So, the regional benchmark still heading for a weekly loss. Rise onaintains its fears of supply. Threateningnes is to close down polluting mines. You can let us know what you think by following me on twitter. Dont forget to include trendingbusiness. That china and hong kong markets underway in 30 minutes, but singapore and malaysia have just come online. Poised for a flat finish at best. That said, we are. 5 away, flash session across asia. As the countryd shuts its markets. Indonesia is also closed. You see the yen weakened a little bit. It is seeing the most pronounced move compared to where the trough was. Its all coming off a threeday slide, so there is value created over the last few days. Flat comparedite to the 10 day average. The rest of asia, looking at cautious and tight trading ranges ahead of the u. S. Jobs report. Lets have a look at currency markets. The story is about a drop in the u. S. Dollar. Have a look at how it is doing against the pound, falling against the euro. A decent bed as well for the aussie dollar. Valoryen valoryen at. 7506. 10 year yields in japan at a record low. Hi level talks on the yen underway in japan as the latest data shows the current account balance narrowed in may. Lets start with the surplus. It was higher than expected. Rosalind thats right. For one pointas seven ¥5 trillion, and came in at one point ¥8 trillion, better than expected, but still a fall in the surplus. Whether that is better or worse depends on your stance. From month to month, not much change. The part made up from goods and ¥295 billion. From the primary income rose slightly, including money repatriated back to japan. The current account balance dead mero 2. 4 year on year, the first time in two years the account balance hasnt narrowed. , japanernal factors yenrts, brexit vote, strong , and of course the fed is about to the chances of increasing rates in the u. S. Decreasing. There is also the u. S. Payroll numbers later today. Cash earnings for japan rose 0. 2 because they were adjusted, but labor cash earnings fell 0. 2 year on year. A quick mention of the meeting , that is ahead of the jobs data coming out of the u. S. Angie thank you so much for that. Lets take a look at some other stories we are watching. It looks like rags it is melting s brexit is melting tata steals plan. They have put a temporary hold on selling their u. K. Business. Bidders have pulled out because of the uncertainty created by brexit. However, they still want to offload these ads that these assets. They will hold a Board Meeting to discuss how to proceed. Britain still industry has been hurt by costs. This led to their decision to sell off their u. K. Operations. Alibaba is hoping to return to health after china scrapped their plans to use its technology to fight fake medications. To build a plans commercial platform that could use that same technology to track the origins of products for consumers concerned about safety. Losses,e seen mounting the share price has fallen to record lows when that drug traffic system was halted. The Company Wants to spend a big to invest in this business. The companys boat to bloomberg and said it is a huge market at an early stage and not were slowing down their pace of goldman simply because of money. Group of koreas lotte companies are down after a travel ban was imposed on the company founder. She was arrested on thursday on charges of bribery and investment. Investigators have been stepping up investigations into the alleged corruption within the family. Shopping coming off those confectionery down by 1 in the early session. Putting australias triple a status on watch, they followed up by doing the same for the big four banks. All allen has the latest. What is the Market Reaction . It is a mixed picture. If we run through those big four it is a mixed bag. Not going to pretend that i know how to decode that for you. Lets stick with what we do know. Surprise a huge that s p made these announcements. They typically keep the banks below the sovereign credit rating. To paraphrase s p, they say we would expect to downgrade these entities if we lower the Sovereign Rating. The reason why the Sovereign Rating is on negative watches because of that very tight election over the weekend. It is likely what ever government will have a weak hand, meaning wider deficits to put pressure on that rating. Angie speaking of which, the vote counting continues in australia. It looks like the government is finally closing in on reelection. The week grinds on, the picture gets clear, and now we have the coalition on 73 seats. Ae magic number is 76 to form majority government. They got a boost yesterday from a colorful character with a large electorate in northern australia. He says he will support the coalition, so they are getting closer. Labourosition party, 67 seats, still too close to call. Proudly sayinge the coalition has 74 seats in the bank. He thinks they are good for three more and went on to describe the government as an election winning machine. That is perhaps overstating the matter, but it does look like a backnment is likely to get in with a waferthen working majority. Angie thanks. On our website, chinese fund of his cashput half back into stocks. That is on bloomberg. Com asia. Check it out. Net incomes have taken a tumble for one of hong kongs most successful makeup companies. Is it time for some cosmetic surgery . We will hear from the cfo. Next, predicting a limited impact, j. P. Morgans take on how the uks decision to leave the eu could play out in asia. This is bloomberg. Angie lets check again on the markets. It is kind of quiet out there, except for what is happening in your neck of the woods. Can you hear me . I think were having a little issue. Ok. You can hear me. Is quiete saying, it in the markets right now except that ratings outlook downgrade and the banks in australia. Not overly surprising given the ratings watch put in place. They areust saying watching closely what will happen with the government and what they would will do with debt levels, consolidate the budget or not. Levels have rocketed pretty quickly since 2008, 20 . That is generally a trigger when you see a ratings downgrade. The impact on the markets will not be as severe as currently thought of. Ppens,av t i that means they have to counteract debt by cutting rates further to keep lending going in the economy. Angie that is not what we are seeing. People looking for yield still go into australia. In fact, driving yields down there. Oursis new environment of it seems that is what is happening. You shrug off these ratings downgrades. Pretty much. Its a response to what we have seen around the world. Rate cuts from the bank of england, more easing from japan and the ecb, and again the market not pricing anything in from the fed this year. All that puts downward pressure on yields. An increasedg chance of a little snap back if the nonfarm payrolls are better than expected. These are very extreme positions right now and a lot of caution that should go with that. I think yields will be held down because of all the monetary easing. Ofre is a deficit in terms the bonds out there that will keep them lower, but at the same time, you might see more inflation in the u. S. Global bond markets are linked, and that my drag up austrian bonds a little bit. Is you thinkiew you will see a rate rise from the Federal Reserve this year . We think it is still in the cards. We believe the u. S. Economy is still very strong. We look at the consumer. You are seeing general pickup and confidence, wages start to improve a little bit, jobs being added to the economy, granted the last nonfarm payrolls number was week, that we might see that bounceback. For fewer jobs being added to the economy as the labor market tightens, but they are still being added, adding to that good Consumer Outlook which drives the economy. We still think we can see 2 growth out of the u. S. This year. All that leads us to believe you will see the fed hike at the end of this year. They may wait until after the elections. Angie what is your outlook for . Sia despite the brexit will we see an impact here . Rock inlike dropping a a pool of water. Thats kind of what we are seeing with brexit, big pain in the u. K. , not so much elsewhere in the world. The reliance on bank lending has decreased since the Global Financial crisis, so that contagion effect is limited. The big risks are lyrical and investor sentiment. Political and investor sentiment. The rise in the u. S. Dollar and flows out of emerging markets are where the real contagion could be. It could be a few years before will playw brexit out. In the meantime, economies around the world are looking pretty decent, u. S. Growing, European Union getting better, becomingslowing, but more manageable, so the outlook to the Global Economy is still quite stable. Still china slowing, but if that u. S. Dollar goes weaker, it does provide a reprieve for the pboc. We will leave it there. The latest first word headlines. Taiwan has close financial markets, offices, and schools as a typhoon sweeps across the island. It has sustained wind of 200 kilometers an hour. Taiwans China Airlines canceled all flights and highspeed Rail Services are suspended until late afternoon. The philippines has also suspended the new philippine environment secretary says all mines that fail checks will be closed down. Overs will be carried out the next month and could see polluting mines forced out of business. The philippines is the leading source of nickel and supplies almost all of chinas imports. Prices surged after the investigation was announced. Is thisthere been is be more important than the lives of our people . I will not allow it to happen. Relevance does stock markets have with your people . , the welfarewe do of our people must be paramount. The state department has announced the resumption of its inquiry into Hillary Clintons use of private email when she was secretary of state. The news comes after the fbi and wouldey general said she not face any charges. The Associated Press said the department is opening an investigation now that it is not getting in the way of other inquiries. The u. K. Is to get it second female Prime Minister with the race down to two candidates. Conservative Party Members will choose theresa may or the Energy Minister as the person who will lead the country out of the European Union. In a voteve came last among mps and was eliminated. His colleague Boris Johnson did not stand. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Coming up, the heat is on with the Singapore Dollar on a high, will the Monetary Authority step in . We will take a look at the likelihood of further easing, next. This is bloomberg. Angie this is trending business. Our Southeast Asia correspondent joins us now. Are we looking at monetary easing here . Yes, looking for monetary easing at the next policy meeting. The strong Singapore Dollar a cause for concern, stronger against most major currencies in the world, 14 against the pound, 5 against the u. S. Dollar, 4 against the swedish krona. Investors taking cover. It is a safe haven because of its top credit rating. Ago, it was a completely different story. The Singapore Dollar was among the worst performers in the region because of its income it of its economic indicators. That has not changed. A strong Singapore Dollar spells into of trouble, putting question inflation forecast, and thats why they are bracing for monetary easing in the coming months. So, watch this space. Angie how badly has singapore been hurt by the global slowdown and brexit . Complicates things for singapore, adding to pressure. Growth has been on the decline, Consumer Prices have fallen, nonoil exports forecast to drop this year. It looked gloomy enough back in april that the central bank adopted a neutral policy, zero appreciation, something it has not done outside of a recession. Singapore is expected to be among the hardest hit and asia by brexit. Singapores economy is open and exposed. The impact of brexit should not be underestimated, so again, look out for monetary easing. Bloomberg surveys is looking to the currency dropping. Angie which Singapore Companies are getting hurt by brexit . Uncertainty is created by brexit. , analystesidence trust already estimating a drop in annual share earnings by 3 over the past month. Is also being viewed as bad news for Global Energy demand, downgrades hitting a rig builder, grappling with an a number ofso quite Singapore Companies are expected. O be hit i brexit by brexit angie the stories making headlines. Investmenttate Company Assets fell for the first time in seven years. To 9 to 180ped billion in the last fiscal period. The firm has been cutting exposure to banks. Dannone trying to drum up its 10 billion takeover of white wave foods. Deal since largest the uks vote to leave the European Union roiled credit markets. More banks will likely be brought on board as early as next week. The chinese president is putting more of the state in state owned enterprises. A closer look. This is bloomberg. Angie the top stories trending this hour. Asian stocks headed for a weekly decline as investors wait for the u. S. Jobs report. Energy shares falling after crude hit a twomonth low on renewed fears of oversupply in america. Japanese policy makers meeting to discuss global turmoil and the ends strength. Shares and australias take for banks are mixed after s p revise their outlook from stable to negative. Their credite ratings remain at aa minus. There are worries about ballooning budget deficits. Game on,shares, jumping the most since march last year in tokyo on the success of a new mobile game. It was released just this week. The augmented reality game has players finding and capturing the imaginary creatures in realworld settings. We are sticking to the real world. The markettoring opens in shanghai and hong kong. Before i get to the markets, a lot of data out of china. That we get the jobs report tonight and this list on your screen from sunday into friday next week. Set of data does come in worse than expected, shanghais news security reporting that a rate cut might be an option for policymakers to turn to as far as the response is concerned. Markets looking like this. We are looking at a mild weekly drop. Markets are a bit mixed, flat on the regional benchmark. Japan up for the first time in weaker yen. Lightly that said, a cross currency markets, a drop in the u. S. Dollar against most, oil on the back foot as with gold prices. Nothing extreme though i should note. That me wrap things up with a look at hsbc, shares are down. S p cuttingown to the outlook or creditwatch hsbc, as with other banks in the u. K. , rbs, royal bank of scotland, and barclays. Hong kong listed shares paring back from the lower close. 10, 13, and seven, by hold and sell. From whereut an 8 we are. Angie chinas Foreign Exchange reserves rose last month. We have more. Reserves have been falling as china tried to keep the yuan stable. We saw late last year after china haduation that to defend the currency, spending 513 billion dollars trying to defend it, so that whittle down 3. 21 in the last month, which was an increase of 13 billion. Last year saw the First Time Since 1992 that they had a full year annual drop. We have been seeing its that the again, but it has stabilized. It has actually gone up in the last month. You have two factors in june, brexit and china in their fx reserves has yen, and the yen appreciated. They also have the pound, so keep that in mind, but also you have indications that the pboc is not intervening as much, basically allowing the yuan to weekend. Angie what does this mean for the yuan . It looks as though the authorities are ok with allowing it to slowly depreciate it they dont like the reaction they got after that one off devaluation. Help as the chinese economy is slowing down, but they dont want to much appreciation. It could spark trade friction. Beijing apparently has a buys for depreciation due to the weaker economy which will lead to more outflows and pressure the reserves in the second half. Angie so far capital outflows from china have stabilize . Yeah, that is the interesting thing. If you have a weaker currency, people run for the exits. It wasnt all caps off capital flight, but there was some , one trillion and outflows, some of that capital flight, and now what we are seeing is the outflows have stabilized while yuan the yuan is weakening. Economists say this is a good development, which means that pboc can continue to allow the further depreciation without triggering market panic. Angie dont panic. Dont panic. Angie keep calm. Carry on. The chinese president xi jinping is putting more state in state owned enterprises, giving the communist party and a greater say in a sector worth 18 trillion. Malcom scott is here. What has changed. Havent state owned companies always had to listen to the party . The main thing is that it has become far more explicit. We have companies that have added a new section to their articles, which basically state that it is all around party building, far more explicit that the managers and the board has to listen to these party committees, especially when making Big Decisions around key parts of their business. Its not just them. A whole range of state owned enterprises are reasserting the power of the party committee. Angie isnt this a little concerning . We did not think it was a party strengthening its own say in the state owned companies when they were talking about reform. If you think the hands off ism the party there another camp that says this is all about the party ramming through some of these state owned enterprise reforms that perhaps have been blocked by reluctant management, but it certainly seems that the state and the premier and the president wants a bigge