stephen engle: not all girls are along for the ride. has spent upwards of 30,000 u.s. dollars on gas, tires, and -- tricking out her nissan. >> here we go. ♪ ♪ >> it is rad to have a girl drifter here in china. i like the smoke. it is a big show for everyone. stephen engle: never mind she studied finance in college. she wants to be a professional drifter. you race against guys? >> yes. all guys. stephen engle: girl power. bloomberg news, beijing. let's drift to the stock exchange. taking a look at japan, south korea, and australia. >> i am looking at a corporation, making industrial valves. things like bronze, steel, stainless. you can imagine the applications. the stock is not done well. it is not covered by the market. .24% -- 2.24%. upside. >> that was my first pick. well. win, it is mine as this company makes oil and flour for bread and noodles. they are selling ¥1 billion of convertible bonds. some of that will go back to iraq. -- to buyback. angie: back in an hour to see how the stocks have done. ♪ angie: sales tax on hold, report

here is stephen engle. n: honda may pullback more than 20 million cars globally as the fallout from the lethal airbags scandal widens. says honda isws" planning additional recalls that could cost $2 billion, and that follows takata being order to replace 40 million devices. the japanese government is making home visits and will start a direct mail campaign to urge car owners to have their vehicles fixed. toshiba's next president will come from within the company despite the fallout from its accounting scandal. the current vice president will replace the interim leader after a shareholders meeting in moon -- in june. adr, tumbling 4% on the news. singapore's biggest banks could join forces to combat money laundering. they are considering sharing information on perspective clients at a newly traded registry. the banks would use the information when deciding whether to approve new applications for accounts. singapore froze several bank accounts in an investigation into malaysia's estate fund. disney's new shang

stephen engle joins us more on this. why is this visit so sensitive? en: he is number three in china. three on the committee. he is ahead of the account tears. he is the chairman of the national people's congress. he is a big deal. it was the national people of congress in august of 2014 that passed down those guidelines that pretty much changed the way a lot of hong kong people thought they were going to be able to elect their chief executive in 2017. basically saying we will have this select panel to choose the candidates. of course, that subsequently led to the occupy hong kong protest of 79 days and quite a tumultuous time in hong kong and the resulting tensions between hong kong and china, at least politically. this is a very sensitive issue right now with zhang here. 6000 police officers have been deployed. compare that to four years ago, when the outgoing president came. handd about 3000 police on to keep security in place. this time, they don't want any kind of trigger points or protests because going forward, there are some key dates. september

joining me is stephen engle of bloomberg news. as come out , and said in the south china morning post he has a lot of faith in the chinese economy. what are you going to be watching when it comes to alibaba's numbers? stephen: we will be looking at a number of different things. you are absolutely right. stockompany, at least the has been the unloved giant on , wall street because the shares have lost about one third of their value since that peak of just under $120 a share after its big ipo in september of 2014. they have doubled their profits in a year. they had revenue growth of at at least 20% a year. they are loved and the stock is -- they are unloved, and the stock is trading at about $75 right now. what we are at before the bell is a number of things. the investors want better revenue growth. before ipo, they were having revenue growth in the 45% range. we are expecting about 33% revenue growth for this current fiscal fourth-quarter. investors want more and more clarity as well on margins. also, alibaba has been on and acquis

we heard from stephen engle, a banking analyst with autonomous research talking about china will needrillions of dollars of bailout. contextualize your concern around china. there is a debt burden. debtthink, look, there is and it is mostly in the regional banks. it will take a lot of money to bail them out. i'm not surprised because we knew about this for some time. when you visit china, it is clear that there are debts. i'm not so sure that is the biggest story. 6.9% growth, it is still growing a lot more than the rest of the world. it will slow down and some money will be lost. i'm not entirely sure we should listen to mr. gorman. there is a shift from export to domestic, but it takes a long time to happen. morning, skeaker. the currency question that we have here -- volatility is changing. three-month volatility in the blue line. what we got here is yuan dropped 1.2%. the probability of breaking 7%, that is dropping. rebalancing and the currencies, they don't want this currency risk to get out of control. we talked about it a couple of times. where do you stand at the moment after

bloomberg correspondent stephen engle in hong kong is crunching the numbers. so much talk about the chinese economy stabilizing. does this data tell us that is what we are seeing? what are we getting out of these numbers? en: what we are getting is an establishment of the trend. we are beyond the anomalies we get with the lunar new year's holidays when pmi went up. in february, they were down. factories were closed for the weeklong holiday. what we are seeing now, 50.1 in april for the manufacturing pmi is not going to blow anyone out of the water and say, we have a sustained v-shaped recovery. what it does show is this is sustainable. this is a managed stabilization by the government. this is what they have wanted to see, but there are still some clouds on the horizon, of course. new orders, fairly robust, coming in. the sub indexes 51. new exports and new imports fell in april. that is a worrying sign. also, employment showed some weakness, showing that some factories are indeed cutting workers in what is still a slowing pace of growth for this chinese econo

we have got stephen engle looking at the latest pmi numbers. it looks like things have stabilized. we have gone beyond the lunar holidays. now we are into april data, so there is stabilization. some of that targeted easing working into the system. at least to your point that perhaps as economist are increasingly thinking not predicting another pboc rate cut until later on down the road because this has been the recovery based on increased lending and construction. in particular, and housing. instead of focusing on deleveraging in the economy. really pushing this kind of stood minister get the economy going on and is working. look at the manufacturing pmi at 50.1. angie: this is 3.5 years worth of weakness. stephen: there was seven months below 50 for the manufacturing. this is the official pmi. the more private surveys tend to be bearish. in march,big pop up not big -- still barely above 50 -- but much better than the the fourth had in quarter and the first quarter. april showing continued signs of stability. angie: as for stimulus, if not now, when? the consensus is for perhaps th

stephen engle is at the convention center. we saw a bit of our testers out there during the speech. us the highlights coming out from china's number three. stephen: and here it was very strict and security and protocol as well. the number three man in the chinese communist party hierarchy speaking here. macaualso in charge of affairs. people were definitely listening close in their pushing forward his belt in route initiatives that the president launched in the autumn of 2013, trying to get some momentum going and using hong kong as well as a platform with its logistics rmb andt's offshore among the highlights, the global economic recovery has -- is losing momentum. and rude initiative could help in that global recovery. some of the others -- other comments he made, he said it is also about shouldering risk which china would shoulder a lot of that was created he says it is an arduous task and shouldering the risk could foster a global recovery. as far as hong kong's role i spoke to the financial services secretary and he said hong kong plays and will play a very active role. >> this

our very own stephen engle inkled up and took a ride this soon-to-be listed beijing auto racing circuitat tracked day, anyone 100 85e out and spend u.s. dollars to have fun at the track. beijing's gold import is trying to put china's emerging car culture on a new track offering for example an alternative to dragracing on the street. >> we're basically just giving them what they want. they have needs. they want to go somewhere to drive fast. and the cars are so little. >> a property developer accelerates into a more asset light licensing model. their franchising racetracks and auto clubs nationwide. seven are already built with more on the drawing board. >> with so many cars being sold in china with the young kids as you can see today and they spend money buying cars. they spend money on the track, on girls. >> but not all girls are along for the ride. world estimates she has spent upwards of 30,000 u.s. dollars on gas, tires, tricking out her neon -- nissan skyline. >> here we go. red to have a girl drifter in china. it's pretty school. it's like a big show for everyone. >> never mind s

stephen engle caught up with him. steve, what was on his mind here? stephen: what is on his mind is he has to host about 2000 participants at the rosewood hotel in beijing for the second-annual morgan stanley china summit. we are going to be here all day today and tomorrow, bringing you the highlights. in the last hour, we had an exclusive interview with james gorman. he mentioned the first quarter, where the return on equity was not up to their target, but he said he was quite pleased with the quarter. he said markets were trying to return -- starting to return to a more normal environment following the weakness in january and february. as far as brexit, he said that if it was his guest, he said that britain would not exit. he said the british have "uncommon common sense." the backdrop is what the fed might or might not do on june 14 and 16th. he said he is not sure whether they will hike rates, but said the negative interest rate environment in europe and japan will not necessarily affect the fed's decision. on china, he said there will be bumps alon

stephen engle's is here now with more. was lookingryone for stability and we've got it, sort of.t rose 4.4 percent. that is the second month in a row where it rose in you on -- rose in yuan terms. but a weaker currency helps exports in china be more competitive a broad but they are not really banking on a big boost against getting the economy out of the mud. the economy still faces great downward pressure. domestic demand continues to be weak and imports fell for an 18th consecutive month. the yuan was lower by nearly 11% in dollar terms. it has been down 11 out of the past 16 months in the last year. meanwhile, china's foreign exchange reserves posted their first back-to-back monthly gains in nearly two years. through half arn billion of its dollars after the surprise valuation last august. china's world leading pile of fx trillion,ose to $3.22 but the fed holding off at raising rates stem the outflow and again, they reiterated it wants to keep the yuan stable. ang? back to theet's get summit in hong kong. it is time now to buy into emerging markets. yvonne? yeah,: hi, there, an

other end of the spectrum, there's no doubt you will see curves inverting in the developed world, stephen englee emerging markets world. in the emerging markets world. we hope not to see that. as i said, the fundamental issue is actually not the fed. the fed doesn't help if rates go up. the fundamental issue is growth, leverage. that is an issue that we had never dealt with even through the rally this year. francine: i've heard that a lot, that we may be too obsessed with the fed's next move. thank you, bhanu baweja. next, we have an exclusive interview with the lvmh group. he tells us why he's opening the doors to the public. ♪ francine: lvmh is the world's biggest luxury brand. in $39 billioned in sales. it is france's fourth biggest company. the fashion empire is run by the ceo. his eldest son is 38 years old. he heads up two of the brands. behind the launch of the lvmh open days, which begins today. more than 50 of the group's workshop sites across europe opened to the public. caroline connan sat down for an interview on the origin of the idea, the future of the company, and the luxury indu

stephen engle: alibaba in the last six months is down 3.7%. it is up 33 percent since february.e have one quote from the chief executive from one of the exchange traded fought -- funds. who said u.s. investors are a low chinese adrs valuation because of the china risk. would be full inclusion hopefully a global investors will be able to buy them as part of their mandate. that is the hope. another question in june, which mayns tomorrow, the msci include a shares. the mainland authorities have been trying to do to restore confidence in those because of the turmoil and trading halt, because of all of the missteps. they are limiting the ability for chinese companies to halt their stock for reasons that are undocumented. relaxedfebruary they some restrictions on foreign funds investing in the mainland. angie: takata has ruled out bankruptcy as a way of reducing their exposure to liability from their worldwide airbag recall. sources tell us the company is seeing buyers take a controlling stake. it is understood and advisor will meet financial firms in manufacturers finding a suitable

joining me is stephen engle of bloomberg news. and said he has a lot of faith in the chinese economy. what will you be watching when it comes to alibaba's numbers? stephen: we will be looking at a number of different things. you are right. this company, at least the stock has been the unloved giant on wall street because the shares have lost about one third of their value since that peak of just under 120 u.s. dollars a ipo infter its big september of 2014. they have doubled their profits in a year. they had revenue growth of at least one of the 20% a year. they are loved and the stock is trading at about $75 right now. what we are at before the bell is a number of things. the investors want better revenue growth. before the ipo they had revenue growth in the 40%-40 5% range. we are expecting about 33% revenue growth for this current fiscal fourth-quarter. investors want more and more clarity as well on margins. alibaba has been on acquisitions spree. they bought a big stake for southeast asia in e-commerce. they want to see how t

morgan stanley ceo jes staley set down with stephen engle in beijing.e says despite for corner profit falling 53% from the year of their he still feels "really good about the bank's latest results. these were tough markets. the was almost no equity issuance, very little retail activity. there are a lot of things that made the particular set of businesses we have difficult to process. notwithstanding that, we made over $1 billion. three years ago, in that kind of environment, morgan stanley would have lost $1 billion. the model works. the returns were modest, not where we want from but i wasn't troubled by it. maybe i was on my own on this, but i felt pretty good about the fourth -- first quarter because this was a challenging environment, and we produced. in a good environment, there is a lot of upside. stay tuned. forhen: what gives you hope optimism -- a rising ages environment will help you a commodities rebound? -- help you. a commodities rebound? it starts with the business model. we have $70 billion of capital. when i started the job 6.5 years ago

that go to stephen engle. cut up with the chief global economist for s&p global and he said he didn't get some hard from these numbers. stephen: you have seen in the slowing economy, a firming of inflation. chinese officials, they hate and reflation. -- inflation. it is still well below the government target of 3% for the full year but it is at 3.3% for three straight months. coming from a low of 1.3% in october. now at 2.3% for three straight months. commodity prices have come up. the prices have gone up and food prices are up. food was up 7.3%. pork up 7% from a year ago levels. that might even be a concern. the government tapping already into its strategic port reserves to meet demands. there is an inflation. but, on the other side, of the factory gate -- deflation persists for three straight years. 50 months in a row, four years and two months. it is narrowing. i think the commodity price rise has gone up and that has taken a little, increased the cost. deflation persists at the factory floor. anna: we will

that was morgan stanley chairman and ceo james gorman with stephen engle.ting 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 adjusting. if you expect the fed to high can you ex

stephen engle's is taking a closer look at this. it really had a huge impact on adrs. stephen: we heard that the securities regulator in china was perhaps studying a new plan for groups to come in about 47 companies since the beginning of last year had announced plans or are in the works to back to listening back home. they think they can better a better evaluation back home. not only the csrc but also the foreign exchange. the currency regulator. largestinto one of the deals. concern not only for the securities regulator but also the valuations that must be done. they are concerned about outflows. that could put further downward pressure on the chinese currency. that is what they've done in the last week or so. this is a month for the data. this is not just last week alone. by .3 billion u.s. dollars. still concerns about the currency outflows. angie: with the stock prices falling that makes buyout offers even more attractive. is that the companies as well. the people who are buying them out my go with it. to frothy. is exacerbating this froth that the government is wo

joining us now is stephen engle i over at citigroup, the world's biggest currency trader could we arele bit of a dollar rally today, but overall the trend is still lower. why aren't the fed hawks moving the needle? stephen: one issue is that we have not heard from janet yellen since the end of march and we have not heard from stanley fischer since march 7. i think you are waiting to see what the heavy hitters are saying. at dudley's remarks, he qualified them in my mind by saying that he expects gdp to pick up to 2%. he thinkshappens, labor markets will tighten and wages will begin to go up. that is when the fed can start hiking. he do not exactly sound like he was laying out a concrete timetable for hikes. even though he did keep two hikes it was rather tentative. scarlet: all data is not created equally. we talked about aggregate hours worked as a bright spot in the jobs report, but unless we get confirmation from other parts of the economy, it seems like the fed is willing to let the labor market kind of improved gradually without doing too much about it. steven: i think that has b

stephen engle is is looking at the latest index.revious it indicates easing has worked into the chinese economy. property and construction has recovered on a surgeon credit. the cmi stated above 50 for the second consecutive month in april after seven months in a row below 50. april's reading, we can say the economy may have stabilized are oftenrch numbers distorted because of the lunar holiday when many factories are close in february and the negative assertive orders for march -- april stall stability but new exports and imports dropped and employment showed factories continue to cut workers so there are some storm clouds on the horizon. pmi alsonmanufacturing showed continued positive conditions heard it slid slightly from march. at 53 point five, it still shows optimism. the stabilized readings eased the urgency to add monetary stimulants which risked fueling housing prices are further flooding cheap credit into sectors of the economy with overcapacity traditional industries like steel and coal. thateconomists say monetary polic

stephen engle is taking a closer look. what is going on? the beginning of last year, we had , u.s.han 47 companies listed companies that are chinese, that want to be bought elisted in the u.s., then back door listed in shanghai. the thinking is they can get a better valuation at home. there are a couple of snags. there is concerned -- concerns raised by the security regulator that some of the valuations paid at least two thirds of the 47 deals, that they are still pending and the valuations are still high. that is a concern by the they came because back, relisted in china at too cause valuation, that can volatility. there is also concern that the currency regulator is studying the deals, including the largest of the $9.3 billion buyout of the internet and antivirus company listed in the u.s. that deal is pending. they are concerned about the outflows these purchases are going to exacerbate and further exacerbate the yuan. these regulatory bodies adding some concern in the markets when the deals can actually go through. about $5 billion wort

we have stephen engle in beijing with more. influential former central-bank advisor, he's now a research fellow. which is an advisory body to the chinese government. what he says is quite influential. a typical,ating tried and true response that he and that hasused been more money on bridges, roads, railways, airports. miss any, china may historical opportunity to his words, if it does not increase spending on infrastructure now. it wouldes not think be undermining the risk in this economy. he says the timing is right because the global economic downturn for one. he also says falling commodity prices. low interest rates in the west. .vercapacity in china now is the time to spend more on infrastructure. critics obviously would argue that this would exacerbate the we saw following their response to the last crisis in 2008 when the global financial crisis out broke. yuanhad that 4 trillion package. muddy credit binge with the right thing to do back in 2009 because china avoided a hard landing. he says do it again. angie? angie: al

stephen engle for us.er of high-speed trains is planning a private share sale. to repay use the money debt and help daily operations. ccrc was formed last year when beijing merged to train makers. employees and hopes to double oversee sales to $15 billion by the end of the decade. china's stock exchange introduces new rules to restrict trading halts and increased chances of inclusion. of the down about half stock markets during last year's $5 trillion selloff. earlier this year, said inclusion would defend on changes being implemented. missed due to falling supply and prices. as it million net income produced a record amount in the corridor. ondid cut out inventories. tata steel has shortlisted for bidders for its u.k. assess. -- assets. the company is looking to sell its high energy costs, efficient production, and a china fueled global glut keeps prices down. they are committed to offloading assets, but may retain some of its mills. 15,000 jobs in the u.k. are at risk. the fed boss janet yellen has throw