tv First Up With Angie Lau Bloomberg November 29, 2015 6:00pm-8:01pm EST
angie: passion and protest, world leaders and environmental activists gather for crucial climate talks in paris. price, may be sued disaster,azilian dam the costs could top $5 billion. and welcome to the club, the yuan is expected to join the elite today as the imf shakes up its basket of currencies. i am angie lau, think you for joining us. for those of you celebrating
sunday there in the u.s. on thanksgiving holiday, and good morning to the rest of you joining us here in asia on this monday morning. we are coming to you live from bloomberg's asia headquarters and streaming on mobile and bloomberg.com. we have some breaking news to start things off. industrial productions phil on the month in october. predicted they drop of zero point 9%. as for the year on year figure, it rose to the estimates on a 2% increase. we will be watching how career reacts -- how career reacts. let's to get look at markets that are open. equities downlian as we continue to see commodities slump. australian dollar so weakening. this ahead of the rba decision tomorrow. to new zealand we go. we are seeing gains of a fifth of 1% but we have seen u.s.
dollars strength on low liquidity during the holiday week. u.s. cents.is at 65 we are counting down to the opens in japan. ons was the view from japan friday. one third off 1% down. we saw futures pointing to a higher open. this is after wall street closed. one market close, it is the holiday in the philippines. we do begin in asia with the environment. the air in beijing was officially hazardous with pollution recorded at its worst for 13 months. pollution will be among the issues on the u.n. climate conference. here with what we can expect from the talks.
>> those talks getting underway with protest. paris already on edge. the leader of france saying these were scandalous protests and the protests had nothing to do with the environmental supporters. nonetheless it is an indication of the kind of challenges as they seek to reach this global climate court. so many nations rich and poor, which have their own interests. for some of them they cannot afford the targets that the wealthier nations are pushing forward. issues as these meetings get underway in paris. certainly a debate the world will be watching. there are calls for a binding agreement that can actually make a difference. whether we have that agreement
remains to be seen. how to asia stand on this issue? >> asia at the forefront of the changing global climate, those who say global warming is causing these changes certainly need look no further than what happens each year from the philippines. if you look in thailand, bangkok, jakarta, major flooding problems every year. then all sorts of natural disasters that plague nearly every country in this region. to give you a sense of how complicated this will be, each has a different approach. getting everyone on the same page and getting everybody to pay for these initiatives is a key challenge. that will be interesting to see
whether they can bridge that gap in paris. expected to be sued today over the dam disaster at their joint venture and brazil. it will include a demand for more than $5 billion in damages for the tragedy. let's get the very latest from paul allen in sydney. how much do we know about this lawsuit? brazilian government is going to seek $5.2 billion from the owners. they have to take responsibility for what happened. on november 5,as mine waste went down the valley. the 30 people dead and six still missing from that disaster. they will ask the judge -- the attorney general will ask a companies do these
not pay. it will be a very uncomfortable process. bhp says it has not received formal notice of action, but we understand that lawsuit is going to be filed today. are committed to rebuilding some argo -- rebuilding somarco. angie: this just adds to the pressure on bhp, doesn't it? does.it really a heaping misery upon misery for them. we know already their earnings were halved in the past year. we were talking about how the credit rating may be at risk. if we look at the stock, already off 2% and almost 30% year to date. a lot of australians have money tied up.
there is some commentary in domestic media. the pressure may well start to knock on the leadership. angie: thank you for that. let's check other headlines. indian budget carriers say they have received interest from headlines based on the gulf. 280% this year. shares are undervalued. now is not the right time to sell. buy 100 -- 150 new planes by march. a passenger plane has been headed to its new owner. 21 was launched to chengdu airlines.
it can carry 90 passengers with of 3700m range kilometers. perrone and other brands could be up for sale as part of a merger of the world's biggest brewers. it is part of the bid for regulatory approval for his 170 alien -- for its $170 million purchase. miller would sab create a brewer with half of the industry's total profits. and sony has revealed it is arking on aps for -- on playstation 4 app to stream to pc. features only available on smart phones and tablets. it doesn't allow users to -- it will allow users to's dream --
to stream games. something else is in play. -- we haverency a look at this. a big day, a graduation, perhaps. >> this is something that has been in the works from what we have seen this year. all of the reforms they put in place was really for them to be able to get the status, which only for currencies have. it is a decision by the executive board. it takes place later today, it is a done deal. economists say it is going to be a formality.
what is more important to watch out for is the detail report of this review that the imf did for the past few months. you look at this group of five, it is the only one for the emerging market. it helps the currency become widely usable. the july report from the imf actually -- you have the dollars which aren't currencies.
there is also the issue of access to and yuan denominations to be able to have potential risks. decisioncted to this but as far as potential flashpoints are concerned, what will be the political reaction in washington? included,n is indeed who basically said if i'm not mistaken, day one he will live as the china currency manipulator. >> the yuan is being considered. included in the basket. the question is what is the waiting if he is outlined? the imf set 14% to 16%. that would be a justifiable weight. angie: thank you.
♪ some of theing stories making headlines around the world, the body of the russian pilot that was killed when his plane was shot down over syria has been flown home. to russia after moscow posted sanctions in response. russian companies have been told to stop hiring turkish workers. russian football clubs will not be allowed to buy turkish players in the new year. the philippine air force has taken delivery of two fighter jets to korea to bolster its defenses during the escalating marine territorial disputes with
china. the first of 12 touchdown at the air base, a primarily training aircraft that has been upgraded to a multi-combat role did the full deal cost manila 100 $40 million and the remaining 10 planes will be delivered over the next two years. a landslide election victory. the national league for democracy won almost 80% of the seats. the military backed government its power, but has stalled over key meetings. no one has responded to requests for talks. time now for a look at the key events on tuesday we willcoming up this week, -- events figure out this week, on tuesday we will --ure out -- like
inching closer. onomberg summit will start thursday. they can names in the region will be gathered in bangkok to talk about growth in opportunities in south east asia. among the participants are the finance ministers of southeast asia and the philippines. ipoing $670 million in its making its trading debut on thursday. they hope the extra capital will help it compete with bigger international rivals. hong kong ipo fund rising is heading for a 20 year high in 2015. of thesees the start first-ever ever africa china summit on the african continent. resident xi jinping -- president's xi jinping will focus on security investment. let's take a look at some of the
economic data that may be moving markets in the week ahead. joining us is paul, chief australian-new zealand economist at capital economics. us, itou for joining looks like u.s. dollar strength is really driving the aussie dollar and u.n. dollar to weakness -- dollar and new zealand new zealand -- dollar and the new zealand dollar weakness. rba deal is athe done deal. the future is a different matter. reason the rba will hold iis week is because -- suspect that will be shown in the gdp data in the third quarter release on wednesday, where the economy may have rebounded quarter over quarter after a disappointing second-quarter.
the main message is that the full impact on the australian , seen last year, seen this year, and seen in recent weeks has not been felt yet. early next year interest rate cuts will be back on the table at the rba and interest rate in australia will be down to one half of 1% sometime next year. responding to are lower commodity prices, but also that poor showing of capital expenditure out of australia, what does it say about the economy and the future frustrating ayako paul: -- future of australia? paul: i do think those figures released on wednesday look pretty good. below the surface there will be signs for reasons of worry. the data looks good because the exports boosted
growth, partly due to the weaker dollar. on the downside that will hide the longer term affect of sharp forced investment, partly related back to the mining boom. there are no signs that investment outside of the mining sector is starting to fill that hole left by the mining collapse. i think this will feed into next year's gdp figures. is weakomics, our read investment will result in the australian economy growing by only 2%. that will be markedly lower than the rba is currently expecting, the interest rates are more than people expect. the aussieondingly dollar is weaker, something like $.60 next year. angie: are you seeing anything
from china that could offset that a very grim outlook for australia-new zealand? paul: we are positive on china. there is no doubt a growth of 7%, maybe a present as long behind us. one of the first indicators to show that. indicator is actually a bit better and we think growth has started to stabilize as the economy is feeling the effect of the recent economy stimulus. we are in little that better than people expect. months we think the chinese economy will do better than most people expect. that is not the say it will do extremely well, but we think there is an air of bloom around china that isn't quite justified. -- arab gloom of china that isn't quite justified.
air of bloom around china that isn't quite justified. angie: how does the change from china and the global economy? paul: i'm afraid the answers are not a lot. it sounds like a big field when it comes down to it. i don't see it meaning that much at all, really. asset managers aren't going to suddenly by in china, just because it is now in the basket. they are more concerned about what they could do and how quickly they could get the money out. the last few events, the chinese makers responded and the equity market suggests it is harder to get your money out. they are not going to be very good back in china. angie: thank you for that.
-- a few mines remain on the drawing board. paul allen travel to the area and met farmers who fear the mines will destroy a rich agricultural region. >> if you science through the rich soil of the river pool planes. retention ability of this soil is like no other soil anywhere. >> a battle between oesterle as dining boom and failed mining room. coal and china has a license to dig it up. it will destroy the water table. >> the miners have been instructed to make good. withou cannot make good the quality of water that is required here for agricultural production. >> australia's agricultural
minister opposes his own government. you can't understand how it is even economically viable. >> a $200 million license and probably $300 million. >> that is an environment where the coal prices go from bad to , approaching $50 per ton and global commodities are out. saidstatement the company this project is viable, regardless of the current coal price. it also said groundwater impacts arey's -- impact studies done in the state of south wales. >> building everything from a new office conveniently opposite the chinese rep -- chinese restaurant. of friends,g plenty who rejects the idea of being a food bowl.
90% of the groundwater eustis used to grow cotton. not food. grow cotton. not food credit it is the biggest return in crop. vandalisment underscores the rift in the community, that rift threatens to deepen with some threatening civil disobedience to stop the mine. bloomberg. angie: south korea aims to revamp thinking with its first internet only lenders. more on that when we return. we live in a pick and choose world. love or like? naughty or nice? calm or bright? but at bedtime ... why settle for this? enter sleep number. don't miss the ultimate sleep number week going on now! sleepiq technology tells you how you slept and what adjustments you can make. she likes the bed soft. he's more hardcore. so your sleep goes from good to great to wow!
angie: what a beautiful fall look at the imperial palace. we are awaiting some critical data from japan, factory output and retail sales coming out of japan. we are 30 minutes away from the opening of trading there as well as south korea. you are watching "first up." the top stories this hour, security is tight in paris as world leaders gather for a summit, delivering the first
truly global deal. 177 of the 195 countries have already pledged cuts. beijing had a clear reminder of the climate challenge it faces with hazardous pollution levels on sunday prompting the first orange alert on air quality in 13 months. bhp billiton shares fell more than 2% after brazil said it would seek more than $5 billion compensation. 13 people are confirmed dead after the collapse of two dams with six others still missing. the yuan is expected to join the world's leading currencies. the imf meets in washington to decide whether to add the yuan to its basket.
the list has not been altered since the year 2000 when the euro replaced the french franc and the deutsche mark. christine lagarde expects the you want to be approved. uan to be approved. australian inflation rises .1%. a 10th of 1% higher, we have a weaker aussie dollar ahead of the rba decision tomorrow. let's head over to new zealand. it is 4/10 of 1% higher. we have weakness in the qa dollar -- in the kiwi dollar. we have industrial production figures and retail sales figures
coming out later in japan. futures, the nikkei opened pretty much flat on the day. 122.80.ar-jan the inquiry is looking into alleged breaches of the rules on margin and shortselling contracts. we have haidi watching this for us. >> another day, another tidbit of information. all three of these chinese brokerages announcing a little bit more about the details to what is going on. information they are being investigated for alleged breaches of roles when it comes to financing and shortselling contracts. these are two areas the regulators have been keen to crackdown on.
had finance contributing to that run up in share prices over the summer. it came up significantly to what can be perceived as dangerous levels. in recent weeks, alongside the recovery for chinese stocks. this is how we were looking at friday's close, pretty ugly. brokerages were the biggest losers. we have seen quite a lot of fluctuation in these brokerage names. of acomes on the back number of weeks of uncertainty. we still have the security's
chairman missing. speculation is that he has been taken in as part of questioning. there is a sense that this is starting to build up. several months of this kind of -- nngie: this is part of a intense crackdown. di: chinese policymakers are trying to lend more credibility, when it comes to the financial sector, which has been a bit like the wild west. they are trying to fix that somewhat. as that market becomes more international, they want to get the interest of the foreign investors, but they also need to gain the trust.
the problem is, communication, transparency, a lot of guesswork involved in exactly what policymakers and regulators are looking for. friday, banning brokerages from entering into new client contracts that use derivatives to provide financing. there is a sense they are trying to eliminate some of the risks that cause that china roller coaster and then the china meltdown over the summer. angie: what a ride it was. thank you so much for that. foreign investors who helped fuel a three-year rally in japanese stocks are now looking elsewhere for returns. investors are keen on smaller, but interesting stocks. board.ring in russell -- russell ward. what is this all about? russell:
as you mentioned with the japan rally, it has been three years since shinzo abe came into office. a lot of that was driven into foreign institutional investors who piled into the well-known stocks, the blue-chip companies. feedback from those institutions that they want some value from the lesser-known stocks and they want to be put in touch with these companies that are not as well known. it arranged meetings with 25 lesser-known japanese companies from all around the country. this is taking place this week with global investors. it is dubbing these 25 companies rising stars of japan's economy. these are companies that have a .ot of high potential
they arrange these meetings with these institutional investors to discuss their growth prospects. angie: interesting. which companies are taking those meetings? range ofvery wide industries. we have a drugstore chain based in ishikawa. , a wide equipment maker range of companies in various industries from health care to retail to wholesaling. rangedefinitely a broad omura is selecting these companies from.
the average foreign ownership is 21%. angie: all right. thank you so much for that, russell ward. time now for look at some of the top corporate stories on the bloomberg terminal. david: let's take a look at lufthansa, the airline has reached a retirement deal with staff. 33,000 workers will receive a lump sum of about $2400 and pay rises of over 2%. lufthansa is still talking, disagreements have led to strikes that canceled flights. combiney is planning to a property unit with a builder in a transaction worth more than $4 billion. millionl pay 313 dollars to buy the unit. the remainder will come from a
shares deal. shares have been in a trading halt since the beginning of june. softbank is celebrating the success of pepper. pepper uses more than 20 motors and is capable of humanlike body language. all of that for $1600. those are the top corporate headlines this hour. angie: south korea is gearing up to launch the country's first internet only bank. the government has granted preliminary approval for two groups. the unexpected winner could be china's internet giant. >> we are talking about allie
lipay. their korean partners are getting these online only bank approvals. it needs to be finalized by legislation passed by the national assembly later the share or next year. -- later this year or next year. akao is the operator, as well as kt. they received preliminary approval. lots of expectations about this. banksishing internet-only should help the competition in the local financial markets and improve the financial industry. says the bank will try to offer innovative services that existing banks cannot offer. angie: how does it compare to
other countries? known given how well korea is for its high connectivity, the financial behinds have lagged china. the u.s., also japan. there are hopes this will boost innovation and there will be more deregulation in the financial sectors. regulators saying these online only banks will be able to offer a wider range of services for customers. angie: thank you so much for that. coming up next, it was >> over breaks onclicks over black friday. ♪
latest country to build a border fence to keep out migrants. to eu agreed to pay turkey help with the refugee crisis. north korean missile launch from a submarine appears to have failed. agencycial told the debris from a ballistic missile was seen floating over the weekend. the north said it fired a news type of missile. more than 103 million people shopped online over black friday weekend. outnumbering those who ventured into stores. our next guest heads the group which wants to become southeast asia's top online mall.
very good to see you. what does this mean for all of those storefronts? trend and you can see it is a global trend. we see the same in southeast asia. online towards our revolution. we started in 2012, the first time we did this was in 12-12-12. retailers, not developed in the same way it has in the rest of the world. angie: four emerging markets especially, it is a way to get the goods in your hands almost immediately. >> exactly. we are looking at the growth of
the purchasing middle-class in this region. it is not present out of the capital cities like jakarta and manila. angie: southeast asia soon becoming a mobile first market. 27% smartphone penetration. are there going to be adaptations to a cyber monday here in asia or singles day? singles day seems to be more of a china-led thing. what about southeast asia? the way we approach this kind a concept, we launched 12-12-12 sale in 2012, the year
of our launch. it is the end of an online revolution. angie: that is what you were talking about. it is -- one of the things is critical here because even the brick-and-mortar stores and companies had tried to import or export black friday mentality to consumers. is this working? are you finding traction? yes, 100%. we look at the launch of the online revolution on 11-11. the concept is very similar across the world. at the end of the year, people increase their spending, the offline retailers -- online retailers sell off their remaining inventory. concept where the
end of the year, people spend more and retailers want to sell more. having one day around which all of this focuses allows to create that customer. retailers,u.s. european retailers partnering up with lozada in the same way we saw u.s. retailers pair up with alibaba? focuses, wer main are stationed in the six main markets, we want to bring brands and retailers into southeast asia. we want to be a one-stop shop website which allows people to penetrate the market. accessing as a one-stop shop through us. this is the first time they have
access to a much wider audience. angie: absolutely right. maximilian, we will leave it there. guests at one of our the bloomberg business summit which kicks off on thursday in bangkok. we have breaking news out of japan. the latest factory output figures, let's head over to yvonne. ofnne: further expansion factory output after we got that surprise rise back in september. the actual numbers are seeing further expansion, 1.4%. were below what economists expecting. that forecast was for 1.8%. that is still better than what we saw in september. some momentum building in the factory floors. we did see, in terms of the
index, comingrs out of japan. surprising strength, we might see the boj staying put in terms of expanding stimulus. exports in october falling for the first time since october -- since august of 2014. outstrial production coming 1.4% for the month of october after contracting a tense of 1% in september. -- 8/10 of 1% in september. 1.8%. trade, the retail sales on month, also a beat. 1.1%. numbers coming out, department stores sales, those in line with estimates, 2.9% rise.
now, wet the yen right are not seeing much movement this morning. reiterating, industrial production numbers rising 1.4%. angie: good news for japan, a technical recession and whether we could see it back to growth. more falsified data found in japan's construction industry. this time it is a company that makes concrete products. ♪
japan, a conglomerate that , it apparently is going to be traveling to cupertino next week because they want to pitch apple for a 2018 contract to supply screens. they will enter this business, build a construction line. the stock is up about 10%. angie: we saw a selloff for the other supplier from apple. were --els really really weird to be back in stock exchange. it is all about beauty products, hair care products. they supply haircare products
for beauty salons. they are planning to raise their dividends to ¥39 from y35. they have very good ratings. david: i was just looking at -- one of those stories that is developing. this japanese company that falsified data. projectted it found one had falsified piling data. at the moment, it is unclear what the impact will be on earnings, but they will be reviewing all projects. >> this is extremely scary in an earthquake prone area. weaker?fy it to make it >> why would anybody do that?
acceleration. yvonne: some improvement. it was 1.1% back in september and that was a big surprise back then. it left the bank of japan with raising the bar in terms of expanding stimulus. now we are seeing 1.4% from the factory output. still missing estimates of 1.8%, but it was climbing to the best we have seen in a couple of months. a nine-month high was the forecast and we are seeing it somewhat similar to that. we saw the ministries latest forecast. months andght contraction, 1.4% down. orders forrt october. tohave seen from july
september, quarter showed shrinkage, we demand from asia. a big weight on japanese exports, those failing in october. this is what may have led to produce fewer goods than planned. retail trade on year came out 1.8%. retail sales were a beat on month. this comes on the heels of cpi data that came out on friday that was a little bit disappointing. we are still hovering near zero. we saw unemployment at a 20 year low. from the bank of japan and the government, extra budgets, highlighting some of the things the prime minister wants to tackle. it was something that dominated the headlines, $29 billion of
to that will provide income low income pensioners. the government plans record spending for 2016. angie: also wanting to cut that corporate tax. it really underscores weakness. angie: we are still seeing some fiscal spending. let's see how the markets are reacting. i: a little bit of a mixed bag. at a downward day. take a look at how the nikkei has reacted to that data. let's take a look at the yen, though, because we did not see too much of a reaction when the data dropped. we are seeing not much of a reaction in that dollar-yen trade.
take a look around the rest of the market. south korea, that is moving the kospi. -- we had been expecting a drop of 9/10 of 1%. far worse than expected. year on year, of 1.5%. some pretty dire numbers out of south korea and that is sending the kospi. the chinese markets, we had some of the worst numbers out on friday for chinese markets. 5.5%. shanghai off by the hang seng closed off by 2%. they were dragged down by the brokerages, under scrutiny once again as they have been over the past few weeks. we had news over the weekend that three of china's top 10
announcing they are under investigation for shortselling contracts. we knows these are two areas that regulators have been focusing and cracking down on, trying to assign blame for that $5 trillion over the past summer. this is a three month low for chinese markets. i want to talk about the aussie markets as well. the afx sitting pretty flat at the moment. electronics retailer, the stock is plunging by about 50%. the company abandoned its profit guidance. we will keep an eye on how that goes. this is how we are looking here in asia.
angie: thank you. bhp billiton and its partner are expected to face lawsuit today over the dam disaster. it will include a demand for more than $5 billion in damages orethe tragedy to the iron mine. what do we know about this lawsuit? exact number is $5.2 billion in that will go into a fund that will pay for the cleanup which the brazilian government expects to be spread over a period of 10 years. this relates to that november disaster when 50 million tons of mine waste escaped from the dam when it collapsed. we have people confirmed dead and six missing. this lawsuit will be filed in brazil later today.
they will have to take responsibility and they will be asking the judge to seize any funds in the event of nonpayment. bhp billiton says it has not received any notice yet that this lawsuit will be filed. it is committed to rebuilding and the plume of mud has made it into the atlantic ocean. canceled alls holiday celebrations, as it deals with this tragedy. they have been facing protests as well. this lawsuit is adding pressure on bhp in the commodities space. 2015 has been a year to forget. pricer price -- iron ore surging downwards. talking last week about how this is putting pressure on bhp's credit rating.
if we take a look at the stock this morning, 1.7%, down nearly a third this year. a lot of pressure on the stock. a lot of people have seen a lot of wealth being wiped out. allen, thank you for staying on top of that story. asia, we are continuing to talk about the environment. the air in beijing was officially hazardous on sunday with pollution at its worst for 13 months. pollution and china and other countries will be among the issue on the agenda of the u.n. climate conference in paris. talkse can expect at the begin, obama has arrived, and we have other world leaders as well. will anything get done? >> that is the question. involved, and they
have to come to an agreement. how do you get everybody on the same page? we have had pledges from thatple nations, pledges would limit carbon dioxide emissions. however, the pledges are not at the levels they were several years ago. there is a bit of backpedaling and the goal the delegates will be pursuing is to ratchet up national commitment over time. getting each nation to do its part. nations are of different sizes and different economic capabilities and the big debate is that the emerging countries lose out at the expense of the developed countries. they have the wherewithal to put these ambitious targets in place. a lot of concern leading up to this yesterday, overnight, we saw protests in paris. the french police and government
say they were not necessarily linked to this climate conference, but they were protesting about the environment . that should give you an indication that this will be a hard-fought accord, if, in fact, a decision is reached. angie: we sit here in hong kong and our skies get polluted, especially when those factories pick up. beijing's air was officially hazardous over the weekend. how does asia stand on climate change? >> asia is not immune, of course. many countries, many cities and are part of the world are sinking, they have flooding issues. jakarta, bangkok is thinking. this is video from eight -- from a temple. this is an all-out effort to try
to save this temple complex, this monastery, from sinking. from being inundated. sand balls, seawalls, -- sandbags, seawalls, whatever they can. this is an issue that is repeated in city upon city. manila, for example, and that is not even to mention the likes of typhoons. angie, asia-pacific will factor very prominently into these discussions. president obama's legacy will be the client -- climate accord. angie: i remember that tearful appeal from a philippine government official. super typhoons increasing as the years pass. >> many more victims each year.
angie: we will have more on these talks later on in the show. directoro talk to the in about half an hour from now. south korea has approved its first internet-only bank. two groups have been given the go-ahead. goal is aiming to revamp the banking sector that is suffering from slow growth and slim margins. said to be considering a move to win regulatory approval for its 107 million dollar purchase. no final decision has been made. the merger of sab miller would create a brewer with control of
half of the industry's total profit. spice jet has received interest from airlines looking to acquire a share. time toot the right sell. spicejet has reported profits for the last three quarters. bywill buy 150 new planes march. the value of the yuan is back in the news as the imf prepares to shake up its elite currency basket. ♪
response. turkish imports have been delayed at border points and russian companies have been told to stop hiring turkish workers. philippine air force has taken delivery of two fighter jets from career he -- from korea. the first of 12 touchdown, primarily training aircraft that have been upgraded to a multi-combat role. it cost manila over $400 million. the national league for democracy won 80% of the seats. the military backed government has pledged a smooth handover of power, but has stalled over key meetings.
have responded to requests for talks. let's get a check of the markets in the asia-pacific. 6/10 ofei 225 is down 1%. seeing some action over in australia right now. we are watching south korean stocks today. o, thismove for kaka after the country approved its first internet-only bank. investors are piling in. let's get more on the rest of the market play. you. very good to see was it you and everybody else that the rba governor's referred to when he said, chillout.
do you think he can chill out? evan: i wish i was the person who asked the question. he is about nine or 10 months away from when he has to hand over the reins. -- the comment came around the idea of how we will see any form of rate cuts in australia. that is why he said chill out. we need to have christmas before we get anywhere near that. it has put a flaw in the u.s. dollar-aussie dollar pair. despite the fact the metals complex is continuing in a bear market. affect theoil really
aussie dollar. it will probably be the least exciting central-bank meeting all week. saying,lenn stevens wait for christmas. is china the grinch that will be stealing christmas for australia? evan: that is a very good question. the equity market here is rather resilient, we do know china is slowing down. the grinch question is a very good one. maybe signs that the chinese yuan is being devalued. it has been shifting away. what is manufacturing like? what has happened in the trade -- in terms of the trade balance ?
year ofine year on australian imports into china have moved this year. whether or not that puts a major pressure on our market, the material space makes up 30% of the afx. has reallylowdown affected this part of the world. angie: i want to pick on -- pick up on something you said about the devaluation of the yuan. the imf could be including the yuan in the basket. could we see more devaluation and the yuan in 2016? see --robably expect to i do not know if you can use the word devaluation anymore. almost everybody is pricing in that the imf will add in the yuan to its reserves currencies. the question becomes, how much?
devaluation and the methods of intervention does need to be taken out. i think you will see that shift naturally. clearly, still concerns that exports of chinese goods are sliding. concerns,europe, big big double-digit declines. they do need to see a little more competitiveness. angie: a good point. meeting let you go, ecb this thursday. how significant is that? evan: significant enough. the question is whether the markets overpriced it. if you look at the two-year
haidi: these are your headlines. it is a crucial week ahead for the u.s. dollar, the ecb expected to am up stimulus and the fed reserve scrutinizing payroll data before the december policy meeting. payrolls and on friday are expected to show a trend of solid jobs growth. the u.s. dollar is primed for its best month since july. the bloomberg dollar index is trading at its highest levels in data going back to december 2004. india's economy as picked up pace in the third quarter. the economic growth picking up
to 7.3% from 7% the quarter prior. the currency is sitting at two-year low's this month. expectations of a december lift off by the fed. india's most accurate monetary policy expert says they will refrain from cutting rates for least to quarter. -- for least two quarters. japanese industrial output missing the mark. 1.4ber output rising percent. bank of japan governor is that to speak to business leaders letter this morning. the bank of japan is done with stimulus.
there are reports of a next her budget of 29 billion. jpmorgan saying these measures will be insufficient to reach shinzo all base targets -- shinzo abe's targets. angie: let's take a quick look at how the yen is sitting today after that mixed back of data. absolutely no move. a little bit of games for the dollar-yen. these are your stories driving the forex market this morning. angie: timeless investment, the luxury watch market right here in hong kong. stay with us. you are watching "first up." ♪
pledged cuts, signaling stronger political will than the copenhagen summit. of the had a reminder climate challenge. hazardous levels of pollution on sunday, prompting the first orange alert and 13 months. bhp billiton shares dropped after brazil said it would seek more than $5 billion compensation for the iron or mine disaster. disaster.e mine yet had anyhas not formal notice of a lawsuit. to join theexpected world's leading currencies later today. the imf meets in washington to decide whether to add it to its special ask it, along with the dollar, the yen, the euro, and a sterling.
the list is not been altered since the year 2000. managing director christine lagarde has already said she expects the yuan to be approved. let's stay with that story. we have david inglis standing by. it could be a very big day for the yuan. david: christine lagarde had already said she supported the inclusion of the remember be -- rmb. why the yuan should be included despite some of the shortcomings. she said it was already recommended by the imf staff. it makes sense for the yuan to be included. a few things we are watching. the devil is in the details.
first things will be the conditions attached. pboc to imf asked the stop intervening in the market? political reaction from washington another world leaders. importantly, this definition of being usable and widely accepted. it can mean a lot of things. if you want to put numbers to it, based on this report, the yuan was only seven behind the four already there and also behind the australian dollar and the canadian dollar. the egg. chicken and issue.gs you to another
for these holders to be able to hedge their exposure. if it does get included, how large of a weighting could it get? dollar, the euro, and the yen. the euro is 37.5. the yen is somewhere in between the pound and the euro. that.ave to justify david, thank you for outlining all of that for us. korea.ead over to kakao and kt are searching in
trading. spurovernment has moved to innovation in the financial sector and it could lead to unexpected winners. ry: we are talking about these chinese internet giants, alipay which and could be giving a boost from their korean partners. kakaoy, we have seen surged today for as much as 13%. also surging as much as 5.2% this morning. huge advance for these two companies. centurce telling us that ten is affiliated with one of kak ao's partners.
expectations for these internet-only banks. the financial services commission chairman saying establishing internet-only banks should inject healthy competition and improve the financial industry. kakao bank saying it will try to provide innovative services that existing banks cannot offer through mobile platforms. and youou were in seoul reported about this interconnected visual landscape that is korea. when it comes to internet banking, how big is it? known korea is very well for being the world's most connected country. financial services online has lagged behind countries such as china, japan, and the united
states. the korean government is hoping these banks will spur innovation as well as deregulation in the sector. angie: thank you for that. time for a look at some of the top corporate stories on the bloomberg terminal. yvonne: sony has revealed it is working on a ps 4 remote play app. the moment, the feature is only available on smartphones and tablets, but it will allow users to stream games from consoles to screens. pepper uses more than 20 motors and is capable of humanlike body language.
the parent company is planning to combine the property unit with its listed builder in a transaction worth more than $4 billion. they will pay almost $313 million cash to buy the unit. the remainder will come from a share sale to its controlling holder. shares have been in a trading halt since the beginning of june. those are your top company stories. we will have another snapshot of the demand for luxury in hong kong tomorrow when a rare watch is expected to set a new record. that watch. what is so special about this piece? watch?ou want to see my the watches on auction tomorrow are behind me. we have some close-up video.
that will give you a better idea of the quality of the workmanship that will be at auction. they world auction record is expected tomorrow when the gavel hits the wood. this is the first hong kong watch auction. it is going to be featuring 350 timepieces, both vintage and new pieces. the vintage ones are getting the most attention. you mentioned the one particular rare, one5, extremely of only two known to have been made in white gold. it is an automatic perpetual yearmoon faces and a leap indicator. 8 is expected to get between million and 16 million hong kong
dollars. also on auction, a couple of other very unique timepieces, including an observatory pocket watch from 1924. in 1931, it won the geneva timing contest. it could fetch as much as one million u.s. dollars. this is an historical piece, you cannot see it because it is so tiny. it is a pocket watch originally sold to the russian princes catherine in 1829 -- russian princess catherine in 1829. angie?tra pocket cash, come on down tomorrow. you have to ask about the china slowdown. we are not in a category of
luxury watch. this is so much more above that. the audience, they will be the uber wealthy. when it comes to luxury watch sales in hong kong, things have been slowing down. this is really a niche alternate investment. as you know very well, hong kong is one of the most important watch markets for watchmakers in the world. audio] angie: stephen engle getting a little bit more time to check out some more watches. a little bit of a technical glitch. we will be watching that auction for you. the philippines planning an important auction, millions of dollars worth up to meld of marcus is jewelry -- in milton marcos's imelda
its border control, it is offering rewards that could bring it closer to eu membership. afghanistan, iraq, and syria. a north korean missile launch from a submarine appears to have failed. told theal in seoul agency the debris from a ballistic missile was seen floating over the weekend and the sea of japan. under un security council resolution, they are banned from testing ballistic missiles. as many as 200 people were arrested during rallies commanding a global accord as the summit in paris. protesters clashed with police, who fired tear gas and response. a series of meetings were canceled after the terror attacks in paris.
our next guest says these talks could be more significant than the flawed protocol of 1997. joining us now is director for climate change strategy. after also fell apart copenhagen as well. why this optimism? >> the optimism is deserved. a lot of preparation leading up to the negotiation. they have a draft in place. a lot of leaders are rallying towards -- this time, it is different. angie: we have to take a look at what impact it will have on asia. the rallying cry is always, developed nations have already gotten the pollution in terms of
their cycle. we are just stepping up now. it cannot be a level playing field. >> the thing about climate change, it is a global phenomenon. it affects everyone equally. a very fair, argument from the developing countries. the other side of the argument, the current omissions are going up annually. they have to be part of the deal as well. angie: this carbon budget we are talking about, what are the political implications and the business implications? >> the carbon budget is a relative thing. .ne trillion tons of carbon
it is not as it every country gets an allocation of the budget. it is a bottom-up process. countries put forward their own pledges, as of what they would like to do. in china's case, what year. angie: finance will be one of the most important aspects. in fact, it could really impact negotiations. >> finance is going to be one of the major sticking points. developing countries require finance from developed countries implement the to climate changes. in paris, they will be arguing over certain things. the $100ey stick with
billion in 2020? which countries will provide the finance? pledged 3.1 billion. it?h countries will receive they will be discussing what the source of the funds will be. angie: interesting. give us a deeper sense of the business impact. which sectors could be most impacted? >> in a broad sense, moving away -- the major emitters include industry, energy, and transportation. the companies and sectors which will help channel us globally on a path toward low carbon,
renewable energy, public transportation, more efficient industry, they will see a benefit. angie: what are the opportunities for investors? >> investing longer-term, more visibility into lower carbon activities. renewables is a clear winner. reducing carbon pollution, any company which can help towards that transition toward a lower carbon. angie: of course, it is all predicated on following through any agreement. what about enforcement? what about that question mark >> -- what about that? >> the world is transitioning toward a lower carbon economy anyway regardless of what happens in paris.
submissions cover over 180 countries. they have gone back domestically to look at their omissions, -- there in missions -- their emi ssions. going forward, they will look at how to change their energy systems. angie: so we can all breathe a little bit more clearly. coming up next, more concerns on safety in japanese buildings as another company is found to have falsified data. all the details when we return. ♪
let's check in on what our reporters are watching this morning. >> japan display, look at that. angie: it's about time. >> apparently seeking an apple supply contract to supply screens by 2018. some of the executives are headed to cupertino, california, next week to lobby apple. thank you very much for that. >> i am still at a practice. they are planning to raise their year in dividend to ¥39 a share from 35 yen. they manufacture haircare
products. they have good recommendations. not getting that much of a boost. >> i believe we are seeing gains for company that has admitted they have falsified piling data. angie: the liability will be huge. anyway. that is the verdict from the stock exchange. trending business is coming up next. we have rish with a look at what is coming up next. rishaad: today, we get a decision as to what happens with
the yuan. is, will we get that happening later on? climate change, the conference in paris taking place. we see protests taking place around the world. that is what we have as we look ahead to a very busy week, especially for the united states. data coming out on friday. angie: what time is it? it is time for a huge auction of amazing -- rishaad: extremely rare. -- a price tag between eight and 12 million u.s. dollars. pool --e will have to