That has been seeing some pretty wild swings. Analysts saying we are seeing a little bit of profit taking when it comes to japanese markets. Uncertainty over how long this rally can last. Having said that, malaysia is in the green after early declines. Kong stocks extending gains as trading gets underway, up by 6 10 of 1 . Singapore in the red. The disappointing numbers, domestic exports dropping close to 10 , far worse than what we expected. The oil and gas space is suffering the most today. One andtor is down by 7 10 of 1 . The asiapacific gauge down by 3 10 of 1 . We spoke about some of the biggest movers today. Softbank is moving up for a second day. Exuberance,of that the Share Buyback plan. We talked about woodside. Dominos pizza, better than expected results. That is one of the movers to the upside in sydney. The peoples bank of china weakening by the most since january 7, so we are seeing some weakness when it comes to growth on short and offshore. This is the offshore yen. Weakening by just about 2 10 of 1 . In terms of the picture when it comes to crude, we are seeing a little bit of a recovery, a rebound, if you well. Upside,ading to the after plunging a most 4 . Barrel. Ing under 30 a thank you for that. Lets stay with oil because it does not eased concerns about the global glut. In our Bloomberg News energy editor, aaron clark, who has been trading tracking the latest developments. Yesterday, the worlds two largest producers, saudi arabia and russia, agreed to freeze production levels at what they were in january. This is significant because it is the first time in 16 years that opec and nonopec producers have agreed to potential coordinated action to try to prop up prices. It is contingent on several other countries joining. The spotlight shifts to iran where producers will meet and try to lobby that iran join this plan. Seen as the big barriers. They have been explicit the last few weeks that they want to. Oost production, boost exports it seems very unlikely they would join this plan to freeze output where it is right now. They want to boost production as much as a Million Barrels a day. The big risk in this that iran will not join the plan. About fourre talking major players. What happens to other producers if we see these coordinated freezes or a supply cut . Aaron even if there is a coordinated freeze or a supply cut after that, there is another risk with u. S. Shale producers. They will not agree to any of these provisions. They simply respond to price. If you see other global producers limit production or even supply cuts, there is a risk that u. S. Producers will increase production. U. S. Shale producers are getting much more efficient, able to produce that 30 or 40 a barrel. There is another risk to saudi arabia and opec. They have had this strategy for the past year and a half to flood the market with oil and tried to drive higher cost producers out of the market. If they go back on this plan, it is likely that could strengthen u. S. Shale producers and opec and saudi arabia and russia may end up losing market share. There is a lot of risk with potentially cutting back on supply at this point. Joining usn clark from tokyo. Lets take a look at some of the other stories we are watching. Here is juliette taking a look at one company in sydney that has been pummeled. Petroleumwoodside shares very much under pressure in australia today. Woodside shares down 6. 5 . , neting crude prices income falling to 26 million from 2. 41 billion. Volatility ofthe phil skied with the fluctuating oil prices, dropped to 1. 13 billion. The company has also reactivated. Ts dividend reinvestment plan woodside shares have slumped over the past six months along with that fall in crude prices. Singapore. Over to this is after singapores secondlargest bank beat analyst estimates with its fourthquarter earnings. For jumped 21 . Umped 21 . Fit jo ocbcs Net Interest Margin rose to 1. 74 in the Fourth Quarter from 1. 67 year earlier. Shares down around 24 over the past 12 months. Just a touch more than the overall drop. City, shareslion are down 1 at the moment in singapore. Hurtnment efforts have not the Real Estate Company too much. It posted a 15 increase in fourthquarter revenue. It has been a choppy year for those long in capital and shares down 21 . The company also warning that government moves to rein in property housing prices will continue to affect the market. Shery thank you for that. Downside risk for the chinese economy, beijing is looking to show it is up for the challenge. Chinas largest economic planning bodies are considering some fresh measures. David is here to shine some light. David these are potentially significant adjustments in policy that will equip local governments and banks to help the government better respond to the slow down. Lets start with the banks. The chinese cabin is considering lowering the minimum cabinet is considering lowering the many him him minimum ratio banks have to set aside for potential bad debt. A lot of debt will go to rolling over some of the debt in place. As a side bonus, it is a boost to earnings. A source telling bloomberg this current minimum ratio, some banks have used a lower ratio of 120 for budget purposes. To give you an idea of what the current level of bad loans in china have a look at this. This is according to the pboc. At the end of 2015 that is to give you a very, very rough idea of how much money we are talking about that could be freed up. You need to make adjustments to this overall number. Yet, very quickly before i go, let me look at this other set of measures. The economicaying planning body is looking to expand or increase the size of last years special bond program. Billion thatg 60 will hopefully be deployed towards new infrastructure projects. Plan, if they do that every single quarter for this year, that would be roughly the same or double the size of last years special bond program. Shery david, thank you. On our website, we are looking at how one trader made the trade of his life by getting returns of 800 in a market most people left for dead. You can get that story and much more on bloomberg. Com asia. Multiple indicators suggest we are heading for a crisis. We will take a closer look when trending business returns. Shery welcome back. It is another volatile day in the markets with the regional benchmark erasing losses, but giving up the gains. Lets discuss it with mark matthews. Thank you so much for talking to us this morning. Where did that upward momentum we saw earlier in the week though . Is that over . Bounce you look at the we had, it is natural you would have people locking in games. Standard chartered bank moved 17 . Rating of a big re lot of the other things that have been crushed. I think this rally has a few more weeks, or even a few more months, to go. Shery some people are saying we should be buying into emerging markets currencies because they have been so oversold in the past year. Would you agree with that . Mark i would, actually. I think if you look at the it had neverclass, been seen before going back to win statistic started in 1980 one back to when statistic started in 1980. Basically, anybody who wanted to go has gone. They have been oversold and they are undervalued, but they have a few swords of damocles hanging over them. When the dollar goes up, it is a problem for emerging assets. The other one is oil. I feel the dollar is no longer going up and i feel oil is building a base. The two things together, coupled valuations, i think there is a case for owning them. Shery you mentioned oil. How significant is this agreement between saudi arabia and russia and what should we expect when it comes to iran and iraq . Had a crystal ball, but i do not. Iraq and iran will be joining the conversation on wednesday, i believe, which is today. Step andt is a first there is no smoke without fire. I cannot tell you how it happens, but my feeling is with prices at these levels, about 30 for wti, this much of the world can make a profit on that. Those guys have been pumping their oil to try to get the other ones to buckle, and once again, i cannot describe the sequence of events, but now you will see the supply coming off. Shery we are seeing this environment in the Global Economy when we see deflationary pressures, but asset inflation in the market. Mark i do not know where to start, but lets look at valuations. Markets trade on sentiment and valuation and sometimes the sentiment is bullish and markets can become overvalued and sometimes the sentiment is bearish and markets become undervalued. I would argue there are pockets of the world where people have been excessively bullish, and for example, the unicorns, and there is an overvaluation. There are pockets of the world where there is an excessive pessimism and undervaluation. Last week, deutsche banks market cap fell. No criticism i hope i am not it is afensive regional scandinavian bank. Deutsche bank, operations in 70 countries, the market cap fell below it. There is opportunity and that is what we should focus on. Shery thank you for that. British Prime MinisterDavid Cameron has taken his case to the heart of the block, addressing lawmakers at the European Parliament in brussels. He wants the terms changed. Do, the has work to french president said differences remain. Q but and the u. S. Cuba and the u. S. Have signed a deal. American airlines can all start bidding on routes. The deal all the rises 20 regular daily flights to prevent a. President obama is keen to build trade and diplomatic ties with cuba before he leaves office. Powered by over 2400 journalists in 150 bureaus around the world, this is Bloomberg News. Shery it may be helping the carriers bottom line, but Qatar Airways says cheaper oil is not necessarily good news for its customers. Ceo whenear from the we return. Shery welcome back. You are watching trending sell 12 apple is to billion of bonds this year. Billiong to sell 2. 5 of 30 year bonds with a 2. 05 premium. The proceeds will be used to return capital to shareholders to Fund Acquisitions and to repay debt. Groupon rocketed for a second straight day, reinforcing the alibaba effect. It came a day after groupon reported betterthanexpected earnings. Means grouponjump shares have surged more than 80 in two days of trading. Says talk of customer delaying orders for new planes is not being reflected in reality. Priceo says the low oil dynamic. Very there is a big fight among some competitors. Asiapacific accounts for 40 . Area of growth and it will continue. Airways says cheap fuel is helping the bottom line, but passenger should not expect to see the savings passed on in fare reductions. The ceos says the oil is to cheap and the implications for air travel is worrying. The industry is slowing down. People are traveling less. They are careful of how they spent. This is affecting us. I do not think it is a very good idea for oil prices to be below 50 a barrel. It is not good for airlines. Earlier, people will travel less. Because people are traveling for, there is competition capacity. It is bringing a downward pressure. If you say 50 we are hedged only a small amount of fuel, at a very high toce, i hope i will be able price to take a hedge again. , wes fluctuating so much are uncertain of where it is going to go. We hope it increases because we want our business to increase. People expect because of lower oil prices, we will reduce our affairs. Fares. Uce our they should not expect too much reduction because when the oil price started to rise and reached nearly 150, we did not increase our fares 150 . This was encroaching on our margins and our bottom line. Reboundbusiness will and that more people will travel in Business Class and first class on Qatar Airways to increase our profitability. Shery that was that qatar speaking to us at the singapore airshow. Shery welcome back. The top stories trending this hour, oil is making gains in london and new york after saudi arabia and russia agreed to hold januarys levels. Traders are waiting to see whether iran and iraq will follow suit. Just returned to Global Markets after sanctions were removed last month. The collapse in oil has had a woodsideimpact on petroleum. Net income fell to 26 million. Woodside shares fell as much as 7 in sydney. By rampingepping up up spending and considering new measures to boost bank lending. Beijing will make more money available to local governments to Fund New Infrastructure projects. The minimum amount banks must set aside to cover bad loans must may be reduced. Check of theother markets. Haidi we are doing better than we were when the Chinese Markets opened. Shanghai extending gains. Kong also up. Australia back into the green, up 2 10 of 1 . Southeast asia markets putting on about 3 10 of 1 . This is despite uncertainty over where the oil price is headed. Machinery orders coming out of japan earlier today that disappointed. Also around the region, gdp numbers coming up after the market closes today. A bit of a rally when it comes to casino stocks in hong kong. A gauge measuring these companies has broken through a key level. The last time this index was , stocks took on a 160 rally. Parks and retail surging parkson retail surging by 4. 3 . Seeing downside for the currency. We are also seeing downward pressure for the malaysian ringgit. Thank you. The collapse in oil has had a dramatic effect on australias secondlargest producer. Woodside petroleum is plunging more than 6 after profit fell 99 . Ets bring in paul allen woodside has been absolutely pummeled. Paul it is not one of their better days. A year ago, they posted a 2. 4 billion profit. Today, 26 million. Woodsides worst results. The ceo Peter Coleman says the number reflects woodsides resilience. They did get hammered by this oil will price weak price. They did suffer writedowns. It is all reflected in the stock 20 sincen 6. 3 off this time last year. Coleman expecter some sort of improvement in the oil price . Paul he says there are signs of strengthening and the oil price in the second half, but he is wary of that. The price does not have anything underneath. Woodside has very low net debt. 1. 7 billion cash on hand. They have been working aggressively to cut costs as well. They are pretty well placed to weather the storm. Shery paul allen joining us from sydney. Net interest margins declined by two basis points. Anz warned it expects bad debt charges to rise in the first half. Indias central bank has been ordered to release a list of the biggest defaulters. Above 73 loans million that were written off by state owned lenders. The directive comes as india struggles to deal with assets. A march 17has set deadline for banks to clean up their books. Chinese banks are shifting their lending to more open take the counts to get around a new crackdown on shadow financing. Accounts to get around a new crowd down crackdown on shadow financing. How bad of a problem is this . Is an receivables account account for banks to put in their investments, other than bonds. Since the regulatory crackdown in 2014, the shadow banking activities, banks have been putting their trust related assets. Those are riskier loans that banks are not putting in their portfolio because regulations on loans are more strict. Assets and yuan of the receivable accounts at the end of 2013. That number tripled at the end of last year. Shery do banks have to provision for the losses . They do not have to provision for the losses. That is based on the receivable amount in the banking system. Shery i can imagine how worried investors must be. They are very worried and icbc prices dropped to record low about two or three days ago. Icbc is the biggest lender in china. Expects more loan delinquencies and losses and higher default in corporate debt. Thank you so much for your time. The latest on chinese banks. Consumers in china spent more than ever on the finer things in life over the lunar year holiday. What were these Chinese People buying during the holiday . Quite an uptick in spending. Still pretty impressive. 31 inspending, up total. Spending for travel up 42 . Spending on tourism up 60 . Shery what does it mean even with more people putting in casinos, what does it mean for the broader economy . You have to take it as a positive. If you consider some of the relentless doom and gloom on chinas economy, some of it is merited. It is quite impressive if you consider the ongoing negative sentiment on the one. Consumers are spending on the yuan. Consumers are spending. Spending this sustainable . That is the big question. We know retail Spending Continues to increase even with the market rise. There are signs emerging that chinas consumer is starting to move up the value chain. We have a long way to go. Even as the consumer rises, not enough to fill the gap being left by the old economy, which is being phased out. Alwaysthose numbers under expectations. Thank you for that. The latest on chinese consumers. Coming up next, hear from the man who helped to head up asia for one of the worlds biggest defense contractors. Our interview with Lockheed Martin coming up live from the singapore airshow. Obama and leaders have wrapped up their summit in california calling for a peaceful resolution. It avoided a direct reference to beijing. Is the first time leaders of the 10 nations have met in the u. S. Of the Pacific Air Force says china is closing the Technology Gap with the u. S. Military. The training of american pilots still gives them a huge edge. Prioritizedas modernizing the military. Human error probably caused two trains to collide last week resulting in the deaths of 11 people. 18 more were injured when the two commuter trains slanted me to each other trains slammed into each other. The 39yearold controller could face years in prison. Powered by over 2400 journalists and over 150 euros all over the world. Bureaus all over the world. Shery our next guest helps overseas Lockheed Martin. Haslinda amin is there live for us. You are absolutely right. Asia is going to play a significant role. With rising defense budgets, Lockheed Martin has a lot to gain. Good to have you with us. How does Lockheed Martin well position itself to capitalize . We are fortunate enough to have the broadest portfolio in our industry. We have the kinds of programs the countries