also coming up, exxon mobil joins the race for inner oil offering $45 a share. let's check on the markets with david. david: over the last five or 10 minutes or so, it a spike here in dollar-yuan. the weakest level for the chinese currency going back to the first of november of 2010. one on they single way down. not exactly moving in a vacuum. equity markets look like this, not the most exciting of days. there is a preference, or a

shift in preference toward developed markets. australia is up for the eighth straight week. closed. nothing life-changing, though. a preference toward developed markets. look at taiwan, for example, this is a very good symptom, if you will, looking for a place to be part. the latest member of the bull market club in asia. number eight across the asia-pacific. something to keep in mind.

i was talking about the rmb, take a look at the shanghai composite. we are seeing a lot of pressure on this market. pressure on asome lot of these developers, materials, cement. have a look at some of the main benchmarks. -- we are seeing some pressure. up with thethings kiwi dollar. dropped early this morning following inflation data. at these levels for the most part of the morning. yvonne: thank you so much. softbank said to be nearing a $32 billion deal to fire british so my conductor -- to fire

company.emi conductor >> this is going to be a blockbuster deal. acquirebillion deal to arm holdings, listed in london. it supplies apple, a big-name for softbank to be acquiring. they will offer 17 british pounds for each arm holdings share. cambridge, itn has really come to dominate the design of smartphone chips. lab in ad in a small converted barn and has its designs in 95% of smart phones. it generates royalties when

people use its architecture. a potential blockbuster deal for softbank. yvonne: given how much the pound has fallen, it could be a good deal for softbank. it has been quite a volatile couple of months for softbank. will the still help them boost their image? juliette: this is japan's most inquisitive company. a little bit of dubious circumstances under which he left. share prices have been doing incredibly well over the last couple of months, one of the most inquisitive companies in japan. boughtkes in sprint -- stakes in sprint and alibaba. --is going to be quite a bit

quite a test for the new prime minister. we are hearing 32.4 billion cash deal. much.: thank you so let's head back to turkey to watch the developing headlines. the government of the turkish prime minister say 6000 people have been arrested over the attempted takeover and almost 300 people were killed and 1400 wounded in the failed coup. tell us the latest. >> the government crackdown continues after friday's failed coup attempt. 6000 people have been arrested, mostly army officials and judges . the government warns that this number might likely rise. the prime minister will remove all viruses from state

institutions. the president is pressing the u.s.. for a third straight night in a row, thousands of people took to the streets of turkey supporting the president and supporting democracy. yvonne: in terms of the market reaction, it seems like it is quite limited. went turkish assets open, we could see them lower. it is worth mentioning overall, turkey has been a darling for emerging markets. five-yearon turkeys

government bond has fallen the most in emerging markets. before these events unfolded on billion ineigners $7 two turkish assets and that is assets. -- into turkish we will be watching the market very closely in a few hours. attempt, it coup comes at an already difficult time for turkey's economy. will they be able to recover? , tourism has been shrinking a lot. we have had terror attacks on a monthly basis. terror ondealing with two fronts, one with the islamic state and one with the kurdish militant group, the pkk, so

tourists have been staying away. tourism is down 40%. this latest coup attempt will not bring confidence back to tourists. overall, the economy, before this latest coup attempt, was expected to grow around 4%. we have seen a slow down in inflation and we are also seeing unemployment levels falling. lasthit an 11th month low week. we will be watching on tuesday what the turkish central bank does. before this attempt, it was expected to cut the upper band by 50 basis points. since this attempt, this could be a game changer. we will be watching carefully to see what it does on tuesday. tonne: limited liquidity calm markets. thank you so much, live from

istanbul. you can get more on this and the rest of the day's news on bloomberg.com. you can watch some of the interviews you may have missed. exxon mobil has outbid australia's for a company that controls large natural gas reserves and pop in again he. -- papua new guinea. exxon includes a higher contingent. shares of singapore stock exchange in a trading halt after exchange sayse the halt will be lifted after it makes an announcement to clarify the report. all shares were forced to stop trading last thursday due to a technical malfunction.

an economic stimulus package planned for the odd them will not be funded -- planned for the autumn. fortruction bonds longer-term investment. the plan is expected to cost $95 billion. >> we are preparing to accelerate abenomics to the next stage. ways to fund the stimulus measures, but i want to clarify that issuing deficit covering government bonds is not an option. bracing for default, we will look at the singaporean companies showing signs of strain. inering off the surge china's home prices are cooling. ♪

yvonne: new home prices in china rose month over month. let's bring in stephen engle. what are you seeing right now? : looks like that and of demand fed by the stimulus last year is starting to run its course and it was a great relief to chinese policymakers because it was the main pillar of growth as exports and traditional industries have remained weak. we also had a surge in new loans in june. oft we are seeing is kind losing steam a little bit. not only in tier one cities, but also secondary cities.

this is year-over-year, still more cities out of the 70 are seeing price gains year-over-year. this tends to have a lack effect -- lag effect. we like to see month over month because that is where we see the trend petering out. the number one city, 55 compared to 60. yvonne: we are seeing a possible peak in april. what about individual cities? >> you are still seeing that. month over month, beijing up 2.1%. shanghai up 2%. --wn john is the interesting chin jin is the interesting one.

46 in june. month over month, also very interesting because it really slowed and may. -- in may. the government imposed those restrictions. look what happened in june, more demand.mand -- pent up yvonne: qs so much. we have been asking our guests for their reaction to this property prices. there will be further cooling off. see, especially from the strong base last year. in 22017, the growth will be growth into 2017, the

will even be more obvious. expects to seesh a change of policy from china's central bank. things would not view until the end of second quarter or third quarter. we will start to see things move in the second quarter. we will also start to season change in pboc action. we think they will take another triple are cut in the second half of the year. soft gins head of global asset allocation -- softbank's head of global asset allocation -- >> should switch to the following thing -- following chapter, the supply-side.

i would be very careful about the banking sector t. yvonne: that was a word on china. after surviving two years up low prices, oil producers gearing up for a third. the outlook improves. this is bloomberg. ♪

yvonne: check of the latest headlines. yahoo! may be looking at more job cuts. analysts say the new owners slashup to 3000 jobs -- up to 3000 jobs. yahoo! reports second-quarter earnings later on monday. devaluing the aussie dollar could be the rba's best option.

he believes rate cuts will have limited effects as australia's benchmark rate heads toward 1%. aussie is largely irrelevant in a global context. positive for the outlook of the world economy. hedge funds and speculators cut their bets on the gold rally for the first time in six weeks from a record high position last week. concerns over the brexit vote has -- have eased. markets are more attractive right now for our next guest. joining us is sean taylor. great to have you. , butng about gold

retracement -- a retracement in precious metals recently. do you think we could regain some ground question mark >> it is a risk on rally. currencies have been devalued a lot. data stabilizing, commodities stabilizing. to say weey continue have a u.s. election and that is just getting started, low interest rates, and we also have the boe who did nothing last week. we do not see a looming recession. >> the u.k. delayed it by a month. in august, we will probably get 25 basis points and's potentially more volume in the credit markets. i think people are happy that central banks are still very

supportive. if people start losing credibility in central banks, gold will be -- yvonne: the gold-mining stocks have been on a tear. you can see a massive performance. despite theing that gold price, it is a promising signal that gold has bottomed out since 2011. investorerent type of buying gold-mining stocks. weaker currencies mean that dollar earnings are going to be better. they have underperformed for a long time. yvonne: do think turkey and the

drama going on there, could that derail that rally? >> i do not think so unless the political situation gets worse. in the medium-term, not so attractive. in terms of the markets, or if rates -- if rate stay low, i do not think it will derail anything. turkish currency fell over -- fellow 15% friday night, and it is back. look morey makes asia attractive because asia is not caught up in these situations. yield.t the shift in seene: it is interesting we -- we got some better economic figures coming from the u.s. do you see it that way?

we are not seeing a very unified said these days -- unified fed these days. >> it is very difficult to read what the fed is saying. domestically is doing ok and that will always put the pressure on rates to normalize at some point. until inflation comes in, we do not worry. the way that markets are reacting right now, if rates start to go up, we will have some very serious volatility in the market. guess, brace for that volatility. japan trying to do a dual easing with monetary fiscal policy. eventually, all nations will

have to deploy a strategy like this. how likely is that? of, theevelopment developed nations are doing that. japan,stion mark for they can raise a lot of money fiscally, but where can they spend it? on the other hand, emerging markets, they have the ability to cut rates so they can generate their own growth. yvonne: focus on the domestic economies. >> i think so. yvonne: stick with us. thank you so much. chinese fund managers are loading up on short-term bank paper to avoid the growing risk of corporate default. sold certificates of deposit in the first half, triple the amount from a year ago. it is being field by corporate

bond default, which have tripled this year. the stock jumped as much as 4.9% to its highest intraday level since may second. life of pets topped the charts for the second weekend in a row, $51 million in the u.s. and canada. more than then reboot of "ghostbusters." pets, 203 million in just two weeks time. sydney, where we did see

those china property prices cooling a little bit. asx looking like this right now. plenty more to come here on bloomberg television, stay with us. ♪ get ready for the rio olympic games

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yvonne: we are talking about thebank, a deal to buy british semi conductor company arm holding. an agreement could be announced as soon as monday. australial has out for a company that -- the world's largest oil company is offering $45 a share for interoi l. the offer includes a higher so-called contingent value

right. china's rising home prices tapered off last month. new home prices rose and 55 cities in june -- rose in 55 cities in june. a mixed picture out here in the region. news, not very exciting unfortunately. a lot of people do deserve a break after the last few weeks. it is monday, very little to trade on. friday's flat close in the u.s. markets, generally speaking, taking this one in stride. i want to point out, we talked about the markets, japan is, of

course closed. currency markets, that is where we are seeing a little bit of action. dollar, weakest level for the chinese currency going back to 2010. the dollar is really gaining, not just against the yuan, but against every single emerging-market asian currency. a big drop in the kiwi. came after inflation data out, .4% was the reading. you are getting a lot of these expectations. , have gone up to 72% after the data came out. -- oil prices are

back to levels right before the news of the coup attempt in turkey. brent.s the level for yvonne: exxon mobil has made a superior opera for its takeover target, enter oil -- a superior offer for its takeover target, interoil. tell us about this deal. how much more superior? bid is split into two parts. share.s offering $45 a contingentis the value right, based on how much antelopeund in the elk

field. exxon offered 17% more. bidoth fronts, exxon up the 10-15% or so. interoil changed the recommendation to its shareholders. yvonne: we are seeing papua new guinea finding itself in the middle of this bidding war. >> it is really about two things. low cost and synergies. the global lng market is oversupplied right now, prices have tumbled more than 60%. what you need to be able to do is to have low-cost. and pop what new guinea, they guinea, they new have low labor costs. owns andon already

export terminal. it gets more gas to feet into his existing plant and can use synergies to use -- to build its new facility. yvonne: what happens next? where is the ball and which court is it on? it says it is going to talk to total and figure out what their options are and decide. they have a $60 million clause if the deal does not work out. oil search is in a pretty good position either way because they are a partner with exxon mobil and they will still be a partner in the new lng project. if they decide to bid or not bid, they will see these

projects go forward. yvonne: could be a win-win. live from singapore. let's stick to singapore, we may see more companies default as they struggle to meet the terms of their debt. let's get to our southeast asia correspondent. how big of a problem is it? it anda: let's call growing problem. defaulted,es have the first two in seven years. 10 more are at risk. there are struggling to meet the terms of their debt. they're looking to extend maturities. wants to extent maturity by as much as two years. that gives you an idea of how deep the problem really is.

,ll of the related companies they hold about a billion dollars worth of singapore bonds. almost a fifth due by year end. oil services company's will feel the pain. yvonne: we continue to see it is the wealthy singapore bondholders that are being burnt in this fallout. >> most of these bonds are being singaporeans.y back in 2014, singapore private largesthey make up the investor group. wealthy individuals holding singapore dollar bonds issued by small and under researched companies and this is where the risk is. s&p said these bonds suffer from a lack of coverage.

because the secondary market is so it liquid, it is difficult -- illiquid,, it is hard for investors to get out of it. yvonne: more pain to come. condemnedobama has the shooting deaths of three officers in baton rouge and the wounding of three others as the act of a cow word. a suspect has been killed -- the act of a coward. i suspect has been killed. >> we as a nation have to be loud and clear that nothing justifies violence against law enforcement. attacks on police are in attack on all of us. it is the rule of law that makes

society possible. yvonne: french police have made further arrests in the best deal day attacks -- the steel -- attacks.lled the so-called islamic state claimed responsibility. last week, beijing rejected international court ruling. the ruling followed a complaint launched by the philippines. the new british prime minister spoke with her australian counterpart over the weekend to discuss a bilateral free trade

deal. let's get over to paul allen. aheadicant legal hurdles of all of this. is it too early in the game to be talking about trade deals? i guess it is not too early to start talking about them. deal but the-china better part of a decade to put together. as it stands, it is not legal for britain to sign any trade agreement. only the foundation mark can be done now. -- foundation work can be done now. the australian prime minister called very constructive. the government intends to make a success of brexit and striking share deals with partners across the globe. yvonne: 12 other trade deals possible. when it comes to australia and

britain, this is not the first time they have been talking about trade deals. days, beforee old the common markets, printed everything -- britain took everything that australia and new zealand could please. -- could produce. apple exports dropped by more than two thirds. abandonment and betrayal were getting kicked around a lot. yvonne: what can they do to get things rolling? next possibility for a meeting is going to be in a couple of months in china. mayolm turnbull and theresa will be there. it will be several years before

britain is out of the eu, but he wants to get working on new arrangements quickly. yvonne: the u.k. decision to leave the eu is putting asian markets in a favored position. we will talk about their picks, next. this is bloomberg. ♪

kiwi dollar is falling after weekend than expected inflation -- after weaker than expected inflation decrease the odds of a rate cut last month. see grahamist now -- citigroup is betting there will be low interest rates for longer than previously

expected and has reduced its forecast for net interest margins. the margin will be about 2.9% in the second half, five basis points below the previous forecast. is 70% drop in its net income last quarter. -- the company says it is committed to the one billion goal but it will take longer to achieve, that is because of a drastic reduction in the windows phone business. back.e we were talking about how asia, a better position after the brexit vote. where in particular? we are seeing bull markets everywhere, taiwan the latest.

we have seen improvement in the cyclical side of asia. taiwan is getting a little bit expensive. the rally is probably coming to an end. korea has seen very interesting stock performances. rates medium-term, india, coming down. hear from afully we governor soon. amnesty today is quite positive. havew much concern do you with the backdrop in the geopolitical situation? we mentioned brexit. now we have terror attacks. a coup attempt in turkey. just one thing after another. >> the markets find it difficult

to price in the risk. factor is that yields are pretty nonexistent. people want yield. that is probably what will help turkey. >> where are you looking for yield? indonesia isen -- looking pretty good. corporate in china are still looking good. australia is looking interesting. we have had a good run in credit. equities look fine at the moment in asia. the china data is not great. but it is not disastrous.

a lot of people think it will view is thatt our it models along -- muddles along. >> compared to some of the other ones, china went from being very volatile to now being relatively stable, if you compare it to everywhere else. >> the market's reaction to china is the most important thing. accept a slightly lower rmb. the reaction from global markets -- in the beginning of the share, a huge reaction to china. it was really an overreaction. counteracted themselves by defending the currency.

>> last august, yes, there should have been a reaction to that. nothing for quite a long time. currency stabilized. >> communication has improved. there is a political cycle going on in china and some key events. the president has more control over the economy. >> do you see the rmb getting even weaker? >> we are 6.9 for the end of the year. one-offt see a devaluation. the only way you would see that is if you've had an un-orderly fall for the yen.

>> are we ever going to see japanese equity markets catch up? >> we have had a fairly good run over the last couple of weeks. market, all equity excited about the changes. the market is not pricing it in, it is to driven by the macro --too driven by the macro. we have had a run back from 100 to 106. it is binary, to the august -- to be honest. where does the extra money go to generate growth? that is the problem. we just had our quarterly update

on all of the markets and we remained overweight on japanese equities. sentenceuld use that for everything. the problem with japanese phil ll inhe blank -- -- fi the blank. >> when we had zero interest rate policy, that changed and people got worried. that was the clear catalyst. locally, they do not believe it. what gives then? will be helicopter money? >> i think they will be in a bad situation for quite a long time.

raise a lot more than they are saying, where can ago? china can create growth by investing that money. but japan cannot because it is already there. that is the problem. sure that we put the right stocks as fund managers. in the next few months, it will be driven by government policy. after that, it will be much more difficult. x is there any particular sector that you like? ok inerials are looking us trillion. australia -- are looking ok in australia. australia is on the upside.

financials are under pressure, generally. you have a yield angle now. we are putting more money into cyclicals, which could be a 3-6 trade. the market is reacting quite well to that. you are already paying way up for that. >> thank you so much, sean taylor joining us. how to crush a coup in the general age.

age. the digital that is coming up. ♪

yvonne: let's return to the situation in turkey. it may seem surprising the government turned to the media to get its message out during and after the failed coup attempt. we saw the president took to face time. >> it is all about control. facetimed a reporter. rallying supporters, telling them to go out to the streets and show themselves. past, this is the scene -- in the past, the ruling party had issued a lot of blocked

websites without court orders. giving them control over what messages goes out. state media and social media as well. he used it as a method of trying to show he has some control, regaining control, as well as showing, reminding people he is still president and they should listen to what he says. the state department using social media to ask people to use other means to get messages to their loved ones. the old-fashioned telephone. account for the turkish president. ,e was tweeting in english

calling on people to go to the city square and send the president and government are on duty. encouraging people to show their support for the government. tweeting on his own personal account and turkish. -- and a turkish. -- in turkish. yvonne: bloomberg markets middle east coming up at the top of the hour. >> we have another packed show coming your way, including ongoing coverage with the unfolding developments in turkey . we will hear from correspondence, looking at implications on turkish assets. we will talk through that with the chief economist. shippingear from saudi . plenty to look forward to.

yvonne: thank you so much. that is coming up next. that is it for us here on "asia

♪ yousef: 6000 arrested, almost 300 killed. turkey's president promises a new era after a failed coup. brace for a volatile session on the istanbul market. plans for ai's massive east coast shipping complex