The governor coming out today saying that markets are too riskaverse to reflect true fundamentals. Investors are listening to that or not remains to be seen. Extending australia that bear market territory. We haveand at levels not seen since october last year. Korea down 1 . , extending those falls we saw yesterday. One bright spot has been that gold price, on the verge of a bull market. Lets have a look at some of the gold players, particularly in hong kong. Asian mining up by 5 , but it had been up by as much as 11 today. Gain in best fourday years. Price has come off a little in asian trade today after that they can rally yesterday, where it was up right over 4 . There has been a lot of focus on the yen, continuing to strengthen. Rishaad thank you. The focus is intensifying on ank. Ns central bri despite efforts, the japanese economy still cant escape a roller coaster cycle of expansion and contraction. We have the details. Years and record monetary stimulus, japan faces the daunting possibility of going back to square one. The yen seeing is biggest twoweek rally since the 1998 Asian Financial crisis. Policymakers are starting to act, at least fervently, in order to stop the surge. That thece minister government will respond to markets appropriately if needed. Up movesaid that risk had spread excessively. Range of calls to banks with questions on whether they plan to buy more yen. The boj has not intervened in currency markets since 2011, but an analyst says that intervention to defend a specific level would not go well with other countries, managing volatility could be, so the boj may have a case for a small amount of intervention. Of negative rates will eventually spread to prices and the real economy. The economy has only seesawed. Forecast for fourthquarter growth is dim, and the economy is expected to have shrunk and annualized to 0. 7 . Since 2013, we have seen the seven quarters, then shrink in the remaining four. The question is, what is next . Corporations dont seem too thrilled about the future. Panasonic,ding hitachi, they have now cut the profit forecast for the year. Economists have raised the estimates for the likelihood that japan could fall into another recession in the next 12 months to the highest level since 2012. Much. D thank you very lets have a look at oil, west texas rebounding. We had a tumble to the lowest level in more than 12 years. We have a look at these ups and downs. What it comes down to is shrinking profits. Some of the Oil Refineries in the u. S. Pulling back, and that ,as added to the supply glut pushing the price down to as low as 26 a barrel for march delivery. Wti rebounding back at little bit now. ,mong the energy refiners gasoline suppliers in the midwest at the highest level since 1993. Refining costs have also dropped. Barrel. S 2. 14 a midwest gasoline supplies are ever increasing. Marginsnent refining are falling. More cuts, more crude going to storage. There is a record amount of inventory. However, as prices are quite volatile, west texas rebounding of little bit, we are looking at action from opec. Uae andminister for the an arabic language interview on sky news said everyone is ready to cooperate, and also said prices are not appropriate. We reported that been this way less oil minister has met with saudi arabias oil minister to push the effort to cut production. Manus whaler has venezuela has been hit hard by the falling oil prices. It has not been as resilient as saudi arabia. Rishaad thanks. We are looking at the conundrum facing the governor of australias central bank, among some of the other stories watching today. Thats right. Estrella still has the flexibility australia still has the flexibility to ease policy provided it helps the economy. The key question now is whether this recent bounce in financial turbulence will have a material negative affect, both in a stray and globally. Stevens was speaking in his semi annual policy testimony. To bes he does not expect able to answer that question for some time. He also addressed china slowdown. He said the recent anxiety we have seen among investors is uncertainty over the intentions of chinese policymakers and also their ability to carry off the necessary economic transition for the country. The bank of Australia HoldingInterest Rates at that record low of 2 . The Global Outlook is starting to provide a contrast to the pickup in the economy. Asia,ms of earnings in coming in as a mixed bag. Atrdquarter revenue southeast asias largest telik, largest 32 Point Telecom operator at 3. 2 billion. If you look at it in constant currency, that would have risen 6 . That acquisition also weighed on the quarter. Fullyearg its outlook, expecting revenue in singapore to grow in the low single digits. Of australian telco subsidiary so profit rise over 9 . A dual listing for saudi aramco in return for extra investment. It along sideed Saudi Exchange in return for investments. That is according to people familiar with the matter. The proposal was made earlier this year, but no decision has been taken. This could make it one of the Biggest Companies in the world. That people who are familiar with the matter that thatronco is considering that are bronco is considering could raise 5 billion to 10 billion. Thats made it clear reserves are not for sale. 16 of chinas foreign oil, its largest supplier in 2014. The chinese president visited riyadh last month. Rishaad well take a break and come back. India dismissing wild claims about the countrys banking system. Mumbai toding over to find out what he is saying to reassure investors. The yen stores. Sewers. Ars. Oresd havead japanese officials stepped up expressions of concerns about the soaring yen as it threats to cut exports and profits overseas. Tokyo is wisdom tree japan chief executive. Havethe soaring yen, we things down 5 today. Have the wheels finally come off . Look, we have clearly a big crash test for abenomics going on here. This comes at a time when global markets, this is not just risk but fear on, fear that policy makers have become impotent and cannot act anymore, and that is making markets very attractive for anybody who is a fundamental investor. Rishaad let me tell you something. Lines saying negative Interest Rates wont have a large effect on peoples lives. Saying that the negative rate is clearly having an effect. What kind of affect is he talking about . , the reality is that you do have longterm interest , comingorrowing rates down strongly, so there are spillover effects, longterm. Markets right now, the problem is that the earnings estimates are still too high. The consensus is looking for earnings to grow by about 10 over the next 12 months, with dollaryen trading around 1. 12. Basically corporate profits and 10 by between 5 over the next 12 months, that is the right out look and what the market is discounting now. Havead corporate earnings not translated into higher wages, which is something that abenomics was about, one could argue. Look, the whole point about you going from rising profits, porate sector doing better, you know, we were just about at the Takeoff Point when basically the Global Crisis hit. Japan one mistake the government made is that they are debating the tax increase for 2017 in parliament right now , rather than focusing on the good stuff they are doing with the cut and corporate taxes and supplementary budget for 2016. All we are discussing is the consumption tax hike in 2000 17 gaza markets look at that and say we will have a slowdown. Rishaad it is a political football, is it not, that sales tax hike . Do you think it would be totally inappropriate to be instituting it . Want to beain, you pragmatic. The hope was that the Prime Minister and his team were pragmatists, not ideologues. ,apan has a big budget deficit therefore you must hike taxes at all costs, absolutely not. Know thet he as we japanese economy, whether the consumer side, businessinvestment spending side, still fragile, and now that you have this global turmoil, definitely going to fall back into deflation, and discussing a tax increase at that point in time is absurd. Ok. Aad lets talk about the investment horizon in japan, the steep falls in equity markets, reflected across the world right now. You are talking about new valuation realities. What are you referring to here . Look, consensus expectations are for earnings to grow by about 10 over the next 12 months. That is unrealistic given the strength in the yen and the slowdown in the domestic economy and in the Global Economy that we are seeing. I reckon that with sales growth slowing from 3 last year to thend 2 over 2016, and dollaryen averaging around 1. 12, you end up with corporate profits declining by 10 , and that is exactly what the market discounting machine is trying to come to grips with now. Rishaad how close is it to actually coming to that realization . It is interesting. I actually think that we are now entering overshoot territory. Markets,r on in global and basically japan is being hit , where this fear on everybody just focuses on their home currency. You have japanese institutional managers repatriating their overseas assets because the word about the united states, china, europe, so people want to stay home, so you have a double whammy here. Equityk at the japanese markets, basically trading now close to record low they wish and parameters, even if you assume earnings are going to be declining over the next 12 months, so slowly but surely one should start to tip into the market. Yes, but it is time to buy is what youre suggesting, and you also say we are in overshoot territory, markets tend to overshoot, but give us an idea of where we are now with japan itself. How much work has to be done fiscally rather than monetarily . To havenk that you need the coordination. You dont have to have the technocrats on the financial, physical side, pushing in one direction, while the bank of japan clearly wants to be proactive, once to be a ahead of the game, did introduce a big surprise with negative Interest Rates. Policy needs to be corrugated is thend that Prime Minister needs to show his leadership on the economy. It has been a while since we heard Prime Minister of the the fact thatbout economics is a top priority. That is what needs to happen sooner rather than later. Rishaad great talking to you. Wisdom tree japan chief executive there. The stories making headlines. Says world powers have agreed to a nationwide ceasefire in syria next week. Sergeipoke after meeting lavrov in munich. Its not clear whether all groups in the conflict will agree to a truce or how long it will last. Kerry said a unanimous decision was made to excel or break to accelerate the supply of aid immediately. Dozens of people have appeared in court in hong kong over violent protests at lunar new year. 37 suspects accused of taking part in a riot, a rare charge that carries a sentence of 10 years in prison. Violence erupted when police cracked down in calderon. Police fired warning shots. One officer was left unconscious in the fighting. And miramonte leader will get Police Protection for the first time. A man posted an online death threat and a picture of himself with an automatic rifle. He warned he would kill her if she attempted to change the rules. There are reports that she has been discussing the presidency with the head of the army. Over 2000 400 journalists in 150 bureaus around the journal world, this is bloomberg news. Comead coming out indonesia, 7 growth target. He talks exclusively to bloomberg. That is next. Rishaad trending business. I am rishaad salamat. ,rying to revive the economy speaking exclusively with the president jokowi, live from jakarta. What did he have to say about this goal 47 growth . 7 growth . It is ambitious. That he has had a rough start to his presidency come up in controversy all investment policies, squabbles among his ministries, he says he has put in place the right moves. His cutting of red tape. Can get your business started in two weeks instead of 200 days. He has also boosted infrastructure. The boost has an effect on growth. Growth picked up to more than 5 in the fourth quarter, exceeding estimates by economists. Though he is optimistic about infrastructure, there are , more than 40 projects out of the 300 slated have been delayed, and this a rail project, a highspeed project, with china. Questioning if that 7 target can be achieved. We caught up with him and south he was inspecting a toll road project. This is what he had to say. I still have four years to achieve that. If infrastructure is developed, manufacturing growing, and tourism promoted well, then the growth will be good by the fourth or fifth year. Rishaad this all begs the question, what is he doing to attract foreign investment. You know what, the government opened up 49 sectors just yesterday to foreign investment. Storage, toll road projects, also the retail sector, but when you speak to investors, they say the move is not far enough, not wide enough. They are still looking for more from the government. When pose that question to jokowi, he says there will be other moves. Take a listen. This is just a first round. It will be a second and a third. You will see the result of each step. For now, 29 sectors will be open to foreign investors. Challenges remain for the president. Rishaad thanks. For us. In jakarta coming up next, down, up, and down again, why some are saying japans economy really is a roller coaster. Rishaad looking at her top stories, Global Equity bear market getting worse, anxiety over the World Economy and centralbank ability to spur growth. The nikkei plunging more than 5 . The japanese heading for the worst week since 2008 the hang seng lower by 15 this year. Intensifying speculation that the bank of japan may intervene to weaken the currency. Recent movements and the yen havean rough the yen then rough. The uae minister saying that oprah opec is ready cooperate on output. Shipments are set to rise by 410,000 barrels a day this month. Toanese traders heading lunch after 5 declines in the morning session. We have the latest from what is going on out there. It is not great. H frank fored lunc those traders in japan. Extending those losses, the worst week since 2008. Big falls coming through. Generally you can see there has been a lot of heavy selling. Steelmakers under pressure, comingcompanies under pressure as well. Hsbc extending sixyear declines. Some pickup coming through the casinos. Have wynn resorts coming through with its numbers. Shares trading higher. Across the rest of the region, apart from a pickup in malaysia and singapore after the selloff yesterday, it is widespread selling. This global bear market intensifying. That their extending market territory reached earlier this week. New zealand at levels we have not seen since october. A lot of pressure on equities today. Rishaad thank you very much. Getting back to our top story. Pressure building in japan. Weve been hearing about stocks and how they continued to fall and the yen continues to soar ahead of the growth number on monday. Happened . What are people expecting happen in the last quarter of last year . We will know for sure when we get the gdp report on monday, but all the initial signs are really bad on exports, tumbling in december, slump particularly bad. Consumer spending was not great. Capital spending was not great. When you have an economy as dependent on exports as japan, and the rest of the world is struggling as much as it is, you dont stand a chance. Rishaad does this mean we will get more out of the boj, more stimulus, or for the negative Interest Rates or further negative Interest Rates . The governor has been in parliament all morning saying that he is ready to deploy more stimulus if it becomes necessary, that he wont hesitate to provide additional action, so it is becoming more and more possible given where markets are right now. Has come the Prime Minister haslso, the Prime Minister been a parliament speaking about the yen, so this is something all the policy makers and are watching closely. That yenwhat about strength this quarter . How is it likely to play out . I think this is something that exporters are really worried about her it you have to remember that this has not been a slow, gradual strengthening. It has happened all of a sudden over the last two weeks, and it is not something that companies have been planning for, so that is what is scaring investors and potentially destabilizing. Rishaad thank you very much indeed. Lets take a look at china and possible entry into the msci global indices. That move could be in jeopardy if investors lose confidence in how policymakers handle the market volatility that we have been seeing. We look at the subjective vetting process. That is a big if. That what theyre basically saying is that it is not necessary the market volatility or the worsening slowdown in china that will have a bearing on the assessment for nas entry into in this into msci. What could influence that is how china handles or intervenes or responds to policy to the slow down into the market turmoil that we have seen. A number ofady seen fun president moves by authorities in china, including stake sales by major illtimed Circuit Breaker they introduced at the beginning of the year, two days in a row of it tripping within minutes, and then they with that Circuit Breaker, sending shockwaves or nonconfidence. The shift in currency policy as well, devaluing in august, then defending it to the hilt since then. Rishaad what about these comments you should me earlier . Sebastian from the msci saying that if International Investors come to us and say the way the government has acted is completely crazy and we dont want that, then maybe we can consider negative. Rishaad maybe consider. May consider a negative for the classification. And then he hedged that statement in the next quote. I enlarge the changes we are seeing in china with the policies and set intervention are clearly going in the right direction and we are pleased to see them. From our perspective for the time being, perhaps that is the operative sentence, nothing has changed. ,ishaad if nothing has changed i think its april you were telling me when they make this decision. Again actively consulting investors in early april. Today, he also says that they have not received any negative input yet on china from those