Opens up for the afternoon time. Minutes there. Arta, up 2 i think that mark is pacing the region. Happening. Ly team, but sing the survey actually beat estimates. Lets bring in our china correspondent. He has the story out of us. Jing for us,t do the numbers tell the official numbers . There is a divergent, but the survey came in at 49. 9 for july. A forecast of 50. Thats the first sub 50 reading weve had since february. Of course, it casts doubt on the durability of the Economic Stabilization that weve seen in china over the few months. It suggests that the debt fuel growth rebound may be losing steam. We dig into the numbers, there are some interesting details that stand out like down. Rders were output was down. Employment edged up, and we have seen the employment slightly lower in the last few months. Trend has been to cap or cut wages. There is also interesting ivergence as well between large enterprises, so often state owned enterprises that firmly in an expanseairy phase. Expanding tobe shift the gravity away from the s. O. E. Sector hasturing in the last few months benefitted from the strength and e Property Market stateled investment. In above those forecasts, and that was largely down to the sector, but of ourse, but better than expected. Its down to what the policy action is and what they are to see from policymakers here in china. Get any expect to numbers . Hese if youre looking for analysts, they say the tipping s now at a point and the trend is downward for growth. They also say the government worried about bubbles, so monetary conditions are more ikely to be on the tight side. If we look at what bloomberg saying,elligence are they say they have limited pace, and their effectiveness will be constrained. Bloomberg intelligence xpects the existing stimulus will be maintained and they say we should also xpect more support from state sponsored investment also from the weaker. Countrys most akeover hungry groups is scaling back its buying spree. Assets from up club med to circus soleil over the past few years and getting d on leaner. Eidi sat down with chinas largest conglomerate last week. Knowing to be the most now we see but this kind of reversal . In a year its turning to be a bounty year. They are actually going against the tide. 15 billion worth of deals announced since 2011. R were really seeing them unwine. 6 y are saying up to billion of asset disposals are up for grabs. Details as to what or when, they have said ell be getting more details but when i spoke to he c. E. O. , he said all of about that is investment great rating. The otches below threshold. The s ps, getting that rate will help their Insurance Business in particular. Conglomerate that largely bases its model on hathaway, to invest in new businesses and itsainly improvement in Credit Rating would go a long way there. I spoke to the c. E. O. And he essentially this is a company thats going from being a buyer of assets over years to ew becoming a seller. On consolidated balance about 30 to 40 billion in assets that sold. E if the Market Conditions are good, we can sell. To sell. Ling the c. E. O. Is very frank about the companys high debt, increased almost 70 last year. If you look to debt to equity ratio they have more to equity, compare that to berkshire which emulates closely their debt is at 33 . A lot of work to do. The question is what will be block. Chopping what assets will they get rid of . O details but you can deduct from their investment, they call it wealth, health and happiness. Pharmaceuticals and falls are, what outside . Only of the old economy assets. Are actually the traditional pillars in growth when they first started up the company. First listed in profitables most business but thats changed along the rebalancing of the chinese economy. Traditionally they are being quite aggressive when it comes to developing markets, the europe. K and did the brexit referendum change your positioning . They are one of the up anies thats picked trophy assets and developed markets. Circus soleil med. Lub they see further opportunities because a lot of people will ben couraged cant out, those who handle the volatility will get out and that will open base for more investment opportunities. They are being very careful to manage that very well. He has a word of warning for any company that thinks not brexit xposure to may also mean not having any that downside volatility. I think volatility will and become more unpredictable. The best solution to risk is be completely globalized. Its worth noting they ave been looking more towards em s as well. M. They will be agreeing to buy the Pharmaceutical Company n india as part of the healthcare segment that they have been focusing on as well. Asian targeting this population in china, the vacuum thats being left by healthcare d system and also part of the pharmaceutical trend in china to bring the and the assets into the chinese economy as well. End goal, the they want to become a billion dollar market value company. Playstation division, investors are now focusing n user growth ahead of the october launch of sonys vr headsets. Havepore Central Banks been investigating a gsa unit involvement with bond malaysias vest fund. The Monetary Authority statement promising any ive action against institution or individual nvolved in antiMoney Laundering. The maf named four banks accused of serious lapses in Money Laundering control and in ed 177 million assets linked. Chinese investors are agreed to 4. 4 billion deal to buy n online games unit from caesars entertainment. It makes casinostyle games for aps, like facebook, Virtual Currency instead of real money and it will be taken over by a by Shanghai Giant Network Technology which ncludes a private equity fund founded by jack ma. Coming up later on this bets. Lays your getting set to release gaming revenue numbers and receive further signs of a rebound . Well hear from one of the regulators, well ask our next guest while he sees uk negatives in the decision to leave the e. U. Well hear from the deputy anaging director john lipsky just ahead. This is bloomberg. They have discussed ways to boost the Global Economy. Dave has been tracking all of this for us. Latest . He dave do we throw money at the problem . Hats what eve been seeing from Central Banks. Its loose fiscal policy, people have been talking about. To some of these lines out, out of bali. The president , several things. Dollar strength, hes ommenting here on the strength of the u. S. Dollar. He says its created some challenges for exporters. Would you imagine hes talking about u. S. Exporters. As far as the global view is oncerned, he says the fed now has to consider two things. They dont want a repeat of may happened in 2013, 22, to be exact there. Forme chairman ben bernanke came out. Happennt want it to again. Second, if they have to consider whats happening outside the u. S. , and on hes basically saying, while they are very achievingsays, to both employment and inflation objectives in the u. S. , whats happening exactly s not ideal. Demand has been far has slowly. Owing very the recovery from the Global Crisis has been rather disappointing. Seeing that e play out right now when you look at whats happening across currency in the especially emerging markets. There is a lot of money out of the dollar back into the a look, ean, have have a look at the peso. What the markets are seeing, given the gdp report that we saw on friday, were going to be looking at lower rates for longer. Dollar index, there is your massive drop. Steady een kept because of the drop in the japanese yen. Ave a look at 10 year yields 1. 5 on the u. S. 10 year. On that note here, from he said, dont underestimate the probability that the fed can rates. Y raise were looking at three more meetings. Have a look at the function, wirp, we have a graphic. Markets are basically to happen ing this year. These are based on fund futures. Little different when you look at uber swabs. You see the dip, at the very thats a dip following the disappointing gpd numbers. With of it had to do inventories. Basically below 15 for the if lihood of the fed it does manage get the rate hike out the door come september. Meetings. You look at how its flattening and look at the currencies. Does have a point. Dont underestimate that it may happen. Thank you so much. Given the latest line there, markets, at the from the recovered shock of brexit, inside the e. U. They continue to threaten. Joining us from the diggers forum, john limitssky, the ing director at imf. Great to have you here on the program. Go back to those breaking we saw coming out of dudley. He was talking about to not underestimate whether the fed can actually raise rates this year. Oryou see a similar view view . Share a similar well, of course, nbalanced despite the weak Second Quarter view . Data. Do you have some water here. Yeah. Okay. Here we go. Despite the weak Second Quarter figures, 4. 9 . Oyment is at growth is expected to be 2 , between 2 and 3 , and the inflation rate towards their 2 target. So under normal circumstances, it would be would be hat they tightening as long as the economy continues to grow. Yeah. s the dollar has been creeping up, and over the year, yeah, go ahead. I just wanted to say to s give you a chance catch up and catch your breath. Mr. Dudley were going to head to a break and talk more later. Well give you a chance to a little bred bit. Stay with us, well come back to you soon. Corporate earnings set for another quarter of declines. Well look at those factors could be hurting growth. Stay with us. This is bloomberg. We can hear our conversation now with the imf. Er director at the joining us. Glad that youre able to again. Once talking about your speech here at the forum, you painted more of a moderate Growth Outlook for the Global Economy, and youre seeing again. Lot ng that there are a of downsize risks. Are we getting a sense that recognizing the restk when it comes to this reject of globalization, his sentiment here that could potentially harm the economic the economy and big to a lot of consequences . Well, of course. Lets take global trade. Probably know, for most of the post Second World War ii era, trade has persistently much gdp. Er than since the crisis, its grown slowly and in the date 2012, trade continues to grow more slowly than overall output. Trade has turned into a drag a boost. And with the problems looking forward, with by brexit and the need for the uk to renegotiate trade deals the u. S. From in the both political candidates to immediate passage of the tpp, transpacific partnership, the likely tip agreement between the u. S. And europe, its hard right now to be about trade turning around. One of thats been the benchmarks of the growth in the most recent decades. Mean, you talked about the u. S. Election a little bit. Is there a little bit of market underpricing as the risk that we could see with a potential victory from the candidate donald trump . E see him talking about withdrawing from the wtl. The u. S. Will not defend unless they pay, alling nafta one of the worst trade deals ever. Well, lets just say, of statements only add to uncertainty, at there are which lots of reasons for uncertainty. The e come, i think, important point. The most notable weakness in the Global Economy, and in advanced economies, has not been the weakness in consumer demand weakness in Business Investment and here certainly one of the uncertainty s about policy and about regimelike the trade going forward, cant be boosting economy and boosting investment that s the major source of weakness in global growth. More so now, putting a step of emphasis on fiscal and structural policies, the how likely are we going to see some type of inclusive economic expansion or fresh action . Weve seen the likes of uk taking these steps, germany in particular. Particular. Well, first, its clear that monetary decisive wont way or the one other in the coming quarters. You can see the fed is very oncerned about creating another kind of, as you pointed out earlier, may 22 environment, but no one thinks or believes that monetary action is going to big impact in the outlook. Secondly, fiscal policy, no one planning substantial fiscal stimulus at this time. In the or example, g20 finance ministers and a just a week focus on the struck structural performance. In the near term the most mportant thing that the authorities can do is to create greater confidence in erms of the coherent, consistency and stability policy in the coming an effort to encourage an environment for Business Investment, for in general that should be very positive given low interest rates, prices and ergy commodity prices, et cetera. F course, the decline in commodity price has inhibited investment, but more broadly especially for thisdvanced economies, should be a positive environment for investment, and one of the reasons is, its not is uncertainty about the outlook for policies generally. Hence, the importance of the g20 leader summit coming up 3, 4, and 5, in china. If they can demonstrate some coherence, maybe it will be helpful. Look ahead to that. Thank you so much. Insights, your and talking about the Global Economy as well as the u. S. Election and the outlook for prices. Y joining us from the forum, lipsky, former of the directing imf. Global corporate earnings, on prices dragging profits as weve just been talking about with john lipsky. Here in asia it seems like the earnings season is also hit. Ng a absolutely. If you look at the statistics, asia is doing europe and the u. S. So far. Weve got a fullscreen that shows so far 294 conditions, on the asia pacific index reported earnings. Earnings down 19 , compared a 14 plunge in europe. 2 3 of the companies in the have also ex reported earnings down 3. 3 . Interestingly, if you strip results of the energy companies, earnings actually 1. 1 , not just the oil price but brexit and the tip Global Economy. Weve seen facebook, beat the money in analysts eyes. Sonny really beating the streak. Was actually down but it doubled its operating income in the june quarter. And the japanese maker, it estimates nalyst for the third quarter. There are a few bright spots. Beth of these companies have outperforming some of their other peers. Thank you so much with that wrapup. Well look forward to the afternoons business in tokyo coming up. Latest on the the reopen after the break. As we do see here a big pacific, butia seeing a better picture here count down to the end of the session a couple of hours away. Coming up in just three minutes time. Top stories this hour, asia shares are climbing and oneyear high. U. S. Interest rate increases yielding assets. Mixed. E shares are some ground has been regained after july saw its biggest monthly decline of the year. Data on chinese manufacturing in july has left analysts scratching their heads. The pmi fell to 49. 9, jumped tog survey its highest since february of last year. Both gauges at least suggest ittle significant eterioration in chinas important manufacturing sector. Higher in hong kong after it up toed plans to sell 6 billion in asset trying to raise its Credit Rating above junk. A reversal after 15 billion in overseas purchases this decade. C. E. O. Told bloomberg the company had ample capability to reach an rating. Ntgrade global news, 24 hours a day, owered by more than 2,600 journalists and analysts in 120 countries. For the latest, lets go to dave. Dave . Dave absolutely. Despite the weather that were seeing, of course, you little bit behind me, of course, a little foggy there, typhoon coming. A very good day. Shaped up. Have a look at this, with of the ption shanghai composite, were seeing gains across the region. Shake off a fairly rusty start, even japan, which is getting for the afternoon session. 1. 2 at one point. Of 1 . Ow up. 4 new zealand flat. Ne of the better performers, new zealand. Merging markets, have a look t jack carta and philippines. A lot of money continuing to flow into the merging markets. Not just equities. A look at these currency. Continuing to drop against emfx. These thats are fairly sharp moves. Should be the biggest drop in three or four weeks. At a korea one, 13month high. It doesnt help that it comes on a day when south exports for july came monthly straight decline the other big story, of course, dollaryen. The day out at 102. Weve clawed back up to 102. 53. Driving it across equities. Tokyo. Finally arriving to bond deals. 10year, panese negative 14. U. S. 10 years at just under 1. 5 . A s shaped up to be fairly interesting trading sessio session. Be revealed ll on tuesday worth 273 billion. Such package since markets crashed in 1990. T follows last weeks minimal addition to monetary easing by the boj. Or more were joined from toky by bonds and ethics reporter. Investors want to hear . The court has put the ball in their court. What they really want to is what is underneath the hood in this stimulus . 28 dline number, trillion yen. Thats on the higher side of expected. Le had but we dont know over what time period thats going to dont out and we also know how much of it is actually going to be new spending. Issuance they will have to do. What local investors are calling pure water in the package. So the questions are big ones, and until we find out dont know ors which way to go really. Yeah. Still some Big Questions out too. E, as you mentioned, ball is now in their court. Have left s to the door open for more ction as well especially for september. Right. Thats right. September specifically, hes of current view policy. Now, its not clear what triggered that its not what it entails. But certainly several analysts are talking about it basically allows new o create a whole policy mix if its deemed that the current mix is not working. Speculation e that there might be helicopter money as soon as really dideally, put pressure on him to act but what hes done really, minimal, he did the minimum really that markets would kind of let him get away with if i could put it that way. And just basically said, ets see what the fiscal stimulus looks like and then lets see how our current stimulus is working. Reassess in september. The expectations were so really the bar to actually do something was its e that difficult to confront. Ts a bit clever here in l