David a very good morning to all of our viewers joining us right now. New trading week. Lots to talk about in the markets. Shins and up and running as well. Focus will be on where we go with those markets. No one knows until we get there. Lets get a lay of the land of how things look. Where does this really set us up as we get underway this monday . Have a look at it at our bloomberg chart. G btv 7910. Into thursday, into friday, that little gap, more than a massive gap. Really push the market to extreme levels when you look at markets. 56 of constituents on the shanghai composite are now in oversold territory. Does that necessarily mean we will get something into that market, that really depends on where the herd goes. Will that be enough to restore confidence in that market . We were down almost 6 , 7 at one point. Friday that market has opened up. It will open up in about 25 minutes from now. Haslinda china was most overbought in kenya. It has put things in perspective, given that the full out given the full out last week. We are waiting on the opening of china and hong kong. Lets get to sophie for the latest. We are 30 minutes away from the open in china. Singapore, taiwan and malaysia just coming online. How are market striking right now . Mood isso far the looking fairly decent. We should be treading cautiously. Earlier, they mention that we do not have Institutional Investors and getting the chance to respond to the market sellout. With volatility likely a key theme, you have to wait for the other shoe to drop before you dive back in. Asian stocks, we are seeing stocks outside of japan snapping a sevenday decline. That check on on the mood in taipei after the taiex saw its after september, 20 11. We have some data on the docket out of singapore. We are waiting on retail sales figures. Be ontario retail sales will interesting to watch. Singapore is expected to unveil nextast commerce tax in weeks budget. In malaysia, i am kuala lumpur, we are waiting to see what the ceo has to say regarding the latest update regarding the dividend payout coming in at the highest since 1997. Now i am checking on stocks in taipei. Hai. Ng a eye on han if focus towards big data as we had a slew of updates from tech players, like tsmc. Ansingapore, we are keeping eye on one of the biggest shareholders of the commodity traders. It has come out to challenge its debt plan and it may be under pressure after several analysts say that its earnings could be under pressure, given the decision to loan longer license data to foreign exchanges. I want to leave you with this chart. Believe is the number. Although we did see asian stocks get better last week, Southeast Asia was able to hold onto its year to date gain. Despite the losses that we saw elsewhere in the region. Brief spotemain be of sorts when it comes to the region this week. Fortune, the change in thank you for that. Looking ahead at the open in china. We are expecting stocks to continued the downturn. To a lowerointing down by half a percent. Lets get some perspective on the markets. Markets alive strategist who joins us this morning. Despite the expected fall in the chinese market, the markets seem to be pretty muted this morning. Asia seems to be reluctant Going Forward. Is that a Fair Assessment . Oni think we saw that friday. Even after big turmoil on u. S. , asian markets were very calm and is looking to u. S. And europe for direction. We are seeing the same dynamic in europe. The moves are coming out of it u. S. At the moment. Especially the Chinese New Year holiday next week, people are stopping their shifting of position until the new note the u. S. Is the right position to make. David is there anything i should be paying attention to in terms of something that might savages little bit of confidence ahead of Chinese New Year . I think the biggest thing everyone will be watching as the u. S. Inflation data on wednesday. Fact thathas been the global inflation outside the u. S. Has disappointed expectations, but the u. S. Is surprised on one side. Connected, it is very unlikely that u. S. Inflation can take off when the rest of the world are struggling. The bar looking to see whether inflation in the u. S. Comes out strongly, that would imply that maybe the u. S. Can drive global inflation up, or u. S. Is the one that is wrong and inflation disappoints. That will seat yields correct sharply lower. It provides the platform for Global Equities. Say, sinces about to you bought it brought it up, inflation around treasury futures, everything got wiped out last week, except on the 10 year. You had bearish positions. That is a weekly in terms of data, but that sort of tells me we are capped at these levels. I would imagine it is a downside here. I think it probably should come lower. Dynamic is the fact that the curve is steepening because of fiscal difference being shined by the trump administration. The budget boosted the budget deficit. There is an expectation that the 30 year part of the curve will continue to rise. The front and, because of terminals in the market are coming lower as people lower their expectations of what the fed might do. The 10year is caught in the middle. Overall the 10 year lows will continue to come lower in the weeks ahead. Is in a think equity base until we see the tenure lows come lower. It does hinge on what the u. S. Inflation data says on wednesday. David absolutely. 85 roughly speaking on your bloomberg of a move coming from the fed in march. That was virtually at 100 about march. Ks in following more on the story, more of marks commentary and all of the trading here on our markets live blog for our clients. Click rundown of what is happening across the markets. Analysis for expert editors chiming in on Asset Classes at the moment. Find out what is happening with your investment at this point in time. But get you an update on your first word news. First, the u. K. , London City Airport has been closed indefinitely after the discovery of a world war ii bomb. The weapon was found during Development Work and the metropolitan police have imposed a 200 meter exclusion. It is not known how long the airport where we will remain closed. A russian plane crash after takeoff from moscow killing all 71 people on board. The airline 148 was headed for the southeastern city of horse but disappeared off the radar seven minutes into the fight. It is not known what caused the flight caused the crash. The National InvestigativeCommittee Said it is opening a breachminal case for of aviation safety. North korea has confirmed it has invited south korean president moon to talk to kim jonguns sister. They extended the head of invitation during the we can visit to the winter olympics. She says she never expected to travel to the south but expected many things to be similar to the north. She said she hopes to meet again in pyongyang. National development and Reform Commission said it is restricting Outbound Investment in what it calls sensitive sectors. Properties,s hotels, cinema and entertainment, sports clubs, weapon and news media. A say the restrictions take effect from march 1. China has been scrutinizing overseas deals after Companies Global news 24 hours a day powered by more thans wednesday 700 journalists and analysts in 120 countries. This is bloomberg. David the boj back in the spotlight this week. He is on the verge of being reappointed. Its getting kathleen our economic and policy editor who is in new york for all of the latest. I am guessing the bets on the reappointment are about to pay off big. Kathleen it was so widely expected. I dont know if anyone would give you points on that bet. Surely, the idea here is that was dizzyster abe reflation continue, more stimulus get closer to the 2 target. Stepped down. As at this moment, when the Federal Reserve is raising rates and the ecb is looking at the exit, all the more important to signal to the markets. At least reports that the boj will keep its stimulus in place for now. Furthermore, Bloomberg Economics pointing out that the government may have concerned that, over the long weekend after a big market selloff, not just in the u. S. , but in other markets, you might see a stronger yen. Whatever the reason, chief in newst at financial york on Bloomberg Television said that timing is excellent. Here in the u. S. , where investors are grappling with such a rapidly changing environment, it is great to take one of the big variables and keeping constant. To know that we are not only going to have the same policy in japan, but the same person executing the policy is a huge relief. Ithleen my reporting, when was in tokyo, many conversations suggest that because the two pag boj deputies confirmed in march 19, everybody said this about early february and by midfebruary Prime Minister should be announced a reappointment and a package with whoever the two new deputy governors will be. Even in timing i dont think is a big surprise, but i think people will be relieved and markets relieved that this is closer to being a done deal. Haslinda having said that, how in point important are the reappointments . Kathleen there is a tradition here. One of the deputy governors is usually someone who has spent their many years at the boj. They know the institution and the structure. Lets start by looking at who conjecture. The he oversees the drafting of the bojs policy give at directive at every meeting. He is considered the mastermind of big bond purchases. Obviously, keyed to governor kurodas policies and carrying them out. And being able to communicate these policies to lawmakers about the can understand and be on board with all of that. That is one of the positions. The other governor is expected to be someone who is firmly in the camp of reflation, sticking with the stimulus. He has been a friend and advisor for over 30 years. He is ambassador to switzerland. He is known for being an architect for abenomics and it is in the reflation is cap. These appointments have to be made by march 19. Very important i think in the sense that it will be seen as support for governor kuroda and what he is doing to appoint people like this. Outd kathleen joining us of new york. Still ahead on the program, shares of verizon up 3. 4 . Australia and competing in the coal market. We speak with the ceo about the company, next. Is it over for hong kong and chinas markets . Here the view, next. This is bloomberg. This is Bloomberg Markets asia. Check of get a quick your latest business headlines. Struggling air by maker airbag maker has been accused. Evil are suing the company and furthereed to support lawsuits by channeling them into a trust funded by the sale of some of the companys assets. 22 deaths have been due to faulty airbags from the company. Alibaba is to moving into home improvement, buying easy alms by a hundred 65 million. It adds to alibabas recent expansion into brickandmortar real killing that combines its expertise brick and mortar retailing that combines its expertise. 30 of said it is buying Online Payment Service and financial. Economists surveyed by bloomberg said singapore may impose a tax in next weeks budget. Thailand, indonesia are considering similar plans. Governments are seeking to level the Playing Field for traditional vendors peddling erratic growth of Online Retailing on platforms such as amazon. Com. Breaching ders bracing for more. The volatility is largely limited. The chief investment strategist joins us this morning. Is this a new normal, because we are seeing a rise in inflation and the unwinding . Which stimulusn youre talking about. We have an increase fiscal stimulus. I think we will see more volatility Going Forward, but i think people could say that volatility means equity market reit equity market weakness. We are not sure that will be the case. S p 500 is an example. We saw break to the hundred Day Moving Average. That has happened 166 time since the beginning of 1990. 70 of those times we have seen strong positive returns Going Forward averaging around 13 in total. We are still constructive on Global Equities but i think we will see volatility. Haslinda what will be the key stimulus . All eyes will be on inflation, but what else . Steve just seeing if markets calmed down. What we saw last week, we saw volatilitybased targeting strategies. Breakdown, that led to a bit of concern of volatility in the markets. Will that come down this week . Inflation will be important as an input to that outcome. Over the mediumterm, 612 month time, we still fill that buying up today or in the next few days is probably the best way to go forward. David typically when you get this location we saw in march, one of the first things to go is high yields. That did not happen. Is that a sign that the market is not as bad as a lot of people think . Partlyi think that is something that is going on. Was more interesting was, if you look at gold or yen, gold fell last week. If it is something more sinister that was going on, people really getting concerned about the economic environment, i. E. , the precursor to their market. Gold i thought wouldve rallied on the back of unwinds of stimulus. Reentering. Clearly we are way too early for that. Z yen did not rate higher against the dollar. I think that is the environment that suggests that this was a very specific equity market. You can call it what you like, but it is really just shaking up the complacency. That complacency is totally gone and that is why we think it will be an interesting 612 months for equities Going Forward. Do i blame Market Structure, because we have seen a lot of these positions stay put. We saw follow on across other Asset Classes, by guessing what you are saying is the underlying fundamentals, none of those assumptions are changing at the moment. Is this more acute . I put my finger at basically Market Structure here. Algorithmic training was one part of that structure if you want to call it that. It certainly hastened the volatility. On the first selloff day we saw a sharp move. Late trading on that and excelling of equity markets. I do not think we can blame it necessarily. It is something that happened. In terms of the blame, we have seen a significant reevaluation of inflation expectations. We have seen 10 year yield move higher. Some digestion challenges were inevitable. Onlinda david touched bonds. Bonds arearkets preferential for you. Why is that . We we still believer are in a weak dollar environment. There are commodities holding up. That is a positive environment. Not just bonds but equity markets. At our preferences, you have relatively attractive yields. If you look at emergingmarket government bonds in u. S. , they are offering a 5 yield an emerging markets are at 6 yields. Those are pretty attractive in this environment. Haslinda opportunities abound there. Correction setting the stage for the next rebound. E thank you for that chief investment strategist for a we will continue to watch the markets throughout the day. We will be joined by jpmorgan Asset Management in the next hour. After that, we will have atlantas investment. This is bloomberg. David we are counting down the deals and markets here in hong kong. As have a look at the early indication. It is looking good. That is relatively speaking following the 50 drop. Three plus percent drop in four chinesecent job from a mainland. 4 10 of 1 in your future market. Futures are adjusting higher. Back above 12,000 for that one. 850 index indicating that we might see a little bit of a bump up. We are coming up with the highest for that. That has been up and running for 20 minutes. We were at highs of 1. 1 at one point. Was take a step back and look at where we are on the chinese technicals at g btv 7190. The gap we saw on friday and fell as much of 6 and 7 at one point. Here is your percentage of constituents on the shanghai composite. Do we necessarily get people to come in, not necessarily . As far as what this is telling you, it is a bit expensive. Just something to watch, we were down 1. 4 as we head into the open there. Than half their. Lets see whether or not this gets more extreme or if it holds. Bambi on ice. Ike remember the scene in bambi where he was finding his way . Here is the other thing i want to point out. Broad sector across the hang seng. Just about everything is up with the exception of energy. Falling below 60 bucks. Utility is also coming up in little bit. It is a good sign when you look at risk estimate. That is one thing to consider. Fixed income from the pboc. 630 almost on the dot. Stepping away from injecting more liquidity into the system for a fairly long amount of time. China openrkets in up. Coming up, the country is finally ready to take on oil benchmarks, brent and wti. We find outn when. This is bloomberg. David about one minute away from the open of cash markets. We are opening a new trading week. We hope it is a new one following the route last week. It is slightly warmer in hong kong. Overtle bit of a move up the weekend in the mercury. Holding into this weekend. After this point in time people are making their way into the offices, to their desk as the cash markets open up. It is on slightly warmer footing. We are looking at some of the early rise here, showing gains. Lots of individual stories. At some point between now and over the next few days, only white we might get data on new money supplies. We are also heading into the new Lunar New Year holiday. That is when you see tightness around liquidity, which is the last thing these markets need. We are opening of the Chinese Markets. Lots of things to watch and talk about today. Haslinda lots of things to talk about. Direction from asian markets as well. In terms of the Chinese Markets down 4 over a period of four days down. 6 of a month. A lot of people are asking if it is tied to this or like catching a falling kn