the second annual gathering for morgan stanley in china. rse, the g7 meeting and the fed telegraphing their possible rate to move coming up next year. lots to chew on and that is why just,l bring in our next morgan stanley's chief asia economist. thank you so much. policymakershink around the world have left in their quiver given we have negative rates in japan, negative and parts of europe, possible hiking in the u.s. but still a deflationary trend in emerging markets. with monetary policy effectiveness waning across the world, we need a transition to ourulate demand to easing fiscal policy. >> with the rising yen, is that chilling abenomics? >> it's a part of the problem but essentially what we need is demand to the extent we can get that that inflation expectation. we think that the next step is to take off fiscal easing. one of the things japan has not done is to have fiscal and monetary policy operating in tandem. we've either had in the first , real interest rates or high. that the ideal outcome will be for japan to have fiscal easing

we talked something about last week when i was at the morgan stanley china summit, the risk to the bankingng crisis possibly looming in china. and influential ratings analysts talking about the nonperforming loan situation in china being much worse than the government figures of 1.75% of outstanding lending. she says it could go nonperforming by the end of the year. why is this tied to the possible default? a lot of these liabilities are tied into wealth management products. guy rock a did last year, issuing 3500 new wealth management products every week in china last year. the industry went from 23.5 trillion -- excuse me, 7.1 -- and basically they are taking individual's money and traditionally they invest in bonds, equities, and derivatives, but now what we are seeing is cross investing. wealth management products investing in other wealth management products, layering on top of each other, and often times only on single underlying assets or shaky assets. what does this sound like? it sounds like 2008, doesn't it? similar, but the problem is these products are all off balance sheets, se

china. of course across hong kong. morgan stanley is here to stay. ill with us in the studio. let's get your global perspective. i have here a chart that shows the index showing the old economy over in china. it comes from a story that we got on the bloomberg that talks about how we are all in search of new ways of beating china and new data from china. a whole enterprise to put together the whole -- the right indices to watch. piers: there is some interesting points to be made about the transition of the chinese economy. very much recognizing the transition to a more consumer led economy. the exports are still very strong. i think there's a problem in the bank system but it has been known. there is a question that the government will actually step in and deal with the problem through most of the banks which it has a significant stake in. i don't see that causing the engine to stop or sees, but one of the things we have to sees is the economy. reallysumer led demand going to be the key driver going forward. that transition from third world to first wo

china credit riddle. exclusive, morgan stanley's james gorman tells us he is still bullish.ngland governor gets ready to face mts in his last public statement before the pre-vote. what would an exit mean for its business? we speak exclusively with jes staley. this is bloomberg

morgan stanley downgrading cnook and petrol china.are coming under pressure in the early session, but we will keep watching those. we are seeing the share market pierre back a little on that. here are some of the other oil producers we are watching in the region with the oil price at a two-week low. on the off shore, we have seen risen. has ut the offshore chinese up slightly. a pick-and-pop up coming through in the aussie dollar and chinese equities on though those numbers. back to you. >> thank you for that. rishaad: a 2.3% read when it came to the consumer price index. that was bang in line, and produced a negative consumer price index for the 50th consecutive month. just slightly better than expected, looking for a negative 3.7% and actually getting one of 3.4%. that is what we had there as well. 10:34 a.m. in pyongyang, north korea. michael kim -- jean-claude this r -- this is the scene in pyongyang. he has been lauding the achievements and reforms announced over that period. not much detail on them, but there was nonetheless rea

we have a tremendous operation here in china, and of course, across hong kong and the rest of the region. that was morgan stanleyn and ceo james gorman with stephen engle. interesting to hear the two back and now berkeley ceo morgan stanley ceo, both saying we are counting on china. david: the question is what part of china are we counting on? the part that's regulated heavily in keeping their hands on all the triggers were the one that's trying to liberalize and get rid of that. china is going into different directions. jonathan: there was a phrase about the paralyzed volatility in the first quarter. the source of that, a lot of it was from china. the fed is feeding into that with a stronger dollar and at the forefront of everyone's reading today with a wall street journal piece. the very idea that if the pboc scraps that policy to have a market to terminated u.n. fix, and the idea that they would just sit the u.n. fix based on what the authorities saw best -- david: they wanted more purposes,for domestic so they tried the market and it didn't work so well and they backed out. jonathan: that's going to really a

you do not want to miss our exclusive interview with morgan stanley chairman and ceo. live from the china india has successfully launched a scale model of a reusable spacecraft. this is a project that could the nation against space race billionaires. thank you for joining us. does this change india's economy? stage, i would say the successful launch of this mini-space shuttle is a technology demonstrator. one of the distinctive features is the low cost with which this particular shuttle has been experiment hasey been successful. i would not extrapolate this to say that it would make any immediate difference to the indian economy. india could emerge as a credible -- in a numbers of applications. the economic benefits to india are for the long-term. angie: absolutely. we have seen that economic return play out under the nasa program that has punt innovations -- that has spawned innovation. india is only spending a fraction of what nasa spends. how much impact can it have? >> that is a distinctive feature. if you look at the nasa program as the benchmark, the cost is about a 10th. this parti

morgan stanley still sees rapid growth in china.owngraded, the ceo says he has enough capital to pay its debt many times over. carney testifies u.s. lawmakers after weighing in on the risks of leaving the european union. david: welcome to "bloomberg ." along with jonathan ferro and vonnie quinn, where joining the biggest names in finance throughout all of "." jonathan: we hear from gormans's ceo and james joining bloomberg in exclusive interview you will only see here. find out where he stands on china and much, much more. l'

morgan stanley's is 60% of the trading volume in china is speculative money as opposed to hedging.ve everything on "on the move." with pricesening ? >> steel prices fell by their daily limit yesterday. they are extending losses today. what is happening is reality is catching up with the market and there has been a slew of bearish data. importsockpiles, cotton that is casting doubt over the chinese demand story and that is weighing on the markets. thank you. journey us from singapore with the latest on bubbles and busts. rishaad: coming up. a look ahead to what to expect from emirates. as we continue. ♪ rishaad: we have a look at the stories are making headlines around the world. by do is restricting the number of posts. after the death of the student. sold -- not sought treatment. manus: the chinese insurer may face inspection at home. last week the watchdog said it will seek more disclosure from propertiess buying or by investing in unlisted companies. htc shares a slant on monday when they came out with first-quarter sales which had plunged 63% from a year ago. htc posting their

china says they will use daily fixing and broker support to avoid it. morgan stanleyoldman says the economy will continue to grow quickly but will end with "some bumps" as it transitions to domestic demand as its main driver. he also told bloomberg television that investors should stay tuned for improved returns on equity from the banks with markets becoming "more normal." and those are the headlines, powered by over 2400 journalists in 150 news bureaus around the world. let's get the latest. haidi, you have been monitoring a fairly lackluster day. haidi: you get the feeling, don't you, that investors increasingly over the past couple days, when we hear from janet yellen, are sidelining themselves. not a lot of direction when it comes to this, but we are seeing a pretty raw based selloffs. -- a pretty broad-based selloff. a lot of investors waiting and seeing. shanghai down by 8/10 of 1%, following for the first time in three days. we are looking at selloff when it comes to property names and commodities related stocks. we're also getting investors bankingly, a top an

china. a top analyst says the country may need a bailout worth trillions of dollars but the morgan stanley ceos he is up beat. >> the second largest economy in the world and growing at 6.9%. it is certainly growing at a rate demonstrably faster than the rest of the world. preparing for the u.k. referenda before a pre-vote, that as the corporate bond market suggest that don't accept a brexit. one of e

morgan stanley forecast that by 2018, india will account for 11% of all smartphone shipment and a market could grow five times faster than chinaright now, india accounts for just 2% of iphone shipments. india iself has said like china was a decade ago, but there are already signs his trip a not have paid off. india has strict rules for foreign companies wanting to do business there. with aes have to comply rule it says 30% of the components of its devices must be bought in india before apple can open its own stores. right now, the apple supply chain is based mostly in china. apple wanted to be exempted from this rule and india does sometime give waivers but sources say they don't think apple qualifies. overturn it but if not, apple may need to find another way to crack the market. turning now to vietnam and president obama's historic tour. dave mcclure is still with us. they set up a fund to invest in local the enemies companies. what do you make of the president visit and highlighting entrepreneurship? guest: vietnam is a growing country and it's great to see president obama visiting countries where there is strong u.s. ties

we have a tremendous operation here in china, and of course in hong kong and the region. morgan stanleystay. was an exclusive interview with bloomberg in beijing. we have some breaking news. monsanto has been spotted. their shares were halted from trading. they have come out with a response to the bid from bayer. alix: they are viewing the result as complete and inadequate. they are open to discussing a potential path forward. $121 per share is an opening bid. monsanto now asking for more. scarlet: we will be back with more coverage. ♪ scarlet: monsanto has responded to buyers offer to buy the company sang the board unanimously use the proposal as incomplete and financially inadequate. it is open to continued conversation to assess whether the the transaction is in the best interest of shareholders. monsanto is saying it is open to the prospect of more discussions but has not set a timeline for these discussions. it needs reassurances and it does not get that from the current offer from bayer. shares of monsanto holder from trading as we were awaiting this statement but it has now come

morgan stanley forecasts that by 2018, india will account for 11% of all smartphone shipments, and the market to grow five times faster than chinaght now, india accounts for just 2% of iphone shipments. local iphone sales surged in the march quarter. cook himself has said india is like china was a decade ago, but there are already signs his trip a not have paid off. here is the rub. india has strict rules for foreign companies wanting to do business there. companies have to comply with a rule that says 30% of the components of its devices must be sourced in india before apple can open its own stores. right now, the apple supply chain is based mostly in china. so it does not meet that criteria. apple wanted to be exempted from this rule and india does waivers toives companies with cutting edge technology sources say they , but sources say they don't think apple qualifies. they still could overturn it but if not, apple may need to find another way to crack the market. emily: turning now to vietnam and president obama's historic tour. the president toward the jade pagoda. dave mcclure is still with us. earlier this year come off hu

china if it was june or july? >> probably not a huge difference. at morganal view stanleyst rate hike until december, so we will see what happens, but obviously the chinese are concerned about financial conditions. when we had the first rate hike in december, and in august when the chinese were appreciating their currency, financial markets tightened. chinese arethe concerned, but our view is that the fed does not hike until december. david: one thing we hear repeatedly is it is not so much where the level is, it is how abrupt it is. it is the volatility, and i wonder that maybe that is not the message the chinese are trying to deliver. dan: i think more global coordination among policy members is needed on the fiscal side, so while you are right that they are concerned about policy on the monetary side and the effect on currency, we are six or seven years into this monetary currency cycle. jonathan: let's talk about coordination. , i dog at the fx market not see china moving to a more flexible exchange rate at all. i see them begging the u.s. to find out what they are goi

. ♪ >> the china credit -- the top analyst for the country will need a debt a in the trillions of dollars. in an interview, morgan stanleys us why he is still bullish. >> the second largest economy in the world. it is going at 6.9%. it is going at a rate demonstrably -- growing at a rate demonstrably faster than the rest of the world. >> moody's cuts deutsche bank's credit rating. kennedy.kes on the he faces

china is doing well sh, and maybe some thought that the iphone se is getting a pickup. >> and what about this one dick's? >> well, it is a downgrade, because looking at morgan stanleywhat they have isolated on and this is a 1 to 3-year call, and the square footage continues to the rise, and yet as they continue to expand, and yet looking at the store sales, flat or negative, and point out a couple of names, walmart, bed, bath & beyond, and dick's is on that list, and they are take out the online brand, and just as brick and mortar not so great, and that is why there is a 39 target on it. >> we will talk to to a manager on a wild ride with the health care stock. find out why he is keeping is a republican ta as a top fund, and the best per for ermer in 2012 as well. you don't want to forget that. i know breaking the neighborhood speed record looks easy... but i wouldn't be able to burn rubber without optum. see i have diabetes... which can make it a little harder to become a racing legend. thankfully, though, i have an optum nurse and in-home biometric monitoring that really work with my doctor's plan. which means diabetes doesn't get in my way... unlike the neighbor

china. up -- cwthares are shares are up it and we are looking at is all in tokyo -- and we're looking at a fall in tokyo credit morgan ailey today and australia that stanleythe government controls the firm's that could be looking at a solid boost. this is looking good for the health care stocks. yvonne: thank you. breaking news, you can see on the bottom letter half of this isn -- of this grain, this -- on the screen, this is from the previous three months. economists were expecting an increase of about 6/10 of 1%. they were looking at about 2.8% coming out of thailand. looking a little better for the first quarter. 3.2%n thailand going compared to a year ago. and a better number there in terms of the economic growth in thailand. we will take a look to see any reaction coming out of this. it is better than expected. 2/king at strength at about 10 of 8% credit china posting records -- of 1%. china posting records. move to looking at a take advantage of higher prices for steel output. we will go to martin in shanghai. really good to see you. we are looking at another record in steel output, wasn't the still production supposed to be falling this year? >> ye