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tv   First Up With Angie Lau  Bloomberg  November 23, 2014 6:00pm-8:01pm EST

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>> changing strategy on chinese . miners are said to rally. >> elections next month and the support is falling. nothing to sneeze about. cap for surviving the commodities slumped. surviving the commodities slump.
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over the next 60 minunutes, we will be live in singapore and shanghai. at australialook and see equities climbing. the aussie dollar is strengthening. let's head over to new zealand. this is the gain today. the new zealand dollar spot is weakening. the japan markets are closed servics the country of laborntry observes thanksgiving. john dawson joins me right now. >> yes. the reaction is about australia being the biggest chinese trading partner and the open right now.
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you look at china for the growth and you see slowdown in the oreomy, for example, iron prices. all of these stocks are under pressure. close oncuts after the friday and it is good news because it means that easing will come forward. >> that is the thought. >> that is the thought. it helps the stocks rise. weakness is a reaction to the chinese. that is the sort of pop there could be. >> it spiked up like a rocket. >> after the close on friday. that is the reaction we are looking at. here are the gains. that one has fallen a lot.
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there are other ones to follow. i am pausing for effect. >> look at the liquidity injection, perhaps. if china gets more cash to grow the economy, this is what will be the beneficiary. >> that's right. more push for growth included. we are reminding the viewer's that the official cash rate was cut for the first time in two years. it was a big surprise. the one-year lending rate was cut to 5.6%. adre you will see chinese on u.s. trade reacting to the rate cut. you see the bank of china and the construction bank. everybody.surprising >2.75%.
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that is australia. we are waiting for shanghai, hong kong, and china. that is the crux of the market reaction. >> that is the key one. you have banking stocks and you are looking at the areas rising. again with the stocks and that is a good template. that happened after the close on friday in the u.s.. you will see -- in the u.s. you will see those rising and that will help you will the market. watch out for the bricks and mortars and the financials 2.5 hours from now. meanwhile, australia is a flurry. up.lurry that would a fund spread the risk of new
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investments. sources say the fund would be the key component in the investment program and would make use of the resources. announceexpected to details of the plans in the coming days. oil ministers are meeting and discussing a rate cut. byn favors reducing output billions of barrels a day. is at $80.60. cgn power is planning to raise $3.2 billion in an ipo. funds areign wealth saying they will agree to invest in the offering. 's 1997. --est ipo
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the largest ipo since 1997. demand was higher than expected. what can investors expect? inion is split on that and it is bigger than we were expecting at a share price. 24.5 times earnings. it was discussed that it would be priced between $1.55-$2.00. $2.15 is on the pricey side. that have been encouraging mom and dad investors to get involved. very strongas been
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and had to scale back the allocations with half of investors getting 80% of their application. there you go. 5.6 billion dollars australian will be added to the government coffers when the shares begin trading at midday on tuesday under the ticket code, mpo. it is the biggest ipo in 17 years. >> why was it up for sale at all? >> the government needs money, to put it mildly. and are cutting costs trying to raise money by selling assets. this is a timely windfall and the budget deficit at the moment is $48.5 billion. economic the midyear outlook within the next few weeks and that could paint a bleaker picture. it is a welcome cash injection
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and other studies are underway as to what other assets could be put on the block. that and was defense housing, the royal mint, and the registry business. government is in the mood to sell some assets. >> thanks for that. the take-up from the recently established shanghai stock link has been less than expected and it has not stopped the wider range of products that may soon become available to investors. what can people expect on mainland china? >> it has been a week since this started. arguably, on a lot of fronts, underwhelming. they are talking about expanding securities that may be made available to chinese inventors. -- investors.
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they are preparing for a future phase of the trading link and working in the hope that, at some point in the near future, chinese authorities will allow investors to buy and sell hong etf's. f's launched. we have a quote here from the vice president at nasdaq for iobal indices who says, expect that, in the near future, etf's would become an interesting destination for providers that have global businesses. it is a growth link being bet on. -- the stocky
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initially gave the mainland chinese investors to broaden exposure. hong kong had listed mainland chinese companies. the theme here is that that gets expanded beyond just china or beyond hong kong. there are a lot of growth areas outside here and it is not a bad pitch that is being given. these are the biggest stocks on the nasdaq and, certainly any etf would give you exposure. >> why not drive over these? >> china is exposed. apple, for example. we all know, of course. the greatk has firewall of china. aidu is part of the nasdaq. not an interesting proposition. it has yet to be seen if it will be allowed.
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>> the first week of the hong kong connect has come through. peter spoke about it. what did he have to say? >> he wrote on a blog. he is satisfied because it -- i -- certainlyphic one of the things that turned off investors was the champagne last monday. quiet.cts things to be many participants are waiting to see. they are still getting the hang of it and the big funds are getting a sense of how the untested trading rules will be affecting things. >> that is the bullish view. the bearish view is that there is no demand. marketconditions of the -- a lot of the stocks have been
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bought off and there is no arbitrage. it is unfamiliarity with the hong kong market. >> thanks for all of that. hong kong has a first this week. handbags going under the hammer at christie's in one is a design is made to be worth $60,000. art, antiques, fine wine, and jewelry. atll to come, closer look our top story with our first guest. off."ith "first
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>> back to the top story. pboc made a move and how it
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shakes out is with investors. they are focused on big rollers with small arms getting less than one third of the loans. will help outy the smaller firms. the move risks taking a step marketslenders stick to rather than private enterprise. let's take a look. us is richard, the chief economist at the bank of singapore. thank you for joining us. surprised? as far as we could see, the data has not been that had. le measure support growth. i think it is surprising they want to cut rates at this point. yeah. >> that may be the case. there are undercurrents of
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negativity. loansve nonperforming rearing their ugly head and housing figures. you saw them dropping. shipis a way to steady the as they focus on the measured slowdown? >> that is probably the right way to look at it. housing is the most worrying part of the economy and they have been easing policy towards housing for months now. must be quite worried about the housing market. i am not sure that a minor rate cut will make a lot of difference. it made ees some pressure on developers. may ease some pressure on
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the developers. biga is in the middle of problems with the banking system. cutting rates in a credit bubble is not necessarily the best way to deal with the credit bubble. if anything, you do not want to deal with that at this point. i am a little surprised about the signals coming out of this. >> the concern is the liquidity crunch for the smaller firms in china that may not get the results because of the money. do you think this is the right move that will spur more liquidity access for the private enterprises? >> i think if you worry about access to funding or small firms, you need to reform the
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preferencechange the for lending. purely cutting interest rates does not really address the problem. i think you go back to the broader financial system of reform they were talking about a year ago and that will take years to implement. as long as you have the shadow of nonperforming loans hanging over the system, you need to do sit -- you need to do something and you can push ahead to make the flow of funds more efficient. view on theour minor move with more to come here.
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-- come here? >> they have a tough balance they are trying to achieve and they need to except the celebration in the growth rates. you are adding to distortions in the economy. you need to except a gradual the ccept a graduala deceleration in the growth rate. theuld expect that on fiscal side. it can be rapidly implemented. we're not at the end of the support and there could be more rate cuts to come. there will be broader support than cutting interest rates. >> that is an interesting point. e is sitting rat at 2.75% for the one-year
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interest rate. thank you for joining us. a big week for retailers ahead with thanksgiving weekend. su keenan has more on that and other offense. -- and other events. is,he big question we ask can the winning streak continue? thanksgiving holiday is on thursday and the market will be closed. friday will be the kickoff to the very big holiday shopping season known as black friday, a day that retailers officially are in the black for finances on the year. among economic reports, the u.s. economy grows faster than a slower pace.
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u.s. homes show little change and that is what economists say in two separate reports this week. u.s. investors will be on the lookout for a lot of figures on economic growth from germany, the u.k., brazil, canada, south africa, and many eastern european countries. there will be a parade of earnings. some are hewlett-packard and tiffany's. i am su keenan. >> sports update. manny pacquiao says he is ready for floyd mayweather after dominating in macau. he floored algeri 6 times. he has not had a knockout since
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codo.t calling for stricter regulations in japan. we have a special report when returns.." ♪
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child pornography laws have, under strictly over growing debate over child idols.
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there is an online campaign calling for the removal of those materials. >> she was searching for candy. she found scantily clad girls. industry.e idol >> this must have been a glitch in the system. how could this be sold on amazon? amazon has candy around halloween. a campaign to stop online retailers. received so many death threats, we have concealed her identity for the story. they were available on japan's retail sites. of november 19, images of girls who appear six or seven
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years old who are wearing underwear, bikinis, and costumes. dvde are links to the producers sites. the company has declined to comment about the story. justandy dolls series is one under the idol category. legislationd related to child orthography that tightened the laws. anime, and computer games fall into a gray area. some was lobbying against based on freedom of expression. working with the police to block the chinese -- child pornography, this is what he had
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to say. >> it is difficult to say it is a legal. productsts of these are not mothers who want to purchase swimsuits for their daughters. mother's campaign had some success. the search for candy brings up sweets. dozens of other suspect items remain for sale in japan. >> the approval rating hits new lows. is there anyone to challenge him? we will take a look. that is coming up next.
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>> it is 7:30 and hong kong and it is the start of a new trading week full top the sun is shining and it was a big surprise on friday when china cut interest --es for the first times 12 for the first time since 2012. you are watching first of. -- up. ♪ miners rally in sydney as
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china changes strategy on stimulus. heading for the election in japan, the prime minister's support is falling. not to be sneezed at. pepper defies the commodities slump. the japanese prime minister says he wants new support for his survival -- revival plan. be's approval rating has plunged since he came to power. what are people saying about shinzo abe? >> they are not liking what they saw in the last two years. they are saying that, ahead of the election day, a poll taken abeikkei showed that 's support rate is at the lowest since 2012.
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they say 51% of the people are not happy with his economic alice he -- economic policy of stimulus and growth oriented reforms. omics.pose aben this is quite a blow. he was hoping to get a fresh lsterte to bo abenomics. he was going to delay the tax -- 8%rom a percent to to 10%. people oppose it. japan has fallen into a recess ion.
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the general disapproval rate for abe is at 39%. >> the official election date has not been announced and we expect that any time today. approval versus other parties? how does he rank versus other parties? >> there are challenges. of as do not have much choice and the main opposition democratic party was trounced in 2012 after three years in power and have not bounced back. you look at their support rate, for other parties, when it comes to it the support rate compared to the main opposition democratic party of japan. there is undecided at 45%. >> that says what current
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thinking is and feeling is. holds democratic party 60% of the seats in the house. this decides if he keeps the seats or loses some of the majority. abe.uld be a big blow for he would draw more criticism inside his cabinet and government. >> we are continuing to watch. thank you for that. in interest rates and everyone is asking if is the beginner of a dutch the beginning of a broader it using cycle. everyone is asking if this is the beginning of a broader easing cycle. >> they are saying it could be. i don't know. authorities, up until now, have chosen selected easing and
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injections at liquid -- injections of liquidity at the banks. they have refrained from cutting interest rates. the move would come at the end of the year. there was a cut of 40 basis points in the one-year lending rate and by 25 basis points for the deposit rate. saying thatnt is they are not looking at the short-term. many are saying that there are short-term worries after a deepening of the slowdown. it worries the central banks. that is what they have done. to have cut the rates and more could be on the way. the chief chinese economist builds athat the move policy shift that is more aggressive monetary easing and reflects government concerns term the mid-to-near
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growth. >> food of the cuts -- who do the cuts help the most? will we inflate asset bubbles if there is easing? there is a lot of risk. >> important questions. two thirds of the lending in china is to state owned enterprises and to small firms that are not gain access to capital. only one third of the lending to them. theythe banks, another have the marching orders, open up the loan books and lend to the enterprises that need the access to capital? that is the question. far as inflating asset
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bubbles, the prices here have not started coming up and that kind of takes the speculative nature out of this a little bit. in the past, new lending would go directly into areas of the economy that were given the highest and quickest returns, like robert he. property. we have seen an easing of the mortgage rules in china that is spurring the economy. prices keep falling. there is a lot in play and we will see what the next move is from the pboc. >> thanks. thers are surging after years.t by the most in 3 they are all climbing. theyr the broader markets,
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are climbing after 1% after china cut the one-year lending 2.75%.o i'm sorry, the one-year deposit rate. let's head over to new zealand and equities are climbing. all right. corporateor a look at stories making headlines. here is david. held provider will make a trading debut in sydney. the second biggest ipo. government share sales are expected in the month ahead. a newspaper says that the government has ordered a manufacturer to issue progress reports of recalls.
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40% of vehicles were still not repaired after the end of september. 2.5 million cars have been recalled in japan for all the airbags. get ready for mickey mouse of the chinese twist. -- thetional audiences cartoonsgreed to make for chinese viewers in partnership with state run chinese animation groups. those of the headlines at this hour. i am david ingles. >> here is something to spice up your monday when commodity prices are taking a tumble. farms are heating up. >> the farmers are hitting bank right now. 15-fold.has grown
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120,000 tons of pepper last year. so, talk about the prices. black pepper trades at nine dollars a kilogram. costs $13.r agriculture issues right now. it goes into the gdp for the economy and a half of the labor force works in agriculture there. was take a broader look at the commodities overall and you have seen them taking a tumble. 13% down and five months. that is different than what we are seeing in vietnam. market there,ort
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you can see the cotton futures down 30% and they are the biggest losers so far. second --at a soybeans come a t a second. vietnam is a place that is different than the rest of the commodities world right now. >> definitely. >> people are getting rich. >> relatively speaking. >> they can afford to renovate their homes now. >> yeah. >> there are daily instances of wealth. >> farmers are saying, i can buy a car. i am going to buy more land. they want to make more money. the thing that is fueling this is consumption. we love our seasoning and we love our meats. it makes my eyes water
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looking at the numbers. love love our meats and we our seasonings and that is fueling it. consumption has been fueling supplies for about eight years. there were trade reforms in vietnam in 1980 that opened up trade and farmers said they would produce more coffee, pepper, rice, as well. >> they are maintaining yields and production. they are focusing on exports. >> thank you for that. >> we stay with commodities. we look at the mounting speculation for output cuts with crude near four-year lows.
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likes it is time for a look at some of the events this week. get some background on
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the surprise decision to boost stimulus. policymakers could increase the monetary ace line dirty 3%. baseline as much as 33%. we may get an indication of how much damage retailers are facing from democracy protests in hong kong. tai fookhen chow publishes results. talking about green energy. the climate change campaigner will be attending a conference. he travels to the region after a landmark deal between the u.s. and china on curbing omissions. -- emissions. % fromices have dropped 30
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a peak in june. pumping is at the fastest rate in decades. with state a look at the meeting and the chief investment officer at alliance securities. let's start with opec. saudi arabia is at a tough spot. they are continuing to glut it out in the market. how will this affect the levels? -- effect the levels? >> we're seeing a lot of supply and we are waiting to see economies pick up consumptions. the markets opec, are divided as to what they are
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going to do. it will be quite interesting. >> what you think they will do? cut orey cut her palm -- pump it out? >> iran wants to cut. obviously, the kingpin, has to be cautious about what they say and do. they are trying to protect market share. if they are perceived as going out there and cutting, it will send the wrong message to the markets that they are worried about prices all in. that is the worst thing. markets will say, i will drive it further. this good present risk developing between the -- a r ift developing between the
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opec group. >> let's move onto iron ore. we are seeing a glut. iron or is putting more e on markets. what is the status for iron ore? >> what happened in china is fascinating. that, you can see the demand and the supply is going somewhere, albeit at lower prices. the more we supply, the more someone will take. i think it has to do with china resources ahead of the expected stimulus that we are seeing. it is playing nicely into the hands.
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web to see if the rally is short-lived. -- we have to see if the rally is short-lived. >> how short-lived are we talking about? we are seeing big searches for australian miners. >> how much work you have to cut and china to get miners to supply these price levels. a lot of these are producing at areas of break-even and, even a loss. supply thatt have is profitable, there are issues in this sector. given that china will go through the stimulus phase and cycle, it will certainly underpin supply. the question is whether the supply is profitable. ore records will fall.
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rse profitability for the mine has to be seen. >> let's talk gold, the shiny stuff. you have made revisions. >> yes. we have made revisions in our pricing's and we feel that we are at a significant low and are riseng for a 50% or 20% over the next 1.5 quarters. going intoney stimulus and that will drive it. guess.d, i >> thank you for joining us. checking our stories making 40 were hurt and 50
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homes were destroyed by a powerful earthquake in central japan. struck outside of nagano. there were dozens of aftershocks that toppled holdings and caused landslides. the area was hit by a large tremor the day after the fukushima earthquake in 2011. fromast of the wreckage the malaysian airlines plane has left the ukraine for the netherlands. of the malaysian airlines disaster has not been determined. russian television has shown pictures that they say places the blame on the ukrainian air force. 298 people on board were killed. afghanistan has approved a security pact with nato that allow security forces to remain
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in the country after 2014. 12,000 troops supporting and training forces. a suicide bomber killed 45 people at a volleyball match in afghanistan. our take a look at what reporters are looking at on the stock exchange when we return. ♪
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flights welcome to the stock exchange. we are taking a look. our reporters are here and giving thanks on monday and telling us about the stock. >> i am looking at the engineering and detected all indicators. they are saying that we're seeing signs of being oversold.
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engineering emerging did not go through. if you look at the korean history behind this and the history of conglomerates, they will try again and they may succeed. and i amwill try again looking at this in the long term. >> ok. rising.ore stocks are for sure. look at that. i agree with these guys. it is a buy. chinaorried about the rate cuts. >> how does that ever relate to anything? johne consensus view from
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dawson is iron ore. >> we are going to the second largest car manufacturer in korea that has had a tough month there and they said they will acquire anmillion to it is expected to last until 2016. we will see what happens there. >> all right. keep an eye out when the markets open. >> the non sequiturs blow me away. the non sequitur of the stock exchange. .e will be back john, i have my eye on you. miners rise on the back
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of the rate cut. counting down to the open in korea. with that you are watching on tv, online, or on the phone, this is first up.
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>> soaring in sydney, there is a jump that has been the highest in over three years. and china expects more rate cuts in the months ahead. and some like it hot. talking about the commodity slump. up," i am "first angie lau. let's get straight to australia
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right now to see how the stock is reacting to the rate cut there you have it -- cut. there you have it! led by mining companies and energy stocks. we have that dollar strengthening right now. cut itsafter the pbo .nterest rate to 2.105% it is interesting to see how the miners are reacting to that exchange. >> look at that dramatic gain. the numbers are up by 5%, and they are falling 50% per share. iron ore,stocks show iron ore, iron ore. an eight and a half
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the bigincrease, and one of course you can see is up by 4% here. that is the most in two years. and we are also seeing more here, these miners really are on a tab, and they are driving that steel increase as well. and we will show you the australian dollar which is here. on friday there was a significant pop to that, likenately, it did pop this, and that has caused a bit of a strengthening. this is reacting to the chinese rate riot. it is still about iron ore stocks.
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that is leading the investment stories in australia today so far. that china has cut interest rate for the first time since 2012, everyone is asking whether this could be the beginning of a broader easing cycle. china,sk our man in steve engle. steve, what is everyone anticipating this morning? the largesteen growth since 1990. some had predicted that they would do exactly what they'd did. the pboc, that is. is a much larger, more mature in economy now, so it can tolerate a slower pace of growth. after that move by the central bank, a number of big banks such chase,lays, jp morgan
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they think that the central bank will act again with another cut. the question is, when? that this signals moreicy shift towards aggressive monetary easing, angie, and there is concern about monetary growth and the desperate efforts to lower funding costs in particular for small and medium-sized business that do not have a lot of room a for capital growth right now. it, of you missed course, i will run over what the pboc did on friday. they lowered the rate to 5.6%, lower others to 2.5%. people resisted up until now,
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they were targeting the e-zine at measures and looked at liquidity, but what we saw in october was a deepening of the slowdown. that slowdown of seven and a half percent is very much in jeopardy, angie. steve, who do these cuts affect the most? what happens if there is too much easing? question, valid because if you look at the nonperforming loans as well, i believe they were at a nine-year high, there was concerns with a slowdown, that meant that the bad loans could surge. where did the borrowing go? that is the case. authorities claim these cuts are designed to help smaller companies get these lines of credit. there also meant to help depositors. the bulk of bank debt in china,
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angie, is still focused on the big borrowers. less than a third of the total is focused on the small of borrowers. these targeted cuts failed in lowering the costs. it question is, again, is will the bank take their marching orders from the tb oc -- pboc and get the economy working? >> thanks so much for that, out of shanghai. establishing hong could beks means they soon become available to chinese investors. david is here to explain what those could be. case it is the nasdaq. -- havedo have the here
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here, is curious we, the timing. we are already starting to expand the list that is available. right now we are talking over a couple hundred stocks, so now it is etf's. nasdaq is working with fund managers here and preparing itself for the future face of this trading situation. that is exactly the need for mainland chinese point managers who want to broaden their portfolios. the vice president for global next ines says "i fully the near futures that etf's become a part of this. " again, the underlying investment goodhere is a fairly
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proposition, let's talk about facebook, let's talk about google. momentum stocks and growth stocks are part of this. we are talking about the heavyweights, and we have seen those in the top eight in terms of trading on the nasdaq. we can see those on your screen. >> here is the interesting thing, hong kong is often seen as a catapult into china. what about this hong kong-shanghai link, now it's expensive to the rest of the world. >> yes, it goes both ways. it goes both ways. say that it 60%. >> it is fractional. have to sayrles lee about that, the head upon which -- the head of hong kong exchanges?
7:09 pm i read his blog over the weekend. they say it is going to be quiet, but you have a lot of these big funds and of course that is where we are expecting to see most of the volume interest come from. we are still waiting to see a lot of these untested trading rules go into effect. southbound traffic was substantially lower due to a number of reasons. lack oft have the opportunity, there is limited investor situations, so you have to qualify to get in. it is not your usual retail mom-and-pop investors in shanghai. and even though you could qualify or if you said you are interested and you're going to do it, you have to be familiar with hong kong. >> i think there was a poll
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taken ahead of the hong kong-shanghai interchange, and 100 than 200 of it -- about individuals or so express healthy interest. >> a lot of observers leading up to this, those that wanted their money to go to hong kong anyway before this, probably found a way to do so anyway. but it is a long-term thing. it should in inevitably pick up. >> interesting. ok, david, thank you so much for that. korea and your to are also seeing gains right now. yuan isan strengthening after china cuts its interest rates to 2.3 quarters percent. japan's markets are closed today as the country takes a day off for thanksgiving.
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and taxi drivers have appealed strike in hong kong. they are looking for a way to end police rollouts. and opec ministers meet in vienna this week. there is speculation about a cut in production. they want to lower production to lower than one million barrels per day. it is at eight dollars per barrel. he dropped 11% this year. china's biggest nuclear power country -- power company could raise $3 billion in an ipo, and they start to take orders as early as today. they are said to have agreed to
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invest in an offering. from australia, the largest ipo meadowbank --rer medibank. what kind of upside can investors expect? thought, theyn to were supposed to trade between $1.55 and two dollars, but the offer is two dollars and $.15 -- $2.15. it for anes institutional investor, and an regular institutional investor has a price cap at two dollars. the government has been very keen to get mom and dad
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investors within this. as you said, demands have been incredibly high. have scaled back, but most investors should expect to be able to get 18% of their allocation. there are expecting to deliver a dividend of 4.96% per share, and that is again according to the prospectus. we are watching it very closely tomorrow, and it will start trading at midday, we will see then if the market picks up this pricing, angie. paul, a healthy windfall here. but it also sounds like it suffered a windfall. inpolitical intrigue canberra, this is been going on for a while. lanby has -- jacky been feuding with defense forces
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, and now senator lambie has quit the party. if you see the gentleman on the , and, that is a ricky muir he was under the banner as well. he is gone as well. the government still needs six of the eight cross bench of votes to get legislation through the senate, and previously they isld rely on those senators a very convenient block to speak to. existt block does not anymore and it has completely fallen apart, so it negotiation has just gotten a whole lot harder. lambie ist jacquie working for, she is working for a better deal for tasmanians. she is going to vote against the
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regulation of the university fees, and she will be voting against tony abbott's hade parental leave scheme and against changes to pensions. tabledget, remember, was back in may. it is extraordinary that we are still discussing it. that shows how hard it has been for the government to get legislation through the senate. now it has gotten a whole lot harder. there is also talk of the prospect of nuclear options. -- oh boy! that would be something as australia faces austerity. cut isna says it's rate designed to help smaller businesses, that will the nation's lenders let it work out that way? we will have more after the break. ♪
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>> markets trading here in the readingific, it is arrows across the board here. over,e reached that mark australian currency reached 1.4%. now we join our guest here in the studio, a guess markets today have to thank pboc. moved to ay broad-based rate cut. cut in the rate is lower than the lending rate. this affects the real sector as well. >> do you think it is going to work? >> it should work. this should lower the costs. this would be good for banks who
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are showing signs of borrowing guilt. >> it is very concerning levels, is at a low since nine years, do you think at those levels but banks are going to be willing to lend out to private enterprises or smaller firms, or are they just going to go back to safety and lend out companies?rger >> when it comes to the corporate sector -- >> but they aren't the ones that really need the money here. you look at household loans, they are bringing in in money at aing much faster pace. one of the objectives behind the rate cut is to bring down banks,
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so the benefit -- bring down banks's rates, so the benefit would help other sectors. >> what you think the impact is on other regional policies? >> it should have monitoring conditions set up next year. boj announcing the changes last weekend, and then you have cutting rates, so it india,e to believe that thailand, and south korea will be cutting their rates in the six months. supportiveitely more to domestic financial conditions, and that should help growth and the economies. >> if that is what your crystal ball view is, let's look at a longer-term play. >> on a longer-term basis, there
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is structural reform. of course, it seems like the ministration is slowly getting its hands around what needs to be done. perspectivesuation , should remain strong. --hland could remain strong thailand could remain strong, especially in the tech sector. >> what about weaker oil prices in the u.s.? that could lift taiwan? >> taiwan should be positive. we like taiwan from that perspective as well. are of the asian countries poised to lower their rates because they have easier financial conditions.
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these are for the first six months of next year. that creates a decent background for these markets generally. >> always good to talk to you and we will see you next time. thanks so much for that. the principal global investor and portfolio investor here in hong kong. of ad the approval rating particular japanese politician hits an all-time low, we are going to look at the impact on the yen. that is coming up next. , will be right back. ♪ngie la
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headline today for monday, november 24. china is the region biggest -- region's biggest trade partner for neighboring countries, and it has lowered its rate. is stronger for the same reason, china is coming from a low and the markets will be subdued because japan is closed for the holiday. across the oceans, the euro is coming off of a two-year low. that draghi said on friday "we will do what we must to raise inflation." it has been going on for a seven month -- for the seventh month
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in a row. that is a concern. that was a spike in reaction to the market close on friday, and ,hina has the rate cuts here and here is the trading range here, we are to hear again from have 7901, that is similar to the china reaction to the kiwi, so the kiwi and the ozzy are reacting similarly. then if we look at the four x markets, -- the kiwi and the aussie are reacting similarly. this is what happens when we look at the 4x markets. vote came and met -- and afghanistan
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nato-u.s. security pact. a former mongolian prime minister has been seriously hurt in a road accident. reports say his car overturned near his private camp near long lakhdar --. we will be back after the short break. ♪
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were dealing with. good morning, it is a: 30 here in hong kong. -- 8:30 here in hong kong. up."re watching "first miners are soaring after china has rate cut announcements in the months ahead. rating of aoval
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politician thinks ahead of the election. the japanese prime minister says he wants a new support for his revival plan, but support from his dwindling number of supporters has plunged since he came to power two years ago. we have been taking a look at the latest opinion poll, and what does this really mean. are not happy, that is what this reveals. his approval rating is up the lowest it has been since he took office in 2012. we have the election coming up 5, and he has to sway voters. isfar the nikkei newspaper show the opinion poll said that his support rate is at its lowest. 51% of the household surveyed said they oppose his economic policy. that would be massive monetary 33 support his
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version of economics. this is an incredible blow to the prime minister. he was trying to get a fresh mandate to support his economic plan. of delay in that tax hike which was planned for october of next year, opinion is a little bit more mixed. if the 1% actually support his decision to delay that tax hike number ofhs, and a people oppose it. now that this approval rating disapproval at the highest level, it is a wonder where he will go from here. >> what does this mean for support from other parties?
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democratic party is doing pretty well. it was being trounced back in onlyonly after being -- after being in office for two years. the liberal democratic party of japan does not have a high approval rate, but voters do not have much of a choice. >> that is incredible. basically, he is trying to retain the majority that he has in the lower house right now at more than 60% of the seats. that will decide whether or not he can bolster his economic policy or whether he can push forward his plan. golet's see how many voters to the polls and how many stay home. all right, shery ahn, thanks for that.
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out the markets across the board today, except for japan which is closed for labor thanksgiving today. we can see that cost be -- kospi is up and so was the s&p. and here's john dawson. privateoy a's largest health insurance company will make its public debut tomorrow largest private health insurance company will make its public debut tomorrow. and get ready for making mouse with a chinese twist. group ishai and media trying to appeal to international audiences. trying to make disney movies for audiences across china. run partner with the state
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china animation group. that are spending cuts cause the tumbling of crude oil costs. there are 500 million more productive than the previous target. are the top headlines this monday morning, i am john dawson. here is something to spice up your monday. at a time when commodity prices are taking a tumble, vietnam's cap or are heating up. is world's oldest spice doing well. what is going on in vietnam? >> some people say they are going to buy a new bike, i am going to buy a new car, or i am going to buy some new land! tonsproduce about 120,000 of pepper, that is what india
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and thailand made combined. about pepper prices , a cousin they have skyrocketed about 390%, because they have skyrocketed about 390%, quite a climb there. they are about at nine dollars a kilogram right now, but we have wheat, soybeans, and cotton right there. --ton is down, and then soybean is down, and then cotton, and finally soybeans. -- finally cotton. >> no wonder farmers are feeling so excited about the pepper. what is fueling this though,
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what is driving this? >> it is really about seasoning here in asia. we really love our meet. asia, we have higher consumption. >> and people are getting richer and they are eating more meat. >> yep! it is also helping these farmers because it has a sickly opened trade for the international market. more rice, planting more pepper, and more coffee. i don't know if you drink of vietnam coffee. >> i was just there a few weeks ago -- >> amazing? >> amazing. their second to brazil and coffee production, so they're maintaining yield and they are maintaining production, and they are focusing on their numbers. >> thank you so much for that.
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spicy! [laughter] well, christmas is coming and overindulgence will certainly be on the menu. london isnt in focusing on the way we eat by going back to our early ancestors. take a look. is not about historical reenactment, it is about taking the sensible principles of eating and saying, this makes sense. i started out doing a restaurant with this concept and now we have opened london's best paleo restaurant. the whole point of the paleo diet is to go back to real food. vegetables, meat, eating all the parts of the animal. thing that is most areinating is that we always disgusted at how the body
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works, so i started studying parts when i started doing my diploma. we ran his campaign to get an extra 30 grand, and that was the premium difference to get into zone one. we had some asian investors and investment from friends and family. there were restaurants that were much cheaper, but because we wanted to do what we wanted to do, we needed to remain accessible. we were lucky because we attracted more investment than we needed. we still got a list of people willing to invest when we were willing to expand. this is probably one of the easiest meals to make. you have a big chunk of meat which is about as paleo as it
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comes. you have sweet potatoes and you and them in butter, paleo version of desert is quite easy, because it you replace a flower with a ground allman or you can make paleo ice cream -- almond orman and -- you can make paleo ice cream. can dinner any caveman appreciate. more details after the break. ♪
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asia's automakers are set for a challenging 2015. there are higher prices in
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manufacturing in indonesia, and a number of other factors affecting the industry. steve madden is here, and what are we working at -- looking at next year? >> it is going to be a mixed bag. there is a slower economy in indonesia which could impact auto sales, so that could slow it down. expecting a slight recovery just before the october tax hike, which is not going to happen now. >> right? >> so that recovery may be delayed for another 18 months -- >> until 2017. >> exactly. >> i guess the anticipation was before the second rate hikes, people would just go out and buy. >> yes, prices would be lower
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before the rate cut. thea is about two thirds of asian market, and if you talk to land rover or other companies, they are expecting sales to slowdown in 2015. we had a pretty strong year in the last two years. we were growing 16%, in 2013 it they are expecting between 5% and 6% growth next year. >> is it because of the lack of growth in china or because of congestion and pollution? >> those of the reasons, but if you look at the risks to growth and what is going to support growth next year, there is actually a bias towards a more risk. for example, you talked about the pollution, the congestion, and there may be more due to new car registration in the new year. probeve the antitrust that you have been talking
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about, so a lot of the consumers are actually waiting because they think of that rices may come down. so that is impacting sales. -- that prices may come down. so that is impacting sales. but we could see some changes next year in the suv segment, so they will remain strong in 2015. >> steve mann, thanks for joining us. all right, my next guest -- steve man, thanks for joining us. is right, my next guest going to talk about on the heels of what steve was talking about. auto sales. a third of sales -- two thirds of sales of auto sales, from china. there could be a lot of headwind for china. has doubled its numbers
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since four or five years ago. this is the new normal that china cannot keep growing at 20% or 25%. otherwise growth would be by percent or 7%. if you look at it, that is pretty significant. china isappening in five or six major cities have clamped down on the number of cars that can be sold in that city, and put an upper cap on regions in the administrative years, and also this has great a lot of problems that require solutions with pollution, and so regulations are expected to follow. so really it is about restricting, in terms of regulation and policy, but what
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about cutting lending rates at that we saw from china? that essentially helped spur some desire to help by cars in the rest of china? traditionally has been a cash down market. for whatever the reason, a haveficant chunk of sales been from people who bring in cash and buy the product. think it will work as positively as it should. >> let's head over to japan here, there is two things we are watching closely in the auto market sector, of course to contact be in the first -- of course, takata being first to form of. with takatahe issue
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and the way they first handled , there is a legal risk that is higher, there are specific japanesed the consumers are more likely to the problem to be solved and not likely to be as ruthless. but's talk about indonesia. very interesting, here. fuel subsidy cuts, but we are talking about a country that has an emerging middle class, they still don't have as many cars per thousands of people as we do in other countries. so what is the anticipation of
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outlook for indonesia in 2015? >> indonesia is a very interesting country and we are going to see a lot of action. however, we see kind of a slow down. last three years, asian markets have grown in double digit rates. was somebody that we needed to grab the bull by the horns to get this done. this will allow the economy to grow. something that is essential for the country to grow because they need that money to invest in projects which will in turn spur growth in the long run. -- it long run it is good is a good thing that is happening for the automotive industry. of opportunities, thank
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you for outlining all of this. come, we have and are exchange segment coming up. ♪
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>> time now for a look at some of the big events. on tuesday we are going to get the background from the j -- from the banks in japan regarding their recent decision. and then policymakers increase by as much as 30%. also on tuesday we may get an image -- an indication of how has occurredge from the democracy protests in hong kong.
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and a jewelry business said is business was hit by the protest. and al gore is in china talking about green industry. the former fight president and will bechange experts talking in china after the landmark deal between the u.s. and china on curbing emissions. and oil prices have dropped 30% june,heir peak price in and there will be discussions at the opec meeting on thursday whether prices should be cut. welcome back to stock exchange, we are looking at the trading underway in asia. engineering,ing at because technical indicators say
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that they were oversold, so now you are looking at -- >> not your turn! [laughter] coming onse this is the backs of last week, that giving korea part history of conglomerates, it is more likely that they will try again and probably succeed. >> what happened to chivalry, john? >> come on! >> i am pumped. >> ok we've got you, we get you. there is a number of pops in south korea, and it is one of the biggest and asia. we are seeing a massive resource rally. up, and itocks are is simply a play on that. >> ok, yes, you are the winner
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today. [laughter] the second largest car parts of manufacturer in south korea has just announced that be buying ang to plant there and developing smaller engines there. there are quite a bit of analysts recommending to buy with 39 buys, 37. one cell, but you know what, we but you -- one sell, know what? we are only one hour into the trading. >> it was not a surprise that there was a rate cut by the pboc . >> and of course in australia the iron ore stocks have really taken a pummeling sense the rate cut announcement. >> now how long can that last, that is the question? guys, thanks a much guys,
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that is stock exchange. well the latest film in the made hisames" series debut, but the third film could not match its predecessors. jay: part i" has received somewhat tepid reviews and is not being shown on the higher priced imax screens. it from us,hat is but we got is done, more bloomberg shows coming up next. ♪
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>> good morning. i am rishaad salamat. this is "on the move." >> the rate cuts and china is setting up a rally for iron ore miners in australia. the purse strings. the banks. on.ok of what is going very positive-


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