and drink scene, we have a special report from vietnam, which is about asia and their growing liking of milk. >> and i am david inglis. how do you describe what is happening? far, we had aso weekly coming from wall street on friday. there are a few key themes. it is better than expected. indonesia, of course, reopening after being closed for a few days, and inflation coming out at noon. are expecting 400 million u.s. dollars. and let me just and with a look at china. seng, their ego, up

about one third. not really a good sign. then again, the pboc coming out. and they are looking at doing what is called targeted easing. above the 2200 level there. anyway, i will be back later on. >> thanks, david. increase, china central bank has given another indication it will hold off on any major stimulus. let's bring in our bloomberg china economy editor. what does this say about the state of the china economy here? actually saying things are not about to collapse at all, but at the same time, they are not going to have any big bang stimulus.

and this has created a lending spree that is still going on to this day. this is what the central bank is noting in this latest report. does this compare with previous statements by the pboc? not as strong.is for example, this past november, the pboc had a report that there will be a long-term deleveraging of the chinese economy. do that, not really and we have not seen that phrase since then. even though they are talking about the risks from credit growth, that they are not going to have any the stimulus, they are not quite ready yet to see the economy deleverage. >> so what are the biggest risks that you say would be

a challenge to the china economy and the financial system? wouldt people you talk to say that real estate is the biggest risk in china's economy right now. you are already seeing some parts of its slow down. price increases are slowing or falling in some places. there is construction of new units that has fallen or slow question ise big what are all of the inter-linkages in the economy that present all of the risks, and some of them we know about, some of then maybe we don't know about. >> all right, and that is always a concern, isn't it? aboute have been talking china economy with our guest all morning, and ahead of asian research says the worst is behind us. >> i think the chinese economy is also showing some

honest acceleration. not every month we'll show you a great number, of course, but the other numbers, to me, china particularly the money supply and credit numbers throughout last week are showing that if you add up all of the many stimulus that they have been coming out with since the end of february, there is something positive going on, and the worst is behind us in terms of all of the bad news in china, and, in fact, the market with the most upside between now and the end of the year i think it's probably that one. head, holdingia off on major stimulus. >> unfortunately, this is the same pboc. we have introduced a read to push into the economy in terms of infrastructure and a new social housing building.

of course, that accounts for a cyclical kind of demand, and that is exactly would china said they want to move away from. does this optimism on the economy mean for the markets? >> a big question, i think, is the macro picture really indicative of the stock market, and while the chinese economy appears to be holding up relatively well, despite some of the recent issues, highlighting that, the question is can business sustain, and i have doubts. the question is in the medium-term, can they? so having doubts about the chinese market, but what are others saying? let's head to david inglis for more. yearen you have a two

chart of the shanghai composite, you can basically go to where we started to w years ago and where we are right now. three point three percent. now, the rally we have seen, we have seen a lot of inflows coming in to hong kong and china. ,hina's largest investment bank they are basically saying they are seeing an increased likelihood, perhaps, that the rally could continue. this can show that we are gaining momentum. at the same time, this favorable policy environment is basically continuing, so we could see it higher. this continues to attract money. flowing, 2.3ollars billion dollars, according to that number. taking a look at what the hong kong authority is doing, they

are basically selling to alleviate the upward pressure, , andhat is what you have if you look back at 2007, at the peak, it was over 6000, and you probably banged your head on the wall a few times. money resources. jpmorgan coming out with a note this morning. toy are basically saying watch out for metal prices. example, aluminum, however you want to spell it, they are forecasting higher metals prices. and the big gold mining stock listed here in hong kong, and the h shares in shanghai, up. points as far as the prices are concerned, and

perhaps unclear. more upside because of all of the inflows. >> ok, we will see. thanks, david. you can get more of the latest news, and all you have to do is download bloomberg plus to your iphone or tablet, available on android, apple, and windows. and taking over a struggling lender. to $6out amounting billion of nontaxpayer money using funds already set aside, and lenders getting a new name here. and a safeties kindle has seen the arrest of six executives from shanghai. the company is a supplier to mcdonald's and burger king, among others. it is facing an official investigation into allegations meat forsed expired

customers, and pulling out an ipo, raising nearly $2 billion for the wh group, and the company makes its trading debut here in hong kong. and this is originating in china. and wine is up more than four with investment from kkr, and let's head right on over to paul allen in sydney. paul, give us the details of this did. >> well, kkr will be hoping it is second time lucky in their attempt to acquire treasury wine. this is a 3.2 billion dollar deal as revealed this morning, valuing the company at $5.20 per share, and treasury wine is the world's second-largest winemaker, looking out over 80 brands all the way up to one that will cost you a tidy $700 a facing and they haven't some problems, not the least of

which is $260 million in in pair men's, and we had a famous story about how they had to dump half a million cases of wine in the had, unsold wine, that issues with oversupply, in here comes kkr, and a significant one now april, and they are offering $5.20. >> yes, what a waste, and all of those around the world just salivating at that thought. and let's talk about that. it is interesting. why? >> well, effectively, the cat is out of the bag. they were in talks with kkr, so treasury wine said no option but to go public, and if you take a look at the yearly price charts, it really does tell the story. huge jump where shares soared 18% after that

offer was revealed. share prices have closed above that price ever since, so kkr has not been put off by that. we may see another bidder come into the process down the track. kkr says they will not be paying any dividends to shareholders. great newsy has been for shareholders and treasury winds, up four point read percent, five dollars $.16, already closing on that offer price. raise yournough to glass. paul allen in sydney, thanks so much for that. head of the, agency, but up next, the first day on the job for the new boss at infosys. after the break, we will hear from the ceo. this is "asia edge." stay with us. ♪

♪ is day one for the new boss of infosys today come with big plans to turn the company around. he says he wants to restore confidence and told bloomberg tv that he wants to invest in the start up. to, on thertunity one hand, put an intense focus on the work that we have traditionally been doing, the initiative that mr. morsi and others have laid out over the last year or so, and continuing that with a new and greater focus, but, on the other hand, there are completely new kinds of things, new kinds of innovations, new software to doing that in a exemplary, new ways, but also working with startup companies. fund, and$100 million

working on intellectual and more. >> take me to the idea behind investing, the advantage. working on next-generation things. with the frontline of what is happening. great one. i am really excited about that, we have beenat, working through many of the details. much time will this process take? and more important he then the

timeframe, how would you measure the milestones? >> i think it is very early. i have hardly had time to think through. but as time goes on, we will better understand the metrics, but i would like to think of the situation that mr. morsi has done. and that means some things remain. thereaking to infosys, are skill sets that we require. to aggressively grow. >> it is a need to look for great innovation, the talent,

and i don't believe in having companies bulked up. a company you feel can bring you unique sets of skills that are necessary for the future, then i think that would be wrong to pass that off. >> time now to look at some of the other headlines this morning. first, apple, now microsoft. the tech giant is suing for a breach of patent agreement, and under the 2011 deal, they could cross license patents, and they are suing the u.s. company acquisition of nokia as an excuse to delay royalty payments. and the morning session lower for sharp. this is partly due to rising

sales for smart phones and tablets, and the current forecast. opportunities to grow its business, following a better-than-expected forecast. the managing director says new products are expected to do well in the region. >> we tend to be pretty patient about this. we continue to grow across the and we have a 11 million and members. we see growth. that is the company news. i am muslim dimon. is monday.p next, it air miles, collecting like they are going out of fashion. we will take a look at the

reasons for his punishing schedule. ♪

♪ saysjapanese advisors

negative interest rates should have happened, and he said this. >> the boj quantitative easing policy is a huge mistake. what japan needs is negative interest rates. they should have done it 20 years ago, but it is too late, because it is a totally opposite policy as boj has taken. of negativetion interest rates, i think, is a very wise and significant move. tour of latin his america, and now visiting 47 nations since he took office, and he is soon going to be japan's most traveled leader. has been taking a look at that, keeping track of all of the travels, and exhausting job. >> he has a lot of business anything,nd more than

he is saying that japan is back, which is basely what he said this year. mexico and others. also the u.k., and he has basically stands aglow in the last two years or so. >> i recognize that. >> yes. and this is both economically to counterally china' is rise in the world. militarily and also economically dominating the world, especially region, and this is one of the world's biggest economies, and people should not forget that they do more deals, still latin it is

america's dealer. they are still managing to find quite a few deals. foster better relationships with china and other countries. >> yes, and with south korea. they were talking about not doing more missions and lob a until they atone for their past, and also with curatorial and friction has not been helped by the visit of shinzo abe to the shrine. he went there to pay his respects, and they were commemorating the wartime debt of some of the war criminals, and that affected others, both

angry at that visit. >> a very sensitive issue, which is why those relationships are still very tenuous. you for chin, thank that. and looking at some other tories, ban ki-moon has denounced the strike on another u.s. strike in gaza as a moral outrage and a criminal act. , which the u.s. that was appalling and disgraceful. it is not exactly clear what happened here. they were hit by shells. and they say it was an airstrike. all of the seven passed to the military multiple times. they know where the shelters are. happen, continues to continues to happen, i have no idea. do not have words for it. i do not understand it.

>> meanwhile, israel has announced a seven hour truce. and they also pull that most ground forces as prime minister signaled the four-week assault may be winding down. israel has lost 64 soldiers and three civilians. a strong earthquake in southwestern china has killed at least 381 people and injured nearly 2000 more. measured 6.5 and struck and him and providence. about 200 people reported missing. 12,000 homes were destroyed, and power and indications in the region are still cut off. >>. ♪

♪ >> profit. completing an ipo in hong kong. selling indonesia. speaking to their head of investment promotions. it in an unlikely place, the growing demand for dairy in vietnam. the latestlet's get on the markets with david who will tell us about this good opportunity in australia. but there is a good story on bloomberg.com.

it is basically this. they have fallen this year. an acquisition or a target. looking for increased production. a change of three percent. and this affects several department stores. home appliances. up one percent today. of course, watching that one, rebounding in june. this alleen following

morning. the bid from kkr, and it is north of five. and very quickly here in hong kong, earnings. he companies coming out with earnings today. in longforseng bank, properties -- and alongfor properties. long on the index fund here. thell right, let's head to trading desk. how are things looking? >> we had a very quiet morning in japan. the dollar/yen. companies releasing earnings this week. and we saw a narrowing, 90%.

getting this clock, this ongoing concern. the going concern reference, and we have not seen that. there is an ongoing concern, a technical term, and there is an assumption they will continue to kikoman, a fan of soya sauce, there he go. 13%. down of half of one percent. falling 42%, net income dropping by more than 50 plus percent, and coming out with earnings this week. sales, 16otive

million cars. big, big market for the japanese. back to you. >> thanks, david. itsone group will be making trading debut in hong kong tomorrow after raising just under $2 billion in its ipo. zeb eckert is here with the details, and it actually took a little longer than expected for ipo.h group >> 5.3 billion dollars. they scrapped those plans amid market volatility, and now you see this amount from the revived ipo. world's biggest pork supplier, well known for the fact that it is the biggest chinese acquisition. it bought smithfield food, and it comes amid a meat scandal in china.

majoruld not expect a meatpacker to go on the public market, but they say the second half will be bullish in terms of the demand for meats, which is expected to pick up in the second half of this year. >> talk a little bit about the ipo, him coming in. what are they going to do with the cash? they had debt to buy smithfield foods. they are certainly paying the bankers for the ipo and the acquisition and expansion plans. he owns 9.1% of the company through two holding companies, and this makes him a billionaire. >> ok. zeb eckert, thanks for that. and the indonesian presidential elections long ago, but the

fight is still going on, and one candidate is challenging results. and they will hear the case this week. jakarta, elliott, how long will this take? off, theill kick this election, andthe they claim this has numerous errors. they have pounds of systematic fraud on the presidential elections. they claim to have enough evidence with around 20 million votes in question to eventually overturned the margin. they called the voting undemocratic, and the winner has refused to admit defeat. he got 53% plus of the vote, and given the

margin of around 8 million votes between the two, the case looks unlikely to succeed. a singapore-based analyst says the court is unlikely to overturn the results because international scrutiny is high, but even when legal challenge they say he could succeed . there are as many as six parties jokowi is supported by around 40% of the parliamentary seats. >> thank you. growth reaching a historic high in the second quarter. haslinda amin joins us now with the head of the country investment promotion agency. growth boosted by new

thattment, but is sustainable, given an about turn and we are joined this morning. good to have you with us. the contracts are very important. some investors are sidelined, and they are waiting to see if the new government overturns policy. is there reason to seek input? we have never had a smooth transition from one government to the next, but this time, it should be different, because this time, even as high as before, he has committed himself strongly that he would commit himself to a very smooth transition to the new government, so from the

president to all of the ministers, they are more than ready to welcome the new thernment and reflect smooth transition. during the campaign, they did say that they would look at deals signed before. of course, that is something that they have to express looking at the challenges, but at the same time, i think we have to understand the statements during the election course, getsch, of attention, that when the president-elect becomes effective, the reality on the ground is also a need to get the attention and focus more prominently. >> you are saying it is politics. you are seeing very nationalist

policies, pretty much putting a lid on foreign investment, trying to boost it. >> well, i do not want to interests toe ,romote economic development but it is more about what a country like indonesia, which had developed a new aspiration and middle income country, they need and require foreign investment, which we still consider in the market, but this balance between the two sides -- it will also be a challenge of the new government.

it is a zero-sum game. >> of course, indonesia is looking for more foreign investors in mining, but we have ones,lks concerning new and will this impact investor sentiment? i understandpe from the information that i got resume itsrt will production and exports from tomorrow, so we have been able , andree on the principles that is done, and they take a different route. they take the issue to the court, and the government has no choice but responding to that theess, but if you look at

larger context, we have just that have thenies title, and we have already had 50, and this about is, again, in indonesia, with their own aspiration, and they would like to see more added value taking place, and this is a legitimate concern for developing the economy, and then the fbi, i think, if we can have good communication, can also process for as a them. >> where will this come from? not necessarily just the exploration and next location,

but also in the processing. $30 billion for processing and , and that isying around one third of which is already under construction. >> isn't it true though that growth also comes from consumer related businesses? >> that is one, the mining, but nowadays, of course, there is an economic story that is -- that isly that can be when we have a bonus. >> all right, thank you so much for those insights, and back to you. of course, indonesia benefiting

from a young population right through 2030. >> thanks, haslinda. coming up next, israel declares a brief cease-fire, but will it hold? we will be discussing the conflict in the middle east and the rest of the day's top stories after the short break. you are watching "asia edge." ♪

♪ >> and joining me is that and our guest. the shelter back in 2008. is it time to head back once again? >> not quite. no, i don't think so. it is always a good thing to think it might be there if you need it. appear to bet most over the last week is that the is back to its beginning of the year start.

now, you imagine all that has gone on, here we have that. mrs. indicating a phase in the market. we have to look at the cycle. probably, and a surprise maybe. maybe m&a, that sort of thing, >> this is part of a broader based correction? >> i do not think it is a good fasterthink it would during the interest rate hikes, but we do not know the impact yet. next 12l be in the months or so. >> what sort of implication is that in hong kong? there are two camps. one is that china is doing

better. at the same time, we have higher rates in hong kong. looksl, i think hong kong toficult, and it is close china, as the chinese economy continues to recover, and their is some recovery there. but i think hong kong, as you say, if interest rates go up, we have those, and we have a very interest-rate sensitive economy here. we have to thing really about being on the coattails of china. hong kong may well go up. the rise in the chinese market. and this is in terms of the hong kong fundamentals. it does not look good. keeping that float in place.

>> an extraordinary thing. you might've thought there was a place that people would want to come out of hong kong dollars, but china does seem to be relatively good with the markets around the world. onhaps we are still hanging that, but maybe it will be the remimbi. >> we have talked about this economics. what do you mean by that? >> it is easy to do the first but the liquidity, third arrow, which is restructuring the economy, and the economy -- full of regulation, but it is not a very easy economy to move, and that is very difficult to accomplish. according to your previous this is a great way --

>> you had a great time collecting all of those. but what he is doing is trying to garner more international goodwill, trading, politically, whatever. it looks to me like this is a by china on apt number of sources, especially in the islands and in the east china sea, and this is another policy,of the foreign which is to really be quite aggressive, to create bridges around the world, and maybe that

is it. >> very, very quickly. 20 or 30 seconds. how are you with the macro risk? headlines from around the world. >> they are shocking. big players behind their. u.s., the u.s. on the side and there are many big forces working here. and then there is global economics. global series. >> and that is when the storm brews. richard, our ceo, thank you so much for joining us today. all right, coming up next, the desire for gary. i look at the growing liking of milk by asians. this is "asia edge."

stay right there. ♪

♪ >> gary products, in general, and milk, in particular, have not been top sellers in asia. fastestshowing the growth. our vietnam bureau chief reports from ho chi minh city. this vietnamese mom did not grow up drinking milk, but that changed when she had her son. now, she is a regular customer at this store, run by the largest dairy company in vietnam, and when they are thirsty, she says she and her family reach for milk. >> my son finishes a glass of milk with a few gulps. -- makesids, it takes us healthy. they are very active. for me, i get my skin from

drinking milk. >> a research firm forecasted dairy consumption will grow the most among the southeast asian companies in the next years. they have also made a 100 million dollar investment to bring fresh milk from farms into the world's most automated dairy plants. you never even see a single drop of milk. once they bring in the raw milk from the farms, machines take over the processing and packaging, even down to the laser guided vehicles that transfer product around the company. that i sure as a safe product.

>> automation and integration. it is modern. especially in vietnam. you would not expect it. >> at this big factory outside of ho chi minh city, they are teaming up to half growth. already takes the lead in vietnam and plans to expand at factories that help it become one of the biggest dairy companies in a few years. the company already exports its products to more than 30 countries, making up 50% of sales, and it has its targets set on an even bigger market. the company has purchased a california dairy plant, and u.s. consumers may soon be enjoying products shipped from here, one

of the most innovative dairy factories. in vietnam, bloomberg. can get more on that and the rest of the day's news, and all you have to do is go to bloomberg.com, and you will find in-depth reports and market data. you can watch for the interview she may have missed on bloomberg today. all right, before we go, marvel has enjoyed a record opening for the latest superhero film "guardians of the galaxy," raking in 94 million dollars in north america. it allows them to showcase a lesser-known group of comic book stars, and there is the james brown by optic which had sales of about $14 million. galaxy" takinghe hold right here on earth at the box office. all right, before we go, just taking a look at the box office,

we see asian stocks fluctuating between gains and losses pretty much all morning today, but right now, overall, we are seeing gains.

>> the following program is brought to you by supple. >> hello, and welcome to the smart medicine show. we have a great show today. if you have joint pain, back pain, muscle