We are seeing the aussie stocks of a third of 1 , extending the gains we saw last week of five Straight Days of gains. The aussie dollar seeing a little bit of weakness. Lets take a look at how new zealand is faring. We are also looking at the opens in japan and korea. The nikkei 225 into the day on friday a third of 1 up. We could be seeing some modest gains. It is going to be a weaker yen today. 113. 81. Note trading in mumbai no trading in mumbai. It is all about china today. China has rejected fears of a hard landing as leaders outland outline their target in the latest fiveyear plan. Rule number one will be development. He acknowledges difficult times ahead. Haidi is in beijing for us. They still have this growth addiction. On the back burner. Development and growth our top priorities. He spoke to the nation and the world on saturday morning. 6. 5 or 7 out that growth target for 2016. 6. 5 is the baseline. A lot of economists saying it is far too high in order for china to be able to go through these supplyside reforms that have been promised. Pi, we expected it is going to be a tough ask to have the target. Money supply increase. That is interesting for beijings tolerance for more leverage. We also had them dropping the trade growth altogether. Last year, they miss the target. Policymakers in beijing to be able to predict and meet these growth target in light of the headwinds. The premier spoke about competitiveness when it comes to private enterprises. Lets take a listen to what he had to say fulls to what he had to say. We will relax restrictions on markets. We will remove the hidden barriers and encourage private companies to increase investment in these fields and participate in these reforms of state owned enterprises. Private companies will enjoy the same treatment afforded to state owned ones. Haidi as you can hear, not much in the way of details. He spoke in very generic terms. We have had reports of 6 million workers being laid off over the next three years alone, but that was not confirmed. We did not get any numbers at all. Ago, thehat 15 years last round of reforms, 28 million workers relate off. Were laid off. It seems like this wrongful be more gentle. What does chinas economy really need . Yvonne may not be as rapid as mr expect in. Policymakers have struck a resolute tone. Haidi chinese policymakers, they like to take any opportunity to rebuff these china bears, including george soros. We heard from the top economic planner. We are certainly able to run chinas economy within a reasonable range. We are fully confident about our prospects. I can say that chinas economy will never suffer a hard landing. Those predictions of a hard landing will surely fail. Haidi there you have it, the rhetoric is there will be no hard landing at any cost. Growth is the top priority. He spoke about what cost it comes that. There are concerns about chinas debt levels. Double theedging to debt ceiling. We could see debt to gdp surged to as much as 260 . Yvonne life in beijing, thank you so much live in beijing, thank you so much. He supports supplyside reforms. Lets talk to stephen engle, taking a closer look. Stephen he just went through it with haidi as well. China has relied on throwing fiscal spending on those railways and bridges. So muche built up overcapacity. They need to work that off. They need to have these supplyside reforms falls to otherwise, if they have this record deficit, there is going to be running the risk of higher debt problems. They will run right back into the same problems they had following the amount of stimulus in 2009. The are hearing is Central Bank Governor supports the states plan to overhaul state owned enterprises. A lot of vested interest against that. Lets see the quote from him. He was cornered in the legislative hallway yesterday afternoon in beijing. He said supplyside Structural Reforms will help fiscal policy to be more effective from a functional point of view. He is supporting supplyside reforms. It is a big venture when you are trying to really go for shortterm growth. Yvonne especially if you have a target of 6. 5 at least. When it comes to the composition of foreign reserves, we are seeing a little bit of transparency. Stephen which has been a big problem. Christine lagarde criticized chinese authorities for their lack of transparency. What they do in their policies and the shifting of policies the Deputy Governor of the pboc, he disclosed the sources of nondollar assets. We know about their dollar holdings. There fx reserves, which you can see halved when told of bit their fx reserves, which you can see have dwindled a little bit. One thing he did not do, he did not reveal the amount of those holdings. Yvonne not complete clarity there. We will get a little bit more on that later today. We have been talking exclusively weineredin ceo jeff about his experiences doing business in china. China is a very challenging market, highly competitive landscape. It has exceeded our expectations. Had amassed 4 million members in english over 10 years. We have seen that substantially grow by virtue of our core offering. Yvonne we will your more from jeff weiner on how linkedin is how linkedin is faring. That is coming up in 25 minutes. An iranian businessman is said to have been sentenced to death after being found guilty of fraud. A court found enough evidence to convict him and two other people of embezzling 2. 7 billion from National Iranian oil. They are ordered to repay a quarter of the money they laundered. Negative Interest Rates around the world may be working, according to the bank of international settlements. Few negative effects. But there may be a Tipping Point if rates go to low. Low. Too of china metals says their opportunities overseas. He is in touch with all the worlds leading miners in the Chinese Companies will continue to look for foreign assets. Metals has interest minmetals has interest abroad. Lets go to paul allen, live in sydney. A lot of publicity given to australias expensive housing market. The issue is over corporate loans. Paul that is right. They expect provisions to rise to 5. 3 billion by 28 teen. That would be the highest 2018. That would be the highest level in nine years. Bad debt charges have been climbing. Profit growth is expected to decline. Against this backdrop, the cost of insuring all of this debt is steadily rising. Despite all of these predictions, shares of all australias big four banks are rising in early trade. Australias financial learning ise are expanding its probe into the other big banks as well. Paul that is right. We brought you to the weve brought you the story on friday that the regulator was taking aims. This is over the bank swap bill rate. It accuses of attempting to manipulate over 44 separate days between 2010 and 2012. It is widening its probe to the other banks as well. Is investigating whether to bring a class action against anz. They deny any wrongdoing. Yvonne not the end of that issue. Coming up next, the target has been cut on warnings of a difficult auto ahead. Ahead. Icult these are the stories making headlines around the world. Korea and the u. S. Are starting their annual military exercises. They will run into the end of april. Says if fighting breaks out, it will be neither can find to the peninsula confined to the peninsula nor traditional. There were 51 people on board an emergency teams say 25 have been rescued so far. Linked to hong kong critical of china has been returned to the city. He went missing in october and has declined to provide any vehicles details about what happened. Another man returned to hong kong on friday. They have been investigated by chinese authorities. Yvonne Deutsche Bank chief economist is joining us live in the studio. A lot of headlines coming through. Was it just business as usual . This commitment to growth and addiction . An addiction . The target was 6. 5 . Thing that came out very strongly this weekend and the last few weeks has been an emphasis on two things. Innovation and overcapacity. The discussion with overcapacity is about shrinking the sector. They promised to take about 10 of capacity out of the steel and coal industries. We have seen discussions of five or 6 Million People losing their jobs. There is a concrete plan to shrink the us so we is. The soes. In order to keep growth of 6. 5 or seven, they will have to shift the source of growth more to the private sector. On friday, xi jinping met with representatives from the private sector and for the first time, we saw this strong discussion from the president of the need for the party to align itself with the private sector to to understand their concerns and to encourage growth. Yvonne this target range they have set, still quite ambitious. At what cost . You are talking about an enormous piling of debt. In the near term, what they promised is fiscal monetary stimulus. This is innovation, encouraging the private sectors where you have some hope that over time, it requires less fiscal monetary stimulus, to the extent you encourage and stimulate the growth of the private sector. A rebalancing the structure of the economy in a way that would give you more Sustainable Growth with less reliance on this fiscal stimulus. Yvonne you talked about cleaning up the zombie enterprises. They will address this proactively and politically. Prudently. Suggests they will be reasonably quick to do this. Some of the targets for taking steel, three years. This is reasonably aggressive. After five or six years of talking about it and not doing very much. There is a balance in the government between people who want to act quickly and people who are more concerned about the social stability. The intention is to move swiftly. Yvonne we are expecting quite a slew of data coming from china this week. Drop in theting a reserves, i guess. We are seeing that rrr cut last week. Truthfully, yes. Reservestations, the will decline. There has been hopeful talk that reserves could be higher and i am not sure where that comes from. The rrr cut is a response to the last couple of months. They need to stabilize the narrow money in china. The Balance Sheet is growing very great. Ace money is shrinking in china. Base money is drinking in china is shrinking in china. Yvonne thank you so much. Yvonne welcome back. The man behind the most expensive piece of lingerie in the world says the diamond industry is under as much press pressure as any other business. Berraated a gem studded for victorias secret. The diamond and jewelry industry goes through a lot of different cycles and it is very much impacted by the economy. Time we arerst going through a global slowdown where there is not one Market Driving it. How has a chinas slowdown affected the industry . A lot more volume is happening at the lower point price points. Where peoplen is are having more difficulties. How much of my holding right now . You are holding 13 million in your hand. But what is the difference between a good longterm investment and one that is not so much . You want to go for the rarest possible jams gems. Nature produces a lot of diamonds, but very few are actually pure. Although this one is smaller, there is a tent of yellow tint of yellow. Go for the 50y caret. To middleyou cater eastern royalty. The marketsalize are changing. People will come back to different Asset Classes. This is one of the best Asset Classes you can invest in. Small, portable, very high value. You make these fantasy bras for victorias secret. Who buys one . A collectors of item. Them. P on this storyre and all the days top headlines 247 atebsite bloomberg. Com asia. The asx 200 looking like this right now. It is up 1 . Extending the gains we saw last week. The aussie dollar has seen some weakness today. Lets take look at new zealand. Coming up, going negative may be good. Why some say the decision to take rates below zero could work. Yvonne we are 30 minutes away from the open of trading in seoul. Youre watching first up. Has rejected fears of a hard landing as leaders outline their targets in the latest fiveyear plan. Unfoundedrns are because beijing still has the tools to maintain reasonable growth. Least 6. 5 growth this year, the slowest pace in a quarter of a century. Chinas Central Bank Governor has voiced his support for the governments plan to overhaul state owned enterprises. It will help fiscal policy be more effective. He said the pbocs monetary policies will also provide room to tackle issues such as overcapacity. Arerong his big four banks facing a rising risk of souring loans. Bad debt provisions are rising to their highest in eight years by 2018. Investors are nervous after slow Profit Growth at three of the nations four largest lenders. Lenders. T this is Bloomberg News. U. S. Stocks ended the best threeweek stretch since 2014 and middle eastern stocks are reaching new highs. The latest on the markets. Shery that positive sentiment in the u. S. Due to that surge in hiring, positive data from manufacturing to construction spending. 7 s p 500 gained more than in the past three weeks. Lets see how that is filtering through into asia. The asx 200 rising more than 1 . New zealand slightly higher. Data ina, february jobs about an hour. The aussie dollar is falling right now after searching surging every single day last week. Surprise, surprise, what is leading the gains in australia . Energy producers just leading the gains. All gaining more than 3 at the moment. Take a look at what oil is doing. Crude crude at 36. 40. It settled at the highest level in two months. Dhabi just entering a bull market. Yvonne thank you. Fears over aected hard landing as leaders outline their targets in the latest fiveyear plan. Rule number one will be development as china aims for at least 6. 5 growth. Joining us now is our economic correspondent. What was the main take away . Go for growth. A hint to the old playbook on display. The feeling is to make sure they hit that target rather than push through painful reforms. To do so, they will use more debt. One of their recurring debates, you have to deal with your debt problem. It looks like that is what they are doing. It is a bit of the old playbook. Yvonne business as usual. What does this mean for growth . Still pretty hard to achieve for china. Fort is a pretty high level any standard. Even if they end the year hitting their 6. 5 target. They still talk that would put millions of people out of jobs, according to some estimates. Compensatingalance that with keeping growth on track . That will be the biggest challenge for the year. Yvonne do you think they will deliver on these plans . I think they will deliver on growth. They will make sure the economy takes over. Whether they can deliver on innovation, it remains to be seen. Yvonne thank you so much. Shanghais most senior Officials Say the citys Property Market is overheated. Residential home prices in chinas top tiered that is have fallen. Shareholders have voted to continue to back the chairman. The family controlled retail conglomerate held after an internal dispute. Newas proposing to form a board of directors giving him the role of ceo. Xiaomi says they have no plans to go public. The company was value. Warty 5 billion in 2014 was valued at 45 billion in 2014. The ipo is not on the agenda for the time being. Sales fell short last year, but they plan to introduce a highend advice. Breakingen a record zor zoor utopia four topia. That with a look at some of the stories making headlines. Rates negative interest at Central Banks good policy. The socalled Central Bank Says it is not clear how long this will be affect the. There has been a lot of criticism from banks and others in the financial industry that the negative rates are negatively impacting money markets, impacting cash. Concern the ecb, the boj policy and some of the policies out elsewhere switzerland has the lowest rate, 75 basis points. We did also has a low rate. There is a new study which validates these rates because they say the current negative rate policies are working. What does this mean . They say banks seek to avoid negative rate by extending maturities are lending to counterparties. Going forward, there are some key uncertainties about how long this can last and the impact on banks. Zero has not proven to be the technically binding lower limit. Rates can go how low can they go . Yvonne this study is pretty timely as we see the ecb meeting this week. The bojing is meeting next week. They need to be vigilant about the prolonged impact of these rates. There is uncertainty as to the and when the market there might be a quote Tipping Point. As you go into negative rate territory, be aware because these negative rate has had a profound impact on Financial Market this year. Linkedin off to a bad start this year. Jeff weiner spoke exclusively with emily chang. Was a surprise, we were not expecting that kind of response. When you look at the core elements of our business, they remain healthy. If you look at north american sales, samestore sales growth has remained consistent. Still theupdates Fastest Growing business we have. Post the launch of our reimagined flagship application on mobile, we have seen an acceleration of engagement is on mobile and death fault on mobile and desktop. Companies who in the history of every hypergrowth company, there comes an Inflection Point where the expectations analysts or investors start to outstrip the fundamentals of the business. The question is how companies execute from that. Emily they thought you were a fast growth company. Instead, you are a Slower Growth company. Jeff i think it is all relative. It is still Pretty Healthy growth. Emily you gave a rousing speech to an employees and you said linkedin is the same company, you are the same team, i am missing ceo i am the same ceo. Doesnt staying a little bit does it staying a little bit . Sting a little bit . Are we still able to create value for customers . You want to make sure our employees are ok. There is a number of us that have worked at companies that have gone through similar periods. The most valuable companies in the world have gone through similar corrections. They never lose sight on their longterm sense of purpose or vision or mission. It is about continuing to execute. Linkedin is a