Silence and saying that there is no basis for the continuing depreciation. Assessing and not much abenomics, three years in, has the programs finally failed . You can let us know by following me on twitter and do not forget to include the. The chinese and hong kong markets get underway and singapore, taiwan, and malaysia and they remember thats. This is the past couple of would have the withgs of a recovery rally 1 in the open. Region,he rest of the it was the worst rout that we had seen. And a veryedible low different feature today. Andre seeing the gold gains and Energy Resources named in new zealand. It is a big gainer, in terms of delivery. Crude coming a little bit in this session. Mind the gains are in the u. S. And will carry through in asia. 22. A look at there is a rally ahead of now. The numbers are going well and and weexpecting exports are looking forward to the opening in 30 minutes or so. Say they have catchup to do to meet the rest of the markets. And it is ahead of the china opening. The efforts to say that there is no basis to send the yuan down further. What did joe say . In about 10 minutes time, we are seeing the comments. The article offered of a slew of reassurances that china is seeking stability in the markets and there is no basis for the continued depreciations and they said it is stable against a basket of currencies. The capital outflows are normal, outflows last year. They dismissed speculation and he said there is no need to worry about a decline. In a fewe watching minutes time with the onshore sawency appreciating and we the Chinese Markets were closed and offshore appreciated over that. Raise thelemma is to dollarday to match the dropped, undoing the dollar depreciation. Worsenrast, this could the Global Sentiment and the Global Confidence in the handling. Thank you. We will take a look at that later in the show. We want your opinions. Please tweet at us. The japanese economy expanded 1. 4 percentnk by tokyo. R more, here is from thenot break contraction and expansion. That is right. These were worse than expected and are the second contraction after they had revised the quarter up and the second was also a contraction. These were a Business Investment and the consumption was down, a big concern. See what thed to driver of the economy will be, even with record profits. Year numbers were for last forthe yen had appreciated the month and, with that, you start to think about companies and you see the market up on a sentiment with the bank of japan to do further easing and we will hear from the governor and we may get some indications of what comes next. Thank you. At what we areok watching today. Finally, a decision. They are keeping the headquarters in london and they posted does pointed to the legal complexnd handling international affairs. The importance of asia and said that they are looking at moving the headquarters to hong kong. Tax,he and issues of financial regulations, and the brexit. Ity of a they say they will look at the merger, if there is an extension of circumstances. Alibaba is now the fourth biggest shareholder in groupon. They purchased 33 million shares and the filing showed they were in onlinekes retailers and magic leap. They went public more than four years ago. The results the estimates last week given by the buyers. For sharp. In paper says they could buy they asked for a commitment to maintain staff levels. They are up against japan. Website, we are looking at the challenges and, coming up later, all of the action as the Chinese Markets return from the break and we look at the currency dilemmas. Outnext guest says to watch for statements from the bank of japan as the yen continues to strengthen. The Central Banks are in the headlines today. There is imminent Interest Rate ins on tuesday with a yield sovereign debts dropping the rate. Exports slumped the most and to seeonomists we spoke them the staying on old, after lowering the benchmarks. Signals that he is in a waiting mode. There is a chance they lower the a record lowh and of 1. 66 with in a year. The aussie Dollar Strengthens considerably. And, the bank of japan is discussing the market turmoil. The Deputy Governor says the rank is expanding assets purchases. There is talk of a coordinated response by policy makers. Finance ministers and central bankers gather next week. Joining us is the senior strategist. Good morning and thank you for joining us. There are rumors of a coordinated response. What does that mean . It is unlikely that we will see it, in terms of intervention. It is rare that you get Central Banks to agree on that, really. You have to go back to the support for the euro and it was haphazard, in terms of contribution. What we could expect is the thatment from policymakers volatility is something they are concerned about and they are giving some cover to the bank of japan to support the dollar yen of it is in the interests reducing volatility. Think spending, after a certain level, bodes well with countries. Could we see intervention to prevent more volatility . Andhat is what it would be divorcedave seen is from economic fundamentals and asset markets have not justified that. They have not collapse, in terms of equity. There is a structural stress and it would improve market and it seems to be a higher yield. Investment companies have been changing for a while. Why have we seen the yen surge and where did the Dollar Strength to go . Bed as been since the december meeting and they were cutting back aggressively mainst currency from the euro positions against the euro over the past couple of months. The markets are doubting the outlook and it is possible that just what we not see in the asset markets. Ratesare now seeing a what is your take on the income rate their and words you see it going . 6. 5. Other 6. 51. Yes. Wey had a weaker dollar and will get more of that in the the weaker dollar givess the decline and the u. S. Dollar a chance to recover with Interest Rates later in the year and it will andupward pressure on china you are talking about maybe higher there. Thanks a lot. Now, a story making headlines are the world is that taiwan has ended the search. Them were found in the Golden Dragon apartment complex that collapsed in the quake. The developer and two architects followingarrested, the accusations that quarters were cut. China is calling to formally end hostilities with north korea. The two sides remain at war. The head of the Committee Says that beijing is annoyed about the Nuclear Program and is concerned about american response. Security in the cells china sea is expected to be on the agenda as leaders meet over a. They stressed the need for navigation and filed the International Arbitration case and beijing refused to recognize or participates in the proceedings. Journalists,00 this is bloomberg news. Changing perceptions. We will look at what the indonesian president is doing with the Transpacific Partnership when trending business returns. Welcome back. Hadindonesian president has an up and down first year in office and struggle to impose his grip on politics. And hepublic spats enjoys the Approval Rating of 67 . Speaking exclusively to cause n, there are issues. We have egg Good Relationship with Political Parties and parliaments and there was no problem with the revision of the budget. The support for the government has been good. Did you underestimate the influence in the groups . In my opinion, it is about how you communicate and it is important to maintain Good Communications with parliament. We spoke to a trade minister about how the Transpacific Partnership affects plans to boost growth. We have made progress and have a long way to go. Markets that are in somet shape and there are experiencing contractions of 5 , hopefully, 5. 1 . Again, one thing at a time. You do not get there by teleporting and the president reassuresurer investors that we will modernize and simplify the rules and regulations to get them in line with International Best practices. The president expressed interest in joining the tpp. Stomach fighting Interest Groups . A lot of the protectionist from business elites. That they would have to execute one of the sharpest uturns in policy. I would say that we are 15 into this and what we have done is changed the mindset and the way the executive branch of the government thinks about the positioning and i think you can ask world bank and a lot of most experts who are the protectionist regimes. Change made measures to mindsets that that is wrong and. Hat we want to qualify that was the indonesian trade minister speaking to has Haslinda Amin. China return to the fray after the break. . Ill we see a selloff i will have the opening numbers after this, when trending business returns. Top stories trending, japanese stocks are surging despite weaker than expected gdp. The economy shrank an annualized 1. 4 , more than previous estimates. Prime minister shinzo abe has been trying to boost inflation by encouraging consumption by private spending affected the economy. The pdr ca governor has broken his silence on the yuan and says there is no basis for its continued depreciation. Capital outflows are normal in the Exchange Rate is stable. Speculates that china will tighten controls in insisted they are ample. Ithholdings for payments hsbc has decided to keep its Global Headquarters in london saying the u. K. Is an important and globally connected economy. The decision was passed unanimously on sunday following months of debate. Hsbc has been based there for 23 years and says remaining there is the best option for both customers and shareholders. , who isrn to heidi monitoring the market openings in shanghai and hong kong. How is it looking . Im just refreshing to see whether we will see a bounce at the open. Mainland markets not playing along with the regional recovery rally. Shanghai, down. A lot of selling coming through from mainland markets. The only other market in the red , taiwanese stocks. Elsewhere, we are seeing a strong rally being led by japan. Tokyo stocks up. The nikkei was down close to 11 last week. We are seeing that recovery. A number of markets are starting to look quite oversold. We are seeing quite a bit of recovery when it comes regionally. We also have that move, setting the yuan higher. Thank you. The pboc has said they are fixing rates on the yuan higher, reflecting the currencys weakness. Stephen engle has been looking at the developments. They had a dilemma coming into today. They were off last week and the shore. D not trade on offshore, it strengthened because the dollar weakened by nearly 1 . Had a fixing rate 15 minutes ago, they had that dilemma to match to reflect the weakness of the dollar . . Du let it continue to fall or do you let it continue to fall . What they did is better than economists expected. 6. 5118 . Was set at it is the biggest gain in about three months. It was almost double expectations. A little bit of a confidenceboosting measure from the pboc. However c,nh is the offshore rate. It is weakening further. Change the page and we can see the divergence between the onshore and offshore, how the chart shows what had happened over the previous week if we can change that. . Ou know why it is not working i set it up before the market opened. I want to run through those comments. It is finally out. I have been raising this question for a long time. Joe is back now. Articleast in a print on saturday, saying a number of interesting things, trying to reassure the market as we come out of the holiday. There is the chart. They are coming back close r together after the holiday. The cnh is starting to strengthen. The yuan is tricky for the pboc. See his statements. He says there is no basis for continued yuan depreciation because they had been getting mixed signals. It was devalued in august, then they spent the next months defending the currency. He says capital outflows are there was a though trillion dollars estimated. The Exchange Rate is basically stable, he says. He dismissed speculation that china planned to tighten capital control. He also says, no need to work about shortterm compliance in reserves. He says china has plenty of reserves to keep the yuan stable. Thank you. Back to our other top story, contracting once again preliminary numbers showing growth hit a major snag in the last three months of 2015. The point is this. We already knew that this Fourth Quarter was going to be bad because most parts of the economy cooled down. Atnks to our colleagues bloomberg intelligence, we have this wonderful chart, looking at growth over the last 10 years. This box that you see right here really hitting a snag. 1. 4 contraction. Lets break this down. We have to get a better understanding of where the problem is. It was actually consumption, the biggest component of growth in point 8 my, shrinking 0. 8 . The other pillars of the economy are not exactly firing on all cylinders. Looking at exports, the secondbiggest component of growth you have to consider when you look at net exports because japan actually managed a trade surplus in the Fourth Quarter because of cheaper oil imports. So the net contribution to the gdp from net exports was 0. 1 to not a lot, but it helps if the economy is shrinking. The third biggest component of growth, spending. Corporate japan. Are they confident enough to go beyond dividends, beyond by inks, and really invest increased capacity . This was actually the bright spot. 1. 4 , about 1 8 of the economy. 14 15 of overall output. Instilling some sort of confidence. If you look at what is happening right now, what will that do to confidence . The most recent survey suggested that corporate japan was looking at 10. 4 11 . That is very sensitive, related to where we are with the yen. It is hard to imagine that we will see that cap on spending top 11 given the acrosstheboard deterioration. On the question of which part of the economy will drive growth this quarter, maybe consumption . Thank you for the breakdown. Now checking in on some other stories this morning. Shares finishing higher in new york after receiving an videosharing company. Say that would allow privatization before seeking an ipo in china where the brand has strong recognition. Jack dorsey is reporting some of his deputies with stock after giving them extra responsibilities following highlevel departures. Bain and at a messenger have all been given equity with which will invest over four years. They took on a larger roles after five executives left in january or twitter shares are down 31 this year. Wait one dayad to for his bet on jpmorgan to pay off. After buying 26 million of stock on thursday, he saw his net worth rise by 2. 2 million as shares jumped more than 8 . The singapore airshow is underway amid warnings that carriers may delay deliveries of new planes. There is a bright spot, boeing and airbus expect Chinese Airlines to order nearly 1 trillion worth of new planes in the next two decades. Amin is at the show. There is still confidence . Give itabsolutely despite the slowdown, air travel demand in china is actually rising. Take a look at the numbers. It is actually going gangbusters. China expected to order more than 6000 planes over the next two decades. 980 billion that is twice the value of singapores gdp. Imagine that you the government will be building about 66 new airports. That shows the demand in air travel is rising. You have heard about Southeast Asia, some airlines ending operations. Others are mired in financial difficulties, like tiger airways. They have delay deliveries of their planes. Airasia comes to mind, as well as malaysia airlines, which is undergoing restructuring after losses. At discrepancy in how the chinese aviation sector looks compared to the rest of Southeast Asia. The mood has suddenly changed. What is hurting the growth of Southeast Asian airlines then . Overcapacity. Intense competition. Under 10 years of growth, Southeast Asia is finally slowing down. ,hen you talk about competition lowcost carriers account for about 55 of the market. That is the biggest market share in the world when it comes to the Aviation Industry and that is trickling down a comes to profitability. In terms of profitability, airlines here are just five dollars per passenger versus what we see in north america, which is 21. The intense competition is not helping. Thanks a lot for that. Business,on trending ubs World Management takes on their world market turmoil. Impact the United Nations says civilian casualties from violence in afghanistan hit a record last year, the highest total since records began in 2009. More than 11,000 killed or wounded, a 4 rise from the year earlier. Attacks have grown since u. S. Led forces enter their combat mission in 2000 15. Security has deteriorated as the control. Xpands india says it is disappointed with americas decision to sell f16 fighters to pakistan saying such a deal would not help the fight against terrorism to washington has confirmed the 700 million deal and radarudes playing equipment. India is worried that giving pakistan able to the military balance in the region. That the former volkswagen chief was told about the emissions devices as long ago as may 2014. The newspaper says a vw staffer wrote to the then ceo to say the company couldnt provide an explanation for elevated nitrogen dioxide levels in that u. S. Regulators would investigate. Vw admitted last september that some engines have been fitted with suffer to beat emissions testing. News. S bloomberg it is back to Business Today in china and markets are lookin