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tv   First Up With Angie Lau  Bloomberg  November 22, 2015 6:00pm-9:01pm EST

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beat drumead, leaders for new economic union besides missing targets for integration. brussels on high alert as prime minister warns of major and imminent terrorist attack. how low can oil go? venezuela says $20. i'm angie lau. let's check in on markets in the
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region. right now, monday morning, first trading day of the week and asia. the austrian dollar is weakening. also counting down to the open in korea and no trading in japan today, by the way, because of labor thanksgiving day. nations have outlined a new plan for economic integration over the last decade. at the meeting in kuala lumpur over the weekend. rosalind chin is here with more on what the leaders have to say. >> they have been trying to put
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together this community since 2007. essentially, they're trying to move towards the eu type agreement where they are freed movement of investments and capital around the area, but without the single currency that the eu has. that hasn't been achieved. the deadline was to achieve all of this by the end of this year and at this meeting they are saying they are going to move the deadline to next year because they haven't been able to implement all the items that need to be done. 79 .5% of of october, the measures needed have been implemented. prioritize meant, 92.7, has been implemented. they have known it's been coming all along and have not quite managed to hit this deadline. asian economic community is saying essentially the nations have been too focused on
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themselves rather than looking at the region as a whole. interasian trade, 6% of the total is made up from inter-asian trade compared with 60%, the case in the eu. you can see that they need to increase the amount of trade they're doing with each other to help this economic community flourish. rabobank saying that exports are 67% ofd -- accounts for gdp. countries are exporting more outside the community they are trying to create that to each other. this is an area that needs to be developed further if they want the economic community to succeed. angie: critical is that new trade agreements, right? >> they have not quite succeeded in achieving the aims of the current plan they are trying to achieve. 2025 forging together
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china,and this is the -- japan, south korea, australia, and new zealand. a kind of competes with the u.s. transpacific partnership. angie: thanks for that, rosalind chin. let's check other headlines. the san francisco fed happens -- fed president has reinforced the view that there will be a rate hike next month. on williams sees a quote, a strong pace for december left off. also the importance of the fed not being locked into a stringent path of rate increases, following the initial move. speculation growing that japan is preparing to widen its stimulus program. the newspaper says the plan will include raising the minimum wage, more support for low income pensioners, and moved to
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reduce costs for energy efficiency -- efficient homes. prime minister shinzo abe a laid out three new themes in september, a strong economy, childcare support, and social security. saudi arabia and stocks rose to the highest. the oil minister said opec is working to stabilize the market. assets fell to a three-year low in september. the country produced more than 10 million barrels of oil over the last eight months. and venezuela is warning oil prices may slide to about $20 a barrel, if opec does not take action. it's urging the cartel to reverse the slump and set an equilibrium price of $88. saudi arabia and qatar are continuing the proposal as the its meetinget at
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next week. crude prices have tumbled nearly 50% over the past year as opec members exceeded a production ceiling to defend market share. belgium remains on high alert today amid mornings -- warnings of an imminent terror attack. heidi london share with the latest on this. brussels is on high alert. >> that's right. this is having business-economic ramifications which the prime minister and his administration have recognized. until the rest of monday, the government has said they are a session -- assessing the situation. later on today europe reopens. the belgian minister said he
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attacked -- eases backs and attack similar to the attack carried out in paris, multiple people who launch offensives at the same time across multiple locations. a very fraught situation. he calls it very serious, saying an imminent attack. and public, transport have been identified as the main targets. eu and nato institutions remain open. being the factor capital for the european union. themanhunt is still on for only one of the paris attackers known to have survived. because thesting government has said they are hunting for more than one person and his terrorist threat is tied to a broader network than just one person.
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>> russia apparently putting blame on the u.s. >> just as we see russia sort of returning to the international forum in terms of becoming an we've had comments reported from interfax and the he met prime minister -- with obama over the weekend, at the east asia summit, and he says that irresponsible u.s. political tactics and policies have in part been responsible for this, because that has helped islamic state gain influence across the region. he points out, including the u.s., instead of joining there, he saids the u.s. contributed to the strengthening of al qaeda which led to september 11. parcel this is part and of u.s. foreign-policy and what
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it's been responsible for, for the environment it has created. obama has said that russia needs to make a choice, because they cannot continue backing the syrian regime and want to be part of this coalition to fight i.s. he put it down that a decision hasn't been made, a choice hasn't been made, and ultimately russia will have to make a choice, whether it wants to be part of this broader fight against islamic state and give up backing the assad regime -- regime. angie: get more on that and bloombergp stories, business bringing together the best of bloomberg news business week, bloomberg television. also on bloomberg.com, goldman on emerging bullish markets, how strategist are saying developing nation assets are bottoming out. tesla's massive recall, the company has called back all 90,000 model s cars to check their seatbelts. that is bloomberg.com/asia.
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the share sales back on menu in china after a five-month moratorium. regulators have given the ok in a move that signals the stock longer need no official help to maintain stability -- may no longer need official help to maintain stability. >> not completely without official support. they are still regulating pricing. if you price a little bit higher, then you risk getting unwanted attention. overallns at least the option of going to the equity markets and raising cash is now open. the only choice that companies had was going to the debt market , or a cash-rich uncle. csrwe do understand is the has restarted the process. these 10 companies were already given approval before they halted this ipo process back in
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july. it's easy to understand why investors are very excited about this, if you could get an allocation. on average, we've had over 190 ipo's year to date before they stopped in july. on average, that returned over 450%. for the only good companies, it gets people excited again, if they can oarticipate in this ippo process. angie: another extraordinary measure being lifted, ipo allocations -- what is this? >> it was part of what they did. there was a time when we were talking about order, 10 companies hitting the markets next week. a huge amount of cash was sidelined because investors had to set aside money if they wanted to participate or at least get a chance a grabbing a chunk or a small piece of the pie for the ipo.
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we are looking at the last 28 companies that fall under this role, asonline lottery some people would call it. to give you an example of how gets a chunk of money sidelined, so for this last 28 companies were looking at over 500 billion u.s. dollars expected to get sidelined. after that, it's free for all. the drawback or the side effect is that the chance of you rom almost ipo f nothing to almost nothing, becomes a free for all and everyone can start again bidding to be part of it. the reforms that we are seeing coming out of china. thank you so much for that. coming up next, we are getting the outlook for foreign exchange markets. "first up" back in two. ♪
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angie: the search resumes today for as many as 200 people still unaccounted for after a landslide in myanmar. a disaster happened at a jade mine in northern catch and state and at least 100 people are known to have died. the mine has some of the highest quality jade in the world an billion --30 generated an estimated $30 billion last year alone. beijing has dismissed claims it is militarizing the south china sea, saying it is building on disputed reefs and islands to protect them. aseanriefing at the summit in kuala lumpur, they were told that china has to create facilities there as the area is so far from the mainland. china's reformation work has that carryislands trade. present obama said international law must be followed.
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the argentinian opposition leader is said to be on course to win the presidential election. zachary consistently led pre-vote surveys. three leading polls give him the win. the new president takes on december 10 and will succeed cristina kirchner, who took over from her late husband. in 2007 -- husband in 2007. now, a look at some of the key events for investors. >> the week ahead on wall street will be a holiday shortened week with the markets closed on thursday in observance of the thanksgiving day holiday. the first part of the week will bring a fresh round of economic data including sales of previously owned homes which slowed in october from the prior month, while purchases of new homes likely climbed according to economists at bloomberg and
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it presents somewhat of a mixed picture on the housing front. a separate report likely shows the u.s. economy or gdp move at a faster pace than initially estimated in the third quarter. we will get the latest read on consumer confidence, which is expected to have rebounded in november after falling to a three month low in october. we are getting into the tail end of earning seasons. among the final company set to report our campbell soup and dollar trade. will get the first major indication of consumer strength, as we go into the holiday shopping season. u.s. retailers online and brick-and-mortar will be kicking off the holiday shopping with black friday sales and events. in new york, i'm su keenan, bloomberg. angie: asian investors did a little shopping here last week. asian stocks posted their biggest weekly event since early october at friday's let's look ahead at what might be moving
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the markets in this region, this week joining us from sydney is the head of global markets research. very good to see you. what is on your highlights this week as to what is going to drive the market? markets will be driven by expectations about the key coming events, the ecb next week and payrolls next week. anything that informs about that , it's likely to be quite important, which means the pmi numbers tonight out of europe are likely to be the first cap off the ranks. angie: we are seeing a lot of movement in emerging markets as the response to the possibility mariob's -- that ecb's draghi will add two new stimulus -- to new stimulus. move.otential fed rate
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>> we don't think doj will move. the ecb move is largely priced. draghi seems to have achieved his objective, to get the euro down. it was 115 when he spoke about the potential for further easing . i think he will be happy about that, it will be hard for him next week to exceed expectations. means world markets will be nervous ahead of that. we've kind of got one eye on the fed is well and they're going in the opposite direction. angie: as you through in as well, boj in that makes and we know the governor likes to surprise the markets. you think he's going to do that by the end of this year? >> i don't think so. as an investor i would be thinking about this -- december , probably the end of the
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major easing cycle from the major central banks. the ecb will deliver something next month, that seems clear. i suspect that will be there last easing. while it is likely there will be some time away -- thee: where do you think yen is going to go, especially after shinzo abe says that in terms of policy response, he's going to try to create more initiative to stoke the economy? 120, and that and sounds kind of boring because that's where it's been, that range will break to the downside. even if the bank of japan eases, i expect it will be ecb-like rather than something new and radical. that means we're largely at the end of the easing cycle in japan
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and the yen on traditional metrics is extremely cheap. labor market data is likely to show the strongest labor market this week effectively since the bubble period around 1990. that is consistent with a stronger year. angie: richard, always good to talk to you. coming up next, always en vogue, the fashion editor sometimes called [indiscernible] years asus about 10 the face of modern china. ♪
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angie: the fashion editor was loosely fictionalized in the movie "the devil wears prada." of followers of social media and is credited with almost single-handedly creating today's high-end chinese fashion scene. stephen engle met her for a behind-the-scenes look at the magazine which has just celebrated its 10th anniversary. ♪ womenn: only the "it" with beauty and brains,
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confidence and influence, grace the covers of "vogue china." face each month of an expanding multimedia empire with a monthly readership of at least 1.2 million. that is just for the print edition alone. the editor in chief, angelica, is the one who has to find just the right look. how much is it your choice, 100%? are you judge and jury? agelica: no, this is not democracy. imd editor. i decide. stephen: the last 10 years has propelled her to the pinnacle of china's fashion pyramid, drawing comparisons to the fictitious maranda priestly or her u.s. counterpart at vote, and a winter. -- anna winter. angelica: we travel nonstop and we have meetings nonstop. we don't --. there's no time to --. stephen: that she says is the
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modern chinese woman reflected in her magazine. angelica: look at the media, there is so much going on that makes you feel, is there a point to live. my magazine makes the feel that despite all this, you need to have a positive attitude on life that can take you through all these problems and challenges. stephen: so it's not just a celebration of materialism. angelica: no. it is about the woman, a positive, loving, brave woman who happens to know how to dress nicely. obviously you feel that you are working on something that is right, and at the same time making a lot of money for the company. stephen: while traditional print media suffers elsewhere, vogue china has to turn away advertisers.
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the magazine is 432 pages thick. angelica: is nothing now out of china to be good, and to be respected, as well as being big, now should be all of our ambition. stephen: and it was back to work to find the next big face of modern china. stephen engle, bloomberg, beijing. angie: hard work to live that glamorously. coming up next, under pressure. coming up next, under pressure. look
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angie: it is 10:30 in sydney. sweltering weekend, 40 degrees celsius. tells me itroducer is 22 degrees right now before noon. looks gorgeous there. we are 30 minutes away from the open of trading in south korea. you're watching "first up." ♪ top stories this hour,
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the group says it will end to meet those goals next year instead. it wants to encourage trade across the block by creating a single market. has kept the terror threat in brussels at its highest level with schools, universities, and the entire metro network close today. the prime minister said there was evidence of an imminent attack similar to the one in paris 10 days ago. sincem has been on alert it was learned that the paris gang had links to brussels. saudi arabia and stocks rose to their highest in four weeks after riyadh said opec is working to stabilize the oil market. venezuela has warned crude may slide, $20 a barrel.
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the cartel -- barrel if the cartel does not take action soon. saudi arabia and qatar are considering the proposal ahead of the opec meeting next week. to australia we go, australian equities are down 1/10 of 1%. we also see a weaker australian dollar. in new zealand, we saw gains their and in fact we are seeing an extension of those gains, new zealand dollar spots. this ahead of ecb decision fed rates, possibly action from the boj. although central banks, what are they going to do? we are going to the korea open. there is no trading in japan for labor thanksgiving day. new rules aimed at ensuring a more orderly market will come into effect on china's main
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verses today. we have officials doubling the margin requirement for buying stocks, and 50, 2 100% following the recent rebound in equities. what does this all mean? some market reaction already. >> i think investors will be hoping this has already been priced in. these new rules came into effect after the close on friday the 13th, the first time investors had a chance to react to this was last monday and of course on that day investors were also responding to the paris attacks that happened late friday our time as well. what this rule means is if you have 1,000,001 in your margin lending account, you will only be able to borrow another one million. previously you could borrow up to. million. -- to 2 where you will see the weakness is coming from the broker. if you look at how the market reacted last monday, it's the
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first time we've had this reaction. scurities -- securities had a big chop there. over the course of the week they managed to rebound and all of them except for orient rose for the week. i guess hopefullyhave sn this priced in in terms of reaction. angie: this is not the only policy we're expecting to come through from china. >> a lot of investors hoping we will see more policy measures. now, chinese stocks in new york rose for a seventh week. the bloomberg china u.s. index had a very strong rise. you can see they're a very interesting shot, almost up 5% over the week. investment in new york has told bloomberg, china is not such a disaster. it months -- it was to be seen
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as more of a consumer economy. more of ao be seen as consumer economy. i guess investors are hoping or speculating there might be more policy easing and that will come through and left the markets as well. angie: thanks for all of that. bhp billiton is graded at the highest a level by the three major ratings companies straight it is risking a cut. the slumping prices of oil and iron ore, we have david stringer joining us right now for melbourne. david, there doesn't seem to be and a way out of this as commodities continue to fall. david: good morning, and that's right. the collapse in commodities prices continues, as you top earners,p's we have seen the prices of all of those things tumble through the year, iron ore is down 1/3 in 2015, and that is the company's highest earner.
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what does all of that mean for its credit ratings? they already say they have a negative view on the country's credit rating precisely because of those tumbling prices. isyou mentioned, bhp currently rated at the highest a level by the three major ratings agencies. if we look on the bloomberg terminal and we look at the default risks function, that suggests its creditworthiness is more in line with the highest triple b rating. we're also saying for catherine banks including macquarrie, commonwealth of australia and deutsche bank, they're all expecting some kind of a downgrade to credit rating, probably by one notch. angie: the dividend is also in the news, investors are not happy here. what? is the policy behind payouts -- is the policy behind payouts? david: this is also an issue for
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competitors like rio tinto and fortis skew. in bhp's case, they have progressive policy. the rays or maintain the level of dividend pay. plenty of investors are saying, is that sustainable in a period of lower commodity prices? it is something the company is seeking to balance. they are trying to strike a balance between protecting the credit rating, protecting the balance sheet, and rewarding investors. angie: what is chp saying about all of this? plenty. a month ago they met investors in london for an annual meeting and at that point the chairman suggested the company could take on some short-term debt to continue that progressive dividend policy. the tone appears to have shifted last week, the company met with investors over in perth and australia and a take away from any investors from that, the company was certainly opening the door, is it would not take a decision on its dividend policy
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until february when it reports half-year result, and betting among plenty of investors is there will be a cut. either halt or abandon that policy of increasing dividend payment. angie: david stringer, thank you for that life out of melbourne. time for a look at some of the top corporate stories on the bloomberg terminal. here is heidi lund. there are reports of more jobs on the line at deutsche bank. this is part of an overhaul announced last month. the bank plans to shrink its war forks -- workforce by 9000 over the next three years, set to eliminate 17,000 other positions by closing down some operations around the world. freight shipping companies say there are exclusive talks. this is a deal that would consolidate more than 10% of the global container market. neptune is owned by singapore
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state company. up $1.2 billion in losses since 2011. they have until december 7 to reach an agreement. to largest deal ever appears be taking one step closer. the boards of pfizer and allergan were expected to sign off on their $150 billion merger over the weekend. they could make an announcement later today. the new company would split into 2, 1 that focuses on new drug development, the other on selling older, more established medication. those are your top corporate headlines this hour. japan's foreign and defense ministers have met their australian counterparts in sydney, part of a bid to win a multimillion dollar contract to build submarines there. rosalind chin for more on this, why this push now? >> they're coming up against this deadline, november 30 is the deadline for the three parties which australia has
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invited to submit their proposals for this contract. this project is actually very enticing because it is the world's biggest defense deal, worth $36 billion. it would mean building submarines frost really and servicing them over their lifetime, which is usually several decades long. this is quite a big amount of money for any defense company to get for a contract. it's interesting because japan only lifted that ban on arms exports less than a couple of years ago. japan itself has no experience selling, exporting submarines overseas trade -- overseas. they are making a big push. japan says it's willing to share all of its technology with australia, which it claims as a key ally of the u.s., and says it's willing to build and
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australia, adding training centers after that. it's offering incentive for australia to pick them. germany, another key contender, has also thought of in the past but has not sold one to the specifications the australians are asking for. germany improved its bidding. exactlya is yet to know how many subs they are going to want. if you just think about what's happening in the region, there are a lot of political sensitivities here and you look and thesean meeting south china sea and all of that. there's implications here. it goes just beyond a business deal, right? >> yes. it was interesting that australia asked to submit a proposal in the first place.
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course, australia and china are big partners in terms of trade. australia possible is trading partner. if this deal does get to japan, it could have huge implications. risks angering china as well because of contention between china and japan and also the south china sea in general and all the different parties who claim parts of the south china sea. rejection with japan could be seen as australia pushing away ties with japan. which ever way they go, there will be some political implications seen or perceived by different parties involved in this as well. say china ise can increasing its activities and also saying there is a need to ensure the rule of law and freedom of navigation. already leading very strongly to china's influence in the south
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china sea and the region. the foreign minister repeating that australia does not take sides. ng it's urging all claimants to the south china sea to settle disputes in line with us -- international laws. easy to say, hard to do. mixing business with politics as well. roslyn, thanks. coming up next, more on the asean meeting. missed deadlines. ♪
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angie: checking other stories headlines, a reporter has been sentenced to an
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unidentified prison term after his conviction last month for spying. the spokesperson for the iran judiciary said it was not final. reporter was arrested in july last year, a qs to passing information to the u.s. government, something that he and his newspaper strongly deny. promised an extra 14.5 million dollars to the search for the missing malaysia airlines flight. premier made the announcement during a meeting in malaysia with australia. australia is coordinating the multinational search off its southwest coast which has already cost $120 million. passengers mh-370 were chinese and beijing has promised to spare no effort to find out what happened. ukraine haves in knocked out power for around 2 million people on the crimean peninsula.
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a state of emergency has been declared an official state could take four days to fully restore supplies. police are investigating the blasts, which happened on friday and saturday print a local official said antique take mines may have been involved. russia annexed crimea from ukraine in march last year. ,ack to one of our top stories today southeast asian leaders have outlined new plans for economic integration over the next decade, after missing targets set for this year. joining us from new york right now is asia economist joseph in calcaterra. for joining us. it was a busy weekend, world leaders converged in kuala lumpur. what was the highlight, the take away that we should take away from all of this? no huge takere was away. most of it was widely expected.
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it was widely assumed a would not meet all of these ambitious targets for regional integration, particularly services liberalization, integration of the financial market and investment as well as the free flow of skilled labor across asean borders. they had outlined the progress in various reports. the take away was that they extended a new blueprint for 2025 and those will be the measures is still have to be perfected to achieve a much better level of economic integration which could have a tangible impact on growth. angie: no doubt. to createit is aimed a community that is politically cohesive, economically integrated, and socially responsible. politically cohesive, what does this mean? we see weakness with the european union because of that
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lack of political unification. that seems to have disabled that experiment there. what about here? what do they mean by politically cohesive? reporter: the overall asean community has several parts. ultimately, you are right to say that there won't be the same political cohesiveness you have seen in the european union. but we don't think that is necessary to see the benefits from economic integration. one thing asean proved in the past is that they can continue with economic integration despite the fact that there might not be complete unity on the political front area -- front. -- do you focus on growth most likely into next year as well, i think that is what policymakers are realizing that is the most urgent task at hand. economiesdoubt asean
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are currently going through a really rough phase here. what are the key challenges for asean? >> it's difficult in the short term because you have mostly external factors to account for the slowdown in growth. and thel, commodities weak external outlook in terms of trade. we are seeing some signs of electronic pickup, but ultimately that will be short-lived. do isolicymakers can focus on fiscal and monetary stimulus where possible, particularly in the case of philippines and indonesia. on the physical side they can wrap up infrastructure spending and have more fiscal measures as well. in certain places, indonesia and thailand, we think the central banks do more to cut rates, depending on external conditions and financial market volatility. there is more to do, but ultimately it is an externally driven issue. angie: at the end of the day, you are trying to combine 600 million lives together and forge
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a cohesive path. though, barriers remain. >> indeed, particularly if you look at the services sector. asean communities are mostly services driven. liberalizing services, and that's quite difficult because there was such an interest, various industry groups that will fight these measures. they really have the double down on the policy effort and their commitment to asean integration. if you can have more investment integration, you can increase financial deepening in economies such as indonesia, philippines, and vietnam, and ultimately that helps growth the builds more inclusive growth, which is better than -- it's more sustainable economic output. angie: joseph and talk terra, thank you for joining us. thanks so much. $4 billionext, the
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spending plan and how they may move the stocks. ♪
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angie: we are taking a look ahead to the open and south korea. our reporters are here to tell us what stocks they're keeping an eye on. >> the pool was a bit smaller today with just korea open. i'm looking at the mk financial. it is technically an oversold territory occluding to bloomberg research because it had a weekly fall of 25% last week. you can see that big drop their. down 23% in one day.
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this is a company that does a number of financial things, asset management, commercial banking. the fact that technicals are really showing that it is way oversold, hoping that we will see an upside today. angie: let's see if the markets prove you write. david, let's go shopping. david: news was out after market close on friday the talks between the department store -- have collapsed. no deal is happening there, citing differences in opinion. obviously, for obvious reasons. usually if that's the case, stocks tend to fall. watching that be one. heidi, what are you watching? >> i'm looking at one of the biggest movers. this is very exciting, launched the world's biggest led display in south korea. does it count as the world's largest?
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pretty cool. this stock has been pretty basic down this year but it surged on friday just after the company billionwould invest $1 into a new screen making display plant. it expects to meet that capacity by 2017. we will see if it can sustain that rally in today's session. angie: limited choices, as julia said. i'm thankful to have a job. angie: before we go, got to tell you about the final installment of "close -- "the hunger games." short of estimates, the smallest debut of any of the four films, based on books by
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suzanne collins. the final one was made into two movies in the hopes of prolonging interest. looking at the next hour of the show, brussels on alert. we will have the
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trade, closer ties. banging the drum for economic integration despite missing targets. brussels on high alert. metro are closed as the prime minister warns of an imminent attack. make me an offer. ipo's are back in china. the government thinks the market is getting stronger. welcome to "first up," live in hong kong. asia get to the markets in
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. australia has been trading for an hour now. sx 200 is down fractionally now. paring back the losses we saw earlier in the day. cents, speculation that the rba won't be cutting anytime soon. in korea, kospi getting underway. this is the view. japan is closed for the markets today. in korea, we are seeing gains. in japan, they are marking its labor-thanksgiving day. no trading there today. alertm remains on high today amid warnings of an imminent terror incident in brussels. no sign of the man sent to let -- leave the attacks on paris. the latest on this, brussels prosecutors have updated us with the latest. what is happening? of searches have
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been conducted across brussels after the 16 people detained and arrested. they point out the subjects of the international manhunt, the one surviving suspect in the paris attacks, salah abdeslam, was not bound or detained. the manhunt continues. no weapons or explosives have been found. scarce details, but that is the latest from brussels. across the city, the alert remains at the highest level, level four. this is how it will stay until the arrest of the suspect. we are expecting updates this afternoon. this means schools, universities, kindergartens, and the entire metro network will remain closed. the prime minister says he expects a similar attack that took place in paris, where they had multiple people at different
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locations throughout the city. he calls this a serious, imminent attack. we had other members of the government saying that this linked to one suspect. there are other people at play here. they expect shops, bars, public transport to be the main areas of attack. in the meantime, institutions related to the eu and nato remain open, but at a high level of security in belgium. more than one person. they have arrested 16, but one suspect, salah abdeslam, has not been found among them. angie: politically right now, we have russia pointing the finger at the u.s. >> exchanging errors. russia came back into the fray of potentially diplomatic
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legitimacy, anyway, in the fight against the islamic state. over the russian prime minister -- he met with obama, saying it was irresponsible u.s. policy that enabled the islamic state to gain influence and power. he says the policies include theting the syria are -- syrian regime instead of rooting out terrorism. he said the u.s. contributed to the events leading up to september 11. faces ays russia strategic political choice. they will either join the coalition against terror and the islamic state, or it will continue supporting the assad regime. it cannot do both. russia has not committed to a decision, but the talks are ongoing. angie: thanks, heidi. leaders from the associated -- association of southeast asia
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nations have set targets. the roadmap was shared the asean meeting. joins us live.f what is the significance of this new plan? a couple declarations over the weekend, one was what you mentioned, the roadmap for the asean committee over the next decade or so. the second was a formal establishment of the asean community by december 31. the significance is, they are trying to increase integration, not just economically, but political security and social, cultural as well. the issue is, even though they are setting out the vision for the next decade, the targets they have set for themselves for the end of 2015, the economic targets, they have not fully realized that.
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they are pushing the target to meet the goals until the end of 2016. angie: was there progress on the south china sea issue? >> it really depends on who you ask. the leaders continue to press for a code of conduct in the south china sea. one leader said the world is watching china to see what they will do. minister for china gave a press conference yesterday where he was saying how that issue of construction in islands should not be militarized and china is building facilities to protect what it calls its territory. angie: thank you so much for that. checking other headlines, san francisco fed president has reinforced the view that there will be a rate hike next month. john williams has a strong case
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for december left off. that depends on the data continuing to be disc -- continuing to be encouraging. speculation is growing that japan is preparing to widen its stimulus program. this will include raising the minimum wage. more support for low income pensioners, and a move to reduce costs for low energy efficient homes. the government may consider incentives to support women in the workplace. shinzo abe laid out three new childcare support, the strong economy, and social security. venezuela's oil prices may slide to about $20 per barrel if they don't take action. they want an equilibrium price. --urday are rabia at cutter
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qatar ourbia and meeting. opec is defending market shares. new shares are back on the menu in china after a five-month moratorium. regulators have given the ok in a move that signals the stock market may not need so much help to maintain stability. david joins us with more. what is new? david: we are back to normal. , they havees can now restarted the process for companies wanting to lift. we are looking at two things. the companies that work given approval before they stopped it, and companies in the pipeline that are looking to get approved. most importantly, a lot of these channel toow have a raise funds, because while it was closed, they didn't have a
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choice. they had to work their way, work their relationships of the banks, or they had to turn to the debt markets or a rich uncle for cash. that worsened the debt level situation there. 10 companies that were already given approval, but -- that has restarted. investors will get excited, because the returns on these ipos, and you put what the market is on the side, have performed very very well. angie: outperformed -- shery: 400 fit -- david: 450%. howlators are overlooking you price the ipo. you price a little bit too high, which is subjective. you may risk unwanted attention, which banks and issuers don't want. angie: no. they certainly don't want the weight of the chinese focus on
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-- david: no, you don't want that. angie: another measure that is about to be lifted, the upfront payment requirement to get ipo allocation. how does that change the game? david: that is one part of the story. long story short, there is a current system in place called the online lottery. you have to set aside money if you want an allocation. your broker calls you, if there is an ideal coming up, you have to set aside a certain amount of cash. it sidelines so much cash when these companies take orders, that it drives up money market rates. it has driven down the equity market. what they are going to do after the 20th companies, they will no longer require that deposit of cash. the side effect to that is that virtuallyready
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impossible chance of getting an allocation, .6%. nothing.own to almost that is according to cibc. i am looking at some of these other estimates. roughly speaking, we are looking at this probability of getting an allocation. , higher oddsigger than winning the lottery, but then again, you really have to i guess work your relationships, to put it that way, if you want to get an allocation. we are talking 96 million retail investors. if everyone wants a piece, they can drink tea and weight for their broker to call. angie: thanks, david. coming up, our next guest is already looking past the stocks to the timing of further rate hikes. pricing in three moves next year.
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we hear from jpmorgan we come back. ♪
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angie: checking the stories making headlines around the world, the search resumes today for as many as 200 people still unaccounted or after a landslide in myanmar. the disaster happened at a jade mine. at least 100 people are known to have died. they have some of the highest quality jade in the world, generated an estimated $30 billion last year alone. mining has bloomed since the military relaxed its grip on myanmar five years ago. beijing has dismissed claims southilitarizing the china sea, saying it is building on islands to protect them. he briefing at the asean summit was told china has to great facilities there as the area is so far from the mainland. china's reclamation work focused
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on islands they carry 30% of global trade. president obama says international law must be followed. the argentinian opposition leader looks to be on his way to a comfortable victory in the presidential election. 40% of the votes counted, the electoral council gives him 54.2%. he is a two-time mayor of when osiris and a former -- of buenos aires. the president will kirchner, whona took over from her late husband in 2007. a reminder, japan is closed for a public holiday today. let's take a look at the markets trading and the rest of the asia-pacific region. , ath korea seeing fractional third of 1% up. .ustralian equities climbing flipping into green territory after spending must -- much of
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the boarding a negative territory. joining us from melbourne, global markets strategist with jpmorgan. it seems that central banks are sentiment right now. markets are gyrating, they are going back and forth. look at australia today. you are pretty firm as to where the fed will go and continue to go in 2016. what are your thoughts? days, wehe last few have had a lot more clarity about exactly where policy is going. that is in two different elections. we have heard from the fed last week, a couple reserve members over the weekend outlining the conditions that are in place to see a rate hike. hurdle for rate hike not coming through in december is exceptionally high. you need to see data that was very poor for them not to rate hike after doing so much to actually increase markets.
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the conversations we are having have quickly moved to the park for the rate hike. it will be very gradual. looking at past cycles, you saw year, innt move over a 2004 you had close to 200 points per year. we are looking at maybe 100 basis points for the next 12 months. that is pretty slow. the question is, will that be slow enough? six years since a rate hike. the u.s. economy is doing well. but by no means are they going to do anything to aggressive. there is a downside risk that they do something slower than what they are actually saying. i think that is what you are seeing reflected in the u.s. dollar move over the last week. angie: one more risk we have almost forgotten about, china. are we ignoring it at our peril? i think china has become a manageable concern for many investors.
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improving sentiment about the capital with the pace of growth things that their new outlook of growth would be around 6.5% if you back out from the calculations. that is a little bit lower than where they were. they are propping that up here in the lower growth rate means you will see a little bit more stimulus, but also, you will see the economy, which for the long-term, what we all need because as the economy gets more momentum, as you see more stabilization in the manufacturing part of the economy, their is a bigger impact. in terms of global trade, that we aretrade element, seeing early signs of it lifting a little bit, or pickup up the bottom if you look at the japanese are taiwanese trade statistics coming out in the last week. angie: as investors, what do you think we should be looking out for as we wrap up 2016? how bumpy are the markets going to be?
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>> i think the markets could be less poppy than many people in the -- less bumpy than many people think. we may see a boost from stimulus coming from the ecb as they deliver the really -- the reloading of their bazooka. there could be an anti-climax come december. there has been rusher placed on the meetings by central banks, but they are doing a good job of signaling their intentions that you might actually see markets continue to grow in the rest of the year and over 2016, because those same fundamental supports for markets have not gone away. there is plenty of stimulus from central banks, a global economy that is improving a little bit. there is plenty of liquidity. especially as we head into 2016 and we see those from the stronger dollar and the weak oil prices start to fade in the u.s. and support the markets here. i think it is a case of just holding firm and realizing what will drive the market. angie: if you are looking for
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opportunities for quick upside, what are good bets to make? >> i still favor the european markets, particularly the -- ecb actions will surprise -- will provide support. it will get those out in the high-yield market even parts providing equity markets. they will provide an upside -- a boost to the european market. the market isn't as cheap as it once was. bit moreuld look a selective, because of the expense. the japanese market will be one that performs well in 2016. i do expect to see more stimulus from the bank of japan, although they are not there at the moment, i don't think they will achieve the 2% target for inflation. it is about the domestic demand story within developed markets. there may be some upsides to
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emerging markets, but that may be temporary. i have big concern about the unwinding or deleveraging of the credit bubble there. also about the growth and the impact on currencies we do see the fed move as a more aggressive pace of the market hasn't gone up. we will leave it there. thank you for joining us. global market strategist, j.p. morgan asset management, thanks. fall toers predict a dollar parity for the euro by year end. your headlines after the short rate. -- this short break. ♪
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david: welcome back. it is monday, november 23. let's get to the state of play monday morning. looking at strength in the u.s. dollar, not surprised that san francisco fed president williams sees a strong case that the fed in two weeks. the data holds up in the u.s.. most forecasters think that will be the case. hedge funds boosted the long dollar bets by the most in 15 months. last week. they yen, the dollar, weaker at this point. a closer look at the euro, weakening further. the lowest level since mid-april. nothing groundbreaking. analysts are flagging that this policy divergence story will become more a factor ahead of
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the ecb meeting first week of december. possibility of the euro dropping to parity as early as next month. over to singapore, we get october inflation. deflation -- the decline in prices may likely have moderated 2.4% from -.6% in september. that comes out 1 p.m. local time. euro 10632., that takes us back to levels back in april. some of these brokerages forecast, i see it dropping further or weakening further to one before the end of the year. equity markets in japan are closed. we have a currency still trading. weakness as well in japanese currencies. the stories driving your markets this morning.
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angie: saudi arabian stocks rose to their highest in four weeks after its oil minister said opec is working to stabilize the market. the slump has put pressure on the country's spending. assets are at their for -- the a three-year low. the country produced more than 10 million aerials of oil daily over the last eight months. a philippine company with interests ranging from toll roads to utilities has confirmed its landing to list its hospital business. metro pacific says it'll sell shares in the second half of next year. the offer mustys wait until the philippines elect their president. >> i believe it will be delayed because we would wish to do that for selection. i think the lack of noise, because of the election, we don't like to, for devaluation
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of this ipo, to be affected by the election noise. most likely, it will be launched during -- once we find out who the next president of the philippines will be. next, alling up change. a new world for china's stock exchanges come into play. investors will have to digest what this means. for chinese policymakers, it is more about how to protect markets. will they be required -- have the required effect. we will have a look after the break. you are watching "first up." ♪
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it is home to more than 600 million people and says it wants to improve trade across the block by creating one single market. belgian prosecutors say that 60 people have been arrested after 19 anti-terror raids across the city. the fugitive paris attack suspect was not among them. authorities called for a social media blackout as the security operation unfolded after warnings of an imminent attack. saudi arabian stocks are at their highest in four weeks after a said they were working to stabilize the market. venezuelans or in crude may slide to $20 if the cartel does not take urgent action. they are urging opec to set and equilibrium price. here in the asia-pacific come let us take a look right now. the coffee is gaining for 10th
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of 1%. we are also seeing equities, a reverse of sentiment from the losses this morning. right now, it is 1% higher. roles aimed at ensuring a new orderly market will come into play in china's markets today. double the margin requirement for buying stocks. 50 to 100. already, some market reaction. >> we salt market reaction on monday last week. were announced on friday the 13th after the market closed in shanghai. and in shenzhen. the first time that investors had to react was last monday when we thought stocks in brokerages coming under selling pressure. monday was also the day that markets were reacting to the attacks in paris. essentially, what this says is that if you have ¥1 million in your margin account, you will want iat you want -- you
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wish it's -- yuan you -- i should say. route that weuity saw back in summer. if we have a look at the reaction that we could see on monday, a big fall coming through from the age share re the good- h sha news was that by the end of the week, all of those companies had actually managed a weekly game. hopefully, that has also been processed. angie: this is a policy change for officials here. can investors expect anymore? mr. mclaughlin: -- chinese trading stocks in new york rose for the seventh week out of eight. there has been a lot of effort
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to reverse the equity route that we saw this summer. -- one managerx has told us that china is not such a disaster. there is a lot more hope that we will see a rebound coming through in the asian markets and the new rules will bring a lot more order to the chinese ship. angie: let us see if that happens. it is risking a cut to the slump in prices and oil. david stringer is joining us right now from melbourne. david, this commodity continues to fall there does not seem to be any way out of this. david: good morning. absolutely, prices whether it is iron ore, or copper continue to tumble.
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the price of iron ore has fallen about a third this year and that is on the back of declines in the past couple of years also. all of that has put pressure on earnings. underlying profit fall 52% in august. it has also meant that some of the rating agencies have a negative view on the company. .redit ratings that is entirely because of the bleak outlook on prices. if we look on the bloomberg risk model, it suggests its creditworthiness is more in line b.th a crippled be -- triple cut expect the rate will be
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by march. that could happen sometime in the next 6-12 months. angie: something that is not making investors happy here either. the dividend is also in the news. what is the policy behind the chaos? policy is dividend under quite a lot of scrutiny. investors are weighing whether the company can continue to support it evident payment as prices slide. its current policy is for a progressive dividend payment. either raising or maintaining its level of dividend payments year on year. that is up to question. some investors think it would be better to preserve -- or some are suggesting that given the commodity prices being at a low and the asset prices being at a low, the money could be better -- m&a. mna
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vhp met with investors in bhp met with investors in perth last week. they are strongly committed to the dividend policy. what they said last week is that the balance sheet comes first. they also said that they have no decision to make between now and february. several investors believe that is essentially the company opening the door to scrapping that dividend policy. angie: time now for a look at some of the top corporate stories on the bloomberg terminal. here is heidi. are reports of more jobs on the line at deutsche bank. 1000 positions in london could be slashed next year. the bank plans to shrink its workforce by 9000 over the next
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three euros and it is set to eliminate 70,000 other positions by closing down some operations around the world. french shipping company is in exclusive talks to buy a singapore airlines. this is a deal that would consolidate more than 10% of the container market. -- theyl be looking for have been looking for a buyer for some time now. cma has until december 7 to reach an agreement. the largest pharmaceutical deal ever appears to be one step closer to completion. -- wereds of pfizer and expected to sign off on the merger over the weekend. they could make an announcement later today. the company would then be split into two, one focused on drug development, and the other focused on selling older, more established medication. japan's foreign and
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defense ministers have met their australian counterparts in singapore as part of a bid to -- a contract to build some submarines there. >> they are coming up against a deadline. november 30. australia invited japan, france, and germany to submit proposals for this deal which is an enticing deal. $36 billion. the biggest defense deal out there in the world. , companies countries from the countries are preparing their bids right now. japan has been meeting with australia in the two plus two meeting in sydney. -- it'sself only has an lifted a fewan years ago. this would be a first if they get this contract. has ismarine that japan
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said to be the best of its type. it has said it is willing to share all of his technology with australia. it has also said it is willing to build research centers and training centers in australia. willing to employ people in australia. that would help the australian economy as well. the competitors, which include a german company, have not yet put in their bids yet. germany for example is saying that their proposal could be about 70% involvement from the australian site. there is a lot of jostling for this very big defense contract. the deal is to build the submarines, we do not know how many get, between 8-12 and then service them for the lifetime of the sub which could be several decades. it is a long-term contract. australia has said it is going to look at the proposals when they come in and make a decision early next year. angie: a deal between business
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partners or between allies? >> this is the question. japan was included, that was interesting. japan of course does not have any history in building, in exporting. this would be an interesting decision also because of course, if australia did go with japan, it very much risks angering china which is a key trade partner for australia. this of course would have political and huge implications in japan. the meeting discussed issues like the south china's the. sea.e south china sayingense minister is
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that they have freedom of navigation. angie: still trying to figure out the message there. coming up next, keeping china invoke. after the break, a woman's special interview with an angelic a -- angelica chong. ♪
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angie: let's do a quick check of the markets and play around the region. in sydney, a live look at this me upper house -- at the sydney opera house. up bylian equities are one third of 1%. we have japan close to the for the-- closed holiday. in south korea, it is joining in the game. advancing half a percent right now. following on the best week for
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american equities all your. asian stocks at their highest level in six weeks. let head over to singapore, it starts trading in just over 15 minutes from now. the futures are moving to a higher open. we have some of the key events for investors in new york. >> the week ahead on wall street will be a holiday short -- shortened week. the first part of the week will bring a fresh round of economic data including sales of previously owned homes which probably slowed in october from the prior month. purchases of new homes likely climbed. picture on a mixed the housing front. a separate report likely shows the u.s. economy or gdp is moving at a faster pace than expected.
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consumer confidence is expected to have rebounded in november after falling to a three-month low in october. tail end of earnings seasons but among the final companies set report are tiffany, dear -- deere, and dollar tree. friday, we will get the first major indication of consumer strength. on friday. u.s. retailers will be kicking off the holiday shopping with black friday sales and events. checking some of the stories making headlines around the world. the washington post reporter has been sentenced to an unspecified iran'ssentence for judiciary may be announcement today and said the verdict was not final and referred to an expected appeal. he is a dual u.s., iranian citizen who was arrested in july last year.
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he and his newspaper strongly denies the accusations. extrahas promised an $14.5 million to search for them missing malaysian airlines. he made the announcement during a meeting in malaysia with -- australia is corner eating the multinational -- australia is coworker meeting the multinational -- coordinating the multinational search. ukraine haves in knocked out power for about 2 million people. a state emergency has been declared. officials say it could take four days to restore power. official has said that antitank mines may be involved. called thees is fashion editor of china.
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chinaca chong ran vogue and has millions of followers on social media and is credited with almost single-handedly designing china's fashion scene. stephen engle met up with her for a behind the scenes look at the magazine which has just celebrated its 10th anniversary. >> only the "it" women grace the covers of vogue china. the chinese girls become the face each month of an expanding multimedia empire. the readership is over 1.2 million. the one who has to find just the right look. >> how much is it your choice? ? 100%? >> no jury.
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this is no democracy. i am the editor. i decide. >> the last 10 years has propelled her to the pinnacle of system.fashion we do not sleep much. we travel. we have meetings nonstop. we know what we want to achieve. there is no time. >> she says that is the modern chinese woman that is reflected in her magazine. we have so much going on. women feel makes that despite all of this, you need to have an optimistic outlook on life. that will take you through all of these problems and challenges. >> it is not just a celebration of materialism. >> no, my magazine is about the
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woman. it was not about bragging about well. it was about a woman. brave woman who knows how to dress nicely. obviously, you feel that working on something that gives you life and at the same time, making a lot of money for the company. >> while traditional print media suffers elsewhere, though china has to turn away advertisers. december's magazine is 432 pages that. -- thick. >> to be respected as well as being big, that should be all of our ambitions. >> and, it was back to work to find the next big and best face
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of modern china. coming up next on investing in the future. one south korean company is spending aliens on new facilities to meet anticipated demand. will it pay off? the investors verdict coming up next in the stock exchange. ♪
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angie: welcome to the stock exchange. let us check in on what the reporters are watching. >> it is only monday. we were not expecting it to go up.
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it is down 25% over the course of last week. to buy into this holding company that has a number of financial assets and trust funds and commercial private banking as well. it has not done well in your today. there are more of sites to come through. david: look at that move. >> look at how massive it is. david: don't go all at once. the department store -- in talks --.uy a partial stake in lg did -- lg display. send $4nnounced it will billion for a new plant to -- because it sees its
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surging. >> do you have to watch it lying down? >> it is so big. they were airing this -- >> i am not the sore loser here. wins. it when heidi angie: that is our stock exchange. ♪ trending business coming up next. rish, what are you looking at. rishaad: what is going on.
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he is telling us that people are too gloomy when it comes to china. is as bad as all that when it comes to the slowdown there. we are looking at a possible power sale. the power company to a chinese led bidding group there. we have a chat with the chief executive of the new national library which is opening on the 24th, which i believe is tomorrow. in singapore. this is a really interesting building because it is one of two of the most historic buildings and singapore. a possible award-winning architectural job there. it is a new you see him there.
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new museum there. interesting history. angie: thank you for joining us on first up today. ♪ buddy- nice place, nice car what happened?
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rishaad: it is monday the 23rd of november. i am were shot and this is trending -- rishaad and this is trending business. i am going to be in sydney, tensions are focused on that euro. easingtions of the ecb and gaining next week. -- despiteitions
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missing targets this year. critics say there is no clear vision and media silence across brussels. it is in lockdown. an imminent attack is threatened. follow me on twitter to get today's top stories. the session beginning here in hong kong at the bottom of the hour. singapore -- a have just started their trading day. let us look at what happened or what is happening so far. japan first things first, is shut today. we are coming up for the best weeks in u.s. stocks. over 3%. it moved up. -- the euro is down to a seven-month low.
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when you talk about commodities come mostly flat to negative at this point. it will be a shortened trading week for the u.s. thanksgiving is on thursday. we are watching singapore -- that is the only notable data point coming out of asia today. inflation comes out. we are expecting a drop in prices there -- -.4%. the equity markets, we are looking at the japan market. we have seen a pickup in gains in the last 30 minutes. every single sector group is higher with the exception of resources for obvious reasons. commodities are mostly flat. materials were down. energy, we are down about that the 1% in australia. looking at shares of bhp.
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-- we still have a buy rating on this. they are saying they may need to skip the dividends to maintain their cash position. southeast asian nations have agreed to press ahead with their plan for a closer economic union amid criticism that they have no clear idea what that plan entails. they made that announcement in kuala lumpur. they are missing its targets for this year. leaders, they signed an agreement, a road plan for the next 10 years. 2020have called it asean five. it is supposed to create a community that is economically integrated and socially responsible. analysts are looking for more details on what that actually means. it will be established on december 31 and is described as a milestone in the integration process.
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we have to look at what has really been going on which is they have already been trying to create an integrated economic environment. it has a deadline of the end of this year. they have not been able to fulfill those targets. it is raising questions about how committed the countries are to create this asian economic corporation. is supposed to be similar to the eu and that it allows the free movement of goods and services, capital investment and labor throughout the region. it does not have the elephant -- the element of having the single currency. so far, many of the targets have been met but there are still a few key once remaining. they have not been implemented and that is why the target is being moved until the end of next year. each nation is still focused on its own interest. to be littles
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popular support or political appetite for the integration or funding for it. questions have been raised whether the political commitment and a financial commitment are really there for an integrated has not community which been fulfilled for this year let alone 10 years. we god: more details as through the program. belgium has kept the terror threat in brussels at its highest levels with schools, shops, and the metro closed. the prime minister says there has been evidence of an imminent, major attack. at high alert since the paris attacks. you organize your's of the attacks has still not been found. -- the organizers of the attacks has still not been found.
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the slump in oil and iron ore needs it could be facing -- the commodities are putting on the pressure. it has been something of a theme of 2015, falling commodity prices. earner,, bhp's biggest back to $45 a ton. that is putting pressure on bhp and adding uncertainty for the growing prospects of china and what this mining disaster will cost the country. a potent cocktail when it comes to the company's credit rating. it is currently rated at letter a plus. have a look at bloomberg's default risk model, you come up with a figure that rating mightiple b be more appropriate. a number of analysts including commonwealth inc. and deutsche bank as well.
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all suggesting that perhaps bhp's credit rating could be lining itself up for a downgrade. what will it all mean for this progressive dividend policy? officially, there is no change. they said last week that it is not changing and they would never put the balance sheet at risk. you could read between the lines and say that maybe shareholders are being softened up for a cut the dividend. bhp is saying that nothing will be made public before february. nowaad: we'll have a look here is juliet looking at that story and some of the other news making headlines. >> there may be some relief in sight for emerging-market investors. dreaded gift, goldman sachs, bank of america and others say
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developing nations are bottoming out after just three years of losses. they are not necessarily calling for a rally at the mood among investors in emerging currencies and stocks is so depressed that even a marginal improvement in outlook could shift sentiments. fromery in economies mexico to poland. watch out for gains in mexican peso, russian ruble bonds and indian stocks. we will be watching brokerage stocks here in hong kong and in shanghai when trading gets underway shortly. there could be further reaction to the new rules aimed at ensuring a more orderly market. officials have doubled the margin requirements to buying stocks from 50 two 100%. .- to 100
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previously, they could only borrow up to 2 million. brokerage stocks slumped following the announcement of the new role. the shanghai composite is now officially in a bear market, up by 20% from its august 26 low. earlier today, we may hear about the proposed megamerger between pfizer and allergan. it is said to be valued at more than $150 billion. it would become one of the biggest ever in the pharmaceutical industry. the boards were expected to sign off on the deal yesterday. pfizer will give 11.3 shares for for each allergan share. pfizer's ceo is expected to head -- the company with
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merger is designed to bring together the makers of botox and viagra. rishaad: a couple of odd build fellows -- bedfellows. china is being pulled further into the crisis in syria. later, lifting clouds, capital economics seeing more positives than negatives in the data coming out of china. we will talk about what that means market wise. we have equities in china and in is ons. -- trade there its way up for the seventh week. ♪
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rishaad: we are getting back to
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the action. reading your nose, why australia and sell u.s. define your terms search. >> thank you for this opportunity. between the us trillion and the u.s. share market at the index level. trading below 15. the s&p 500 more than 18 times. the dividend yield argument. the s&p 500, to present. yes trillion index at more than 5%. case is an investment there. there is a performance argument there. after outperforming the u.s. argument, and the big selloff of september, yesterday in market was bashed. if they get hit again on the on theffairs -- fears australian share market. we have a relative positioning
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argument as well. all-time highs. the u.s. market is just to present. a number of reasons to look at that. growth fearchina story has been overdone. the selling market has suffered from emerging market exposure. a double whammy has to be removed in the short-term. less than one month. that means outperformance for the australian index. rishaad: are you counting on the aussie dollar having fit -- having hit a bottom? i think that this move has been so clearly flagged to the market that the adjustment we have seen in the u.s. dollar has widely in dumped. up 25% on the dollar index. it is much more likely that
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currency markets will react. instead of the u.s. dollar rising further, it will pull back as proper takers move into cut those long dollar positions. that means a strong australian dollar. factotential for a cell of on the u.s. dollar ads to the by australia argument. rishaad: where else are you looking at the moment? what are the other themes you're looking at? is december done? classes. the asset think we have a certainty unless we get a shocking jobs number. barring a shocking payroll number in the first week of december, we will have a u.s. raid type very markets are moving that way. they -- increasing that
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probability. very much the case. i do think that is in the market as is a soft -- one of the large u.s. investment banks is talking that is an extreme case but it goes to show how much thinking about u.s. great rises has shifted. withad: looking in japan, cpi and jobs. are we getting to the point where the job status is so strong, that when it comes to the wage round in spring, they will be forced to up wages substantially and that should help curb economics? >> we should certainly like to say that -- see that. be some political considerations to that but it is clear that rising wages and rising prices are exactly what is needed. perhaps the boj thinks more
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needs to be done on the fiscal front. rishaad: have a great week, mike mccarthy. stories making headlines around the world. the search resumes today for as many as 200 people still unaccounted for after a landslide in myanmar. the disaster happened in a jade mine and at least 100 people are known to a guy. it has some of the highest quality jade in the world. it has generated an estimated $30 billion last year alone. mining has bottomed since the military has relaxed its grip on myanmar. beijing has said it is not militarizing the south china sea. -- at a briefing, china said that it has to create facilities there. china's reclamation work has
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focused on the spratly islands. president obama has said international law must be followed. the argentinian opposition leader has one bank the presidential election against his rival in the rival conceded defeat. the electoral count gives the winner 52.6%. he is a two time mayor and a former president of a football club. he will take office on december 10. rishaad: police are searching and continue to look in the belgian capital at the city remains on high alert. we have more when -- trending business returns. ♪
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we are having a look at what is going on in belgium, the country is on high alert after warnings of an imminent threat in brussels. no sign of a man who is said to have led those attacks. the prosecutors are baiting the public on the details of at least one operation. heidi: the current operation seems to have wrapped up.
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19 searches. -- 16in people arrested people arrested. the international manhunt for the one terrorist survivor continues. brussels remains at level four. we are expecting a fresh update on that later this afternoon. all of the major institutions coming universities, schools, the metro network stay closed. you institutions are staying institutions are staying open as is nato. saying -- thate there was an imminent threat. he was at pains to point out is at thene suspect core of potential, future attacks. about social
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media? an operation being launched their? heidi: the police tweeted out a request for belgians not to tweet or put on social media any details about the operations that they may witness across belgium. thes not to hamper effectiveness of police operations. and the search is being conducted. belgians have reacted. if you now look under the #brussels lockdown, this is what you see. various capeam of pictures. a bit of a lighthearted and positive reaction given the very dire circumstances that are underway. this is a brokerage listed in hong kong. we have seen the share price
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kicking in, slumping 14%. the chairman cannot be contacted. the company says it has been unable to contact him since last wednesday. india and are up, they have appointed a temporary replacement. -- in the interim, they have appointed a temporary replacement. let's have a slow down in china -- let's have a look at the slowdown in china, a new eraf declining sales growth. sales are up 3.5%. that is still up. not a real slow down. market is the chinese pretty sure to the high growth rate. midteens. 2014, 10% growth. 3.5% is a little bit lower than what people are used to.
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if you look, if you dissect the sector, suv sales are still very high. tois a shift from city dance -- sedans to suvs. it has got to be -- you say there is a shift in the sector. our people trading down? >> it is better for the automakers. suvs are a little bit more expensive and profitable in terms of profit margins. the auto makers do need to ,e-look at their operation revisit their operation and see where they can extract money. at the top line is not the only way to make money, you have to look at the cost. look at toyota, they have a program called -- new global architecture. is a newe programs are
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way of buying a vehicle that, nicest part and cuts costs. rishaad: with that in mind, with -- how areion line the manufacturers extracting value? >> exporting. if you look at g.m., they have announced plans to export their suv into the u.s. that is one way of using their extra capacity. projects -- products are still very good. the details coming up on that. plus, the market open. ♪
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belgian prosecutors say 60 people have been arrested after anti-terror raids. the main suspect is not among them. a social media blackout at the security operation unfolded. brussels is in lockdown after warnings of an imminent attack. asean leaders -- --
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leaders are talking about economic integration despite missing current targets. than 600 million people and says it wants to improve trade across the blood -- the block by creating an integrated market. the mine is graded at the highest level by the three major agencies. it is more in line with a triple b. let us have a look at the market opening in shanghai. this brokerage has not seen their chairman since wednesday. david: the brokerage listed here. we were down over 10%. substantially busier than 30
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minutes back. a lot of these commodity contracts are opening up and starting trade for the week. we are looking at the kleins and nicorette copper. nickel is that a 2003 low. only 10 is actually higher. is actually higher. --mistake, think is actually zinc is actually higher. that is waiting on the region here. i also want to mention -- the -- the renminbi at its lowest level. since august 31st. as promised, let us get you an update on this security company. we are down 12%.
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since the company cannot find its chairman, they say he cannot be contacted since november 18. they have appointed a temporary replacement. in a statement to the hong kong stock exchange, the name of the ceo and chairman has currently not discharge his duties. a temporaryng at chairman. shares are down 10%. going the opposite way, g resources listed in hong kong up 12%. 13% at one point. long story short, resuming trade today, there will be -- they will be disposing of this mine which they own in indonesia. upliftare getting some because of that disposal.
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or the announcement of that disposal. a lot happening in the market is monday. things have become a lot busier in the last few minutes. asean leaders signing a new agreement to move together economically speaking. these leaders talking about this for some time. the critics are highly unimpressed. >> they have been trying to create an economic community. the deadlines were supposed to be met by the end of this year. they have not been met. most of them have been met. as of the end of october thomas 29.5% -- as of the end of -- they have% achieved most of them.
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not complete total failure at this point. they are moving the new deadline to the end of next year. rishaad: total failure is a bit harsh. >> exactly. rishaad: they are not lacking vision. >> they think this is an option. it would help them greatly. they could create a very strong economic and political bloc. a bigger trading block than the eu as they work together. the problem is achieving the ability to work together. -- arealysts, or rather rather skeptical. one analyst has said they specialize in pointless agreements. thee is no concept of what
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dream is. he is rather damning. his report points out that trade of traitabout 26% compared to 60% to the eu. rishaad: it makes perfect sense because those countries are much poorer. on --keep with aussie asean. we have japan's foreign and defense ministers expressing concerns. bloomberg news government reporter -- what did these reports actually focus on? talks, theyou will two blessed to talks -- two plus
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two talks. they talk about security issues. the south china sea is a major issue and is dominating headlines. basically, they are talking about china's reclamation process in the south china sea. minister says he cannot accept china's land reclamation program there. this is a very delicate process. a delicate time frost really a. in the south china sea talks. is australia'sa largest trading partner. it does not want to offend china at all. at the same time, it realizes that the u.s. and japan are major military allies and it does not want to annoy them.
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rishaad: what about the submarine talks? can you tell me more about them? >> yes. japan is one of three bidders for the summaries along with germany and france. it is basically the biggest defense contract in the world that is pending at the moment. australia says it is worth about 50 billion australian dollars to actually build and maintain the submarines over their lifetime. japan is very interested in winning this contract. the prime minister has said that he wants to basically open up defense exports throughout the world as he rejects the nation's nations -- rejigs the pacifist approach. australia has said that they are listening to the japanese bid,
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they are quite interested. the thing that will really bid at thejapan's moment is that australia does not want to buy these off-the-shelf submarines. it wants to redesign the purposees to its own which complicates things and adds costs. checking in on some other stories we are following for you. reports that there may be more job cuts on the line at deutsche bank. deutsche bank will/1000 positions in london next year as part of an overhaul announced last month. it plans to shrink its workforce eliminateanning to 17,000 other positions by closing operations around the world. company -- metro pacific
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says it will sell short -- shares. that the offerys must wait until the philippines elect a new president. >> i believe it will be the late because we would wish to do that selection. to -- thelike valuation of the ipo to be evaluated by the elect -- to be evaluated by the election numbers. debt -- mayaysia's be selling its power division for as much as $2.3 billion. the deal with the chinese led -- ortium may be >> they have been going back and
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forth on this all year. almost default it earlier this year. plansthen, they have had to sell the assets. the whole idea is to sell and get rid of the asset and slowly wind down their operations. rishaad: what are the three assets involved here? they have a lot of power plants locally in malaysia as well as things overseas and bangladesh, egypt and other places great -- and other places. they are looking for new opportunities. they may be able to get federer -- better returns. what does this deal mean for the company and for the country? >> it means it is getting close to winding down the operation and putting a close to the end of this unhappy chapter.
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this is the biggest asset a half. have.y investors can move on. we have to take a break but coming up, the cloud over china's economy may not have listed but our next guest says there are more positive and negatives. then -- thanives negatives. ♪
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>> welcome back. these are the stories making headlines. iran has sentenced washington post reporter jason to an unspecified prison term after his conviction last month. as five. a spokesman made the theuncement and said
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verdict was not final and referred to an expected appeal. u.s.-iranian citizen. he is accused of passing information to the u.s. government. something that he and his news paper strongly deny. china has promised annexed or $14.5 million in the search for the missing malaysian airline flight. he made the announcement during a meeting in malaysia with yesterday and prime minister. australia is coordinating a multinational search off its southwest coast. many of the passengers were chinese. two explosions in ukraine have knocked out power for more than 2 million people on the crimean peninsula. a state of emergency has been declared. it could take four days to restore power. the blast happened on friday. a local official said that antitank mines may have been
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involved. rishaad: giving you a heads up on the things we are watching out for. great to see you here. you are saying that sentiment is overdone when people are looking at emerging markets. that is getting an agreement from a number of banks. did this mean we will see an uptick in people's interests? >> i think we are definitely this. past the stock market was collapsing and everything was all doom and gloom. every negative data point we get out of china headlines in newspapers confirms that
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negative. i think conditions are stabilizing in china. the trouble is the gdp data out, no one really believes very we are scrambling to figure out what is really going on. we look at data points that people do not look at so much like electricity production and freight traffic. china's economy slowed really sharply in the first half of the year. and now, it is stabilizing and even recovering a little bit. i think as we start to see that come through in the harder data in the coming months, -- rishaad: why do you think that people are so gloomy when it comes to looking at the data out of china? it is because we do not really know from the hard data
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anything. the stock market did cause a big panic. the china stock market does not have much bearing on the real economy. when the stock market is collapsing like that, it does make it into headlines. it made a lot of people very nervous. rishaad: let's take a look at what else is happening. how people are gloomy about china. are they also bearish when it comes to commodities? >> again, that hopefully has run its course and we should start to see an improvement over the coming months. the pre-factors should lead to some kind of improvement in the coming months. one is that -- the old adage that the best thing to your low
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prices is low prices. it gives the market a list. we should start to see that affect come through. -- the third thing is that investor sentiment has gone a little bit too negative on commodities and that should start to bottom out. if we look at valuations -- quite a lot of commodities are looking attractive compared to equities and bonds. rishaad: looking at data this week, inflation and jobs out of japan. what are you looking or in particular? had the big we have event which was the boj meeting last week. it is not very concerned about the weakness in the economic data. to the gdp being
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dragged down. i think there is a lot in that argument. gdp growth should be a lot stronger in the fourth quarter. now that japan has been through that recession, its output gap has widened. that will be pulling down inflation in the coming months. we are looking at the boj drumming up -- giving fresh expectations a left ahead of that and stronger wage growth. what is your dollar call right now? >> we are still expecting some more strength in the dollar around the interest rate hike. the big moves are beyond us right now. markets have now latched onto it december being the time that we get the hike. temper we saw with the
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tantrum, all of the big market moves happened up ahead of the event. something of the same this time around. when the rate hike is actually made from the dollar may strengthen a little but i do not think it will be much. next year will be the thing to watch with interest because the hikes in the u.s. could be a little bit stronger than the markets are expecting. we are looking at seven rate hikes are the end of next year. markets think 4-5. we could see some more dollar strength next year. we will take a break. up next, a fixture in the fashion world. you will hear from the editor who decides what is in vogue in china, coming up next. ♪
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rishaad: the modern bdl --dscape -- media landscape vote china is one of them celebrating 10 years as a fashion bible for chinese women. steve engle got a behind the scenes look with the dynamic editor-in-chief. angelica chong. the it women with beauty and brain, confidence and influence, grace the covers of vogue china. >> they are all really modern chinese girls. >> they can become the face of china. of 1.2 million for the printed version alone. the editor in chief, angelica cheung is the one that has to find just the right look. >> how much is it your choice? >> no jury.
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this is not a democracy. i am the editor. 10 years has propelled her to the pinnacle of china's fashion pyramid. drawing comparisons with the fictitious miranda priestley or her u.s. counterpart at both, winter.ue, anna >> we know what we want to achieve. there is no time. >> she says that is the modern chinese one and that is reflected in her mixing. >> there is so much going on that makes you feel that it is hard to live. women feel makes that despite all of this, you have to have a positive outlook on life. that can take you through all of these problems and challenges. >> it is not just a celebration of materialism. >> our magazine is about the
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woman. i don't see how bragging about wealth is good. it is about the woman. a very confident and positive and loving brave woman who actually happens to know how to dress nicely. obviously, you feel like you are working on something that is right and at the same time, making a lot of money for the company. >> while traditional print media suffers elsewhere, though china has to turn away advertisers. december's magazine is 432 pages that -- thick. >> to be respected as well as being big, that should be all of our ambitions. >> to achieve. and, it was to work to find the next big and best face of modern
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china. rishaad: giving a sneak peek at singapore's latest cultural attraction. the new national gallery opens tomorrow. ♪
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wrisrishad: this is trending business. we will be live in singapore and kuala lumpur. saying oil could fall to his lowest $20. they are calling for urgent action from opec. the risk model puts php in line
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with triplebbb. its chief executive cannot be found. he has not been seen since wednesday. follow me on twitter. the day is getting underway in jakarta. we have a mixed bag. hong kong was down but flirting with the gain line. caution whenlot of we talk about what a lot of people are saying. we may see these play out a little more clearly, right up until december. it is fairly quiet, volumes are quiet. with very little economic data coming out of there.

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