clue. discussing how to expand the search. we are expecting a live news conference any moment now. saving goodbye to the bailout. eu program.ts the onlineting the vine appeared of tasmania's plans to upload real-time data. markets forhing the all of you as we take up the new trading week. no risk monday. ukrainedevelopments in showing the situation is getting worse. seeing really weak interest getting into stocks. looking at gold, the yen, some of the sovereigns across the reason.
data this morning really disappointing imperative in australia, for example, building approvals unexpectedly dropping. what we have overall, stocks declining, bolling's quiet low web holidays in japan, south korea and thailand not helping. >> the violence in ukraine continues. the government in kiev admitting there is essentially now a civil war going on in the country. how big a risk is this for the west?
nato membership. >> that is something that really annoyed moscow. >> that is probably the root of a big part of this. they don't want to see ukraine be in nato right on their border. too so far hasn't been able do anything besides mention some strong words but there is no action. a hundred miles away from her mania. suddenly, we are back to the baltics and old europe. >> it is almost like russia is trying to project itself because they felt so hard done by the end of the cold war. suddenly, they were the pariah state and the loser in that on select. -- that conflict.
ratings are going through the roof even though the economics are suffering. putin is concerned. how long he can maintain the level of support if the economy continues to go down the tubes, we will see. >> thank you for that. we did have breaking data out of china. let's have a look at it. >> the economic data coming out of china this morning moved markets in the asia-pacific essentially showing the risk of a deeper slowdown. for those april figures for manufacturing? they present somewhat of a concerning point in terms of manufacturing going ahead.
as you said, it signals the risk of a deeper slowdown. the index came in at 48.1 in april. our survey of economists here at the bloomberg looked for a reading of 48.4. anything under 50 indicates contraction in manufacturing. anything above 50 indicates expansion. this is the fourth month of contraction for the manufacturing index in china. it is consistent with the fact that the economy is in the midst of a slowdown. some of the markets are speculating that we may see additional spending packages. there is talk of another reserve ratio cuts by the central bank. bank. that at rural
almost all the chinese provinces pulled for this number failed to meet their targets for the first quarter. thisesting to see how feeds into the official gdp number which we will be getting later on. >> this week is going to have other pieces of eight as well from china. trade, also inflation as well. >> key trade figures, thursday and they are likely to indicate continued weakness in export out of china. the number continues to decline. in march, we sigh surprised the klein in the order of 6.6% for exports. 3.5% declineure, in chinese exports for april. figure we will be getting is consumer prices. consumer and producer prices
come in fact. --, in fact. forecast to post a continued to post a continued decline, 1.8%. ist is the price that charged at the factory gate, an indicator of the weakness in the manufacturing or as well. >> thank you for that. [indiscernible] the governor has become much more cautious in its approach to the economy. realized solving the problem with the same way before is not working. now going to do big stimulus. we are going to fine tune.
that is a quite cautious approach. >> one of the pressing issues china needs to address his local government that. debt.government >> this is a very big timebomb. they need to take action quickly . i do think that we might have , a possiblelt times hiccup in the coming two years. industry avoiding the slowdown in china is aviation. the slowdown in china is 7.5% growth, which is really good for anyone's measure except for maybe china's. the aviation market is still
the month of may, let's see how the markets are treating in the asia-pacific. >> it is not a very pretty session. not aanghai composite is pretty start to the week. just about losses across the board for the shanghai composite. it has not really gone anywhere. i think the support level right now -- let me get to those levels at this point for your. 19 50pport level is about which does not say a lot. selloff today more pronounced here in hong kong. down over 300. roughly 150 points -- 350 points, if i'm not mistaken. we have a holiday coming up
tomorrow. 1%.ong kong, down about banks, insurance plays, airlines, cement. currencies.t the currency near the lowest and. -- lowest end. that was october 2012. morgan stanley weighing in on the issue and they are advising their clients go along dollar gainst the offshore nimb rinimbe. let's get more from our
regional chief investment officer. >> he is a trooper this morning. >> we had david talking about the situation with the latest pmi reading. on top of that, the previous month being revised down. you can see an improving trend but it is not certain to be read like that. >> the chinese economy is struggling. i think that is for sure. you can look at a number of areas. manufacturing space has overcapacity. the most concern part is the real estate sector which has been a major driver for the chinese economy. but if you look at what is it seems to china,
be coming in reverse. ,> we have some breaking news to the australian capital. we have the men who has been leading part of this. just on the malaysian side, this is about the search for flight 370, nearly a month since it disappeared off the radar. the coordinator from our joint coordinating committee. have been five vice ministers participating in this meeting along with a number of officials as we have sought to issues associated with this search. as you all know, malaysia airlines flight mh 370, a boeing 777, disappeared on the eighth flight from4 on a
kuala lumpur to beijing. there were 239 people on board. the search for this aircraft has been one of the most difficult ever undertaken anywhere in the world in a very remote location in difficult conditions. the international efforts of so many countries have together a massive search effort. has the flag of the the -- craft, is the however, the aircraft is thought to have been lost in australia's search-and-rescue zone so we have been leading in the search operation. particularly for the past 41 of the 53 days since the mh 370
went missing, australia has had this responsibility to lead the global effort. 4,000,600 38,370 square kilometers of ocean have been searched. effort.een a giant 334 search flights have been did -- have been conducted. there have been 10 civilian aircraft and 19 military psrcraft and 14 shi engaged. unfortunately, all of that effort has found nothing. we have been confident on the basis of information provided that the search area was the right one. -- thatpractice confidence has not been
converted into us discovering any trace of the aircraft. ministers at our meeting today were very appreciative of the efforts of so many nations around the globe who have assisted in this search. we have committed ourselves to an ongoing continuous effort. but the operation must now enter a new phase and will be focused on intensifying the ocean floor search over a much larger area. process of phases will concurrently as we move into this new stage. meetings will commence on wednesday in camera with international experts to analyze all the data and the information that has been collected so far and that is likely to help us identify the path of mh 370.
together with all of the data that has been accumulated during the search itself. other meetings will look at the same time as to what assets might be required and are viable for the next stage of the search. one of the key elements of the next stage will be to undertake more detailed oceanographic mapping of the search area. much of this area has never been mapped. it will require significant effort for us to understand the ocean floor in that area. -- to started that surveying this prospective search area over the next four to six weeks. we know that the water is very deep. for the next stage involving and other autonomous
a verys potentially great depths, we need to have an understanding of the ocean floor to be able to undertake that kind of search effectively and safely. few capabilities that will be needed for the next stage of the search of the seafloor and the debris shall yield -- the a mix ofeld is andhetic temperature sonar underwater sonar vehicles. -- autonomous underwater vehicles. when we are preparing for the new phase, a dedicated team of vessels from australia, malaysia, and china will continue maritime operations to maintain continuity and
momentum. the australian air force, a.p. three, will also be available to follow up any leads. the ocean shield has come to port for repositioning and for servicing and software upgrades for the bluefin 21 autonomous vehicle. the u.s. navy has charted the bluefin or another month. it will return to the search areaand searched a wider to further extend the search activities. the bluefin 21 has already covered 400 square kilometers. in this new phase of the search, it will take it a little wider. the key element of the next stage will involve a deep ocean search with specialist equipment and there will be meetings starting this week involving our
international partners to look at where this equipment might be available and how it can be included in the search effort. it is possible that some of it may be owned by navies or governments around the world but it is likely that the majority will have to be provided from the private sector air. -- avid sector. -- private sector. finally, can i mentioned that it is our intention to move the joint coordinator from perth to cambridge. to bring the high level representatives of malaysia and china and other countries who are interested in the search. the base of the operations will still be from perth.
can i thank the west australian government for their hospitality for this center, for making the center available, and then for providing the support that has been necessary so we have been able to run a search involving many countries in the most efficient way possible. to i might ask my colleagues say a couple of words and then we will take questions. >> thank you deputy prime minister. i concur and confirm the trilateral discussions this morning went very well. it is very important that we have this meeting at a very important juncture in our search for mh 370. the fact that australia, malaysia and china have got
together with a very strong threetion from the nations to discuss and chart the way forward is testimony of the commitment in what we have promised to the families especially that the search will go one. i take this opportunity to thank on behalf of the male asian government and the malaysian people and the passengers of up mh 370 the australian effortsies in all the that australia has shown in conducting the search. i also would like to take the opportunity to thank china, especially in our dealings and engagements with the families in beijing. ,s we move on to the new phase what was discussed to this morning is very structured, very focused.
i believe that we are on the right track. meeting carries a sense of urgency. between theard three nations especially gives an opportunity for other nations , institutes, research institutes and third parties to come on board this unprecedented search. what we have decided today i believe is very important because we are now moving to a new phase. but it also gives an opportunity for those who were not involved with us in the early phase and on thiso come on board particular exercise which needs to be done. >> he has been on the forefront
of the malaysian attempts as the acting transport minister. what is happening so far. mh 370, there has been no sign of it since he disappeared nearly two months ago. to coordination is moving the aussie capital. >> the ongoing headlines from that conference as we get them. we are coming down to the opening sessions in mumbai. futures currently trading something like this. we will go live there when they are trading again. stay with us.
indicating that we are in contractionary mode, essentially showing you that all the data is in slowdown. >> we are watching a lot of the iron ore players in australia. different readouts coming from hsbc. we had a nsaid coming out with their price for cash -- we had a anz coming out with their price for cash. don't see it likely that prices will fall below 100. prices to bet $115-$150 region of
u.s. knowing the big question -- the big question is whether the big steel mills in china will get the financing they need for resources and rom until euros -- and raw materials from australia. we see money going into gold. that is pushing up a lot of these gold-mining stocks. very sharp gains. 1.5% on friday. exiting the eu
program. portugal is now in a strong position. confidence of financial markets has returned. portugal returned to financing itself in an impressive manner. >> they're talking about the bond price. >> looking at the 10-year yield now at about 3.6%. a dramatic difference. that is a good vote of confidence. a $108 billionad a lot from the eu. may 17. due to end
the money is not required anymore. safety crucial here is a net for finance. they don't want a precautionary credit line either. that is a bit of a surprise. a message to send out, showing even more conviction. should they want another safety net, if they did that, they would have to return to the table once again. >> they would have to return to the bond market. >> just as we have seen spain. >> that's right. auction, theyd raised 750 million euros through bonds. here is the portuguese prime minister now talking about how they are pleased obviously. we have financial reserves
for one year which can isolate us from any external fluctuation. investors'trust. we have external surplus, something which did not happen in decades. and we will continue with the budget because that is the will of a government and its supporting parliamentary majority. >> there is one area that still has to give a vote of confidence. >> they are not impressed at the moment. what isld have seen happening in the bond market anyway. there are alarm bells if you look at the stats in the economy. >> jobs and debt.
at 17%.ment was jobless, 35%. that level is a concern. debt to gdp, that level was at 93%. it has risen dangerously to that level. gross debt is $300 billion. a lot of that still to pay off. that ratio is pretty scary. there are many things to be addressed. respected authorities have given this a lot of praise. >> let's take a look at the top corporate headlines.
another drink merger may be underway. buyroador looking to whyte & mackay. another chinese state-owned raise $2.6king to billion in an ipo in shanghai. the money will go to projects in the eastern and southern parts of the country. siemens is said to be close to selling its majestic's in -- its logistics and airport solutions. siemens may announce the sale as early as this week. >> record loss of shares in
tiger air. a look at how bad this tiger story is. i think shares were down 8% at one point, right? now. much as 9% it is not looking good for tiger air at the moment. currently down about 9% -- 7%. 10 out of 11 analysts say sell the stock and that is weighing on tiger air. tiger air had such a turbulent time. it had three straight years of losses, pretty painful for the airline. as a result, it is taking measures. grounding 15% of its planes by the end of march next year. means clipping about eight
planes, 44 international operations. stoppinglking about flights to lumbar, services to macau. there has been intense competition in the budget airline space. just too many players, too little demand to fill the seats. so tiger air has had to take to make sure it returns to profitability. little demand, you say, that is something we were talking about earlier. enough homelarge market for this company. >> you are right. yous not big enough when compare it to indonesia or malaysia where the population of whereas malaysia
has 26 million. tiger air has gone overseas to tap the market over there but it has not been working out as well. it has benches in australia and indonesia, but it has not been successful. that has already sold about 40% of its stake in tiger air philippines. -- itnow re-ascent seeing is now reassessing its share of tiger air mandala. it is trying to take measures to address that. thanks a lot for that. check the stories making headlines around the world. the korean president visiting the families of the victims of the down fairy.
do most of the victims werewned ferr fromy. a single school. killed aftere been passenger train derailed south of mumbai. ofice expect to the number victims to rise. it is not known what caused the accident. on the sports front, 5000 runners have taken part in a race up asia's holliston no thing. -- asia's tallest building. competitors faced 2046 steps to finish line. >> china's slowdown, the crisis
president putin claims many are calling for help. edessa the third biggest city, but did the port would be -- but the port would be a game changer. >> a losing strategy for investors. the international investors looking at whether the oil price has gone up. they probably don't care too much, honestly speaking. situation isn't going to evolve into a war with nato and russia. the riskncerned that could be escalating, but right now we are not expecting a
war between russia and nato. that would have been a step too far for vladimir putin. >> they were on track to join nato. that got reversed with the last presidential election when you had a pro-russian president and prime minister coming in. the relationship between nato and ukraine had been growing and now nato is seeming hapless in the sense that they do not know how to respond to this. neither does the u.s. you mentioned portugal. it has been in europe for a long time. finally, you have good news coming out of europe and it is completely overshadowed by ukraine. unemployment rates are staggeringly high particularly in southern europe, but finally the story has gone from crisis to recovery and yet they
are in crisis once again. >> seems the pmi has inched up and also inflation. less chance to the ecb -- >> as recently as a month ago, suggesting -- >> if inflation is not a concern, why would the ecb need to react to my right -- react, right? >> they wanted to continue the same tradition and the germans would not have gotten involved. the united states, if we look at the payroll numbers, the wage pressure is still very moderate.
we see some potential inflation pick up. still, the wage is [indiscernible] this is a so-called ideal situation. improving while inflation is lacking. >> let's look at the bottom line. gdp, gross debt. these figures are the facts. say it is recovery or better confidence? any knock on the markets could just -- >> we were talking six months ago and we mentioned the 10-year portuguese was .6%,
would you have laughed that may? >> -- laughed at me? at themember feeling time that the reaction was overstated on the negative side. any excuse for a little bad news and markets would -- >> with people sitting here saying the euro is dead. give it six months. >> the there was a shift. any trickled good news was blown out of proportion. a quarter ofg at europe out of work. it was really depressing. grim. really, really particularly a country like spain that had been a poster child for getting the euro right and it turned out it was all a bubble, oliver ours -- all a
barrage. -- all a mirage. >> you are currently overweight. >> because of the incremental sequential improvement, debt to ratio has not reduced by an inch. the european country does not need to borrow money. they are on their own feet. we like to give them time. >> as long as people by their bonds. >> the yield coming down. confidence it is stabilizing at best. we are looking at incremental changes. >> i want to bring it back to
the asia-pacific. india and indonesia are going through these elections. when you go through a change in leadership, there is a lot of optimism. but underneath the veneer, these two countries are very challenged. which one do you think will come out stronger after these elections? >> of countries have a chance to improve. both leaders are very appealing. eventually, it is down to the execution, how you are going to push through your reforms. pledged to cut down the subsidies to make the financial market more solid. -- i would say probably starting to open the country and willing to see more --
much everything in tasmania, starting with food as well as drink. beautiful vineyard looks like the perfect escape. look closer among the leaves though. these vines are online toy 47. .ostly, they -- online 24/7 mostly, they talk about the weather. down throughy these cables, if you look into the soil, we've actually got cables going into the soil. we are measuring soil moisture and temperature. >> the data is transmitted back to the winery and then 200 kilometer south to the university of tasmania which develops the technology. developed to -- an app is being developed for
the next vintage. >> if you have live data when you are walking through and you can say, ok, the subsoil moisture is below par, then you can react instantly, gets a mere addition on their. >> installing sensors is just the start. if real-time data can be uploaded from grapevines, why stop here? why not an entire city or the entire state of tasmania? that is the next up. >> we can lift the data we can for the whole economy. retail,ic movement, fuel prices, everything to create an economy wide internet of things. even heart rate monitors have been developed for the shellfish. we count heavily on avenue a