Hans Goetti, CIO of Asia Pacific at LGT Capital Management tells CNBC's Maura Fogarty & Rebecca Meehan why Asian central banks are likely to tolerate higher inflation a little longer than they normally would.

The top headlines this hour, with CNBC's Adam Bakhtiar.

China's April CPI rose 8.5% on year. Peter Redward, head of rates research for emerging Asia at Barclays Capital deciphers the data and what the PBoC might do to ease inflationary concerns, with CNBC's Maura Fogarty.

As oil prices have cracked a new record above the $126 mark, Angus Geddes, chief executive, Fat Prophets Funds Management is expecting a correction. But he tells CNBC's Amanda Drury & guest host Mark Matthews, Merrill Lynch that prices could continue to rise in the longterm.

Westpac Banking said it is in merger talks with smaller rival St. George Bank. Peter Morgan, client dvisor, Tolhurst gives his immediate reaction to the breaking news, with CNBC's Jeffrey James.