Now across asiapacific. Second straight day of the benchmark. Lets flip Asset Classes and look at currencies. The dollar regaining earlier ground that at lost. The aussie dollar on the back foot here. Dollaryen just under 101 for the most part this morning. Have a look at sterling. 129. 81. Very near the three handle, the turkish lira on the back of the downgrade from moodys. Angie thanks. Oil paring its biggest drop in more than two months with saudi arabias offer to cut production, opening the door to a future opec deal. Major producers meet and out your on wednesday with some hope that they will reach a deal on freezing output in the near future. What has saudi arabia offered here . According to the Algerian Energy minister, saudi arabia will cut output by 500,000 barrels per day, back to january levels when there were pumping 10. 2 Million Barrels. In august, 10. 6 9 million, which was a record, and we have this huge glut coming through. We have a chart on the bloomberg , and it will show you the monthly changes in opec production, the blue bars, as well as the percentage of capacity of production that opec is at. More than 800,000 barrels are flooding the market this month extra. Algeria once the group to cut collective output by one Million Barrels per day. Russia is pumping at an alltime high. Libya and nigeria have also resume production, so the new saudi arabia could be cutting production is very welcome, but different to what saudi arabia themselves that on friday when we saw that 4 plunge in the brent price. Angie the market does not believe there is going to be a freeze. What is the likelihood of an agreement here . Bloomberg spoke to 23 analysts in the industry, 21 think a deal is unlikely. We spoke to the head of commodities at citigroup, and he said it would be difficult to tell if a phrase would be credible or doable. Minister an energy lot more bullish on a potential deal, and he says the situation is worse than when ministers last met in june, and this time theres going to be a new partner at the table. Lets have a listen. Iran was not present. I ran will be president and i ran present in be present in algeria. The difference is that everyone will be here. With iran at the table, perhaps they will come to some kind of agreement. Angie may be. If the analyst we surveyed a bloomberg are correct, it does not look like it will happen this time, but is there still some sense we will get a free steel at the end of the year . Opec members are hopeful of this because this will be informal talks on wednesday and now cheers, but they have the formal meeting in november, so hopeful there could be a resolution there. Algerias Energy Minister said opec is not losing credibility. He says it is like a Phoenix Rising from the ashes. Is hopeful that members will come to some kind of freezeout put agreement by the end of the year. Angie ok, hoping and waiting. Thank you so much for that. China sky high house prices may present the latest challenge to the yuan. We have our bloomberg chief economics asia correspondence here. Inthe thinking is that again chinas top to your house prices, a 25 gain in u. S. Dollar terms. U. S. Prices have only risen 5 , so if you want value for money or more bank for your buck, you will say i will not buy a flat market, i will put the money into the u. S. Instead. When the money puts pressure on the one, its because it is pouring out of china. That is the thinking behind this. Property have seen the curve in china and other nations that have seen this money flow from chinese investors into real estate markets, vancouver, new zealand, australia, canada, so are we going to see more curbs put into place globally and domestically . Example. Ver is a great house prices are coming off a little bit there now. More. L see the balancing act as they do not want to kill off economic recovery. It is it so important to keep the economy taking over, but they dont want to run away Freight Train they cant control. At the moment, we are looking at a runaway Freight Train. That is the balance they need to play here. Angie is this a test of policymakers credibility here . 100 . They let it inflate all the way, then had a struggle to get ahead on the to get a hand on it. It are they going to deflate . That is the big challenge they are facing. Angie absolutely. Thanks. Appreciate it. Back to markets right now, an interesting day what else are we watching . David im watching the philippines. The market is underperforming. It is a down day across the asiapacific, down. 9 . Have a look at the currency. The reason i bring this up is that it has breached that low in january. It did so on friday, but we are firmly above 48 against the u. S. Dollar, which takes the currency to the weakest level in seven years. 2009 was the last time we were at these levels for the peso. A lot of outflows, 22 Straight Days into friday. That will be the longest stretch on record. Date astill up year to far as inflows are concerned, but you cant ignore a spike like this. A lot of factors going into this. Just keep your eye on this market. We are also following other stocks across the region. In hong kong, casinos leading declines. Credit squeeze coming out with Credit Suisse downgrading these two stocks for different reasons. Wynn macau down 2 . , thats playing out quite nicely, up 25 . Flip the board, south korea, these two are related when you talk about hanjin shipping and hyundai merchant. Hyundai merchant now considering perhaps purchasing some of the ships of hanjin shipping. A lot of that comes down to the banks. Now the banks cant get repaid, so theyre going to hyundai merchant. You can read about the story on the website. Hyundai motor, workers going on the first full on strike in 12 years. Hereet 10 must every year you get one almost every year here. Weve been talking about centralbank policy with our guests today, including the former vice finance minister of yen, also known as mr. Eisuke sakakibara. He says the shift towards yield curves by governor Haruhiko Kuroda is appropriate. , thence he took over easing of Monetary Policy has worked. It has led to the depreciation of the currency and substantially increased equity plays. That positive impact of easing is now coming to the final stage, but so far, his performance has been quite good. Central bankers will remain in the spotlight this week with governor kuroda speaking this afternoon and fed officials commenting this week could we ask jp Asset Management what we should expect. There has been so much confusion over policy for the last nine months, anything that pointed towards particularly the fed lining up the market for a rate hike come later in the year will be very much welcomed. We have seen september pass with out too much market turbulence. So anything that goes towards particularly from janet yellen indicating they are on pace for a rate hike in december in our view would be very much welcome in terms of adding to that stability. Standard chartered says growth in asia is outperforming the rest of the world, but there are still threats out there, including Central Banks. You certainly do still have some event risks to watch for, most of which could these surrounding whether or not the anotheroing to deliver hike in december or a not the u. S. President ial election, opinion polls will be swinging more in favor of being uncertain on exactly who will be the next president , but centralbank policy for now we believe is pretty much getting out of the way. In our view, even the fed will be doing that, but that will only be later that we get more confirmation of that. In the meantime, the markets will be able to climb the wall of worry in being able to do with a lot of those challenges. Angie that is the word on Central Banks. Coming up later this hour, city group raises the odds of a trumpet victory, but warns it could cause goal to lose luster. Short break, and emergingmarket stocks post weekly advance in two months. We will ask how long these gains can continue. This is bloomberg. Angie welcome back. You are watching asia edge. I am angie lau. The s P Global Ratings in saying bhp moody will be below the threshold for a rating. Comes as a number of have had their own outlooks upgraded as resource prices make a comeback. Shipping sinking again amid reports that 40 of its 97 ships at sea have unloaded. Hyundai merchant is looking at Hanjin Shippings assets. They have asked hyundai if it wants to acquire ships. Merchant says it is considering all measures to bolster its business. Checking shares, hyundai merchant climbing 6. 5 . From ships to automobiles, Hyundai Motor is tumbling as workers stage there first fullscale strike in 12 years. Staff also take partial action for the rest of the week. Last month, the unions rejected a tentative wage deal which might affect hyundais efforts to reverse 10 consecutive quarters of falling profit. This was the first time that unionized workers had voted down a pay deal. Get back to whats happening in the markets, emerging stocks posting their biggest weekly gain in two months, that as investors resume buying and bet on Central Banks. Joining us this morning, andrew sullivan. You are taking a look at the flows, and much of it is asia leading the way. Think people within asia are slightly happier with the outlook because the accommodative policy we are seeing out of china. Investors of view, it is difficult. They want to stay with liquidity , because getting out and getting in stocks is difficult. Angie the selloff in the equity market, investors while initially jubilant are nervous again, why . We are running into the end of the quarter. The fed has not changed policy. There is little reason for funds to change their position. You are seeing a little pullback from that. Going into the next quarter, the president ial election, rather like rags it, too close to call, so maybe a lot of money is looking to sit on the sidelines until we get clarity. Aree interesting that we seeing very light volumes throughout the morning ahead of that big Donald Trumphillary clinton faceoff. Pundits are saying this will be crucial because they are so close, and i suspect it will be like brexit. Could make a big difference one way or the other, depending on which one comes out on top, or it might just be that the states quote is maintained, and that probably will worry the markets as to having no more guidance. Angie it is critical. Hillary clinton has given up a double point lead here. Clambered back. He has all the momentum in his corner. Yes, people are worried that he sometimes tends to run away with himself, which could undermine the good work he has done. A lot of people have probably looked at his team. He has changed his team a number of times. The latest team has key people in key posts, which is in urging. People are still worried about the fact that he is not known to leave it to his delegates. While there is good staff there, it still comes down to the top. Angie he has ted cruz in his corner right now. Whether he has the markets in his corner, that is a different story, but it seems we are waiting for some sort of catalyst, Central Banks are geopolitical something. Are waitingally, we for the Central Banks to start raising rates. We have had so much fed guidance that they would like to raise rates, but they havent quite had the gumption to do it, but that is what the markets wants to see realistically. Think about it. In japan, if you are a pensioner, you will not spend your money when youre getting nothing back. Once you start getting money back, japanese pensioners with the biggest tourists in the world come up with that is when they were getting a return on their money. Angie also the yen was very strong as well, so when a long way. Be getting some income coming through. It has been an interesting experiment, but it hasnt really worked. Angie what about putting a freeze on that 10 year yield curve. The that help tensioners and banks . Does that help pensioners and banks . It comes down to an academic argument. Can you manipulate the yield curve to influence the economy . It used to be you looked to the yield curve to decide what the economy was doing. As he Interest Rates dont work, i dont think manipulating the yield curve will have much effect. Angie it is hard to do that when fundamentals dont comply with. Dont comply. Ofin asia, there are a lot retail investors. Whether stocks go up and down and they are getting interest on their money. Angie what about oil . We are still seeing that in an oversupply situation. That is not good for the general economy. Angie do you think they will go for a deal . At the end of the day, i dont think so because too many countries want the money. Iran needs that cash. The priceia once higher because it was to squeeze out the minorities. Sudan and nigeria need the money. There are so many vested interests. Angie lets pick up this conversation when we get the rest of the group in and about 20 minutes from now. Thank you so much for that. Next, the cutbacks in asias Banking Sector claims more casualties. We will take a look at the latest names to wield the ax. Details just ahead. This is bloomberg. Angie welcome back. You are watching asia edge. First Goldman Sachs, now tudor investment. We have more on that story. What is going on . We are hearing from people familiar with the situation, but it has not been announced. It shows a bit of a trend, at least with Goldman Sachs, the dropoff in dealmaking in asia. Investments, the 11 billion hedge fund, it looks like there will be closing down their trading desk in singapore. They have about 10 employees in singapore, some of those in the Quantitative Research side of the business. Sometimes those quantitative traits have been outperforming humanbased trades, so people familiar with the situation saying they will keep that. They will focus on the Quantitative Research right now, and overall globally, tudor last month cut 50 of its workforce. Has seend industry some of the highest redemption levels since right after the Global Financial crisis in 2009. We saw 2 billion pulled out of tudor funds this year alone. Bit of ams to be a shakeup as far as where to allocate people right now. Angie what about Goldman Sachs . What are they doing . From a with the situations and Goldman Sachs could be cutting 25 of its Investment Banking jobs in asia japan, including hong kong. 75 jobs cut before the end of the year because of the slump in dealmaking across asia, but again according to bloomberg ranking, Goldman Sachs has had a dropoff. They were number two in equity issuance last year, down to number 11 this year according to bloomberg rankings. Japan offerings have declined 29 . They were also involved in the 1mdb fiasco in malaysia. Piee not only is the shrinking, theres share of the pie is also shrinking as rivals gear up. What we have always heard is that the fees just arent paid pay out, expected to the same for International Firms by asian clients as they would. Been seeing that as well. If we go back to the tudor story, they have been having to trim their fees because of what we have just been talking about. I would assume Goldman Sachs as well. Angie what about other banks now . People take a look at Goldman Sachs, really a stalwart of the industry. Ubs has already announced Senior Management cutbacks in asiapacific this year. Also with job cuts in asia this year, but it is not all to the downside. We have had some other hedge also set uphave some units in singapore this year. It is not all going in one direction. Angie thank you for that. Sonys magnificent seven, lets go to the movies. Topping the u. S. Box office in its debut weekend, taking in 35 million. The remake of the successful Steve Mcqueen western earned a mostly positive reviews, beating warner bros. Animated film stork, which earned 21 million. The wind is a boost for sony, which has faced falling market share. In 2016, it is fifth among the six major phone companies. Reallifeovies to across the region in the markets, lets check in on trading across the region for you very quickly right now in sydney. Some losses. In fact, it is a Beautiful Day there, but a sea of red across the region here. We see a, korea participate in selloff,al asian stock really extending last sessions retreat from a 14 month high, and right here in hong kong, it is alsonot, not selling off, and we will get the latest from tokyo. Stories thisp hour, oil has rebounded to pair its biggest drop in two months after report saudi arabia has offered to cut output. Ministerian industry said saudi arabia would reduce production to january levels when it pumped 10 point 2 Million Barrels a day, 500,000 barrels fewer than in the month of august. Opec members and russia gather on wednesday with algeria calling for a collective cut of one Million Barrels a day. Chinas rocketing property prices may present the latest challenge to the yuan. The royal bank of scotland says the housing boom could force investors to look for cheaper alternatives overseas. It comes as beijing posts curbs to cool demand. Ratings companies warning about contagion risks among chinas smaller lenders as interbank support increases. Moodys said wholesale funds accounted for 34 of small and mediumsized Bank Financing as of the end of june. One lender, Shanghai Development, has seen short term barring and repurchase agreement surged 25 . Global news 24 hours a day powered by ove