google and facebook. they have 25 times the earnings. they can generate 20% to 30% for the next several years. they are very attractive. yvonne: what is going on that boat or this the process? mark: it is reevaluating what they own. yvonne: i got breaking news out of japan, the trade balance coming in. 133 billionpected, yen is the adjusted trade surplus for the month of may. -- alsoet was recording short of expectations, rising 14.9%, still a bit of a bump from the half percent of thought in the month of may, but short of the survey. expected,tter than

15.8%. the expectation was 14.5. kind of a mixed picture. it seems like that export picture will be the same. butct here in large part, asia demand will be the big question as that is expected -- betty: the biggest is a good segue to ask you about some of the asian tech companies. , know we have got this chart talking about amazon with a nice comparison with amazon still huge in market cap against the big asian tech companies like alibaba and tencent. do you see companies like that following the lead of amazon? mark: i can cover alibaba, they surprised the market two weeks ago giving and outlook for almost 50%. they are benefiting from some of the same growth amazon has in

the past, different ways of facebook and google. they are doing it in a market where they have an unusually strong market share. alibaba china is greater than amazon, and it can sustain at those levels. i don't think -- i think the valuation is good for both sides. the basic underlying driver is you have secular growth with find onend if you can or two ways to do that, those can be consistent profit growers for several years, they can be good investments. alibaba is good for sure. yvonne: great to have you. rpt capital markets in hong kong. we have got plenty more to come on daybreak asia. this is bloomberg. ♪

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this is daybreak asia. investors --y of on investors' plates. we will have it all on daybreak ina, a big week in toshiba particular as we see the race entering the black lab bid. a winner could be announced as early as this wednesday. we are told a group led by baincapital and aj have offered $15 billion, slightly less than the billion -- then the u.s. chipmaker broadcom. so the big sticking point remains whether this company or the chip unit can stay in japanese hands. what's like with incj and baincapital, that will get the green light from the government. we see about the swings

in toshiba, very volatile. with the news out of whether it the be on sale, obviously news could be broken dn as we. one of the most extreme movers really so far outweighs the rest of the nikkei market. i guess as we alluded to the development and who is with the connector business, the pride tool of toshiba for the week as well. you stayed with this company, you will be rewarded when the volatility -- it seems to be the. -- this chinese shares has been a long awaited decision. the msci global and smart. -- benchmark. we are awaiting the 2017 market classification review, and we will see whether the shares are included in the emerging markets index, which would be huge cause for global rebalancing in

portfolios, but this is a , which wegnal, yvonne call the shanghai death cross. the 15 day moving average on wednesday fell below the 200 day moving average, which happened before in 2015. that moved to an 18% tumble in stocks come so there is concern we will get good news this week, but with the markets falling considerably -- they have fallen before, so there is some consciousness to this survey or decision. look at the surveys we did, half of these people think they will get the green light. betty: i am sure they wish it was more. we will have more ahead. this is bloomberg. ♪

anchor: asia-pacific stocks face a mixed start. macron with a healthy majority in france. anchor: toshiba near a winner in its chip sales. anchor: a year after the brexit vote, negotiations are finally set to begin. opening skirmishes will be played out in brussels. anchor: disney's bet on china is finally paying off. they are close to breaking even after just one year. we will hear from the ceo, bob iger. anchor: anchor: this is the second hour of anchor: daybreak asia, coming to you from bloomberg's asian headquarters. betty: i am betty liu in hong kong as well, joining for the week with yvonne. news to cover.f

we just actually had the japan trade numbers as well. gave credence to the boj wanting to keep the pedal on stimulus. yvonne: haruhiko kuroda is treading water very carefully because he cannot speak to much about this exit strategy despite the fact that you get the pressure from the fed and ecb. they have to be able to stop the ulge. this was a mixed picture. a mixed year for exports. imports beating. we will see how that goes and gets to the latest with reaction to those numbers. sophie: slightly more favorable move with the numbers we saw on friday. slightlyks ended higher. the nikkei 225 out the gate up .2%, despite the surprise swing to the deficit. less than forecast.

shares in tokyo now rising for a second straight day. looking elsewhere in the region, weakness in seoul. the asx 200, swings between gains and losses at the open. a possible driver for investors of course this morning. chinese property prices for may due later in the morning. we also have something for investors. that megadeal for amazon to buy a whole foods. with amazon looking to switch that mindset around the whole paycheck by cutting costs across the supply chain, that can help inflation and give treasury investors some reason to then be bullish. we did see treasury yields fall below the 2013 level last week. we do have the ki dollar rising after consumer confidence for the second quarter is

looking rosier. that rose the highest since the first quarter of 2015, and we have the aussie slightly steady as we do have iron ore on the up about .5% in singapore. the yen, that is marginally lower at 110.96. little changed from friday when the boj cap gets policy unchanged. take a look at the commodity space. a three-week low. oil is holding onto its weekly loss trading, below $45 per barrel as u.s. drillers are extending their record streak of adding to rates. a mixed picture when it comes to the base metals section. a mixed start to the week in asia. betty. betty: thank you so much, sophie kamaruddin, with an early look at the markets. first word news with shery ahn. >> 351 days after the brexit

referendum, formal negotiations are about to start. david davis and michel barnier will meet in brussels after theresa may notify the e.u. that britain intended to leave. the u.k. wants parallel talks on the split. the e.u. insists that is not possible. in mental macron is heading for a big win in the parliamentary election, but not the majority that has been forecast. marche! is en heading for 350 seats. --ore the election turnout is put up 44%, the lowest ever for a french election, and 10 points bel the previous recor new zealand says the u.s. has signaled it is open to a free-trade agreement and does not see any major issues. the trade minister spoke after talks in washington with wilbur

ross. new zealand wants 90% of its trade to be covered by fda's by 2030. the u.s. will be an important part of achieving that goal and his talks in washington were encouraging. it does not miss out on big ipo's like alibaba. the operator poses to make a new exchange that would let companies list before they have made a profit. take it to wall street. the new plan will help broaden the types of startups a can attract your global misconduct 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am shery ahn. this is bloomberg. anchor: thank you. a group of japanese investors are winning the race for toshiba's flash memory chip unit. sources say their offer is lower than that of broadcom but has

the japanese backing that is seen as a vital to getting this done. our reporter is tracking this interview. is it likely to be the companies? >> this is a deal that has been going on for months and months with things changing on a daily basis. the consortium has remained in the lead sincelate last week. let us take a look at the highlights of what makes this bid is so strong. the company is offering about ¥2.1 trillion, which clears toshiba hurdle for the $2 trillion threshold required to pay for the loss in the nuclear business. , fundsinnovation contribute in $300 billion each, crucial for regulatory approval in japan.

a south korean chipmaker also money, which could strengthen the bid by having a company with expertise. we know pain is talking to -- bain is talking to kkr. this all that up to a fairly strong offering, about ¥100 billion short of what is offered by broadcom. bain is likely to face fewer legal consequences or challenges down the road, and we mean a challenge from western digital, toshiba's manufacturing partner, thehas threatened to derail whole deal, specifically if broadcom was to win. anchor: that's right. we have seen how hotly contested this has been. what sort of time schedule are we looking at then? from thelk backwards

ultimate deadline, march 2018, the end of the fiscal year in which the company has to face the listing from the tokyo talk exchange. meet the deadline, they have to apply for regulatory approval pretty much yesterday, so they are aiming to deliver od newto shareholders on june 28 hopefully saying the deal has been done and the company is looking to beef up its coffers. bain is looking to finalize its scheme. we are plausibly looking at the final week of this very long ordeal. anchor: we seeing toshiba shares rallying up .8% in anticipation of any kind of news. thank you for joining us from turkey appeared still ahead, find out why china's top property bubble predictor jumped another 50%.

betty: incredible. up next, the search for safety. shortage of safe haven assets may be the dark cloud. this is bloomberg. ♪

anchor: this is daybreak asia, live from hong kong. i am betty. served the dollar has the city well for more than 30 years and should stay. the monetary authority chief says the city is a small and up an economy, and keeping a stable exchange rate is important. hong kong links its currency to when.s. dollar in 1983, negotiations between beijing and london over hong kong's return to chinese rulspurred a capital exit us. betty: southeast asia's biggest online luxury retailer is planning to raise as much as

$150 million working with credit suisse and goldman sachs. they want to boost the marketplace business and expand in south korea. the eight-year-old startup was valued at $300 million in late 2013, making it the most valuable luxury e-commerce art up in southeast asia. yvonne: amazon says it will try to keep whole foods' reputation while cutting prices. they --old to expect they expect to cut some staff to allow them to compete with walmart and other box store retailers. in 1992.blic -- it went public in 1992. betty: a dark cloud may be building among emerging economies. the lack of new saint haven assets is creating a dangerous overreliance on treasuries. we have seen numbers that show foreign investors are buying these the west bonds.

alicia garcia herrera, the chief asian-pacific economist. great to see you again. before we get to talking about the emerging market, the bond , and particularly in china, let us talk really quickly about this news we are awaiting this week, which is will the a-shares be inducted into the nfci emerging markets asci emerging markets index? >> it is not significant. that is nothing for china. that will in play demand for china's a-shares. it is significant. betty: it is usually significant. china downplays it, but they want this badly. hurt? who loses out if they get inducted?

alicia's this is about -- alicia: this is about reducing it for everyone else. you have to think about mexico, for example. certainly brazil. countries with very large stock markets will lose if china gets in. will continue our conversation on e.m. as well as lack of safe haven assets out there in the world. one feature on the bloomberg we like to bring your attention to is our interactive tv function at tv . not only will you be able to watch us live, but you can dive into the bloomberg functions we talk about on the right side of your screen. on the left side, you can be part of the conversation. you can ask a guest, alicia, or betty and i a question.

this is her bloomberg subscribers only. mixer to check it out at tv . this is bloomberg. make sure to check it out at tv . this is bloomberg. ♪

anchor: this is daybreak asia, live from hong kong. i am betty liu. .vonne: i am yvonneñ man let us bring back alicia garcia-herrero. we have been talking about this greenspan conundrum. this riddle we continue to see, where u.s. yields continue to head lower even when the fed has raise rates four times -- raised rates four times already in the last year or so. is this the same problem we are seeing where people are saving more, or is this a structural issue? not enough new safe haven assets treasuries.

alicia: there are not enough. regulations overall have helped u.s. treasury's much more than any european -- you can think of. friendly speaking, both the u.s. and europe have much larger public ones than many e.m. economies. the reason is, their currencies are more monetized. the are scared of their past volatility. the perception of how volatile these currencies are, and of course, liquidity. there is a number of e.m. fixed income markets that are limited. there are central banks purchasing these bonds, but not thath to get closer to dollar in the treasuries. anchor: to what extent is china's bond market going to be the alternative? alicia: it should be. china's sovereign bond market is

nearly as large as the european bond market together. we need a more liquid market and frankly speaking, because of capital controls, if i were china, i would try to create a euchre offshore. -curve offshore. we need the u.s. dollar, chinese there,ign bonds out creating the yield curve. we are not ready for the offshore market yet. we need to see more. if we have seen it, i think we will instill the appetite for chinese sovereign onshore -- i am sure that is going to come. betty: that is a long way off. exactly. in terms of now, then, where do we buy? where do you buy? alicia: korea and mexico.

debt to gdp is very low. this is what i would buy. yvonne: you mention about this in hong kong as well. it could be a way to internationalize the yen as well. without full convertibility, do you see the remedy -- taking the renminbi taking a share of the markets right now? alicia: no. i am not ready for the onshore market. the underlying risk is on onshore bonds, mainly -- thatn help people look at from a different jurisdiction, but it is not going to be a game changer. it is a good start. it is not good create this

fully, you know, fl demand for a new market. it is just the beginning. yvonne: if you are looking at long-term's, do you think china can afford to go into full of affordability with the renminbi? alicia: i do not think china will be fully out of the woods in five years. it has only accumulated more debt, and the banks will go through additional risks. i do not think they will be ready in five years. that is why i am proposing to start offshore. then you create the appetite and you fall into that jurisdiction, but you have the same credit risk in a different jurisdiction, which is hong kong. that would be very good for china. betty: alicia, just going off script here and out of the emerging markets, i'm curious of what you made of the bank of japan, and what they said on

friday and the conundrum they are in as well, which is that they need to taper, but at the same time, with the numbers we saw on trade, it is still a mixed picture in japan. tapering is not what they should be going for. .hey have an immediate problem as interest rates move up, not so much lately, it will. it definitely will. betty: why do you think it definitely will? they cannot go lower? alicia: for us, the national rate is growth and inflation. you have to go up. you know, it defies gravity. betty: yes. alicia: i think jgb yields will follow and the bank of japan has stubbornly, since december, put put thating --

target. it has forced them to be more aggressive. into the easy mode. why can't you just lift that first and that interest rates fall to their natural level? 10-year jgb's. they can start with that. they don't need to taper. they don't need to scare the market. that would mean natural rates, which in my opinion, is needed. they are just forcing it down, know? i think that is the first thing i would do if i was the boj. i would not talk about tapering now. it is too early. refrainwe saw the pboc from calling the fed. do you think they can chart their own course? alicia: so they think. i think basically, they were not the first was to do qe. for reducing this massive balance sheet, they are really in uncharted territory, and i think that is why it is so

difficult. anchor: great to have you as always. alicia garcia-herrero, economist. disney's $5 billion that on china -- bet on china seems to be paying off. they are breaking even after one full year of operations. that is somethingthin no other has achieved in the last 30 years. take a listen. >> we had $11 milln. just before our first anniversary, that is quite an achievement. we are extremely confident this will continue to grow for a few reasons. people are obviously enjoying the product. word-of-mouth is very, very strong. we know from the people who visit that they just love it because they are spending more time here. they are telling their friends about it. we also know that awareness of this park is tremendous. we expected that the majority of people would come from the shanghai region, certainly in the first year of operation before the rest of the country about it.

it is about 50-50. 50% from this region, 50% from the rest of china. that is an extraordinary achievement. it just means that not only are people aware, but they are hearing that it is worth visiting. that is good. we have a large these of land, over seven square kilometers. we have developed half of it. we have already begun expansion. next year, we will open toy story land. there is plenty of other opportunity to build all of this out. after one year, i am pleased to say prospects are really strong growth and to continue to provide the people of china with a unique and , distinctlyy disney chinese themepark experience. >> can you give us a sense of how the revenues are breaking down between ticket sales and merchandise and what impact that may have, if any, on changes or tweaks to the business plan for shanghai? want to break even and

i can confirm we will. today is the end of the first full year of business, and this will break even. that is an extraordinary achievement. i am not sure we have ever done that. certainly not in the last 30 years for a new theme park. that is extraordinary. we do not breakdown from a revenue perspective what we get from tickets versus food and beverage, merchandise, hotel. i can tell you that, obviously, attendance is higher than we expected it would be. we also have had extremely high occupancy for our hotels, higher than we expected, for instance. the food and beverage and merchandise side, we had some challenges there, but it is mostly learning what the people of china want to eat when they visit a disney theme park, not how they want to eat in general. we are working through some of that. a small challenge, but one we are taking had on -- head-on.

merchandise, certain things are more popular than we expected, other things less so. in general, this is a very healthy business almost no matter how you look at it. that is great after one year of operation. betty: that was disney ceo, bob iger, as you can to tom mackenzie on disney shanghai. i remember when i lived here, i took my kids to disney hong kong. quite small. yvonne: it must have been. there is a big concern with shanghai opening that that would divert all the traffic of the mainland tourists. they are planning on a big expansion hopefully to boost things here. things look to see how are going in disney. plenty more to come in bloomberg. ♪

anchor: it 8:30 in singapore,

half and i were away from the open of trading in the lion city. a cloudy outlook this morning. betty: i am betty liu and you are watching daybreak asia pure. first word news with shery ahn. shery: thank you. the yen weekend after softer than expected trade numbers. exports jumped 14.9% in may from one year earlier. aat was below estimates of 16% gain. imports grew more than expected, up 17.8%. ¥203 billion,t of the equivalent of 1.8 billion dollars purity economists had expected a surplus of 390 million. the rba governor says that the is perfectlyonomy capable of faster growth if parliament can overcome political gridlock. he said lawmakers must focus on reforms that can make a real difference to living standards.

if not, he thinks australia will fall behind. enacted a has not significant reform since a conservative tatts was introduced in 2000. the finance ministers of china and south korea have held their first talks in half a year. they met at a summit over the weekend. they agreed to cooperate more closely, says one represented. >> that is what we hope for, but given that there are delicate diplomatic issues, it might be too early for us to hope that all the barriers will be used right away. -- be eased right away. based on my meeting with the chinese finance minister and dialogue channels the countries have, ewe hop non-ter eriff areas would be eased. readingthey are a

ground for radicalism. kent walker says new technology will be used to identify extremist videos on youtube and also be more aggressive in notting content while officially forbidden is still inflammatory to a global news, 24 hours a day, powered by more than 120 countries. this is bloomberg. anchor: thank you. let us see how the asian markets are shaping up with sophie kamaruddin. sophie: although we have a gloomy day outside in hong kong, it looks like asian stocks are looking fairly up the this mine with japanese stocks leading the charge in the region following the latest japan trade data, confirming the economy is chugging along despite a slightly lower export growth we saw from a. .4%.ikkei 225 up

asian currencies also on the front with the kiwi dollar and korean won leading gains with asian stocks moving upward, they have been rising in a tight upward channel since december. if they can sustain this see the original benchmarks surpassed the 2015 high from the start here. let us check in on what is going on in sydney. putting the asx 200 on course for a second straight day of gains. utilities and financeading the advance. consumer cycles falling over 1%. woolworths and was farmers -- west farmers following their counterparts after amazons megadeal to buy a whole foods -- to buy whole foods. giantn the wake of the confirming it is no longer looking to take over i

nomura real estate. both stocks are sliding on the back of that news. nomura's real estate unit is falling the most since march 2011, losing over 12% this morning. post-president says he wanted to tone down m&a. guys. anchor: thank you so much, sophie kamaruddin, looking at some of the stocks and other assets that are moving. breaking news out of the u.k. metropolitan police saying there are a number of casualties from a van collision in the seven north london.n a number of casualties. one person has been arrested as a result of this van collisions your no details about the motives or what exactly is behind this other than right now the facts are that several people have died from this

collision and one person has been arrested. yvonne: don't want to jump to too many conclusions at this moment, but this is a very fluid situation. police were called to the scene around 12:20 a.m. londonambulane incident. no details yet immediately available at this moment. throughas been going such a tough time already. they are still reeling from this tower fire a couple of days ago and the london bridge incident as well. we watched some of those latest developments out of london. we will get you the latest, when we get that coming in. betty: let us get back to one of the most-read stories on the bloomberg, investigation into alleged russian meddling in the us election and whether president trump is actually under investigation for obstruction of justice. he says yes in none other than a tweet, but his lawyer says no.

ramy inocencio sorting that us. >> it is a "he said, he said" kind of thing. says whatever he tweet something, it is an official statement. one of his lawyers is walking back that comment. i want to remind everyone what he said on friday thread he said "i am being investigated for firing the fbi director by the man who told me to fire the fbi director," rod rosenstein. donald trump tweeting at 6:07 a.m., but today on the sunday morning talk shows, mr. -- one of donald trump lawyers said the president is not and has not been under investigation for obstruction. that is a quote. he went on to say that the tweet you saw from the president was just in response to the five anonymous sources lower leaking

information -- that were leaking information. donald trumpse could not actually elaborate because he was talking through anotherhere, he went on channel, further pushing the point that they received no notice of investigation. to the contrary, of that, alluding to the fact that mr. comey, former fbi director comey's testimony that he was not under investigation when he spoke to the senate intelligence committee. further muddling the waters here, it looks like that lawyer went on another channel and said what is not be sure of happening because he cannot read mr. rosenstein or for that 's mind, so mueller that leaves us where we are now of a "he said, he said" kind of situation. anchor: not much clarity after that back and forth. friday, the future of rod

rosenstein seemed to be in doubt when trump appeared to attack him in a tweet about the investigations. could he be fired by the president? ramy: the short answer to that is yes. in addition, there was back and forth in terms of the legality of this and firing fbi director mueller, heading up a special counsel. if that happens, really capitol hill could metaphorically explode here. when there is bipartisan backing at least for mr. rosenstein -- coming from democrats as well as republicans themselves. marco rubisaid "that not going to happen. a senator from minnesota set up disaster." be a dianne feinstein, a democrat from california, saying that while the president believes he is above the rule of law, he is in for a rude awakening if he tries to fire either mr. miller

or mr. -- mr. mueller or mr. rosenstein. he is actually reportedly telling his advisors at least that he does think he has the legal authority to do so. with that said, democrats are saying if he pushes ahead, they are going to start impeachment proceedings. guys. anchor: thank you. ramy inocencio, joining us from new york. sector is inrty focus today with the latest inding on real estate due one hour's time. tom mackenzie joining us from beijing with a preview. what can we expect? tom: the broad outline has been growth in prices ticking down in the cities nominated. a pop-up and pop down. the overall trend has been slightly lower. that is what economists expect for the month of may as well. they are basing that on a number of factors. first of all, the curves put in place on deposit.

there are further curves and further tightening, whether that is funding the developers or price caps. we also had the sales data for may that came through, and that showed a slowdown as well. all of that feeding expectations for our internal in-house economists that we may see a slowdown in this growth of house prices. we have a chart of what is going on in the cities that is g #btv 183. bring that up and you can e the three lions, and the number lines and-- the three the number of cities. up and it has broken away from first and second tiered cities. that is probably something policymakers are content with seeing because prices traditionally have been weaker in those third tier cities. very high in first and second tier cities.

that will be something that is welcomed. something we are seeing, the mortgage rates have ticked up as well. that may add further pressure to prospective buyers. in terms of the outlines, we saw april numbers. 58 cities showed price gains in april, down from the 62 we saw in march. anchor: tom, these property curves -- i mean, how likely are they going to stay in place? tom: so far, there is no indication that those curves are going to be taken off the table. the approach by policymakers has been a tailored approach rather than a one-size-fits-all because another challenge for them has been not just easing the prices in cities like shenzhen, shanghai, and beijing, but .hifting some of the excess we have a chart that shows something of a case study, g #btv 170. it shows what has been

happening. beijing, vis-a-vis the city 3 hours drive east of the capital. prices in beijing have edged down or remained relatively flat. the other city, they have picked up quite significantly, particularly in the month of april, and that has helped to draw down the inventories, down 16%. the pboc has been leaning on lenders to ensure they are very vigilant when it comes to mortgage lending, so all signs are that these curves are going to remain in place. it would depend on sharp shocks. linked into everything from cement prices to white goods and impacting the retail spending power of chinese consumers. it is something very closely watched. we will get the made it out

around 9:30 hong kong time. anchor: we will be watching for those. thank you so much, tom mackenzie, on the chinese property market. we are staying on this subject because the top property bubble -- as prices rise. another 50%. a professor joining us next. this is bloomberg. ♪

anchor: this is daybreak asia, live from hong kong. i betty liu. yvonne: i am yvonne man. our next guest has seen the top property bubble profit. he says prices could rise by another 50% in the big city. joining us now from beijing is the deputy director of the national institute of financial research at a chinese university. great to have you on the program. i want to show our viewers where we stand when it comes to

chinese property prices. we have seen these curves take a bigger bite into the market right now. we have seen prices on average see a bit of a drag lower, at new construction, and sales heading lower as well. a gradualn quite slowdown overall. why do you think we could see a 50% upside in home prices? guest: while, i think this is not surprising. we are seeing gradual prices come down every time we have the policy come into the market. i think the company is doing more than the curving policy. they are limiting the really expensive companies to come into the market. we are seeing the prices dipping. the whole mechanism is now increasingven the control over the capital flow, and increasing monetary supply coming into the market. peoples no alternatives are still betting on the price to go up whenever the curve

policy is being lifted. you are thinking we could see some relaxation of these property curves. what could trigger that? that stemmingere speculation, that is the number one priority from the government leading up to the people's party of congress later on this year. we have growth in the first quarter, so with the growth target at 6.5%, there is quite a bit of room for china to focus on deleveraging and the challenges at home. >> yes, but if we look more carefully at the quality of the numbers, i think we will see a lot of the growth spots come from the aggressive stimulus in reallyt year and aggressive price pickup in last year's housing market. zhu: so if we are taking those two parts out of the equation, we might see the growth numbers flashing out pretty quickly.

to prevent that from happening, i really do not see any short-term growth apart from the housing market. so if the government is going back to the role of setting a growth target and trying to maintain achieving that target, it is probably not too surprising that another 12 months down the road, we will have nowhere else to turn but to turn back to the housing market and lift those curve policies that were put in six-month ago. do go thathe prices point, aren, at that we looking at a dangerous bubble level in chinese properties? zhu: well, i think we are already looking at a very dangerous property level for now. i mean, if you judge china's property market by any of conventional wisdom, the price to rental yield or price to income ratio, they are already

at the top of the world. people have this mentality of this time is different. china's housing market is different from any other market. wisdomink conventional is not useful in evaluating the chinese property market. that is the biggest danger of a bubble year of thinking. yvonne: you know what is interesting though is i want to bring up this chart here, g #btv 5840, which shows you where chinese property stocks are trading, and interestingly enough, being represented by the red line, they are trading quite significantly below their book value. the stocks are trading at quite a discount. they are cheap. i'm curious were that disconnect is -- where that disconnect is. i'm wondering what people are buying up chinese properties but not so hot on the property stock. there are probably two reasons to one is that the property price -- the stock prices reflect most of the

buyers of the properties at a far shorter horizon. we are talking about a difference between institutional investors and retail investors, and households are having a much shorter horizon in terms of investments than the institutional guys or the bigger guys. that is one reason. the second is, i think it is about the investment alternatives. if you look at the average household in china, they really do not have that much financial literacy to be that into the financial market or stock market. even though they see housing as something worth investment, they may not be that smart or figure out that they should by the property stocks come on top of the fact that there is a great level of volatility in china's stock market here that is driving the investors away, whereas the housing market, the properties that seemed substantial, always seemed to be there, always so can create, i

tracked investors attention and their money as well. anchor: professor, before i let you go, what do you expect in terms of this relaxation of curves? will this be a nationide one? that might already start -- might have already started happening. we are seeing relaxation come into the lending enterprises. we do not know where those loans will eventually go. i think we are seeing a little resolutioning in the of the policy makers they are feeling that whenever they start tightening the loans to the property markets or whenever they are trying to crack down on the property prices or at least moderate the housing price appreciation, they are feeling a pinch on the economic side. i think we have been seeing a lot of saying without doing, which is more on the increasing

carefulness and the increasing dampening effect on the housing market. in the next few months, we will see more of doing without withg, gradual relaxation other policymakers making announcements about them. i think that will take affect gradually and over the next several months. thank you sou ning much. we want to update you on that breaking news out of the u.k. metropolitan police saying casualties from the van collision in london -- and earlier i had said fatalities -- it is casualties, not fatalities. we do not know yet what exactly has happened. we know that given this statement from police, there are a number of injuries at the very least from this collision. yvonne: they are calling it a major incident. officers on scene with other emergency services to attempt --

to tend to those casualties. seven sisters road, north london area. there should be quite a bit of traffic in that area right now. they are trying to respond to that incident. 12:20 a.m., monday, london time, this incident happened. we will get more detail in the next couple of hours or so, but nothing immediately available at this time. betty: you can get around above that story and keep up-to-date on that. storage you need to get your day going, today's edition of daybreak. bloomberg subscribers can go to dayb . you can customize your settings so you only get the news on the industries and assets you care about. this is bloomberg. ♪

anchor: that is almost it for us here on daybreak asia. a look at what is coming up in the next few hours in bloomberg markets. we are going to see how policy control -- >> you have the first top-tier cities, just runaway house prices. we are seeing signs of a slowdown taking place. tier four and tier three cities not doing much here. the numbers are out in 35 minutes. we have denis ma giving us his reaction to it all. welcome to hong kong again,

early, by the way. betty: it is so great to see you. you are looking dapper, as usual. we for evans -- dwyfor evans. -- how the feeling that can theresa may turn up looking for that mandate, which she did not get? yvonne: the chancellor saying you want the softer brexit as well. rishaad: exactly. there we go. happen laterwill on. looking at macron as well winning that election. the turnout was so low, the lowest turnout in 30 or 40 years or something like that. what kind of a mandate does that give him as well? the hong kong exchange story. they missed out on alibaba. going toproblems are

rise again, so why not change the rules and make it easier for some of these companies? we have very few startups in the hong kong exchange. we will discuss that. betty: a lot ahead. markets coverage continues with rishaad and haidi. this is bloomberg. ♪

haidi: it is 9:00 a.m. in hong

kong, 11:00 a.m. in sydney. i am haidi lun. rishaad salamat, coming to you from bloomberg's asia headquarters in hong kong. this is bloomberg markets. haidi: asia-pacific stocks start the week in positive territory. remainingakata