Moved toward the lunch break. Currencies as were most of the afternoon is. The markets may have positioned a little too much. Really capping what we are seeing into this monday morning. When you talk oil and metals. Precious metals in fact. Is still down. On i will be back with more in currency choices. Welcome back to on the move. Profitschina yuan jumped in the first half. Lets bring in stephen engle. He has been following this for us. The Housing Market has been tumultuous. It seems to be rebounding. You are one of the few people who pronounce it correctly, vanke. Not vanky. 804 million u. S. Dollars. Revenue up 49 . That is the negative impact that has overshadowed the company for nearly a year. The end of last year is where we got a struggle that southern china, an obscure conglomerate, was revealed as being the largest shareholder. Was notgement of vanke pleased with this. You have a few key players. China resources. Mount evergrand increasing their stake. Competing interests. Out,nt know who will win how it will play out, and what their intentions are. Some wereonne saying, is it a white knight or not stephen this is quite an obscure story. We asked an analyst and he doesnt know. This mysterious takeover group is nobody knows what it is. As i said the source of capital is unclear so everybody is scrambling to figure out what the moving parts are and its unclear how it will end up. This morning, we had a briefing here from vankes board secretary giving latest developments. He saying that the ownership tussle will bring a larger challenge to the company and its operations in the second half. He also says that s p and fitch may have to adjust. Goes on to say that they have been wanting to communicate with all of the involved parties and hope to reach an agreement. Ever grand did not disclose their attention, he says. Story becauseoing we do not know how it will play out. Signeds telling us that contracts declined in july. There are all kinds of issues that could be affecting the credit rating, credit worthiness and operations of this large developer. Yvonne interesting we are seeing a bump in shares today with china vanke. Tripled. Or miners have is joining us. Tell us what is behind this remarkable result and is it sustainable . Gains that we have ton today are largely down the work the company has done on reducing costs. They cut their cost on the year by about 43 . Though iron ore prices are trading at less continuous speaks it means they continue to bolster margins. Of lower costs, stronger iron ore prices means the margin is fantastic and is continuing to improve profitability. Goodutlook is particularly when you think back to a year ago. With lower oil prices, has been quite a turnaround. Talk about the outlook you have laid out. Do they see that there could be further gains . Reporter myself and other reporters have just been talking to management in the last hour. Better been given steel demand in china, bettoer steel prices in china. Nsport, health, education they also that is positive for the iron ore market. They see the market in supplydemand balance. They are not necessarily saying that they will see gains, but their expectation is pricey. If they do, that is great because it will continue to show what we have seen today. Yvonne also steel, profits jumping. Could there be gains . Does it have legs to keep going . Similar factors. It is all about similar strength in china. Strong demand. All of that has been prompted by the government stimulus. That company lou scope reported bluescope reported those numbers today. They are optimistic on their own outlook. For the wider industry it will remain challenging. Fromompany will benefit stronger steel prices but not so much for his competitors. This Electronic Company said to be purchased for 3 billion. A spokesman said no agreement has been reached. Gaveys market close intersil a market value of just over 2 billion. As rising since this morning but falling by more than 4 right now. Be announced as 5 . Y as pfizer has been relying on new branded treatments including cancer drugs. Fisher has signaled that a 2016 rate hike is still on the table. The u. S. Ays that economy is close to meeting the fed goal and he expects growth to pick up in the coming quarter. Lets go back to the market now. Currency is very much in focus as investors try to break down those recent hawkish comets from the fed. At thehave a look bloomberg. Its what we always used to get an idea for what the pricing is. These are fed fund futures. What that shows you is the probability of a fed rate hike in december. That blue circle i have highlighted shows it is coming back in a strong way. We are looking at a 40 chance. You understand why we are seeing what we are seeing this morning. It started last friday where you are looking at a lot of Dollar Strength. Especially in these companies that have been substantial. Back to me. Ndonesia rupee not a relatively big surprise indonesian rupiah. Not a relatively big surprise. That Dollar Strength coming through at its lowest level for the rupiah in about seven weeks at 13,200. Very weak, as expected. Coming from the pboc. This is roughly where the fix in was to begin with. The year to date chart. Some strain coming through for that currency. You can see a pop. 1127. Just some lines coming out of manila. I dont know how they are doing this. They are extrapolating the exchange rate. You can do that into 2022. We are talking six years down the road. They are looking at a range of thought that is a five. To the u. S. Dollar. That is a projection. That is the assumption of the government. There is this report that the presentation is doing. Yvonne you can get more on the markets and the rest of todays other new set bloomberg. Com. You will find indepth reports, market data, and you can watch some of the interviews you may have missed today. Hasng up later this hour, gdp gone out of fashion . Why some economists think it is an outdated measure. And further speculation that all signs are pointing to a hike this year. Yvonne a quick check on the latest business flash headlines. Brink to investigate a described as a hollow shell. The bank is called Mega International commercial. It was fined for evaluating Money Major League Baseball has approved the sale of its majority nintendos sale of its majority stake in the seattle mariners. Resident holdings have been sold to other members of the current ownership group. The financial track of the sale will be included in nintendos next Quarterly Financial report. No terms have been disclosed so far. One partner plans to sell a 60 stake of its joint venture to the parent happening. Company will make they are trying to sell it as part of a Company Restructure due to be completed by 2018. The Dollar Strengthened as hawkish comments from a fed official boosted the likelihood of a rate hike this year. Fisher says that the u. S. Economy is close to meeting the Central Banks goals. Lets bring in our chief agent economist asia economist. Fisher joining in the hawkish talk. Did he take away the attention from jackson hole and janet yellen . Reporter guest possibly. Has been a lot of disagreement over the last three or four mon ths. Fisher is leading the way for the hawks. Janet yellen has been clear that she does not see the need for raising rates anytime soon. There is a power struggle between the hawks and to the doves at the moment. Yvonne our markets pricing and that yellen will echo what fisher has said . Guest the markets have priced in one fed hike by the end of this year, one or two next year. That is where we would see things moving. The real key element is what would happen to global growth. That is a key driver for the decisions. If you have the s p will require, moving higher, the likelihood is that the fed anna yvonne are the feds too hawk ish . In the market too dovish . Guest i think that is about right. Think the markets are overly confident that Interest Rates wont go up. If you look at the difference between five year, five year inflation forwards there is a lot of things not being discounted in the market. There is probably a reason to be more hawkish in terms of futures markets. Yvonne you mentioned global growth. Has there been anything that changes your outlook for the second half . Guest not really. Brexit has been an interesting experiment. You had this massive listening by the bank of england. A lot of stimulatory talk. We havent seen anything from the feds yet except concerns about the impact of global growth. The numbers are suggesting the u. S. Is in for a good second half. Or in the japan region do you think the fed could disrupt the momentum we see in asia . Guest a lot of what is happening in asia is flowdriven rather than growthdriven. If you look at post brexit, the u. K. Cut Interest Rates, a decline of growth in europe. And it flowed into emerging markets. Vote, butd the brexit a lot of it flows into asia being strong. Could the fed disrupt that . It would if they raised Interest Rates quickly, but we dont think they will. Yvonne you mentioned japan as the one victim of all this. We just heard from kuroda over the weekend that we could see easing. Is there a surprise out of that . Most people are expecting something. Guest people have been expect something for quite a long period of time. Yvonne i feel like september 20 is so far away. Guest the bank of japan is clear on what they need to do. Something big. If you look at with the imf said in its article in july, it said that policy has to be really robust and has to try to make a difference, otherwise there isnt much point. The japanese have been making little changes. Something,ants to do he has to do it big. Yvonne big in terms of unconventional . Guest that is not kurodas part of the policymaking framework. It needs to be a twopronged approach. Bealso needs to monetarydriven. Yvonne do you see that shift toward fiscal . I was speaking to someone earlier, saying it is not so much a shift it is a shift to the government. It does not bolster much confidence. Guest i would agree to some degree. Has lost credibility. Its negative Interest Rate move earlier was a disaster. Certainly the way in which it vacillated between making a big move and not has not done credibility any good. It is up to the fiscal, microside of policymaking to make a difference. Yvonne coming up, the show must go on. Ministers prime resumed his siege after a health care issue, but what is behind the stumble . Yvonne you are watching asia edge. I am yvonne man. This airline has canceled many flights today. It was expected to make landfall in the tokyo area around noon. 25,000s more than passengers have had their flight plans disrupted by the typhoon. Theyve canceled 96 domestic flights affecting 21,000 passengers. Officials saying more than 730,000 flew in last month. More than 40 were women in their 20s and 30s. Local businesses have seen a change in shopping patterns. Chinese tourists spent a lot on cosmetics and medicine. There is less demand for Electronics Since the quality of chinesemade products have improved. The singapore Prime Minister lee hsien loong has fallen briefly ill after delivering his address. He had been speaking for more than two hours when he abruptly stopped and had to be helped by medics. Certainly some scary moments we saw during the speech. What happened . Reporter it was a scary moment. The Prime Minister lee hsien loong became unwell because of heat and dehydration. We have been told he was probably fatigued by his recently hectic schedule. The prolonged standing not helping. Thankfully, it wasnt a stroke. His finance minister suffered a stroke in may during a cabinet meeting. The Prime Minister did return to the podium to finish his speech for another 15 minutes. He was in good spirits and even joked about the situation. I gave everybody a scare. [laughter] the last time i did this, i was i think square that is what happened. Ive never had so many doctors look at me at once. I will have a full checkup after this. Yvonne reporter he definitely has a sense of humor now. He has been given the all clear. He looks pretty good enough. Yvonne glad he is in good spirits. What more do we know about singapores Succession Plan . Is notr succession something that has been talked about much a month singaporians. It is important, because singapore is a young nation. Pm lee says his successor will be taking over soon after the next general election. He said, what just happened makes it even more important for him to talk about it now. The core team and the next generation of leaders are already in cabinet. He used the last election to set up future leadership. Theother country meets growing expectations of the population. Yvonne thank you so much. We are looking forward to the afternoons business in tokyo. We will get the latest in japans reopening. We are dealing with the stronger dollar here in asia. As well. Ped with gold this is bloomberg. To increaseqs move exports despite a Global Supply endw oil run its lon its longest run of gains in four years after baghdad announced plans to boost deliveries 5 . Nigeria will also boost output after militants said they will stop attacking Oil Installations in the niger delta. Fined 180 million for violating u. S. Antimoney laundering laws. Mega International CommercialsCompliance Program was a hollow shell, regulators say. Suspicious transactions between the new york and panama branches related tontly fonseca, the law firm at the center of the Panama Papers scandal. Bitda 50 higher. Blue scope reported fullyear underlying profit at 222 million dollars, below analyst estimates. They expect higher pricing for the australian stee businessl this year. Global news, 24 hours a day, powered by 2600 analysts in 120 countries. This is bloomberg. The latest from the markets right now, going to david ingles for that. David its not very convincing. I guess, for the lack of a better word to describe it, not many clear drivers. When you look at equities its about earnings. When you look at these macro sensitive asset classes, we talk about things like fixed income, currencies. Apart from that, theres not much to trade on, which is what lanes are flat. China, volumes are down. Other bigger markets, japan is reopening right now. Taiwan getting sold down. A decline across the bank and energy stocks. Taiwan has done for a well, as has south korea has done very sol, as has south korea, some of these markets that have outperformed are getting sold off on expectations, or bets that the fed might actually move in december. Have a look at yields across the board, on the way up this morning so far. Japans 10year is negative seven. And the u. S. 1. 9 , at 1. 6 . Lets end with this. Dollar index, another strong day after the move we saw on friday, so asian equities, asian currencies are getting sold off right now, with the biggest decliners, taiwan dollar, korean won, and the new zealand dollar. Yvonne thank you. The incoming Indian Central Bank governor is known to be rather lowkey in comparison to his predecessor. However, like his predecessor, patel is an inflation hawk. Reporter joins us live from mumbai. How are investors reacting to the appointment of dr. Patel . We have been waiting for a while now. Positive is the reaction we have heard from most people, international and indian investors alike. Its about what the government has done, clearly chosen continuity over change by promoting dr. Patel from Deputy Governor to the next governor of the bank of india. He has been seen as an inflation hawk. To benvestors are likely rejoicing as his focus on inflation will push rates lower. The reaction overall has been patelve, but urjit will take over in an environment where it is not just his call. Soetary policy could affect, he will be part of a larger panel deciding Interest Rates. Yvonne he is also not really known to speak his mind. Very different style from rajan. Is there a chance they might be less immune to political pressure . Will he play ball with the government and cut rates . The decision on Interest Rates impinges hinges on a couple factors. One is inflation, which has become uncomfortably high from a bank of india standpoint, at a threemonth high. And oil prices are inching up. Oil prices had been at an alltime low, from january 2015 to july, and Interest Rates were down 150 basis points because of that. But now the environment has changed. The decisionmaking process has also changed. So given the track record of has been on as far as inflation, hes likely to be very conservative on Monetary Policy decisionmaking. Secondly, his situation with new delhi, you said rightly, you have seen he. Is not outspoken he doesnt give many media interviews. That might bode well for negotiations with new delhi. Yvonne thank you so much, joining us live from mumbai. From one Central Bank Governor to another. The boj governor hero hugo kuroda says there is a kuroda says there is a significant chance they will extend easing. Andy sharp joins me now. Tell me, what else to the governor say in his interview that was new here . It was theally significant chance that is new. He often talks about acting without visitation if needed, etc. Without hesitation if needed, etc. But this time he went beyond his usual rhetoric. Saying there was a significant chance the bank would act, so taking a step forward. Speaking to analysts about this, they say that the markets are whether the bank of japan is running out of ammunition. But here, kuroda is trying to verbally say, we have still got ammunition. Dont count as out yet for more easing. Yvonne sufficient chance for easing. But what was the expectation, with the review the boj is doing right now . Andy very good question. You know, it has not been stated clearly what the review will look at. Will it be looking at the last three or so years of kurodas time as governor . Or, will it be more focused on the Current Situation in the economy, in the markets, the japanese economy, etc.