with corporate to bring innovation programs and really relevant to hong kong, we see two really exciting trends. Firstly, increasing momentum in the traction startups are gaining with corporate adoption. Is essential for those startups to gain traction to scale their businesses. Secondly, we see an increasing focus on connectivity. Just last week, we launched a project partners at based around connectivity, linking ideas with resources, investors with startups. Yvonne you mention innovation. We have seen the startup system in hong kong grow exponentially in the last six years. When it comes to innovation, the entrepreneurial spirit, do you see that hong kong has that Competitive Edge . Absolutely. Hong kong is based on entrepreneurship through its history. We definitely see the fundamentals of hong kong in terms of supporting entrepreneurs. Regionally from our perspective, singapore is a regional of and what we say is pick the region most applicable to you in terms of your addressable market, where the customers are. Hinas new Program Availability for capital is one thing but acceptability is another thing. They see a lot of the early stages are selffunded. Bc is not far behind as well. Where do you see that as a challenge . Is it a challenge in your eyes in hong kong . Perspective,rtup we are at this stage of capital raising. There is been some volatility in the later stage markets but we havent seen a drop or an increasing difficulty and fundraising. What we keep coming back to his the needs of the startups to gain commercial validation through corporate partnership. Once they have achieved that, really getting that transformation or agreement, contract, adoption integration. So raising capital is not an issue. Have thisu partnership. Hong kong, and singapore. Do think as a partnership, where is the opportunity there . Originally, you had a lot of startups looking to dismantle, wanted around what they to do with the incumbent players. Now as ecosystem is developing, a see its a complement, not substitute. A lot of the startups, their pathway to commercial validation is through corporate. We see a lot more scaling up businesses within the incumbent corporate. Equally on the corporate side, theyre much more open to innovation. We help them with programs that make them much more open and available for startups to integrate. Apis, these things make that integration easier. Yvonne what is hot right now in your eyes . We seeing a lot of application in text basis. And the health care ideas, solving real medical problems. We see great leaps and bounds coming through. Yvonne thank you so much. Appreciate your insight. That is lawrence morgan. To thewe will be talking founder of 500 startups. Coming up, fast and furious as a china gets the drift. A special report from beijing. Chinas economic new development over the last few decades. Something that could easily be described as sudden periods. Our very own Stephen Engle inkled up and took a ride this soontobe listed beijing auto racing circuit. Here at tracked day, anyone 100 85e out and spend u. S. Dollars to have fun at the track. Beijings gold import is trying to put chinas emerging car culture on a new track offering for example an alternative to dragracing on the street. Were basically just giving them what they want. They have needs. They want to go somewhere to drive fast. And the cars are so little. A Property Developer accelerates into a more asset light licensing model. Their franchising racetracks and auto clubs nationwide. Seven are already built with more on the drawing board. With so many cars being sold in china with the young kids as you can see today and they spend money buying cars. They spend money on the track, on girls. But not all girls are along for the ride. World estimates she has spent upwards of 30,000 u. S. Dollars on gas, tires, tricking out her neon nissan skyline. Here we go. Red to have a girl drifter in china. Its pretty school. Its like a big show for everyone. Never mind she studied finance in college. You are racing against guys. 40 guys. And you play sports. Grow power. [laughter] rishaad passenger areas in beijing. We have the market moving. The chairman joining us to talk oil ahead of that opec meeting indiana. He is a former Energy Adviser to the Prime Minister of iran. Catch him coming up in just about 10 minutes time. Come including the way Oil Prices May be going and how far these oil policies are affecting it. Rishaad this is trending business. Heres a look at what we are watching. Oil heading for its longest monthly gains in years. Opec preparing to meet indiana. Nigeria at its lowest in two decades. Reduction in canada still recovering from the alberta wildfires. Approvalsd building above forecast. Chinas agent a group buys a stake. Mightaland said it offload its entire Virgin Australia stake. Economic data coming out of australia. We just put a bit of flame under the aussie here. David we typically do see the aussie react more than most other currencies. 7227. Taking it back above 72