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tv   Trending Business  Bloomberg  December 13, 2015 8:00pm-10:01pm EST

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>> monday the 14th. this is trending business. this morning market movers signs of nerves for the big day. asian stocks fall for a fifth consecutive day led by shazam. heading home, reports from china say the chairman of after being quote out of contact. -- the formern
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mayor of shanghai. the purchase of hong kong's leading newspaper will cost more than a quarter of a billion dollars. decision will be taken in the newsroom and not the boardroom. don't forget to include the #trending business. singapore taiwan and malaysia have just one line. hiding the japanese equities. have an unexpected breed. take a look at the nikkei extending. the sea of red. the fed meeting this week.
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we're also getting the oil story. over supply glut eggs to continue. that's set to worsen. we off by one 4/10 of a percent. weakness coming through there as well. china and hong kong both open. in his today after being pension as of friday. the chairman is back home after being out on tax and thursday. the company says he was at the -- assisting in an officially read.
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stephen engle is following this for us. what do we know russian mark >> basically what we know is that you may still be out of public view but we have been more than isolation of his whereabouts. he was reported missing on friday. the magazine 14 is now at home. the presidents yesterday's you had been assisting in a judiciary investigation and that it would end soon. he took a conference call and said the probe was most likely related to her small matters. arele in a situation telling bloomberg he's been in shares of itson
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many listed units have been suspended ins friday. they will resume trading today. 80 our new york plummeting. another 16% on friday. given that only event was that he was missing, not only is it one of china's most diversified climate conglomerate area did the private firm that has been extremely invested with international m&a 2010 area votto bought were invested in club med cirque du soleil, a new york icebreaker oma home studio the greek jewelry company a german bank and a number of insurers. it's that $5.7 billion of the last two years alone requiring insurance assets. the international unit in hong kong has $2 billion right now and acquisitions announced this year that have not yet been completed. the president on a conference call investors saying he remains
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confident in the company's cash flow and future. what for them to resume trading this hour. we'll take a more detailed look at that later on in the show. another story we are watching today, a slump in oil is assisting. let's go to the energy markets editor. tell us what is driving this down now. pummeled.ally getting there's a couple of factors. wti is trading around 35 or $36 a barrel. both of those are new the lowest
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levels of the 2008 financial crisis. the main driver or most recent driver is the opec meeting where they effectively abandoned their output quota. the takeaway from the meeting is essentially every opec nation for themselves. they will maximize output the goal is to drive the higher cost producers particularly the u.s. shale producers out of the market. in the meantime there flooding the market with more and more's of why. >> so it's every nation for itself. other signs of a recovery? >> there's not a lot that would indicate that would be bullish for oil right now. they're quite explicit that they went to boost production when sanctions are lifted. add 80,000 barrels a day or so of additional exports into the
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market. does not a lot of bullish factors. this thing they think demand will increase toward the end of next year and they will achieve a balance. others say that may happen next year. not a lot of bullish factors. sick a look at some of the other stories we are watching today. alibaba has picked up as china morning post and other affiliated media outlet for $266 million. the deal will include the newspaper and local editions of esquire l and other magazine. >> over in japan
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the central bank has released its fourth order survey on two fronts. they beat estimates but the business outlook for the next three was spent among large manufacturers area figure came in at 12 matching level from the previous forum. while it worsen to seven missing estimate. but their three-month out the went from 18 to 19.
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all industries went to boost capital spending by 10.8%. more than economists expected. part of the batch of data. no changes expected at the meeting this time around. talks of endedte with an agreement described as a leap for mankind and claims that the fight against global warming will meet unprecedented investment. require $16.5 trillion spending on renewables and efficient the. defend they will have to cut down on fossil fuels and the deal aimsarea to limit the global temperature increase.
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toore ambitious goal is limit the temperature rise to 1.5 degrees. that would imply bad cuts to omissions. 20ll ahead the outlook is morgan stanley chief asian economist will be here later on area plus the odds of a rate hike in the fed this week.
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yvonne: the fact, china, and commodities. what to expect in 2016. really great to see you. we see a lot of nervousness ahead of the fed meeting this morning. are we going to see the fed kind of really have the language on the pace of these rate cuts. dream up to for next year. think it's 80% popular. pretty selfish and the outlook. the hike would be pretty gradual. ends of 2016 the rate may
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still be around 1%. the rate may be up slightly from here. curve may lead to a more modest rate michael. >> we just seen not much movement when they win over the 10 year yield. income there'sed not a lot of risk involved when it comes to high-yield anymore. is that the same for 2016? >> 2016 will continue to be challenging for commodities. commoditiesgy and are doing quite well. is 1.5%.c people rate and that showed up in default.
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to triples related factors. a moment.ity in this moment it's a particular challenge. altogether energy is how it's challenging area it'll be ok. you still occasion bonds. >> ages surprisingly outperformed fixed income. in high-yield. on the historical five-year basis of the great. it's coming down to the downfall. for u.s. quick way.
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strong. next year it's too positive for asian bonds. reduced by 20%. supply from china. the 10% job. we continue to be here. race slightlyt coming from japan. we're still in the very low rate that's a fixed income. yet to be more critical. >> you continue to be bearish on asian currencies for 26 team. it's a latest headlines again. losing that dollar peg in a basket of currencies do you
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think it's a significant move more benign one? >> i'm not surprised. the logical way for them. i can see why versus the dollar day strength. but if you look at it. i think the chinese war may have the room to weekend. the currency. those the depreciated. if on that basket basis that means china is adjusting they have more room to evaluate that appreciate almost 3% from a year ago. on the basket basis it slightly overvalued.
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as a likelihood of three to 5%. the 12eve 6.7 or 6.8 in months. analysts say were going to see a turnaround after the. but your continuing to see further pressure now area and likes it will depreciate further. the depreciation is more than one. if it depreciates more than 1% asian currency. so we reduce the interest rate see isey'll follow i fixed in common public equity area will be suffused apart.
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the yen currency of be quite challenging area asian currencies were quite well compared to know -- north asian currencies. >> first quarter will still be really tough. >> these of the stories making headlines around the world. francis failed to win any regional assemblies. despite a strong first-round performance a week ago they were beaten by the former president and republicans in the north. nice over the same party. the 12 regions with the socialists took third place. withut was 59% compared the 8% last weekend. ecuador and sweden have reached the legal deal to allow julian
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assange to be questioned by investigators area the 43-year-old us trillion has been sheltering under asylum since june of 2012. they want to speak to him about an alleged rape. he denies any wrongdoing and says he will answer questions however he fears arrest and extradition to the u.s. if he leaves the embassy. the ceremony came as a destroyer fired a warning shot. the russian ship tried to butact the turkish boat when he came to within 600 meters it fired on thing the turkish boat to change course. >> india looks used to build its
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first high-speed rail line.
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yvonne: pharma following a similar amount after shares were
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suspended on friday on reports that the chairman was missing area we have learned he is said to be back home and sources a he was aiding an investigation regarding personal matters. india has turned to japan to build the first high-speed rail line countering the recent rise of china won a rash of deal signed by a weekend visit. looking at all the agreements japan andfar area india are both holding up their economic and military relationship. india's first. the $15 billion deal. japaneseg to require a
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company or japanese indian joint venture to work on it. this will be a big move ahead. going to link mumbai with matt that. there also agreements for japan to help finance the project. also nuclear energy corporations that agreement was a huge breakthrough in the crime for many. india may not be a signature to the u.k.. japan is been pushing for conversation. now it has been somewhat adjust. thestill has to go through parliament. also pushing the two nations
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together much more closely. like their defense-related agreements as well. probablyd say china is even more after some of these there's been agreements to -- for japan to join india. >> thanks for that. look at all of the opening numbers.
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asian stocks of started in the red. oil is still sliding. the decision later this week. confidence among big manufacturers held at 12 point. a wave of risk aversion half it equity market after oil prices fell 2008 lowe's.
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the company says it is confident about it cash flow and future. alibaba has bought the south china morning post. they are bowing to maintain editorial freedom. it includes local editions of this where al and other magazines. >> used about risk aversion that definitely the driving and cement regardless that are than expected.
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best of 2015. production also beating expectations. to the first ahead rate hike in a decade. of course playing on markets and investors mind. all around the expectation that the market ends of why will continue. we've seen that play out rosters energy had the market. qe stocks down. using the nikkei come down. and threeby two quarters of a percent. lower by 2%. shanghai is down by 1%.
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we also seeing quite a bit of sweetness coming true. asia singapore malaysia. just want to go through some of the supper watching today. the case of the missing ceo who has now been found. the chairman is one of the founders of the biggest privately held conglomerate in china area coming off a little bit of the load was on premarket. on the phone down by nine and 6/10 of 1%. a lot of different assets. it tumbled on friday. be keeping an eye on the shares
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was all the relations shares it is not just for those they will be a number of these across china's private sector. resuming trade taking a bit of a beating this morning. china's missing chairman is back home after being out of contact and thursday. what more do we know? >> a lot of reports. they're reporting that he is now -- they don't know that he's finished investigating they just had that the now home. they are not signing the source that he appeared in an internal conference this morning. i would assume that would be in shanghai. this is not surprising since shares versus ends on friday. the avr to come humbling. on thursday the story broke in new york times.
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full some international did a hong kong unit down 11%. hong kong down eight to 9%. shanghai listed a shares also down. why do we care? the site he said it is the largest rapidly controlled diversified conglomerate in china. it has been extremely active in pharmaceuticals. 5.7 billionnding dollars of the last two years investing in insurance. a number of analysts say that will be the biggest revenue contributor going forward. been on the acquisition front overseas. cirque du soleil club med. the greek jewelry maker.
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companiesf different also the hong kong listed unit has about $2 billion in outstanding acquisitions it is not pleaded. >> another stock we're watching of costo single or. that's the shipbuilding arm of a group. it fell more than 11 years. that's an the company said it would post what it is calling a significant loss in the fourth quarter. top hads climate delivered an agreement. againstclaims the fight the warming will need unprecedented in this. through $5 trillion 2030.
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>> it is quite an agreement. it involves 195 countries, so basically all of them. agreement to limit global warming to two degrees. the target is to be even more aggressive. we're already one degree about. question is how does this get implemented? a lot of things going on. if all identified ahead of time their contribution. you then have a great deal of diplomacy going on in paris. the describe this is a bit weak.
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in the sense that i would say doesn't do anything beyond what we were expecting going in. looking at it differently. we see great deal of business enthusiasm. it depends on where you are the value chain. they're actually viewing this is a call to action to direct their own investments. you look at some of the international oil companies taking a more measured approach there's some firms that if they have not waited they may not ever really wait. #brexit failed password it's not quite a failure. it's just a very limited scope. was created in the 90's implement an early 2000 and actually trained in the developing world in a way that made sense that doesn't even by 10 years ago. it did not include brazil or indonesia.
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these countries and a few other basically the entirety of increasing global mission. china became the world's largest fossil fuel consumer a decade ago. what you have now by including all these is a way to actually meaningfully engage not to stall the countries but the actual missions. >> after three years of discussion in hong kong the board comes for us. the law will prohibit unfair business practice is. asia competition law. in cahoots. we talked about this is a major milestone three years in the making. the question is are hong kong business is ready #>> this is
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big with all of these provisions coming in. i would say that waves are probably three kinds of behaviors. some businessmen are very ready area they have completed all internal lions reviews. there is ready as can be. category is businesses. they at the same time have decided to take more way. they are not yet convinced that this regime will have these. from the third category would be a vast majority of smaller businesses in hong kong. more of a struggle to understand really with these extras are all about.
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>> these cartel like arrangement as we mentioned pricing sharemarket how much of it do you still see happening in hong kong smart >> obviously with all of the education competition commission has had a bit -- a year and a half. but a lot of these definitely within certain sectors some of these neighbors are ongoing. able to understand whether or not these are the -- the these reallyys want to see -- they will be very determined to go after those -- that conduct that is recently
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issued enforcement guidelines against these practices. competition it's easy to understand whether the price-fixing are not. the whole space is sharing can be quite tricky. i'm curious to know even which sectors are vulnerable to breaching the lot that may not know that they are. would you be seen as a violation of possible violation? this ordinance really almost two major types of conduct as you said car sales and so on. the second is of use of the central market hour. there is no one sector. all of the sectors are concerned about this ordinance.
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you can understand by the very nature of the bees i would say first of all it is a natural withe engaged regularly business partners of the same level. there the business of having to share information. secondly markets in which attendance is ray regularly taken. thirdly i would say businesses that rely heavily on third-party contributors are risk. lastly, all of the businesses that have special market power basically means that any market that is highly will be more risk.
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concernere justified that this ordinance is really going to the hindrance for the current marketing function hong yes is> quickly in a way one regulation in a world where we already talk about regulation and in a region where this -- has its name on the knowledge of investment. clearly in that sense it's not great news for business. at the same time it is a very necessary correction. i would say one thing businesses need to keep in mind is they should not have a chilling effect. meanthe day this was not
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coming up next how many hike? several plan moves and months to come. this is trending business.
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yvonne: markets open in the region a lot of jittery nerves. the shanghai composite down half a percent. the nikkei 225 really down. 194 point down. >> look ahead to what we can expect this week and one thing is evident shoulders above the rest. that is the fed and it's entirely anticipated rate decision on thursday. >> we expect the hike this week.
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this really a done deal in your eyes? like i know now it seems like a done deal but i think the next two days will be critical to watch area the fed watches financial conditions. they see components the drive financial conditions. spreads it begun to widen the lot on friday area that has indicated a 15% rise. by that measure it already done the hike. it has appreciated. all of these conditions will be watched. over the next two days by the fed. this is dramatic in the market in the u.s. next two days of much a done deal. next year?
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would be a positive first half? waste that will happen in june. area more conditions importantly the plant will be finding it difficult, with confidence. the rest of the world still difficult shape. better than expected. japan's outlook still seems grim. >> the outlook is not so great. instantly goodta and better than expected. japan is in a solid condition.
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seeing the pickup and corporate as well as consumer balancing. expectations of them left behind. it will not use further. up right ok. challenge really is more from the external front. lowstic unemployment so inflation is quite good. we think the policymakers will not need. >> is talked about this extra but also says he has no plans to delay the sales tax in 2017. what gives here? >> i think the question is really whether -- where the third arrow comes due.
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the underlying growth next occasions have to be moderated. there are two components of japan. one is addressing the deflation risk. as is thedeflation managed. you look for higher growth estimate construction. some veryo better-than-expected numbers coming out from china. as the turnaround everyone was acting? that these policy measures starting to work. >> i think the challenge is to pull. to filter the recovery of the property market. the second is as we speak the you next chinald
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particularly the modern these -- that's affecting chinese i boards. this is not been so far showing that much. the underlying measures are working in the sense that it has recovered. there will be some improvement in production. >> thank you so much. next trillions of dollars of new investment. a look at how the paris climate change deal is changed.
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>> let's take a look at what some heads of state are saying. let's look at how stored this deal is. in paris there been many resolutions today. now president obama gave himself back u.s. president says this is you almost every country in the signed on to the paris agreement on climate change thanks american leadership. the former product california governor and celebrity on the celebrity them.
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the french president as well as the french foreign minister. this is now it's time to get to work. we the google chairman commenting on the deal and great to see a strong agreement of 21 climate change. google is committed to doing our part. richard branson also tweeting the paris the fact will ensure the economy of the future is driven by clean energy. a lot of people making their opinions known. >> single of the markets open in the region. hong kong joining in on this selloff. down 8%. the shanghai composite comparing losses.
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the nikkei 225 continuing to way down on asian markets this morning and have percent down in tokyo. the next hour challenges growth in output. equally grim warning here's your look not. you used to sleep like a champ.
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♪ >> happy monday. if this trending business. will be live in singapore, tokyo, mm by this hour. first, what we are watching this morning. stocks respond to nurse in the market at the start of the fed's big week. asia-pacific market is down for a fifth consecutive day. after the hong kong throughout mixed messages. heading home, reports from china say that the chairman is back home after being out of contact.
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the company's plunge on the return to trading in hong kong. doing a deal. the climate stock reaches what is called a historic agreement in paris. one that some say will require unprecedented investment. the deal is not perfect, but it is historic. let us know what you think of today's top stories by following me on twitter. a look at some of the markets trading here in asia. -- are things looking at the >> things are going from bad to worse. emerging markets are headed for their lowest in six years. investors are heading for the exits, taking risks off the table. the firste getting rate hike for the u.s. economy in about a decade. we are quite a lot of risk aversion when it comes to the selloff in oil and other commodities. to disruptsion
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output is not helping sentiment at all. we are expecting them up -- market glut scenario to continue into the near term. emerging markets index has dropped. losses really see the extending across the asian station. nikkei is at a low. low by two and 4/10 of 1%. all players are dragging. sydney is low by 1%. they are sitting under the 5000 point level. shanghai already quite volatile. coming off earlier 1%. lowering by a 10th of 1%. hong kong still looking like it is seeing quite a bit of weakness. i want to quickly talk about some of the stocks that we are watching today. when it comes to chinese markets, we have shippers and focus today. there are some of the biggest
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losers and shanghai and in hong kong. industrials -- at the industrial space, we are seeing some of these shifting groups. the shipping group is plunging in hong kong and in singapore. in addition, cosco holdings are falling as much as 23% in the early session. this after the chinese government announces plans for a merger creating one of the largest container shipping lines in the world. this is becoming under enormous pressure. greater consolidation out of china is set to really exacerbate that downward pressure on the shipping. i want to talk about the yuan. it is at its midpoint. offshore in particular is weakening for a six-day. we are seeing the greatest decline for the chinese currency since the august evaluation. that is when the evaluation
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created the trajectory that we are seeing as a last week where -- we have the rmb trading at 6.455. the new currency index is in line with that. this is an attempt by beijing to try and recast the one expectations are going forward. currency is a shift in how are the exchange rate are moving toward a trade basis when it comes to where the yen goes. keeping an eye on the chinese currency today. >> thank you. we are keeping an eye on shares with units plummeting. after zooming trade in the last hour, reports from china say that the group processing chairman is back home after being out of contact since thursday. steve engle is following this for us.
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give us an update. >> we can see from the stock how scared or nervous the investors were. once he was missing thursday. shares were suspended in hong kong and shanghai on friday afternoon. it had surfaced that he had gone missing. this is the main hong kong listed. down 9.5% in the opening hour of trade. also, the eight shares of the pharmaceutical is down 7.5%. also trading lower, about 5.6%. this is not necessarily surprising given his reaction on the adr in new york. they plummeted thursday by 11% and another 16% on friday. they were not suspended. the chairman may still be out of public view, but as you said, we have a bit more avonex the nation of his whereabouts since been reported missing. a magazine is reporting he is now at home and china business news is citing unidentified people saying that he appeared
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at an internal annual conference this morning. that thedent said chairman had said that his assistance in the judiciary investigation would end soon. he told the conference call that the probe was most likely related to "personal matters." people familiar with the situation told bloomberg that he has been assisting an investigation into former shanghai vice mayor. not only is he -- this one of one of china's largest diversified conglomerates, it is a private chinese firm that has been extremely aggressive with its international names. cirque du soleil, club med, a number of insurers. thanks, a jewelry maker. a number of different industries, lots of billions of dollars have been invested by him. ambitious acquisition hunt. >> more to come from those.
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detailed lookore at that story later on in the show and we want your opinion. please tweet us your thoughts. include #. alibaba group is buying hunt talk -- on john -- hong kong. it's boss is falling in the footsteps of amazon jeff bezos. pursuing the revival of a century old -- company news editor joins us now from tokyo. great to see you. give us some insight. why would an e-commerce company want to buy a newspaper? question.good alibaba is primarily an e-commerce company. their profits are growing quickly and revenues are growing quickly. like many newspapers, it is been heading in the opposite direction. they're fighting to hold on to their readers and advertisers. alibaba has interesting explanation for this.
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they say they see opportunity and media in china and in newspapers in particular. toe-chairman sunday letter readers of the newspaper and said that they plan to invest in the newspaper and expand and they feel like they will be able to combine their digital assets with the strength of the site -- south china morning post to be able to grow it in a way that is not been able to in the past. profit declines for the south china morning post for three years. what are the risks, politically and financially echoed -- financially? financially, it is important to member that this is not a big deal for alibaba. alibaba is a great big company and they have $50 billion in deal so far this year. two purchase price is hundred $66 million, so it is not that big of a deal financially for them. at the same time, it is kind of risky. they are buying a newspaper, an english thing which newspaper which has the highest profile in greater china.
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the risk is that if they are too critical with the newspaper, of the chinese government, then alibaba could say some criticism inside of china, perhaps some blowback and if they are too gentle on the chinese government, the mcafee some blowback from outside of china. they have to strike a fine balance and they say they will get more editorial independence to the newspaper and let it make the decision inside of the newsroom. >> thank you so much. let's take a look at some of the other stories we're watching this morning. >> thank you. this morning brought us the latest snapshot of sentiment and corporate japan. the fourth quarter is surprised on two fronts. confidence among large manufacturers and on manufacturers beat estimates for the view of the coming months. among large manufacturers, the figure came in at 12, matching the level from the previous quarter. their business outlook for the next three months is seven.
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among large not manufacturers, confidence in the fourth quarter came in at 25 matching the previous quarter at the three-month outlook, worse into 18 for 19. big companies across all industries have plan to boost capital spending by 10.8% this fiscal year. more than economists had expected. the survey covers over 10,000 japanese enterprises and is part of the batch of data the doj will scrutinize that the policy review this week. no changes expected at the meeting this time around. steelmaking and china has let production and has slumped to a 12 month low with output falling 1.6% in november from the previous year. china is the world largest supplier and it is already made cuts amid the slowdown and analysts expect more to come. is weakening as policymakers seek to steer the economy away from investment led growth. 200 and by consumer demand and services.
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goldman sachs is among banks forecasting further cuts in china output next year. unless, still prices recover. exports jumped to 22% to 102 million tons in the first 11 months. almost as much is made by japan which is the biggest, second-biggest producer in the world in the whole of last year. producers are chasing overseas buyers to affect weak demand at home. the paris climate talks have ended with an agreement described as "elite for mankind." they also claim that the fight against global warming will need unprecedented investment. the internationally energy agency says that it will require $60.5 trillion of spending on renewables and efficiencies through 2030. the agency says that governments will have to encourage clean energy projects and cut down on fossil fuels and deforestation. the changes will touch there is industries ranging from transport to construction and
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china's envoy on climate change has this to say about the deal, take a listen. agreementrue that the is not perfect. and there are some areas that are in need of improvement. preventingis is not us from taking what our historic steps. >> video aims to limit the global rise in temperature since the industrial revolution to two degrees celsius. >> thank you. show, up later on in the we will be live in mumbai to find out why the auto industry is feeling over india's latest measure to clear its skies. up next, a closer look at china and what is becoming a tuesday economy. jpmorgan's key china economist will be here when we return. morning. ♪
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yvonne: a look at the markets trading here in the asia-pacific. nervousness coming out of investors as we look ahead to the fed decision this week. the hang seng at 2.5 points down. risingi composite direction, up 1/10 of 1% coming out of shanghai. the nikkei is at 225. continues to be hammered. 400 622 point down. 2.4%. mixed data coming down. ising 1% down and the taiex seeing some losses this morning. looks like a widespread selloff. jpmorgan says that chinese growth will moderate further next year. says15 outlook, the bank overcapacity and high debt will be the key challenges. let's hear more from j.p. morgan chief china economist. >great to see you.
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we got some pretty uplifting data coming from china over the weekend. retail sales and industrial production all seek forecasts. what does this mean? >> looking forward to for a long time. it is not surprising. if you look at what happened in the last 2-3 months, there is a lot of policy adjustments happening. we had the rate cut. on the physical side, we have more dramatic adjustments, particularly over the policy bank lending and also the government expanding the local program. the physical capacity has been increased so that has been useful to support if you look at data. new project has also been taking a very big growth. we saw strength in the old drivers of china. you say the two speed economy will keep building for next year. >> i think one positive is that
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,f you look at the sector investment growth continues to slow down, that is in real estate. manufacturing, not as strong as infrastructure. that is consistent with the government talking about not repeating this old model. the strongest growth comes in the government supporting the auto sector. more portly, infrastructure investment. and the new consumption. still what is happening in china. yvonne: we talk about how policymakers are targeting more sub high sides of the arms. they're dealing with overcapacity. tax cuts. this is a very long-term strategy and we might not see anything in the short-term, but what does this mean when it comes to this trickling affect? we see this lead to more defaults, job cuts in the future? >> the new supply is a very new
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keyword in china. i don't think that means tax cuts, although some argue that supply maybe tax cuts. that overall tax burden will remain the same. this story in china -- my reading is that it is more important to talk about further adjusting to overcapacity, so cutting overcapacity and improving the productivity. that is the most important component. the positive reading sides, capacity process will continue into 2016. yvonne: will continue to see more defaults? >> there is a related story to overcapacity adjustment and the deleveraging. my reading is that they are trying to separate the issues by minimizing the risk of default but at the same time pushing the oil capacity adjustment. as they do that? the keyword is the consolidation. reform, it as silly
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is not about shutting down the company, it is about emerging and consolidation around the sle sectors. yvonne: a lot of headline news is about the end. they have listened the peg on the dollar. the new currency index, are we going to see further depreciation or is the government really trying to match the expectations of the yen? >> is a positive move. they move from a bilateral to a different exchange. china does not say that they are moving toward -- they made it very clear that the trade rates are the more important reference rate going forward. statement, they said that compared to a 2014, it will appreciate by 3%. by the and of november, so i think that the message is that in the near term the yen will continue to appreciate.
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the fed is getting stronger, so yes there'll be more depreciation. yvonne: thank you for your insight. these other stories making headlines around the world, the philippines have issued storm warnings for eastern areas and southern areas ahead of the typhoon. -- forecastedorn to hit later today. it is generating sustained winds of 140 kilometers per maier -- or i -- per hour. torrential rain, possible flooding and landslides. no evacuations ordered. ecuador and sweden have reached a legal deal to allow the standard julian assange to be questioned by investigators. the 43-year-old australian has
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been in london since 2012. sweden wants to speak to him about an alleged rape. he denies any wrongdoing and says he will answer questions, however he fears arrest and extradition to the united states if you leave the embassy. criticizedakers have suspension of new diesel vehicles and new delhi, part of a plan to reduce the capitals notorious mob. it has become the world's most polluted city. carmakers say that they will be left with unwanted stock after what they call an overnight ban on diesel. they fell more than 3% on friday. yvonne:, delivering on the deal, whether his the historic climate change agreement may come with a $16.5 trillion price tag. ♪
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♪ yvonne: this is trending business. i'll come back. the pair's climate talks have delivered an agreement described as a leap for mankind. it also claims the fight against global warming will meet unprecedented investment. international energy agency puts it at 16.5 join dollars through
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2030. bloomberg news energy finance spokesperson is here. tell us about the agreement. they're calling this a leap for mankind. >> in a lot of ways it is. if you look at it from that your ambition of getting 195 with the exception of north korea, syria and a few others. mankind on a limit to -force global warming. two degrees above the preindustrial level. there is even a target for 1.5 degrees above the preindustrial level. right now we are about one degree celsius above where things were anything hundred. you're talking about a remaking of a lot of the industrial energy economy of the world. if you want to meet a target like this and if you want to meet and these other countries. including one of the biggest polluters in the world, china and india. >> that's right. if you want to put this in the
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reflection upon what kyoto was like. it was a very 1990-era agreement. betweenery much split developing countries and developed countries. by the time you get to this millennium, to the world's biggest emitters are not included at all. china and india and brazil, south africa, indonesia, all these countries which are almost the entirety of the growth of global omissions, were not included, so what you have now is a little bit of a dissolution of this developed/developing markets but. it allows countries like china and india to take a meaningful role in meeting investment and reducing their emissions. yvonne: would you say optimism is the right word to describe the steal? >> from a diplomacy standpoint, is a masterful piece of diplomacy. have a structured it, who they brought in and win, even the logistics of making sure there was always food and nobody waited in line. my colleagues would call this a
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weak agreement in the sense that it is nothing brand-new. most of the determined contributions from countries were already agreed upon a long time ago. that is partly why this came together. we don't think the ground breaking we knew out of this, but at the same time, we don't see any disappointment. i'm a little more tempered in my optimism than they are but has a lot of the mechanics in place to lead to decompensation. yvonne: thank you so much for wrapping up all of that. could be optimistic. think you so much. india deepen economic and strategic ties and a nudge to china as they mean business. ♪
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♪ yvonne: top stories turning this hour, asian stocks have fallen the most since september. over the oil routes strain the nerves ahead of this week's policy meeting. is going toward its lowest level in on most 11 weeks. they appeared unimpressed. shares of those son plunged during the trade in hong kong despite the report of the return of the chairman. willes say we -- say he
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attend the conference. the president confirmed on the weekend that he has been assisting with an investigation reportedly into former shanghai mayor. newspaper. brought a the southill include china morning post for 266 million dollars and local editions of esquire, l, and other magazines. fallingand jack ma are in the footsteps of jeff bezos who bought the washington post years ago. a look at what is moving the markets. it seems like japan needs to catch a break. i think maybe investors need to go away and think about what they're doing right now because it a look at this. emerging markets as a whole heading for the lowest growth in six years. you spoke about the japanese
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market. the nikkei is lingering by 2.5% into the lunchtime break. slightly better than expected rate. sentimentlping the across the region. shanghai is a little bit lower by a 10th of 1%, we're seeing quite a bit of weakness across southeast asia amid an exit is for investors to get out of risky assets. heading toward a nice day of the climb. longest losing streak we have seen since june. a look at some of the biggest losers because we had better than expected data out of china over the weekend. oft rate we had for all 2015. industrial production will not spectacular, still beating expectations. still, stabilization is being read as a continued weakness and terms of sentiment.
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we are getting quite a bit of softness out of these big shipping names of mid-reports that we will get consolidation out of china. ocean china shipping is set to merge and will be consolidating their operations across four separate listings. china shipping is down by 27%. cosco pacific is down by 15%. china cosco is up -- all by 23%. an exit is when it comes to emerging markets. indonesia is heading for a two-month low. one of the two worst performers in asia. down by half a percent. on -- also keeping and i chinese currency. most offshore rmb. after china introduced a new currency basket.
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details are scarce, but at this stage, it could mean further weakness when it comes to the chinese currency against the greenback because there is a sense that they are trying to recast expectations away from just instability but toward a trade basis on where the chinese currency should set against the 13 currencies. a bit of a downside for cnh. trading at >> .5469. we are talking about the selloff in asia extending the global selloff that we saw last week. no good news am afraid. yvonne: not a great way to start the week. let's talk about oil. seven-year low. levels not seen since december of 2008. west texas deputy i heading toward $35 a barrel. let's go to singapore.
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great to see you. what's behind the latest drop? the focus seems to be remaining on the supply side and specifically the seemingly relentless oversupply in the market. international energy agency has predicted that the global -- will persist through the end of 2016. amid slowing demand growth. opec's decision to maximize production, the group is effectively decided to abandon its production quotas and a free-for-all in the market. it seems like every man for himself in every nation for himself. this sounds like a race to the bottom for the major producers. >> it seems so. opec strategy appears to be working so far as production
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from outside of the group. predicts non-opec supply will shrink at the fastest rate since 1992. however, oil infantry is still forecasting growth. particularly you have the prospect of iran exports increasing one's sanctions against that country have been lifted. it is hard to see a significant or rapid change in the market talents without some sort of supply or demand. the price war drags on. son --fosunose units plunge. the group's missing chairman is back home after being out of contact since thursday. we are watching this. what's the latest? referendumhe latest
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on how investors are looking at this. this is what they are telling us, mimicking what we saw on thursday and friday. the first time they were trading since they were suspended on friday. shares down 11%. shanghai frozen pharmaceutical down 10.5%. shanghai frozen pharmaceutical down a 6.3%. also a bit of a jump in the 2020 bonds. the biggest jump since its issue in 2013. the bonds have fallen on friday to the lowest ever. afternoon as yet gone missing. news that heg on intended an internal conference n headquarters.su
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also reports from a magazine that the chairman was back home after assisting in this investigation. we have reports -- we had the internationalosun saying that yet been helping out with a probe into the former shanghai by samara and that it was related to personal matters. the president also said he was of the groups cash flow and also the groups future. not surprising that the stock reaction given the overall uncertainty when the top man, visionary of the group has gone missing for a few days. we still don't really have a clear explanation of his role in this investigation. yvonne: you talk about how big of a giant this conglomerate is. there's an international push. how does the investigation impact that? --obviously it puts all of
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there on the radar in a different way. big expansion plans. they have interest in cirque du soleil and club med any 60 dory -- 60 story skyscraper new york. insurance companies. a german anglo bank. they have been very aggressive especially in insurance. they spent $5.7 billion in the last two years building and insurance portfolio. they have another $2 billion and listed companies and another $2 billion in the pipeline of deals that are not completed. i think they will still be going that we need a few more answers. yvonne: the stock continues to get pummeled. let's take a look at some other stories. volkswagen says the latest battery technology will mark a breakthrough for the company. the branch chief says that volkswagen's new flat battery will help used its lineup of electric vehicles.
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it involves new bottles to meet growing demand for clean cars. staffts from the internal newspaper says that he expects to see a rapid rise in demand for battery-powered vehicles as the range of models on offer expand. more than $2 billion raised in a rare bond deal. the sale of institutional investors includes ¥100 billion a five-year notes priced at around 0.29%. investors shrugged off retailers first loss encouraged by nearly $3 billion in cash holding. the issue is larger than the entire value of bonds sold by japanese retailers in the last three years. guam -- dquarters in hong kong newspaper sites greater china chief executive helen wong for its report. also weighing moving its global headquarters away from london to avoid new u.k. tax burdens.
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india has turned to japan to build the first time he'd roll line and a move aimed at countering the recent rise of china. it is one of a raft of deals signed during the weekend visit. looking at the agreement, putting personal relationships to good use. >> they have a good relationship. railing will be india's first coming up in the future. $15 billion deal. others include help to finance infrastructure projects like roadbuilding in india's northeastern states. other ones may have the china's interest because they entered some defense-related ones, for example, india and the u.s. have by annual drills and japan in the future will be joining them
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for that. an agreement to share classified information between india and japan. news, japan further exports amphibious craft to india. all of these defense-related sending a may be message to china that india and japan are going to work together and perhaps trying counter the influence of china and the region, both militarily and economically. china is a huge heavyweight in the region. both japan and india have their own tensions with china in very different ways. next, we speak to two of taiwan's presidential candidates as they prepare to go head-to-head in key elections next month. trending business will be back. ♪
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yvonne: welcome back, stories making noise around the world. marine le pen was being by the former president nicolas sarkozy republicans in the north. republican share the 12 regions with the socialists, pushing them to their place. withut was 59% compared 48% last week in. initial results from council elections in saudi arabia show at least 19 women have one seats. the first time women were allowed to vote in the country's history. the election commission says that of 130,000 registered female voters, 106,000 cast ballots. roughly 82%. by contrast, only 44% of men bother to vote. the commission says that women one in 10 regions ranging from
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riyadh to a small village near mecca. russian navy has taken delivery of two new missiles based at the black sea port in crimea. the storyinly came as of firing warning shots at a turkish fishing vessel. the russian chipset that try to contact the turkish boat as it approached but received no answer. the fishing boat came to within 600 meters and the russian worship iron prompting the turkish boat to change course. just months ago before the presidential election in taiwan, all say that the ruling candidate is trailing by as much as 18 points. withoke exclusively stephen engle in taipei and says that kmt has lost touch with the anger generation. >> the meeting is really a milestone for relations. elected, it would
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be good to move forward. meetings next year. >> how we are policies be different? will they be any different because what we are seeing in the poll numbers is the handshake did not give it a boost? did you expect it to? >> i did not expect this one. i mentioned to people, i said, this is the right thing to do. will't think this meeting have a direct impact on the election. people make a choice, they know the difference between two things. they already know -- of the party, you must have considered the rest to the downside it would have given the political climate in the poll numbers now? we know the reaction in taiwan whenever commons about the election prior to 2000?
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how did you consider this possibility? >> i recognize the atmosphere now as not for our party. past seven and a half puts thet successfully attack on kmt. too close to the mainland. the problem today in taiwan including the younger generations going to the mainland because of the policy. as chairman, we have to take this response from the younger generations and the response from the people. >> it dbt were to win the presidential elections and take control of parliament, what would be the obvious political impact, but also the economic impact?
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-- we big impact on kmt should do some reform. >> what? >> i think inside reform that we should change our policy and try to get closer to the younger generation, to the people. that is the change that we need. the other side, this is what i worry about, will the world give taiwan a chance again? localization, we have no time to waste again. beijing takes over, tried to isolate taiwan. do you feel like that would be the -- >> that is quite possible. yvonne: he also spoke with the front one or at a rally in taipei. he asked about the generational shift in taiwan. we are confident about that.
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we will do whatever we can to increase -- >> and your responses to some of the concerns of global investors of a victory? and raises the risk economically and politically for taiwan? >> a more efficient government to come. we would manage to maintain a peaceful relationship with china , so on one hand you have a very peaceful external environment and on the other hand you would have a much more efficient government to govern this place. yvonne: coming up next, delly bands diesel for federal and regional official cars, predictably, manufactures are furious. stay with us. ♪
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♪ you're watching trending business, i'm yvonne man, welcome back. ending carmakers are's -- serious at what they call an overnight ban on diesel vehicles saying that the ill thought out pollution plan will leave them with a pile of unwanted stock. let's crossover in mumbai. what is this all about? before i came to the automakers, i would like to very quickly address the climate change as india's concern. it is held to a brighter future. the new climate change agreement does not have any reference to historical reforms to annex and
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not nymex countries, including india. ensuring that the oliver conference of differentiation has not been jettisoned altogether. the delhi government has adopted a strict approach as far as steps being taken by the auto industry, which they say is contributing as far as pollution grows. on friday, they said that no new diesel ms of t registered and india. theay, a strong move by group against diesel has surprisingly -- not surprisingly has not gone down well. they are cautioning against making any such important decisions. following the feel price deregulation, and improvements and federal fuel efficiency and companies have also reduced the focus of diesel engine development. one of india'ss, largest auto companies is that any such major reaction is going
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to seriously impact infantry -- inventory. yvonne: thank you. a look at some of the social media reactions to the climate deal. we're seeing a lot of optimism on this deal, now described as a leap for mankind. french president commenting on how historic this deal is. he says paris has seen many revolutions and today is that most beautiful, most diesel revolution that is happened. well-known environmentalist and former u.s. vice president al gore also talking about this deal saying that today the nations of the world concluded a bald and historic agreement. president obama gave himself a pat on the back, talking about american leadership on getting all of these countries signing on to the agreement. former california governor arnold schwarzenegger also
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congratulated policymakers. he said it is time to get to work. businesses also weighing in on the deal, google chairman eric schmidt saying it is great to see a strong agreement to climate change challenges. it is complex and important. google is committed to doing our part. virgin group founder richard branson tweeting that the pairs of fact will ensure the economy of the future is driven by clean energy. a lot of positive reviews and optimism on social media. back to you. yvonne: thank you. that is it for a stretch of the business. stay tuned for asia edge where angie will recap the big stories of the day. including, everyone watching, countdown to lift off. we will look ahead to the big decision with mark mcfarland. bloomberg television, asian
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edge, coming up next. ♪
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♪ angie: that is a live look of to the central business district in hong kong. we are wrapping up the year here, but today, it is all about volatility in the markets ahead of the fed. we are live in hong kong, and this is "asia edge." ♪ angie: the top stories is our, memories of september, asian in three months,
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just days ahead of the fed's crucial meeting in washington. fosun plunges.s, the chairman is back after assisting an official inquiry. sinceg to levels not seen seven years ago. west texas is heading for $35 a barrel. also coming up this hour, hold the front page, jack ma takes up hong kong's biggest english newspaper. promising decisions in the newsroom, not the boardroom. that story and much more in this monday edition of "asia edge." >> keeping an eye on the state of play when it comes to asia-pacific markets and it is probably a day of selloff from last week. investors are turning risk ahead of the first reserve rate hike in just about a decade. we are also seeing the oil routes continuing. the sentiment is continue to play out.

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