rishaad: it is monday the 18th of may and this is "trending business." going live to singapore. this is what we're watching for you. p spinoffs trading in the next hour. they will be asking if investors will be piling in. trading is suspended in hong kong after a 20% fall.

problems with the whole industry under scrutiny. again.imes, sharp down did are telling the company that they are's -- they are saying on twitter that it is hard to read today. you can reach us on twitter, member to include #trendingbusiness. singapore and malaysia just entered into the fray. yvonne: a mixed picture today but mostly up about half a percent right now but we will talk about first u.s. stocks closing on a record for a second the surprise drops in consumer confidence coming out from the u.s. raising more speculation and concern as to when the fed will be lifting interest rates. we have the breaking news coming up in half an hour, for exports

rising -- singapore exports rising. they were expecting a drop. creating a high. japanese machine orders out of our ago. economist source perspective -- economists are expecting a 6% drop. gain.tes are at a 1.5% kospi down. property prices out later today. in march, fewer cities with lower home prices, 49 out of the 70. we will see how april will turn out. will there be a trend of a rebound after the government eased property curbs? the fastest we have seen in two years. before we go i want to talk

about the u.s. dollar because it has been trending, a lot of speculators. it rose a little bit on friday but we are seeing it reached nearly four-month lows on the three-month chart. against the euro we see some weakness but overall data, concerns, reports of industrial production and low forecasts. thisll be looking at week's housing and inflation numbers for any clues. at one.ding rishaad: there is a spin off making a trading debut. the company will be the world's largest producer of manganese and run one of the largest silver mines. we are in melbourne with a look at the south 32's assets and how it will operate.

david, good morning. david: good morning. as you said, south 32 begins trading today in johannesburg and london a little later. it might be a collection of small operations but it still will be the largest producer of manganese ore in the world and operates the largest silver mine, in australia. it has high quality aspects but what analysts say is that many assets are older, approaching the end of their lives. that poses a conundrum for the company. has a strong balance sheets but it has week options for growth-- weak options for growth. some analysts are looking perhaps for a quick move from the company to address some of those concerns. the company has come into being,

it's very existence b ashp-- as rationalize its portfolio and focus on the copper,units, coal, petroleum. it is focusing on the most profitable operations as it tries to cut costs. investors are interested to see how south 32 trades today and what the long-term prospects are. rishaad: david stringer in melbourne. ceo, first on bloomberg. 12:45 if you are watching in sydney. xi, asnese president, told secretary of state john kerry got the pacific is big enough for both of them.

kerry was in china over the weekend and will meet the south korean president later today. the bloomberg u.n. correspondent joins us on the line from seoul with a look at what we can expect from the trip. what can we expect? >> good morning. the secretary just began his meeting with the south korean president five minutes ago and that kicks off the scheduled date. he plans to go to the foreign ministry. he is expected to speak to the press about meetings with the south koreans. on the top of the agenda is discussing the latest news out of north korea that some joint john un-- kimm jong-un executed a general and tested a missile. day, kerry will be delivering a speech at a local

university about the u.s. vision for cyber issues, not just cyber security about matters pending to freedom of the internet -- but matters pertaining to freedom of the internet and access to governments. rishaad: thank you for joining us on the line. secretary kerry and south korea. some of the other stories, rosalind.-- rosalind: greek banks are running short on collateral. are tapping into the greek central-bank to access emergency liquidity and so must say it could be maxed out in three weeks. the frustration of european policymakers, the greek prime minister has stuck to the election pledge to end austerity and has said he will not help her eyes on key demands. could increase pressure if

they decide to hike to the .iscount on the pledge officials at the ecb and greek government officials declined to comment on that. eu leaders are set to meet in let you on thursday when greece will continue the course to access more aid. the country has a payment to the imf on june 5. filed a suit in new york is using alibaba allowing the sales of goods that infringe trademark four grams including gucci among others. kering says that alibaba has profited from the sale of fake goods and alibaba has rejected the claim, saying they will fight it vigorously. it is the second time that kering as they can action against alibaba. they withdrew a similar lawsuit after talks between the

companies when they agreed to work together to stem the sale of fake goods. finally a look at china international capital corporation. it is restructuring as a joint stock company ahead of a planned ipo later this year. the investment bank looks to raise about $1 billion from a listing in hong kong. former head of investment banking and now the ceo is working to turn the bank around. it was formed in 1995 as a joint venture between morgan stanley and the chinese construction bank. it has become known as the chinese answer to goldman sachs but has lost momentum in recent years. morgan stanley sold its stake in 2010. rishaad: looking at key economic data released this week but after the short break, chinese real estate developers are being scrutinized more than ever. itwe will find out if there coud be more on the way. ♪

rishaad: about a quarter of the way from the latest chinese property prices against the backdrop of developers under increasing scrutiny after the raising issuesa about contingent ebt. -- debt. how closely are you monitoring the situation? >> i think we have been always vigilant on developers in china because the issue has been always there. in the past, the property market is strong and profitable so people do not care. it given the case of kaisa,

could be quite substantial. that is just it, we have property prices at the bottom. -- with news of house prices rising but it takes time for these things to filter through. ben: yes, but the sentiment is important. better sales in april, much stronger than first quarter. the price stabilized from falling last year. actually the market is strong for property companies so they can issue equity to refinance. rishaad: you have to read the small print, haven't you? ben: there is a lot of the small print. but the economic environment is more favorable now. have an unfavorable

economic environment, last year in the first quarter. i am not saying that is not important but right now, the environment, it is more easy to refinance. rishaad: what are you working on for your? -- here? kaisa remains suspended. what is the endgame? ben: the endgame is the reshuffling to the creditors which seems reasonable to me, you may recover, as reported by the press, or 70% of the value -- around 70% of the value which is better than what i expected. it could be much lower than the amount of the proposal. the endgame may be the creditor will accept around 70 something, that recovery revenue. rishaad: that is what we are talking about in terms of a haircut. ben: 20% or 30% haircut sounds reasonable. rishaad: these accountancy issues are prevalent in the industry group, are they not?

yes. as i said before, the issue was always there. ones. affects smaller they would continue. as we see significant improvement in corporate governance in china, i always say you need to be cautious. icking the one with good management and a long track record, a much bigger sized national operation. the one growing very quickly, you need to be cautious. rishaad: let's just take a look at corporate debt as a whole in china. this is a very high levels. we have had of course bad administration which has been talking about market forces doing more. are we going to be doing more and more defaults?

physical dragged on confidence. -- because it could drive down confidence. default,ave seen two one on shore, one offshore. you might see sporadic defaults but i do not think we will see a systemic increase in default rates. said, maybe it would be cut down. but it would need to be low given the economic factors, the easing. the stock market is strong and that allows the company easier to refinance themselves. rishaad: it is coming at a good remains corporate debt enormously high, $14 billion according to figures from years ago. ben: it is increased

significantly since 2009. high. gone pretty they need leverage. one of the challenges for the company is to deliver. they cannot continue to fund expansion so now they have to fund for equities. why the chinese government wants to support the stronger equity market, to allow them to deliver at the higher price for the monetary easing. rishaad: so they are serious about dealing with the issue is the point? ben: yes, everybody is serious about that. i think the equity market component in china is too small and that is too big. they need to normalize the equity ratio going forward. rishaad: thank you so much for joining me today. ben from j.p. morgan equity

back. says disputes with united states must be managed in a way that does not hurt the relationship. president xi told john kerry that ties remains stable on the whole despite the white house saying that china needs to curb territorial expansion. they say that the south china sea is big enough for both china and the united states. the city falls to islamic state fighters. the battle has been raging for six months and the loss a setback to u.s. authorities. shiite expected to lead militia forces to leave a fight back. -- lead a fight back. hasprime minister of nepal appealed for more help from the international economy as his country struggles to recover. he hopes to get help at an enhanced level for

rehabilitation and reconstruction. the magnitude 7.8 earthquake hit nepal in april, killing more than 8000 people. last tuesday, a second quake killed 117 people and injured 3000. way,ad: still on the looking at chinese property developers again, under pressure after the major default we have been discussing. debt in the real estate industry. ♪

"trending business." the bad indian loans may rise to a record high with a percentage of assets expected to turn bad. stressed assets will rise to 13% of total loans by march of next year. indian central bank says they do not see it leading to financial crisis. that the government must do more to raise money for domestic infrastructure projects. thanks provide the majority of the funds but they are saying that the administration should provide the majority of the funds but they are saying the administration from target new sources of funds. attract investments from

sovereign wealth funds as pension funds. banks take the initial risk but when they come off of the ground, there are other sources of funding that could come in and take out the bank exposures. with the ties between india and china, one major source of funding would be foreign direct investment into the projects. that could be, you know, a large source of funding for investment in indian infrastructure. the world's richest man says the u.s. economy is strong that it is wrong to say that taxes and regulation are hurting. bill gates says that it is nonsense that tax rates are restraining growth. he said that someone earning $40,000 a year is better off than someone on an equivalent salary decades ago because of inventions like the internet hosting the quality of life.

-- boosting the quality of life. developer under pressure in the offshore bond market. repay $79ed to million of securities today but investors are closely scrutinizing chinese developer's books after the default. corporate finance reporter, what are the chances of making the payment? and iay is the due date think that the chances are high with bond prices trading $.98 on the dollar. i was trying to reach the company and coded but analysts were telling me that given the 79 million principal, it is relative small to the best relatively small to the size. relatively small to the size. rishaad: they have already had a bit of a haircut. lianting: they have a distressed exchange on some bonds so

investors did have a haircut already mlb forecast is on the next bonds do next year -- and now the forecast is on the next bonds due next year. rishaad: it is easier to raise the money on the equity markets in an environment where financing is becoming cheap. lianting: true, it was an issue last year as well but for a distressed company it is not as easy as a healthy one. so it seems like investors are worried about the companies are unprofitable and also it does not have much asset left to sell. rishaad: what about the general market sentiment towards developers in china? lianting: i think more and more investors are looking at this default as an isolated case rather than systemic. isa defaulting last month but the higher market is continuing to rally. what about the property

developers with the home prices being released? lianting: we will have to watch for that. rishaad: that data coming out of the bottom of the hour, we will see if there has been a recovery. we will have more on the property market after this break. as promised, we have the latest new home prices due out in a few moments. i will bring them to live as they crossed the bloomberg terminal but of course we do also have the market open in hong kong and shanghai, the trading week getting underway. released numbers when "trending business" returns in a couple of minutes. ♪

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rishaad: our top story. the asx in the next half hour and the company will release maganese. they have voted to spin 22 off. analysts say it would be worth nearly $12 billion with this listing. andparent company of gucci other groups are suing alibaba claiming alibaba encourages profits from counterfeit goods.

the was ay profiting, similar suit last year. china is about report latest property figures. under increasing scrutiny over the troubled kaisa has raised worries on unreported the debt. china's corporate debt was the world's largest at more than $14 trillion. a look at what is going on markets a wise. ne?nghai also, yvon yvonne: fractionally higher. a mixed picture this monday morning. welcome back. hope you had a great weekend. shanghai and hong kong in the red. the green alln in morning. steady on the gains. fractionally low.

as we are going to be expecting china property prices to come out any minute or so. we will see reaction on the eco-data. some of the movers here. we did see quite a bit of dramatic move from, i have to talk about this. pharma company in japan. the biggest day decline in april. they target the in, at $5.8 million. the estimate was 900 million, quite a mess. they expect to turn to profit on this settlement. mitsubishi and the japanese bank in talks. leading the way up 3% for mitsubishi. -- 836 million dollar buyback for the second time this year. the annual profit surpassed $1 trillion yen for the first time.

looking good for mitsubishi. by hsbc.rated as a buy are seeing 7360 right now. quite a way to go according to hsbc. aggressive is strategy credits and negative. cutting the stock to underweight. off andct the spin shares have been tumbling. told the most in six years. we will see an adjustment for that. less than half an hour or so. the taiwanese market is doing very well right now. highest in more than four months profitso apple posting

that beat estimates. net income declined -- increased 50%. rish? rishaad: home sales for china. it looks like another proof may. -- improvement. atorter: we want to look month over month. year over year are continuing to fall because of the base effect. month over month, the decrease in the number of cities that saw a home prices fall in april down to 47 cities out of the 70 cities tracked. in march, it was 49. 70r over year, 60 out of some price declines. in march, 12 cities increasing their prices. that is quite considerable. it only been two the month before and two the month before and one of the month before that. prices,s, new home

affordable housing in the month of april up in 18 cities month over month. we are seeing improvement over key cities, shanghai is up slightly month over month. april new home prices raising -- rising 0.6%. beijing also rising. basically, what we are seeing are the three key cut since november and relaxation of the mortgage rules and a number of unwinding, if you will of property curves is trickling into the property market and seeing perhaps a floor crating. one analyst saying home prices are almost at the bottom. the april numbers we are getting at least indicate a month over month there is a recovery underway. revisit our top

story. bhp spinoffs making their debut. focusing on the matinees and and silveraganese which is one of the biggest deals in a year. paul? tradingbit in south32 and 25 minutes and the company is having a few events at the headquarters today. as for where shares are going to trade, it is anybody's guess. upper dentist from $1.48 up to three dollars. toa huge range from $1.48 up three dollars. we have bhp as a gauge and they are having a pretty terrible morning one of the biggest falls since 2008. away from the p

company. bhp will concentrate on the iron ore, coal, petroleum and possibly hot ash. world's largest maganese producer. bank on the see the screen from time to time. one service out of the way and they will look at cost cutting, job cuts. how many or where? it also looking at extending mine life. some are toward the end of their life. rishaad: looking for acquisitions or are they taking the target themselves? will it be a credit or a prey? yes, an interesting question, isn't it? there has been plenty of room are of creditors circulating

south32 and glencore. might be looking for acquisitions. he said requiring things as alternate stick is not a strategy -- opportunistic is not a strategy. he said it are definitely on the lookout for opportunities a but not something they are planning on. they have very low debt profile. south32 will be an attractive target as well, rish. rishaad: thank you for that trip all allen. more on that story. , available forle android, apple, or windows operating systems. some of the other stories we're following. is planning its second share buyback of this year after it in, rose 6% to the one trillion yen mark for the first time. bankersbe encouraging

to get back to shareholders. expecting net and content climbed more than $5 billion this fiscal year not even if they drop through march. mizuho is saying demand is rising. >> recently, though growth of corporate investment has moved from larger nonmanufacturing to midsized companies and sectors. capital spending almost corporate sectors has arisen since the latter half of the last fiscal year. we have the impression that capital needs are on the rise, tracking the improving economy. and he is line of credit worth $1 billion to help indonesia. line of credit is $1 billion to help indonesia. announced with prime

minister modi and three nation tour that start in china and will also include south korea, where he will visit today. and packing in a lot to through this trip. 25 million -- minute address. , tell us tv mongolia more about what his visit there. reporter: hello. india's prime minister modi visit to mongolia started from prime where he gifted the minister. he was at the central square and met with the president and the speaker privately. at a joint news conference, the and in a prime minister modi and his counterpart declared a $1 billion credit to line.

-- in the indian prime minister modi and his counterpart declared a $1 billion credit line for mongolia where major layaway and projects are underway to attract international investors. both india and mongolia expressed their desire to expand investment ties. the operation based on state and private sector corporation. and in the past 24 years if we look at indian investment to one ago leo, $7.8 million which is total to mongolia. one of the biggest outcomes of the visit was in the acknowledgment that relationships will move up a level from comprehensive to strategic. with this addition of india, indonesia has 4 partners including russia, china, and japan. they will tell by renewable

energy and agriculture in cyber security and culture. after he addressed at the parliament, prime minister modi visited that cancer center and donated medical equipment. and then later on, he addressed a traditional costume and attended the famous festival consisting of horse racing and archery. he even tried his hand as shooting arrows and playing a traditional mongolian musical instrument. chris thank you very much. -- rishaad: thank you very much. will we see recovery and the japanese economy? in the lastgrowth quarter. that and more with ubs after this. ♪

>> that guy will inspect the when of the derailed amtrak -- the fbi will inspect the derailed amtrak train. killed when anre greg brown trend accelerated shortly before coming off the track on the curve area -- eight people were killed when the amtrak train accelerated shortly onore coming off the track the curve. police say five gangs had embraced a meet. a fight broke out and escalated to involve knives and guns create of the victims died at the scene. hundreds of muslim migrant have landed in indonesia's province breaking tales of killing and starvation after the long journey. many bangladeshi trying to escape poverty back home. others fleeing persecution.

indonesia and malaysia and thailand have sent some refugees back saying they are not welcome. rishaad: a look of what we are watching this week. the chinese premier starting a for country latin american tour to strengthen trade ties. brazil expected to sign a $50 billion deal on infrastructure and will visit peru and chile. yingluck in court accused of negligence for a controversial rice buying scheme. critics say it was corrupt and lost billions. of affectingccused income. australia tuesday, the rba releasing minutes after the may policy meeting.

they cut the benchmark to record low 2%. a move broadly in line with analysts' forecasts. the biggest pc maker is expected ales profit.lling s it will hope to improve with the tablets. saying lenovo was one of the few tablet makers to see growth in the first half in a shrinking markets. though weeks key data. over to singapore. -- the week's key data. good of you to join us. let's start with the japan. teleporting gross number. will it improve that shinzo abe's goals are a barrage? -- mirage?

guest: slightly below consensus and we think there is a risk of it being globe are. we do recognize that especially on the consumption side that is the key pillar and things are improving but looking out at though wage increase and they have happened, it seems to taper off a bit. -- andde, we do see a side, we do see h friend of that is improving but not as fast as we thought. iswe do see a trend that improving but not as fast as we thought. and large, we were below consensus, slightly below for wednesday and for the year, from 1% as we saw and now a growth a number of 0.7% which is better. and also a little bit curved.

rishaad: two things i want to bring up. the machine numbers we got better than expected and at the second thing is when you talk about consumption, the retail confusedures at least by the april tax hike last year. : that is true. i think comment back to the machinery orders sometimes it thealso be on some levels biggest chinese new year and went to see if that is really h friend. nonetheless, was an ongoing improvement. -- see if that is really a trend. far as the retail sales of the consumption is concerned, i think one definite positive is that we are seeing the next hikes for 2017

so it gives a window of opportunity for the consumption to recover. that in itself is positive and basically starting in may they should not have that much. they have had an anniversary. coming to made, these numbers should be cleaner and not so much influenced by the recent hikes. rishaad: of course, japan is likely to be affected, not just the chinese data but also what is happening in the u.s. where the data seems to be worsening. what is your view? hartmut issel: yeah, we can some of thatce really back to the weather still. that is starting to phase out. also saw that for example and production, maybe the numbers not as bad as some thought because the previous month's numbers got revised up by quite a bit.

be realistic. what we have done is cut the growth estimate a few weeks ago so now we are expecting 2.4% so comparing with last year's 2.6% and lost at the first quarter and also inventory pay that wakes but in the second quarter. ofe is in order and 2.4% growth rate looks realistic for the u.s., not too hot, not too cold. it is lower than we thought after the beginning of the year. rishaad: pushing out tightening policy even further. after the same time, loosening of allah see in china, do we get more in the next few days? we think maybe not necessarily in the next few the but also how weak activity data with a notable exception of property recently, everything else looks weak. finishinghina is not

loosening so within what more rate cuts probably to the tune of two. we expect a couple of other asian countries to follow so loosening in asia is not quite over yet. , thank: hartmut issel you for that. from ubs joining us from singapore. we take a look at these surprisingly candid remarks tweeted by one japanese company that is having a tough time. ♪

rishaad: what is trending on social media. reporter: we are looking at a company called sharp, big in japan. companies can have feelings, too. sharp had a rough week.

it was a third annual loss in four years. a press conference held. indeed, it isd -- hard to tweet today. i have things i want to say but today i will take it all in. feelingan introspective and taking on a humanlike quality. expressing things normally when companies have results. they might post results on twitter. quite a different feeling from sharp. they revealed their plan as well. skepticism by investors and analysts. perhaps feeling bruised. you are looking at another big company. atorter: i am looking apple's ceo tim cook. he was back in the u.s. yesterday. theave video of him giving

address to the graduating class of george washington university. likeid the usual things fight injustice and do not live life on the sidelines. and congratulations and try to make a difference. he also used china and he spoke about china at that address pretty in particular, he shared some of his photos of his recent trip. as you do, you share your travels. he is beginning his account quite a big workout. about a week ago and he showed in the u.s. what he has been doing in china and trying to -- it is important for the company as they keep their business going there and have a lot of environmental messages in a china. he was using his account to say what an honor to meet the people in shanghai, or are also regular visitors to his store. rosalind: and will talk about

more later on. rishaad: hsbc spins off. it will be on the fx in a few minutes. the ceo will be speaking with us. do stay with us. ♪

rishaad: it is monday, may 15. i am rishaad salamat. this is "trending business." ♪ rishaad: live in singapore. first, what we are watching. having 32 spinoffs to trade --er the mining business biggest such a deal in a decade. stronger foundation, china home prices fell and the fewest the cities.

lifted from property curbs and interest rate cuts since november. a historic trip. visiting mongolia and prime minister modi tell twitter two-way relations will lead to spectacular heights. let us know what you think of today's top stories. i am on twitter. ado whatthout further is going on marketing wise. yvonne: we are starting to see mixed the back end the agents after the weekend. -- mixed bag in asia after the weekend. looking pretty good, machine orders were up. .eating asian stocks the nikkei is holding that gains of half a percentage this morning. kospi is going down. seng is up about zero point 7%. the shanghai is down half a percent. property prices, fewer cities

seeing a drop and the home prices. showing some of the property curbs released, eased, looking better for the property market in china. i want to talk about some of the china mover it's because it seems like they are not doing too well. telecom is down close to 4% right now. technology is up about 2.5%. a look at the china's telecoms. according to an agency, they are talking about a target of 30% cut in internet service fees. china mobile is down 2.4% right now. seeing a cut and data price of by 30% possibly. plus, even more than 2%. just started trading in australia. share price moving to the

upside. $2.13, per they will20 be the world's largest producer of magagnese. biggesthe industry's deal in a decade. paul allen joins us. what is the atmosphere like? paul: a big day for south the dirt that south32. -- south32. they will breaking out champagne or slapping each other on the back i was suspect. there does stock trading at $2.2 0, a very wide range was given. it will be interesting to see where it settles by the end of the day's trade. bsp has taken a beating, perhaps declining by equivalent amount.

be at the shareholders got a share -- bhp shareholders got a share. in interesting position on their hands whether to stay or sit or sell shares that a are now the proud owners of erie when the dust settles, it will be down to business for south32's ceo, graham kerr, you will feel behind me from time to time. on the acquisition trail or graham kerr is looking for opportunity, much of a strategy. what to their almost certain to do is looking to cut costs. losses, we dojob not know where or how many. they will look to extend the life of some of the older as fast. it is the world's largest maganese producer and also aluminum producer. it will be interesting to see where they end up today.

$2.10 -- $2ng to .13. ceo,ll speak to south32's graham kerr later. looking at the latest home prices. the house prices having an impact on property developers. let's have a look of what has been a slight improvement when it comes to property. over to stephen engle. recovery is housing taking hold at least a month over month. we will forget of the year over year numbers because they came off a low base. i want to look at month over month. almost at the bottom from a number analyst for you will prices falling and 47 of the chinese cities. that is better than the 49

cities. falls month over month in february. 37 is an improvement. the number of cities that saw prices gained increased, 18 out a 70. it was 12 in march. also unchanged from 9 down to 5. beijing is seeing a civilization. month over month prices are up 0.7%, the second month in a row. shanghai also for the first time in many, many months seeing a month over month gains in prices up. it had a no change in the mother before basically stabilized last month and now increasing to 0.6%. what we are seeing is the three interest rate cuts since november and relaxation of the mortgage rules on second homes really trickling in.

perhaps with found the bottom month over month for new home prices. rishaad: thank you for that. we will more later in the show. ok, a look at other stories we are watching. with a roundup. by the deadline of today. the developer is being closely watched after two companies, kaisa and another defaulted on payments. it should be enough cash to pay out today. the company could face it bigger 61 million on $1 bonds maturing next year. some say it is too early to make a call on next year's debt. renhe are saying they do not

have enough to pay. slowing at had been last quarter, the slowest pace since 2009 print asked house between greece and the international -- 2009. greece and between the international creditors continue, greece's --as talks between greece and the international creditors continue, greece said they need more money. the money could run out in three weeks. alexis tsipras is sticking to the pledge to stick to austerity. eu leaders are set to meet and l -- in latvia. greece will push for more aid. they are due to make a payment to the imf on june 5. alibaba for --rt a company is suing alibaba for allowing products that in a french on pa -- infringe on

patents. kering said in the alibaba has profited for fake goods. alibaba is saying that suit has no merit and they will fight vigorously. last year month before alibaba listed in the u.s., kering withdrew a similar lawsuit after talks between the companies. rishaad: another story on bloomberg is a bill gates and why he believes it is wrote is wrong to just taxes are hurting the u.s. growth -- and why he believes it is wrong to say taxes are hurting u.s. growth. that is on bloomberg.com. we will look at what prime minister modi has accomplished. our next guest is bearish on the

euro to the dollar. find out why when i am rishaad salamat. -- find out why when "trending business" continues. ♪

rishaad: checking on the currency markets. range for ais while. trading on 119 yen. rba rates actually the minutes of their last meeting and we will see that cut take place. there we go. not too sure. around 80 cents. our next guest is bearish on the euro and expects declines. of global market research at bank of tokyo mitsubishi.

great taboo at the program. you must be regretting making that call. test great to have you on the program. we are trading at 114. -- great to have you on the program. treatable it took a to the upside, it will have to reappraise the actual level. i'm confident of the story and i think it is more of a correction. you have to take the context going from 140 in may of last year to 105. that is a drop. with any rebound. in the broader picture, you look at the correction at some point. -- we have had a rebound. rishaad: is it a story of weakness? you are looking at the was 16 level if we get a deal on a greece. derek halpenny: that is the reason why many market

participants see it as good levels to sell again, related to greece is holding people back. perhaps, we get that 115 level and perhaps the positive development in greece and that could be the catalyst today to the market back into selling euros. notaad: in addition to going away, when it comes to a grexit and the possibility, a high why your exit -- act. it is incredible how long it is dragged on. what i have found in the last week or two is the referendum. it has since been denying since the german finance minister mentioned it. i think is potentially a way out for syriza. they promised the greek electorate so much. though way for them to reach an

agreement with the brussels is to say this not our foundation. the only way to get it through is a people's referendum. rishaad: it will be seen by the eurogroup as ducking the issue. no, it is a way out. we have to get permission of the people. there are negative aspects. referendum is a vote to stay in or come out. the opinion polls suggest there is still significant support for the single currency which is incredible when we have a depression in greece and a lot of people want to blame the single currency. rishaad: the economy has lost a quarter. derek halpenny: 70% of people still want it. to me, whyplained have the likes of spain and portugal and ireland, out all right and greece still languishes? derek halpenny: the problem in

greece was far greater and the data levels are way, way bigger. where thatsituation european commission and their forecast have revised higher their debt ratio by 15 to 174%.e points a huge data level does not going to be paid back. the greek government is on strong footing. in order to get it down to some sort, there needs to be more on the table in regard to further pension refund and state wage. in order to move forward and potentially get a longer-term deal. rishaad: currency levels. the economic data, it is turning against what people thought would be a much better year. derek halpenny: q1 has been a big surprise. rishaad: you cannot blame it all on the weather, can you? derek halpenny: you can blame some of it.

on the consumer side, the downside, 1.75 percentage points of the slow down was consumer spending slowing. in the second half of last year, the average growth rate was 3.8%. the strongest period in 10 years. some natural slowdowns. it is important to remember the confidence the u.s., is picking got. we cannot expect the u.s. to go to this debt fueled consumption growth. crisis woman consumers are for more -- far more cautious. if you say real income is growing, national income is going to be very supportive for consumption as we move forward. growth will be similar to 2014. in q1 surprising weakness and gradual improvements the rest of the year. partto me is an important of the dollar story.

rishaad: you said devaluation and the second half would be natural. derek halpenny: yes, the markets are underestimating the wilderness of the fed to stay on hold for longer. the debate in the fed of what is the potential and how much is 2%t -- and i think growth of with the labor market growing like it is as the moment is going to bring the fed to the table quicker. rishaad: one last look of what is going on with the yen. moving downward and quite rapidly and we are locked in a range where we 118 level and that is where we are locked in. people will say 140 in the next few months. what would it take to break either side of the range? derek halpenny: on the downside, the u.s.

i think that would drag the dollar-yenn lower -- lower. one interesting development in japan is the inflation and wage story. abenomics has credibility in terms of changes of the labor market that looks to be fueling wages going forward. my sense from being in tokyo last week was the inflation story is beginning to get a little bit more credibility. he went tokyo are skeptic. -- people and tell you are skeptical. rishaad: a lot of skepticism. the wagepenny: negotiations for the fiscal year that began, the highest of agreements in 17 years. wage has turned positive just but on top of this, very substantial for the year ahead. it's a looks like we will see improvement in wages.

that materializes, the retail flow story should change. over the past three months, evidence that retailers are getting back into investment trust. that is what is a very important development in regards to yen wickedness. rishaad: derek halpenny from bank of tokyo mitsubishi. china's dispute with the united states must be managed in a way that does not hurt in a relationship for you xi jinping told secretary of state john kerry that the ties are stable. washington are saying they should curb their territorial expansion. xi said the pacific ocean is large enough to embrace china the united states. the capital of iran has fallen to fighters. they abandon that soldiers abandoned their posts.

the battle has waged for six months. iraq is expected to senator schatz militia groups to fight militia groupse to fight back. nine people have been killed and 18 wounded in a shootout between rival biker gangs in texas. it broke out in twin peaks restaurant in waco, texas. meetangs had arranged to to discuss their differences. violence quickly broke out. cook's message to u.s. students. we'll be back after this.

burress shot a bank what is -- rishaad: what is trending? sharp practices. rosalind: a miserable time the last few years. suffering and times of results. last week, results of a third annual loss in four years. things are not looking better. they have unveiled a turnaround plan that investors did not embrace. the company has taken on the

human spirit in terms of how it is expressing itself. this video from the press conference that took place last week. -- sharp is saying is hard to tweet today. as saying today i am going to take it in and also saying i may have felt pressure early but i am not lost my spirit. the tweets are introspective and even melancholy. they have been taken down. they are not on the official sharp twitter account. reporter: interesting. wonder why that is. touch.s human more of a corporate filling the now. rosalind: you are look at another big company -- apple. ceo,ter: tim cook, apple it is all about china. he just dubbed of the stage of the address.

he got the usual words of encouragement to graduates. aft off the stage of the address. fighting in just. -- fighting injustice. we have been surprised by is he is using the opportunity to use his photos from his trips to china. yes, his holiday. visiting china and apple stores as we would expect. he shared this with the u.s. students. he is trying to bring the message home and use social media about china and the company strategy in china. i had of that visit to china, the company made an announcement of environmental initiatives for apple. the supply chain trying to improve sustainability. tim cook showing off and opened a account to reflect on his visit and telling things to

students and teachers. great is the innovation. and the difference and the classrooms and we are proud that ipad is a part of it. he had to get the plugged in. the appleof him in stores. i dong at that closely, not think he has an iwatch on. rosalind: maybe he forgot it? back to you. rishaad: thank you. dangerous course. andle facing extortion possible rejection as they reach for life. ♪

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oh! i can't believe it! [cheering] hi, grandma! ♪ rishaad: our top stories. making a debut on trading at 2.515, that's australia. they will be the biggest producer of -- new entity earlier this month for bhp spinoff. it could be worth $12 billion ith its listing.

>> demand boosted since november. it comes with increasing scrutiny after the defaulted and troubled kaisa. it raises questions about contingent and unreported debt. > luxury companies suing alibaba saying the company profits from fake goods. rishaad: let's look at what's moving on these mark etc. a bit of a mixed bag. let's try to make sense of it. reporter: a bit of a mixed bag. down in the early parts of this morning. we're seeing the volume and the hang seng dropped about 60% or so. regulators announced after the close that individual investors

-- banned from using dark regulators say the risks were too high for individual investors because of these dark pools. we are seeing a bit of a elloff in hong kong. yvonne: i want to talk about the estimates. we are still seeing growth here. we saw 2.3% prior. still seeing steady growth here in thailand. we'll see how trading goes in half an hour's time. if we do resume the trend, and it falls, will that happen for the tai buyout i was talking about? the bank of thailand could cut rates this year. ee von: -- yvonne: let's talk

about the movers. i want to talk about china energy. sinook and head of -- china at a high.-- cnooc 're seeing inventory for approximately 1 million barrels. bht, we have been talking about this all morning. we just checked. it is trading at about 216, it was trading at 213. a sale and adjustment in the stock. dai-ichi up about 10%. their net estimates beat forecasts. we are extending declines about 7% on this job plan as well on his lender bail out.

rishaad: home rises on the decline after they rose in april in china. there are a lot of numbers. how many cities are there in cla? >> well, 70 is what the government tracks. there are a lot more. forget the year over year numbers. yes they have improved. some cities have been battered with 10% falls. let's look at the month-over-month numbers. that shows the trend is changing. 18 cities out of the 70 saw price rises of month-over-month unchanged decline of 47. a month ago it was 12 rises, 49 falls, and nine unchanged. a net gain of about 6. they are coming off a skewed

base, definitely. shenjin is by far the leader. that was the city that saw the first momentum gains, the price gains, in december. now we are seeing no month-over-month gains of 1.8%, which is quite high. beijing saw 0.7% gains after 0.3% the first month. two in a row there. shanghai for the first month in many months saw price gains. only one city saw price gains. guess what that was? shangzen. that is the first city in many months to see price gains year over year. he rest saw falls. rishaad: this could also be good news for some of these

property owners. especially with the off-shore bond margaret -- market. especially $79 million in securities today. of course a lot of scrutiny after this default by chrysler. let's bring in bloomberg news. l >> chances are high that the company will make the payment today. because prices are trading about 90 cents on the dollar. so it is definitely not in the distressed range. it is really more compared to the company's size than its cash balance. that's why analysts are saying, es, it will pay. rishaad: there are also a lot of pressure on these bond holders. hair cuts there as well.

>> yes. they offered as much as 18% haircut, so some of the bond holders are already suffered some losses on the bonds, and now they are looking at the next bond. so that is comparatively a larger amount for the company. many are worried the company may not pay that particular bond. of what s indicative is happening in corporate china right now? is this a con tageyun -- contagion, in other words? > i wouldn't call it a contagion, no. it is more of a political event for this company. >> with the corruption probe going on. >> indeed. >> perhaps a purchase by sunac. rishaad: it does get a bit complicated. what is the general sentiment looking like?

>> right now, i think the sentiment is quite good. bond orders look like off-shore chinese high-yield bonds lready, quite a bit. increasingly they are looking at other companies as isolated events instead of widespread events. developers -- have these developers held off purchasing in new construction? new construction down 70%? >> that's true. creditors are saying, this is actually very prudent. they are trying to selloff inventory.

rishaad: thank you, liang for aking us through this. rishaad: let's check on some of the other stories we are following for you. to ad: china ccic trying raise about a billion dollars through the listing. cicc was formed in 1995 as a joint venture.

selling its take in 2010. rishaad: to see more on that story, download the bloomberg pp to your iphone or tablet. "trending business" in about 28 minutes. thank you very much, indeed, for joining us. how has it been today? you have a strong balance sheet here. i think we start day one with a balanced sheet, which is important for us.

but we also start day one with maintained, well investments for the people. look, we have to do some work to work out how we take the assets forward in terms of growth potential, but from day ne, they sit very carefully. rishaad: ok. you are going to be the world's biggest manganese producer here, you have the world's biggest silver mine. are you content with the commodities you will actually be mining for, or will you be eeking to add to them? graham kefment rr: the -- we will crawl, walk, and then run. e problem we have from day one, is changing to the regional model, which will alieu us to consolidate the assets and we think grow the assets of the group. driving efficiency, lowering

cost, and driving productivity harder is the best way to actually grow the cash flow of our business. when we get to the next business, we have a strategy that hasn't been part of the company for a long time. to convert that resource to reserve is probably the most value creative thing we can do. rishaad: what would you be looking for in that second phase? raham kerr: if you look at our project pipeline today, we spoke to investors and we spoke about a lot of options around or manganese business, and also around kennigton which is the world's largest silver mine, and some of the other business we have. but we need to do a lot of work to flesh that out of people. rishaad: you have seen what's happened with the commodities complex. you see how prices have been falling there. the thing is, does that make

you an aquirer -- are you going to be prey or predator in the future? graham kerr: look, i think we are focused on all the things we can control. strong day one with a balance sheet and a great set of assets. and take care of that basic business. rishaad: the priority is organic growth looking ahead. you are looking at streamlining the business. what are we looking at in terms of job losses? graham kerr: what we're very much focused on is that regional model first. we will collect some of that regional business that exists today. welcome out in august and talk about results and strategy going forward. we talk about what 32 looks like. in the process, we are in the process of drawing out that

regional model. now is not the time to talk about what does that mean in terms of jobs. but it is not about jobs. it is about how we drive productivity harder. rishaad: you want to shower some love on some of bhp's unloved assets. what sort of productivity gains were you looking for in some of those previously unloved ssets? graham kerr: look, i think we fall into two buckets. having functional support to drive businesses. we will look to aggregate that back into the australian region . i think that is an opportunity to draw productivity harder with a more structured plan. the second thing is, we have a large resource base. there hasn't been a lot of work done on these resources in the

last five years. we need to look at how we convert the resource to reserve. if you convert resource to reserve, you already have the people, you have the infrastructure, you have the mobile mining equipment. it is very value accredited. rishaad: i know they have been quite open about selling some of knees businesses off. they do have some manganese businesses. would you be interested should they decide to divest there? graham kerr: look, we are a partner in the magazine knees business both in australia -- manganese business and also in south africa. today we are the operator. but the current status, we have a good j.v., we work closely together, and i think they are organizations that have a similar set of values.

so i am quite happy with the current relationship. rishaad: graham kerr, thank you very much. making their trading day beaut on the first day on the asa. e company that spun off from bhp. coming up, a full market roundup.

reporter: stories making headlines around the world. secretary of state john kerry jinpinning. xi his trip comes with the north claiming to have launched a ballistic missile from a submarine. some say it was more likely fired from a barge. >> the f.b.i. to examine an

amtrak windshield to see what it hit just before the crash. they say there is a mark on the windshield about the size of a grapefruit. eight people were killed after coming off the track on a curve. > people with signs of starvation and deprivation. some trying to flee a life of poverty. >> indonesia, asia, and thailand have towed some refugees back out to sea saying they are not we will com -- welcome. rishaad: high-level talks in an attempt to find a solution to the refugee problem. haslinda amin joins us to discuss this issue. this issue is critical not just for the boat people but also the countries they are trying

to reach here. haslinda: it is an emergency situation here. the politicians are calling it a deepening crisis. thousands stranded at sea. the u.n. warning against floating coffins. they have been living in boats trapped at sea. that's because captains and uggler are -- smugglers have abandoned their human cargo. they are fleeing their country to get out of poverty. the situation is dire. no country will take them in. they have rallied their neighbors to engage them to come up with a solution. malaysia is especially concerned, because it is already hosting more than 45,000 rohinga migrants that have come over the years. it says it can no longer accommodate.

indonesia and thailand are saying they refuse to take any in. they say it would start an unstoppable flow. rish. rishaad: haslinda amin joining us there with the latest on this refugee crisis there.

rishaad: coming down to the opening in mumbai. expanding his influence as he continues his tour of arab -- our of asia.

mumbai? rea, and now -- the indian prime minister continues his asia tour. a visit to the kundaar shipyard to explore cooperation in science, technology, as well as i.t., as well as space cooperation likely to be discussed. the government has been pushing to try to get more manufacturing into india and several south korean companies. they are seeing india as a favorable destination for investment. india may be able to attract as much as $10 million in business with south korea's exim bank. also the possibility of an

agreement onsetting up korean -- this visit is important not just for trade ties but also a part of india's policy where it is looking beyond immediate southeast asia region and engaging in countries off the wider eastern asia region. the visit is an integral part f that effort. rishaad: thank you. et's get a reminder. here's rosalind. rosalind: let's look at sharp first. urning interexpective -- introspective after the results of losses last week. tweets posted in japanese, "i have many things i want to say,

but today i'm just going to fake it all in." e of them feeling slightly melancholic, and then another, i may have felt depressed, but i will regain my spirit. those tweets have been taken down. we also looked at tim cook. he has been addressing students at george washington university where they -- encouraging students to take risks. he showed them some of the pictures he posted on his wabul account, which is similar to twitter. tom cook, "it's great to see innovation making a difference in the classroom, and we're proud that ipad is part of it there." back to you.

rishaad: that is it for this monday ed decision -- monday addition of "trending business." cap the e break, we re business of the day. our first guest, fred neumann, head of asian economics research. ♪

rishaad: hello, everybody. that's the victoria harbor. you are watching "asian edge." winners and losers. missing valuation estimates. falling the most since 2008.

irmer foundations. brings some relief to troubled investors. angie: i'm angie wells. modi on a mission. the prime minister looks to extend india's regional influence. "beyond the banks." new sources of funding for infrastructure business at home. and horror on the high seas. all that and more on this monday edition of "agia edge." yvonne: and i'm yvonne man. we'll be speaking when the fed minutes come out later this week that could affect some of the asian cnc