>> steely determination with earnings jumping 50%. and a $150 million aussie buyback. bid twond the unilever days after it was revealed. >> fresh talks on north korea after banning imports from kim jong un bund's regime? betty: and we will break january

cost data for you later. heidi: we are just one hour away from asia first major market. betty: happy sunday to you. may need this one day holiday here in the u.s. we have a lot of data and news events to cover. we have housing numbers and the fomc minutes and trump is going to be announcing several things, including who his new nsa director is going to be. fashion -- fast your seatbelts, it's going to be a wild week. >> policy announcements to come and we will be watching that. week in termseter of what's on the calendars but we are going ahead to the trade numbers in the next hour or so and they are expected to show a

new movement. new zealand trading, just a flash at the moment. picture if you look at futures for broader asia. dollar seeing gains after two days of declined. shaping up to be flat at the moment. gold inclining .2%. with holding steady international petroleum week in london and iron ore gaining after pairings those gains over the past week or so. >> china has called for renewed international talks. the beijing foreign minister made the call after meeting south korean officials in munich, warning pushing pyongyang into a corner would not work. suspended allhina

coal exports from the north in compliance with you and resolutions. coal is north korea's the us export. the south korean president has asked the south korean court to delay hearings by a week and asked to give them more time to prepare for closing arguments. it said it would review the requests. it has widened to include the biggest industrial conglomerate. he was arrested friday on allegations including bribery, embezzlement and perjury. including a program $14 million loan package is part to helpger bailout deal mongolia with its upcoming debt repayment. economic growth slowed to 1% in

2016 as commodity prices fell. world's worsthe performing currencies. bank hask the mongol stated clearly that exchange rates are important to him and he does not want to defend any particular exchange rate because and economy, especially a mining to have aeds buffering mechanism and the exchange rate can play that growth. >> the german chancellor will hold christine lagarde and hoping the bank will contribute to the greek bailout. it could determine further involvement in the program. the former greek finance minister says it will only delay the country's problems. infinite decided in it

wisdom to pretended didn't happen. how do you pretended doesn't happen? by extending the liquidity rate. you keep kicking the can down the road or the snowball up the hill. at some point, the snowball comes back in an avalanche. >> the u.s. military says and aircraft carrier strike group has begun what it calls routine operations in the south china seas. how longdid not say the carrier and its accompanying ship would stay there. rex tillerson said during his compromise --, -- during his confirmation hearing should be blocked from waters in the disputed waterway. global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. this is bloomberg. with me now for a look at what is going around the country with biker earnings.

grexit's about 275 million u.s. and a big, big improvement on the same time last year. almosterlying profit tripled to 360 million. the second half underlying on the prior year and a shared buyback of 150 million euros in an interim dividend of four cents. we will hear more about them later on. we have gold miners continuing to come through as well. it was a pretty good time to be a gold miner in australia. paul: and it continues to be. look back at the getty time of gold at $1900 u.s., the aussie dollar 10 u.s. and gold at multi-dollars -- it is still 1600 australian dollars an ounce

come a good time to be a gold miner in australia. the first half, 61% to 104.6 million -- revenue re-assumingthat 2017 reduction and announcing a dividend of three cents. there seems to be hoped that the strike at the coppermine may be resolved. what is happening here? paul: there was more glimmer last week -- they could not even agree on a schedule for meeting but now the union has accepted an invitation to mediation and that's going to take lace at .:00 on monday afternoon they have agreed on a schedule but bhp escondido and the union are a long way apart on pretty much every thing else, including the size or if there is a wage increase, the link of the

contract and how big the bonus is going to be. we see the copper price edging up higher, now to its highest since may 2015. bhp will be announcing results on tuesday. betty: paul allen in sydney. we will be speaking to the bluescope ceo live on bloomberg later this morning, ceo paul if you areining us watching in new york, at 11:15 p.m.. if you are late night or. share said to grab the spotlight in atrading begins stunning reversal -- a $143 billion bid for unilever. it request for friendly talks, they say was rebuffed. su keenan joins us more on what could have been the second largest takeover the food and beverage industry. : a surprise after the offer

was made. they said they were not desiring an acquisition. in an email statement, they said it was their intention to proceed on a friendly basis and they were rebuffed and step away. according to people close to the after, they came berkshire hathaway and decided this rebuffing of talks made a friendly transaction possible and it would not be in the company's best interest. they wereent said deciding amicably to step away. craft and the 30 day chart in the big spike there. chartw the unilever spiking to a record and that probably will come down we see

trading begin on tuesday. observers find the quick withdraw a surprise, especially with the comments came out and they said this reflects a big desire in the food industry to consolidate. we have seen a lot in the last several years. let's see what else is going to move the market. the direction of oil is in focus. : knowing directly into the bloomberg to look at the narrow trading range -- the direction question will be big going forward. are heading into a narrow trading range for west texas intermediate. since january 2004, you can see the spike after the lehman bankruptcy but narrow since then. we learned oil platforms and rigs in the u.s. surged. the data shows highest levels since 2015 and drilling prices

are up. when you look at the survey, where do they think oil is going? most think it will continue to stay close to where it is. the heirs outnumber the bulls, so we may see a tight trading range. what are we watching out for? >> a lot more earnings coming out as home depot is out tuesday, out before the bell. surges gaps up for grabs -- or gaps down -- we could see a big move with our glaze reporting on the 23rd. hewlett-packard enterprises reporting as well. back to you. beijingtill ahead, increasing the question on the north korean regime, but what does it really mean for kim jong un? betty: it is a global selloff

about to begin again? this is bloomberg. ♪

betty: i'm betty liu in new york. heidi: and i'm haidi lun in sydney. you are watching daybreak australia. let's get check of the business flash headlines. the drew doughty national oil companies have been awarded a stake in return for a $1.8 billion planning bonus. koreanin japanese and companies. betty: civic resources rebounded with income coming in at 46 million u.s. dollars. thecommodities firm warned

outlook for 2017 contained an element of uncertainty and a lackluster commodities market continues to weigh on the unit. spacex has launched its month,rocket in as many delivering 500,000 pounds of supplies to the international space station. was a successoff and the falcon nine rocket landed without any problems after launching the dragon spacecraft out of the atmosphere. a 224 rocketsunch this year. speaking of skyrocketing, we want to talk about australian bonds. he sees a bond selloff resuming as the economy begins a process of reflation. it's one of asia pass largest with 178 ilion dollars under management.

talkingo start off about aussie bonds. look at this premium for the 10 years. bond0 year government compared to others for norway, canada and treasuries. in terms one-way bet of the yield continuing? quite clear when you look at bond spreads. it is quite tight. we see a yield premium of 1% or more than 1%. those international investors are not getting the premium perhaps that they are used to and i think that is partly driven by the qe policies we have seen in recent years which have compressed bond spreads. that could perhaps start to underperform, particularly if we see a global selloff. you have this bid to

cover ratio and how much of an impact are these japanese investors, the inflows going to have on the over our markets? boringthey have a big task and they certainly need that support. recentlyar plus bond was very well supported, so that gives you an idea of the attractiveness. when you look at the returns for a japanese investor or you're a investor, that's quite attractive. investor, that's quite attractive. it can help international investors support the bond. betty: where is you are view on where the rva is going to be there? it seems like there are assurances they don't need to cut rates. i think they are on hold

through 2017. rva goes a long time, but we heard it three times with the speech, the meeting and state and monetary policy. they are quite positive on the outlooks and made some positive remarks about how they see the economy traveling. when inflation sits below the target. comfortableseem with it. are you comfortably are going to be able to stay on that? guest: i think so. we see us trillion inflation problem we need to another two quarters afford approaches the bottom of the ban. theynk because of that, won't be in any hurry. i'm curious about deregulation being one of the

major risks. do you see that as the greatest unknown? guest: banking regulation has had an impact on how they structure their books. we noticed and local fixed income markets that liquidity conditions have changed. that's having an impact in terms of what we are able to do with our portfolios. ♪

daybreak betty: australia. i'm haidi lun in sydney. betty:i'm betty liu in new york. party candidate in france says he's holding talks with the far left contender about a potential single candidacy. ofes alexander is the head

management. i want to look at what has been going on in european bonds. you can see the spread in italian and french sovereign yields. how far apart they are from german bund's. what is interesting is how france, despite a lot of the news we've had about the populist movement, the spread is not as wide as you have seen in italy and spain. are they going to start catching up given this development? they have been widening of recent times. concernthere's a lot of over french politics and what happens with the election. remember that you still have an ecb with a large bond buying program that continues to suck up the sovereign bonds across

europe. does anything look attractive in europe for you? guest: for us, we like the and preferring bonds over spain, italy, france because with the fair value models, we continue to see those relative to many other bond markets in the world. heidi: i want to talk about japan. them reassert their control over the bond market. how sustainable is it question mark we've been talking about it since this policy started. they certainly need to control the yield curve as we see the bond yield fell off. they came out with the open ended purchases program to bring it back down to 10, as

global yields rise further and further, the market will focus on whether the bank of japan whitens that are moves the target of zero up further. clearly, they can continue to issue bonds. it seems crazy to many of us that they can issue bonds. we were talking about this interesting divergence between how president trump views the economy and it seems like they are looking at two entirely different sets of data. how does this play out in a comes to fiscal policy and what the fed has to keep up with it and how they can shake the makeup of the central bank? he has a big tax plan that he wants to get through and .e's got some ideas a lot of what i think about

president trump if he doesn't like things other people do. and beginss in there to implement policy, think you'll hear his tone change because now his policy is driving -- heidi: contrary and for the sake of being on it -- being contrary and. guest: he was not going to win votes and saying how great everything was. he's says he's the man to fix it. there is one trump where it is tax policies and deregulation is beneficial for the markets and the economy and there's the other trump illustrated by the press conference last week. who do you think will be weighed more with investors mind, who is going to way more? you get a flavor of that when you look at the volatility measures. once president trump came into office, his propensity to tweet

policy at any time would create a lot of volatility in markets but that has not been the case. volatility measures are extremely low and i think that tells you the market looks through a lot of the noise around donald and is focused on what he actually does. and we don't know yet. they are still just plans and he has to work with congress to get this stuff and acted. betty: investors do think what he has planned is going to be reflationary. fed,harking back to the are they going to fall behind in their inflation target or monetary policy or d you think they are right on track? guest: i think there's a potential collision coming between trump and his policies and where the fed thinks the u.s. economy is. when you listen to the two of

them talk, the fed describes a strong and healthy u.s. economy and then we have donald trump talking about the u.s. economy being a mess. comeese policies eventually and they are inflationary at a time when the fed think they need to slow the quitey, it will become interesting to see that interplay between the fed and trump. heidi: sector wise, what are you looking at? we are not big: fans of the commonwealth treasury bond. when you compare that to a lack of supply in the corporate sector, we would be largely underweight states and corporate. heidi: thank you very much. that was james alexander. up next, plenty to come. china sends a message to president trump with its band on

north korean holds. this is bloomberg. ♪ with x1 you get the best of the oscars. you're a funny guy. funny how? how am i funny? scorsese finally wins. could you double check the envelope? show me best picture. what's the difference? show me best actor. i do not take tonight for granted. thank you so very much. get all the greatest scripted and unscripted oscar moments on xfinity x1. the oscars, live sunday, february 26th 7eâ4p on abc.

sydneyit is 9:30 a.m. in where markets open in 30 minutes time. pretty flat at the moment. pretty mixed picture across asia as we head into the open. japanese trade numbers are what we are focusing on. betty: indeed, we are focused on it. i am in new york where it is 5:30 p.m. you're watching "daybreak australia." lets the to first word news with paul allen. joinedohn mccain has angela merkel in criticizing president trump's description of the media as "the enemy of the

american people." mccain told "meet the press" that depressing free speech is how dictators get started. trump intensified his attacks in a series of tweets added -- and at a rally in florida. we are notrump: going to let the fake news tell us what to do, how to live or what to believe. we are free and independent people, and we will make our own choices. paul: president trump's revised executive order on immigration e streamlined, according to the security secretary john kelly. trump's previous attempt to heighten immigration screening caused chaos and protests in u.s. airports in january and was blocked by federal court. kelly says it is a good assumption the new order will not affect people holding valid visas or green cards. >> we are contemplating, the president is contemplating moresing a tighter,

streamlined version of the first e.o. and we will have, i will have opportunity to work a roll out plan. in particular to make sure that there is no one in a sense caught in the system of moving from overseas to our airports, which happened on the first release. paul: malaysian officials say they are speaking for north korea's who fled the country the day kim jong un's half brother was murdered. four other people have been detained over the poisoning of kim jon nam who was killed before boarding a flight from kuala lumpur to macau. the unification ministry said on sunday the man killed was kim jon nam. iraq has lost an opportunity -- eration.at the prime minister announced the state on state led television. iraq led forces took control of

easternmost but the west remains under i.s control. . has voiced concern with hundreds of thousands of civilians trapped in iraq's second largest city. this is bloomberg. let's get a quick look at how we are shaping up in terms of the very early asia, especially in new zealand were trading is underway. pretty flat at the moment still. not much of a move when it comes to the kiwi dollar. futures in a stronger setting up higher amidst a bigger background. afterssia dollar gaining two days of declines. a little bit of yen movements today and pretty flat when it comes to that yield as well. we do have a public holiday in u.s. markets with the s&p 500

finishing last week at yet another record high. let's get more and what we are watching as trading gets underway in asia. adam taking a look at the markets. we do have the trade numbers that is expected to show a bit of an improvement when it comes to the trade balance. we do know that is going to play out when it comes to the japanese equities. adam: absolutely. forink, basically, in store a week, the equity some of the strength that we saw in the end on friday and in the last few 15ys, we came from the 1.1 level against the dollar. people keep an eye on that. that will weigh on japanese stocks a little bit. we also have a development in europe and the currency traders will focus on a new poll showing angela merkel's party has lost the lead to the social democrats for the first time in 10 years. i would be interested to see how the euro reacts to that. and earnings -- hsbc and barclays. betty: i know you have been

looking at the measure on the dollar. what is this showing us about how the greenback is trading and where it is headed, the measure you are watching? you need tobetty, dive into the bloomberg to have a look at the chart we are showing, in a scioscia the elliott wave pound on the dollar yen which attempt to use past ecedent to giver an idea future trading. it is the tale of two, the short term in the sense saying that the dollar can rally. but in the long-term, looking at a lower dollar. we have those fed minutes on wednesday. they will play into this calculation for the dollar bowls. the latest data we got from friday shows that the dollar bears are certainly in retreat and that remains the case, so dollar bulls in charge of this point. betty: they do seem that way, indeed. thank you so much. you can follow more on this

story and all the date's trading on our markets live log on bloomberg at m.l.i.v. go. go. and there is commentary so you can find out what is affecting your investment right now. has called for a new international talks on north korea a day after banning coal imports from its neighbor for pyongyang's-- for nuclear rogue. >> coal made a buzzing of the can amount of north korea's export to china last year, more than 50% - -call made up a significant amount of north korea's export to china. to the end of this year is a substantial cut in income for north korea and china has orderuying coal under an that allowed trade for what they called livelihood purposes. what they get from north korea

barely make some 10% of china's total coal imports. these china is looking at re-imposing coal production caps. maybe not getting coal for north korea is not going to be a big loss. china has been concern about north korea's nuclear tests and has been under pressure from the international community and in n toary listed a new ba comply with a new round of sanctions. it was to be seen as cooperative. " administration wants china to do more to reign in kim jong un 's regime -- and trump's administration wants china to do market heidi: what is the bigger play here for china? >> china wants to get all sides around the table for talks and it really contrasts with the u.s. which is taking on a more hawkish tone. china's foreign minister said it is time to "break the negative cycle on the nuclear issue." he says the best opportunity for china isthe region,

willing to mediate. china is also keen to -- got a wary eye on the defense system which the u.s. is putting in south korea. that is also a bit of a threat to beijing's military ambitions as well. china also does not want to draw blame for not doing enough, which it is under pressure at the moment. and of course, since the murder of kim jong un's half brother which as to the tensions and uncertainties surrounding all these north korean issues. so, china really trying to get everyone talking again and sages other methods like have noticed so far in curtailing north korea's ambitions -- like sanctions have not worked so far in curtailing north korea's ambitions. heidi: kraft heinz has withdrawn its bid for unilever saying that the takeover target was reluctant to engage in talks. let's get more details on this as bloomberg news deals editor joins us now on the phone from new york. great to have you.

this titanic sized takeover appears to be no more. why did we get this offer that was withdrawn? >> hi, heidi. yeah, it was a very abrupt would havehat been the second biggest takeover in the food and beverage industry ever. what our sources are telling us is that this deal was going to struggle from the start. when the proposal was made public just this past friday in new york, just two days ago, unilever came out very strongly rebuffing the basel saying there was no basis at all to continue saying that-- they severely undervalued the company. what we have heard happened since then is that the backers of kraft heinz, and that includes warren buffett, as well as brazilian investment firms, were fairly uncomfortable moving forward with a company whose management did not want to proceed with with from the

talks. if you think about warren buffett, part of the way he does dealmaking is on a friendly basis, and he was quite uncomfortable we have been told trying to proceed with this deal if it was not going to be on a friendly basis. betty: it kind of feels like the cart was put before the horse spirit why even come out publicly with this if they were not even sure this was going to go through? devin: to the credit of the financial times, the story did leak on friday. and sort of forced these two big large public companies to come out and tell their shareholders that there was an offer made. and so will be heard today on the record from craft was that that disclosure on friday was a little premature for them, even. they wantedt that to have more time to talk privately with the board and with management of unilever before the deal came out, but it did come out a little prematurely on friday. there arein, i mean, lots of companies who want warren buffett on their side, but what was the concern by unilever, shareholders about a combination?

devin: we have heard several concerns. one of them, for example, is sort of the culture that we have seen at kraft heinz percent not only buffett but -- since not only buffett but 3g k min which is a severe model of cost cutting. 3g likes to employ this company called -- something called zero -based budgeting, which is a system in which every single cent of expense must be justified for each budget. essentially a very aggressive model of cost-cutting. there was also a concern we heard by unilever management that kraft heinz did not really have experience in the personal and household product segments. food heinz being a more and beverage oriented company. so there was a question by unilever management of what could kraft heinz bring to the table with a company that makes things like soap and other bathroom products. betty: thank you so much.

we surely saw both those stocks jump on that news. we will see how the reaction is with the rejection of this bid. our bloomberg reporter. and one feature on the bloomberg we would like to bring to your attention is our interactive tv function. you can find it at tv go. you will not only be able to see previous but segments like what you saw a now. dive into any of the securities are bloomberg luncheons we talk about. and you can become part of the conversation by sending us instant messages during our show. this is for bloomberg subscribers only. go.ck it out at tv heidi: up next, steely resolve. earnings and is also planning a share buyback. we will look at the numbers just ahead. this is bloomberg. ♪

heidi: this is "bloomberg markets asi-- "daybreak austraa ." betty: japan day trade is kicking off a busy week of activity in asia. and policyonomics editor kathleen hays a joins us with more. let's start with the january numbers out of japan. leen: it is the big number. that is their engine of growth, that will drive the japanese economy. helpker yen is supposed to them. the trade surplus is seen rising in january driven by auto parts sales, semiconductors, steel. a pullback from oil prices. let's jump to the bloomberg and take a look at #btv 6072. you can see that you are looking at the trade balance, that is the group of bars. and you can see how it fell into deficit during 2011 when japan had that horrible tsunami .

then you can see the exports, the white line. you can see the imports, the yellow line. exports rising more than imports. japan's trade surplus rising to 543 billion yen, easily adjusted to 357 billion in december. the bloomberg consensus survey is looking for a smaller number, 275 billion. and just remember, because japan is so dependent on exports -- anything from donald trump, protectionism is being closely watched. reverse rank of -- reserve bank of australia is in focus. a will release the minutes. the governor will speak at week's end. china, the january property prices out on wednesday. and then thursday, think of korea, south korea, that is, keeping policy on hold. an active week in asia for central banks. betty: it is but let's not forget what is going on in the u.s. and the fed. not only are we watching, as always, donald trump but also thefomc minutes will be out this week.

kathleen: that is going to be the big fed focus. however, lots of fed speakers, a few minutes on wednesday. here is how you need to set it up in your mind. fomcaft -- well after the meeting on february 2, there were retail sales out, the consumer prices last week, betty that double what people were looking for. now people wonder, body fomc -- are the fomc minutes outdated? the key things we will watch -- cohesion on fed right hikes. what is the discussion? did they give us a sense that a lot of fed officials are gearing up for more rate hikes, for the three hikes or not? what do they say about donald trump's policies and the effect they will have to what is expected? is there agreement or a big debate? and what do they do with the balance sheet? with a start selling off their $5 trillion with the bond. let's go back to dots go. again.15, the fed meets shat trying a lot dots six dot

was the consensus. but it was a narrow consensus. in march, will more people see more rate hikes this year? seven fed officials begin this week. that is something we will be watching. there is one fed official almost every day. and housing data is also what we will see. not quite as important as the fed, after they saw that big jump in consumer prices and retail sales. shiftingso the brexit, back in focus in parliament. fed, theer than the bank of england as well. what are we looking out for that? u.k. upper house will debate for today's theresa may's draft law on how they trigger the brexit. they vote on tuesday. mark carney have in the bank of england testifies on tuesday as well. and people are saying now that because we have had weak retail sales in the u.k. that is reducing any odds the think of it when from cutting to hiking

rates. 6093, andok at #bt importantly, you can see the line,s -- the turquoise look at how three lines have push that line. lower consumer populace. it is still at -5. plan to make major purchases in the months ahead, that one is down to -8. and this is what mark carney has been worried about her people overestimating the impact of brexit, but it looks now like maybe what he is concerned about is coming to. so, a lot of focus, a lot coming out on brexit this week as well. for central week banks and policy as well as data across the world. kathleen hays for us in new york. blue -- steel says it is planning a share buyback after forecasting a big rise in second-half earnings. let's get more from david stringer, our commodity reporters in melbourne. very robust numbers we are seeing. what are they going to do with it? .avid: good morning

as you say, really robust numbers, yet again we are seeing that resurgence in steel prices did we saw prices roaring back to 2016 and here is another example of a steel producer who is really reaping the benefits. we have seen some of the top producers and china show their probability and now bluescope, who only sort of 12-18 months ago, was a company in a difficult position. as you say, now it is in a position to look to boost returns to shareholders and it is not just banking the profits now. it also sees a fantastic outlook for the six months through to july. and it is saying it expects underlying earnings to be 50% higher. a that period thatn nt they wee year earlier. and what is driving all of that is, as we say, the strength of steel prices. and that is largely the story of chinese stimulus. we've seen the chinese government policy support that

country's construction sectors. the infrastructure sectors. and of course, china is not the only top steel producer. it is the top consumer. so really critical in setting's. for bluescope, it is also slashing costs. producing more rising volumes across north america, across asia. so, really a great combination, and as you say, it is less than a -- a strong position to return cash back to shareholders. betty: what does this demand outlook look like for steel? where does bluescope see the best opportunities, or the most amount of demand? they're incredibly positive. and they are a company with a really diverse product mix and a really diverse do back of -- geographical mix. across the board, they are positive. whether that is in a north america or across asia, and also in places like india. they have identified a couple of

key segments that producing outl for consumer products of locations in vietnam. and they see that as a really good growth story. particularly as that rising asian middle class gets wealthier and looks to add more products. and also places like myanmar and india, both are key targets for growth. betty: thank you so much. commodity isr, our reporter in sydney. we will be talking further with bluescope. a reminder we will speak to the bluescope ceo live on bloomberg later this morning. joining us at 12:15 sydney time, 9:15 in hong kong and 8:15 p.m. in new york. going to be asking about the sustainability of these very strong numbers we are getting out of the lot of the steelmakers. up next, as the terms of a $5 billion loan to mongolia are approved, we will hear excuse me from the imf's mission chief.

about how the bailout is going. this is bloomberg. ♪

heidi: this is "daybreak australia." betty: i'm betty liu in new york. mongolia has reached an agreement with the imf by three $440ogram that includes a million loan package as part of a bigger $5.5 billion bailout deal to help mongolia with his upcoming debt repayment. spokerg tv on -- exclusively to the imf's mission chief. >> yes, it is going to be a little difficult for a couple of years, but our forecast for mongolia a very positive. we see growth going to 8% by 2019. and remaining height, after that on account of large mining projects coming. and outlook of the second phase

beginning after that. along with underlying strengthening of confidence in the economy, improved macro economic variables. all of this will allow the economy to get much shorter. >> so, you are focusing on three sectors. fiscal policy, monetary policy, and the banking system. >> what we are suggesting to government is something that many countries have done, which is launching an asset quality review. some problems may be uncovered in that purpose, and then the banks would come up with a plan to strengthen them. the government would be there to play of facilitating role. at the same time, the bank of mongolia is improving their underlying bank supervision and regulation. in order to keep on top of these problems and improve their coverage of the sector going for. >> what does the imf think that mongolia can do to end the bailout cycle? >> we do not want mongolia to have another program in a few years time. what the government says to us

is that they are interested in a stable solution to mongolia's problems. and mongolia is more than other countries heavily exposed. to shocks. so this is a tall order. growth bet mongolia's stable forever is a very difficult challenge for anybody. that is whether government has emphasized many of these institutional reforms, in order to make sure that fiscal policy stay strong. now what the government has done is they have passed a law that makes it much more independent and commercially focused. they have said that they are ending the collectivity of the bank of mongolia. the budget deficit itself is under strong control. and a whole raft of measures are being introduced to ensure that the budget is implemented in a disciplined way at all levels. at cabinet level, the ministry level, the cabinet level, at the parliamentary level, so that at the end, we get disciplined and focused physical implementation, so that the economy can grow and be stable. that is the aim here. and i'm very hopeful that is going to happen with all of

these amendments that the government has made to its people. mongolia's was tv species gruesomely to the imf mission chief to mongolia.

weighs ontronger yen japanese stocks as the new trading week kicks off in asia. $140t heinz closes a billion unilever bid. china calling forge fresh talks of north korea after banning coal from kim jong un's regime. can japanese exports keep fueling growth? we will break down the data later this hour. we have got you covered