Its about time the company got established there. You can let us know what you think of todays top stories by following me on twitter. Markets in this region are under a lot of pressure tracking the downward lead from he u. S. Overnight. Good morning. Really i guess the lack luster lead coming through from the u. S. , the stronge yen weighing into Japanese Equities as well which is leaning it lower. Down by 1. 5. We are seeing energy and export stocks coming under pressure as well as the banks. Weve just had malaysia, singapore coming online. They are also joining in that, down spoy 4 and singapore reversing yesterdays good gains down in the early session. The kospi falling as well despite the fact the yuan has been holding fourmonth highs against the dollar down 0. 6 in the morning session. The Weaker Oil Prices playing into the crude prices in sydney down 0. 8 . A pretty flat start but also in the red at the moment. Ill show you some of the stocks we are watching in the region of course. The Oil Price Falling to about onemonth low. That has had a deep impact coming through on a lot of the Oil Producers in australia. Leading the decline down by 4. 1 . Samsung engineering in korea doing quite well. This story just coming through in the last couple minutes. Samsung engineering saying it has no plans to merge with samsungs plant business. Up by 2 . Fast retailing down by almost 3 . Mitsubishi has had its price target lowered this morning sending its share price up by more than 3 . It is Interest Rate decision day in australia. The aussie dollar holding below the 76 mark ahead of the decision this afternoon. Of course all analysts weve spoken to expecting the official cash rate to remain on hold at that level of 2 . Just watching the japanese yen another story weve been following on the bloomberg of course the japanese yen holding near the 18month high against the green back and continuing to strengthen there. 110 plus 91, haidi. Japanese stocks, the yen, of course, and the broader economy, the inflation and wages all shrugging off the governments best efforts to kickstart growth. Over the past hour key Decision Makers in tokyo have laid out their latest attempts to provide growth. Our tokyo bureau chief joins us now. Run us through the Prime Ministers latest rescue plan for the economy. Sure. The japan already passed a record budget for the fiscal year that started on friday. Front loading that budget means spending most of the allocated public works money in the first half of the fiscal year instead of spreading that spending out throughout the fiscal year. Of course thats amazing news for the economy in the near term but its kind of worrying for the economy six months from now. And that raises speculation that abe is going to come out with an extra budget and actually a real stimulus package to keep the economy going once we run out of the public works money. This does highlight the fact weve been getting really terrible data over the last few weeks. The Business Sentiment survey on friday was especially bad. And the bank of japan is probably potentially going to come out with its own stimulus at the end of the month in the form of further cuts into negative Interest Rates so the government is going to try to do its own part to keep the economy afloat, too. All right. There in tokyo. Everything but the kitchen sink it seems. Well, the i. M. F. Is again calling on beijing to better communicate its policy intentions as evidence continues to mount that growth is in china to the down side increasingly affecting advanced global markets. Well take a closer look. What does the i. M. F. Want from beijing . The Key Takeaways in this outtake from the upcoming Global Financial stability report, that is due out next week. They kind of gave an initial chapter released today. They are saying theres been a strong and steady increase over the last couple of decades and the impact of chinese growth on stock returns in advance and emerging economies and it is a trend the i. M. F. Says that is likely to intensify meaning chinas royaling of Global Financial markets that we saw over the last year may become a more regular occurrence. Its all underscoring of course what the fund says is the need for clear and timely communication by chinese policy makers. The i. M. F. In this chapter on china says clear and timely communication of its policy decisions, transparency about the policy goals, and strategies consistent with achieving them will be essential to ensure against volatile market reactions. The i. M. F. Says advanced economy stock and currency markets are increasingly sensitive to spill overseas from emerging markets, citing that more than onethird of the variation of returns in the stock and f. X. Markets can now be traded to emerging or tracked to emerging market spillovers. Now it did not say that the it did say that the bond markets have do not have the same spillover effects of course because the fixed income flows accorded to the i. M. F. Are driven much more strongly by a more broad, Global Factors rather than individual emerging markets like china. Also the i. M. F. Says spill ovaries k from chinas stock market volatility should remain modest as chinas markets as we all know as well as indias are less globally intertwined than other emerging stock markets in places like brazil, chile, mexico, poland, and south africa. Again, the full report coming out next week from the i. M. F. Back to you. All right. Thanks for that. Lets take a look at some of the other stories we are watching today. There are a pair of issues to watch out for today. The bank of australia will announce the Rate Decision a few hours from now and is expected to hold off from changes this month keeping the benchmark rate at a record low of 2 according to analysts called by bloomberg. The australian budget is due may 3 and it is likely theyll wait to see what that holds before adjusting policy. Meanwhile, Indias Central Bank is expected to cut its prepurchase rate by 25 basis points. According to 33 of the 37 economists bloomberg surveyed it would be the lowest level since 2011. Its been held at 6. 75 since september and the focus will likely be on the r. B. I. s forward guidance. Now, disneys chief operating officer is stepping down although hell stay on as special adviser to the c. E. O. For the Financial Year through september. The news has thrown disneys succession plans off track though as he was seen as a likely successor when his contract runs out in june of 2018. Sources tell bloomberg he was having difficulty convincing the board that he was the right man for the top job. And he says he was warned he would lose his 200 million bonus if he quit the fund before 2014. In a court filing pimco said he had been told this on september 25 and left a handwritten resignation note the next morning. This is the companys First Response to grosss allegations he claims he was forced out so pimco wouldnt have to pay his cut of the bonus. The pimco cofounder is suing for that cut and says any settlement or award he receives will be donated to charity. Haidi . All right. Thanks. We have a big, exclusive here on bloomberg today. Credit suisse global c. E. O. Will be joining us to discuss a whole range of topics from restructuring to the state of banking. The potential fall out and where chinas economy is heading. Thats at 10 past 12 00 if your a he watching from sydney. Still ahead it is a busy day for Central Banks in this part of the world. Well talk about expectations today and next is opecs potential production smoke and mirrors before we even get there . Well get jpmorgans take when trending business returns. Oil is on the slide again back to 35 a barrel in the new york session. Due to growing doubts major producers can actually overcome their differences and agree to limit supply. Ets talk about prospects. Were still 12 days away. Are the talks dead in the water before we even get there . I think it is very unlikely l members tick larl certainly a cut is a little unlikely in our view. Jpmorgan were recently in the middle east, certainly feedback from the region was, the saudi in particular is unlikely to cut. In iran were starting to see a ramp of both outward anyway so why should they cut . Which is strange because the saudis were one of the architects of the potential deal so it seems odd they are finding reasons to back track now. Weve had already that agreement for qatar, etcetera, to freeze out the saudis and prior to that agreement going to hold around 2 Million Barrels a day for production so sort of the agreement in itself was certainly on the saudi side already sort of known from then. In terms of your trip, your field trip to the middle east you say you see shortterm for iran but medium term quite a lot of uncertainty. I think it is less about iran and more about other opec members. A key takeaway from our trip was around iraq so we talked to a lot of the major investors and producers in iraq and potentially output could be flat to even declining this year. In terms of what you expect come those talks in doha even if iran perhaps sort of partially comes to the table and says well cut somewhat, basically what, 30 below the presanction levels they want to get to. Is that enough to get us over the line . I look at the talks like thfment i think if there is some kind of agreement with all sort of members, i think that could set a positive precedent for Something Else later in the year but if there isnt any type of agreement, just discussions, i think that is not a positive sign certainly for the Economic Outlook which we are more cautious on. The rally so far hasnt been shall the fundamentals havent changed. Supply or demand. Sort of smoke and mirrors, you know, the hope that we might get some sort of agreement from the producers. You have to see more adjustment on the supply side for the u. S. And other nonopec producers. For us, for jpmorgan and our Commodities Team we cut on nonopec decline forecast this year. Thats not juff the u. S. I look at china. Just came out of the reporting season. Chinese Oil Production is probably going to be down to the 5 , possibly even more this year. So, you know, mexico as well. Similar. Its not just the u. S. But youre starting to see more adjustment there as well. Terms of the you hurt the producers are we about to see not yet according to our global survey. The last year capx was down 20 in our forecast and this year forecasting 23 or so. We could be sort of in the middle or twod sort of another year or so of capx deflation and oil deflation. What about regionally . Talking about producers in indonesia and malaysia. How do things stick in terms of these markers . More cutbacks for them. I think indonesia literally a few weeks back i certainly feel a little bit more that the upstream industry is more renationalizing and taking ownership of their oil and gas aspect through National Companies not just the National Company but other local indonesian companies. But still were in the context of a tough market with respect to cost cutting. We talk a lot about the positive effects of cheap oil. Do you think weve reached that point where that is about to be really drug down by the negative effects of the declining investments . No, a good question. I think were seeing less of the consumer benefit. If i take china as a good example, theyre forecasting chinese growth around 200,000 barrels a day this year just over 600 last year. The government effectively below 40 bucks fixed gasoline and diesel prices so you dont expect the same consumer uptick you saw this time last year. Indeed the first data i saw essentially china didnt grow at all. So youre seeing less of these benefits and therefore i think prolonged tightness around sort of cost cutting. Which is strange because you had that sort of rally partly being boosted by the hope were seeing a turnaround in china and this news from the government will result in more demand and investment and that is going to be sort of the turning point but you look at the data and at best it has stemmed the bleeding but hasnt reversed the trend. Wed agree with you. Jpmorgans forecast of brent this year is just under 38 and next year just under 48. Weve always had potentially technically in sort of around to mid to late january just under 28 brent. It doesnt mean to say the data like youre saying supports a big recovery toward year end or into next year. Any upside from your field trip, potential, positive explosions, you would be looking to opportunities . In general the Equity Perspective i would still keep weighted more in the chemical names. We think more the refining names have had a good run and i think with oil equities focused on those companies which have got some kind of structural change, which can really preserve cash for us. Sort of i guess the black swan event that could really change the trajectory, the narrative this year . I mean, i look on the upside what could happen, were right on opec, iran. Actually you start to see more severe declines. U. S. Cut back more and demand does hold up better than we anticipate. I think on the negative side actually china gets weaker, moderation, some other developed market and actually iran there is more upside to what theyre actually saying. Best Case Scenario at the end of the day we get to april 17 in doha and a deal is struck. If they cap at current levels still record levels i think we would say, look. That could be broadly viewed as positive. In the fact that the collective actually have an agreement. And could lead to something bigger later on. Yes. Okay. All right. So in terms of a deal we could get something but, you know, manage your expectations on what that would be depending what iran would come to the table with. Is there a sense these comments out of the weekend from the deputy saudi crown prince, theyre not representative of where, you know, the rhetoric that iran is going to arrive at in end . I think weve got to see if the Iranian Oil Minister turns up first. I actually think iran will stick to the current increase and output levels youre starting to see maybe they do attend. I dont know. Again, id go back to saying, look. Itll be a challenge getting all opec members to agree on something. Whether its a freeze or a cut. All right. Lets look forward to it so far. Great to have you on with us. Scott darling the regional head of oil and gas for jpmorgan here with me. These are the stories making headlines around the world. Myanmars auks is to cut back on her government responsibilities just days after taking on four ministries. She is giving up energy and education portfolios but will remain foreign minister and head of the president s office. Parliament has also proposed giving her the role of state counselor and this position is said to be similar to Prime Minister. No reason is given for the changes. Authorities are suspending the peak time requirement of three people to one car to see what happens to traffic flow. Abandonning the policy will be. D news for jockeys an International Study says jakarta is the worlds most congested city. And the blue origin space project has been completed. The reusable vehicles blasted off in texas and returned to earth with an upright touchdown. He says the capsule apparently ade it to the ground and the rocket was intended to slow descent. There will be a sub orbital flight before returning to earth. This is bloomberg news. Up next the big tech names are in a race to crack india. After the break a look at downeys latest investment. Stay with us. Welcome back to trending business. Checking on some of the other stories making headlines today, currently resistance from creditors as it tries to reduce its debt burden. The Pharmaceutical Company currently holds 32 billion in debt. Around onethird is held in secured loans by investors. They have until wednesday to respond to the companys plan. Some said to be pushing for a igher Interest Rate. Down 0. 3 the number of customers also falling about 9 . The owner of the company says spring items are doing well due to warmer weather. Smartphone maker is planning to expand its market share in india. An investment in the plant plans to do it. What is xiaomi investing in now and why . The First Investment in india and leading investment, 25 million, doesnt sound like much and we dont know quite how much they are putting into it but they are focusing this on entertainment and it has an online portfolio of videos, music, and other Digital Media offerings. It wants to provide its customers in india with the whole system so the hardware and the software. And we know that xiaomi have said in the past the 4 g penetration increases in india and as users increase, they need to offer more than just the hand set. Traditionally in china theyve sold online to keep prices down. In india, selling in shops as well as online. Weve heard from the Vice President of Global Operations about the india structure. Here is what he said to us when we spoke to him a few weeks ago. Our International Expansion over the last couple years has been focused on a few markets like Southeast Asia and india. This year were really focusing a ton of our work on india. India is a very, very fast growing market and is already by the way the second largest population in the world. We are of course thinking about the United States as well. That is the Third Largest smartphone population in the world. It is on our radar but a bit too far to have specific plans or precision on when and exactly what but it is definitely on our radar. He also sai