and investment. pitching a ride, another big factor. terror and hatred, more details emerge about the gunmen who killed 50 people in america's worst ever mass shooting. juliette: keeping an eye on the markets, hong kong and tokyo dragging the region lower on what has been a dreary start to the trading week. investors playing a little bit of game of waiting. there is also the bank of england and brexit concerns. the hang seng down, the most it has fallen in four months. nikkeiger yen sent the

225 down. i will have more on the market movers shortly. fears are starting to send investors looking for assets overseas. we will get to that story in a few moments. i want to tell you about the killing of 50 people in a gay .ightclub in orlando it has opened another debate about guns and the united states. president obama says the massacre was an attack on all attack of an terrorism as well. we have yvonne man following the story. what are we learning about the killer? >> the gunmen was omar mateen, a

29-year-old u.s. citizen, born in new york. he did live in florida. those who knew him say he was a bodybuilder, religious person who at one point thought about joining the police. callbi says he made a 911 before the attack on the pulse nightclub. he allegedly made comments to coworkers about links to terrorist groups. the following year, he was again investigated but nothing incriminating was found. he worked as a security guard since 2007 and despite official suspicion was able to legally buy guns just last week. angie: this has become a

presidential issue with candidates responding to the killings. what have they been saying? >> donald trump called this the worst attack in the u.s. since 9/11 and said president obama should resign because he refuses to say the word radical islam. he accused hillary clinton of doing the same and said he predicted such a tax would happen. -- attacks would happen. this is what he tweeted out. clinton said -- here is what president obama had to say. fbi isnt obama: the investigating this as an act of

terrorism. we must spare no effort to any,mine what, if inspiration or association this killer might have had with terrorist groups. what is clear is that he was a person filled with hatred. we will uncover why and how this happened and we will go wherever the facts lead us. father saiden's religion had nothing to do with the killings and his son homophobia.n led by stepped up ateen gay pride events and other venues across the state. it is the worst mass shooting in modern u.s. history. we have china's economy studying in may as factory output held up even as private investment slowed. tom mackenzie has the details.

economy holding the line, stability being the keyword. a word that will please policy makers. industrial output from a was up 6%. it suggest there is continued demand in the steel and coal sectors. sales came in at 10% year on year, close to the forecast of 10.1%. interesting to see that auto sales picked up. fixed asset investment, a slight they cameoncern that in up 9.6% well below forecast of 10.5% for the month of may. seene context, we have improving and stabilizing data

when it comes to pmi manufacturing and services as well and we have seen those factory deflationary prices easing somewhat. improvingen imports as well and it points to a more stable picture for the chinese economy. this gives policymakers some room to push through with those supply-side reforms they have been touting. angie: any surprises? sales, theyautomobile camepointed in april, that -- that was below estimates. this time for the month of may, they came in up over a percent. people buying more cars. that will be positive for chinese and western automakers, showing there is a bullish consumer in china, at least for

the time being. most chinese consumers expect their wages to increase. economist say we are expecting an l-shaped recovery. angela merkel has called for foreign investors to have the same rights as local shareholders in china. she said the rule of law is crucial. the president of the european union chamber of commerce in china, we asked him how this issue is affecting two-way relations. >> it is slightly overdone because we have more chinese investment going in to germany and we have an open economy, i think there will be no big issue about the forthcoming possibility of chinese companies taking over private companies. germansame time,

companies who want to do business here in china do not have the same rights. we do not have the same freedoms of taking a target interesting to us. market access is constrained. angie: brexit fears are sending investors searching for safe assets. decision to leave the eu or stay goes beyond pure economics. >> i think it is in britain's interest to leave, but of course, there are different views on this and this is not all about economics. lots of people in britain are voting on this, a view about sovereignty, control, and migration. angie: the fed meeting this week is another key event we are watching for you. suspicion growing

that policymakers may actually raise rates this time. >> the problem with the fed is they are kind of in this data you can look at something and say things are great. but you can look at something out and say things are not so great. they are finding whatever justification they want to make whatever decision they want. angie: let's get back to the markets. it does seem risk off appetite is a play. juliette: the regional index down 2% in the morning session and that is due to these concerns about brexit and the at the most see meeting this week. nowhere for investors to hide. you can see every sector is heavily in the red. 2%.ncials down by around

basic materials leading those losses on weaker commodity prices, down by 2.6%. on top of that, we have seen quite a lot of movement in the currency market. the currency resumes for the first time since wednesday. china's markets were closed on thursday and friday and we have seen the one have a downward have a downward spike. everyone has been keeping and i on the found ahead of the brexit -- an eye on the pound ahead of the brexit vote. all of this weighing into

regional equities. symantec is preparing a deal for 4.6 billion dollars. it is expected to close around the third quarter of 2016. with the purchase comes a new ceo. announced michael brown was stepping down. china life insurance has put $600 million -- the investment includes $300 million in equity and 300 million in long-term debt. the two companies have agreed to form comprehensive partnerships on internet power financial innovation.

last month, didi won investment from apple. the company is looking to raise about a billion dollars. it could have pulled $4 billion had it listed earlier. evaluation -- the valuation could be much lower than its rivals. the final price will be set next month. group units are taking up tumble, falling. shelved whatate could have been the biggest ipo this year. becauseeen put on hold of the widening investigation.

>> it may be being pulled. lottie group says it will be physically difficult to complete the procedures for the ipo by the deadline of july in this is because of the steps they may need to take. this comes in the wake of an investigation into the conglomerate. looking into allegations of slush funds. it includes the hotel and its home shopping site. hotel lotte is the biggest hotel operator in korea. it also runs an amusement park and is the world's third-largest operator of duty-free shops.

it also lowers the amount it needed to raise. possibly, the ipo may completely be shelved altogether. this: coming up later hour, australia's multimillion dollar plan to save the world's largest living structure. steady as she goes, china's latest production figures hold up as consumers keep on spending. we will unpack the latest data out of china. ♪

>> the stories making headlines around the world. president obama says the gunman who killed 50 people at a florida nightclub was filled with hatred and the massacre is being investigated as an act of

terror. another 53 people were wounded at a gay club in orlando. the killer has been identified as omar mateen. the f the a's says he talked about -- the fbi says he talked about the so-called islamic state. >> this massacre is a for the reminder of how easy it is for someone to get their hands on a weapon that lets them shoot people in a school, in a house of worship, a movie theater, or a nightclub. we have to decide if that is the kind of country we want to be. if we do nothing, that is a decision as well. >> iran says the new oil contracts need to -- need revisions. the oil minister says the government and regulators have

reached a partial consensus on the language, but the deals are two to three months away. david cameron says he is confident the campaign to keep britain and the european union is working -- in the european union is working. 44% support britain remaining. poll for the sunday times showed 43% of respondents wanted to leave the eu with 42% happy to stay. powered by over 2400 journalists in over 150 bureaus, this is bloomberg news. back in ons check markets right now, a lot of risk on the table. we are joined by andrea

sullivan. it looks like china's latest it ishows that once again stabilizing. ask the government will be happy not to try to pull -- >> the government will be happy not to have to pull any levers. it is probably what they are looking for in the long-term. angie: policy, it do you think it is going to ease a little bit more? it is connected to what is happening globally. that is why we saw the soft on friday. -- the selloff on friday. it is key that it can manage this transition as well as coping what is happening on the global arena. angie: it reflects the market

sentiment about china, doesn't it? >> we have seen a lot of stabilization, but that does not mean we will see growth. people are looking for growth. people are looking to be very defensive. we are not expecting the fed to raise rates. still be data dependent, ignore the june figure, and still raise rates. that gets them one step towards where they want to be. they want to have that cushion. angie: over the weekend, we did get foreign direct investment and it was markedly down. the expectation was that it remain in positive territory. -1%. is this a reflection that the bets are off on china?

>> i do not think the bets are off. it is still a very large country, input and country. -- an important country. you blur still looking at the yuan -- people are still looking at the yuan. it is just one player on the global arena. is all about whether you think the growth in the u.s. will be growth -- greater than the growth in china. angie: what do you believe? >> for the long-term, china is moving in the right direction. it has reformed its markets. the shanghai conference, we heard a lot of encouragement about opening the commodities market. it will flow through into the service sector and more consumer demand.

but it will all take time. it is a matter of picking good stocks. angie: we will get those ideas from you in 20 minutes from now. andrew sullivan, stick with us. southeast asia starts changes, investors are turning back to .ussisean equities we will take a look next on "asia edge." ♪

angie: southeast asian stocks trading at their highest levels since 2015 and investors are betting there is more room to run. optimism ining this the region? >> the changing fortunes of southeast asia. rising commodity prices, the unlikely u.s. rate hike in july. new leaders in power, rising

government spending, and interest rate cuts and southeast asia. it is like the stars are aligned for investors to put the money into the region. the regional benchmark is up more than 6% this year. spots andight southeast asia. -- several bright spots on a southeast asia. bright spots in southeast asia. go to vietnam, the other one to note. 6.7% growth this year . also opening up more to foreign investment. a lot to be bullish about, even for indonesia. shares got a boost on signs the amnesty is close to being

implemented. there is a sense the government is able to support growth. not everybody is participating in the rally. malaysia, for example. >> you are right about that. they are missing out on the party. investor interest has been muted, at best. malaysia has been plagued by scandal. than $1 billion of stocks in just six weeks. the noises on the political front is not helping. we are looking forward to the afternoon business in tokyo. a live look at the imperial

palace drenched with rain. risk off sentiment across the region, the yen rising cents -- to its strongest level. ♪

angie: asian stocks have tumbled by the most in two months. growing fears the u.k. will leave the european union. japanese shares have been weighed down by a stronger yen and oil has retreated. investors are awaiting monetary policy decisions this week in japan, britain, and the u.s. china's economy studied in may in may.ied .etail sales climbed 10%

the data suggests monetary doing its job. the gunman who killed 50 people was a u.s. citizen of afghan dissent. --descent. omar mateen was 29 years old and had been working at a -- as a security guard. the presidential candidates have reacted to the massacre with donald trump saying it proves he is right on extremism and hillary clinton calling for tighter gun laws. : it is more than a nightclub, it is a place of solidarity, empowerment where people come together to raise awareness, advocate for their civil rights. reminder thatring

a tax on any american regardless of race, ethnicity, religion, or sexual orientation is an attack on all of us. angie: those are the headlines from bloomberg news. let's get the latest on the markets. japan comes back online after a very negative morning session. juliette: investors showing a lot of trepidation. it is a big week, the fomc meeting, the bank of japan, brexit concerns. a lot of selling coming through. the stronger yen impacting stocks, particularly exports. quite a bit of weakness coming from the export companies. weakness in the asian markets, despite the stable data coming

out of china. the hang seng is down by 2.6%. australia is closed for a public holiday. that is the state of play on monday.y -- dreary angie: china's economy studied died thish -- stea month. retail sales climbed 10%. how should we read these numbers? >> good morning. we are seeing stabilization. what we are not saying in china's economy is -- not seeing in china's economy is momentum. ok.il sales are holding up private companies are not spending. you take it all together and you say, china's economy is not getting any worse.

the fact that it is not getting any better despite all of the worrying sign. failure to get momentum with the problems they have to deal with. when you take them all together, it is quite a fragile makes. -- fragile mix. hade: it seems overcapacity an impact on fixed assets as well. >> the private companies do not have the confidence to spend money, to invest. they are worried about falling profits. the government has to step in and spend the money. going forward, if this trend continues, the government will have to fill the gap left by the private sector.

angie: they are not spending money on coal and metal production. with policymakers, if you say they need to act, what would they do? >> it is a delicate trick. they have to cut back on excess capacity. stop spending in those areas. but they cannot afford to pull back completely. trying to keep debt -- that is the real challenge. angie: a lot of balls in the air for china. japan's favorite messaging app has belatedly pushed the button on its ipo. the two-year delay has cost a

pretty penny. the company is looking to raise about a billion dollars but it could have pulled in $4 billion had it done it earlier. why are they pushing ahead now? >> very interesting move from the company. they probably realized they reached a limit in terms of growing users and revenue. possibly, they're looking for more aggressive m&a targets. another angle would be they want employeeprice on the stock option. 30% of the operating expenses spent on hiring people. is the way company --attract patterns

angie: tech does depend on people as its greatest resource. what about a suggested valuation? >> since the company did not a veryney last year over unfortunate acquisition, it is fairly reasonable. they are listing the company at .bout 4.7 times price toay in terms of sale, it it is pretty reasonable. line'swhat do you see as strengths? >> room for them to grow the advertising sales. less than 40% of revenue comes

from advertising. that is a large gap versus facebook and google. adding more advertising products. -- in terms of weaknesses, they were not very tod at acquiring companies help them boost users. that is something they need to be more careful in terms of spending money. angie: their track record not so good. she was so much for that. -- thank you so much for that. himcial investigations into are making it difficult for a

deal on debt repayment. he says there is no legal basis for inquiries. making it even harder for resources. $1.4 billion.owe he is living in the u.k. of china shares has been described as an historical certainty. he also says a global index without asia is incomplete. japanese online recruiter says it will look for an investment bank in the next two months to help prepare for an ipo in five years time. the tokyo-based company hopes to make more than $900 million when it eventually goes public.

biz reach was launched back in 2009. latest onlowing the the mass shooting in orlando. there has been an outpouring of sympathy, anger, and defiance on social media. orlandosolidarity in and across the globe this morning and evening. we do see many vigils being held in the u.s., many lgbt supporters outside the white house singing "we shall overcome." love is love, that is one of the hashtags being spread across social media right now. many raising issues about gun laws and gay rights.

some questioning how the suspect was able to get a hold of firearms legally after he was investigated twice by the fbi. here are some 20 we found -- found.weets we we got a tweet from malcolm turnbull saying all australians stand with the people of the united states today against terror and hate. we also got a tweet from ian bremmer. of theting take on some comments we have been hearing from president obama and donald trump. one user saying -- we also have learned facebook

activated the safety check, the tool for the first time in the u.s. users to notify their friends on facebook whether they are safe or not. this was a tool that was used during the paris attacks and brussels. up, theoming expectations ahead of key rate decisions from the fed and the boj today. our group discussion coming up next. ♪

>> the stories making headlines around the world. whofbi says the gunman killed 50 people in a florida nightclub had spoken about the so-called islamic state in a 911 call before the massacre. omar mateen was killed in a shootout with police.

he was a u.s. citizen born in new york to afghan parents. it is the worst mass shooting in u.s. history. obama said no effort would be spared to find out what happened in question the gun laws in america. imports in saudi -- a new report says the kingdom spent more than $9 billion in 2015, more than twice what it spent the air before. purchases also rose across much of the middle east and southeast asia. a powerful explosion in beirut destroyed several cars, wounded one person, and badly damaged a bank. the bomb was faced on a vehicle but did not say whether anyone

or anything had been deliberately targeted. taiwan's new leader has blocked the predecessor from making a landmark visit to hong kong. it rejected the trouble request because it needs more time to make security arrangements. he had been due to address a ceremony in hong kong. powered by over 2400 journalists in over 150 bureaus, this is bloomberg news. angie: welcome back. joining me are yvonne, juliette, and andrew sullivan. omc, boj.he fmo

>> more and more investors are getting less inspired by the central banks. maybe they should step aside and let markets sort things out. >> how? hopeful -- that we did not need to let companies go bust anymore. good companies should have money allocated to them and they pay for it because they can build things. , there ise to say some trepidation and hope that the central banks are still going to do something. >> we've had the markets run-up over the last few weeks. the economies were doing better

and could withstand an interest rate hike. it puts the market thinking they will go higher after that. that is what investors want to see. ago, it was 30%. what went wrong? >> people believe the fed is very data dependent and one bad number will put them off their stride. the fed could still raise rates this week. we had all that fed speak in the run-up. yes, one or two rate hikes. one jobs number is only one jobs number. the likelihood is that we will see it revised. there were other reasons behind that number. i do not think it is completely off the table.

>> what about the boj? they are due to announce something this week. >> a lot of expectation they will do more on the stimulus front. people are very scared they will do more on the negative interest rate side. this is what will make gold attractive again is the fact that if there is negative interest rates, holding gold and getting nothing is still protecting your money. that is a change we have not seen for a long time. they could bring in more monetary stimulus. they are running out of space to do that. so many investors are having problems -- what can central banks do anymore? it will still be stockpicking. there is still good companies out there doing well. well-run companies are still well-run companies. they are still managing to do better.

they have done their marketing. >> i think it is fascinating that central banks are not able to influence currencies. why is that? back -- it isht the fact that money is a lot there to move. that are a lot more funds can move the money. a lot more leverage than there was before and because people can move money quicker, it is the central banks under a lot more pressure. >> and they are moving it

because they are worried about brexit. day, peopled of the are trying to protect their money. less worried about how much growth as opposed to how little can we lose. that is what is holding people up. there is no final demand for what they are making. >> are you putting for the hills? today.ave seen a selloff historically, it does not go far below $12. always opportunities on the other side of the coin. >> any brexit related -- >> i have not really focused --

followed that, to be honest. >> you do not think there will be impact here in asia? >> there are a lot of the u.k. relatedat are very much , gdp denominated in what they do. seene moment, what we have from the large institutions, they have set themselves up for global market. until the fed moves, nothing is really going to change. >> why do you think the hang seng is so underperforming? seen as a bit of an atm. seng has traded in the range of two to three years now.

you do not have the currency risks. if people want to take money out quickly -- sullivan, always good to see you. australia sets up a billion-dollar fund to protect the great area reef. but is it too late?

angie: welcome back. it will commit one billion aussie dollars to the protection of the great barrier reef. for more, let's get over to paul allen. that is good sentiment and all, but will it be enough? well, that is the $64,000

question. or the billion-dollar question, in this case. the money will be used to fund clean energy projects and to reduce the run off from the agricultural uses. these are the two critical areas hurting reef health. rich waternitrogen running off from farming is not good. 90% of the reef is now bleached. statistics like that, this is all very lovely, but you could argue a tad late. angie: a lot of fans around this. is it new funding?

paul: it is not. the billion dollars comes from the clean energy finance corporation. it is money they already have, but it is being directed to this new purpose. money, it is not new has a pretty good chance of being spent. note howrtant to important the reef is to australia. the prime minister called it unique, gigantic, and an .normous economic driver it generates about $5 billion in tourism revenue. definitely worth protecting from an economic and environmental point of view. angie: thank you for that. we have bloomberg markets middle east coming up at the top of the

hour. manus cranny is standing by. context ofithin the what does it really mean for the uae? saudi arabia ramping up their spending on arms. we will also talk to gary dugan, the cio from emirates. what can we expect for the regional markets with world markets in a shutdown? who would have thought that danish mortgage market would be a negative territory? we shall see you shortly. brexit not only on the minds of us here in asia, but also in the middle east. let's take a quick look at the region. you can see right there, the hang seng coming back from the

holiday, the dragon boat holiday. japan and south

help push in bind to sales. shopping lists of jumped 50% less two. >> new data shows the economy in china study last one -- month with consumers continuing to spend. >> canada national bank raised almost $3 billion in the single largest note