Inanpacific markets are wait and see mode. Hillary clinton on the brink of history. Formally clinching the democratic nomination. ,ollow me on twitter rishaadtv hashtag, trendingbusiness. Kuala lumpur, singapore, and taipei all coming online. Welcome to the wednesday market party. Its looking more positive than half an hour ago. Waiting for malaysia and singapore to update. Taiwan up for tens of 1 . 1 ,ei 225 up by 4 10 of firstquarter gdp number, 1. 9 . The yen start to strengthen released, data was which did weigh on export stocks. A bit of a turnaround coming through there now. Flat, but aospi solid session tuesday as the won strengthens against the u. S. Dollar. Also ahead of the trade data out on thea, some weakness london metals exchange. A great host from those Energy Players in the region. We will expect that in hong kong as well when the market opens. New zealand has been in the red, down by a third of 1 for most of the session. , thanks toonal index the lead in japan stocks, the regional index higher, holding on to the sixweek highs, driven by gains in oil and gas players. A look at that crude price, Still Holding above 50 a barrel. Of this about supply concerns in nigeria pushing the oil price higher. More of a comeback in the gold price as well. A quick check on the Australian Dollar ahead of trade data out of china, weaker. April home sales coming through out of australia at the bottom of the hour. Rishaad china set to release major trade data in the hour. We will watch for indications of whether the trade slowdown has moderated or not. What we looking at. We have used this term consistently, stabilization. It has been used a lot with the chinese economy. Inflation numbers should further that argument. Lots of Economic Data due over the next couple of days. We get the trade numbers, followed by inflation tomorrow. This week, foreign direct investment. Yesterday, Foreign Exchange reserves. Lets talk about exports first. After the march aberration upwards for exports, they likely resume their downward trend in dollar terms. Outbound shipments have fallen year over year in nine out of the past 10 months. The prediction of most economistss for a fall of 4 . Upwards,hat aberration 11 point 4 , so stabilization since then. Theuse of the yuan violation last august, we have to look at trade figures in yuan terms, which china will release before the dollar terms. Terms, exports of moderated, but still expected to be in the plus territory for a third month in a row, but it is moderating quite a bit, one point 5 is the consensus estimate. Imports, we need to look at that for domestic demand gauge. They have been weaker, falling for 18 straight months in dollar terms, a pickup in Oil Prices May be lifting the numbers a bit. Nalysts had forecast a fall, but you can see it is better than previous months. We need to look at these import terms, whichan shows that the kleins year over if they wereas bad i priced in dollars. A 2 fall predicted in yuan terms. Rishaad we will have a detailed look at the chinese economy. Do tweet me at rishaadtv, include trendingbusiness. Hillary clinton has won the new. Ersey president ial primary this puts her over the threshold to secure the nomination. Whereget to new york, Bloomberg Politics has the latest. What are the implications here . We have known this is coming for several weeks now. Everybody thought Hillary Clinton was going to be the Presumptive Democratic nominee. Tonight is the night where she makes that more official. It wont be final until the Convention Next month, but tonight she has secured enough. Elegates to stand on the stage she is expected to take the stage in brooklyn later tonight and declare herself the presumptive nominee of the democratic party. It is a big deal. This is the first female presumptive nominee of a Major Political party in the united states, and she would deftly point that out on stage. She has set herself that this is a historic moment. She has said she will try to get Bernie Sanderss supporters on supporters sanders on her side. They have been gracious to the supporters. She will note the contribution he has made to this campaign. She is likely to have knowledge how much he has done and how far he has taken his campaign, and really give him credit for that. That is step number one. We expect her to reach out to by adoptingorters some of his message, maybe giving him a little bit of a role in the convention, may be campaigning with him on the trail. Off thisas not backed fight yet. He is still in this race. He still has to figure out what he will do next. There are a lot of moving parts, and the Clinton Campaign is trying to navigate these waters as sensitively as possible in the next few days. Rishaad donald trump in new york as well, this is some networks projecting a victory for him in south dakota. Well, really,en, really criticize for comments made about a federal judge. How does this play out now . It has been a rough week for donald trump here. It is because of these comments he made about this u. S. Federal judge. We saw a number of people, republicans, republican leaders, be very critical of him this weekend expressed their concern that he wasnt changing his campaign to fit the general election and the way that they had hoped, at least not yet. There have been a lot of calls get his act together and get his Campaign Together and start being a more president ial general election candidate. He has been very defiant. He has said that he has done nothing wrong. He has surrogates all over tv today defending him. He put out a statement that was very defensive today, but i has takene that he the stage tonight to talk about his campaign. They were setting it up. It looked like there were teleprompters, and that is not something he does. It is something more traditional candidates use. Maybe we will start to see him get the message and start shifting to more general election demeanor, but so far he has shown a reluctance to do that. Rishaad nice one. Great reporting from new york. Donald trump talking there. Hes trying to get some of these democrats on his side and broaden out his appeal. Saying that het will work hard to earn the support of democrats and has already shot off a salvo against Hillary Clinton, saying she has made some tremendous mistakes. The u. S. China Strategic Dialogue taking place in beijing. Thing seemingly concrete is further internationalization of the chinese currency. A little bit of agreement on the front there. They have agreed to give the currency a foothold in america, but spar over steel and aluminum. China said it would like institutions to raise 40 billion in the u. S. To be invested in china. It will also allow an unidentified American Bank to clear transactions outside the with the jack lew saying participation in the market opens an important door. At the same time, some hurdles remain. There was mixed progress made when it came to u. S. Efforts to get china to cut overcapacity that americans claim is distorting markets. They are disappointed on the lack of consensus on aluminum. Are chasing those Chinese Tourists dollars overseas as the slowdown in china hurts luxury sales hard. Million,e fell to 379 which did miss estimates. The Worlds Largest publicly lames a lack of enthusiasm and a decline of tourism. Sales grew by 26 . Thats for new or markets such as the united states, taiwan, and south korea. Efforts to grow beyond mainland china, hong kong, macau may bring little benefit for now. It may be tough to get this mainland tourists to buy hong kong jewelry as opposed to an International Brand when they are abroad. Take a look at toyota, more bumps in the road, the luxury lexus brand has received complaints from owners about malfunctioning onboard navigation systems. The complaints came from the chicago area and across southern states. Many asking if toyota was being hacked. Beeny said systems have disrupted and have not found the cause. Radios. E also affects the company has not decided whether the vehicles or app will need to return to dealerships. Rishaad coming up later, seeking 1 billion startup here at why hong kong is in search of its unicorn. Next guest is inflation could lead to another cut in the coming months. This is bloomberg. , lets get back to whats going on market wise. Live from melbourne, great to see you. What do we look at today in particular . We have seen the jobs report, what janet yellen has had to say, the rba yesterday standing pat. Are they done in your view . , my view would be no. If you look at where the inflation is tracking throughout the second quarter, it is still weak. The most recent report from the tdmi monthly inflation gauge in 1 yeara has dropped to. N year inflation i would think that would be a pretty good case for an inflation targeted focus Central Banks such as the rba to cut rates again in august. Is a good case to see even a second cut again before the year is out, so we are calling for two rate cuts and australia. The key thing is that beneath some of the stronger gdp figures and employment figures, there is a lot of weakness in the economy. Firstquarter gdp report was driven by exports, and a huge part of that was associated with the pickup and stimulus in china and increased demand for commodities over there. Rishaad i want to put it to you that we have seen Central Banks cut, cut, cut Interest Rates, and still no inflation has materialized. Why should it be different for australia here . Is that the real and just rate, if you have a policy rate significantly higher than where inflation is tracking, that causes real pressure on the economy in that there is less demand for loan demand to invest some of that capital in the economy, so the issue is those real inflation rates as you see the headline inflation rate dropping well below where the policy rates are, that creates its own brakes on the economy, so that is the real concern there. And australia, that is a growing concern as well despite the fact that we have not seen a noticeable uptick in inflation. Its the way Central Banks need to manage their policy rates with regards to an inflation targeting framework. Are they comfortable with where the aussie dollar is at the moment . Ahead, hopefully we will be getting trade data out of china as well, which normally has a profound impact on where your currency is going. Thats right. Seen asie dollar has massive jump over the past 24 hours in the wake of that statement. I think it may have gotten ahead of itself given that we still expect to more rate cuts from the rba, but certainly we have benefited from the weakness in the u. S. Dollar overnight. The chinese data today will be closely followed and australia, and the key data point will be imports growth. Whilst we still expected to be an negative year on year territory, the market expectation is for that negative percentage growth to have been trimmed from the prior month, and there is increasing signs that there may have been a bit of a step up in demand in china over the past week or two for commodities. We have seen Commodity Prices bounce back a bit, iron ore prices gaining over the past couple of days. The chinese iron ore imports will be a key component of that chinese trade data report today. It could have a big bearing on where the aussie dollar trades. Well, absolutely, and many other people looking at the export side of trade data as well. It should be a snapshot of the Global Economy as well. Certainly. Is also expected to be in negative year on year territory, and it does not look like there has been a dramatic pickup in Global Demand to boost chinese exports that substantially, so theres probably not a lot of hope in there. Ishink the main takeaway that we should see the trade balance expand again in china, and that should help the foreignexchange reserves somewhat, cushion the blow, if you will. Reserve decline for the first time in two months. A lot of that reflecting the u. S. Dollar that we have seen as of late. Rishaad lets have a look at new zealand and the central bank there. Auckland Housing Market before it makes a Rate Decision they are which i believe is on thursday. Thats right. We have the interest Rate Decision tomorrow. Certainly we are looking towards a rate cut, but it is a close decision. You have these two very different forces driving the bank, low inflation almost on deflation, very high Interest Rates in the country, but at the same time, we have been seeing housing activity pickup and new zealand, house prices gaining steadily throughout the year, and house sales jumping noticeably, so there is some concern that rate cuts could spur that housing bubble that we are seeing across new zealand, but most particularly centered and auckland. Inflationtargeting central bank, and theres a good chance of them cutting rates once or twice more this year given the way inflation is looking in the country. Rishaad joining us from melbourne. Some stories making headlines around the world. The king of thailand has ever gone surgery. The palace confirmed that the king has coronary Artery Disease and says the procedure was satisfactory. The 88 year old the worlds longest reigning monarch and was admitted to a hospital a year ago from a lung infection. He is also suffering from fluid on the brain and a knee problem. Words overas called fear of bird flu. Birds over fear of bird flu. Authorities expect 5000 birds to ulled and the market has been closed. Sluggish corporate spending and major economy such as the u. S. And japan, global gdp has been forecast to drop this year. Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. I am yvonne man. Up, chinaell, coming and the u. S. Find Common Ground on the currency after two days of talks. We will dig deeper into the yuan s fortunes. That is next in trending business. Rishaad you are back with trending business. Point 5593 6. 5593 against the u. S. Dollar, the biggest twoday decline since february. Lets have a look at the story in chart form. Some relief with that stronger fixing. That thesome concern pboc is going down the road of deflation. The yuan has fallen against that basket of currencies. That is that white line here, the bloomberg replica. Against the basket of currencies is the lowest since october 2014. All of this on the back of the drop we saw in may of 1. 6 , the biggest monthly decline since that august evaluation and certainly stoked some concerns that we are seeing depreciation. Part of this is the dollar story. Stronger against the u. S. Dollar, weaker against the basket, allowing them to control outflows while benefiting exporters. Ist we are getting now volatility when it comes to the yuan. Take a look at how this is impacting chinas reserves, that weaker yuan, stronger dollar effect is playing out. Thand a slightly more expected decline in may, falling to the lowest levels since may 2011, and although we have seen stability, we have seen the decline in those reserves, coming down 20 . Falling from 4 trillion and 24 in 2014. Rishaad trending business back after this very short break. A look at our top stories. Hillary clinton claiming the big prize, beating Bernie Sanders in new jersey. She will wrap up the democratic nomination. Arrival trying to steal some thunder by winning in california. It is a tight race. Japans economy growing slightly more than reported. At 1. 9 nding annualized, giving some relief after the postponement of the sales tax hike. Latest trade data from china due out in the next half hour. U. S. And china agreeing to give the yuan a foothold in america. In beijing talks ending, china saying it would let foreign institutions raise 40 billion in the u. S. To be invested in china and would allow an American Bank to clear yuan transactions outside the mainland. Right, that key may trade data due out. Having a look at the open in hong kong and shanghai. , and a little bit of a negative open in hong kong and china. It is the last trading day of the week for the ashare market. The hang seng opening lower by 2 10 of 1 . We are seeing a bit of a switch even though we have seen that oil price above 50 a barrel. Onhay pacific doing well that oil price. The shanghai market down on open. Korea flat, but the won continues to strengthen against the dollar. It has been a choppy session in japan on the back of that First Quarter gdp number, pretty flat on the nikkei 225. We have seen the yen strength in a little. That has weighed on export stocks. The philippines coming on line the tune of 2 10 of 1 . Bit of a switch out and new zealand. In new zealand to some stocks we are watching in the region. A luxury jeweler coming through with earnings after the ballot hong kong yesterday. It was weaker than expected. Expected to be targeting Chinese Tourists abroad. The share price down 1 in the open. Merchant hyundai falling significantly after announcing a plan to issue shares for a debt swap. Rise, butid actually we do have another bearish call coming through on iron ore, bhp and rio tinto falling today. Bucking the trend there a little bit. We have some breaking news out of australia ahead, the aussie dollar weaker. Rishaad it has been on a tear in the last 24 hours, now giving up gains. Home loan approvals for april, pointmber of loans up one 7 , below what analysts and economists had been calculating, 2. 5 . It follows on the back of a drop march. Under 1 in the this could all change when we get trade data in the hour. China set to release all that. The aussie dollar often reacts. We will have a look at the indications of an economic slowdown and whether they have moderated or not. We have been delving into this. Heels off of the , where trade was at the forefront, the value of the renminbi being devalued last august. We will look f