China. At thes take a look numbers as we begin this monday session. Stocks are rising. A bit of a rebound on the regional benchmark. The msci regime asiapacific, rebounding from a twomonth low. Optimism creeping back up. We have u. S. Futures rising. Emergingmarket currencies rising. This is from geopolitical risk taken out of the market. We are monitoring the events in the middle east and iraq. Lets take a look at what is happening as singapore and malaysia begin. You are seeing about 4 10 of 1 . Malaysian airlines, back trading today. Shares were suspended friday after struggling with losses for years now. Haslinda amin is looking at all of this. Airlines, a huge task in front of it. Absolutely. The shares are expected to trade higher this morning on the back of that announcement. Start. Llion buyback to it will be a challenge given that Malaysian Airlines has had two huge blows to its image, backtoback disasters. Even the Prime Minister said so. He said, piecemeal changes will not work. It requires an overhaul. Details will be released by the end of the month. Take a look at the shares. Currently, the stock is trading higher by about 8 , but year to lower by about 20 . Date, khazanah will pay shareholders a 13 premium for the buyback. Dont hope for a higher offer. Maybank says secondquarter results will be awful. Analysts have a sell call. Enough said. What are people telling you about what this airline would for iske after a revamp, it just too early to tell . Expect it to be leaner with the cost cuts. Malaysian airlines will fly to fewer destinations. It will likely get rid of its unprofitable routes could unprofitable routes. With airout competing asia. All Asia Airlines will not make that a priority. New you can expect his executives, new management, new leadership. Whether the measures are enough, the jury is still out. Some are skeptical. They say they need to look closely into their business model, what it wants to achieve in the longterm. They are not doing that. There have been successful restructuring stories. Japan airlines is a case in point. Bankruptcy in 2010, now back and profit. Swissair went bust in 2002. Now in the money with the new owner. Hopefully Malaysia Airlines shares that success story. All asian up by about 8 right now. Malaysian airlines up by about 8 right now. We are going to look at treasury wines. An unnamed private equity group matched the 5. 20 per share offer made by kkr. Analysts say there may be now a bidding war. Ibm says it has come up with the way computer chips can think like human beings. Engineers have developed a chip that is modeled on the brain. They say it is faster and more Energy Efficient and could help computer sense their surroundings and multitask. It hasnt said when the chips will be available but claims the technology could transform the processor industry. Alibabasts ipo, lifting all ships. Companies rallying after alibaba reported strong results in june. Having a look at chinese american depository receipts, it includes these companies. Alibabas ipo is expected to be held in september. Alibaba wasnt quite so for softbank in the last quarter. 68 , softbankll owning a stake in ali baba, and the company took a charge on the investment amounting to 600 million. Aboutare price is down by two thirds of 1 . On aagain, china relied tried and tested tool to spur growth. Were talking about credit. To askng is, im going david this, how effective this is. Thing we have seen not only from china, but from different economies. It is the efficacy of Monetary Policy and its limits. In chinas case, we have started to see that. For every one dollar of new ofdit for the first half 2014, you are seeing an extra . 20 of gdp. If you and to stimulate 1 trillion, you have to put up 5 trillion. If you compare that to 20122013 , the comparable growth in credit give you an additional . 29, and compared to 2007, that was north of . 80. We come up with the china monetary conditions index. We put together data from about 10 years. Three factors go into this. You look at loan growth, real Interest Rates, and the Real Effective Exchange rates. It tells you what the relationship basically is between the extension of credit or debt and how this affects the fundamentals of the economy. Is the are talking about right most part of the chart you are seeing. You see little bit of a bump up. It shows the fastest pace of loosening Monetary Policy number two years. You also have the big spike up they basically lent their way out of the Global Financial crisis to prevent things from getting worse. What the chart is saying, yes, it has worked, and the efficacies may be coming down a bit. Over the next two or three or four years, they cant go back to this old fool. Growth will obviously have to come from reforms, and they are walking a bit of a tough line at this point. Theyve got room to ease with the data coming out. A benign inflation. That was something over the weekend weve been discussing. The inflation data, 2. 3 , still below 3. 5 . We have been hovering about 2 two. 5 for the most part of the last three or four months. If you single out where the most inflationary pressures coming from, and there is a table that shows that, it is actually food inflation. 3. 6 . Energystrip out food and , cpi is basically 1. 7 . Lets look at the producer prices, something that will affect sentiment. Markets open up in about 20 minutes from now. It is showing deflation. It brings the street of monthly declines the street of monthly declines one economist we speak to frequently, he says perhaps the pressure on the central bank is not so much to spur growth but again to keep the borrowing costs quite low, one of which is the index we have. Weve got to get you back to the market action. Open in 20 hong kong minutes from now. Lets have a look at what is going on right now. Look at this rising asiapacific at the moment. Stocks are rising across the region. Dipping geopolitical tensions, laura lee is the prospect of it, and we see that filtering through to the currency markets. Dollaryen, you are seeing the yen lower, this on prospects of the market believing that geopolitical tensions in the middle east are improving. Militants onl and the gaza strip agreeing to an egyptian proposal for a 72howard truce. We will follow that and the latest developments in iraq. Emergingmarket currencies are advancing today. The korean won and malaysian ringgit. About 3 10 of 1 for the ringgit. Tell you about some stock movers we are following today. Airlines, look at this, down about 4 . The stock has tumbled in recent days. The sun reports the carrier will vacate narita airport, vacate its operations. They had canceled that contract for six airbus aircraft. Japanese wafer maker, the silicon wafer maker for the semiconductor industry. Shares are down because its profitand operating forecasts fell below analyst estimates. Rich stone tire in focus, sids 6 10 of 1 . It has raised its fullyear net and operating profit forecast. The stock is not seen in advance. Another star performer. About youxt have indeed sk telecom, down about 2 , continuing that decline. Some of theck on other stories making headlines around the world. Israel and hamas have agreed to a new ceasefire, clearing the way for more talks on ending the fighting that hissing the deaths of more than 2000 people. The truce took effect at midnight preceded by rocket fire. Israel says 30 missiles were fired ahead of the truce. Hamas once the blockade to be start any longterm agreements. Meanwhile, food and water is being dropped to thousands of people stranded in the mountains of northern iraq. The operation was launched in tandem with u. S. Air strikes against islamic militants who have seized large parts of the region. It is thought about 100,000 people from the yazidi minority when sinjar fell. The fighters warned the sunni or faceconvert to islam death. Prime minister is facing a power struggle with the new president. Named himself interior and defense minister in iraqs new parliament. Next, stocks and age were on the slide last week in asia were on the slide last week. A good day today. We will have a look at what is expected over the next five days. Just checking on some stories on our radar for you through the course of the next five trading days. With its instance out latest gdp release. Secondquarter numbers out on wednesday expected to have shown an economy shrinking following that sales tax hike in april. Analysts are predicting a shrinking of 7. 1 through the three months through the economy grew 6. 7 in the first quarter. On wednesday, Quarterly Earnings out of . 10, asias Biggest Internet Companies seeing its stock surge. A 50 rise in profit sales. The stock has been up more than one third. You can see a lack of margin decompression. Pope francis kicks off a fiveday visit to south korea. Of all be the first visit pontiff to visit asia in over a decade. He says he wants to shore up catholicism in this part of the world. Mark and the anniversary of the end of world war ii, Prime Minister shinzo abe is expected to not attend a shrine ceremony in designs to not worsen strained ties with china. He wants to the summit with xi jinping in november. Lets have a look at what we can expect for what Investor Sentiment is looking like right now. Joining us from singapore is an equity strategist. Thank you for joining us. Indeed, couple of brief rough weeks. Are we going to stop the rout . Helpedmarket hasnt been by the geopolitical tensions in russia and ukraine. Asians point in time, how markets and the Global Markets develop depends on the developments in russia and ukraine. We have seen over the last couple of weeks the tensions arising. Russia has put troops on the border of ukraine. There could be a possibility that Russian Troops would cost would cross the border. That would probably worsen sentiments for their. In the short time, we see more downside corrections for asian equities. How much of this is good to be dictated to you by fundamentals . You can point to the geological story, but even when we saw the downing of mh 17, we had a weekly advance. They shrugged it off. How earnings, and how is earnings momentum . At this point in time, we see Earnings Growth in asia to be about 12 this year. It has been a mixed earnings season so far. In singapore, we have seen earnings come in line with expectations. Elsewhere, we have seen earnings disappointments. Earningsia, we saw downgraded about 2. 8 . In hong kong and china where the earnings season is just getting started, we dont see a huge earnings disappointment, especially the chinese banks where the bar has been set quite low. We could see earnings, the casino stocks, as well as the consumer stocks. One company i just mentioned ncent. What are the sectors that are probably looking expensive . Do we have cheap valuations still . The point is, they remain cheap, but are they over the worst . Are you seeing a nascent bull market perhaps in china after recent rises . Sure. Referring to your internet sector, its an expensive sector. We are still bullish on china during this year. We have seen markets rising. Despite the recent rally, chinese equity markets are still among the cheapest in the world. We have seen an improvement in economic growth. We have seen improving pmi. We have seen a lot of targeted measures this time around. We see a finetuning of Monetary Policy. October, the Hong Kongshanghai mutual market access. That will be supporting chinese equities. We see a 20 upside from here. Lets just kick it out to one equity market, which is also an under performer, and we are talking about tokyo. Gdp data is expected to be a pretty horrible number given the sales tax hike, but there is an anomaly and these and the first and Second Quarters. If we get weak data, which we are expecting, is it already priced in in your view . To some extent, it is already priced in. Looking at 1. 4 gdp growth this year. Japanese equities, we have been positive. We see quite a bit of value way. A bit of value. On relative terms, trading at a discount to the rest of your developed markets. We do see a resumption in yen weakness coming forward. We see the dollaryen at about 105. That is going to help the nikkei 225. It is going to create quite a bit of demand for japanese local equities to a tune of about ¥11 trillion, approximately 4 of the nikkei 225 market cap. Jason, great talking to you. Have a splendid week. Weve got to take a break, but on the other side, we are having a look at how to take matters to new heights. Taking a tour of the five tallest buildings in the world. Just minutes away from the start of trading here and in shanghai. This is a look at futures. Up 8 10 ofet ended 1 . Positivity across the board. Lets take a look at a bit more detail as to what is happening. If you want to sell shanghai shares through the Hong Kong Exchange link, you need to set your alarm. The Hong Kong Exchange its shares need to be transferred before 7 30 a. M. It is to abouts the exchanges to settle trades per mainland rules. India, thatnk of income up for the first time in six quarters. Of 38 in this instance. The state bank has the worst bad loan ratio among its peers. The roadshow is improving, and growth is improving. India is getting its First Real Estate Investment trust. Property to boost development by channel investment into the sector. Regulators are approving the creation of rates of the weekend. No word on when the first of these investments will be up and running. How big is big . That is the question for todays ranks as we have a look at todays tallest and most imposing buildings. Lets tell you what we have coming up. We have a relationship that turned sour. We are going to be looking at why toyota and tesla are heading in their separate. Plus, does the open in hong kong. We have shanghai coming. It asiapacific equities well supported. Rally thising at a week after a couple of weeks of declines. You are watching on the move. Lex taking off a big jump from Malaysian Airlines. After receiving a competing taker. It is a rebound across the Asian Pacific heritage stocks are rising after two straight weekly declines. The stick look at this spat between singapore and malaysia. Engaged in a titfortat round that could cost vehicles traveling between the two countries a lot more. Haslinda, tell me something. Quacks quacks malaysia will raise its own charges on the causeway, no specified amount. If you are driving a malaysian car coming into singapore, expect to pay as much as 20 in additional charges for a oneday roundtrip. You will probably grin and bear it if you just make occasional trips, but if you are commuting every single day, that will suddenly add up. Obviously, singapore businesses employing malaysian workers will get hit. Salaries will have to be raised. If youre wondering, more than 15 million malaysians crossed the border to singapore for work every year. That is according to estimates from barclays. This additional levy will likely work against singapore, where aey are already having crunch. Uacks of course, gives idea of some perspective. Relationsin bilateral , you can call it that. The two are very close neighbors. Singapore was part of malaysia or mother what was expelled in 1965. Relations have often been likened to sibling rivalry. In recent years, ties have improved. The Prime Minister from both resolved the railway land issue, a thorn in relations for decades. This spat could mark a turn. Relations have always been tested. Issues like water, land reclamation, the relocation of the customs immigration complex. In the end, both sides always adopt a pragmatic approach. Theres a lot to lose. Both are very close neighbors. Thank you. This latest row between malaysia and the city state. Lets go to corporate headlines. Bank earnings falling short of estimates. The company taking a charge on 600 touch ofnt of 620 million. They lured customers with discounts. Ibm says it has come up with a way that computer chips can think like human beings. Engine. Engineers have designed a chip is modeled after human brain. It can actually help computers since the surroundings and multitask. Ibm has not said when the chips will be available. The technology could transform the processor industry. Amazon has blocked the free order option for disney dvds including tax in america. Amazon has used this tactic with anyer bros. And the dispute over lowering the price. Four years ago, elon musk for a ride inys his new set of wheels. The relationship went sour and analysts say we are unlikely to see another test. We have the inside line on the story. How did this partnership come about in the first place, before we have a look at what went . Rong yet drive in theed a roadster, the sports car that tesla had in its lineup at the time. It was not making the model as just yet. It was unclear as to whether or not tesla would end up a Successful Company as they have turned out to be up to this point, or if they would go the way of fisker and have trouble like every other entrance to the Automotive Industry has had since chrysler started up. It was a. Where toyota was struggling with recalls, where they were closing a plant in california that they operated with General Motors for some time. They were looking for somebody to take over that plant and tesla showed interest. That was really where it all started. They decide from there to build a rav4 electric vehicle. Specificabout the efforts is between engineering teams . What is the deal . Mentioned that the relationship to go south. The problem was, you step back and look at these two companies and they really operate like night and day. Tesla is a fastmoving company that really engineers as they go along. They make changes on the fly and they have done updates to the air werewe over the you flash an update to the car. Does not operate that way. They have obviously been an incredibly Successful Company, but they are really not a company known for being fastmoving. They are deliberate and careful and they make decisions for the longterm. The specific problems they have had were part