Pointing to a higher open, also the japanese yen, slightly strengthening after falling the most in 17 months. A couple of markets are closed, australia and new zealand. No markets open there. The yen did drop the most in 17 months after the bank of japan is considering sending relief to its banks. Mayces say the bank consider offering a negative rate on some loans. We are taking a look at this. The yen took a tumble. I was watching the market close on friday, bankshares surging on this news. Sign, the yenme reaction, what the boj has been hoping for after currency strength, up 7 . Last week, the currency dropped to 2. 7 against the dollar, a there where the dollar strengthened significantly against the yen on that news. The euroyen fell 1. 6 for the week. Helpoj may be trying to the nations lenders after irmsit demand from all f have seen demand drop. And is a stimulus measure possibly help in a little way. Could be inion conjunction alongside further negative rates on reserves already. That will be interesting as we head into the boj this week. What is going to happen to the yen. . For the time being, the currency weakens. In the mediumterm, i dont think the boj will have yensulty taming the rise. Yen can believe the certify this because of the fiscal situation in japan. Most analysts dont expect too much strength when it comes to the yen heading into this meeting. I want to show you a chart that shows how bearish the sentiment is right now when it comes to the japanese currency. Options actually rose to an alltime high on friday. Many economists saying something must come out of the boj this week, but volatility skewed here, steepening shortly sharply in favor of the yen put options over calls. That itlso anticipation will expand its Purchase Program and by some etfs . The slim majority we see where we are expecting some stimulus measures out of the boj, the earthquakes hitting and april. So the economy is ripe for some easing. Of 41 analysts expecting something, and out of those, 19 say they may be buying more etfs, eight saying by more bonds, and others saying to expect another cut on negative rates this thursday. Angie lets continue this conversation on japan. The boj is quietly intervening in the japanese share market, becoming a top 10 holder. In continuation to what you are saying, most economists expecting the boj to buy etfs. Under the stimulus plan, they are buying ¥3 trillion, more than 27 billion dollars, of etfs every year, so not disclosing the details, but you can do the calculations on bank records and company records. Ranks as athe boj top 10 holder in more than 200 of the nikkei 225 companies. The central bank effectively , 5 of9 of retailing shareholder. Fifth our now that the boj will accelerate the pace of purchases of etfs. Goldman sachs saying that if you trillion arate, ¥7 year, then the central bank could become the number one shareholder in 40 of the nikkei 225 companies. Sayou do more than that, ¥13 trillion the year, then the boj will hold the top ranking of 90 firms. Angie there is some danger to this. There is some danger. Lets go through the positives. The proponents are saying it will boost investor confidence. This is at a time when the nikkei 225 is down 5 this year. Waning, confidence is so this will give shares of boost. For those people investing and want to see the stocks rise, this is fantastic. Problem iso, the affecting the sanity of the stock market. They are saying that the impact on the japanese bond market by purges by the boj could distort valuations and undermine efforts to improve corporate governance. If you take a look at what corroded says, his defense is that the purchases are tiny compared to the size of the japanese economy, but the fact is that they are using these large etfs, and what that means is that they have a bigger impact on concentrated companies, not so much those companies outside the indices, but for example fast retailing. , more than 11 c of that company. Angie most people do expect some type of etf buying. The majority thought this could be happening as the boj meets this week. People are weighing in on negative rates. How effective is is going to be . Some people say not effective, because youre not solving the underlying issue when it comes to the nation lenders, which is loan demand. Is a consternation no doubt to japanese and Global Investors alike. Thank you so much. Lets check other headlines. Will complete the expansion of its oil field by the end of may to maintain total Production Capacity output, rising to one Million Barrels a day. Saudi palms 10. 2 Million Barrels a day last month, and can go to 12. 5 million with in six months, if it chooses to. Riyadh says it will continue to invest in Oil Production despite the supply glut. Hong kongs stock market is free reintroducing a closing option. Hong kong exchanges and clearing says the new system will the details. The previous system was scrapped in 2009. Emd had its biggest jump in more than 35 years after announcing a deal in china. Soaring 52 on friday, the sincet increase in amd 1990. Get 290 3 million to license technology to a statebacked venture and produce chips exclusively for the domestic market. It will be overseen by the Chinese Academy of sciences. The latest and greatest in beijing this week, but overshadowed by the emissions cheating scandals that have affected volkswagen and mitsubishi. Lets start with the testing scandals. What are people in beijing saying about it . Good morning. Over the weekend, we had a slew of preshow product launches, infinity, ford. Last night, mercedesbenz as well. Overshadowing all that are the in emissions scandals. The Industry Needs to be more transparent about its process for field testing and emissions. Mercedesbenzer was asked to check over its processes in the u. S. Peugeot has had its offices raided. Minutes of the she said it was mitsubishi says it has been manipulating. It is overshadowing the show to some degree. ,here had been talk about suvs luxury vehicles, electric vehicles, but the regulatory consequences in focus. I spoke to the ceo of ford and ask them what this change in regulatory temperature and oversight i the authorities, what kind of impact that was having on the industry. Listen to what mark fields had to say. Look at emissions, we meet all applicable emissions requirements. We do not employ socalled defeat devices. Our approach is that we meet the letter of the law. In china, the rulemaking that is being proposed right now is probably the most strict over the next five years in terms of reductions in the world. Whatever that is, we will work to meet that. Mark fields, ceo of ford, speaking to me over the weekend. Increasinglyn tough Regulatory Environment in china, a country suffering chronic pollution problems. Ford stickssaying by the letter of law in every operates. On where it he says he is completely confident in ford and its processes there. Angie pollution no doubt of focus. What other issues have been getting play in the lead up to the show . We have been talking about suvs, a lot of international and local Companies Launching suvs to take advantage of a growth in demand in china, up 50 in 2015, the demand for suvs. Despite high import taxes for foreign brands, continue to be in demand. Of course, electric vehicles, a lot of chinese players getting in on the action. A Chinese Tech Company launching a concept car. Infinity has launched a concept suv as well. Mercedesbenz launched a new stretched version specifically for the chinese customer. The suv market was very strong last year, but compared to former years, last year was softer. In the First Quarter, sales for , so iere up 14 this year asked the ford ceo how he felt about growth in china. This is what mark fields had to say about that. We have not been surprised that the market hells out market held up. Addition to the full year if x we are getting from our new products, we introduced the effects, last year the industry came in at 23 Million Units. 23. 5 to 25 Million Units. In our estimates, the First Quarter was up 8 or 9 , so off to a good start in china. Fields relatively bullish about the prospects for ford later this year. Introduced the f 150 raptor for the first time to china, which they hope will play into demand for bigger vehicles in china. Back to you. Angie the beloved suv also and china. Thank you for that. Coming up next, centralbank actions remain under scrutiny with three rate decisions in the pipeline. Our next guest is not expect much. Hear from the Deutsche Bank chief economist after this very short break. Stay with us. You are watching first up. Take a look at the big events we are following this week. Back iny, mitsubishi the spotlight when it reports earnings, the company embroiled in a few efficiency scandal, losing more than 40 of its value. The report will not reflect last weeks drama. On the agenda wednesday when the doors open to the public at the beijing auto show, the biggest in asia, and Tom Mackenzie is there. It takes place in the biggest car market in the world. Comesears extravaganza amid the slow down as manufactures are desperate to retain market share. We say me more action from boj policymakers this week, a majority of economists expect the bank to add stimulus. The decision on thursday. Also, sony releases its full years earnings report. Last year, preliminary profit by 274t missed estimates Million Dollars, and expects revenue to fall only 2 on the year. Lets take a look at the week in more detail with michael spencer, Deutsche Bank chief economist and head of asiapacific research. Your team no doubt getting ready for a very busy week. , all meeting. What you think will prepare markets the most . I think the boj. The market is expecting them to ease. Our expectations are they do little. Angie despite the pressure . Energy Price Inflation is still a major drag on headline inflation. They cannot get people to look at core inflation rates, which are substantially higher. Secondly, the market is convinced that the only way qe works is through the exchange rates. They look at japan, where the currency is moving in the wrong direction. If you take a broader perspective of how Monetary Policy works, you would say that the move to negative rates in january has been impactful, a significant decline in bond yields, government bonds, corporate bonds. You have seen an easing of banks lend, so its reasonable to say that the policy has had a big impact, signs that that is maybe turning into a higher credit growth, so we need to give it more time. If they feel compelled to do something, the market is so strongly position for them to do something, they might have to. If they dont, that would be a major surprise. From the boj will be that policy is working and we need to give it more time. Goldman sachs and hsbc expect asset Purchase Program to expand, buying etfs. Goldman sachs and it could double to ¥7 trillion. It is certainly possible. At this point, they are perhaps fishing around for what can we do. The easiest thing to do is buy more government bonds. I think there is not a lot of impact from buying etfs. If they continue to follow the ecbs playbook, then theyre looking at corporate bonds. The fed. Ts talk about when you expect them to raise rates . December. Angie like everybody else . The fed the problem for is that inflation is at a level where they feel they should be raising rates, but we are clearly going through a soft patch. Growth is slightly positive in q1, so that rules out this week, and nobody is expecting it. Into q3bly takes us before the fed will feel that they have enough evidence of the economy pulling out of this soft patch before they can raise rates. There is no expectation of the fed doing anything, and of course they have been dovish surprisingly and placating the market here, how important will the lang which be . Will the language be. . The market is expecting no hike. Theyre not expecting a hawkish statement at all. Expecting there fed to argue that inflation is creeping up, the labor market continues to adjust in a favorable direction, 200,000 jobs a month, but temporarily, growth is weak. Weak, all these inflation targets of 2 , 3 , that has been a pipe dream. Nz, bill english is trying to increase oversight because the frustration they are nowhere close to their inflation growth. The centralem for banks is Energy Prices are so important and driving headline inflation rates down. If you look at core, you have a number of Central Banks that if they could people to look convince people to look at core inflation saudi arabia needs to talk to Central Banks. On the supply side, oil prices are starting to creep up. I know we have said this before, but you run this 40 year, the inflation picture will be very different in a years time. Thank you for that. , find out how the philippines president ial hopefuls plan to decongestant capital, where the cost of gridlock is 64 main dollars a day. 64 million a day. That is quite a jam there. Angie welcome back, you are watching first up. Candidates in the philippines have had their third and final televised debate, focusing on manila is a crowded traffic. Lets go to the Southeast Asia correspondent has linda. Tell us some ideas on that. Haslinda several proposals came up during the debate yesterday, including building a new capital altogether to replacement a la. That was suggested by replace manila. That was suggested by the woman who has trailed in all of the ratings. People said hand, they would complete current projects while another candidate said he will ban all vehicles from main streets on top of buildings elevated train lines. Promises, which are difficult to fulfill. Traffic is set to get even worse in manila. A growing manila middleclass fuels a car boom. There is a possibility it could come to a standstill, prompting geddon amongme locals. The hurry this traffic is causing 64 million horrendous traffic, 1 of gdp. Angie that is what happens when the workforce is stuck in traffic. Is just one of the issues in the debates. How does that stick in the election . Haslinda a lot is at stake. It is among the Fastest Growing in the world. Since the has doubled president took office in 2010. It has jumped from investment grade. Whether or not momentum continues depends on the next president. One candidate says what else he hopes to achieve. I can assure you that it will government, and you will have peaceful country and of course, i said, drugs come at which is my main thing, i hope to suppress them to the end. 9 30 in sydney. Markets are closed to honor anzac day. This was extended as a national day of remembrance for veterans. You are watching first up. Top stories, the bank of japan nikkeiareholder in the 225. Estimates compiled by bloomberg say it is a major owner of more of japanese fortunes in the Worlds Largest money manager, black log three at situation will keep on growing. Predictions the boj could have etf fines as early as next week. It is considering a negative rate on adoptive loans. This could be positive for the economy, but raises questions about the banks position to offer subsidies to commercial lenders. Financial institutions already feel penalized by the existing negative rates, they could face demands from borrowers to cut lending margins further. The boj meets on wednesday. Fuel efficiency scandal and Mitsubishi Motors is in the headlines again. The company used a test of that does not comply with standards on 27 models that would amount to 2 million vehicles. It to be she motors admits data,lating consumption but said it only covers 600,000 cars in japan. The s p as putting the longterm Credit Rating on negative watch. Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. Australiaith asia and and new zealand are closed for anzac. Here is haidi. Quietert is a little with the absence of australia and new zealand. Day forcommemorate the anzac. This is how we closed on friday. Indexiapacific really retreating, still, a Third Straight weekly gain for the regional index. Some late we saw stages surging in the nikkei 225 of why 1. 2 . Up by 1. 2 . Japanese lenders have been badly hit and will continue going down by the negative rates program. ,nd chinese shares reversing ending in the green. We had the biggest weekly loss in shanghai analyst for months down 4 . Dimming expectations similar from the pboc and the government. And the region, a feature of negativity as we ended out the week. We really didnt have tech earnings weighing on the u. S. Stocks as well. Futures in this part of the world are pointing to slightly positive when it comes to japan and hong kong. However, possibly they both, when it comes to shanghai. It is a huge week for Central Banks. We have the fed and then the bank of japan, which is acting in response to what the fed does. Of course, the fed is not expect it to move on the Interest Rate hike. The possibility is at zero at the moment. Japan is expected to add some form of stimulus whether it is buying into etf or expansion of the current stimulus program. At ties Industrial Production numbers coming out midweek. They had a big uptake when it comes in february, so we will see if that extends into march as well. We have ppi coming through from australia. That will give us the commodity story. The bank of japan will be talking today. To look at the brokerage families, the finish on the news they will be paid to borrow from the bank of japan. Alleviating some of the volatility when it comes to the impact of negative rates. Mitsubishi was up 7 , but certainly brokerages eating an eye on those today. Seeing if they can extend on the back of the bloomberg report that the boj will be extending the negative rates on some of these loans. Angie. Angie thanks. Mizuo will try to be popular. 60 ceo says they are adding Staff Members in the co