Is that the market board. How is the start of the week is shaking up . We could be looking at the start of another rally in asia. The s p 500 ending at its since november, a correlation between that rally and oil and that rally in energy stocks, pushing up u. S. Equities for another week. Lets take a look at how things are shaping up in asia, strong gains from the aussie dollar, asx 200 up. Servicesomes to oil firms, badly beaten down. Online,e, just coming upanese stocks, nikkei 225 by one and 3 10 of 1 . Strong out of the gates. Some sense ofing up lifting sentiment when it comes to Capital Spending in japan. Kospi also up by 7 10 of 1 . It is the oil story we are keeping an eye on. These currencies up by 1 , for example the aussie dollar. 0. 7561 at thethe moment. Lets take a look at the move in crude oil in the asian session. That trading at just over 40 a barrel mark. In january, we were hitting 12year lows. We have seen crude rally some 40 since then on these expectations that we will be seeing supply a cord when it comes to the major producers. 38, downg at about about quarter of 1 . A meeting between iran and Russian Oil Ministers coming up reportsut ahead of that that the Iranian Oil Minister has said leave us alone until irans Oil Production gets up to 4 Million Barrels a day. They are currently at 3 million. They are saying they will get to 4 Million Barrels a day and then come to the table and potentially talk about getting involved with this agreement to deal with the global surplus. Yen, a check of the strong beat when it comes to japan machinery orders. It was week for the most of weak for the most part of last week. A sense of renewed appetite as traders get back into these commodities. All of these currencies gaining by over 1 last week. Yvonne thank you so much. The latest ecodata from china likely to heap more pressure on the leadership as they try to meet this years growth target, at least 6. 5 . Industrial output and retail sales both low in the januaryfebruary period. There had been some signs of stabilization, if you will, especially in investment numbers and property and fiscal spending by the government, but the weak economy is persisting. The ecofronts on. Positive toking meet the growth target, even though officials are saying they will meet that target, otherwise they would not have set the target. Governor says no stimulus is needed, but lets get to the data. Industrial output in the combined januaryfebruary rising just 5. 4 , below estimates, suggesting continued sluggishness in demand. Demand at home and abroad, deflation has persisted for some 48 consecutive months, four straight years of deflation for pti. Retail sales is a key barometer for consumption trends, climbing 10. 2 . Forecasted the 11 from economist. This is all on top of much lower credit figures we got on friday, aggregate financing, the broadest measure of new credit growth, drops sharply after a record surge a month earlier. The danger here is that to meet of six point 5 growth, the pboc will need to loosen Monetary Policy faster and further 6. 5 growth, the boc will need to loosen Monetary Policy faster and further. So there are a lot of pressures we have seen, and the numbers in january and february are distorted, but again not painting a great start to the year for reaching that target. Yvonne were also seeing pressure on the currency. The pboc governor did project a sense of calm at the press conference on saturday. What message is he trying to send . U. S. Id no rush to buy dollars. He is saying chinas economy is steady as she goes and they have the fan firmly on the tiller and not to panic. We have seen panic because of perceived policy missteps. And trying to paint a calm competent picture. He says excessive stereos is not necessary to achieve the growth target. He says as long as there is not any big economic or financial turmoil, they will keep the policy with a slight easing bias. Products,xport especially manufacturing export products, are very competitive, although there are increasing changes toradual comparative advantages, competitiveness overall remains quite good. Addition, he said capital flows will return to relatively quiet and normal level soon. We have an estimated 1 trillion in outflows last year. Quite soon should return to a normal and quiet level, because the annual National PeoplesCongress Wraps up midweek, and all the delegates have to head home with their marching orders from the central government. Thate trying to wrap up npc with a soothing message to investors. Thank you so much. Emphasizedvernor that china does not need to devalue a currency. That doesnt mean the yuan is on the stronger side, right . Marked difference between the need to manage expectations to head off capital outflows and the other side, lack of a broad broad agreement on the fair value of the renminbi, driving the Exchange Rates shortterm. Chart, a simple dollaryuan. The key take away is what we have seen last week. This was a little panic at the start of january. We have started to fall asleep here. Level so far this year at the start of this trading week. The offshore actually is now trading at a premium to the onshore rate, so thats one chart or one measure. The other measure is what china has been wanting the markets to focus on, which is the yuan against the basket of currencies. Although we dont know exactly what the weightings are of these currencies. This is what weve come up with based on trade flows. This shows you is that the yuan against the basket is is at its weakest level since december 2014. A lot of this has to do with back in august, keep in mind the dollar is still the dominant currency in this basket, which is why youre seeing this evaluation back in august fairly clearly play out, and of course this is when the yen started to strengthen against everyone else. The point is that when you put these two charts together it simply shows you that there are in fact two measures of the renminbi. Thats where the confusion comes in. Which measure should you follow . Its both. You do have the daily fixing which is this, the blue chart right here. I invert of that for you. There we go. I invert it that for you. There we go. You do see the divergence between where we are for the basket and where we are against the u. S. Dollar here it dollar. Yvonne thank you so much. The International Monetary fund says asia should step up and take a leading role in guiding the global economy. Managing director Christine Lagarde described the region as the most dynamic in the world. She predicted asia would drive nearly two thirds of Global Growth over the next four years and urged officials to keep Monetary Policy loose while using fiscal policy to boost growth. Back at moodys after it cut a longterm debt outlook. Hong kongs of ratings longterm unchanged, but downgraded the Outlook Negative to favorable. John tsang says that movies has got it wrong. John they can look at the Economic Conditions we have. It is time to consider an upgrade for hong kong. Yvonne Central Banks out of ammunition when it comes to boosting growth. Good morning. Yvonne it is 8 14 a. M. In hong kong. These are the stories making headlines. At least 34 People Killed in an explosion in the turkish capital ankara. The suspected suicide bomber blew up a car close to the Prime Ministers office, injuring 125. The blast comes less than one month after another explosion. That attack was claimed by kurdish separatist in response to Turkeys Campaign against ethnic kurds. President xi jinping has called on the armed forces to step up defense by being more inventive. Issaid military there essential to combat efficiency. He called for what he described as unique advantages in key areas. Korean and u. S. Forces have states their largest ever landing exercise, more than 17,000 soldiers took part. Seoul and washington say the drills are defensive and routine, while north korea says they are preparations for an invasion. The commander of u. S. Missile forces says he must concede that pyongyang has the ability to launch a missile that could strike anywhere in north america. Powered by over 2400 journalists and 150 bureaus around the world, this is Bloomberg News. The bank of japan starts its latest policy meeting today with the decision coming on tuesday after the ecb extended stimulus last week. There could be something to be learned from how the announcement is communicated. What exactly can the governor learned from mario draghi. I think mario draghi undead some of his good work last week. In the press conference he made throwaway remarks. Something that reversed slump. O slunk kuroda is hoping for a bit of a rally. He will want to make sure the message is consistent and the markets go the way he wants and there is not a uturn there. Yvonne we saw what happened in january when they adopted negative rates, flipping backwards to what should have butted following afterward, how important is governor kuroda in keeping that consistent message . He wants to have a consistent message in the markets to go the way he wants them this time around. That thisbe clear negative Interest Rate policy is right for japan, why they took the step. They had already ruled out a policy action, saying negative Interest Rates were not an option. The move has not been popular in japan. That the make clear boj is standing behind the policy and not moving away from it. Yvonne we know that the governor does not like to do policy and backtoback meetings. What should we be expecting . Some timing for the next move , economist saying Something Likely in the coming months, maybe june, july. He will have to give a clear signal on whether the negative rate is working or what benchmarks he will look to assess its effectiveness, and what would be the trigger when they do decide to go deeper, so a clear message they are not pulling away from negative rates and will likely go deeper. Yvonne thank you so much. We count down to that boj meeting. China overseas 44 . 8 buy billion. We will can in you to watch that one. We will continue to watch that one. Our next guest says ecbs actions should be supported and their overweight stance on eurozone equities versus emerging markets. Joining me is the chief Investment Officer for south asia at ubs wealth management. We saw that Mario Draghis remarks were the catalyst of saw Market Movement we following afterwards, but in the context of ultralow negative rates, signs of market distortions seem to be on the rise. You think the fed and boj have in concerned isboj making it a lot more difficult. The way mario draghi has communicated to the markets and markets have reacted, he seems to have a lot more impact than what governor kuroda has done. High at the are lm the marketso ca down and weaken the yen. Consumptionsy any going on, exports are the only mainstay of the japanese economy at this time. Weake we havent seen a yen. Are there still concerns of a stronger dollar . Absolutely. One of the reasons why the japanese yen has not weakened is because of disappointment over the bojs policy. Negative Interest Rates dont really work in japan because there is hardly any consumption going on. Were willinganks to lend, no one wants to borrow. Negative Interest Rates only have a certain impact unawares on the eurozone side, quite a bit of consumption coming in, specially germany. Negative Interest Rates workfare, and they are not the only option that mario draghi has introduced. Introduced buying corporate bonds, and a program we think will be very effective especially in peripheral european countries. You have know maintained a neutral stance on japanese equities, but we have seen market volatility ease a little bit. Rising back to bull market gradually here. What would make you change your shift back to wanting to buy japanese shares . One of the main reasons why is because on the fiscal policy side we have not seen abe really deliver, the reforms regarding the labor union. If he can put through some of those measures into parliament and get them past, then you have more reason to be positive on the japanese economy. If you see consumption increasing, if you see japanese consumers by, then they get you reason to be more positive on japanese stocks, but imports a both of these measures and not coming through at this time. The data on consumption is really, really negative. Do still favor eurozone equities over emerging markets. Emerging markets, we have seen them piggybacking on some of the gain with the oil rally. It seems like the headwinds have faded a little bit though. Yeah. Youre seeing a little bounce back up because the emerging markets space got hammered last year, and therefore there is a little bounce given the fact that oil prices have recovered. Our view is that on a medium to longterm aces, emerging markets are going through a structural problem. Its a situation you cannot just reverse overnight. Structural issues take a longer time to fix, and at this point in time we are not seeing some of the reforms coming through in some of the emerging markets, and therefore that is one of the reasons why we have an underweight on the emerging markets space at this time despite the fact that oil prices have recovered in january. Yvonne we have to leave it there. Thank you so much. The rally may be at risk ahead of the uks budget decision. We will have more on that in our fx headlines. Haidi it is monday, the 14th of march, and these are your fx headlines. Chinas central bank strengthened the daily fixing, spurning demand for highyield assets. The the aussie dollar pacing gains against the greenback. Reducers from materials getting a lift on more stimulus support, particularly in the way of Infrastructure Investment out of beijing. The yen fell against all its major peers. Declined aso investors weigh the impact of the ecb package. The pounds first rally against the dollar is about to hit the brakes as investors brace for monetary and fiscal policy on britains economy. Worstng is still the performing currency, but it did get a reprieve over the past two weeks, a rally reflecting easing concern over the possibility of a brexit. The pound posted its biggest gain in more than a month versus the euro after mario draghi and announced expanded stimulus. Osborne set to release his budget this week, and could follow through with a warning. The bank of england also releases its Rate Decision a day later. It could prove to be a double whammy for the economy. Advanced,ian riel growing speculation that the president will be deposed, boosting local assets. To its strongest close since august, up 12 this month, the bestperforming currency in the world. After dumping it last year, traders have become more bullish because there are signs that the president could be impeached using public funds to cover budget gaps. Those of the stores driving your fx markets this morning. ,vonne coming up, this deal anbang expanding its u. S. Hotel portfolio. Sellstone has agreed to Strategic Hotels and resorts for 6. 5 billion three months after it purchased the u. S. Luxury resort company. We will talk about that, details and names when first up continues. Yvonne good morning. It is a 30 a. M. In singapore. Happy monday to you. A 30 a. M. In singapore. Happy monday to you. Youre watching first up. Asian stocks rising led by japan, 13 above its low for the year, sentiment helped by a rebound in oil and other commodities. Investors focus on policy decisions this week from the boj and fed, most dont see any movement from either. Pressure rising on chinas leaders as key Economic Data strong in the first two months of the year, industrial output rose by less than expected, 5. 4 in january and february, while retail sales missed estimates, however the Central Bank Says major stimulus is not required. Says he willn continue to pursue prudent Monetary Policy. Blackstone will sell strategic ,otels and resorts to anbang 6. 5 billion. Bought waltersng a story of waldorfs a story hotels. Powered by over 2400 journalists and 150 bureaus around the world, this is Bloomberg News. Markets in the asiapacific, stockmarket rally continues. One. 3 up, a, big beat on machine orders coming out of japan, rising 15 on month, a big beat their. Kospi also seeing relative gains. Asx 200 up 7 10 of 1 . It data is somewhat disappointing, but we look ahead to the boj and fed meetings. A lot to digest this week. China is powering ahead with plans to reform the economy from the bloated state sector to the financial markets. Senior regulator says authorities are planning to combine more of the biggest Stateowned Enterprises to cut overcapacity. Than how different china has tackled this before . Shery the vision seems to be bigger and better for the 18 trillion public sector, so were hearing from the chairman of the state owned assets supervision and administration committee, saying that he thinks the reform should go into two tracks, cut overcapacity in some industries while capturing growth and others, like aerospace, nuclear power, and highspeed rail. The key difference this time is that there wouldnt be those massive layoffs we saw in the last major round of state owned Enterprises Reform in the 1990s. Back then, 40 million workers lost their jobs. He says that the reform this time around must balance many interests, especially those of employees. Yvonne what do authorities plan to do about the Financial Risks to the economy as it faces a slowdown . Are seeing growing concerns that these risks could lead to unemplo