Slumping to its lowest since 2003. Saudi arabia lays out its vision for a proposed post oil economy. Saysrince and the country it is dangerous. You can follow me on twitter and do not forget to include the trendingbusiness. Heres a look at what is happening so far. Good morning, another down day. Haidi that is right. We are seeing these markets in Southeast Asia coming online and joining the select that we have seen extended for a second day. We were trading further from this fivemonth highs we had in the rally last week. Take a look at how we are sitting. We are seeing some positivity coming through south korea, coming up 1 10 of 1 . First quarter readings on expectation. Havegdp growth is what we slowing from 3. 1 in the previous quarter. A surprise in terms of that data. It is a pretty big data brief, chinese profits coming through, hong kong exports coming through and that will be interesting. You can use that to reverse engineer the chinese data as well. Elsewhere around the region we are seeing a little bit a downside although everything is flat at the moment. Quite a bit of weakness coming through singapore for the second day, down by half a percent right at the open. Shery thank you for that. Oil is continuing to climb in trade with some analysts saying prices have dousing the bottom. Juliet, what is driving oil climb . We are seeing data released this week with analyst we have surveyed saying it most likely rose by 1. 5 billion barrels last week. During a 1 rise mondays trade which was a decline in five days. Looking at the contracts almost 1 of the moment, so back above that 43 a handle mark. In Energy Trader has told us they believe prices have bottomed even as growth in demand has peaked, crude rebounding after the slump after 12 years. Know that we have seen a number of numbers decline, with the u. S. Reduction declining for a six week in a row last week, and kuwait meanwhile has a plan to boost its production to almost 3 Million Barrels a day within months, and that would double its supply where it was last year during the oil workers strike. On the one hand, you have the decline coming through in u. S. Production but there could be a bit more of a boost coming through for the middle east in production. Prince announced the blueprint for the countrys future, post oil and he does believe there will be trade talks between opec and nonopec producing states, even though we know this talks actually stalled last week. Currently at the moment, we are seeing the decline coming through in production at the same time, there is production coming through in the middle east. Shery thank you. We will take a more detailed look later in the show. We want your opinion, so please give us your thoughts. Chipmaker is rising. Edward chan is here. What is that tell us about the market for smartphones . The market for pc and smartphones is not doing well. Demand is tepid. Hynix the market was expecting a poor result. We saw everything fall, margins, revenues, operating profit and that is because the prices are about half of what they were a year ago. This just confirms the expectation. This year we may see the worst of smartphone decline on record. Shery those expectations already having the stock rise, but what is the outlook for what chipmakers spend and given the slow expectations, how can they write out this ride out this . You will see demand flatlining, even the Smartphone Market is now decelerated, chipmakers have to keep a lid on costs, keep upgrading production to boost yields and margins, and hopefully there will be a driver of growth, and undergrowth. Shery thank you for that. He lowest proffered for sk ynix in three years. The other stories we are watching today, yvonne, a big one coming up. Yvonne you will want to watch this one, bringing apples greatest latest earnings and they are expected to be rather grim. The company has only warned investors the results will bring bad news about iphone sales, revenue will drop for the first time in more than a decade. The question now, is how badly . If you take a look at this chart on bloomberg, apple may sell less of its most popular product, the iphone this year. If we take a look at the 2015 numbers, apple sold more than 2. 5 million iphones last year. Customers are just not upgrading their phones as much as they have in the past seven years or so. They expect iphone sales to decline in the next two quarters which would be a significant hit considering iphones account for two thirds of apples revenue each quarter, and for the stock point of view, while analysts say this may already be priced in, apple has fallen 20 in the past 12 months and we will look at those earnings coming up for the u. S. Power as its Holdings Assets holdings, canadian oil pipelines, the two Companies Paying a total of 1. 3 billion to husky energy which is also controlled by the hong kong billionaire. Sales to businesses controlled by the richest man in hong kong is probably the best outcome for husky. It is presumably the highest bid it has received so far. Trying to shore up their finances in the worst oil market downturn in decades that we have seen has posted a loss of 361 million in the First Quarter compared to a 150 million profit just a year ago. A part of this deal will form a new limited partnership with power assets. Finally, if you are at the beijing auto show you may have noticed the big elephant not in the room. Mitsubishi motors have skipped the event as they grapple with the mileage scandal. That has not stopped the local joint venture, that says it wants to become the top suv brand in china and will introduce 10 new models over the next five years. It is part of the ventures goal to become number one in suvs in china while volkswagen apologized at car shows after its own scandal, and mitsubishi says its partner is not in a position to apologize for it. Mr. B she has until wednesday to cement that it about a falsification to japans transport ministry. The company has not said if the cheating extended to other models or on vehicles sold outside of japan. Att is all we are looking for you today, back to you. Shery thank you. Still had on the show, finding the right Investment Opportunities in auto startups. Next, japanese stocks fall for a second day, head of the boj meetings. We will discuss that more after the break. Shery welcome back. Morgan stanley investment says that take advantage of generate stock numbers, boosting margins. Lets get more from our finance reporter. Do you think investors are coming back to india, indonesia and the philippines and that is all left her that exit we saw a earlier this year. Exactly. Asian developing markets are seeing a return of influx after a heavy january and Commodity Prices collapsing. Has stabilized and Commodity Prices rebounded and it seems to be slowing down the rate hike and that is why investors are feeling more confident and we are seeing 1. 3 billion indonesian sovereign bonds alone, and 450 billion in india. Shery how long will they be confident . What sectors do they like . In india they like Telecom Communication companies. In indonesia, they Like Developers because cash flow is doing well and margins are fat compared to Chinese Developers and in the philippines they prefer to Utility Companies and the conglomerates. Shery is anything Morgan Stanley likes . They have cut china all the fundshe rise in offshore and markets. They prefer the very essentially on instead of the government. Wned smes in the private sector companies, they prefer lower yielding companies. Shery they are very cautious. We have already seen the numbers slowing down, the economy is actually shrinking. Thank you so much for that. The latest on Morgan Stanley. Asian stocks are on the decline before the boj and fed meets this week. The prospect for further japanese stimulus helping strengthen the yen from a threeweek low. Our next guest says there is a rising risk of a serious correction in equity markets. Join us is a founding partner. Take you so much for joining us this morning. Let me get started with china, the cousin was just talking with our correspondent and people are becoming more cautious there but we are seeing the headline figures improving for march. Was that just a seasonal blip . If you look at the underlying driver of those numbers, you would be scared. [laughter] shery they look good in the outside, but not so much when you dig in. Recovery, butke a look at the expansion, the ratios rising, the credit events, this is really a warning , the default in cases is a rising factor. Lets say, the macro number looks good, but how long does it last . That is the question. Is it really coming from export demand or investment demand or two thi the property things, thetwo property sector. The chinese are spending so much money on infrastructure. How much more can they spend on these . The issue is not the real demand, but the shift toward reform to demand side stimulus. Shery we have been talking about the sector and doing well, the economy seems to be shifting , and it is going in the right direction. We are now hearing they may not be heading cutting rates, less stimulus in that sense. Could this help the economy in the long run because the shift is going in the right direction . They are shifting at the right direction, trying to reform the capacity, but now the booming sector, the steel prices are rising and the steel mills are resuming production because they are making money now, so they do not need to reduce the capacity, and i think youre right, the Service Sector is a stable sector, but when you see china becoming less competitive, a lot of people will be laid off in manufacturing space. That is a key issue. Shery another problem in japan is also monetary policy, just pushing through despite many economist warnings, we have the decision coming up this week, a majority of them expecting to boost stimulus. Where do you stand there . I think they need to do something because after the first stretch of the stimulus, the markets reaction was negative, right . Shery backfiring. I think the key issue is people are not confident about the economic circumstance. If you look at and from flight inflation expectation, japan has wage increases where people can spend more money, but companies are keeping all of the cash and not giving wage increases. That is the problem. I think they need to do more things. Shery they need to do more than what it is already doing . They need to turn around when people are expecting with inflation. Shery how do you do that . The central bank is doing their own bidding. Shery is it about the government trying to restructure the rest of the economy . They both need to do that. The two bsc,t tboc, it is structural reform, supply reform and it is lacking. That is why we are very cautious on the outlook. Shery that is exactly what we are seeing in the u. S. As well, because we have this data coming out saying newhome sales are inht surprisingly the downside. Where do you see the fed going from here . I think based on the data, it will not raise this week in april, but i think we need to look at this carefully to gauge when they will do it may be in june because this is just before the vote, so they cannot do it before this. Shery what about the fundamentals of the u. S. Economy . Best, but lookhe at the retail sales. Global economy is really flattening. There is no power going ahead. Shery thank you so much for joining us. A very interesting look on the Global Economy today. Thank you so much. Now the stories making headlines around the world. China says it has reached a consensus with three neighboring countries over islands in dispute of waters. A deal was agreed on by the Prime Minister when he visited cambodia last week. The Ministry Says the territories are specific and do not pitch china against them as a whole. The briefing says the two sides agreed with the dialogue and international law. Tycoon may bee expelled from the upper house of parliament and the governments latest move to recover outstanding loans. The news comes after the Foreign Ministry revoked his diplomatic passport. Involvement on as much as 1. 4 billion in loans to his kingfisher airlines. Brazil has taken another step toward impeaching the president , a lifting a committee that will decide whether or not to approve her trial. Senators approve the panel which will meet later today. It has members from across the political spectrum, and up to 10 days to hear the president s defense and make the recommendation to the full senate. Opponents need only a simple majority to force her to step down temporarily. Journalists and 150 bureaus around the world, youre watching bloomberg news. Father worstsinos week since january and the slump shows no sign of a reversal. Trending business continues. Shery welcome back. Breaking news for you. Malaysias Sovereign Fund says it is in default of payment. This comes amid a dispute between abu dhabi. On 5. 5 in default notes amid a dispute with all fundobby abu dhabis and at a time when it is under investigation for 4 billion of questionable transactions. It will meet all other existing financial obligations, and one says the defaults were triggered andebt due in 2021, 2024 2039, and they have been under investigation for more than 4 billion of questionable transactions. We will have more on that later in the program. Casino stocks have had the worst week since january. Isy say the winning streak not meant to last. Give us some context, because i have heard you say this was temporary, that the slump was temporary and we would see some thisery soon, but is something we should be worried about . Context is an important word. It was a bad week of the stocks are up over 30 where they were three months ago. , even moreill down importantly, 70 where they had peaked in early 2014. We have gone through a twoyear part slumped and we are now in out, and of bottoming if we look at this point, earnings estimates have bottomed and evaluation is now at 10. 8 times, the measure we all look at, and you are going to have a pullback after you have had such a sharp rally from a low point. Not a huge surprise from the perspective. Shery what about all of the new resorts . They are concerned another 1600 tables come into the market, that could further put pressure on the casinos. No doubt. You have to think about supply versus demand. I think the 1600 tables is highly unlikely. That is what the four remaining that will besorts opened have asked for, but we know there is no way they are going to get that many. They make it 200 or 250 per resort, and they will reallocate tables around their existing properties. In the end, there is a real debate hollow about how can these new resorts help drive demand . We are emerging into a new resort destination, and what is core is driving the massmarket business, the nongaming business. Thatve a new report out addresses this issue. Shery again, the massmarket very important there. Thank you for that. Stay here for the latest on this casino. We will have more for you coming up on trending business, especially after malaysia prepares for the multibillion dollar contract. [ soft music ] e. T. Phone home. When you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Shoshow me more like this. E. Show me previously watched. Whats recommended for me. X1 makes it easy to find what you love. Call or go online and switch to x1. Only with xfinity. Shery the top stories trending this hour. Asian inch mark is falling for a third day. Sink beforeities meetings in the United States and japans. 27 Companies Report today, including canon. Of u. S. Limbing ahead stockpile data with west texas bankable 43. Lowest has seen its prices in three years and operating income fell 55 498 million. The south korean chipmaker depends on apple for about 10 of its revenue. Chip prices have almost have in the last year is slowing Global Growth if the demand for electronics. To buypposing has agreed companies. N piping biggest one of canadas independent energy companies. We now turn to heidi. Studies are a little bit mangled, although we are seeing broadly a bit of a downside picture. They are waiting for the trifecta of bank decisions. We are not expecting zero probability with the fed moving ahead with a rate hike. Japan, a select group of traders are expecting some sort of stimulus from governor kuroda on thursday. This is what we are seeing in the china open. Hong kong seeing a little bit of a but coming through, about. 4 . It is still retaining that wooden spoon as well as being the worst performing market. The yen starting to creep up with the nikkei down. 4 . Taiwan a little higher. A big week for central banks, a big week for earnings, and a big week for data as well. Ory are waiting on one thing another and that is flowing into sentiment. Check out the movement. We have a commodities rally that is moving along. It is up. 3 but it is far from retracing the monster 9 on wednesday. Two have of the big plunged almost 5 in the new rio session overnight with down by 2. 2 . Tescue is down by over 5 . This is what we see moving in the tokyo session. They have not pulled a profit in three years but we are seeing stock up 3 . Japanese steelworks was up to close 12 earlier which would have been the biggest gains since 2013. Theyeing weighed by are expecting a profit to that same amount. A little bit bewildering that japan steel is sing so much and it did raise is 2015 revenue by 4. 8 . Daiichi life is down after the gain today, expressing concerns of the earthquake. Shery saudi arabia performed the worst in weeks. Now this could be, what, the biggest ipo in the world . Julia they are saying it could exceed 2 trillion. We have a story on bloomberg that if saudi arabia sold this part, they could buy four of the Biggest Companies in the United States, microsoft, walmart, apple, and berkshire hathaway, and still have some cash over. Turned into a Public Holding company which will be at a later stage. It is a cheap valuation. 10 2 trillion of their violation would be at oil at 10 a barrel. It is for time. Be remnants of aramco will transferred to the sovereign world fun. It is the countrys reliance to try to get away from