Also, the Straits Times index, as well, and lets check in with Malaysia Airlines stock. I think that is up, as well, a gain, but overall, lets just get a feeling of what is going on market wise with david. Thanks, and lets keep in that asia is used to waking up after the u. S. Session. And korea,ng on, japan, and australia, new zealand, a mixed picture, needed 225 getting a lift. The japanese yen is back over 104. The last i checked for the japanese currency, the weakest level since january, so lets see if we do see a continuation of the breakout we have seen starting in mid august for the japanese currency. Things you want to see. Inflation data, the bank releasing minutes from the latest policy meeting, and that is at 3 00 p. M. Hong kong singapore time, and we will wait for the markets to really get wound up. Are watchingt we very closely is the one in australia. And this is simply because the rba decision that comes out, in about 20, 20 five minutes, and we have the current account deficit. 14 billion. Send iteantime, i will back to you. Ok, malaysian airlines, stocks on the way up. On friday on hold after its sixth consecutive quarterly loss. It is cutting thousands of jobs in the hope of returning to profit. Re are several key areas several carriers. Ok. Well, they have got it all to do, havent they . The offer price of 27, i suppose, but are there any precedents for that . Aviation is a tough business. The business is very tough. The airlines are constantly trying to keep revenues and cost in line, and it is tough to make a profit. Malaysian airlines, like others, has a need to restructure. They have come up with a plan that is radical, ambitious. Japan airlines went through a similar very substantial restructuring, and it is now rejuvenated. And the american carriers we were talking about earlier, setting up thanks for malaysia to do this. Running,was a carry on and there was a similar mechanism in japan. And from a passenger point of view, operating without interruption. The thing is here, two disasters in a year, how do you come back from that . That is the whole point. Planes are extraordinarily safe, but they are traumatic for all concerned, and malaysia suffered of two hime fx enormously tragic events, each of which is positive, but ines do have faith, two questions. How long should this take . And what should Malaysia Airlines look like after it . I think they are getting themselves a six month timetable for the new company, and that will involve renegotiating contracts with staff, tough conversations with suppliers and thin on fears, and they are probably looking at the debt to equity, so that is a process that could take several months, and i think by the middle of they would migrate, but the structure continues. Needed to do this probably before they had these disasters. Yes, it was on the agenda already. A radical restructuring. Worldare in a part of the which is competitive. Well, we talk a lot about overcapacity, and it is certainly tough to make a profit, certainly for lowcost carriers. You see the results right now. We are seeing growth. Profits are hard to come by. Overall, i do not think there is a lot of excess capacity. Ofonly takes a little bit excess capacity to take some of that pricing power, and that is what undermines margins. So they need to look at their long whole Route Network as a whole also . The fleet is in good shape. They have got some good equipment. And the use to focus on the and they will maintain a balance. Importantly, the productivity. That is the trick, isnt it, how you cannot actually reduce the cost base without actually cannibalizing your product. Yes, and they have awardwinning cabin service, so they need to cape that keep that and maintain revenue. So it is a balancing act. They need to improve productivity and get the cost down. It is so much more to it go that way and build up. Going down, isnt it . Yes, you can grow in scale. Challenging in other parts of the world. The face of the competition coming from the likes of easyjet and ryanair. Yes, and there is competition for the middle east, and this is part of the dynamic. Is universal across the industry. Thank you so much for coming. With asiapacific airlines. The of course, one of things we have been watching out for is what is going on with the foreign exchanges, and we look at the euro under pressure. This is in focus as we have that reserve Rate Decision. Lets find out more from david. This is just about at the level of about 4 00 a. M. Is how ior a catalyst would describe it. And would that be the rba decision . It is with just about every single economist. They do expect them not to leave things at 2. 5 . There is the current account deficit. Expectations in the forecast, almost tripling. From the previous period, and we are talking 14 billion. We continue to watch that. And the dollar yen, we are closer to 1450. And this is a session over in tokyo right now. What do we have . At take a look, and it is its weakest levels since the start of the year. 105. 30. January 1, we have seen a breakout. Will it continue . And we had manufacturing data, with the exception of greece and france, and there is a little bit of expansion. It is just about every country in the eurozone seeing a lot of pressure. And this is what is being priced in. 131. 27. And this is 2013. We break below this level, and we go towards 128 if you look at some of these tentacles, and very quickly, lets just end with this currency. Seven. 31. Ernie and back to you. 37 point 31. Somee are having a look at of these enormous deals on the table. Absolutely enormous, it would make sense that they would look east, with Options Limited in terms of dealing with the United States as well as the eu, and lets not forget, gazprom supplies about one third of the gas needs, and it is not directly affected by sanctions, but the secondbiggest company is doing a huge deal. Basically, this is russia asking china to join the secondlargest oil project. It is a very big deal, 440,000 barrels per day. And it is about 4 of china ok, lets clarify this. This is not part of the deal they have been able to sign. Giant, thisoil pipeline is historic. And a key part of the kremlin strategy in terms of energy, it shows increasing attempts for the western alliances, and to focus more on the east, this part of the world. Thank you. Ok, still underway, stuck in the slow lane. Car sales in japan falling to their lowest level in three years. We will find out why. Is back in two minutes. With on theck with me, rishaad salamat. More than 835 Million Dollars, and they did it just weeks before the bank bailout. Project, andoil they offloaded some, as well, goldman here declining to comment. And an investment worth billions of dollars. More than 170 million coal mining licenses after the process was illegal. It may be some relief. The government is recommending they arebout 40, but not close to starting production. Needing aated stocks boost. Nearly six point 5 . The bank of japan says another sales tax rise, and Prime Minister shinzo abe may go ahead with this. Clearcut asnot be they have cut spending. And, indeed, the higher sales tax has taken another bite out of the economy. Domestic sales tumbling to threeyear lows. Well find out when we get to our Bloomberg News reporter in tokyo. Talk to me about this. What led to it . Was it all down to the sales tax hike . Hi. You would think five months removed from the sales tax increase that at this point, maybe we would be seeing a bit of an upturn, that we would have suffered some payback in the immediate months after this increase, and you had a number of customers who were able to get their orders in at the very last minute, and those orders did not necessarily translate immediately to sales the way the dealers count them, so you had customers getting in and really sort of building an order backlog that, in a sense padded response for the first months, and this is when the tax increase went into effect. So you actually had some fairly decent months with some small decreases, even a small gain in the immediate months following the tax increase, and here we are in september, and we are looking back at august, so we had the steepest rocks since the tax increase, 9. 1 in august. The worst result in three years, and there is very little reason to look at this and see much of anything to be optimistic about. It was negative almost across forboard, a 12 drop toyota, 15 decline for nissan, and the sort of loan piece of good news, if you are at honda, there was a gain their, really driven by the new small car, which has been selling quite well. Yes, 11 , and the thing is, can we expect any improvement when we look out over the next few months . What do you think of that . Backlog, soed that we dont have that anymore. The other reason to be looking , the japanesers Automotive Dealer Association is saying they are looking at going and this is looking like it is continuing to be alsoenging, and you are coming up in a. Timeme in a period of where it is difficult, and we saw the late last year the pull ahead, where customers were saying, you know what . Car,w i am going to buy a and i will buy it now and pay the 5 sales tax rather than 8 , so it is tougher for the andstry, for the near medium term. Thanks a lot for that. About the declining car sales in the country. Expectations, and a landslide victory. Now, one hundred days, assessing performance so far. \ lets check on some of the stories making headlines around the world, with ukraine , a crisis escalating outofcontrol, the west accusing russia of stoking the fighting. It is something they have denied. Proposed youn has taunt me for parts of ukraine. And tensions remain high in the pakistan capital of islam abroad after clashes between police and demonstrators in the socalled red zone, and earlier, antigovernment protesters stormed a state television, forcing them off the air, and they are calling on the Prime Minister to resign, accusing him of rigging last years election, and there are more cases of and it is the most cases of the diseases since the 1940s, and 19 people have been confirmed with the illness, and most of the software is were at a park in tokyo, and shares of a pesticide maker harley at a fouryear high. Is the iranian leader calling for clerics to be more tolerant of the internet, saying they cannot shut out the modern world. Has faced resistance from hardliners. Earlier this year, there were issues with people dancing to a song called happy. And lets have a look at indian futures. We have at the moment, a move to the downside in singapore on that futures contract, just a racing some of the gains we saw, with the nifty, up about 9 10 of 1 , and the Prime Minister marks 100 days in office there, so lets find out what the report card looks like. Wanting us is our Bloomberg View asia editor. What does this report card of yours have to say . Have the initial hopes been for filled . Well, it is a mixed record so far. Has clearly changed the democracy and has shaken up the ranks, making officials to show up on time and stay late, cutting out long lunches, and so on, and this kind of thing will have an impact over the longer term, but his supporters voted him into office with huge expectations and huge hopes for Major Economic reforms, and there has been no real sign of those yet. For them,preparing but his political mandate will never be stronger than it is now, so it is a little worrisome that he has not moved faster on some of those things. Moment, in japan at the very, very close buddies with of theabe, and i think three followers that he has, he is one of them, so what does this trip look like at the moment . It is a symbolic and strategic victory for india and japan. Look countries are interested in not just reviving their economies, reviving their National Strength and pride and place in asia, particularly visavis china, so a lot of what you have heard coming out of the summit, it has been the body language, and there are hugs between the two leaders, as well as talking about defense operation and worries about expansionist tendencies, which soa code word for china, whether it results in actual deals with Japanese Companies in India Remains to be seen. They face the same challenges as anybody does in india. There is obviously chemistry between the two, because they have been compared one to the other. Any ideas about how he will govern here . I think it should be a bit of a warning message to modi. Abe came into office the same way modi did, talking about the same things, finally breaking the deadlock in the bureaucracy, and pushing through the reforms that everyone knew they needed for a long time, and more than one year on, there has been great difficulty with this third era of reforms, so he has resorted to talking more about nationalism and asserting japans strength in a Foreign Policy sense, and that is something that modi should be very wary of. You can get yourself into attest to, abe can with his shrinking ratings. Toall right, we have got take a break. And we are having a look at learning from the past. After the break, a look at the hurray into h the markets, and we will have all of the opening numbers for you. On the move is back in a couple of minutes. Samsung goes for its lowest close after reports of falling profits. Infiltrating the cloud. Attacked byrage hackers, and lessons learned. What jack takes away from his last trip into the markets. Kong andng to hong shanghai this monday morning. We will find out how the sentiment is going. Here is david in glass. Yes, with the japanese yen, we had a lot of stuff coming out, and remember this one. So we areat 104. 40, just about at the lowest level since very early this year, the first two days of january. I also want to point out the and 1459. Rkets, it comes to fixing the reference rate here, the lowest since june 5. That is the offshore, by the way, you are looking at. And samsung, this is pulling down markets. Now, a lot of things are happening today. Out, a inflation coming few tips and lower. August, and for does this give more room for the bank of korea to be able to get more meat in . When they do come out with the minutes about 3 00 p. M. , the latest policy meeting. 225, they have added on to and perhapsins, this has to deal with the japanese yen. And there we are, asiapacific a little bit underwater. We see a lot of these markets under pressure. And we will be getting this at any moment, the data, and this is again under pressure, about 87 u. S. Dollars per metric ton, but i will leave it there for now. Back to you. Some breaking news, and this is for july. Lets have a look at these numbers. We go over to sydney and paul allen. The current account, the balance of payments for the Second Quarter not quite as bad as has been expected. Analysts were expecting a deficit, and they got a 13. 7 billion deficit, but the numbers for the First Quarter were also revised downwards from the 5. 7 billion deficit, and that has been blown up to seven point 8 billion, so the picture is not really improving a great deal, but this number, you have to go all of the way back to the 1970s, so it is really a question of how bad is acceptable, and that exports are down, subtracting. 9 of gdp, so that is going to have some impact when we get our gdp figures. If we take a look at some of the other data, the building 2. 5 for thejuly, month, beating analyst estimates of a one point 9 gain, and also turning around with the 5. 9 incline at we had back in june. This is the year on year figure of the increase, which is Pretty Healthy really, especially when you consider that construction was one of the areas that the reserve bank of australia has identified, and this gets them back on track as the investment boom winds down. In that context, the rba is going to announce the cash rate later on today. No changes expected. It is supposed to stay at 2. 5 , according to all of the economist surveyed. Atthanks, and taking a look the Economic Data coming through with the rba decision on the cost of borrowing, we can get a look at the opening. Getting reaction to this also in sydney. David . Yes, some of the movement we are seeing across the aussie dollar, a little bit of a downward move, and perhaps this has to do not so much with the number that came up but also with a revision. What is key is a revision upward, and 93. 14. And it is really about dollar strength. We are seeing weakness in the dollar index, 83, and that takes us to the strongest level, going all of the way back to the summer. There are certainly some moving parts, geopolitics, a lot of data points. Now, a bunch of stocks we are watching, going over to the equity market, what we are seeing in the opening minutes, a big drop yesterday for the casinos, following what came out of the government, showing it is not really too good. Casino revenues down. At thee a look evaluations. August was her rent this. Stock is down 10 , more or less. And valuations could have been driven down to a longterm average. Goldman sachs just coming out, and they are cutting their price just 1 10 of 1 , and of course, sand china, down 25 , and this is back in may. What we have been watching is. Hat this could signal you may remember that jack ma, we saw a long decline. And this is very near records. The thing is, when he lists, this is the top of the market. This is at a high point right 2000,nd this is since march, and alibaba is coming to the market, and they slightly delayed it, but they are expected to kick off during the week of september 8, and then following september 18, price saying to happen, and then listing starts, and this is like a deja vu scenario. And they lost billions in market cap, so really, what people are concerned about, are they overpricing the stock, and our people having the wrong opinion . It is different this time, isnt it . They do have more commissions coming from the market, but then again, there are some issues and as fighting counterfeit compliance. Ory these are issues that alibaba will have to be fighting long time, and this is about pricing. Is below the discount a 22 , but then again, it is 150 billion valuation still at thatprice, so it is still valuation. Again . September 18. Those are the two. This is taking place further down the field. To the globalver finance forum that is taking place in kuala lumpur, and so far this is the lender. This is a bank that was established with a finance operation in 2010, and the chief executive joins us. Thank you for joining us. How big a mar