♪ rishaad: monday, the 25th of april. i am rishaad salamat. this is "trending business". ♪ rishaad: we will take you to beijing, tokyo, and singapore this hour. a quiet start to the week. policy decisions from the boj and the fed. yen on the up, oil on the way down. sub indices revealing a stronger demand for workers in china.

beijing hosting the world's biggest auto show, overshadowed by the recent mitsubishi scandal. what you think. follow me on twitter @rishaadtv, and use #trendingbusiness. china, hong kong markets underway in 30 minutes. singapore, taiwan, malaysia. no trading in new zealand and australia. a good start after regional stocks fell from a five-month high. asia-pacifice msci third weekly gain of 1%. a number of technology earnings weighing on sentiment, particularly stateside, alphabet, microsoft, and s ony. singapore opening down. ratided of brokerages

for potential breaches of security. taiwan opening flat at the moment. the kospi is flat, a little downside. markets, samsung reporting later this week, i huge component of the kospi. extending losses, down by half of 1%. the yen creeping up after falling the most in 17onths on friday. we have that report that the bank of japan potentially giving a helping hand to banks. offering negative rates, meaning japanese lenders will be paid to borrow from the bank of japan. this is how we are looking in terms of financials.

sony is seeing significant downside, one of the biggest losers on the nikkei 225, delaying annual guidance until may. they are trying to assess damage from the earthquake. ,1 i profit on friday down 9% below its own guidance. profit on friday down 9%, below its own guidance. automakers uptick, despite a possible miss on guidance. honda up by a quarter of 1%. the weaker yen from friday coming into play, but we have seen the yen creep up a little

bit. now up just over 7% year to date on the dollar. rishaad: thanks. apparently china gaining you look at the earliest batch of indicators for april. what you saying, steve? isit looks like a bottom forming, more demand for workers at chinese companies, but many firms are reluctant to invest. the recovery is a weak one at best. private gauges showed the economy is improving, but far from a v-shaped recovery. according to the survey, companies are cautious and looking for policy support from the government. readings for manufacturing and services, both improved, but are

still below 50, indicating conditions are still deteriorating. indicator surveying chinese companies also rose in april, but a sub index for future conditions, the next three months, fell to its lowest level since the gauge began in 2007. london-based research firm world economics out with its own gauge that shows the weaker sentiment and activity from chinese sales managers has bottomed out after its mainr decline, but gauge was effectively unchanged from the previous month in march. satellitehe china said t manufacturing index tracks activity in factories in china based on satellite imagery. april, butghtly in like the other indicators i mentioned, april date it was still one of the weakest in the

past four years. all that being said, with the bottoming of the slowdown forming, most economists surveyed by bloomberg expect the central bank of china to keep rates on hold for now until the fourth quarter. rishaad: thanks. we will have more on that story. do tweet us your thoughts @rishaadtv, include #trendingbusiness. the boj becoming a top 10 shareholder in 90% of the nikkei 225. we are in tokyo. where'd you get the information and what does it mean for investors? >> it is no secret that they have been buying etf's. they have been doing it for five years now, but the data in this article is publicly available data, so we look that the bank boj, how many etf's

it is buying. we looked at company data. lastly, we looked at etf holdings. etf funds disclose with a hold. we put it all together, and the picture it shows you is that if you look at the top 10 , iteholders of a company doesn't say bank of japan on any regulatory filings, but it will tell you that the biggest etf in japan, something about 10% for owns aboutd the boj 50% or 60%, and from that we constructed a picture. that picture shows you that the boj is a top 10 shareholder in 90% of japanese companies in the nikkei 225. etf's, $30s the a year, as part of

its stimulus plan. as it continues to accumulate shares, which is that mean for investors? the biggest implication is that it boosts stock prices because it is a natural buyer every day. regardless of trainings, good or bad, the boj is buying it every day. demand fromstant the boj. the second thing, which is more controversial and perhaps more interesting, on the corporate governance side, if you have an investor that can print money and buy shares, that investor doesn't really care that hard whether that companies are run well. for example, the boj doesn't actually vote on board member pay. it is not vote on the decisions

the company makes, but it does other peoplehe who run these etf's. etf's are not very expensive. their biggest selling point are the low fees, meaning you don't have that much money, that many resources, to analyze company decisions. those people can't spend as much time analyzing the and retain use earnings accompanied might have. they don't have that many resources. you have to wonder that if the the shares,ying up what will that do to corporate governance of these companies. rishaad: thanks. joining us from tokyo. we take a look at the black stuff. all sorts of rumors circulating. we don't report on those. could freeze talks be revived by

opec? we are looking at that and some other stories today. foil this morning retreating from a five-month high as u.s. production fell to the lowest level since october 2014, dropping for a sixth straight week, crude also fell to a low. also talks of another production .reeze that is certainly helping to support prices. we are seeing brent down 1% on monday. the international energy agency expects non-opec countries output to fall 700 thousand barrels a day this year, which would be the biggest drop we have seen in 25 years. are also set to learn more about saudi arabia's plans to rebalance the economy to make it less dependent on oil. its vision forl

the kingdom of saudi arabia later today. we will watch out for that one. shifting gears, banks cutting costs, one japanese lender expanding. it expects to remain profitable at its overseas operations this fiscal year, according to the ceo. he says the company is adding 60 staff in the americas, a 10% increase in headcount. the japanesee lender cutting as much as 1000 jobs. zuho is looking towards the lowers they struggle with and tighter margins in japan. the bank is strengthening its coverage of food and beverage. it has also pumped up its equity this is a i hiring 45 analysts and traders. earlier this year, they formed an alliance on equities. finally, sorcerers telling us

that first-round bidders for yahoo! could find out this week if they are through to the next stage. they have spent the weekend of ,earing down 10 initial offers ranging from $4 billion to $8 billion. a decision on a winner is thought to be at least one month away, but we did hear from marissa mayer. is said that the company moving swiftly to consider officers for its web operations. don't have any interest buthe core internet is is, will have talks -- core internet business. rishaad: still to come, changing its image, what can mitsubishi do to rebrand after the latest fuel economy scandal?

coming up next, volvo strategy, the company's president and chief executive live from beijing. find out after this short break. ♪

rishaad: back with "trending they all the world in beijing for the world's biggest car show in the world's biggest car market. , the industry and the spotlight for the wrong reasons, emissions and fuel efficiency manipulations, the scandal which has surrounded all of this. that's right. the emissions scandal has clouded the event here. we sought new launches, concept

cars, but the people we spoke to saying that this is something that is casting a shadow. ceo ofd from the daimlerchrysler saying the industry needs to be more transparent about testing procedures. it is a shame, because the focus was on suv growth, up 15%, also the increasingly impressive performance of some of the chinese brands, electric vehicles and semi-autonomous driving. i'm pleased to say i'm joined by the ceo of volvo. he joins me now. we have the s-90 behind us. s-90 now?out the when is it likely to be on sale in china and how can you compete with the mercedes e class? >> the segment is quite big and china, close to 500,000 cars.

we want to have a stronger offering in that segment. after the suv expansion. anare doing it with exclusive car, the most premium car built in china. as i mentioned, we've heard from daimlerchrysler, ford, are you confident that you are across your business sticking to the letter of the law and the comes of the law when it to the emissions testing done in your labs? >> very confident we are complying with the law, and we have no cheating devices. i think it is also good that in the future starting next year, we will have more transparent , more transparent legislation, and i think it is very important that they are more in line with real driving, and think that is good for the

industry and necessary for us. gap between lab test and real driving conditions? >> yes, there will always be a gap. they were not representative for the driving in real life. those were the standards, but now we have better standards coming. i think that is necessary. concur with the ceo of for that the regulatory environment and china will be some of the toughest in the next few years? what does that mean for sales and profit margins? >> i think the legislation will be worthless. there will be no relaxed legislation in china. i think we have to be ready to fulfill the as we u.s. and european legislation. tom: you have launched and dishes plans for one million electric vehicles to be sold by

2025. tell me more about those plans. how are you going to pay for them? >> i think it is really necessary to come down in co2 levels, and we believe we will do that with electrification, so all of our future models will include a twin engine hybrid version. we are also developing electric cars, and the first one will be released in 2019. by 2020 five, we will see one million volvos on the road. tom: how are you finding this? other companies are having to cut losses, even german automakers, to pay for their electric vehicles. using modularity, and also have a noncomplex production line. we are focused.

we will have this as part of our architecture. . some saying you're playing catch-up. you won't have an electric vehicle out by 2016. >> we have a realistic way to fy are vehicles. it is dependent on the charging stations. i think we are leading. on top of that, we will have all electric cars. tom: thank you very much. that is the ceo of volvo car group talking to me. i hand it back to you now. thank you. rishaad: tom mackenzie at the beijing auto show. >> now to the stories making

headlines around the world. the japanese prime minister has visited the area, meeting rescue teams and survivors. he also announced plans of a next her budget to address the economic cost of the tremors. he said the budget would include funding for housing, businesses, and infrastructure. the economy accounts for just over 1% of japan's gdp, according to that office. a 12 year released old palestinian girl thought to be the youngest female palestinian to be jailed. given 4.5 months after confessing to planning a stabbing attack at a settlement in the west bank. she was freed early on appeal. it is theinians say result of living under israeli occupation. andpresidential candidates the philippines held their last televised debate, concentrating on manila.

one candidate said she would build a new capital. two candidates would want all projects finish. president would create a new transport and communications agency. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. coming up, hong kong stock exchange planning to reintroduce the closing auction following a seven-your gap. we have details, next. ♪

rishaad: this is "trending business", the hong kong stock market reintroducing a closing auction to bring it in line with

markets in other developed countries. they used to have it, but after 2009, he got scrapped. we have a look at what this is about and why it is important. >> fund managers and brokers have been asking for these for a long time. rishaad: what does it do? >> it settles the price at the end of the day. it is easier for investors to for ahe closing price particular stock, and then they can re-in just their portfolios and investments according to the price. rishaad: why does it make hong kong a more attractive place to do deals? >> this is a well understood practice, when you buy or sell at the close. hong kong was the last market in the developed countries to finally reintroduce it. rishaad: what other projects are underway to improve the quality

of the hong kong market? >> another measure they will introduce after the closing auction will be volatility preventing prices from spiking or plunging more than 10%, a temporary block for five minutes trading, stabilizing corrections. rishaad: i guess it does also open the door for perhaps the chinese regulator to look at this as well and take some lessons i suppose. could be a good idea, because the exchange is expecting more chinese traders coming. they are very volatile and move the market up and down several times a day, so basically making it more stable. that is a very important task for the exchange. rishaad: right, ok, we have to take a break. china's banks facing the first profit declines in years. we look at the earnings reports. the market open in hong kong and

shanghai. a day of losses on friday. the nikkei 225 setting the tone with a negative trading day. that is next. ♪

rishaad: a look at our top stories, china's rebound has gathered pace in april, gauges suggesting the recovery is enduring. expectations for additional easing dow back further. companies are still reluctant to invest. bank of japan becoming a top 10 shareholder in 90% of constituents for the nikkei 225. estimates suggesting the bank is a major owner of blue chips in

japan than blackrock. analysts expect the boj could boost etf's more this week. mitsubishi dipping again and tokyo, off 40% last week over the fuel efficiency scandal. they areelling us mulling a delay in quarterly earnings reports. mitsubishi's test on 27 models failed to comply, amounting to more than 2 million vehicles. the opening in hong kong, and a look at shanghai as well. unsurprisingly, australian and kiwi markets elsewhere a number of things in play. boj, rbnz, all,

with a decision this week. ins is how we are looking terms of the china-hong kong open, down 3/10 of 1%. byna stocks fell last week almost 4%, so the biggest weekly decline in three months. the pboc weakening that daily yuan fix, the weakest since the end of march. quite a bit of downside in terms of chinese markets. the nikkei 225 extending losses. the most in 17 months on friday, but starting to go up a little bit, given we are looking ahead to the boj meeting this week. averse giving those meetings.

a quick look at some of the movers, japan, a mixed picture. friday on surged on word that the boj is considering negative rates on some loans to banks. we are seeing some profit taking when it comes to them. sony is down after saying it releasingin from guidance to assess the impact of the earthquake. elsewhere in the tokyo session, upside when it comes to the mazda, seeingnda, missing itse profit forecast. fx and commodities front,

the yen starting to come up a , strengthening 4/10 of 1%. that is after plunging on friday to the tune of 2%. we are expecting some of these bets on the yen will start to receive ahead of the doj as investors returned to the sidelines. we are seeing weakness on the , gdp coming out from south korea tomorrow. samsung electronics reporting earnings later this week, so some downside for the yuan. finally, a move to the down side the pboc weaken that data. rishaad: getting back to our top story, china's economic recovery gaining pace, at least in terms of the early information we are getting. bloomberg news china economy editor is with me now. some reassuring signs.

>> we often take these indicators with a grain of salt, sometimes partial indicators. watchingwe have been point to the upside of little bit this month. there are two, a services and a manufacturing gauge, both of them in proved slightly. there is still a scenario signaling contraction. reader a satellite image , and it showed a perk up. some sentiment indicators also showing a slight rebound. rishaad: tell me something, where does this leave monetary policy? , thathat gdp print we had is the door for them to do what they like. >> they sat on their hands in terms of the benchmark. it looks like that is set to continue. they haven't done too much on the triple r.

it seems liquidity is flowing. the bank credit numbers have seen a huge wash of new credit coming through the economy. ae pboc will probably take targeted and narrow approach to policy. they are talking about things like helping the overcapacity sectors through that process, so we will probably not see fresh credits. we might see easy credits for companies trying to restructure. rishaad: they are trying to drive it. >> a very tailored and targeted approach, as opposed to central price base.ere, private base the pboc looking at targeted policy, especially and properties. probably see this targeted, multitiered approach, from the pboc.

rishaad: a look at what is going on elsewhere in china. a look at what is going on with the banks. some of the biggest financial institutions releasing first-quarter numbers this week. we may see their first annual profit declines in more than a decade. what we looking at? >> we are talking about the slowing economic growth, rising nonperforming debt, but a key factor for earnings will be how much they set aside for bad loans. we're talking about this provision coverage for big banks that is already falling to the required minimum of 150% of nonperforming debt. fellof the five big banks to just above that 150% line by the end of last year. the is even as they boosted amount of money they set aside as provisions. dropping 156%. npl's comen, rising

a drop to 3% in 2016. take a look at icbc, earnings have started to cool as estimates show that this year they could see its first full year earnings decline since inting and a key factor here its performance will be whether the government loosens its minimum requirements. the economy slowdown could encourage the government to loosen that requirement as a countercyclical measure. that is what analysts are saying. sources said in february that china's cabinet has discussed lowering the ratio, and the regulatory commission would assign the timing and magnitude of any cut. bigces tell us that these banks have used the ratio of 120% already for the 2016 nonperforming loans

are at the highest in decades, so this has sounded the alarm. they say could put into question china's regulatory framework. rishaad: thank you very much indeed. we will take you to some other stories we are following. afterce shares in mumbai fourth-quarter profit jumped 17% on year to its highest in more than eight years. priceillion, the oil collapse helping to improve refining margins. has -- a bit to force him to return and pay off loans. kingfisher airline ceo says he is not a willful defaulter. he says the collapse of the airline was a genuine commercial failure, and offered to under 40 billion dollars -- $240 million

to show his intent that he will pay. considering selling stakes and some of its units to fund anansion plans, looking at initial public offering of some of its overseas businesses. with me is bloomberg news media editor. what are we looking at? the business to look out for is china. is theirse is this second largest after korea. it is also the fastest growing. just to give you an example, the business grew more than double last year versus 5.5% growth in korea. rishaad: what with the company need to do fundraising for? anthey have embarked on ambitious growth plan. the company is targeting to

quadruple its number of screenings by 2020. just to give you an idea of how big that is, no one in the industry right now has 10,000 screens. the first company that will do afterwanda group in china its purchase of carmichael's in the u.s. rishaad: thank you very much indeed. ok, coming up, well, what is in a brand? it may take years to build one, and hours to destroy it. we are looking at that, and at what mitsubishi and volkswagen can do to turn around their tarnished images. ♪

>> welcome back. it is 9:42 a.m. in hong kong. these are the stories making headlines around the world.

charles koch says hillary clinton may be a better president than any of the republican contenders. the coke industry's and ceo says none of the republicans are addressing a tax system which subsidizes established companies and makes it difficult for new businesses. he called donald trump's plan to register all muslims "monstrous and reminiscent of not to germany o." north korea warned of its growing ability to attack enemies. military officials tracked a missile launch that traveled 30 kilometers, shorter than the typical range of submarine launched weapons, which usually fly 300 kilometers. it is unlikelys that the north has an operational submarine that can launch missiles, but admits pyongyang is making progress. chinese police say all 45 taiwanese suspects detained in beijing have confessed and will be put on trial. alongill be prosecuted

with 32 chinese citizens deported from kenya earlier this month. theone has protested detention of its citizens, but beijing says it has jurisdiction week is the alleged victims were chinese. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. right, the latest scandal over manipulative automotive data could cause mitsubishi hundreds of millions of dollars. the real damage will be to its brand. us is tom seaford. -- john seaford. it's not just mitsubishi, we have volkswagen as well, two brands in the same space, different things, different worldviews. let's start off with the overarching idea that it takes years to build a revocable brand

, and it can take seconds to destroy it. >> i think it takes a lot longer to truly destroy a brand, but you spend years building your brand bank of equity, and a crisis can make a lot of that equity leak out of your brand. every big company now has the realization that everyone speaks for the brand, theceo, an employee on front line of manufacturing, that people who are making decisions about risk management, everything contributes to the equity of the brand, and that is the world we live in. rishaad: it is early when it comes to mitsubishi. there is damage already done. no one likes a corporate lying effectively. get theirtsubishi brand equity back. ?

have ahave to admit you problem, understand the source of that problem, and explain what happened and why so you can start the process of rebuilding trust. there are many companies who have had very serious problems and have overcome them, but the ones who do that well and the ones that don't are the ones who say we realize we have a problem, let's get to the root of it as quickly as we can. you need to third parties to validate that. it is often not helpful if it is just saying you identify the problem and fixed it. the more you can have others acknowledge what happened and describe what you are doing about it, the better. rishaad: the danger is, and mitsubishi may just will be the same case, you get a drip, drip, drip of bad news. there is talk in other news organizations that it could be 2 million vehicles affected, rather than the 600,000 many

ini-cars. >> the worst thing is the slow, steady, you think you have all the facts, and you don't, and it leaks out over time. the most important thing is to get to the bottom of this as quickly as possible and scale the problem. if it is something that has been systematic, get to grips with that as quickly as possible see can take the actions necessary to rebuild trust. rishaad: with a volkswagen, they were more kitchen sink and did quite a lot at the beginning. in terms of how they been dealing with the authorities in the u.s. and environmental authorities, some commentators have said they have then quite generous. public, the consumer, regulators, everyone is going to have a somewhat different take on this. in sumer's are often very forgiving. if they believe a brand they have trusted over decades is being candid, is trying to own up to the issues, they will

odyssey be willing to provide a little bit of benefit of the doubt. regulators, those who have a much more in-depth perspective of a particular business, they will be harder to convince. no matter how you address it come a few economy scandal or volkswagens emissions scandal, it's fraud. ultimately for someone who is in the business of judging that legal interpretation. sometimes it is a very simple thing that goes wrong. someone thinks that they should provide certain data from the inside because that is what their bosses want to have done. managing thes internal die gimmick -- dynamic of what is expected for me and the right thing to do. managing the brand from the inside is one of the biggest things done today. if it is not true on the inside, it's impossible for companies to

make it true. rishaad: give me an example of a company which has come into disaster, the brand very much tarnished, and a brand has come back. >> bp had a terrible tragedy in the gulf of mexico, oil rig explosion, 16 killed, oil leak out of the pipeline for weeks and weeks and weeks. it was captured in 20 47 news cycle, a very difficult situation. 4/7 news cycle, a very difficult situation. iny have over delivered compensation to those negatively affected, and they have put together an unbelievable process of making sure that this kind of operational problem is not happen again. does that mean they will be perfect in the future? of course not.

but what it does mean is that they have been as transparent as possible in revealing the underlying reasons for why the tragedy happened and putting into place a methodology for reducing the risk of it going forward. rishaad: the way that you yourself in the space that you work in, that must be diametrically opposite almost. >> this is where the business i'm in of making brands matter to the world is where you are ultimately tested. if you can't reveal to the world what is truly in the heart of a company and the brand it represents and help all the audiences that matter understand what is true about that company, then ultimately you will not serve the long-term needs of that business and brand. rishaad: stick with this, if you would. we have to take a break. indeed, we arep discussing more.

how an image is changing as well. this is "trending business". ♪

rishaad: right, we are back. we are with the worldwide ceo of ogilvie and may. we talked about bringing brands r businessyou are i has evolved. >> i grew up in a time when you posted them, put them on air, and then you waited for results. now we live in a completely turned over world where we go out and it's not just about sending a message, it's about engaging. is definition of advertising about all forms of content, paid, owned, and earned, and how that content engages all of the audiences. rishaad: you hit on the word,

that is you have to be relevant as a brand. now, tell us about that and what that entails. >> we live in a world of fragmentation. there is more content, more channels, more products, everything has growth. the consumer or your buyers can only taken so much. if you do not serve the customer in a way that is relevant to them personally, something that they see value in, not forced upon them, but something they genuinely want to engage with, something they care about so much that they are willing to share it and discuss it with their friends and networks, that is the content we create. rishaad: by relevance, fragmented, also it has to be personalized. >> exactly. we live in a world with so much information and data on how people consume content and what they do with it and how they engage with it that we don't

have good excuses for not getting it right. the problem is that we are so overwhelmed with data, and turbid and applying it -- interpreting it and applying it rishaad: i was reading from brand standing, it is about how someonetarget let's say targeting women between 30-35 who went to the hairdresser twice a week -- twice a month, and it was that precise. >> it is behavior driven, right? now we don't need to second guess how our audiences behave. we know what they do with our content and how much it affects their buying behavior, and so now we look at it as one integrated plan. in asia, the mobile first reality is here probably faster

than any other part of the world , and so how an asian consumer will consume content, make purchases, manage their life in the context of a mobile device, now it gives marketers unbelievable information to understand. asia, mobile penetration is huge and the use of a smart phone is ubiquitous. >> i think asia will lead and train the rest of the world on how to think mobile-first content and reality happening here at great scale. rishaad: what is the next big thing? i think that the next big thing is helping our clients put it all together. where you started, which is what happens when there is a crisis and a company violates a its own values and beliefs about what he cares about, and then how do you think about the precision of consumers who can buy and behave in ways that are immediately

addressable, we have to bring those two things together. rishaad: great talking to you. >> thank you so much. rishaad: now, our next hour of "trending business", back at the beijing auto show. ♪

♪ rishaad: it is monday, the 25th of april. i rishaad salamat and if it -- i'm rishaad salamat and this is "trending business." ♪ we take you to tokyo, watching asia-pacific markets. the first back-to-back declines, as the yen rises. attention turning to the threat and the boj. revealed theda has

bank has been quietly buying most ofc., and is in the nikkei 225. early indicators show strands -- signs of a strength in china. let us know what you think of our top stories. straight to the markets. : as you have been alluding to, we are seeing a picture in the asia-pacific. australian and kiwi markets are the long weekend, but we are seeing a retreat when it comes to money going into risk assets. oil is down, yen is up on the safe haven play. shanghai extending losses, down by 9/10 of 1%. another decline for another week. biggest in four months for

shanghai. we are expecting profits today, and an improving picture. there is a disappointment in terms of equity investments and support for the chinese authorities. also, the nikkei 225 down by a 10th of 1%, with the yen starting to come back up again after falling the most in 17 months on friday. we are seeing that significantly. quite a lot of it is to do it sentiment coming up ahead of a very big week for the bank of japan. we have a reading of the u.s. economy coming through for the first quarter, as well as gdp numbers from south korea, and of course the china industrial profits number. 1%.apore is off by 6/10 of brokerages have been rated on friday. downsides when it

comes to hong kong stocks. let's look at the movers. upsides in financials. expecting missing .uidance by 5% friday they need to assess their impact of the recent earthquake on the productions. back onerage it giving friday's game. we have a report from bloomberg suggesting the boj could look into providing negative rates meaning japanese lenders will be paid to borrow from the bank of japan, alleviating some of the pressure on the bottom line from the negative rates the boj has opted for. market, a couple of interesting movers. this is the one with the missing ceo drama a few months ago.

thatompany reporting profit was down 16.2%. bonds.elling convertible this is the construction equipment and machinery maker, looking lower as well after a reporting of a first-quarter loss that was twice as that is expected. london commercial, it has been suspended. this is following a request by the company to hkx. the owner is filling a plan to withover wanda commercial shanghai.in we are watching that stock and particular. overall, we are seeing a lot of risk aversion so far. rishaad: is the chinese economy stabilizing? there are private indicators for april that show that.

david: there are shines that the bottoming out of the chinese slowdown is happening. there seems to be more demand for workers. are also indications many friends right now are still reluctant to invest. atphen: the recovery is weak best. for new private gauges show the chinese economy is improving, but far from a shape recovery. manufacturing index rose to its highest in a year this the company is still cautious and looking for policy support from the government. readings for both manufacturing and services sectors rising in april. but they are both below 50, indicating conditions are still deteriorating. there are a little better, but still in negative territory. the nni business confidence survey, another gauge out for is forthe survey

chinese companies. it rose in april for a sub index for future conditions. for the next three months going forward, it fell to the lowest level since the gauge began in 2007. a london-based research firm world economics also out with its own gauge, showing weaker sentiment and activities from chinese sales managers, has bottomed out after a two-year decline. the main gauge was effectively unchanged from the previous month. finally, china's satellite manufacturing index. bays from san francisco that tracks activities at factories in china based on sunlight imagery. it notes the activity in and out of factories. it rose slightly in april. like the other indicators i mentioned, april data was still one of the weakest readings in the past four years. all this being said, with the bottom of the slowdown forming, most economists surveyed at

bloomberg expect the central bank to, keep rates on hold at least for now, at least until the fourth quarter. rishaad: thank you. boj quietly intervening when it comes to the share market in japan. it has become a top 10 shareholder in about 90% of the nikkei 225. we have a look at the information and what it means for investors. the information is publicly available. we just put it all together. the information from the central bank, companies on who the big shareholders are, and the funds. they also say they disclose the information. it was all public.it's not a secret the boj is buying. but if you look at company records, it will not stated boj is a top shareholder.

you have to look at the funds that the boj buys. the etf funds go out and buy the company's share themselves. as we put it together, it turns out the boj is a pretty big shareholder, top 10, 90% of the nikkei companies. for some companies like mitsumi electric, that provides parts for iphones, boj holds about 11%. it is huge. for some companies, the top three shareholders. is twofold.ion it helps prices. it means the boj has to be there buying it all the time. secondly, you have to wonder what exactly this means for come -- corporate governance. if the boj can just print the aum, essentially. will they really care about how well the company is being run, when it can just keep on printing money?

i think those are the two implications for shareholders and investors. rishaad: now that the boj has been buying, we've got a lot of economists saying the purchase is going to actually perhaps increase. what happens if they double or triple the amount they are buying? is there a limit? reporter: i guess there is no limit, so to speak. but economists do expect them to increase purchases this thursday. if they do, according to my calculations, goldman sachs for example estimates it is at ¥3 trillion a year. then it will go up to ¥7 trillion a year, estimated. at that rate at the end of 2017, the boj will on about 25% -- it will be the top shareholder in 25% of companies on the nikkei 225.in some companies, people are you o, theiliar with uniql clothing brand. predicts the boj

will have 20% of the company and will become the largest shareholder. it brings up corporate governance questions. is this really good for other shareholders? the boj doesn't vote directly. a, and the other directors, they both read them. but the thing is, it is very low cost and the managers cannot use a lot of money and resources to analyze shareholder proposers -- proposals. it brings into question whether what this does to the corporate governance landscape in japan. prime minister abbe has made that one of his goals, to increase corporate efficiency. you have to wonder if the number one shareholder is a central bank that can print aum, how much will it help corporate

governance? i think that is the neck question we have to ask, so that is hopefully what people will be looking at this thursday when the boj announces results. rishaad: thank you very much for that. that is mr. not them are joining us from tokyo. nakmura joining us from tokyo. a we had something that got abolished in 2009, but it is coming back in two months from now. yvonne: that is right. good news for fund managers and brokers. hong kong stock market is reintroducing a closing option after that seven-year gap, to bring it in line with markets in other developed countries. hong kong exchanges and clearings says the new price setting system will determine if there has been manipulation by limiting price moves and allowing the market to close randomly in the final two minutes. the new system will have to avoid what happened back then. hkx'souble of hk asked --

first was closed after shares plunged in the final 10 seconds. they hope it has a 10 minute trading session. it would be the last of the 22 developed nations without a closing option. it is scheduled to start on the 25th of july. we are watching lance shares at the opening in mumbai this morning, after fourth quarter price that's -- profits. the highest in more than eight years. that is a $1.1 billion, with oil price collapse helping improve refining margins, now at $10.80 per barrel. the refinery projects are worth $15 billion in the next year. they are also investing in projects to reduce energy and

stock costs to boost profits. the company controlled by a billionaire is also investing in -- another 15 billion to start hotel service and working to complete the 4g network this year. finally, let's talk about yahoo! sources telling us first-round bidders could find out next week about the next stage. there are said to have spent the weekend narrowing down the field of 10 initial office, and that ranges from $4 billion-$8 billion in value. we are told bidders include verizon, yp holdings, and a consortium by bain capital. yahoo! chief executive officer marissa mayer said on an earnings call last week that the company is moving swiftly to consider offers for the web operations. we have also learned sources say softbank does not have interest core interneto!'s

business, but will have talks with any buyer that wants to stake. the yahoo japan those are the stories we are watching this morning. rishaad: thank you. on our website we are looking inside one of the world's most secretly -- secretive iphones. coming up, we've got a visit to beijing, seeing the latest innovations from the auto industry. we get responses from the emissions scandal that have been hurting the industry's image. next, and outlook for commodities, not making for that great a picture. ♪

rishaad: we are back. commodity prices have rebounded since january.

the executive director for commodities in singapore joins me. your global view of the --ey as far as commodities moment as far as commodities. what is really at play? guest: i think it is really simple. three things people need to watch. the first thing is what the feds say. do they continually remain dovish or start to turn the corner and turn a bit more hawkish? the other thing is china housing. that is underpinning the sentiment right now, and also chinese exports. i think those things are crucial for the steel sector going forward. i think it's pretty simple that those three things will drive the market in the next couple of months. but we always have fed concerns. the thing is, when other choppy times when it comes to commodities? let's talk about wheel.

we -- oil. we had these talks about production, dissenting in disarray. we just did about 45. where do we go? guest: i think we go to the downside for a little while longer hear the reasons behind that are a couple. the first is we are still in oversupply. we don't think the production cuts we are seeing in the u.s. and non-opec companies are large enough yet to structurally support the oil price higher. probably for the net couple of months, we go to the downside again, sort of the $30-30 five dollars range. but after that, we start to think they look a little bit better. the other factor is what opec is going to do. this morning, around is out thing, we are happy to disable again, but it's a little too late. they had that choice a couple of weeks ago.

they chose not to attend and make commitments to a production freeze. we think saudi arabia is still in the position to increase production, at least in the short term, so we think the price will move to the downside. it is pretty clear, but on a longer-term basis, the cafe cuts tohave seen are large enough really lift the price higher back towards the $55 mark. rishaad: where else -- what else are you looking at right now? in australia, we have had this boom to bust cycle take place. iron ore is interesting, does seem like it is coming back. do you buy into that? guest: iron ore has been incredibly volatile compared to the past, but i think the downside is for iron ore around the $50-$55 mark. largely because, although production was somewhat theailed, and we have seen

release of the first quarter results, the output actually increase significantly. as we get into the seasonal pickup in exports, we think that meet the seasonal down cycle for purchases into the steel sector into china. largely, we have seen restocking in china come back very sharply, but unless the housing market continues to move forward in the current event, clearly we are going to see iron ore prices soft in here. that is pretty negative for the aussie dollar going forward, so sellers of aussie dollar's are also sellers of iron ore. rishaad: last week we were talking about this trade, which many people were looking at, which was go long silver and go short gold. where are you with that? guest: i think maybe we've got a on in that,urther but not too much further. we are looking at a gold silver

ratio, a lot of resistance around the 70 level. we are getting pretty close to that. fairly litigated -- negative gold in the short-term. looking medium term for 1200 announced. in the short-term, the rebalancing of expectations will be way on gold. on the season -- silverstein we are not that bullish. largely because we see a rollover in the tech cycle. as well as other companies, a lot of pressure. for silver, tech demand is around 50% of total demand. therefore, we think that that is going to soft in, so we are not that bullish on silver either. we keep trading around the 70-80 mark on the gold and silver ratio, around 75 at 12 months. gordon: thank you, wayne from wealth management.

reporter: now to the stories making headlines around the world. prime minister shinzo abe has visited kumamoto, with rescue teams for the earthquakes. he also plans to announce the next budget to address the economic costs that killed 48 people and disrupted production at several companies. the budget will include -- include funds for housing, businesses, and infrastructure. has released a 12-year-old palestinian girl ought to be the youngest female palestinian in the jail. she was given 4.5 months after confessing to planning a stabbing attack at a settlement in the west bank. she was freed early on appeal. israel blames a wave of violence by palestinian religious leaders. the palestinians say it's the result of living under israeli occupation. the presidential candidates in the philippines held their last televised debate, concentrating on manila's chronic traffic. miriam center iago says she

would build a new capital, while the others pledged to ensure current projects are finished. another would ban elderly vehicles from main street and held elevated train lines, while the vice president will create new transport and communications agencies. powered by over 2400 journalists in 150 euros around the world, this is bloomberg. whyaad: coming up, find out investors are playing political football ahead of australian elections. details, "trending business," back in a couple of minutes. ♪

rishaad: property investment has moved front and center as an election is soon in australia, with the government ruling out changes to a controversial tax break.

the opposition is hoping to scrap negative, but others don't see like that. it really does with the community. the labour party hoping it will deliver votes, mainly from people who can't get on the property letter. of course, we well know that property prices in australia, particularly capital cities, have been soaring in recent years. there are a number of sectors blamed for that and one of them is negative gearing. this is how it works. if you are a property investor, you take out a loan to buy property. you ensure that the rent does not cover loan repayments, and then you can claim the loss as a tax deduction from regular income.critics say this incentivizes property speculation. the labour party says they will and the practice for existing properties by 2017, but it will be retained for new properties so construction continues to be

encouraged. rishaad: negative gearing has plenty of support, doesn't it? reporter: it does. a lot of people have gone pretty deep with negative gearing, because it has been part of the landscape in australia for so long. it is worth saying, the government put together a policy response over two months. the government is banking that there are more votes to keep it then there are to get rid of it. but they say getting rid of it would really depress property prices quite severely, and the banking -- they are banking on homeowners not wanting to see that happen. they say it would discourage property investment and cause rent to rise as well. but it is interesting that we now have an election issue that really has the two parties at odds with each other, and it is an issue that goes close to the hearts of voters. rishaad: thank you very much. paul allen there in sydney. coming up, chinese banks could

be facing the first profits drop. trending business is back after this. ♪

♪ our top stories, shares headed for their first back-to-back declines, levels below is since november. the yen strengthened, leading gains among major currencies. motors shares dipping again in tokyo after losing 40% last week over the fuel efficiency scandal.

mitsubishi tests on 27 models failed to comply with standards, and that would amount to more than 2 million vehicles. early indicators showing china's property-led rebound has gained in april. the accompany and marches and data tracking that this is outlook show the company -- the companies are reluctant to invest. japan closing for its lunch break. australia and new zealand not trading. elsewhere around the region, a distinctly risk aversion ahead of the big three central-bank decisions this week. out withboj, and rbnz policy decisions. we are not expecting much out of

fed, the chance of a rate hike is 0%. do bank of japan expected to something in the way of expanding fiscal stimulus, be it etf purchases or a cut further into negative rates. the nikkei 225 extending those losses as the yen continues to pick up after falling the most in 17 months on friday. --nghai up, extending shanghai also extending that weekly decline, falling the most in a week. , but if werehina getting a better industrial profits number, there is sentiment the date is good, less stimulus. traders ona lot of the sidelines. singapore down 7/10 of 1%. a lot of sailing on those

-- raids.rates a bit of a mixed picture when it comes to tokyo, the financials giving back lanes in late trade on friday on that report from bloomberg that the bank of japan may be extending negative rates when it comes to loans, japanese lenders will be paid to borrow from the bank of japan. is some pain on the bottom line that comes through that negative rate decision, but some profit taking on the back of those gains. sony down, as expected. pushing its announcement on guidance out, saying it needs further time to assess the impact of the earthquake. onfits miss guidance by 10% friday. this is what we are watching on the mainland, hsbc singh downside, suggesting that it may

need to restructure units. the construction machinery maker , its results were twice as bad as expected. rishaad: thanks a lot for that. commercial properties suspended ahead of an announcement as a billionaire looks to take the developer private. we've been tracking these developments. the plans are going ahead. what happens next? promised investors that he will relist in china by august 31, 2018. what happens next? ithe succeeds in taking private, he will start shuffling assets. this is a company that has been buying properties, selling assets, buying assets, buying into insurance companies, really diversifying, and i would say up to skating -- all you skating

theay look different from company whose shares a been suspended today in hong kong. rishaad: our other chinese property companies likely to follow suit? >> today there was news that ever grand is planning on buying 50% of a listed company in china, also a property company, which would give it the opportunity to reverse merger and the list from hong kong. has a lot of foreign shareholders, and unwinding a company is never simple. delisting, you have to get everybody on board, so we will see what happens. rishaad: both these companies also buying insurance, and insurance i guess in many other ways. >> that's true. they have both taken stakes in theese insurers because biggest challenge for them is always cash, property developers. they look at the insurance

companies as a good way to turn on the spigot, and that way they can keep building up their banks. do they have the skills to do that? developers moving into finance, also online, so it is difficult to say what this space will look like 12 months from now. thank you so much indeed for that. , thead: sony shares company will delay the released of annual forecast. the company saying the suspension of its facility due to the recent earthquake may have an adverse impact on operating results. sony saying they will release the forecast in may instead. the latest inflation reading from singapore, and this will not look pretty. deflation deepening, prices falling for a 17th consecutive month, also the rate of contraction growing.

we will see singapore's longest-running apprised the kleins on record, if analysts are correct. a diplomaticoked passport to force him to return and pay off loans estimated at $1.4 billion. the sale of the kingfisher not aes, he said is willful default. he said the collapse was a genuine commercial failure. he offered to pay $240 million to show his intent to pay up. mumbai has issued a non-bailable arrest warrant. it expects to remain profitable as overseas operations this fiscal year despite the trading slump. the ceo is saying the company is adding 60 in americas, a 10% increase in headcount there. we are in tokyo. mizuho choosing to expand at this time. looking at mizuho,

nomura would be a classic example. at cuttingooking back staff by 1000 headcount. and here we have a new ceo appointed at the start of this month, when we spoke to him last week, adding 50-60 staff. they're extending the workforce by 10%, so still quite about the united states as a place to do business, where is at home they face a shrinking market. it is very difficult for them to make money. they are following up with the ,urchase of assets last year integrating several hundred staff in doing that. they continue to add staff on the security side. they call it a super 30 or super 50 strategy, the top end of the

corporate blue market, developing relationships and trying to merge the banking business with the securities business, issue bonds, advise on a quiz editions. -- advise on acquisitions. rishaad: what are we expecting here in the coming weeks? >> that's right. nomura first up on wednesday. we are expecting the bank to to haveed on consensus earned less in this quarter than last year. it has been a tough environment the last quarter on the investment banking side. in the future, when the commercial banks report, three banks we are watching closely to see how they've been affected by the negative interest rate policy and japan. of an't expect too much hit in the current fiscal year, but next year's forecast will be the big one to see what the banks are predicting will be the impact of this policy, and any

tinkering that might happen to it this week. rishaad: thanks a lot for that. joining us from tokyo. we will stay with banks and have a look at some of china's biggest ones, now releasing fourth-quarter results, and we could see a profit decline. factor for chinese banks earnings is their position to cover bad loans, how much money they set aside in order to cover these bad loans. the minimum requirement right now is 150% of existing nonperforming debt. already, we are seeing four of the five big banks coverage rachel falling to just above that level of 150% by the end of last year. that is even as they boosted the amount of money they set aside. bank of china just above that 150 line. icbc 156%. the slowdown in china, not to mention rising nonperforming loans, all affecting the

profits. these banks may drop 3% in 2016 according to analysts. now, icbc, they're earnings starting to cool. this year, they are expected to record their fourth full-year earnings declined. a key factor for analysts trying to forecast what will happen with banks earnings out this week is whether the government loosens up this minimum requirement. rishaad: could the government cut this mandatory minimum? saids, right now sources akin february that policymakers had discussed it. the repertory commission will step in, and it would depend on when they want to cut it and by how much. the banks have already said that the minimum is 120% instead of 150% already for budgeting this

year, but keep in mind that banks and nonperforming loans are at the highest and a decade right now, so fitch ratings has found -- sounded the alarm, relax that if you standards more when the banking system is flat, this could put into question the regulatory system in china. still, if they go ahead and cut this requirement, bnp is saying that the banking industry as a whole cut a 10 percentage point from that 150 percent minimum, you could see banks earnings rise by 7%. rishaad: thanks for a much indeed. up next, in their first televised chance to woo voters, presidential candidates in the philippines focus on manila's traffic. we have more. ♪

the motor industry showcasing its latest and greatest in beijing this week, but the show is overshadowed by the scandals that have engulfed volkswagen and mitsubishi. tom mackenzie is there for us. let's start off with these testing scandals. what is the mood there? what are people talking about and saying? it is certainly on the top of the agenda in beijing. largely because the industry leaders just don't know how far this all goes. they don't know what the implications are for regulations going forward. the suspicion is we will get greater oversight by the , andrities, or probes tighter restrictions, but how all that feeds through into the industry is what everyone is talking about here.

we heard japanese newspaper that theying mitts is he sh mitsubishi test could affect up to 2 million vehicles. daimler asked to investigate operations in the u.s., peugeot as well, as to look at their operations in france. we've heard from the ceo of daimler, who says there needs to be more transparency from automakers. we also spoke to the ceo of ford and volvo. i asked them both whether they were confident that their going by thee letter and the spirit of the law. very confident we are complying with the law, and we have no cheating devices. thatnk it is also good starting next year, we will have more transparent cycles, more

transparent legislation, and i think it is very important that they are more in line with real driving and think that is good for the industry and necessary for us to show. >> when you look at emissions, we meet all applicable emissions requirements. we do not employ so-called defeat devices. our approach is to make sure we meet the letter of the law. in china, the legislation a rulemaking that is being proposed right now is probably the most strict over the next five years in terms of reductions in the world. whatever that is, we will work to meet that. volvo and ford ceos on the emissions scandal. increasing numbers of auto executive saying there is a gap between the tests and the results in the lab and the real test when you get the car onto the road, and that gap needs to be narrowed. something, what

other issues have been getting the most play in the lead up to the show? suv's have been a hot topic international and chinese brands rolling out more concepts and more models. last year, the number of suv's sword 52% in china. people are trying to create bigger, better, more sophisticated cars appealing to a chinese consumer that once safety. we've seen the demand in the u.s. and europe, now it has moved to china. also, electric vehicles. offersernment in china oferous subsidies, so a lot local brands and international trying to get in on that. from volvo earlier. they say they want to get one million electric vehicles on the

road by 2025. companies like excellent, formerly an online tv company, moving into smart and semi-autonomous vehicles, so very ambitious plans are in beijing. rishaad: thanks a lot for that. tom mckenzie in beijing. >> now to the stories making headlines around the world. charles koch says hillary clinton may be a better president than any of the republican contenders. the coke industry's chairman and ceo says none of the republicans is addressing a tax system which subsidizes established companies and makes it difficult for new businesses. he also called donald trump's plan to register all muslims in the u.s. monstrous and reminiscent of nazi germany. north korea says it has successfully tested a ballistic missile from a submarine and warned of its growing ability to attack enemies. officials and south korea track

to launch, saying it traveled 30 kilometers, much disorder and the typical range of sub launch weapons. south korea says it is unlikely the north has an operational submarine that can launch missiles, but admits that pyongyang is making progress. say all 45ice taiwanese fraud suspects detained in beijing have confessed and will be put on trial. they will be prosecuted along with 32 chinese citizens who were deported from kenya earlier this month. tie one has protested the detention of its citizens, but aging says it has jurisdiction because of alleged victims were chinese. no trial date has been announced. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. now, manila's chronic traffic is one of the hot issues in the presidential race in the philippines. the candidates discuss the problem in their third and final debate, the last one to impress

voters ahead of the may 9 election. let's get more now. quite a wide range of solutions, no? >> well, you can say that. one candidate will build a new capital to replace manella. one senator and another candidate will push through current infrastructure projects, and that is to ease the bottleneck. he willt runner says ban all vehicles from main street and build elevated train lines. most of the ideas have merit, but there are huge challenges in manila. manella's traffic chaos it's worse. why? a rising middle class are driving demand for cars. sales jumped 20% last year. it is a city of 12 million people, some not surprising that the day bracing for

when the city will come to a standstill. if you want to talk about economic costs, the government estimates that traffic congestion is costing it $64 million a year. -- a day, just under 1% of gdp. when you take a look at traffic congestion, one of many issues being addressed by the candidates. the economy, is among the fastest growing in the world. the stock market has more than doubled since the president took office in 2010, jumping from junk to investment grade. whether or not the momentum continues will depend on the next president. the front runner says he wants to eradicate corruption and put criminals behind bars. we will have to wait and see, may 9 is the date. rishaad: thank you very much indeed.

global leader in cinema screens facing a challenge from korea. conglomerate by a with an investment in kapok. ♪

is "trending business". divisioninema

considering stakes to fund expansion. gv is looking at initial public offerings for some of its overseas businesses. let's look at what is going on here. why? and what are the stakes they will be selling? >> in terms of what they may be selling, a couple of businesses. one is china, the biggest gv outside ofc korea. the other is mars, the largest cinema operator in turkey, which they just recently bought. they led a group of investors for more than six under million euros. rishaad: what is behind the fundraising? >> it is to fund growth. as i pointed out, they just recently bought mars, and the

company has gone on record saying they are interested in another company called odeon. bandad: that is a global -- brenda goes back for years. >> right. it is all part of the company's ambitions to quadruple its number of screens. as of today, no company and the world has that many screens. a company you mentioned earlier, may cross that landmark. rishaad: why this business in particular? >> at least in china, it is one of those rare industries which is actually growing fast. movie industry is growing at rates of close to 50%. the is at a time when economy is slowing, so it is one to look out for. rishaad: thank you very much indeed. just having a look at what is going on as far as fundraising enterprise is taking place.

a quick word about this new version of jungle book, looking strong again, beat snow white, the huntsman, leading the north american box office for a second week. voices offeaturing bill murray and scarlett johansson, $61 million. disney may roll out one of its best slates ever, while you are universal may find it hard to match last year's records. that is it for "trending business". of the daye stories on "asia edge." prospects for 2016, and the beijing auto show. ♪

rishaad: it is another trading day, and this is "asia edge." ♪ a look at our top stories, markets facing their first back-to-back declines in the month, oil using up all of friday's gains, and the doj, three-week lows on speculation, and meet the tokyo whale. the boj has been buying up japan

inc. i am angie lau. also coming up this hour, an theusive look inside controversial apple iphone factory in china, and bloomberg investigate claims of low pay and excessive overtime for workers. less, it is the aging auto show. scandals,rshadowed by and recovering from the revolutions of cheating, and we speak to the ceo. let's get back to the markets right now. heidi? heidi: we are retreating and we are seeing quite a lot of risk sentiment, and this is ahead of a tr w