Welcome. There is a bullet train with some yen on it. It is soaring. The disbelief of abe. A lack of belief in the bank of japan. Day in ahe seventh row, the longest winning streak since 2012. Hedge funds are the most bullish on this currency since 1992. They have a belief that there is a tolerant level of the bank of japan. They actually really intervened in the fx market. Lets look at the repercussions or markets. You are seeing this pressure on the equities story. We seeing money flow out of japan. Oney is exiting tokyo the longest stretch of exit of cash since 1998. 46stors have stopped million worth of stocks. That is the yen against the dollar. Yan rising against the dollar. What else is going on as a consequence of the yen moving . This is your risk radar. Lets check in on oil. Rigs, up of u. S. Oil one third of 1 . Count the lowest since 1999. Brent, 42. 11. As the dollar drops, of oil pops, emergent carpet emergingmarket currencies they rock. Emergingmarket currencies up for the third day in a row. 1250. 99. Up 1 10 of 1 . Rbc predicts that gold will move by 9 . Lets get in touch with the first word news. Rishaad black rock chief executive calling negative Interest Rates particularly worrying. Leaning too much on extraordinary Monetary Policy as they make key decisions and invest in infrastructure. Bankersive rates and finance ministers had to washington this week for meetings with the world bank. David cameron will Face Parliament following a week of scrutiny of his financial affairs. He published six years of tax data in an attempt to demonstrate his integrity. He admits his handling hasnt been great. Mr. Cameron i know that i should have handled this better. I could have handled this better. There are lessons to learn and i will learn them. Do not blame 10 downing street or nameless advisors, blame me. Rishaad point said tolion in assets be sold by Standard Chartered. Forced to they may be turn some projects into Office Spaces as demand falls. Plans are in the pipeline for 35,000 highend properties. Surging supply does come as demand is weakening. A doublelebrating triumph. The resumption of the flight to the International Space station and the First Successful landing of its rocket on the floating platform. The boosters defined strong winds to land of the barge in the atlantic. President obama tweeted his congratulations. 2400l news powered by journalists around the world. On tor stop tories get our top stories on bloomberg. Manus lets get into these markets. Big moves on dollaryear, inflation data from the chinese. Make some sense of this. Money fleeing japan, that is a colossal amount of money that i mentioned at the top of this show. Julia it is really juliette it is weighing on the overall benchmark. We arent down as much as we were earlier in the session, thanks to that big game coming through in chinese equities. Ke 1 loss we saw on the the on the nikkei 225. Elsewhere, we have seen a big rally coming through in china. Actually limiting those losses that we had seen on the regional benchmark. Numbers showing the deflation in china is starting to moderate a little. Some games coming through in shanghai, which is lifting that index by almost 2 as it comes out of the lunch break. Elsewhere, a little bit mixed. Generally weaker across the southeast. We have seen those energy plans rally on the back of that big gain that we saw in crude on friday in the u. S. Session and as a continues to rise in asia. Pretty flat in new zealand as well. Just having a look at some of the major stocks we have been watching. Illumina in australia, getting its share price down by almost 5 . Itsokyo, having one of strongest gains ever. The price of its strings for the First Time Since they started selling them in 1999. Here in hong kong, some weakness a, postingough in prad its worst profit loss in five years. Limiting losses thanks to that rally that we have seen in cru de. The regional index not doing too badly. Manus thank you very much. All of the latest on the markets. Lets get a little bit more on japan. In her first interview since leaving the bank of japans japan board, the bank of has room to cut negative rates. One of the four centers on the january decision to adopt that rate. She said the central bank is to do a better job of communicating its policy but also warned that is likely to run up against the limits on bond purchases within two years. Lets bring in stephen say well, the global head of ethics strategy at bank of australia. This, she ist making this comment, she was a to sender. Lets see how these negative rate policies work. I think that is quite a reason to voice. Reasoned voice. Given that she is leaving the bank of japan, it is not difficult, given that the negative Interest Rate policy hasnt been successful, quite the opposite. I think the point we would highlight here is that dollar yen tends to be responding much more to the other side of the equation, the u. S. And the . E would look at pushing back i think i would tend to agree that it is going to be very difficult for the bank of japan to influence the yen. Manus i was reading a little bit yesterday on what drives dollar yen. Mountain. His great forreal yield differential u. S. Government bonds. Quid pro quo, you would want to own the yen bonds. Does that play into it . Interesting is an point. If you look at the ministry of finance, the Japanese Ministry of finance data, it shows that japanese investors are buying huge amounts of foreign bonds. That tends to weaken the yen as money leave japan. What we think is happening is, because of this nervousness about the effectiveness of the policy and the fed outlook, we have not seen this go out on the hedge spaces from an fx perspective. We think they are buying the foreign bonds and hedging the fx. That is why the yen is not weakening despite money pouring out of japan. Manus from an fx perspective, it comes down to this. When do you think the boj will intervene posted g20 . Can they . When what does a thing to take to move the dollar yen back to his own they are more comfortable with . Steven even at the current 08, we think the bank of japan is going to struggle. In an environment where the market is pushing back expectations, it is going to be very hard for dollar yen to rally. What the bank of japan really needs is for janet yellen to be more hawkish. Manus that is going to be pretty tough. Thought dollar 124. Bloomberg surveyed at eboundrm, are we rang until some piece of data breaks us . Steven we have been bearish. Our view was 108. We think we stabilize at the current level. Year end, we think we probably cut back a little bit, not far. I think the key is going to be what happens with u. S. Fed policy. Manus a lot more to get through, and we will of course get to the fed policy a little later. Stay with bloomberg, because everything you want to know about yen. The band collectively known as mr. Yen. The had the ability to influence the Exchange Rate in the 1990s. Stay tuned. Highlights of your weekend. Takingquarter earnings off in the United States firstquarter earnings underway in the United States. Tomorrow, the imf publishes the World Economic outlook. Wednesday, the Interest Rate decision from canada. Following that, the bank of england on thursday. The week, gdp, industrial output, and retail sales in china. Up next, flat as a pancake. Chinese Consumer Prices remain steady. A surge in food prices. Hong kongis a smoggy harbor where the hung saying where the hang seng is trading. It is 6 16 in london. Lets talk about china. They remained buoyant last month. Surging food prices at 2. 3 . Our bureau chief in shanghai. With a look at this headline data, does the inflation data actually spell out a more sustained recovery . Any improvement in the numbers, for example he Producer Prices, which month on month have turned to positive in the first time in two years, is a good sign for the economy. At, we should take a look perhaps, the underlying causes for some of this. Much of the Producer Price increase is likely due to weakening dollar, which has had an effect on commodity prices. To talk about a sustained recovery might be a little bit of a stretch right now. Signalin terms of the for restructuring, what do you walk away from . Everyone is focused on the y. An. The yuan very little has changed in terms of the fundamentals. The driver is likely a weakening dollar. We still have a large or heavy oversupply problem, not just in china but across the world in terms of major commodities, particularly hard commodities. None of the real issues have changed very much. Manus thank you very much. Lets bring back stephen, global head of fx strategy at the np bnp paribas. T there is some light at the end of the chinese tunnel, or maybe just taking a backseat for now. Certainly, steven the improvement is welcome. The key question is sustainability. Is this likely to be the trend Going Forward . Clearly, chinese authorities want growth to meet their goal of 6 to 7 . Anything here that is supporting that is certainly positive. I had a look at the yuan basket this morning. Lets have a look at the yuan against the basket. It is the First Time Since the launch of the basket that we have broken below the 98 level. A little bit of stability come a little bit of a move higher in some of these inflation readings, is this an opportunity to adjust the basket . Steven i still think there is a as of focus on dollaryuan the key driver here. The big move in policy from the chinese with renminbi last year was driven by the fact that the dollar was appreciating aggressively. You are seeing the dollar against the asian currencies appreciating a lot. That has all changed. Ast gives them a bit of time far as policy is concerned. I think the point we would make is, and the dollar start to appreciate again, particularly arenst asian currencies, we unlikely to see a significant change in policies. Manus there is this argument that stability in the yuan, a fed yen, a development a benevolent fed, and there is this debate that it is the strongest quarter since 2010 and we are going to see the overall spillover effect as her new momentum for emerging markets. It is all about what the fed does and that carries through. Are you as bullish peripherally . Steven i think that is certain that i think this is certainly the case in the shortterm. We have seen asian currency strengthen against a weaker dollar. The key rationale for this is now expectation that the fed will not be increasingly tightening. That is not a fantastically sustainable case. Manus the 10 currencies that are talked about in this particular piece, asian economies will grow by about 4 that all goes back to whether you believe the price of oil stays up on the rally as well. They are expected to grow by 4 . A pretty good gdp level. The other point i would highlight here is what the reaction in the Central Banks are. If you look at the korean won, it has significantly appreciate against the dollar. We would suggest they havent been very happy and they would start to intervene or adjust policy. Stephen stays with me. We have a lot more to get through. Lets talk about the Prime Minister of this country, David Cameron. He has set to face lawmakers later today after a week of scrutiny. It comes after he published six years of tax data in an attempt to demonstrate his publicist demonstrate his integrity. He has come under heavy criticism. Mr. Cameron i know that i should have handled this better, i could have handled this better. I know there are lessons to learn and i will learn that. Dont blame number 10 downing street, or numerous or nameless advisors, blame me and i will learn the lessons. I think he took an awful long time to say what money had in those trusts, what money was given to him by his family, what money he has received as a result of it, and what taxi has paid on it. There has been a series of rather changing stories coming out of downing street. Roughly a statement every 1824 hours. I dont know why he couldnt say the whole thing last monday. He hasnt said exactly how much taxi did or didnt pay. I dont think there is any evidence that this Prime Minister has done anything improper. Further than any leader in history just to a straight question, he couldnt give us a straight answer. It has taken us a week to get this far and we still dont have the full tax returns. Manus meanwhile, the chairman of the house of Commons Committee says David Cameron should be prepared to answer detailed questions about the eu referendum. The u. K. Prime minister has so far refused to appear before the committee, which is made up of chairman and chair women of all the panels that hold the government to account. Lets get more on all the story. Bought from the np para paribas is with me now. It sort of almost takes the specter away from the brexit debate. Prism, there is one chart that caught my eye the trade weighted value of sterling keeps dropping. Sterling, we know, has risen what has risen quite aggressively. This is a great chart. I would focus on three key points as far as sterling and brexit. Firstly, sterling is extremely weak. Our valuation models show that sterling is currently around 10 weaker against the euro than you would otherwise expected to be. That is the discount that is already priced into sterling. Secondly, the market is very short sterling. We would argue the biggest short in about eight years. The third point is highlighted is volatility. The price of insurance in the market has increased dramatically, far higher than ahead of the scottish recommend of the scottish referendum. What that tells us is that a lot of bad news is already priced in. I would argue, in an environment still by aolls are small margin suggesting that the u. K. Will stay in the eu, the sterling rally will be dramatic if they stay in. Manus the sheer drama. Who knows where we will end up. Swiss is where we are seeing a little bit of flow of the money. Up next, we will talk about the earnings season that gets underway. We will take you through what you can expect from the big results and big impact. It is a beautiful monday morning , right here in the city of london. Manus good morning. 7 30 and brussels. Lets get to for bloombergs first word news. Thank you. Executive calling negative Interest Rates worrying. Nations around the world are leaned too much on Monetary Policy while failing to make key decisions and invest in infrastructure to support growth and growth. They head to washington this week to a meeting of the imf. Remaining buoyant on certain prices in the index from a year ago. That matches februarys level. Food prices jumped 7. 6 . Inow slightly february. The first month increase since 2013 viewed Standard Chartered that is according to people with knowledge of the matter. Sheet e its balance plans are being unveiled for a new cost 1 billion in be it will be a notch taller. Construction is scheduled to begin at the end of june and the plan is for the building to be the expo inhost 2020. The first person to win the masters and 12 years. Parilliant five under defending led by five shots in the approach to stanford. He imploded and dropped six shots in three holes. , 24 hours a day, powered by 2400 journalists and 150 bureaus around the world. In 150 bureaus around the world. Manus, over to you. Manus were shot, thank you very much. Thats the markets. Caroline hyde is here. It is the start of Earnings Seasons in United States. Caroline we are going to be digging into asian trading. Meanwhile, we are seeing the asiapacific amex a. P. Drilling down on the industry group. If you look at the regional basis, japan really tugged down the market. Yen front and center. Oil front and center. Different stories being played out. Function, a great way to look at what the Industry Groups are doing. Materials also outperforming on the downside it is teaming see the consumers discretionary. Financials also looking pretty gloomy over in asia today. Significant diversion when you are looking across the Industry Groups and indeed different geographies where looking at what is driving . It seems to be the japanese yen. D l performers over the past five days. Today, the yen driving the 17 month high versus the u. S. Dollar. This is the world currency. The last five days, the japanese yen up 3 points up 3 . The u. S. Dollar, the clear of performer. This helping to send japanese stocks lower. The nikkei trading lower today. Ramping up their bets on the again, continuing to see strength. The highest push back since 1992. ,ooking at what is keeping us oil. It has been a real issue of what has been happening in the market. We are seeing energy outperforming. I want to see how the rig count is going. This one is joining oil prices higher. Is drawing oil prices higher. The 40 level. This as it continues the two test the deterioration of oil 180 by theit we have machines over the past year. 354 and areown seeing that drive oil stocks and prices could lastly, this is why china is outperforming, ppi is speaking up for the First Time Since 2013. Notableercentage point,. Injecting optimism into china trading today. Manus caroline, thank you. Lets talk about volatility. It raised test it erased almost all of its gains in 2016. The biggest slide since february. I johnson is here with the chart of the hour. Oil is back. It is this one present range that sets the stage. To the turning point, markets, worrying about Central Banks. Worrying that the rally is beginning to run out of steam. Guy what is going on here . Guy mental what is going on here . Echo manus what is going on here . Uy up 1 , down 1 the market is unconvinced either way. You feel the market is at the turning point when we heard into the earnings season Caroline Hyde will talk about the earnings season in just a moment. We go in with very negative