Face a similar shock to the collapse of lehman brothers. Thinks over all risks are under control. Up by 7. 5 . Course, you can always let us having a look at the, starting to weaken after an erratic know what you think of our top stories. Follow me on twitter rishaadtv, session on those cpi numbers use trendingbusiness. That came through. The last trading day of the pretty steady, but weaker week. We are ending on a high note. Against the dollar. 109. 82. Quite a good rally a boost to Japanese Equities as coming through. Well. Rishaad a summit communique despite that unconvincing lead saying leaders are committed to a coordinated response to Global Economic conditions. We are at the summit. How has the mood been that these talks as they conclude . They have been mixed so far. You are seeing different , differentiews domestic issues and political interests involving these nations. The french president did show some sympathy on the economic abeicies that shinzo o brought forward. Germany has disagreed on the words like crisis. Combing through the policy communique, we dont see that much mention or focus on the word crisis, so maybe not going as far as what abe had mentioned about a lehmanlike crisis looming if proper measures are not taken. Is similar to the language we saw during the finance chiefs meeting, taking a choose your own path kind of response. They commit to a stronger coordinated response to economic conditions. Reaffirm the importance of not just Monetary Policy, but all policy tools, fiscal, monetary, and structural policies. We do see that they did talk saying excessively disorderly currency moves have a bad effect on the economy. This is according to angle of german chancellor Angela Merkel , there is broad agreement. Terrorism,l risks, brexit, refugee crisis. They could be a further serious risk to growth. We are seeing more of a coordinated response from g7 leaders, saying they have strengthened their Economic Resilience to avoid another crisis. They did mention and reiterate that Monetary Policy a loan cannot lead to sustainable growth. Hear a lot of Strong Language coming from Prime Minister shinzo abe. What does this mean in terms of the domestic policies in japan . Local reports are saying the delay in the sales tax could last as long as two years, and we could be expecting some kind of announcement on this next week. You have to read between the lines. You did mention maiman crisis. That is the buzzword here. He said time and time again that he would only push out and delay the sales tax hike if there is a lehman crisis or major earthquake. How itt continue to see plays out here in japan domestically. Rishaad thank you. That making headlines again with beijing saying it has plenty of making headlines again with beijing saying it has plenty of room. Who knew . Problem. Ll is a if you break it down, things like corporate debt, local Government Debt, still big issues for china, but the Central Government level with debt to gdp below 40 gives them room to borrow more and spend more on infrastructure. They do say that the local Government Debt is a problem. They flag to that as a concern, saying its becoming more difficult for local governments to pay down their debt. Then of course if you take all of that, household, corporate, and Government Debt together, 282 debt to gdp. China is also a creditor as well as as borrower, and it is one of the biggest creditors it was the secondbiggest u in terms of ranking, but it has been pushed down by germany. Than 2. 8 trillion for japan. Those nete reason why foreign assets have come off slightly and china is because they had to sell around 500 billion of their fx reserves to shore up the yuan postaugust imposed january. Capital outflows, those have destabilized to some degree, but around a trillion dollars for outflows for china towards the end of last year. Policy makers taking steps to rein those in. There is a consensus that china will overtake japan as the worlds number one creditor in the nottoodistant future, and there is a change now. The private sector and state owned enterprises are the ones snapping up foreign assets, u. K. , australia, and the u. S. Rishaad thank you very much indeed for that. Lets get to a major victory for google. Some of the other stories as well. Rosalind it has taken six years, but google has won a 9 billion court case over the use of oracle java programming language. Oracle claims google needed a license. Jurors rejected the argument and concluded that google made a fair use of java under copyright law. Oracle plans to appeal, but legal experts say overturning the decision will be difficult. Extended trading report that it rejected a takeover offer earlier this year, the wall street journal says valeant turned down an offer. It has been under scrutiny over its Business Model and drug pricing practices. The bid may not have included a firm price and the companies are not in talks. I oncepresident of 7 a Growth Strategy and plan to be announced by the end of the timeline in 100 days. It comes after his appointment was improved by shareholders. They have several underperforming businesses and are key to expand in the u. S. Once less profitable units restructured or sold off. Rishaad still to come, battle lines drawn in the race for ride sharing supremacy. The main players in this burgeoning industry with their bigname backers as well. Our next guest says chinas mounting debt problem does pose a threat to the countrys social stability. This is trending business. Right, asian Equities Trading to the upside. Investors are waiting for comments from janet yellen to see the timing of the nats rate hike the next rate hike. Great to see you. Tell me something. What is occupying your time right now . Is that this constant talk about june in the u. S. . It is the subject of discussion has our geopolitical issues generally. Clients here are quite encouraged by the movement of equity markets around the world and the removal of some uncertainty about what is happening politically in the ,. S. , but being in australia there is constantly and i on china, the debt situation there and where china is going to go. We are asiapacific focus. Focused. It was a bit bazaar of china sending out the message that that is not really an issue. To beses some eyebrows raise, doesnt it . We talked about the Portfolio Position we have taken, and while we are invested in chinese and hong kong equities, we have decided to take no position in chinese rank debt. It is an opportunity, but one we prefer to forgo. One of the chinese banks is raising money in australia. The market,ally tap but we are going to stand back a bit, because it some stage it will be a debt blowout. How they respond to it politically and socially is very important. Reading your research, it was quite interesting that because you do mention the prospect of the spec or or tor of social discontent, what would be the capitalist catalyst for that . I dont know what the catalyst would be. S. Dont think anybody know is very for power interesting. It was a different cocktail in the 1960s. The power was being passed to the people and not the military, relying on the populist to deal with cultural and internal issues. This is the opposite. This is not analogous to that at all. But he is the next most powerful leader after mao, and we have to watch his every action. Hasaad one of the actions been the statement saying that japan has been acting in a petty manner to paraphrase what they have been saying. To japan, they seem to be, well, unable to get there in economy going at all. Tell me what is going on there. We have this possible delay in the sales tax hike, something most economists say should happen. Where does this leave abenomics . Very difficult questions, but i will make two points. And its growth will actually contribute or detract from what happens in japan. If china Growth Continues to improve, that is a big positive for japanese exports. We have to hope that occurs. Hand, we have to watch the japanese debt situation, but mustnt confuse their large debt problem with that of china or the United States. The japanese one is unique, one third of the National Debt is owned by the bank of japan. Yes, that could be monetized. There are a lot of things the japanese can do because the debt is there owning contained within japan, so we cant just look at statistics and say their jet to high, debt to gdp is too but there are Many Possible Solutions to that that countries like the United States and the dont have. Rishaad moving the yen weaker is not going to solve it, is it . No, its not. I wouldnt hope to predict movements in the, because it is bizarre. Rates in japan are going to be low for many years, so putting money into japan for any sort of interestrate pickup is not on the cards, not an option for investors. Our investors have no interest because japanese security yield nothing. About Japanese Equities . Japanese equities or another story. If wemart kleins ask us should invest on a hedge basis, should we buy the index, futures on the index, and not have the exposure. That is the way to play it if you want to be there. I do not want to be there, because it is to hard to predict what the nikkei is going to do because it moves and direct office a correlation to currency, and i dont know where the currency is going. We dont need to play there and tell we get a better read on the chinese growth outlook. Is, whereasy question is the money going then . What are you advising clients . Here in australia, we are spending more time looking at japanese capital flows into australia. Investingjapanese are equity capital, not in japan, in the asiapacific region, and more and more transactions are starting to point to greater flows from japan into australia, because we have enormous opportunities here and we are in their time zone, so we have to continue to watch that. That will be the flow of interest to us. Its not just the commodity flows that have affected chinese trade flows with australia. There are other flows to have nothing to do with commodities, and many of these are to do with japan, and Financial Services will be one of them. At some stage, they will start to make acquisitions down here, and we need to watch that and be ready for it because it is highly predictable. Rishaad great talking to you. Have a fantastic weekend. These are the stories making headlines around the world. Upald trump has picked enough backing to clinch the republican nomination. The Associated Press that a small number of unbound delegates said they will support trump, putting him over the top. Named atw be formally the Party Convention in cleveland in july. Leaders have been mulling a potential Trump White House victory. President obama said concern was expressed if donald trump were to win in november. They are paying very close attention to this election. Say thatt is fair to they are surprised by the republican nominee. They are not sure how seriously to take some of his pronouncements, but they are rattled by him. Many of the countries in our world, beautiful world, have been absolutely abusing us and taking advantage of us, so they are rattled in a friendly way. We will have great relationships with these countries. If they are rattled in a friendly away, thats a good thing, not a bad thing. The incoming president of the philippines is set to face costlier debt next month, when the central bank will start deposit auctions to soak up excess cash from overseas workers. One key challenge will be to convince investors of his economics credentials and manage a deficit that has quadrupled. Police and demonstrators clashed in paris against new labor laws spread across france. Electricity workers walked out in support. The government vowed not to back down. The new law allows companies to negotiate for a longer work week and gives management greater freedom to reduce pay. Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. Coming up, the probe into the biggest cyber heist in history, as many as 12 banks could of been hacked. Details coming up right after this. Rishaad you are back with trending business. I am rishaad salamat. Stole 81 million. Investigators examining possible breaches and Southeast Asia and new zealand. It does seem to be that these attempts are confined to where you are correspondent. Always interesting in my part of the world. The philippines, vietnam, and new zealand. What we know is that several eye tocontacted fire i t help investigate. We dont know if any money was taken. Its just a more serious attempt to hack into the financial system. The response says the global newent system, emergence of compromise, is not surprising as banks undertake rigorous reviews. Many may turn out to be false positives. Still, however you look at it, it gets to the heart of banking. Scary, if you ask me. How can banks ensure the safety of their networks . I guess they are asking themselves this question. Are putting a lot of pressure on swifter to prevent future incidents. Attention toss security surrounding how member banks were connecting, and that has to change. ,ach bank has its own code levels of technology and sophistication, and even banks in the u. S. And u. K. Are pushing for discussions with swift. You can totally see why. Policy, regulators, financial institutions, stepping up scrutiny of Cyber Security of the Swift Payment system. It has been quite a wakeup call. Rishaad thanks very much indeed. Just taking a look at what is going on with the Cyber Attacks on banks. Central bankhi being that number one target. Ata has become a takeover target, but will it bring an end to their troubles . The start of the trading day in hong kong, shanghai is positive. Okay, ready . Whoa [ explosion ] nothing should get in the way of the things you love. Get americas fastest internet. Only from xfinity. A look at our top stories, asian markets extending the rally, regional benchmark index for its first weekly advance this month. Apanese stocks lifted by possible delay on a sales tax hike. Also waiting for Janet Yellens speech, looking for any clues on the timing of the next fed reserve rate hike. G7 summit winding up, communicate saying leaders are committed to a coordinated response to Global Economic conditions. The group feels that Monetary Policy alone is not enough. Japan said the world is at risk of falling into crisis. Shinzo abe saying the Global Economy could face a shock similar to the collapse of lehman brothers. Saying overall risks are under control and can add leverage gradually with it debt to gdp level around 39 . More than 100 cities across the country have debt a good than the Global Economy. The shanghai open. Banging in line with what futures were suggesting, a little dip coming through and shanghai, down 2 10 of 1 . Hong kong looking flat on its open. Lenovo falling in response to its fourthquarter numbers coming through yesterday. The nikkei 225 still up 4 10 ofo gains, 1 . A similar gain in australia. Doings in Southeast Asia quite well. The philippines online with 2 10 of 1 gain. We are on track for the first weekly gain on the regional index for the month of may. It is the last full trading month of week of the month, and we are seeing every sector moving higher on the regional index. Good reports coming through from oil and gas stocks, even though we saw crude fall below that 50 a barrel mark. The oneyear chart of lenovo, down 37 year to date, and it is coming under pressure and early trade today. Fourthquarter revenue dropping by 19 . That, but 4. 90 in the early session in hong kong. Rishaad thanks. We will stay with lenovo. She interviewed the cfo after results were released. She is with me now. Tell me all about this. What did he have to say . Were predicting a tough corridor, and it was worse than they expected. That wehim for this i are in a transition phase, learning, still trying to figure things out. They admitted that they have a lot to work on in the smartphone business with the integration of lenovo and motorola not going as well as plan. Lets take a listen. The smartphone business is our core business. The smartphone business is different from the pc, and probably take longer to build a foundation. , we wouldand china deftly want to build on product brand and distribution to make the smartphone a more healthy and Sustainable Business for us. A prettythey have Strong Foundation in the core pc business, that certainly does not exist in their smartphone business. They need to work on building up. You alludedorola as to there as well. There must be some bright spots. There is a little bit. Their data server business has been growing faster than other parts, which is good, but still very small. They are also investing in emerging technology. This summer, they will be the googleompany with technology in bedded inside it. They think it will be enough to differentiate them. Stock can see from the market this morning, investors are not optimistic. They are facing a lot of headwinds. Rishaad structural problems. Theres nothing cyclical about this. Exactly. Rishaad breaking news, industrial profits in china up 4. 2 in april. We did have an estimate for this, but we saw march profits go up by a 11. 1 . 502 billion yuan, april industrial profits coming through here. 4. 2 of year on year. Takata giving back some of thursdays gains, shares soared by the limit as kkr is considering a takeover. We are live from tokyo looking at this. Is on its knees following this disaster, why would kkr be interested . If we look at the share price ta, it is trading 1 10 of its peak in 2007. Kkr. A bargain price for despite the scandals and recalls