prevails. And when push comes to shove people realize there would be an enormous damage, to both europe and Great Britain, should britain walk away. A warm welcome to countdown. I am an edward. Just past 6 00 in london. Manus will be joining us from dubai. Let us talk about what is happening in oil and stocks, a chart next to me that really encapsulates the relationship between these two asset classes, if you go back to the middle of last year. They have moved very much in synchrony. And of the oil price tending to move in lockstep, or least in the same step. Oil prices over 50 a barrel or the first time in six months. A oneweeks hitting high. But i should say that old has actually snapped its sixday losing streak. Not all good in the overnight trading environment. Lets talk about the risk radar. We have to feature the price of oil because we have gone on the brent price over 60, up high 7 10 of a percent. Theda, venezuela, nigeria disruption playing in here, as well as the drop we saw on those government figures in the United States. The u. S. Do year yield in here can see at the bottom of your screen there. That yield has fallen away a little bit in just the last 24 hours or so. Pausing seems to be one of the things going on in terms of the market. The work function on the bloomberg reading 53. 8 of a chance of a rate hike by july, factoring into the markets. Commentary from parker at the fed, as well. You have the best gain since january as these conversations continue to dominate markets around what the fed will do in june or july. Let us to the bloomberg first word news. Trillion Hedge Fund Industry may lose about a quarter of assets next year, that is according to tony, blackstones billionaire president. He is saying that they face a day of reckoning, and that will be pretty painful for awful lot of places. Alibaba shares fall after the ecommerce giant says it is being investigated by the sec accounting practices. Looking at data reported from the single day promotion. The biggest shopping day. And consolidating results from an affiliated company. Alibaba declined to cal comment. Henry clintons use of a private Hillary Clintons of a handingemail server, republicans an additional line of attack against the president ial frontrunner as the Campaign Election gets underway. Richard branson says he would be devastated if britain votes to leave the eu. Speaking exclusively to bloomberg, the billionaire founder of virgin groups in a brexit would be in normas began enormously dangerous. Devastatedwould be if we had to pull out of europe. I hope that sense prevails. And, you know, when push comes to shove, people realize that it would be enormously damaging, i think both to europe and Great Britain, should britain walk away. Businesses have warned of economic damage to protests continue. Strikes at the refineries and railroads will intensify today, at the government refused to back down on a labor law. The eight refineries all on strike, calling for elliptical workers to walk off the job today, and putting 19 nuclear plants. Meanwhile, the National Railroad is entering the eighth week of protest. , the 200 meters river, severed a round the area. People asked to leave their home. Break is not because of it falling away. Global news 24 hours a day. Powered by our 2400 journalists around than 150 bureaus the world. You can find more stories on the bloomberg at top. Back to you. Anna selina wang there. Thank you. Julia sally has details for us. More to gain coming through the asian session. Good morning to you. Yes, we have a pretty good session coming through in japan. Which is lifting the eac regional index. Nikkei 225 up to the gains from wednesday. That is on a rebound by the yen. Just to show you the best performer on the nikkei, by 6 . This is after it went to 174 million, relating to the fuel testing scandal. Investors seem appeased they are getting clarity on what this will cost the company. In shanghai, the market is down by 1 . That is actually a threemonth low. Reallyseeing crude price weigh on transportation companies, coming under pressure sending that market lower, hang seng coming after lunch break down one third of 1 . You can see the strong performer, up 2. 5 . That is of course as we saw brent hit 50 a barrel for the First Time Since november. Australia looking pretty good, up high one quarter of 1 . New zealand came through with a budget today, its stock index is up by 6 10 of 1 . We have seen the key we fall against the dollar, one third of 1 . You can see the regional index, weakness coming through from telcos, consumer, and tech stocks. The gas sector really supporting the overall half a percent gain as we see the crude price supporting. A lot of the Energy Players in the region also doing a lot of the heavy lifting today. You can see australia, looking very good. Kong,entioned in hong also very strong. And just quickly, mentioning the weakness in the kiwi. But i also want to show you the malaysian ringgit. It has sent emergingmarket currency higher. Ringgit the best performer in the region, up today. Anna . Julia sally in hong kong. Let us bring you uptodate with what is happening over in japan. Support,ing toccata seeking to take control. This is according to the nikkei. Be aware this is taking place. The daily , keeping limit. This is just in the last couple of minutes or so. The airbag crisis for a period of time, seeing forcefully rupturing and and metal parts at drivers and passengers. At least 30 deaths in the u. S. And malaysia have been linked. Automaker is led by honda, recalling at least 60 million airbags globally. So this is a real global story. As we were saying, the share jumping 24 on the nikkei report that the private equity group kkr could be offering support, seeking to take control. We will keep monitoring the story very clearly moving the market. Top of the agenda as g7 leaders top the summit today. Yvonne man joins us. Talk us through what is happening today. There is a host of global topics to discuss. That is right, anna. And those talks just started, underway after a brief session from the g7 leaders. This is the first time in eight years we have seen the g7 summit here in asia. It has been the perfect platform for the Prime Minister abe to deliver messages of growth. Coming off the minutes between the g7 finance chiefs, for there was not much incense is how to come up with this global response. Thearticular, japanese and economy, how they will come into the aid of the recovery. We did not get much love. There was friction between japan and the u. S. When it came to affect policy. Jack lew, the u. S. Treasury secretary, said the recent moves in the yen were not overly disorderly, not all that volatile. Hasjapanese saying the yen a one side that is speculative. This discussion of intervention still remains to be seen and answered. On the flipside, you have a likes of the u. K. As well as germany not in favor of extra deficit spending. So how is japan going to bridge viewsap of competing . Here is what chair abe had to say. Determined to work closely with the United States, in addressing various challenges of the international community, based on our robust alliance, namely the alliance of hope between japan and the United States. I know that china is on the agenda. Even though no chinese delegates were invited of course, at least the leadership are not there. But that does stop them from talking about chinese growth and the steel situation there. Yvonne yeah, as well as the weakening yen, and the tensions mounting on the south chyna t. Una sea. That is an interesting dynamic we do see, does raise the question of the relevance of g7. And you do not have a country such as china, the second largest economy in the world, joining the discussion. You can actually throw in india as well for that matter, not in the g7. Thewe did hear a lot of south china sea. We have seen china flex military muscles even more. Just last week, washington talk about these two Chinese Military jets that carried out this unsafe intercept, through u. S. Military aircraft. And president obama urging that a peaceful resolution be made here. And the tensions between china and the vietnam, between china and philippines are not of our making he is pushing blame here and saying china is within the power to was all issues. When it comes as some kind of maritime agreement, the question is, are we going to see some kind of consensus here . We see the u. S. And japan relatively on the same page when it comes to those Maritime Security issues. But europe is another story. They may not be on board, given the strong economic ties with china. There are complex relationships there. But they are deepening. Anna yvonne, thank you very much. Tabs on theeeping g7. Chris watling, ceo and chief Market Strategist at longview joins us now. Thanks for coming in. Really fascinating conversation. Gompted by the g7 and other events. This time, a story we have in a bloomberg about how Angela Merkel has fewer pro austerity allies this time around, Justin Trudeau looking, as they say spending on investment for structure and the like. Where are we about how much global austerity should be the theme . How much government should be doing more spending to help Central Banks chris i think we are shifting. Clearly, the consensus three years ago was all austerity. We are now moving. The debate is changing. The feeling is not enough Global Demand in the world. And governments need to do something, terry policy is running out of bullets. Fiscal is the last alternative. Having said that, i dont think it is hard to see a consensus for fiscal stimulus. We did not get me from finance ministers or the Central Bank Government on consensus across the board. And really, germany is not going to take the bulk america is not in the right place. It is not going to take other things. Anna does it do the Global Economy any favors if we are all on the same page in the conversation anyway . I know the u. K. Delegation is going, making noises around Everybody Needs to have their own path on this. We dont need to be on the same page. Chris that is right. It obviously helps in Global Leaders are all pushing in the same direction. It helps deal with global problems. So if you think more fiscal policy is the answer, there are certainly a lot of people that do, that would be helpful. But no, clearly i think we would be very surprised if we had that. Anna are we running out of room in terms of Monetary Policy . Looking at ecb officials yesterday at a conference in madrid, talking about the need for structural change. Coming on and tell me there is been quite a lot of structural change coming on. For morestill a clamor structural change from the ecb. They see themselves as caring too much. Chris Monetary Policy has carried too much of a candle. We certainly need more reform. More dramatic reform, there is really too much debt in the world, too many zombie companies. Cheap money does not help. While you do Structural Reforms on the surface, i dont think Monetary Policy has reached the end of the line. There is more they can always do. I dont know if it is the best thing to do now. We need structural reform in a much more dramatic way. Anna i have a chart here talking about Global Equities rallying with global prices, we have gone over 50 for the first time in six months on a barrel of brent crude comedy you see that as sustainable . Chris i think oil will be raised now, between the high 20s and 55. Really stand back and think about oil, it is been in a boom and bubble for 10 years. And the other side of that is not nearly back to where you were before. You have to unwind still excessive applied. Anna we have the government warning a specific about 100 oil again. Chris watling, ceo and chief Market Strategist at longview, staying on the program longer. Here are highlights for your david at 9 30 u. K. Time, we get spurs quarter gdp data for the economy. And James Bullard delivers a presentation to the official Monetary Institution for him and singapore. That is at 10 past 11 00 u. K. Time. And we get u. S. Durable good nor numbers, suggesting they will be more interesting than normal giving the strength of the data coming out of the u. S. Right now. And half an hour later, we will get russia updating us on the gold and foreign exchange. Of next on the program, the recipe for a rate hike, as said president kaplan says the u. S. Job market and job growth are rising ingredient for the move. More on that. Anna welcome back. If you are watching countdown. Live from london, 6 19. 7 19 in frankfurt and paris. Here is selina wang. Takata surges in tokyo trading, at the nikkei newspaper reports that private equity firms may take control of the company. Earlier, they said they would retain investment in the firm. A spokeswoman for the embattled airbag maker said she cannot comment immediately. At t as made a bid for yahoo , intending to acquire the company for internet business. That is according to people familiar with the matter. It had previously been thought that the Telecom Giant had decided against making an offer. At ts fell 5 yesterday, was little changed. Profit recently lower estimates, the studio behind the hunger games so a 22 jump, as revenue disappoints and the box office. Orange is a new blacks and the acquisition of pilgrim studios also help with the result. However, lions gate took a hate from the poorly received divergent film and the gods of egypt. A billionaire said he is considering buying nonperforming loans in china. Speaking to bloomberg tv, he said there could be an opportunity in beijing followthrough with plans to sell the loans as assetbacked securities. Im getting really interested in china in terms of distressed loans. The government has announced they are trying to develop a program to securitize the distressed loans there. If they do that with transparency and with reasonable pricing, that would be a very banks,lp for the chinese and it will create an opportunity for people like ourselves. Investorhe billionaire and facebook board member peter feels secretly helped bankroll the defamation tsas against gawker media. He told the New York Times he made a financial contributing to the suit brought by hulk hogan. A tape showing him having sex with a friends wife. The publication inflicted emotional harm. That is your Bloomberg Business flash. Joining usa wang there with a Bloomberg Business flash. Let us get to the macro picture from the fed. Dallas fed resident Robert Kaplan said the u. S. Economy is moving to full i employment. Speaking in houston, he push the case for not raising rates. We should try to normalize as fast as we can. But the Secular Forces mean i think it will be slow, and gradual over a period of time. That is what i will be likely advocating. So that is what i think you will see happen over the next short period of time. Anna chris watling, ceo and chief Market Strategist at longview is still with us. Of thewhat do you make comments you have been getting from the fed recently . You would have to be under a rock really, in a market sense, to not have heard the fairly hawkish message coming through. Chris i think it is pretty clear they want to move rates up. It is understandable, given some of the data they have seen. Payroll, wage inflation, labor costs are rising a bit and so on. Had some good housing data earlier this week. I think it is pretty clear message, across the board i would say. And we have not really heard it from janet yellen, we heard from dudley, normally about as dovish as she is. Exactly, perhaps that will be the final tick in the box. The markets clearly heard. Anna i have a great chart here that looks at the other side of things, talking a lot about the chance of a rate hike and that takeat 32 or so actually the work function on the bloomberg. Sorry, 53. 8 for july is a number i was thinking of. This chart is actually the chart of fed easing this year. And the chances we see that plummet, eurozone options do not see a rate cut this year. And the chances drop below 5 . Position you how far we have come, the chance of that happening was a 35 in december. You know, a short memory, which can happen in this business. You forget how far we have come. Chris that is right. But i was certainly the labor market, plenty of panted when we thought the world was falling apart for the u. S. In recession. The markets do change dramatically since then. And i would not be surprised if we actually got back there later this year. Because i think the market is horrible to get back some of the gains later this year. Yeah, i mean we priced it out the Economic Data seemed a little bit steady. We had a bit more confidence. Anna when we hear people like Patrick Parker talking about how he sees two, maybe three hik you do not go along with thate chris it is built to much on cheap money. The more you take it away, the more it comes under pressure. To put in two or three, i would be very surprised if you got three. Absolutely. Anna talking about the fed taking it away. But other Central Banks not so much. The bank of japan, ecb still doing quantitative easing and other programs. Do you see them both on hold . Chris no, i think the bank of japan was to do something else. I expect something in the next oftings, one of the next two the several weeks. The question is, what they do. I will not be sure they go more negative, something more creative. But if you look at the japanese data, some of it is quite troubling. I think some of the looks really