Miner and one of its top Power Generators talking about a 267r the could be worth billion. Rishaad noble facing another difficult day after its new york listed shares tumbled, it singapore listed stock at a 17 year low. Indeed, noble sure starting trading again, but lets start off with the big stories of the day. Sterling, the at election in the u. K. Taking place on thursday. What we have been seeing is that these terrorist attacks have not had that much impact when it comes to the polls, and indeed by influence, what is going on with sterling. Sterling has been beholding to the polls in a different sense. Show how as the labour party has been doing better in recent weeks, recent days even, we have seen of oars weakness for sterling. True when we had of course the pound weekend for the tories, so an inverse relationship if you will. It seems these terrorist attacks do not have a huge political implication running into that thursday poll. Side i suppose the other you could look at in terms of risk appetite, you are getting ing dynamic with global stocks hitting record high after record high or it at the same time, you are seeing this play out when it comes to treasury yields. The u. S. 10 year falling to the lowest since november. Not a lot of appetite. You can see that gap in november, it looks like a double top as well. Be seeing a signal of lower rates ahead after that nonfarms number. There is some question as to on his the fed continues trajectory of another to hikes this year. Do we just get one instead . In the asian session, we see this playing out when it comes aussiestrain bonds, the 10year tracking its u. S. Counterpart in that fridays session, yields slipping to a sevenmonth low as well. We are 30 minutes away from the open in china and hong kong. Singapore, taiwan, malaysia coming online. Marketswe dont see all tracking those gains from wall street on friday. Sophie we had quite a weekend when it came to trading this monday. In asia, we have some traction, about. 2 higher for the taiex. The asx 200 leading the drag in asia, down point 1 with banks and Energy Shares the biggest drag. We are seeing that slip in treasury yields as well as oil falling to november lows. We have seen the yen holding near a twopoint fiveweek high, dragging on japanese stocks. Losses are also deepening on the kospi, down. 3 . A risk off sentiment on this monday. Outt for traders to look for. The policy under pressure, down. 2 ahead of an rba policy decision and gdp report. In the bond space, we are not seeing signs of fear in the aussie ons face him at the 10 year falling to a sevenmonth low, and a drop in 30 year yields as well. Space to look at the g20 as we highlighted earlier, you were focusing on what is going on with the u. K. With the election on june 8, and we did have the pound react somewhat this morning in early asian trade, but paring its earlier drop, now down. 2 . The mexican peso in focus, down. 4 , this as a key state election is considered too close to call. With singapore online, i want to show you Noble Group Shares in the lion city after sliding 5. 4 on friday. We are seeing it unchanged on the open, but well take a look at the stock later today. In stock has lost over 75 may. Take a look at what else is happening beyond singapore. Stocks fell on his 14 in new york on friday, extending the drop there for noble to 83 , sending shares to their lowest in nearly 17 years, this as noble group is asking vendors to extend its credit financing. I want to pull up the board to show you elsewhere this going on. Share suspended from trading in shanghai, but this is how they closed on friday. The whole players are set to be in merger talks. Players are set to be in merger talks. Rishaad good one, sophie. We have an interview with j. P. Morgan and jamie dimon coming up at noon. Headlines, aws word of caution for beijing coming from camera via singapore. Canberra via singapore. Yuan Malcolm Malcolm turnbull said smaller nations could bound together in the face of a bully. A coworst of china would find its neighbors rescinding demands they cede their autonomy and strategic space and look to counterweight beijings power by bolstering alliances and partnerships between themselves and especially with United States. The pboc is committed to plotting a neutral policy course according to one of its deputy governors. Speaking at a conference in beijing, the bank said it will continue to neither loose nor tight Monetary Policy in order to ensure stable liquidity. His comments, mid of drive to reduce Financial Leverage which has sparked concern of excessive tightening. Drawn up a 10 billion supplementary budget to help meet the president s drive to boost jobs and wages. If passed, the government will billion for 4 jobs, the majority in the public sector. South korea is struggling with youth unemployment. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Haidi thank you. Claim of been the responsibility for the terror attack in london. At death toll now stands seven. We are following events in london. What is the latest that we have . Islamic state has claimed responsibility for the attack. It saw the Election Campaign halted for a second time. Broken byruce seen theresa may as she addressed the country from her downing street residence, getting tougher on topping the rhetoric as she vowed to seek wide ranging policies to combat terrorism. This is the third attack in as many months, so it is something that will be at the forefront of voters minds as the into the polling booth is thursday. Exactly how it will impact the election remains to be seen. Rishaad people getting back to work this monday morning. Situation . Security how different will things be around town, london, and also the rest of britain . Upsecurity being stepped around the iconic bridges of london, where the last two attacks have taken place, so London Bridge still closed. Police across the city, a site we have not seen in decades. Police officers in london typically dont carry guns. More likely, we have seen 12 people rested, four properties arrested, for properties raided. Hospitals reporting 48 injured, 21 in Critical Condition as they continue to receive care. London bridge station for commuters is still closed, expected to open at 5 00 a. M. In the morning in time for the commute. Large transport hub that brings a lot of people in from the suburbs in the southeast of england. Rishaad thank you. Lets have a look at what is going on elsewhere in the world. Chinas biggest coal miner in talks to merge with one of the biggest coalfired generators. They are in preliminary discussions to strike a deal with the potential 267 billion. Our asia Energy Editors with me now with the details. Good morning. Last night, we saw a couple of units listed in shanghai issuing a request for a trading halt. There have been discussions between the Parent Company, the china, coal producer in also a large power producer, and a very large power producer, the secondbiggest n. Be huge is going to benefits between such a large coal miner and power producer. This fits into a lot of plans that have been thrown about recently of trying to get some of these Power Producers together. We have seen combinations proposed of Power Producers, coal generators, Power Producers , so this is the latest combination proposed in the xi jinping reshuffle. This is the latest in terms , butnsolidation for s oez is it meaningful in terms of the ship away from coal policy . Exactly. One of the things that the government is trying to do is reduce the overcapacity and the use of coal in Power Generation and other industries. This rationalizes the cold supply into the power sector and helps coal supply into the power sector and helps the government put a cap on a says capacity and production and help limit the supply into the system. We reported earlier that there orht be other merger talks other possible mergers between these Power Companies and coal producers. The first be one of one across a broader industry shakeup that could not only bring the industry in line, but help the government to reduce its use of coal overall in china, which is the Worlds Largest reduce her and consumer. An interesting recent development which china becoming the leaders tackling climate change. Thank you so much for that. Policyhead, chinas yuan blindsiding forecasters once again. We will look at the yuans rapid rise and how far it has to go. Kongs next, hong skyhigh property coming down to earth. Our next guest says a crash is only a matter of time. This is bloomberg. Haidi a quick check of the business flash headlines. Foxconn chairman says apple and amazon are supporting his suit of toshibas flash memory chip unit. Have offeredwo Financial Support for the bid, the first time the foxconn boss has confirmed his interest in buying the unit. Japanese authorities wanted domestic letter to step forward to prevent the technology from going abroad. Rishaad toshiba struggling division agreeing to a three contract with the Boilermakers Union running coveringo may 2020, 172 employees who will return to work on monday. No details have been released as of yet. Haidi toyama to has confirmed has confirmed it has sold all its holdings in tesla. The Company Confirms the end of their collaboration for the time being. It bought a stake in 2010 to introduce green cars in the u. S. They developed electric vehicles in canada, but the relationship soured amid culture clashes and recalls. The latest u. S. Jobs numbers on friday disappointing, raising doubts about the fed rate hike path, or does it . On theexecutive one hand, lets get a view to what is going on. Numbers much weaker than anticipated. A we reading too much into this . I think so. They are quite determined to hike rates again. Given also the fiscal policy. Rishaad what fiscal policy . Exactly. If the fed says we will wait for better things, and in between we a path thattensibly will push rates up in any case, it ishe fed might appear keeping back. I dont think that is a good idea. Rishaad it makes that Fiscal Program more expensive ironically. It does. The fed cannot possibly say what ever the fed is doing will push up Interest Rates, therefore we will hold back and see what happens. This is fiscal policy come in the other is Monetary Policy, and they are meant to be independent. We will be squeezed once by higher fiscal deficit, and squeezed twice by higher fed funds. That is my starter for a monday. Rishaad we have not got into full swing yet. Is, do fundamentals necessarily mean they should be raising rates . The second part is, or is it being done to give themselves more firepower looking ahead . You make me sound like an economist. What a horrible thought. It has to be both. The fed has already hiked twice. They cannot possibly be seen to stop. Perhaps until they have possibly hiked twice to the end of the year. Now is as good as any time because we have june, july, no fed meetings in august, then we are pushing into september. In other words, it is for another quarter. It is a mixture of psychological and a female macho thing on the part of janet yellen and also some macros thrown in. How much risk are you assigning to the possibility or even the likelihood of further adventures from trumps white house. We have that tantrum a couple of weeks ago, and now james comey is testifying this week. Marketct this will be a that remains pretty sanguine about everything that happens on capitol hill . Apparently so, to the extent i am delighted now that we tend to ignore trump. Its like saying children in the playground are noisy but not in real mischief, because reality has taken a bite. And thes yes answer is yes. The worst thing you can do to trumps ignore him. He will not go away, but he would lows it. Progress is taking place. I like the five tweets he did following the sad terrorist attack in london, one about standing by the british, and the other four was how good he was with the travel ban. It doesnt make a great deal of sense. We will talk more about that. In the meantime, more in just one moment. This is bloomberg. Haidi andrew, you have been warning investors to stay away from the hong kong Property Market here it how far are we away from the crash you are predicting . Thatoblem number one is its going to rain, going to rain, then finally it rains and i say, told you so. I have been concerned for two years, but it has not happened. There were two ways in which it would happen, people would wake up and find out that property is overpriced, that property sector equities are significantly expensive. There would be all kinds of reasons in which property will appear unattractive. What is happening, which for me is much more significant in that it has not happened so far, are you with me so far . The peg cannot change. China says it will. The peg stays. If the peg stays come Interest Rates in hong kong go up. What ever the banks and money market tells you to do. Competing, and thats why theyre keeping Interest Rates down as far as mortgages are concerned. The hong kong dollar has gone into a weak trend, and the gap between the hibor and the fed funds is widening. It looks like the fed will increase Interest Rates. People say Interest Rates really dont matter. They dont really affect the property sector in hong kong. Im going to sake a deep breath and say oh, really . The reason is we have five years ofs deepening negative real Interest Rates, and that has been a huge boost. Im not convinced it does not really affect. Now you dont need to have Interest Rates to 20 . All you need is to have a clear trend that Interest Rates will continue to be up. The hong kong dollar is weak, and therefore the monetary authorities are up. Saying ishat you are that in a Housing Market already unaffordable, it will become more unaffordable when Interest Rate payments come up. Its not reflective of property stocks. This is showing a correlation between the hang seng and the Property Index within the hang seng because of the waiting weighting. Property stocks are looking reasonable in terms of their pricetoearnings ratio, but that does not reflect the Property Market itself, or is it complacency . I am eating incredibly being disingenuous. The markets are already telling you they are cheap. If they were very expensive, they would say prices have been put up. If something is cheap, there is a reason why it is cheap. The same when it is expensive. I will stick my neck out and say they are cheap because they should not be expensive given what is likely to happen. Also, in the case of the housing , and im quoting bloomberg , tencent accounts for 17 of the index value. Steeply up ormove down your respective of what is happening in the property sectors. We are having hshares and related to the property sector. When i look at the two things together, im not going to simply jump and say you are absolutely right, properties are too expensive or cheap. Rishaad great stuff as ever. Counting down to the first trading day of the week. This is the hong kong market, premarket up. Generally declines in this part of the world. This is bloomberg. The first trading day of the week. I couple of companies we are watching. A couple of companies we are watching at the moment. We are live from bloombergs asia headquarters. I am haidi lun in sydney. We are watching some of these related companies, the Companies Listed in shanghai that have requested a trading halt, but Hong Kong Listed units were informed in that friday session. We are hearing about potential merger talks between a Top Coal Company and one of the biggest coal generators, a massive sle at soesle merger merger as they try to consolidate the sector. Its share price up over 21 in premarket. Lets get to the open proper as hong kong and shanghai get underway. Sophie a mixed bag when it comes to chinese stocks. Point 1 after rising. 1 on friday, but we do have the shenzhen rising. 2 5 , and hshares on the up, tracking that gain on the hang seng, rising for a Third Straight day. The surge we have seen in the yuan is a positive for chinese stocks in hong kong. The pboc set the daily fix at 6. 7 935, stronger than friday. Taking a look elsewhere in the region come the nikkei 225 swinging into the green ever so slight the. I want to point out what is going on with the taiex in taipei, up. 3 , one of the biggest gainers in the region, tech heavy gainer of 3 this year, and taiwan saying production of Semiconductor Equipment will top 1. 3 billion. You guys were talking about those coal players in china given reported talks of a potential merger. Take a look at the shares listed in hong kong. Up over 17 at the open, 2. 6 , also on the rise here 4. 27 as companies are said to be in merger talks. The shanghai listed shares are suspended from trading. Elsewhere in the region, seoul, korea, the share price swinging on its first day of trade following a restructuring. Surging after a jump in samestore sales. Goldman sachs sees continued strength in the apparels the vision. Apparels division. Lets get to first word news headlines. Haslinda theresa may will seek new terror powers if she wins this weeks election. Speaking after this saturday night rampage, she said there has been too much tolerance of extremism in the u. K. Dead andk left seven 21 critically injured. 12 have been arrested. The Election Campaign has been suspended for a second time and also halted