Gains. Keep in mind, on friday, a lot of these markets attracted quite a bit of foreign money. Taiwan for example, this one is up about 0. 5 . 272 million, taking the week total to about 1. 4 billion. ,ottom three percentagewise fairly heavily weighted. In 1. 6 billion last week. We are going to see a little bit of reaction from the boj announcement. Also commodities, you have the dollar higher. Very complex. Aussie dollar, where are we right now . Second day of sharp the kleins. 87. 23. 87, basically. Have, manufacturing, pmi over the weekend, little bit of a slowdown. Still an expansion. We will get more details on that in just a moment. 99, 102. Int we were we are a little off that right now. Where are we as far as the yen is concerned . That takes us back, all the way back. I have to go out of the camera. This is december of 2007. After that, the yen strengthens from 115 to about 76 over the course of five years. During that time, a lot of japanese corporates moved overseas. Here we go again, back to levels of 2007. The question right now, the topic of conversation will be, is it actually healthier . What is the benefit for the economy . You have nominal wages more or less flat. You have them importing a lot of their energy cost. They are saying, 115 dollaryen before we pop open those bottles of champagne during the new year. Chinas economy confirms a deepening slowdown. The Service Industry fell in october. Our china correspondent, stephen engle, joins us from beijing. This puts more pressure on the end of year target. Is it going to be a hit or a miss . What are you hearing . It doesnt look good for that 7. 5 gdp growth target and it doesnt look like authorities are in any hurry to unleash broad stimulus even though they have relaxed the property sector. In agoing to get to that little bit when i talk about services pmi. I want to start with manufacturing first. We are getting a divergent pmi, whichm the hsbc represents the sentiment of private sector manufacturers. Hsbc pmi for manufacturing coming in at 50. 4, in line with a number that we got a couple weeks ago. It was the fifth month in a row in expansion territory. We also rose from the previous couple of months, readings of 50. 2. What we are seeing weakness in is new orders. Even though it did slightly pick up in october. The official manufacturing pmi for october came in at 50. 8 on saturday. Still expanding, yes, but the lowest level since may. Output, new orders, stockpile and expectations, sentiment, all slowing or worsening from september. That weakness in manufacturing is really testing the governments determination to refrain from broader stimulus, which they have resisted so far even as the economy is heading for the slowest fullyear growth since 1990. What about the Services Industry . Is that also seeing continued weakness as well . Coming from the statement on the official pmi, i can extrapolate to services as well. The government saying that the economy still faces some headwinds. There is weakness still in property. That may be goes a little bit of the way, but the Services Sector , while much stronger than the Manufacturing Sector right now, has been weakening of it. This includes banking, telecommunications and property. Atically, the number came in , 53. 8. Excuse me we were expecting about 54, which is the previous number in september. Pmi is the weakest services we have gotten since january, john. There is weakness even though the number is fairly strong in the expansion territory. Stephen engle there, many thanks. Steve and covering all the various reports over the weekend. Surpriseof japan stimulus move on friday has been one of the leading stories even this monday morning. , therea micra strategist is plenty of room for the yen to fall even further. A lot more upside on dollaryen than yen weakening. Originally, before the move, i 120cted more of a 115, trading range in the second half of 2014. I think we will see that within the next six months. We may even cross 115 by the end of the year. We were just shy of 113 this morning. A lot more yen weakness coming. Proves howsaid it serious japan is about beating deflation. Timing ofly is the it, not so much the action itself, that indicates the markets continue to be very serious about their inflation target. They continue to be fighting an uphill battle. Willing toerfectly throw the book at it. Citigroup agrees that the tightening the timing of the bank of japans announcement did take the markets by surprise. I dont think it was the actual decision, it was the timing, it came much sooner than most in the market anticipated. It came concurrent with the announcements that we saw from the gpif. We do view that as a significant signal. I think dollaryen is heading higher. I dont think there is going to be much chance that is the word on the yen from asia. Airways has debuted with declines on the thai stock exchange. They havent had a particularly smooth flight. Tell us a little bit about bangkok air. I guess, to be expected a little bit. They set their sale price at 25 baht. It is trading below that, around 24. They marketed within a midpoint of their range. The ipoed last month. Bangkok airways is the oldest private carrier in thailand. Overseas, mainly to Southeast Asian resort destinations such as malaysia, myanmar, as well as china and japan. The Airline Industry here in asia is moving toward overcapacity. It hasnt been profitable for a lot of airlines. Crowded skies to be sure. Dot does bangkok air want to with its newly raised money . They are going to use the money to buy new planes. They hope that will help them compete better in the market. They are buying 18 new airplanes from boeing, from airbus. They are also spending on aircraft engines, on parts. About 2 billion baht will be used to build new maintenance facilities in bangkok, also to improve the airport on a coastal islands. Ceo sounded more positive. He said the first half of the year was a bit tough because of political instability in thailand hitting the tourism industry. He expects to perform better in. He second half for freether news, calls. U. S. Registry authorities said more than 30,000 inspections were made for the incorrect parts which can lead to potentially fatal eruptions. The parts were found in cars made by nissan and general motors. He reported lost seven times greater than a year ago as it loses ground in this market the Smartphone Market. Sony posting a net loss of 1. 2 billion after writedowns and cutting its Sales Forecast for the second time this year. Facts understand is a big Smartphone Market and there are huge opportunities. Our priority is to turn business at this moment. We will consider expanding in china in the future. South korea announced a record trade surplus last month, the gap coming in at 7. 5 billion. The company shipped more steel pipes than computers to the u. S. The bank of japans stimulus may hurt parts made in korea. Looking ahead on the show, indonesias new government lays out the most important things on the agenda. We are live in jakarta. Up next, jitters for the end of qe. Never fear, the boj is here. Our next guest says not to worry about a rate hike. You are watching asia edge. Back to our top story. The Ripple Effect on Global Markets after that jolt from the bank of japan. We have fred newman. Economistse of three who called it . Unfortunately not. It wasnt really in the cards. Kuroda had come out during press conferences, we are still on track, so it wasnt really in the cards. At some point in the future. Nobody expected it to be almost immediate, especially after the broad hint about the oil prices, that perhaps impacting on the timeline for that inflation goal. Meet they werent going to their inflation goal, that was pretty clear. We thought it would be early next year, march or april. They started to move early. In hindsight, it makes a lot of sense. They had the gpif announcement. You have the oil price and you have the tax decision coming up. I think that nudges abe toward accepting another round of hikes. Big picture here is, they are driving the yen weaker. Howd the you look at the broader spectrum . Situation, for it to be driven lower and lower . And china suffer because of trade. The Global Climate is quite challenging. What we have here is certain Central Banks trying to export deflationary pressure. Japan is trying to import inflation, export deflation. Europe is trying the same thing. Other countries like korea are suffering because corporate margins are being squeezed. One big risk next year is that the chinese, who have held the currency i guess the dollar against the dollar, they want to import inflation as well. That could be a big challenge for financial markets. You said that a lot of people dont have to worry about it because the boj is stepping in. They just threw a log on the fire. The reality is worse here in asia. There is so much money being pumped in by the boj that we dont worry much about the fed hikes next year. Longterm rights will likely stay low. Bank lending by japanese banks into the region is likely to provide liquidity, allowing us to drive growth and credit for another few quarters. What is the worst fallout from this . The worst fallout is probably for the japanese themselves. They need to think about an exit strategy as well. The worry is that at some point, they need to think about what is drawing some of the stimulus. Im not clear yet how they are going to it is a long time. The deflationary pressure is overwhelming in japan. It is a false economy, isnt it . There is only a way to jumpstart things. It is not a sustainable policy. Have fiscal changes. Where is it . That is the big question. There is no plan b. Keep pumpingjust money all the time. The government must step in. Yes. It is all about the third arrow. For now, they are just doubling up. At some point, that is not going to work. [indiscernible] i wasnt born at that point. 54, that is also disconcerting. There is not a unanimous vote from the boj. We never had that much internal dissent. There has never been such a split decision. That raises the risk that internal opposition is growing. Even the boj is getting uncomfortable with what it is doing. We still think they have to do more to achieve a 2 inflation target. As i said, you cannot just move through monetary means. Something else needs to happen. Stick around. We have a lot more to talk about. , all at of Central Banks coming up this week with great decisions. Coming up next the latest on the hong kong double murder case. We are going to be live at the court when asia edge returns. The suspect is due any moment. It has been confirmed that a british man has been arrested in connection with the death of two women in hong kong. Police were called to the apartment where they found the bodies. Elon, what happened this morning . Ng, we just got out of the courtroom. The hearing happened just a couple minutes ago. We have been talking to the onduty lawyer that was representing him. So far, he has not been appointed a lawyer at this point. He was pretty stoic through this hearing. He did not a couple times. The judge asked him, do you understand the charges . He said, i do. The judge charged him with two counts of murder. We did hear more information about this investigation and the couple days following his arrest. He did request for his own lawyer. He also did request to talk to the british consulate but was denied on both requests during his time in custody. Right now, we do know that he was charged on october 27 for that first murder. We know the victims name is mi sei sumarsi. On first arrest happened november 1, last saturday, when someone called 999. They said someone something was happening. When they got there, officers found a body inside the apartments. Yfter further investigation the were able to locate a suitcase and in there was the body of another woman. That is the first victim we identified. Again, they did say they are going to have a Second Court Appearance on the 10th. One thing to keep in mind, they also mentioned that he may be willing to cooperate with police for a video reconstruction of the scene. It is a pretty usual practice in hong kong. Basically, they can bring the suspect back to the house, where they can record a reconstruction of the scene. He can talk about what happened. At this point, he has not entered a plea but he is scheduled to be back in court. Thank you for that. Other stories breaking headlines this monday, at least 49 killed in a suicide bombing in the busiest pakistanindia border crossing. A ceremony which had drawn about 8000 spectators. Police said the number of victims would have been higher but many people had left the area. Parts of eastern putine have held elections down by the International Committee as illegitimate. The peoples republics of donetsk and luhansk have separatist leaders that have done well. The ukraine and europe have refused to recognize the elections. Approached u. K. Airspace. Being show one soviet escorted by typhoons. Nato reported a spike in russian flights over the baltics, the black sea and the atlantic regions. There have been three times more interceptions than the whole of 2013. Looking forward to a meeting tomorrow. Shares 0. 3 lower. A threeday loss, the worst performance since 2011. All that to look forward to and of course, japan today is closed. Hong kong, the markets opening on a slight the klein. Slight decline. Coming down to earth, shares of Bangkok Airways are falling on their thailand debut. Gold tumbles along with the yen after stimulus from japan. And, not the goodyear blimp, the eye in the sky watching over singapore. Lets get the latest from the markets now. What do you have your eyes on . Im watching aussie minors. That is dragging down the overall session in australia. We are down about 0. 4 . One of the markets that is bucking the trend. Up. Lets take a look at how those stocks are trading. Stocks, here we go, 18 out of 19 are falling today. I can go through each name here, but suffice to say, we are seeing substantial losses. The reason is fairly simple. Gold prices collapsing friday, continuing to fall. Lets take a look at gold. 1173 this morning and we are down of further 5, 6 u. S. Dollars for gold prices. This is basically the lowest level in four or five years area years. Let me get the year today charts. That is different, about 215 u. S. Dollars. Lower compared to this year. Another contact that is taking a hit, silver. Is it up . The first time in about four or five years. Silver is trading below 16. About 22. That is weve lost about seven u. S. Dollars. We are seeing declines across precious metals. Lets just end on this. The headline numbers more or less ok. You look at some of the others, maybe not. Henderson group up 4. 5 here. We will work to get more details on this. Still, not exactly ideal. Thanks, david. Westpac shares looking like this in sydney. The bank posted its record profit after it came in with positive starts to the session. Paul allen, what happened . It was a pretty strong result from westpac, rounding out strong results from the big banks. Halfwere up 8 for the with full year cash profits 7. 62 billion. Ready much in line with estimates. They kept costs under control. Bad charges had fallen by 23 . They are gaining a good share of the market as well. The Property Market is running hot and west back like the other banks is doing nicely in that area. The ceo expects that trend to continue. She sees credit increasing in 2015. That is highlighting an improvement in homebuilding as well. Shareholdersfering . 92 per share dividend. None of this good news is enough to impress the market today. Westpac off just under 1 . Banking stocks in australia often behave this way around earnings time. They are priced to perfection and the market expects nothing less than stellar. Paul allen, thank you. Indonesias new government is cutting subsidies. An president made it essential part of his plan to rejuvenate the economy. Carol lina joins us now from japan. Do we expect the government to act on this . John, fuel subsidy removal has been a contentious issue for quite some time. Now, the government under president joko widodo will surely make changes to the costly fuel subsidies. The most critical issue is thethis country subsidies. [indiscernible] he illustrated that any money seen from the reduce of budget subsidies would be diverted for the development of infrastructure, agriculture, education and health projects. There is no relief for the plan. Governments will provide compensation for sections of society hardest hit by any subsidy changes. The amount is still being decided. Will also launch health cards and welfare cards with Affordable Health care and education. Many thanks indeed. Bangkok airways is falling after its trading debut half an hour ago. Of 10 industry ipos in the past five years are trading below their sale price. Nearly airways raised 500 million in its share sale and will use the cash to buy more planes. Warren buffett has some advice for potential airline investors. Dont do it. He has vowed never to touch Airline Stocks again after his experience in the u. S. Lets bring in our reporter. Cant airlines benefit from asias growing travel demand . We all know that asia is going to be growing in the next 20 years or so and there is potentially a lot of travelers that want to travel. The problem is, Everyone Wants to get into the game. You have new airlines popping up every year or so. Andncreases competition increasing competition means fares are going to be cut in certain ways. That is going to hurt profitability. If you are chasing those passengers, it is a great time to be a passenger in asia. The fares can be so cheap between destinations. Why are airlines in asia not making profits like their counterparts in the u. S. . They doing right that asia is doing wrong . Carriers in the u. S. Have to go through consolidations. Spurs they consolidations that happen in the u. S. We are not seeing that happen in asia. Everyone sees this market as an expanding market area everyone is adding more capacity rather than cutting back. It is a good market, a growth market, the problem is you have too many players. All right, thank you so much for joining us. From airlines to ships. Singapore has surveillance operations with an airship high overhead. Piracy and theof disappearance of the Malaysia Airlines plane. See 200adar that can kilometers in all directions 24 hours a day. Forget gridlocked roads. I give you the real flying car. Is it a plane . No, it is a car, just not in the conventional sense. Roadster is the closest anyone has come for making a vehicle for road and side. It runs on petrol. As a about the same length luxury car so you can talking on the street. It hits a top speed of 24 miles per hour. In the air, it has a range of 420 miles. It i mention it can fly . For exams facility a problem. However, regulations and a this from getting airborne in the u. S. And europe. Weekse and austria this aviation rules. I markets. You can still only owning a prototype, manufacturers hope to start selling them soon. The estimated price just over 280,000. Rates in focus. The response to the bank of japans latest move. A lot more in our discussion with craig newman. We are back after this quick break. Welcome back. Joining me and john now are david and fred newman of hsbc. So, all right. Going this way. The fed going this way. Everybody else going this way. What happens in the middle . It is almost a type of war missing that Central Banks. The main take away is that it will limit the upside for u. S. Yields. That is important for asia as well. The big fear we have is that Interest Rate are to rise. Look at the 10 year. It still hasnt moved. Even though we know qe is ending and the central bank in the u. S. Will likely hike rates. It is about the longterm curve. That remains well anchored. And deflationary pressures, we still have deflationary pressures. Core goods inflation is negative in the u. S. We dont see Interest Rate rising anytime soon. The bank of japan is going that way, the ecb going nowhere it seems. So far, but they have to do more. I think draghi is still trying to nudge the germans in the right direction. The germans have their own problem. They have low inflation as well. They probably need some stimulus as well. It is likely that they will continue to tinker with the program. Not qe for sovereign bonds, but they have to do more in Corporate Bonds for example. They have to tweak some of the settings. Just add more stimulus. I think they are not done yet. What needs to be done in order for things to move better for europe . World, you would get the major prime ministers and president s together and agree on something at last. Plenty of meetings, but it is really about structural reform. That just buys you a few quarters of confidence and liquidity. The underlying problems, that is something that needs to be done. I think ultimately what we will find is that the more these big Central Banks do, the less effective it becomes at the margin. In japan, we saw equities rally. Boostcremental diminishes. But the ecb doing more, doesnt it give other countries that should be reforming structurally they just dont have to because they have money coming in. Exactly. The german say, look, if we provide a blank check, nobody is going to do anything. I think the best thing would be a grand bargain. We are going to buy sovereign bonds but you have to agree to this program. The moment you dont, we stop buying your bonds. That would be ideal. There is too much of an institutional problem in europe. They probably would have to do it with france, italy, spain and portugal. We are saving too much and not spending enough. It is very important for asia. The qe stops and the bank of japan has increased. How does that affect us . Capital outflows from asia. Make no mistake, the fed is the biggest bank. It matters. Dollar rates still matter. To some extent, the boj cannot set that. What matters is not so much the dollar strength. Is longterm rates. As long as the boj pumps in money, u. S. Longterm rates remain low, and that prevents capital from leaving asia. That is a nice cushion. It buys us time. We have already seen some capital outflows recently. Dont want it to happen again, the taper tantrum. How does this all play out . The other Central Banks in the region, will this prompt them to start easing as well . To some extent, it has already happened. Twice and it is not clear they really needed to. Low,se inflation is currency was strong, they persisted with easing. Rate comesj, another on the table. Japan is here is that exporting its deflationary pressures. The other countries are absorbing that and trying to fight back. Too much think we have dependence on Monetary Policy . In, when else coming is the fiscal part of it . We heard from central bankers around the globe saying, we can only do so much. We are too dependent. If you provide free money to politicians, they will happily take it without imposing reforms. That is something we saw in the United States and europe. In japan as well. Because kuroda is doing so much easing, it takes away the pressure. Are boosting asset prices. What are the warning signs for disinflation and deflation . They are getting worse. We have more deflationary pressures today than we had back then. Again, centralbank policy can only by a little bit of time. It is not a solution. Nobody else has done their homework. Time is running out. I give the Global Economy another two or three years. Fix the underlying problems, Monetary Policy will lose its effectiveness. What is the most alarming thing for you right now . Is it japan, qe, the ecb . One issue is credibility about potential further ecb action. We know what they should be doing to tide us over, but can they push it through . If they lose credibility because that would be a big credibility blow for europe. I think that is one issue. The other issue is chinas currency problem. China is importing deflation because it allows its currency to deprescient with the u. S. Dollar. You saw the pmi today, week. If china besides next year, enough is enough, we want to export deflation, that would send Global Markets into how have oil prices changed the equation . We have seen substantial drops in energy prices. Probably something central bankers are looking at and scratching their heads. I think it is a positive. 100 billion for u. S. Consumers. Is temporary low leaf really. Dont see it as an unequivocal positive. Low Oil Prices Also reflect low growth. Ymptom. Si isnt this because of u. S. Supply in shale . It could be shale gas, it could be the saudis pumping too much. A substantial part of the low oil price is also slowing demand. If you look at china over the third quarter, they stopped buying. India even has lower purchases. Diesel demand in india is flat. Is in part because the economy is slower than it used to be. We have to be very careful in seeing it as just an unequivocal positive. Thes almost a barometer for health of the Global Investment sector. Thank you so much for joining us. Coming up next on tour with the jacksons. They launch a Talent Search across china. That is next when asia edge returns. Im john dawson. These are the top stories. Weakness all around. New data out of china, manufacturing from hsbc shows slow growth in october. Westpac reporting results for the year picking up from housing. Falling bad debt. Yearac reporting a full cash profit of more than 7. 6 2 billion australian dollars. Bangkok airways falling on its trading price in the thai capital. Now trading below their sale price. Bangkok airways raised almost 500 million and plans to use the cash to buy more planes. 50 years after their debut, the jacksons play hong kong for the first time. The brothers say they are looking for opportunities in china and jermaine has launched a music challenge search there. Jermaine, jackie, marlon and tito jackson werent much older than these tots when they started performing 50 years ago. I started at seven years old. To see the kids brings back memories. They are so happy here. That is so great. Very outgoing. They are not tucked in the shadows. I am sure they will do well in life. Michael obviously would have loved to be here with the kids. His dream, absolutely. How is michael going to be on stage with you in hong kong . In spirit as always. We do some of his hits as well as the hits he did with us. His spirit is always with us. Tito said, his spirit is always with us on stage. Never gone the jackson five was the foundation of the whole thing. When we are up on stage, it is like he is there with us. Much has changed in the pop industry the brothers helped create. Not to mention michaels runaway success. Jermaine says one of the biggest changes to the industry he sees is that labels arent as important as they were before. Because of social media, it gives you access to hundreds of millions of people. Spotify and pandora are not paying much. When you do the live performance, they all come. Touring is the most profitable part of the business, yes . [indiscernible] [laughter] on this charity night, the orphaned and underprivileged kids were all the more richer. Stephen engle, bloomberg, hong kong. John, you and i had the privilege of going to the charity ball that night. C. It is a b easy a the following jokes are raunchy and for adults only. I think i will have you sent up to mine. No one through a better party