Evacuate theirto citizens following violent protests. To Chinese People were killed. Chinese people were killed. There was a demonstration outside the chinese embassy. They have suspended towards to vietnam. Tours to vietnam. Clashedthere when ships at cm we have this first talent and we have this firsthand account. Both countries claim territorial rights to these waters and chases and collisions. This crash occurred last week. SayVietnamese Coast Guards the boat was idle in the water when the chinese vessel ramped it. There was damage. No one was hurt. A radar screen shows that there area, which in the is more than double the vietnamese. Chases like this are daily occurrences. Both sides are ordering the other side it to leave. Isthis coast guard vessel seven not of miles away from the exploration rig that you can see in the background behind me. There is a ring around the rig. As closeon is to get to the vessel as possible. Typically, chinese vessels give chase. The turf battle at sea is likely to continue. Bloomberg. Here . T is happening what has been done to calm the waters. The tensions will subside on land. They were quick to disperse the protests that were planned and they will not allow them to continue after this. It has done too much damage to International Reputation and it is clearly in their interest to keep things quiet. They cannot allow the chinese to get away with this. On the other hand, there is not much they can do. They can chase ships and make harassments. They have to keep that up while diplomacy has time to work. Vietnam and china resolve this on the round . On their own. China likes to handle things bilaterally. They are more powerful and economically in control. Case, and you have seen the highlevel talks that have accomplished nothing. Not much will happen. Do is tonam needs to get their members on a more united front against china. Ok. To question is, what happens make beijing remove it . Hopefully, not too much. It is the middle of august before the monsoon season hits. At that point, they will have made their point. Their point will have been made and they can safely move aside. If you thought this is about the oil, there might be deals that can be done, and so on. If china is making a larger point to the United States about the waters in this part of the world, it will take quite a bit to get them to change their car to us calculus. Is in chinaputin this week. Do you think what happened in crimea will embolden . They have been careful. They have not come out in outright support of russia. There are elements within the Chinese Government who understand that russia is not the model they want to follow. This is not a rising global power. China benefits from being part of an international order. Hopefully, they will not think that Vladimir Putins strategy is one they need to emulate in the south china sea. President th korean says that she is responsible for the disaster that killed people. She failed to manage the operation. The victims are students in a single school. Indias leader says they are doing gods work. Nominated as Prime Minister later this week. Modi is seen as probusiness. Them winning a seat in the lower house of parliament. With the leader being john has the details. You just said it. The first story. He was a front runner. He did not win. Extraordinary that they are heading to a senior and critical cabinet post. Parliament ise of where they are a minority. 51 will have 245. Obama pushing through lows. Laws. He has a seat there and that is a good one to have. Government is one of the favorites. Clearly, the preferred candidate for Prime Minister. We will see what happens. Won on theon was promise of the economy improving. On the election, we saw stocks go up in a search. Won the majority and we saw the rupiah fly. Andhey pushed through decided. Clearly, inheriting jobless growth. All of this must be addressed. Up rupee, for example, is from the record low last year. He was put forward as the Prime Minister by the party. The rupee is now at a high. Of course, we can see the performance over the last few months. Better stocks so far. However, the defensive plays are out of the way. Deutsche bank and the construction stocks have benefited from economic recovery. Gains by the banks and their. There. S watch out for those in the open today. Up. Sbank limiteds have an important bsd capital goods index. All of the crucial capital goods. There it is. Thank you for that. Chinais no let up in after the government asked lenders to accelerate lending earning. We will talk about it. Over the past years, it was the case that beijing was trying to prevent prices from climbing up quickly and now, we see the policies in a negative. Take a look at the prices. That is right. Comparing march versus april. You have beijing and shanghai. Cities. F 70 just to go over what is contributing to the property slump that you see, a supply and demand issue. Providing more steep discounts to during homebuyers. It is interesting. They were trying to encourage lenders to extend more mortgages. That there saying market is on a break. That is what they say. I have that on the board. Reaccelerates to credit growth. Know whichlicymakers lever to pull. They know which one to pull. The question is, when are they going to pull it and how much are they went to pull it by. Thank you very much. We will tell you what we have on the way. The new government. Our next good says that the economy will have a slow process. The main benchmark is one of the bestperforming. Of ait may be the start longer gold rush. We will speak to find out who will drive the next phase of growth. Here is a look at the markets across asia. Have the region index. Had thewhat we have moment. Trainingtures started trading. Look. E a up. It may be it may not be the panacea the people have been looking for. Meeting a definitive result . Absolutely. As stop we are going to have modi tsunami. This is a vote for economic growth. The fundamentals are in place. We have very slow employment growth. High inflation. These are things that they have to deal with. The good news is that it will be a long road ahead. There are low hanging fruit that can be plucked easily. The First Priority has to be the new budget. It has to be delivered by early july. That is right. I think there has been a loss of fiscal discipline on subsidies and the current account deficit. Rein thatto work to in and take some of the pressure off of the r. B. I. What we need is Decisive Action in this budget and clear clarity for hown on subsidies the tax base can be expanded. If that is the case, there is the potential for rate cuts next year and that is the other key for the economy. Structurally, things have to be done. Side, there is going to be liberalization. He has gone and spoken against them. Talked about the low hanging fruit a moment ago. They are getting more foreign capital in to kickstart the Capital Exchange cycle and work two reduce. Up is aopening this sensitive issue. There has been a bill before parliament for years that has been languishing. I think that that could send a positive signal to Foreign Investors. Getting back to the fiscal mix of things, there is a on the monetary side and among the government. How does it work . I think the government has been very clear about that and is looking for more support on fiscal policy to take pressure off of Interest Rates and help in the fight against inflation. Areas that india has to work on his food prices. Government spending over the last five years or so on subsidies has been a critical element of influence. I think that is important and the early noises we get out of the administration around our administration our relationship with r. B. I is important for setting the town. We may see Interest Rates earlier. We do not know much about the proposed. The former trade minister is back around as a lawyer and is a strong choice for the bjp. The policy direction that we will get. Thank you. Still to come, a twist in patent laws. We have that coming up next. These are your headlines. Boosting stocks and the rupee. I sent the rupee to an 11 month high. Signs of recovery. It currency jumped after smashed estimates. Monthged 18 in the last and there was a forecast of a 5. 8 increase. The first gdp this morning. We will know if stability has taken a toll. A forecast of 2. 2 . That would be the shop is the sharpest drop. Analysts believe the country may fall into recession. You can see the rupee. Im only going to show you one. It was 68. Use that shows you the strength. Drivinge the stories the market. Right. Shake theittle to growing pile of legal bills and we are watching this one. Lets imagine that at the top. You have apple and google. Take a look. We are tired and done and will not play out these battles anymore in the courtroom. They have spent millions in legal fees. , theyre going to motorolang to see the availability. Years,e past couple of lawsuits have been filed in the United States and europe. They are going to duel when it comes to things like mobile and online music. , many people are saying, is not an active competitor and there is little for them to do. They have agreed to Work Together and focus on patent reform. Look at this, people coming together in harmony. It is interesting that you mention this. Ofy say, this is apples way saying that they are going to focus on samsung and double in our fight against samsung. Oneold you about how apple 120 million from samsung. 158,000 and will continue to fight it out in the courtroom. Each company is going to seek a ban on each product. They can be old products. Right. Thank you very much. Lets tell you what is going on. Six months in the philippines and people rebuilding their lives after the typhoon. The shanghai market opens. Godssays he is doing word in india. Rebuilding lives after a typhoon. We have a special report. Shanghai is starting off. Lets go out to john. Would have an impact right now. The prices are disappointing. We will tell you about home taiwan. Nd australia is pretty breach. Resources and banks on the klein there. 25 . By it has been falling. China and hong kong. Look at the impact of the stocks we are watching this morning. By fours are off percent. Today. Ssed estimates the retailers and stocks open again. If i can look at the pie chart the hong kong see open. Particularly the property area. And gas. Cials two quarters of a percent and property stocks. Holdings. Roperty these are all crucial ones. Prices rose. A price increase back in march. It has gone down by 12. Landing 1. 5 . You are seeing a decline right now and this is a reflection on that. India is preparing for a new government. Bjp wins in a landslide. They report on the challenges ahead. Hello and good morning. I am at the bjp headquarters. Nobody really thought they would get the kind of majority. Seats s 284 seats 284 seats. A significant majority. It is not something that most were expecting. The congress was completely washed out and did not manage to have a enough to be the leader of the opposition. Time, over then in and, he conducted capital. We have multiple with the media thewe will watch parliamentary board meeting. And, in a few days from now, we will look at the ceremony taking place. Take a look at the protests. Protests started when they sent an oil vote. Vietnam has deployed Security Forces and Ho Chi Minh City over the weekend. There was a demonstration outside of the embassy in hanoi. A public apology after in pyongyang. The incident was described as being serious. Reports say that the building housed 90 families. People charged in negligence in connection to a mine explosion in southern turkey. The Mining Company ignored safety concerns and it was superficial. Victims were taken out of the mine on saturday and the entrance has been sealed. Six months, devastated parts of the philippines are still trying to make a living. David sent us this special report. The family survived the disaster and the typhoon took almost everything they owned. Wish, more than anything else, is to earn a living. We cannot rely on aid. That will run out. Is one of the thousands who relies on the fishing industry. The United Nations estimates that 25,000 fishing boats were destroyed and forecast that it will take one year to bring things back to where they were before the typhoon. It has a net. And they bring the fish and. About marketso and refrigeration . The response from the private sector has been critical. Jumpstartwere used to trade on the ground. We deployed livelihood for stores. We gave them capital support. Store likefor a this. Month, i was able to sell 100 worth of things and i can use that money to buy more merchandise to sell. Overall, the finance industry has estimated that foreign aid has topped 3 billion. It is present in the region that we is something hope to launch within the next month or so. In many cases, it is not enough to fish or teach them how to fish, it is giving them tools to rebuild their lives. Shows apinion poll collapse for tony abbott. How bad was this polling results . Result . Two polls were conducted and they told similar stories of support editing away from tony bbing away from tony abbott. The Opposition Labor Party is at 56 . Of four percent in opening up a 12 lead. Up four percent and opening up a 12 lead. Tony abbott is now at 40 . For the first time, the Opposition Leader is out in front and commanding lead so commandingly so. People were protesting on the streets in most state capitals over the weekend. They are upset about the measures running deep. Abbott haster tony sayonded to the results to that the job is not a popularity contest. Budget. A harsh people saying lies lies lies. It goes to the lying. It is a popularity contest. We are seeing a series of broken promises. All of these things that were said before the election. Theses at the root of awful poll results. It is only 2014 and the next election is not due for a few years. There is time for them to bear some fruit from the tough decisions made last week. Thank you. Saysg up, our next guest that they are still at risk of a bubble here. That is when on the move returns. Lets have a look at the trading day. It is positive. Look at the overall region. On the way down. 40,000. The nikkei there. Lets look. Lets have a quick look here, as well. That is. 8 . Lets check in with what is going on. We are flat. We have had 15 minutes of trading in hong kong. Lets look at the hang seng. It is down. 33 . And political instability. Street protests are having an impact. That is the global outlook. It is gdp day in thailand. ,he forecast for growth compared to the year before, is 0. 5 and that is a concern because of the hit from the longrunning clinical impact. It looks even more alarming. The economy is expected to shrink from the previous quarter by 2. 2 . Why does this matter . Well, it matters a lot. Thailand could go into a technical recession. What is going on there shows no signs of being resolved. Goldman sachs has cut the growtht and see 1. 7 this year. Whenhave cut the outlook what they think will be happening at the protests and the political protests put a drag on government spending, as well as tourism. Banks have weight gain. They think that thailand has experienced two consecutive quarters of contractions. Let me leave you with a quote. For a long time, this was looked at the economy running on a separate track from politics. That assumption cannot be taken as granted anymore. Were covering the gdp figures today. Lets have a look at the top stories out of china. Keephave told lenders to less than one third of the bank cost liability. It has more than tripled over the past years. The prices have continued to spread. That is the fewest in 1. 5 years. The central bank called on the biggest lender to grant mortgages. Is current property continuing to rally into next year. We are joined in the studio. Thank you for joining us. Would you make of these figures. Yeah. Prices anding tightening liquidity in the second half of the year. The banks are cutting out and develops are becoming difficult. It is not surprising that the development is cutting pressure. This is what we saw in the past few months. Flex are there any curves in place western are there any curves in place . Tothe government wants stabilize the market. We hear about the property household the chinese will only by what it is on the rise. They wait and see if the price will connect correct. Support o assess ask for support. Ande mentioned sentiment negative sentiment creating further negative sentiment in a vicious cycle. Indeed. The propertytigate market and, at the same time, with the new government, rather than using credit price purchasing and those administrative measures, they want to let the markets play a supplyrole and let them the price adjustments. Hugeousing market has a divergence and it is hard to have a sense of the broadbased policy. How much decline in prices do you think the government would tolerate . House price has corrected from 2012. On a yearnwide basis on year basis, they use that as toauge and it is close 1015 . 10 , Many Developers into more difficulties. Housingmportant is the market for the overall chinese economy . Should we see a decline . Indeed. We published the reports. Thank you for reading it. We have a line. It is too important to fail. We know that it is the contribution to gdp growth. We are considering the balance and, at the same time, the exposure to the sector that is rising. Obviously, there is a shadow banking sector. Have close that they to 18 trillion in debt, but the official number. And thebt payments property markets collapse. The central governor has to come up. Talkingch and you to you. The Housing Market slowdown in china. The tablet market. North korea could open some doors in the reclusive state. Right. Ght lets look at the stories. He and president xi. May sign a deal. Western sanctions are starting to bite. Kong, fergusong is selling fine wine from his personal collection. There are a series of auctions. Ferguson. Holding a midterm Business Strategy briefing. They took a massive hit, following the profits that forecast of a loss. A forecast of a loss. Football at the end of the week. And athletico. It is the first time that the teams have appeared. Theng headlines with tablets and homegrown devices. They