scott morrison confirming his seven year of appointment ahead of an election likely to be called thisd. economyinherit an working with disinflation. here in hong kong and shanghai. last trading day of the week. >> looks like another down day. japan -- this would be the eighth day of consecutive losses for regional shares. japan is coming that online after three days of holidays to the nikkei is down by .5%. isfar as china, shanghai pretty slow at the moment. a modest recovery yesterday. down by .4%. we also had the yen factor ahead of the payroll numbers from the u.s. relief --- a site of a sigh of relief. the australian market is down by .7%. rishaad: breaking news. from australia. rba reserve bank raising its quarterly policy statement. rish, the headline is the expectations on inflation. the rba cutting is inflation forecast to between 1%-2%. the forecast was between 2%-3% in february. deflationary the cpi industrial you a couple of weeks ago prompting the reserve bank to cut the cash rate to 1.75%. in the statement, they are seeing that saying that the cuts they made on tuesday wo

scott morrison delivered a budget he says is focused on jobs and growth just hours after the rba cutor the first time in a year. >> the government came up with a plan to reduce the deficit to $6 billion by 2020. it does rely on some rather optimistic assumptions about the price of some commodities including iron ore and growth forecasts. not a lot of money to give away. it was really more of a document designed not to enough -- offend in an election year. >> puerto rico will default on a bond payment. the consequences, weaving grappling with them. >> what has happened is the government development bank will default on this may one payment. made thenment announcement yesterday in a televised address. now what happens is there is an agreement with some bondholders but unfortunately the island faces an even bigger payment by the $2 billion. >> what you think will happen? >> it will be a lot of negotiating going on between the bondholders and puerto rico. puerto rico really wants to get this broad, global restructuring done with a lower their $70 billion debt stack. whether they can do t

here is what scott morrison said about that. >> but the government is talking about, the inflation target2% and 3%, those inflation numbers are impacted into this budget. they are taking account of that. it is what has been happening in the housing markets in australia, and i feel they can start to move without risking overheating. the treasurer didn't bank from the reserve signified any underlying weakness. he said i will let them do their job and i will focus on mine. rishaad: thank you very much. to thelen, talking finance minister of australia at the bottom of the hour. that is about 9:32 hong kong time. let's like at the stories later on in the program. tweet us with the #"trending business. let's look at what the federal reserve does next, the game in focus. yvonne is looking at that. a lot of that commentary coming through overnight, the federal rate hike is back on the table from the last said president, dennis lockhart. he said june to be a real option. that would help stall the dollar's slide from a one-year low. --khart said to rate prices hikes are possible. wheels are heard f

scott morrison saying ahead of his budget this is not the time to be throwing money around or to put it another way if they don't have any money to throw around. so the budget is twofold really. preserve the triple-a credit rating and preserve as small a target as possible likely ahead of july, angie. >> tough job. thank you, paul. checking other headlines this morning virgin us an trail's warning investors to expect a loss in the current quarter and the airline says it plans to reduce capacity by 5%. the main cuts focused on regional routes. shares have fallen by almost a quarter since the beginning of the year compared to a decline of less than 1% with the benchmark. the casinos are showing increased signs of stability. revenue in april fell less than estimates as operators shift their focus from vips to attracting more casual gambler and tourists. the gaming revenue dropped only 9.9% to $2.2 billion. it comes as casino operators have been encouraged to diversify amid the slowdown. standard chartered is said to be investigating its bankers. sources told bloomberg several employees