Fourth day of declines and after the chinese manufacturing guide we saw it continued to drop about 78 u. S. Cents. About four days ago it was about 0. 8 u. S. Cents there. It has dropped quite a bit. Economists and traders believe the r. B. A. Will cut Interest Rates to a fresh record there just 2 . Its priced in about 76 that they will lower benchmarks to the 2 fresh record lows. Analysts say aussie has the potential for a pretty volatile week. Angie . Energy thanks, yvonne. More weakness on the factory floor in china with the p. M. I. Coming in below forecasts. Steven engle crunching the numbers. What does this tell us . Steve worse numbers since 2014 for hsbc. Manufacturing economics p. M. I. 49. 9 expecting 49. 4, so. 5 not a percent but you know what i mean five basis point bees low that. March was 49. 2. New orders, this is a key number within that p. M. I. Declining the most in a year. The official p. M. I. We got on friday showed stable stabilization but still 50. 1 is right there at inertia, just about. Not contracting, not expanding. And were geling from economists expecting another rate cut perhaps the third since november in the pipeline. A lot of chatter on social media that can be coming in a matter of days, perhaps this week. I want to read you the key statement from the hsbc because this is it in a nutshell. New orders declining at the strongest pace for a year while production levels stagnated. Data suggests relatively weak domestic demand is the main driver of reduced new business as new export work picked up in april, albeit marginally. Export orders seemed to pick up a little bit thats encourage but domestic demand is the bugaboo, its the weakness. Energy experts picking up but thats been the case all along and whats driving the chinese economy and leadership want its to be domestic demand as you said. So how are they going to stoke that . More easing, more stimulus to come . Stephen kind of flies in the face of the efforts to rebalance the economy and yes, theres a lot of talk about further easing, rate cut perhaps, from the central bank. Maybe triple r for Banks Reserve ratio requirements. Also the tool pledge Supplementary Lending Program p. S. L. , much more targeting as well they can get easing to favored or select parts of the economy. As they have done in the past injecting billions of dollars into various select parts of the economy. But very much likely a rate cut coming shortly as one of our guests, lily from a. M. Z. Bank said. He wasnt going to go on a limb sane it would happen this week but its being considered. Energy thank you, steve. Other stories making headlineses, australia security regulators said it found no evidence of misconduct in sharp movements in the aussie dollars just before this years three Interest Rate announcements. The asic Investigation Continues but official findings show what it calls normal operating marks behind the currency movement. Chinese millionaire jung is still shopping his investment units. Folks on internationals planning to merge with bermuda based ironshore. Fosun will pay nearly 2 billion to buy the shares it does not already own. They lipet blot club met and stake in cirque du soleil. Warren buffett has spoken about the type of candidate who should eventually replace him as brook shire hathaway c. E. O. Saying they need a significant array of skills. The 84yearold said his successor needs to be more than just the stock picker but he would accept someone with operational investing experience. Buffett was speaking at brookshires annual meeting in omaha, nebraska. Greece continues to make headlines. Four days of marathon talks have left the government and creditors still very much far apart. With key deadlines looming, specter of default grows ever closer. Zeb has the latest on this longrunning drama. What do you think is going to happen this week . More critical than ever right . Zeb there may not be breakthrough but it is a critical week and we are seeing significant steps forward already. In the latest rounds of talk, had that continued through the weekend and will resume later today. Greek officials in an email statement saying Brussels Group made significant steps. Those comments echoed by e. U. Official, spokesman saying that the talks were done in a constructive spirit. That indicates people are talking perhaps in more adult tones and certainly they need to because the clock is ticking. Greece faces the end of the month deadline basically default. That is the end game if it cannot cover its obligations. It has imminent bills here. It has a 200 million euro payment to the i. M. F. Due on wednesday. A key e. C. B. Leading the same day and, of course, it has the larger 840 million billion on may 11 thats due to the i. M. F. Major obligations and as of now sources telling bloomberg it has enough cash to get through the week. Angie Asian Development bank stepping in saying this threat is actually hurting trade relations. What is this . Zeb indeed. The chief economist telling bloomberg Asian Company perhaps more cautious now as they talk and look for European Partners, talk about existing partners and look for new business opportunities. Not necessarily with greece in particular but with its neighbors. Because of the peripheral impact this could have on euro zone countries. Greeks exit, if it happens, would plikely be managed to the best extent possible but its a scenario, end game that none of the troika, bad word that that is e. C. B. E. U. , and i. M. F. Officials and greece itself want to see happen. Energy absolutely. All right, zeb thank you for that. Greeces talks with creditors have produced little progress but instead professor antonio fatous remains optimistic. Its very hard to be optimistic given what we heard. I think what the greek government wants, what the European Partners warrant are two very Different Things and only possibility of an agreement at this point is both sides get so scared of the possibility of crisis that theyre willing to do a cam pra mize which in many ways will be to kick in part of it down the road not a real compromise but some solution for the short term. Energy blackrocks rick reeder told us greece still has a long way to go. Greece, we think potential for better talks this week. That being said, greece has large payments coming at the end of june, beginning of june through august. We think there will be a back and forth with risk of capital controls as theres certainly a risk they will take a referendum. We dont think youre out of the woods with grease vonltility will continue around that. I dont think ultimately that greece exit is devastating as people think but the headlines will create volatility no doubt over the coming weeks and months. Energy there are those who see uncertainty in greece affording opportunities elsewhere. We know that the payment risk is on the rise. If we continue to create volatility in the markets that is anything we think this would be a great opportunity in europe. The reason is simple you have a vezz good q. E. In place. And the largest Banking Sector out of greece so theres no direct correlation to the rest of the credit cycle or Credit System in europe. Angie and thats todays word from asia on greece. Still to come on asia edge manny won. He did . Many in the philippines refusing to concede their homegrown hero was out fought. We to one highprofile sue port later on. Up next, chinese Manufacturing Sector weakened further than originally thought in april. More on that when asia edge returns. Checking some of the stories making headlines around the world. The number of People Killed in nepal has risen to 7,250. At least double that number are injured and both totals expected to rise as remote communities are just now being reached. More aid and equipment is being flown in although nepals only International Airport has been shut to big planes. Katmandu was built to handle mediumsized aircraft and heavy freighters carrying aid damaged the runway. The Italian Coast Guard said nearly 4,000 migrants were rescued in the mediterranean sunday as good weather and calm seas persuaded more people to attempt a crossing. The flood of migrants shows no sign of abating. Last year 170,000 people were picked up. Thats a 280 increase on 2013. Last month 800 people drowned when their boat capsized off libya. The victims had been locked in the hole. And remains of the last two unknown victims of the Malaysian Airlines disaster in ukraine have been flown out. Mh17 was shot down last july over separatist parts of eastern ukraine. All 298 passengers on board died. Ukraine and west blame surfacetoair missile fired by pro russia rebels while moscow said the plane was attacked by a Ukrainian Air force jet. Time for a look at the big events this week. Busy week including shome announcing a new flagship smartphone. Mi 4 made its debut and k sifment aomi are hoping to take market share from apple and samsung. On friday we will get more on the situation in china with trade figures for april. Exports unexpectedly slumped the most in more than a year in march. And they want to know if thats a blip or if theres a trend forming . And also see the latest act in hong kongs double murder drama. Former b. O. A. Employee judding is back in court accused of killing two young indonesian women at his apartment last year. He could be jailed for life if convicted. We have seen further signs of weakness in chinese manufacturing with hsbc april p. M. I. Coming in below estimates. So will policymakers step up stimulus to shore up growth . Lets get the view of asians mark tinker, a,x,a, a,x,a,. The data throwed through, any surprises for you . Not really. I do think the important thing about china is its a 10 trillion economy and if they are grown anywhere near 6 or 7 we would not say this is a slowdown. We would say its going far too fast and there needs to be global inflation. I think we need to adjust our expectations about china and not obsess about whether grow is 6 or 7 but where is it going . Is it shifting away from manufacturing towards consumption, which is longterm trend . What is the government going to do about it . Energy and thats what leadership is saying its not about the quantity but quality. Unfortunately the quality right now seems like the jury is still out. Again, it goes back to what is your policy going to be . Thats what we are trying to understand and will the government come in and lets have a quick stimulus to boost manufacturing or exports . People saying are they going to do something to the currency . I dont believe that. I think they have a pretty clear fiveyear plan, to rebound the economy and central part of that in hong kong and Financial Services is big bang. In china financial markets. Those are part of the initiatives we want to be focusing on. Angie if were going to focus on that, what should we expect to see in china from presupposed currency manipulation . Obviously they have a strict trading ban they kept under control. They have to ease that up in the coming months, no . Im not so sure. They dont particularly want to stimulate exports. They want to attract International Capital. Worse thing can you do if you have International Capital coming in suddenly devalue the currency. Its much more important to have stable currency, to get International Capital flowing because they are, we must not lose sight of this moving towards freeing up full convertability of the r. N. B. Some people say that will be five years. Some people saying three or two. But whatever it is, thats the focus for us. And when the r. N. B. Is fully converted and there are discussions going on with the i. M. F. Suddenly the International Investor is looking at the market that is now the second biggest market in the world by market cap where theres no exposure, where theres an awful lot of activity going on, 24 i. P. O. s enormous unwinding of the sort of Balance Sheets to go to, institutional worthy longterm bonds. Enormous activity and most International Investors are not yet participating. Angie not yet but starting tofment retable vesters interest in hong kong e. T. F. Have been exponential. Where do you see growth for h shares . They can all come here if they want exposure to china . Thats exactly the case has hong kong dollar is fully convertible. What we saw with that opening up between the asia and h. R. Is they enabled domestic to start investing gorkts the arbitrage to bring the h up to a rather than drag it down. If you want to get exposure to china the h. S. Still offers better value route for the International Investor and thats what we are starting to see with the e. T. F. s and in a similar way we saw it with japan. When japan started restructuring, first thing that happened is hedge funds went in and second thing Institution Investor said i am going to reduce my risk by buying japen. Sounds odd because of the waiting. Japan moved in line waiting. I believe the International Investor is saying, im going to start to get exposure. I will go via the h. I really want to get involved, when is the shenzhen connect going to open up . When is going thoop with the mutual recognition launched in hong kong to sell to those institutional or large Retail Investors wanting to buy mutual funds . Angie what is another creative way to get exposure to asia . Could it be a. D. R. s . Could it be there are the foreign currency rates and a lot of people had 10 cent in their global funds for years and that played through in through the internet. I think what really is going to happen is youre going to get the thumbs industry is going to use the connect to actually give you exposure selective exposure, to those to those hshares if you like. I also think the International Investor is very wary, obviously theres a history about it there, until they found out the money wasnt there. I do think sounds like its my own book here, but you need to be more stock specific and outsource a little bit more to people who are going to do the Due Diligence for you. Its a steady but slows process. Angie to your point the credit concerns are still there. Again, see, i would also say everybody is scared about chinas debt. We are told it has 28 trillion debt. I would turn my head sane thats 28 trillion of asset thats can be securitized and sold into an International Investor. Angie they are starting to do it. Whether or not its palatable. If youre in italy and lending to the government almost nothing p. Whereas looking at maybe local governments in shanghai would you rather a yield from the shanghai local Government Bond or pay the germans to lend money . Angie thats a good segue to when we talk about grease and europe and all of those concerns that as you say is playing bond markets. Mark, stick around, mark tinker there, a,x,a framlington. Up next from mining to marijuana what Zombie Companies will go to to just stay alive. We will take a closer look when asia edge returns. Angie welcome back. Youre watching asia edge. Some stories we are tracking for you today. Uber is facing another bump in china after it was raided as part of a crackdown on taxi hailing services. Uber is suspected of illegal Business Activities and operating without a license. China had ruled car hailing software should differentiate their services from taxis and public transport. Australias biggest power producer is going head to head with elon musk. A. G. L. Will offer a battery to challenge teslas latest model. Prices have not been announced but a. G. L. Said its cells will have extended warranties and financing to make them affordability. And it is a myth for westpac, first half profits came in below estimates under 3 billion as earn eggs from the treasury unit dropped and lending margins narrowed. The company had been trying to boost revenues. Currently trading 3 2 3 down. Penny stocks are often considered the walking dead of the investing world but they have one valuable asset a Stock Exchange listing. The commodities downturn in australia, an increasing number of socalled Zombie Companies are turning to reverse listings to survive, including a minor that giving up dig miner giving up digging to grow marijuana. Paul allen has more. Paul a story to delight hippies everywhere the company that stopped doing this, to start growing this. As australia reconsiders its stance on medical marijuana struggling Capital Mining approached u. S. Based nutra works for a lifeline. Take over the companys a. S. X. Listing and take the gold miner into the cannabis business zfments we have the technology and infrastructure to role out a program in australia to meet patients. There are a lot of Resource Companies in australia that have not done well because of Commodity Prices for resources. So those companies are available for reverse takeovers. Mutual x sent the only company to enter through the backdoor. Last year there were 30 reverse listings, up from 19 the year before. Thats when the a. S. X. Lowered the minimum stock price for reverse takeover from 20 cents to less than 5 cents. Throwing open the doors to socalled Zombie Companies to be reborn as something new. Last month whilst wireless Meter Reading Service i. N. T. Became aha life. And failed prime minerals reinvented as Data Security form covata and former nic