New fears of a bubble. Haidi beijing and washington prepare for top level talks over tensions and trade in north korea. Rishaad the secretary of the state turning up the heat on pyongyang, saying the gears of patients are over. Lets look at the markets, no trading in tokyo. , some data coming through, reaction to house price numbers out of china. Also the followthrough on this trip by secretary of state Rex Tillerson. That a lot to impact from tillerson visit. , currencies seems to be off the agenda and that g20 communicate. Forwonder what that means that fear of a currency war between the u. S. And china. We are 30 minutes away from the we are 30 minutes away from the open end the mainland and in hong kong. Sophie we do have new zealand stocks leading the drop, voice for the biggest fall since november, down 1. 2 . Aussie shares are snapping a four day advance. The yeartodate rally is a repricing for an oldschool economic recovery led by shipments to the u. S. Take a look at currencies, the dollar did reach a year to date low. The singaporean dollar appreciating against the greenback. Baht extending last weeks rally as foreign funds pile into thai bonds and stocks. Week, there were stronger inflows into korean assets. Is strategist says the won shrugging off geopolitical concerns and domestic politics to make it the regions best performer year to date. Below 50 a barrel, take a look at this. We are seeing an exodus of oil price optimism on this chart. You can see how net long positions for wti have tumbled. That is the line in white on this chart. Of a furthers price drop have doubled and they managers head for exit. This is on top of growing concerns are brown u. S. Inventories. The opec minister is looking at extending cuts, but russia said it was too early to discuss an extension. We will find out if they agree to disagree later this month at the upcoming opec compliance meeting. Rishaad thank you for that. Lets get to first word News Headlines and joined paul allen. One of south koreas most powerful corporate families will be together for the first time in years later on. The trial of the lotte chairman, his father, and two of his siblings begins in seoul. They face embezzlement and fiduciary breaches amounting to 250 million. Rare asamily reunion is the two sons are battling for control. The latest opinion poll in france puts independent Emmanuel Macron in equal place ahead of next month. Percent support, the same as Marine Le Pen. Haservative Francois Fillon 17 , with the left wing candidates on 12 . Is seen beating Marine Le Pen in the second round. Japan and russia are said to have agreed to begin direct flights to disputed islands to allow former japanese residents the chance to visit. Kyoto news says the two sides have discussed proposals for joint development of four islands. The proposals are said to include health care, fishing, and tourism. Prices rose in february and more cities despite increased restrictions on property transactions. Prices of new homes rose and 56 out of 70 cities tracked by the government, compared with 45 in january. On friday, beijing raised down payment requirements for second homes 10 points to between 60 and 80 . Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Rishaad the Trump Administration made its mark on the g 20 finance ministers meeting in germany despite coming illprepared. Kathleen hays is here, to what extent is that final communique seen as a statement as a victory for washington . Victory considered a because the g20 agreed to remove language, antiprotectionism language, that is typically in their communiques, because the trump team pushed against the traditional wording to signal a new position on trade potentially coming. Had in theirthey communique, a simple bland a sentence that does not tell you much, so the other side is that the victory is not completely won yet. We are working to strengthen the contribution of trade to our economies. Had thischin also to say on saturday in germany. In free trade and are one of the largest markets in the world. We are one of the largest trading partners in the world. Trade has been good for us and good for other people. Having said that, we want to reexamine certain agreements. Saideven mnuchin and also he would like to see a winwin situation for everyone on trade. Here is what the u. S. Is looking at. Lets look at this bloomberg 4785. This is the top part of the chart shows the trade deficit. The blue part is services, usually a surplus in the u. S. Trade balance. The white bars, that is trade in goods, manufactured goods, and that is where the u. S. Has a large and persistent trade deficit, and that is why you see the bottom half of the chart, the overall trading deficit staying at 42. 5 billion dollars, too much for the likes of donald trump and his team. Did other global officials reacted to all of this . It is like the student telling the teacher i did not have time to study. In this case, the german finance minister said it was clear that Stephen Mnuchin did not really have a mandate to sit down and do detailed negotiations you need to do on trade if you want to make a change at this kind of g20 meeting him about the team has not been in place long. Australias treasurer Scott Morrison said Stephen Mnuchin met people, talk to people, performed well and was constructed, so he gave Steven Mnuchin a bit of a thumbs up. The eu minister for economics and finance though said ultimately that there has to be an agreement that protectionism does not work. We must all share the view trade, has toir thehared, to take on board losers of globalization, that trade is good for our economy and protectionism cannot be the solution. Some good news being reported that chinas finance minister and secretary mnuchin have agreed on economic corporation, making it more efficient and effective. It looks likeugh g20 officials will have to wait until their july 20 meeting to hammer out issues because they ran out of time and had to go home. Mainly the trump team, there was a sense they have not been in ever very long and what the final position was on trade, they werent ready to negotiate it just yet. Yvonne we know what happened last time when we had weaker fed speak. Our week during up to do it again this week . Think you make a good point. We could see the markets moved a lot, seven fed speakers, janet yellen on thursday. Charlierrow, neil coach evans, a voter from chicago speaking as well in new york. Also ahead on monday, a number of things are going on. Lets look at this interesting list for the french candidates for president debating on television. Prime minister Shinzo Abe Abe and Angela Merkel are together talking trade. A lot of Global Leaders will go head to head. Nicola sturgeon, scotlands for aminister, is asking sec. 30 ordered so she can go to the u. K. And say we want to , so we will see how that goes. She wrapped up a two day meeting. Also this week, the reserve bank of new zealand will issue its Rate Decision on thursday, so all kinds of Central Bank Activity all week to keep our eyes on. Yvonne a lot of event risks looking ahead. Kathleen hays there for us in new york. Secretary of state raising the stakes when it comes to north korea, Rex Tillerson saying the policy of strategic patience is over. We look at the implications. Next, where to find returns when volatility is up. We have Investment Advice from cmc markets. I am Rishaad Salamat in hong kong. You are back with Bloomberg Markets asia. Singapore listed as rough holdings has filed for bankruptcy. Ofhad been facing weeks hostile action from creditors as it struggled to recover. Says its assets are worth 1. 3 billion. Ownedors say they are half that. Shares are down 70 . The stock has been suspended since march 15. Rishaad Deutsche Bank expected to raise 8. 5 billion as it asues 690 million shares at 35 discount to the close on friday. Deutsche bank announcing the project on march 5 two boost growth and shore up finances. John cryan said he did not want tapap shareholders shareholders. Yvonne proprietary work is expected to begin on the carmichael mine after given final governmental approval. The chairman expects as early as may. It is to feel Power Generation and create 10,000 jobs in queensland. Brandnew trading week, there is something of a Risk Appetite blackhole as we started new week. High risk, low volatility environment we have seen. Our next guest suggests investors should take advantage of australian stocks. Cmc markets asiapacific joining us from sydney. Are you optimistic with weaker somepeak, that we will get rebirth of volatility in the market . Not particularly. Generally speaking we are in a situation where markets are fairbly fairly close to five you. Unless we see something to dislodge that commit we may see a continuation of this low volatility. Traders andr investors, it is a matter of being prepared for where you do want to be if we see volatility and the ready to act when it comes along. Yvonne im looking at your previous polls from early february, buy gold ahead of political volatility. I want to bring up this chart that we pulled from the mliv markets blog. It suggests that high in january, was that a long or mediumterm top for the dollar, or was that is good as it gets, and how does that feed into your position on gold . The u. S. Dollar has declined quite a bit. I dont think it is a longterm top. I think that whilst this selloff in the u. S. Dollar and correction may go a bit further, i think it will be a buying opportunity. It is one of my premier calls. I think we will see the Interest Rate differential widen between the u. S. And other Central Banks , driving u. S. Dollar strength. That will be a negative headwind for gold, but the point i was making last time we met, the political risks. I think political risks at this stage will put a floor under gold, so even if we see u. S. Dollar strength driving it down further, that itself will create an opportunity. Rishaad i think what youre doing is you have to be on the other side of that trade if you are buying dollars. I think youre not a fan of the aussie, are you . Thats right. Of aussie looks to be one the good places to the good places to be if you are a u. S. Dollar bowl. Bull. There is good resistance for the aussie of two 78. 5 cents. I dont dismiss the possibility of getting to the 78 level, but form where we are now, it is a decent sell. I think the austrian economy looks like one of the comparatively weak economies in the next year or so with problems and our Property Market , and that whilst commodities may stay up, they are unlikely to go much further and could be removed as a source of support for the aussie in the nottoodistant future. Rishaad tell me something, whats your view on the bond market . Changedo see if you are or you are revisiting this after what the japanese authorities taking downo in their holdings of french treasuries and getting back into the u. S. Treasury market. No, i think that will create an opportunity if it goes further. I dont discount the possibility of u. S. Bond yields falling further and prices going up. That sort of rotation by the japanese could be one of the main reasons, but the big the fedremains the fact moved in march rather than later , the fact that u. S. Wage growth is now 2. 9 really make the most likely scenario to me that we are going to see a total of three or four rate hikes this year and next, and the fed also moving to begin selling down its 2008, and if in that is the case, we will not see u. S. On yields languishing around 2. 5 . Ory were more likely be 3. 5 4 , and this is providing an opportunity to sell u. S. Bonds. Yvonne there has been a lot of exuberance over where emerging markets are heading. Haidi it is that the new area we should be concentrating on . Investors have been traumatized by it emerging markets over the last couple of years or so. Look, i think there is an opportunity at the moment. We are in a world as you said of relatively low volatility, so unless we see some big political risks come to pass, assuming that doesnt happen, it will be a matter of being a mild contrary in and taking advantage of the moves as they unfold. As you say, emerging markets have then a bit out of favor and is creating an opportunity compared to u. S. Stocks at the moment potentially. Haidi we appreciate your time. Exponent from cmc markets there. China is the Worlds Largest producer of cold and the biggest miner. They are rewarding investors with a special dividend. We will have more on that story next. This is bloomberg. Haidi i am haidi lun in sydney. This is Bloomberg Markets asia. Rishaad i am Rishaad Salamat and hong kong. This is what it looks like premarket, virtually nothing going on. The hang seng auction period flat. There. S are up a coal minered by coming out with a special come itself ofua 15 premarket. You also have other things in , 6907, showing you how Shenhua Energy has not been keeping up with the coal price as it has risen over the last two years. We had a big fall back in iron ore last year. Im watching a stock that has not moved as much as your stock pick. This is the worlds biggest bank by assets, a political story. Whnn gary co. Planning to sell his stake according to the Disclosure Document obtained by bloomberg. He is the ax president of goldman sachs, worth more than 15 billion. Separately planning to do fast 260 million when it comes to goldman stock. End up in the firing line because it is a top 10 it in trump towers and is up for renegotiation. You can follow the story and all to days stories at mliv get a market run down in one click. There is commentary, ongoing analysis the help you find out what is affecting your investment whatever they may be at any given moment. Rishaad thank you. Right, what we have on the way, property prices in china, home prices rebounding despite government restrictions. That is next. The start of the first day of the week. Ways wins. Especially in my business. With slow internet from the phone company, you cant keep up. Youre stuck, watching spinning wheels and progress bars until someone else scoops your story. Switch to comcast business. With highspeed internet up to 10 gigabits per second. You wouldnt pick a slow race car. Then why settle for slow internet . Comcast business. Built for speed. Built for business. 9 29 a. M. In hong kong. We are counting down to the start of the trading day. FromRishaad Salamat bloombergs asia headquarters. Haidi i am haidi lun in sydney. The, it is a funny start to trading week when the biggest mover in asian markets so far today is new zealand. Volatility,ot of not a lot of action is the week starts. Rishaad absolutely, just looking at what we have in store, some ppi gauges coming through come but it is second to Economic Data after that draft of political news, the fed decision playing out, affecting markets. We are looking at that u. S. Secretary of state visit to this part of the world as well, japan, south korea, and over to china. Lets look at the hong kong and shanghai open, over to sophie kamaruddin. Sophie kicking off with stocks in shanghai, reprising for a fifth day, up. 1 percent, although shin jen stocks are falling slightly. Climbing, andes the exchange of little unchanged. On, stocks in singapore have swung into gains, but dbs falling. 3 . The bank says it has suitable provisions made for exposures to ezra. Oil Services Firm did file for bankruptcy in the u. S. To hong kong, property stocks telconks falling while and Energy Stocks on the rise. At what isoser look moving in particular. Rising 16. 5 after its profit eat and a special dividend announcement. Following theding latest home price data out of castingising prices doubt on the efficacy of cooling measures by regulators. Curvessays strict or will put pressure on property stocks in the shortterm, but could be a rebound of potential positive sales data. We have seen property stocks resilient throughout the year so far. Country garden leading the rally of chinese property stocks in hong kong, although we are seeing that taper, but there is some resilience despite hoppity curves, Country Garden seeing stronger sales, so we have to look out at how sales continue throughout 2017. More on lets get chinas rising property prices. Our chief asian economics correspondent enda curran is with me now. This seems quite relentless. Ticking up quite nicely despite the property curbs the government has put in. They were seen as a threat to the economy last year. It bodes well. Rishaad that may bring in this graph 4099. Nonperforming loans, the blue line, they have tapered off a little bit. ,he situation is not worsening but probably prices continue to go up. The data is emerging and there is a sense that chinas economy is in a good place. Output isdustrial doing well, factory prices are better, exports arent bad, so from a cyclical viewpoint, their latest real estate numbers as to the sins the chinas economy is doing ok, for now at least. Haidi is this the sweet spot the government wants to hit in terms of not putting the brakes on massively when it comes to property sector growth, but also trying to get rid of some of this potential for a property bubble, or do you think they need to do more to get these prices down more . The language from the npc suggested they were comfortable, happy to see inventory clear, and theyre not too concerned about the big growth in mortgage lending. Badall mortgages are for properties so to speak. It certainly is a concern however that if we saw a runup in prices like last year that there is a risk that we are getting back into instability. Lets not forget the external risks facing china, rate hikes, capitalfrom the won outflows. We have that shot over the now at the g20, soak it