Countdown. Anna welcome to the program, everybody. Lets start with the surprise move. This time by the singapore monetary authority. They are their Monetary Policy. This is a trade dependent city. Therefore, it has to cross into many asset classes. Manus what struck me this morning was the singaporeans moving back to policy they had in 2008. Necessarilymeans everybody is going back. But this is a reversion. The ecb had a step back and policy. The next thing youll ask yourself, is kuroda there . There is a limit to the negative buy. The singapores sling. You have the Singapore Dollar, it drops. Maybe that is the most impactful that we have seen. That lets bring some of up for you. We see the action in emerging markets and currencies. We have the new Zealand Dollar in there as well, and the Australian Dollar which was hit as well. There you are, some of those moves. Indonesian, or new zealand, the result of what we saw out of singapore. Piece to be is a had in terms of these currencies. Was the biggest exposure and the biggest relationship to moves in the Singapore Dollar . That is definitely in the peripheral regions. We are back to crisis mode. The Malaysian Ringgit is correlated as well. Oil is dropping this morning, stockpiles are rising. Anna this is the latest news item in terms of the dollar price. The oil price lived on a survey of traders and analysts trying to get some kind of agreement on the output. We have analysis of that story coming up. Lets get to the bloomberg first word with rishaad. Rishaad new zealand centralbank sing a journalist leaked their surprises last a month. An independent investigation found a news hub media reported the cuts. Although, the reserve back of new zealand said there is not evidence that it had any impact on Financial Markets it will be discontinued. For rate decisions. Australian jobless rates fell to the lowest in two and a half years. That was compared to economist predictions of a rise. The signal to the central bank is unlikely to ease policy. Chief Investment Officer goldman a wildaying to expect ride in the world stone market. Not that much to show for it. The volatility will continue. That is the nervous investors. Dump shares and even the slightest hint of bad news. He goes on to predict mid singledigit returns will continue. High debt constraint will grow in the Worlds Largest economies. Taking a look at new york city, civil employees exiting its 1. 5 billion hedge fund investment. That could come as soon as today. Amid concerns of lagging performance and high fees. And of course, the riskiness of this particular asset class. You can find more stories on top. Anna thank you very much. A quick word on news we had been waiting for in europe. The offer for their business by eqt has been successful. There had been some questions today about whether that offer some fall apart due to shareholder reluctance. Onus we will keep an eye how that continues. Look at the price, pretty much up there. Lets see how that trades on the day. A very good morning, the singaporeans have gone back to zero. How is that playing out the equity story . Good morning, we are still seeing some pretty good movements coming through in asian equities. It is been a great week. The longest winning streak we have seen since this time last year. In fact, we are very close to getting back to the levels we saw before the first of january on that regional index. Really taking that lead from a we saw on the european decision and the u. S. On wednesday and also of course they hope the strong gdp rate will be get that out of china tomorrow. It is pretty flat. We are seeing a little bit of a comingk coming through off of those earlier highs. Generally, it has once again been the strong rates coming through. Yen weakens for the Third Straight day. Singapore is also having a pretty solid session as well. Having a look at that Singapore Dollar you have been mentioning, it is down play 3 right now. 3 right now. This is always a little bit of tricky when the numbers seem to be a little bit manipulated. Jobs in march6000 but they downward revised their february numbers. The aussie dollar is still looking pretty strong right now. Positive, i very session coming through across asia. Setcan see, we have every to moving higher. Was basic material suppliers late in the game today. Singapore central bank unexpectedly ease their monetary south. Moving to a mutual policy of 0 appreciation in the local dollar. Manus that policy was last adopted during the 2008 financial crisis. Show Statement Growth in the First Quarter as singapore feels the effects of the global downturn and the chinas weakening economy. Anna good to see you, talk us through the decision. The second unexpected decision in less than 16 months. Singapore surprised a second unexpected decision. The first time it is gone neutral outside of a recession. All of that suggests Economic Conditions have worsened since the last centralbank meeting. Said they needed to adjust because its competitiveness has taken a hit. Some say it may not be the end of the easing cycle. An inflation risk remains. The next easing could happen at the next meeting. Got smacked it down, the most since january. Singapore may be the first of many to ease. Speculation for some other policy makers could follow suit. Manus haslinda, this easing a slowing economy. This is the first time we have this movie outside of a recession. What does the latest gdp report say . Haslinda well, it is gloomy. Halt. Has come to a the Services Sector is leading the drop along with factories. More businesses were shot and opened in february. When you take a look at bank loans, they have declined every month sent october. That is the longest period of decline in 16 years. There steadily lowering their growth. It is asias Financial Hub, theyre feeling the effects of a global slowdown. Fortunately, it is more susceptible to Global Economic swings compared to most of its neighbors. Anna not a pretty picture. Thank you, joining us there from singapore. Japans Financial Markets would have been in a worse shape if the central bank had not adopted a negative Interest Rate. Kuroda did say this policy could weigh on the countries lenders. The negative Interest Rate has potentially other effects on the profitability of the banking sector. Privateon is that banks and upholding assets. That could have a negative yield. Ecb Vice President defended the Central Banks negative Interest Rate strategy as a positive for the euro area. He said those only so much that policy could do to boost the economy. It is, nevertheless, important to recall that there are limits to the use of negative deposit facility rates. Just assessing direct costs can mitigate these concerns, but cannot dispel it altogether. Manus lets welcome our guest for this hour. The chief economist at wealth management, great to have you on the program. Lets start with the this ongoing debate about the effect of negative Interest Rates. Ecb defending and the policy. In terms of negative effects that can have, what are your thoughts . Are exceptional Monetary Policy that weve had since 2008 clearly made sense. There were couple of lessons to be tron from the great depression. At which time, the quiddity was not injected into the system. We all know what happened then. It has been great we have had all of this liquidity. It is a great theyre taking this radical stance on Interest Rates. But, in what universe doesnt make sense to have this going on for so long . It can only make sense to keep this window open in order to let the government do the structural reform that are really necessary to produce a higher Sustainable Growth rate. Monetary policy can only accommodate the price level. It cannot make the fundamental changes in the economy that are needed to get the potential growth rate hire again. Manus that brings us for a much too the viewpoint that negative rates have not necessarily reached an impact on the real but if we challenge Christine Lagarde said yesterday, who has the firepower to really change the dial in terms of Global Growth with fiscal policy . Marie exactly, it is obviously really important. It doesnt only getting the potential growth rate up again is not only a question of taxation. It is a question of the structure of the economy. I think this is really the worlds biggest problem. And a sense, we dont talk about this enough. Since 2008, all the Major Economies have seen their potential growth rates drop. In the u. S. , it is currently estimated at below 2 . Once we understand that, we get a different view. Anna are we measuring the potential correctly . Marie we do that in the mud of labor you have and the amount of capital, and obviously the productivity you can get out of these. With high rate of unemployment and underinvestment, you get a lower potential growth rate. This is really what it is all about. With higher potential growth and actual growth, we can pay off the debt and get people into work. Anna it comes back to the productivity question again. Marie well, obviously the u. S. Has a low unemployment twice that. Rope has imagine if we got all those people into productive work, what would happen to the growth rate. Manus one of the things not happening in japan, the nominal effect of the Exchange Rate. Negative rates, you can see if you were to benchmark policy. 10 . En is up loan growth in japan is the weakest in three years. The ecb used new targeted on lending. Focus could that proved to be a decisive dial mover . Loan growth in japan is under pressure. A conditions are improving. [laughter] marie again, i think the currency and the Exchange Rate is only a palliative. It should only be used to open the window up for the government to undertake the Structural Reforms that are appearing to be slowing down around the grove globe. We have been excited about china structural reform for a long time. Now that looks like it is not happening as fast. In japan, as well, there was a list of things to do. He hasnt done as many of those as we wouldve liked. Of course, in europe, as well. Structural reform is a huge word. It includes so many different things. One of the economies dominated st the service sector, almo 70 of the World Economy is services. If we can liberalize that sector we could get a huge impact. Anna thank you very much, you will stay with us to the program. The break you the nestle numbers. It was better than the estimate. Theyre giving us this threemonth sales picture. They are maintaining their 2016 outlook. Moved, mind that easter so some of these numbers might be better than last year as a result of the fact that easter fell in the First Quarter. People tend it a bit of chocolate then. Big issue. Is the pricing rises by 9 10 of 1 . To try to make their numbers, they have to be able to try to live to these prices. Anna they said organic revenue would be similar to last years forecast. Because, below the longterm target, because of the difficulty in increasing prices. That seems to be something they are to reiterate, if fullyear outlook by nestle. Manus up next, crew to discussions. We look ahead to the Oil Producers this weekend. And the chances of them striking a deal to freeze. Anna welcome back, this is countdown. 6 20 here in london. 1 20 here in hong kong. Per serving takeover of a canadian film distributor. Broadcaster ind talks of but possible deal with the firm which distributive distributed spotlight. Both companies declined to comment. The executive of noble group says commodities market remain difficult as he presses on with efforts to refinance the company. Chart aseeking to recovery in which their shares k. At sank shares san useking as closely to the evaluation said he did not see debt costs changing. We change the asset side of our balance sheet. The historically when we have things like sugar mills and crushing plant you needed longterm debt. Now it is most of our assets. As we forecast our financing go forward be actually think our weighted average cost is really not going to change. Named head ofa is equity cash sales. North of asia at of equity sales and the global head of equity toategy and chief started say that business is set to go. The restructuring involving the elimination of as many as 30 jobs in the equities division. All that according to those with knowledge of the matter. That is your Bloomberg Business flash. Anna i never thought i would hear you lending your International News gravitas to that. Oil has extended its losses as rising stockpiles continue to grow. Meetinges ahead of the this weekend. Ryan is here the analysis for us. How will the infantry inventory figures show up over the last 24 hours . How are they playing out into the talks that will happen . Ryan i imagine they can add some edge to the talks. Basically, the supply glut persists. Of 6 Million Barrels, that is a pretty significant rise. It is more than any of the analysts or economists be surveyed thought he would see a rise by. Understand the opec ministers that there is this a glut out there. In terms of inventory it will last for half a year or a year. Also have the production numbers out of the u. S. That would give a little bit of concern. We saw production fall by about 30,000 barrels, which symbolically took a below the 9 Million Barrels a day number. That is exciting. When the revolution began we were at about 5. 5 Million Barrels a day. The supply glut is considered to be about 2 Million Barrels a day. I suspect itll put them in an appropriately bad mood as they arrive. [laughter] manus as if they are all hugging each other when they get off the plane anyway. Not exactly the most loving group of people in the world. Marie, lets bring you into the conversation. The recession was ever created out of low oil prices. 40 a barrel, what do you make of what we are the moment . Marie it would be nice if we would end the year around this level. Prices is not good for the oil economy. It hasnt been stressed enough the benefits of these low oil prices. Those that produce oil are suffering. There are more people on the importing side of the oil leak vision and they benefited greatly. Unsatisfied with the growth rates we see today we should at least recognize it wouldve been even lower if we hadnt had this low oil price. Anna that needs to be shouted quite loudly. As we look ahead to sunday, we had a fascinating story the last 24 hours talking about, well comparing the proposed freeze levels with what is being pumped by opec at the moment. Theyrers, it seems already fairly convincingly below the freezing level without agreeing to be. Freeze,ey agreed to to they preliminarily agreed to it. That was back in february. That was at record highs. They are below that right now. Impact . This have any of economists,p and they said not really when it comes to supply. We realized it could have an impact on prices, particularly if they go there and have a big argument. Manus when you see groupings like this, at doha, what does it say to you as an economist . Itie i can only think about is stressing how the low oil prices is saving the World Economy. Athink it would have been great risk and balance of payments crisis in countries such as india and turkey if we hadnt had this low oil price. Thanks to the low oil price, their current accounts have improved markedly. Therefore, we have managed to avoid a balance payment crisis. Anna thank you very much. Were back with more details about what is going on in russia during programming. President putin taking center stage today. Up next, we will talk brexit. Manus a little bit of breaking vehicles ining japan to fix the back door. That is quite a bit of cars. Manus it is 6 30 here in london. It is lunch time in hong kong. Rishaad, good day. Rishaad Singapore Central Bank unexpectedly easing their monetary stats to what was last adopted during the 2008 Global Financial crisis. Themove to zero coming as Financial Hub feeling the effects of the global downturn and chinas weakening economy. New Zealand Central Bank saying a leak could surprise Interest Rate cuts next month. Works reportera sent information about the cut from the media lockup on march 10th before the release time. There is no evidence it had an impact on Financial Markets. Governor said the Financial Markets would of been in worse shape if the central bank and not adopted the negati ve Interest Rate. On thelicy could weigh countrys lenders. Our key challenges the negative Interest Rate could potentially have adverse effects on the profitability of the banking sector. The reason is that private banks with and upholding private assets. That could have a negative yield. Rishaad australias jobless rate unexpectedly fell to the lowest in 2. 5 years. That is compared to the economist thinking of a rising to 5. 9 . This is a notoriously volatile figure which the analysts really get right. The central bank is unlikely to ease polic