Inflation. Yvonne . The japanese Prime Minister has promised swift and bold economic measures after winning a convincing victory in the upper house election. Ts go to our economy editor brad miller. Does this election put the Prime Minister in a stronger position to move forward with the stimulus plan . It certainly does. The 2 3 majority certainly strengthens zabe. But the question remains how will he use that majority . We have to remember hes been in power since late in 2012. Hes had a lot of time to implement his policies. We really want to see whether he uses his power for constitutional change, or changing the way the Defense Forces can be used or whether he doubles down on abenomics. He launched it three years ago with monetarily policy and reform. We saw a lot of the first era with monetarily policy. We saw fiscal policy but were waiting for more of the economic reform not just in governance that might affect stronger wages and increasing business spending. Yeah, seems like the focus now has shifted to his economic policies. So, brett, are we going to see more physical fiscal policies from the Prime Minister. One of his advisors have recommended spending more than 20 million yrks en. Estimates for tax receipts are down. We know that money have been affect bd the area of affected by the area of the earthquake. We dough know that abe will be spending more there. Will be more fiscal spending but there will be more in the weeks ahead. Plenty of challenges when you see abenomics. You have the yen and inflation. What are the key issues that they still face . A stronger yen is one of the one of the ab things for abe. We do dont see a lot of changes in terms of inflation, Consumer Prices keep falling. We know that wages are pretty much stagnant and businesses rent spending enough. Thats another indication that businesses are not spend in the way that abe needs to lift the economy. All right. Brett miller, thank you so much. Joining us live from toke yo. The worlds beggest tech i. B. O. Makes its debut. Were talking about line which tops out at the range. We count down to the biggest tech i. P. O. This year. What a turnaround. They went from delaying i. P. O. Pricing to putting the range to even bringing up the range. They wanted to list about two years ago. They were expecting a 1 trillion yen valuation. But that being said very confident. Yes, its a sign of confidence when they price this at the top. And plus, of course, the green shoe option which theyre selling more shares. Were looking at at least 1. 1 billion. If you include the green shoe option, 1. 3 billion which would value line i believe at just under 7 billion. And as you mentioned, one of the biggest tech i. P. O. This year. It should be nine or 10 times bigger than the other one that we saw. 150 million u. S. We know that japan is kind of the Biggest Country that uses line. But how does line perform outside o that one country . Right. So i mean if you look at japan, its cornered the market there, over 90 . You look at thailand, its urprising. Now, all of this said, i think were looking at this while youre looking at the market where is its managed to gain traction and set its sights on the middle east and asia. You look at 3 in the u. K. 12 in the u. S. Maybe not prioritizing those markets at the moment. Our guys at Bloomberg Intelligence actually said that this valuation, it suggests line has now basically given up on user growth and instead has focused on sales. In other words spending your money not to gain useer bus getting them to spend more. In other words, this valuation is looking at 32 bucks per user. 218 million of them. China is certainly not in there which is dominated by wi chat. What kind of Financial Performance could we see coming from the company . We could see a lot of growth from the company. We were up 40 until the end of last year. Were looking at a net loss which is typical when you look at these tech companies. But that being said sales is what were going to be focused on really ahead. Because from here on, its not just messaging app. Its a winner take all market. When you look at the likes of snapchat, facebook theyve become a one stop shop for all these services. All these other type of user interfaces which im not going to say it, i understand. Thank you so much. G20 trade ministers have warned hat investments could plunge 15 . They pledge to improve International Trade as the u. K. Is leaving the e. U. Impacts business decisions. And they encouraged other to approve it. And they hold their next summit n september. The emerging market products with potential for fast growth. Japanese life insurers brokerage banks and asset management. This moves comes as bill winters cuts cost and sell businesses trying to turn around the londonbased bank which posted its first loss since 199. Sources told bloomberg that agata may be reaching out to as many 20 possible buyers ncluding bane, p. A. G. Asia and a. A. R. Have interest. Tekata is working on restructuring due to recalls. Get the rest of the days news. Youll find indepartment reports and market data. You can watch some of the interviews. Hats on bloomberg. Com asia. Jules, looks like things are looking better stockwise. Absolutely. We have seen all of that volatility that has been in marks i guess subside a little bit as weve seen today. A little more risk on in terms of appetite for risks. On the enterprise index sort chinese stocks traded here in hong kong, they have risen the most in seven weeks so joining that global rally that weve seen coming through since friday on the back of that u. S. Payrolls numbers. We have seen a bit o a dip in the crude price and were seeing some have Solid Movement coming through. On the chinaasia markets we have the p. P. R. Numbers through over the weekend. A little bit of deflationary pressures in terms of the gate prices coming through for that perform p. I. Numbers p. P. I. Numbers that were released. Thats the biggest jump that weve seen in around three months. So every stock in the black apart from one on niike. And helping out korea by 1. 2 . Australias market getting a boost. So quite a lot of buying coming through in a lot of those material players. You can see that coming through across Southeast Asia as well. I want to show you some of these emergencying market economies. E here up by 1. 4 holding up 1,145. And the fact that weve seen weakness in the yen holding that rise that we had over the past four sessions also giving strong sent development a lot of those export stocks. So a lot of great start to the training week. You mentioned crude prices. We have seen a decline. Yes, we have. And that is as we start to see a lot more drilling resume in the u. S. We did have a numbers of rigs stopping production earlier in the year. But we are seeing that a number of active rigs is at its highest. So that is putting some downward pressure on the wrment t. I. Price 44. 98. It is worth noting that particularly turnover last six months weve had this huge surge. L traded between 44 and 52 dollars a barrel after doubling there from that 12year low. You can see the big surge that weve seen over the last six months. The weakness in the crude price not having an impact at all on the energy sector. You can see on the regional 12 . , the oil and is up by led by a number of those players. I was showing you signer pick and the australian prireses looking very good in hong kong. A little bit of weakness coming through from that oil price, perhaps a little bit of easying after those solid gains over the past three months. Julia, thank you so much. Still ahead on asia edge. Were going o see how sales will do for boeing an airbus at the air show. Plus, the impact of brexit on asian exporters. We will discuss that and much more. This is bloomberg. Its 11 13 here in hong kong. President obama has warned americans protesting against Police Violence to remain respectful or risk undermining their message. The president said rallies held in many u. S. Cities over the weekend were legitimate but calls any violence against officer as reprehensible crime. Last weeks Police Killings were followed by the murder of five Dallas Police officers, a 25yearold Army Veteran Micah Johnson by 25yearold Army Veteran Micah Johnson. And serious and respectful tone is going to help bilize American Society to bring about real change. And that is our ultimate objective. South korea is planning a range of penalties on volkswagen over its emissions scandal. The paper says the punishment includes fine, recall orders, a les halt and a withdraw of certification. They accused v. W. Of fabricating results on noise and pollution emissions. About to 150,000 vehicles could be affected. Portugal are the football champ yobs after defeating france in paris. The visitors had to overcome the loss of Cristiano Ronaldo through a first half injury. Goal from substitute eder in helped to win. More than 26 journalist and analysts in more than 20 countries, this is bloomberg. Angela merkel expects the next u. K. Prime minister will honor the brexit vote. V. D. Network s shes experting it to be filed once the new p. M. Is chones. Merkel said theres no need for reform. The blank of england announces the first monetarily decision since brexit. And a majority of economicist believe they will cut rates to stabilize the economy. Joining us now is andrew sullivan, managing director of sales trading with high tone international securities. Well, andrew, really great to have you. We see the b. O. E. More pressure for them to act. Is this could we start to see things come into fruition, the realities of this brexit fallout. Think brexit will take a long time. But what we did see immediately is the fact that this is about currencies and bonds, right . Its all relative value coming back into play. We havent seen any real move on Interest Rates. And thats unlikely really to happen in the near future. But the currencies remain quite volatile as people trying to react when is article 50 going to get served . When are the negotiations go to start . And when do we get a picture of what sort of new relationship the u. K. Is going to have with the rest of europe . Whether its going to loan or take part in one of the trade practices, whats going to happen . We just dont know. We just dont know. I want to throw in a tweet. Talk about what we see in talking about what we see. He said, you know, what, markets seem to have accepted secular stagnation even if the fed hasnt. I mean, do you agree with this statement because it seems that we have gotten recession that risk off the table potentially. But when it comes to you see a flat number it doesnt reflect the growth. It doesnt. People think are coming to the realization that the Central Banks no long ver any real ammunition to deal with the economies as we see it. To an extent the fact that the feds didnt raise rates the last time which would have been a small factor but at least it would have given them a moment degree to unwind again. And now weve had a very good jobs number. Evens really questioning, you know, whats the longterm plan. And the reality is that we probably lived with low interest rays for too long. They do have to go up but that will mean that some companies fail. I think thats still a bitter pill for a lot of governments to really accept. What you do mick of this number . What you do expect of this number . We still see job creation. Developing. Theres such a large reservoir of people that can move in and out of the job sector, whether its students or people at 60. People are looking at whether wages are going up which we saw a slight increase and thats a very positive factor. But its going to be difficult. And there will be a lot of here say when colleges ended last month or quite what caused it, we dont know. Is that a good figure for the feds to increase rates . Its one number. Just like may was one number. We need to see a more positive longer term trend for them to really take that seriously, i think. Now, switching to the other Central Banks, i think the b. O. J. Coming out of this election that we saw over the weekend, abe solidifying a little bit of his position in the upper house with his party. Is this buy time for them or do they both need to work here with fiscal and monetarily policy . Theres always been a hope that they would Work Together in tandem. Kuroda has done most of the heavy lifting. We havent seen a lot of the abe changes this we were hoping for. Now abe has a new, you know, agenda, a new support for what he was doing. Its a matter of pulling the trigger, facing the third hour that weve never seen. Some of the most difficult choices that east going to affect employment and peoples pensions. Its going to be the difficult one to grasp. Is it cutting negative rates furtherer . People have accepted that negative rates arent work. When the largest part of your money is old age pensionist, having that wont inspire them to spend money because theyre looking after their nest egg. We really have to get back to a more normal system where Interest Rates are positive and people get paid for saving money. Lets talk about the fed. O. J. And the china and thank you. Coming up, for a sixth straight month, is it a sign of falling prices or finally turning a corner . This is isberg. Welcome back. Youre watching asia edge. Chinas deflation has eased for a sixth month in a row while Consumer Price inflation remains benign. What are the implication of all this . Yeah, its an interesting set of numbers because of course weve been talk about deflation for fourplus years. 52 consecutive months and that would normally be the headline. It was down 2. 6 . So further deflation. But its an improving situation because of the rising commodity price, oil prices have firmed. Property sales have rebounded. O theres underlying inflationary pressures thats affecting p. P. I. Were not expecting it to be affected until 2018. But next year steadily will continue to improve. C. P. I. , we can look at that well below the governments target of 3 . We did have a dropoff in prices in vegetable, fruit and eggs. Pork prices still high. But its benign at 1. Consumer Price inflation. Prices have normalized a little bit. When it comes to how this affects the feed, do you think it will change . Likely to keep anna buys but unlikely to unleash a new stimulus because there are some underlying inflation there. An interesting point that Bloomberg Intelligence said that improving situation of p. It. P. P. I. Lowers a 3. 3 increase in p. P. I. The improvement the easing of inflation has done more to lower the borrowing cost than the entire regime of six Interest Rate cuts. We might get on friday a setting of policy of the p. P. C. After the g. D. P. Numbers come out. Were expecting a growth this is what richard tsenga had to say about that. Were expecting more of a slowdown than the 6. 5 in china. So i think thats a bit softer than where most people are penciling their numbers. The casings for china while we dont subscribe to the view whether theres not an eminent or financial catastrophe brewing, growth will moderate over an extended period of time and data will likely show this week as well. Keep a watch on food prices in the aftermath of the severe flooding. A lot of weatherrelated factors. Steven engel, thank you so much. Lets check in some market trading. Looks like its a very good day for stocks after we saw wall street flirting around those highs after the whopping jobs figure, 287,000. Were seeing shares in the city of about 1. 8 . We do see oil trading down. The Energy Stocks and the producers doing pretty well. We do see the one surging as well today. One of the bigger emerging markets currently that are leading the pack. 1. 9 kospi. You guys be good. Ill see you later [ bark ] [ bark ] bye. See ya pal. Ever wonder what your pets do when you leave home . [ laughing ] aw you cutie pie. Aw. Aw. Aw. Aw. [ barking ] [ washing machine running ] partys on know what your pets are up to with xfinity home. Xfinity. The future of awesome. See the secret life of pets, in theaters july 8th. Yvonne asian stocks are having their best day since march with the regional benchmark hitting a onemonth high. Japan is leading gains as the yen fell for the first time in a week. Election shinzo abes win, a show of support for his policy. Encouraging inflation data. Feel pricing at the top of the range. Shares will be offered at ¥3300. That would be japans most popular instant messaging service raising more than 1. 3 billion for a dual listing in tokyo and new york. Raised its ipo price range despite the brexit vote. Nintendo is having its best day since going public in 1983 on the strength of mobile game pokemon go. Shares tested the daily limit of a 25 gain in tokyo. It rocketed to the top of the apple store in its first day of relief. Shares added 7 billion to nintendos market value. Global news 24 hours a day, powered by journalists and analysts in more than 120 countries. This is bloomberg. Lets get the latest for the markets now. Lets go to juliet saly for more. Start to theid trading week. Investors taking the holiday leave from local markets on friday on the betterthanexpected jobs report. We also had some consolidation in terms of elections in the region. Looking like we are going to see some more stimulus coming through in japan. The nikkei up by 3. 6 . That is the best they we have seen since april. Up by 1. 8 . Have a look at the regional index. For the much almost everything that it lost last week today. It is up by 2. 4 . We are seeing every sector moving higher. This is the biggest oneday jump that we have seen since the second of march. We are at highest last seen at the beginning of june. All of that volatility has been wiped clean. 6. 2 billion shares have changed hands on the regional index we have about 76 in terms of volume on the threemonth moving average. Basic materials leading the gains, up 2. 8 . Movement coming through in the oil and gas sector as well even though we have seen a decline coming through in the crude contract today. It is down by about 1 . That is as we start to see drilling increase in the u. S. After that very solid game that we had seen in crude prices over the last three m