Slumping to the lowest in three years, hitting exporters, undermining corporate profits. Anbang pulls its offer for starwood. It leaves it clear for marriott. Do follow me on twitter rishaadtv, use trendingbusiness. Nonmanufacturing pmi data, the manufacturing number. Tom mackenzie is our china correspondent. Marchprise rise in the purchasing Managers Index for china, 50. 2. The survey had been 49. 4. That is what the forecast had been. It follows seven months of contraction for chinas Manufacturing Sector. It will be a positive for the government as well and the pboc. We heard there was going to be a fiscal stimulus. Of thates on the back increase in the services pmi and follows the positive run and chinese stocks. It is not just investors. Where seeing impact in the Manufacturing Sector. We are seeing impact in the Manufacturing Sector. Government expecting 1. 8 Million People may have to be laid off from state owned enterprises. We have seen falling demand as well. That has eased off for the first time in seven months, an increase in the purchasing Managers Index of chinese manufacturers. Rishaad thank you. We get reaction to all this out of china and hong kong markets as they get set for the trading day. We get the open proper and half an hour. The opens in singapore, taiwan pay taipei, kuala lumpur. As we might have expected, the aussie dollar climbing. This is where we started getting numbers coming through, nonmanufacturing Services Number, i beat, and the manufacturing number as upbeat as well. The aussie dollar getting a leg at that. 7688 handle. Is about 5. 5 since the start of the year. We do expect the trajectory to continue and china. The Australian Dollar seen as a close proxy for the state of the chinese economy, if you will. That stronger dollar may in fact seeing thatanalysts ease given the pressure it is putting on export competitiveness. ,s the reaction on the asx 200 down one quarter of 1 . We are seeing strong losses coming through from the nikkei 225, off by 2 . Taiwan,e, losses from the kiwi markets, and the kospi down for a second day. We had that quarter starting off with the were start to year on record for a number of these markets, ending strongly on the back of those elvish comments from the fed, bringing those dovish comments from the fed, bringing new life into the rally. Kong injuring a bull market, shanghai gaining 12 in the last month alone, so we will see if this data can be sustaining this sentiment. We are also getting an unofficial take in pmi coming through later. Those beats this morning coming through from those larger state owned enterprises, stemming that seven months of contraction. We will be looking at those stocks ahead of that Hong Kong Shanghai open. Rishaad thanks. Of gatheringigns gloom in japan today, bins Business Sentiment falling. Lets discuss this with jodie snyder. Disappointing to say the least. Yes. Largehows sentiment among manufacturers and corporate sentiment is weakening in japan. Part of this is due to the yen. The yen has strengthened against the dollar, 7 . That raises the price of imported goods and makes it harder to get revenue from abroad, so there is some risk to corporate profits. What we are seeing as a result of that is less investment, less Corporate Investment in japan, and no wage gains. Toyota this month said it was going to pull back its monthly base wage increase, and that is something obviously that primeor kuroda and minister shinzo abe be have been pushing corporations to do, invest in the economy and and wage growth. That is just not happening. Whenrns about what happens we see those gdp numbers for the First Quarter when they come out later this month in april. The last quarter of 2015, a contraction, so another since Prime Minister of a came back to office. All eyes on the bank of japan when they meet later this month, the last weekend april week in april. They expect further easing given the concerning data, including the survey this morning. Rishaad thanks. I look at those weaker than anticipated numbers coming out of tokyo. Right, we will have more on that. J. P. Morgan having a look at what this data means a bit later as we start of a new fiscal year in japan. Tweet us your thoughts rishaadtv, include trendingbusiness. Here are some other stories we are watching today. Battleticipant in this for starwood drops out. Thats right. It looks like the door is wide open for Marriott International to take over starwood hotels. A competing offer from a group gf rivals led by chinas anban insurance has been pulled. Cashmade at nonbinding offer of 82 dollars . 75 a share, making the deal worth 40 billion. The consortium decided to not go ahead due to market considerations, according to a statement. The Washington Post is reporting the main reason is price. The chairman saying that anbang walked away because it is savvy with price discipline. Starwood shareholders will meet on april 8 two vote on the offer. Annual lossfirst since 2009, the net loss for the chinese equipment maker was 1. 6 billion compared to its net income of more than 400 million a year earlier. Revenue plunge 71 . Auditors have expressed doubts about the ability to stay in business. Shares surge less year before being suspended from trading in may after they drop 47 on a single day. We are expecting the latest payroll numbers from the u. S. Later, and the forecast is for 200,000 new jobs created in march. Even a blockbuster reading is unlikely to prompt the fed to hike rates after janet yellen indicated a willingness to let heat up ae economy little bit before taking action. It also shows how the labor market is being affected by the drag on the economy, the weakness in global demand. More than 240,000 jobs created in february, shifting the focus to signs that an acceleration in wages is underway. 24 Japan Airlines serving tokyo has been canceled after a system failure, 3200 passengers traveling to and from the airport have been affected. The system maintaining aircraft weight and central gravity shutdown at 7 48 a. M. Japan time according to a spokesman. Thear no timeframe for system to be fixed, and they expect the lays with international and domestic flights. Website,right, on the indonesian at 16 fighter jets in the south china sea. That is on bloomberg. Com asia. Gamblehead, the brexit and the impact on Global Financial markets. , chief chinat economist this cussing the latest china pmi numbers. All that and more, this is trending business. Rishaad a decent surprise set of china, manufacturing expanding. We dig a bit deeper into this with the chief china economist. You probably feel vindicated. Two weeks ago in a quarterly report, we upgraded chinas gdp. On a quarter on quarter basis, we look for improvement. 6. 2 is my fullyear forecast. The upgrade happened in the second quarter. Rishaad is that because rings have bottomed and we are in proving because things have bottomed and we are improving. Seee continue to significant headwinds to chinese growth this year and next year, but in the near term we see the government clearly setting stabilizing growth as a priority. Policyth fiscal more proactive and accommodative. We have been a serving leading indicators, all showing signs of improvement. This includes the Housing Market , property stocks turning positive for the first time in a year. Workinge excavators hours rishaad there are statistics about excavators and how long they work for . Yes, we are tracking this closely for 34 years. Rishaad that would you more about the infrastructure spend, wont it . The major drivers for stabilization is the Property Market activity, second would be leading of the support to infrastructure investment. This is the indicator we want to look for from a cyclical perspective. Manyad its amazing how different types of indicators are used to find out what is going on in china. They look at satellite imagery even. Yes, over all you want to have a comprehensive view of the various indicators. Official indicators also give you the direction of the change, the level of change. There are several leading , microlevel indicators, corporate data, also postingits positive growth. Then it goes to what nominal gdp is, does it not . Economy isverall improving and your inflation , it willto some extent be higher this year versus last year. Weeks, what went track closely is the nearterm inflation risk. We have the cpi inflation rising to a 20 month high in february, and likely rising further in march. Rishaad didnt people put that down to seasonal factors because of the Chinese New Year . You are right read food prices are the main driver you are right. Food prices are the main driver. The cycle has returned, even though this will be contained, but in the near term we see the price rising further, and that will make the pboc more inclined to hold its policy rate cuts in the second quarter. Rishaad with the data today, you think it is confirming your thesis that the worst is over with . In the near term, that for the second half of the year we continue to look for growth to be moderate. Rishaad thank you very much indeed. Now to the stories making headlines around the world. 21 People Killed when an overpass collapsed in al qaeda. The roadway fell in collapsed in calcutta. Others may be buried in the rubble. Contract for the overpass was signed in 2007, and the work was several years behind schedule. Officials say the private constructor and previous communist administration the Prime Minister is stepping up his campaign, stepping down as chairman from advisory roles to state developmental authorities and chancellor of diversities. He leads a movement demanding the resignation before elections in two years. A giant refrigeration system has been switched on at the devastated Fukushima Nuclear icet to create a nice an wall to contain water. It will form the wall over several months. Some experts question whether the 300 million ice wall will work and for how long . Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. Up next, japan opens up its power market. What is it mean for the consumer and the providers . More on that when trending business returns. Rishaad you are watching trending business. I am rishaad salamat. Lets have a look at stories making headlines in japan. Forfficult year ahead lenders due to negative interest rates. Impact examine the impact of policy before going ahead next year. Negative rates will reduce profitability between 8 and 15 . The is the reaction at moment, banks moving to the downside in tokyo. Daniel loebn by could be a test case on japanese governance reforms. Companies to appoint independent directors and provide justification to shareholders. Seven is board is set to discuss it in the next week or so. Over were concerns raised suzukis health on the possibility his son may succeed him. Timeonic having a rough come down the most in two months. The company warned profits will slump in the next fiscal year. Saying operating income will fall 8. 5 to 3. 3 billion. Away attempting to move from Consumer Electronics and plans to spend 9 billion. Panasonic says profit will rebound by 2018. Will be ableumers to choose their power provider for the first time as of today. It is part of an opening up of the utilities market, more than 250 companies approved to sell power. Stephen joins us now. Tell us what is happening today. Now that the first day of the fiscal year, the market in japan is fully open. That means households can choose their a lick for city provider the first time here it choose their own electricity provider for the first time. The biggest being Tokyo Electric Power company. The tokyo area, you could only by your power from tokyo electric. That are 250 companies households and Small Businesses can buy their electricity from. There are companies that will be bundling electricity packages along with cell phone packages and internet packages provide discounts for consumers. Oil refiners in japan who are providing discounts at the pump if you buy their electricity. Tv shoppinge networks that will be allowed you to buy a electricity from them and use points towards buying products that range from apples to alcohol. It is definitely a change in the market. For consumers, for the 10 Regional Power utilities. Rishaad what is the role then of the Power Exchange . Right, so now that the market , a lot moren retailers, those who sell electricity to consumers, will be using the japan electric Power Exchange, which is japans Power Exchange. Other liberalized markets, if you look at the nordic market in northern europe, they have their exchange. 90 of the electricity consumed in the nordic market is traded on that exchange. So japan likewise right now its only 1. 5 percent, but in the future it may rise considerably, so utilities that have Power Generation will be able to sell their power to the exchange, and retailers like softbank with little or no power plants or generation capacity will be able to buy from the exchange and sell it to the consumers. Some exchange is the marketplace for electricity to be sold. The important things about the market is you need to increase the volume much more, so right now it is 1. 5 on japans Exchange Rate they are hoping to get to a higher percentage. Lets see if that happens. Rishaad thanks a lot. Joining us there from tokyo. ,ne more story out of japan Japan Airlines, something that came to light in the next hour or so. Cancels 24nes domestic and International Flights after a system failure. More than 3000 passengers traveling were affected. The airline saying the system that maintains aircraft weight and center of gravity shut down at 7 48 a. M. Japan time, but now has been fixed. The delays remain. A close look at some of the numbers behind japans installing recovery efforts, coming up. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Rishaad a look at our top stories. China seeing as a surprise jump in manufacturing activity. 50. 2,i for march rose to signaling an expansion. Chinas widethat raging stimulus is kicking in. The services pmi expanding to 53. 8 last month. Stocks lower in tokyo. Sentiment among Large Manufacturings falling to a threeyear low, confidence at six in march. That would suggest investment and wages growth will remain tepid. Starwood hotels taking a hit in the aftermarket trade. G insurance walks away from its proposed takeover, starwood reconfirming its commitment to marriott. Various market considerations in pulling that bid. Sense ofts get a whats going on market wise. Hong kong was higher. Aidi. S h lower forare opening shanghai in the first few minutes of trading. We did have Chinese Companies listed in hong kong entering a bull market, extending gains from february 12 lows by 20 . Still, a tepid start to the quarter regionally. Losses from tokyo, nikkei 225 down over 2 . Were not seeing much of an upside boost when it comes to the better than expected print out of the china pmi numbers coming through. By 2 10 of 1 . Wn the aussie dollar getting a leg up after that data. A quick look at some of the movers we are tracking today. For agbank. Upside quite a bit of movement in the listings for the Agricultural Bank of china. Revenuesu, and gaming coming through, extending losses in the hong kong simitian session. Up one commercial about looking to take it private. I look at the reaction in terms of the fx space. The aussie dollar putting on 5. 5 today. Leg up comingthat through from the china pmi numbers. We had that nonmanufacturing Services Number come through, we did see that surge, but still trading strong. Something for the reserve bank to worry about in terms of the resurgence of that strong aussie dollar. Rishaad getting back to that top story. The aussie dollars reaction, a recovery in china manufacturing. , this came out of left field, didnt it . A rare piece of positive news. It might indicate some stability in chinas economy. Hold your horses. We have the unofficial figures in 15 minutes. You would not want to overstate it. For a number of months, economists have been looking for signs of traction. Differentll the methods the government has taken to get money into the economy . In march, the government made it clear that there will not be a hard landing. We will hit this growth target of 6. 5 . Rishaad of course we are. Absolutely right. Thats what the indications are now. China economists says that is an upgrade. She has called it quite well. Rishaad she was ban on. Date will only hit that 6. 5 target. Their total debt level is 40 of gdp. Spending money as to the leverages in the economy. They are piling on more debt. That is the issue. To an have times as far as the overall economy, a drag on growth. Ashaad this is not signaling turning point is what you are arguing. I think the underlying fear is they are not dealing with the structural problems. Even if they hit the growth target and get the economy on track, are they doing enough on the reform side, tackling stateowned enterprises. Bad debt at banks are a 10 year high. That is the balancing act. Rishaad thanks a lot for that on the latest pmi data, showing some signs of optimism for the chinese economy, but not the case in japan. More gloominess there in the