Last week. Selloffs outweigh bids by 600 to one haidi . Toshiba said to be near a winner. Incj are ahead in the field. Rishaad hong kong want to ensure it does not miss out on the next big thing. A reading on house prices in china. We are seeing pier 1 city house prices just inexorably rise. We have had this absolute runup of late. Expecteing how you bad loans at the same time. Nonperforming loans. Quite the reverse since march orer december of march december of 2015. People are not getting themselves into huge amount of debt. We have those numbers coming out in about half an hour. Haidi always interesting to look at that breakdown between the big cities and the second, third, or even fourth tiered cities. This is a recovery we have been seeing it we are watching policymakers potential reaction. It is a big week for china. We are expecting msci, their decision on whether chinese equities will be added to their global indices. If they do, it will be fourtime finally lucky. Huge implications when it comes to inflows into china. 30 minutes away from the open in china and hong kong. Singapore, hong kong, malaysia markets coming online. Sophie, u. S. Markets essentially unchanged. Politics at the forefront with brexit. Misadventures in d. C. Asian markets pretty buoyant at the start of trading week. Sophie we have political wrangling in d. C. Over the weekend. Monday, we have asian stocks pushing higher and getting closer to that 2015 high with japanese shares leading the advance. The nikkei 225 up. 7 . A weaker yen and this mornings trade data led be providing some support for shares in tokyo. We have because the up. 5 . Take a look at shares we have the kospi up. 5 . Take a look at shares. Financials offsetting the drop in retailers like woolworths, getting dragged down following the news of amazons megadeal to buy whole foods. Elsewhere, take a look at what is going on with currencies. We have regional currencies on the up here with the ringgit and korean won leading gains and the kiwi up. 2 . The best g10 performer this morning while the yen is looking like thworst so far tda. The kiwi is nearing a form of high agnst the greenback on the back of Rising Consumer confidence in new zealand. Support is coming through from buying of the kiwi against the aussie according to traders. We are seeing the euro give up its earlier gain share, although it is set to test its recent range as leveraged funds turn long on the currency. The pound is looking weaker as formal brexit talks are set to kick off this monday. The outcome of the negotiations are not clear just yet. Credit agricole says the best hedge against the potential hard brexit may be going long euro against the pound. Has initiated a long position. Brexit could turn ugly. The pound has been trading in a euro,range against the the tightest range since 2014. That could break out at sterling volatility could rise given these brexit talks. Euro pound down 8763. Rishaad just getting this breaking news out of britain with the metropolitan police in london saying there are casualties from this van collision in london. Officers on the scene. Emergency services. Beinger of casualties worked on at the scene. One person has been arrested. They are calling it a Major Incident. Really talking about early monday morning in the capital. This of course coming after that car that ran into pedestrians on the bridge. Tee wee ago, the me three weeks ago, a van running into pedestrians. What is going on with the first word news. Details . The yen weekend after softer e afterd softer than expected trade numbers in japan. Estimates of a 16 gain. Imports grew more than expected, up 17. 8 . That left a trade deficit of ¥203 billion. That is the equivalent of 1. 8 billion. Economists had expected a surplus of 390 million. Indias finance minister says the government will roll out the goods and services tax at midnight as planned. A gst council made up of state and federal finance ministers had relaxed filing procedures for the first two months. The gst is the biggest tax overhaul in india since 1940 seven, following a decadelong effort to simplify the countries tax regulations. The finance ministers of china and south korea have held their first direct talks in almost one year. They met at the aiib summit. They agreed to cooperate more closely. For, buts what we hope given that there are still some delicate diplomatic issues it too early for us to hope the barriers will all be away. Ight given my meeting with the minister and Economic Data led channels the two have, we hope that nontariff barriers and the restriction on the package tours will be eased as early as possible. 3 days after thbrexit referendum, formal negotiations are about to start. Brexit secretary david davis and European Commission chief helotiator mike michaud bee banier on u. K. Wants parallel talks the splits and trade links, but the e. U. Insist that is not possible. Global news, 24 hours a day, 000ered by more than 27 0 this is bloomberg. Rishaad the Hong Kong Exchange have plans to attract more big startups over the next two years after it missed out on that massive one. We are talking about the 25 billion ipo, considering dual listings and allowing companies to list before they made a profit. What can you tell us about this exactly . And where can does it all come from . It is a big loss for them because of the restrictions around the dual shareholding structure. They have proposed scratching that will a couple of years ago, but they want to create a third one that would allow that as well. The ceo has said hong kong missed out on 50 billion worth. F new listings because of this in thecided to list mainland. This is a way to attract them. Rishaad they already have one exchange meant to be sort of doing this. Tell me, what are analysts saying about this move . People i spoke to are so far generally welcoming this move. The Companies Listing are going to be focusing on new economy companies, health care, technology. These are industries that will be the future driver of growth. Skeptics say it is a question lister these will want to if they can get listed on nasdaq in the u. S. , they might prefer it. It takes a bit of time. Haidi what are some of the making . Oposals hkex is guest they are proposing to tighten the rule around existing boards, with we have seen a lot smallcaplatility in stocks that are unexplained. Some of the proposals include increasing the market cap requirement and the cash flow requirement and also controlling shareholders, restricting them not to allow them to sell below their stake within two years of listing. They are proposing a whole list of making it stricter. Haidi clearly, it was painful when they missed out on alibaba. As everyone knows, it was the crown jewel. If they managed to snag that listing. Kana right. Rishaad absolutely. That is one of the many i guess which will be on the wish list. Still ahead, singapore enjoying a record property rally. Is it built to last . Plus, a case of the right place, and the right time, when it comes to china finally being includ in the msci. Allianz global investment, next. This is bloomberg. Rishaad you are back with Bloomberg Markets. I am Rishaad Salamat in hong kong. Haidi i am haidi lun in sydney. A quick check of the latest business flash headlines. And australian insurer considering putting more money into Corporate Bonds and infrastructure in a bid to find refuge from low yields. They now see opportunities in such securities outside of australia. Head of investment says sembcorp sinco isng for looking for highqualityr debt. Rishaad we are told it expects some staff cuts and changing e it went public in 1992. Haidi hong kongs defective Central Bank Says it has served the city well for 30 years and it should stay. Says the city is a small and open economy and keeping a Stable Exchange rate is important. Hong kong linked its currency to the u. S. Dollar in 1983 when negotiations between beijing and london ver hong kongs return caused ae rules capital exodus. Rishaad we are talking msci. Why . It is wednesday. It will decide whether to list stocks in its global benchmark. The offshore market may be the worlds second business, but there is no guarantee it will make the cut on his fourth attempt. Allianzchan is a cio at global investors. Wonthey, what they they . Raymond that is the milliondollar question. I think this time around, it should have a higher chance them a last two years because there is some progress which has been made. There is also one to go. When i want to point out is although we all believe longterm that this had to be fairly positive for the markets, but the shorter term, whether it gets in or not, i am not sure. When you look at the index, it has not moved much. When you look at the underlying , they have done very well, partly because the local expectation that this stuff does well. If the decision is yes, there ticking inme up some of those stocks. Rishaad in previous attempts, we have seen that happen. People have been very sanguine going into this and fairly nonplussed. Very careful, it would seem, anyway. Raymond if you look at some of the underlying stocks, they have moved quite a bit. The msci decision will rishaad have they come to a halfway . Let somef these ashares in and exclude others on certain criteria . Raymond this is the key. If you really look at the decision, in terms of the impact, the nearterm impact, it will be very small. For example, we borrow less than 2 of the msci china index for the emerging market index, it may be around 50 business points. It will take a long time to realize the impact. Haidi i want to throw up a chart on my bloomberg, if you can take a look at it. 74, if you are playing along at home. It is falling below the average. It suggests that perhaps we see a bit of a loss in momentum when it comes to trading. ,he last time this happened this gold circle, we saw the downside for the shanghai comp. The problem is, should we be looking at tentacles when it comes to asia should we be when weat technicals are looking at asia . Is that something the msci will still be concerned about . Raymond i think you are right, actually. It is very much a retail driven market. Technicals may not be that helpful. If you look at the fundamental part of the story, the corporate in the china a market have proved they deliver better earnings, they deliver better cash flows, and we have seen some of this. The, which should be beneficial to the cash flows. We argue this is better. If you look at the valuations of the shanghai market, because of years ago, theo valuations now look a lot more attractive than before. That is what i would say. Haidi what about some of the fund flow issues . Repatriation, the use of being able to repatriate funds is one of the reasons they are not good enough to be included the third time around. Do you think they will make progress on that . Raymond they have to make more progress on that, no doubt about it. The fund flow is very important. People put money in, they need to get the money out. I expect there will be progress to be made there. We do need to wait and see what will happen. Haidi what about the downsize risk the other Downside Risks . This is a key political year. Stability is the thing regulators want to maintain. You have this deleveraging drive which has already called a bit of a taper tantrum across the bond market, the equity markets, and this crackdown on insurers as well. These were some headlines when it comes to big players like anbang. Do you expect more volatility not looking at the Downside Risks potential he playing out this year . Raymond you are right. Yields arethe bond going up. The shot rates are going up your the economy, after a good start in the first quarter, in the second half, we expect to see slowdown in the economy, although it will not be a major so in terms of the, you know, positive factors, we have probably seen most of it in the first quarter, in the first half. Moving forward, we need to be more mindful. Despite that, the market is not expensive. We can make good gains if we take the right names. Rishaad absolutely. Pretty good earnings momentum. These are good foundations for a buying opportunity. Why is it such a screaming raymond if you look around the world, we are in a position to take risks on the risk assets. We still believe globally that there are companies that continue to produce better earnings and all that. With me in the global markets, what we are seeing his asia, europe, and we think the u. S. Is a bit expensive. We are not sure the trump effect on the markets. Dateu look at your to performance, it is no surprise that this year, we are starting to see asian markets should outperform. This trend will continue. Rishaad i am looking at hang seng. Cheap for a reason . That is always the question. Is, if youe key believe the fundamentals, the earnings, if you believe the Earnings Growth is coming back rishaad you are saying it would be selected. Raymond certainly. Stock picking is very important. What is your favorite rishaad what is your favorite at the moment . Raymond let me share with you this. So far this year, if i look at the markets performance, the market haseen better. I would not be surprised to see the Southeast Asian markets take the turn going to the second half based on number one, the asian Southeast Asian market is behind. Number two, if you look at the u. S. Interestrate, you saw the fed increasing the Interest Rate. If you look at the market, i am not so sure there will be more interestrate rises. If that is the case, the Southeast Asian markets catch the performance. Chan fromaymond allianz global investors. Up next, cooling chinas Housing Market . Some of the property stopped in premarket trading. That is next. Rishaad updating that developing story out of london, where a van has collided with a number of pedestrians. These are live images coming out of north london. On the Seven Sisters road, police declaring this a Major Incident. It has just gone to 24 in the morning in the 2 24 in the british capital. This is an area which is close mosque. Ark and the park this incident is said to have occurred right next to that as well. These live images coming through on this developing story, where this man has collided with van has collided with pedestrians. Police declaring this a Major Incident, just to reiterate. We will leave those images and keep you up to date. Counting down to the start of the trading day in hong kong and china as well, looking at the premarket auction period, the 5. 4 ng session up up by. 4 . Now, let us have a look at what has been happening. While property itself may be incredibly popular and sent prices soaring, we have not quite the same kind of lift up when it comes to property stocks. Bear that in mind. The beginning of this year, we have seen Massive Gains nonetheless for the likes of evergrande, soon after sunak, and country garden. Evergrande, up 200 in that timeframe. Haidi yeah. This is one stock we are watching that became apparent to us friday when it fell 88 . We are talking about some of these smaller Companies Listing in hong kong. It is a bit of a murky mess. Take a look at this stock. Ofs is a provider funeral services. Was suspended from trading. We had extraordinary trading of volumes as well. The average. Shares. Rman sold decline ine biggest 17 years since the company was listed. We will be watching that as it has applied for treating to resume. Coming up, korea and china working more closely on trade. This is bloomberg. Just on 9 39 and down to the start of the trading day right here in hong kong and in Greater China generally speaking. We already had trade numbers out of japan. Were looking at brexit negotiations between the European Union and britain. Weve also got politics in the u. S. Dominating headlines and congressional wrangling in d. C. Providing this colorful backdrop. Global equities last week finished lower. When it comes to markets, people looking at china a shares and possible inclusion in msci index. Wti crude still below 45. Im Rishaad Salamat from bloombergs asia headquarters. Haidi im haidi lun in sydney. We are still wondering whether the efforts that opec have made can actually rebalance the global glut. We will be getting inventory numbers stateside. That has been the major contributing factor. We are also awaiting some Inflation Numbers out of key asian economies, malaysia for emple. More centralbank activity after last week. The central bank of the philippines as well. We are awaiting may china property numbers. We expecting further signs of weakness. Preliminary numbers, sales, transactions, suggest further weakness. Weve had a number of local authorities put through these calling crubs, restrictions when it comes to mortgages for second and third subsequent homes. We will be watching for whether this is going to show this extended calling. It is a balancing act when it comes to what authorities are trying to do. They dont want a state slowdown when theres so much financial risk and importance. Were going to get the latest. I believe the numbers are out. Lets get over to Tom Mackenzie. Tom weve got the individual breakdown for the three toptier cities, beijing, shanghai, and shenzhen. Let me start with beijing. This is going to the month on month. Prices unchanged in beijing. Shanghai also unchanged month on month. Shanghai year on year, those prices gained 12. 6 for the month of may. That is year on year. Shenzhen, those prices look like they fell shenzhen prices fell 0. 6 month on month. They assessed 70 cities and prices rose in 56 cities month on month out of the 70 surveyed. That compares to a number of 58 in april, 62 in march, 56in february, 45 in january. The number for may is 56 cities across 70 that are monitored where you have seen price rises. That would seem to the roughly in line with where policymakers would like this to be. Theyve been putting these curbs in place, tightening the screws, whether it is down payments or sources of funding for developers, putting price caps in place in some cities as well. They want to cool the price rises in the top tier cities. Has appeared to have fed through to these prices. The r