And an announcement . And certainly it well. It will begin on monday, next week. There are still a few issues in and out but it does not seem hopeful that it may come. What are they . Tax and other regulatory issues . The taxes always been a major obstacle. A big hurdle for people to want to invest. While hong kong does not charge a capital gain tax, the mainland it does. They have not collected it and mainland investors are happy. Foreign investors need clarifying. Do we know what the hold up was . The timing is a bit precipitous, isnt it . It is. Numerous things have been mentioned from people we talked to were mainland the mainland the timeline seeing where cheap inc. Announced in april. Xi jinping announced in april. And there treasury secretary said today there should be an announcement shortly on that and some resolution has been resolved. That may have been the biggest Thing Holding it up and theres been talk about occupy central. En . What about shenz the interesting thing about where a lot of private companies have listed. All of the technology and consumer and health care. Those on the shanghai tend to be petro shine a and petro china , which are not offering the kind of growth you are seeing on shenzen. A lot are hopeful it will be extended and they can start hacking into the faster growing section. That is richard frost. What we have as far as the market action. Itselfg Kong Exchange and some of the brokerages. The hang see clearly seng Index Exchange today, really since the beginning of the day is the best performing index. It arose as much as two points above the technical level. Off the high, but nonetheless a top performer. The hong Kong Exchange stock phil, theyll up by 1 . I will show you if i can breaking it down and that is the internet chart. Look at the overall map picture. A pretty mixed picture. Australia andnd the states again bringing it up. Jakarta and all of these antione particularly and taiwan particularly. A look at the hang seng currently. Exchanges top of the charts. Of the last five minutes the number one performer, the best performer of the day. Stocks,he casino it wasly explains why one of the best performers in hong kong. Look at this. You can see the stocks are made relevant because the mainland of china accounts for 90 plus which is clear. Look at the stocks today. They would love to invest. If they can do that. Example. And Galaxy Holdings also seeing big games. Shanghai can invest in casino stocks. China is making the most from the attention all World Leaders meeting in beijing for that apec summit. We have our reporters across the main issues in a moment pushing for trade agreements. First, our awardwinning Stephen Engle was at the summit in the chinese capital. President obama is now in beijing and will be meeting president xi jinping and what we expect . Well, you are rock right. He arrived to a blue, manufactured sky. Not only rolled out the red carpet or the leaders of the 21 members of the aipac block but cleaned up the city quite a bit and shut down factories and cleaning up the air and president obama when he touchdown this morning in the 9 00 hour in beijing, was caused to the center of beijing probably sing the backside that they have seen for quite some time. What is he going to achieve . Facetoface time with it xi jinping is always good but he will be pumping his mainland payment of his shifts to asia pivot is his shifts to asia which has 11 members, not china. He is said to be holding talks with the leaders from those countries to really push this agenda. But china has their own counter to that. It xi jinping wants to craig create another asiapacific trade zone to counter tpp. What other things can obama get from the deliverables on this trip . Weakened by the midterm elections in the United States and xi jinping have a strong mandate here. Bilateral bit, International Treaty which can open up opportunities for american businesses. That could be one victory for obama. Other issues are going to be tough going. Cyber crime, regional tensions including in the east asian singing. Also discussions between china and the United States and the u. S. Would play a role. One victory could be if the two leaders are able to give a clearer definition of their stated goals on climate change. That is something well watch for. When they have their big summit if you will and also meet on the sidelines of the leader summit and in the northern suburbs of beijing tomorrow. Stephen, the talks are quite important with the u. S. , but we have another key issue which is weather. Will meet with shinzo abe. Do you have anything on that . I am ended up media center sitting across from a large contingent of japanese media and that are buzzing and are preparing potential video of the 2. They have not met facetoface since they both took office and theres been regional tension and the ease agency. Theres east asian see. Theres this grappling to see if it is going to be a full discussion or a handshake before the cameras. Way if theyeither get together, it will be significant step forward in those relations. They will take part in the giant group photo, a group photo today and another tomorrow. If they have one on one of face time, it will be an interesting development. Thank you for that. Australia is another country keeping a close eye on a pack with her optimism that a freetrade deal with china could be announcing in the coming days. Paul allen joins us. It has been in the works for a long time. Is it going to happen . It was i we are finally going to go to the freetrade deal. It was april 2005 that negotiations began. China had just begun negotiating the freetrade deal. ,n terms of getting assigned the plan is to rely on the right people. Prime minister tony abbott was there for aipac and chinas president s comes here to the g 20 summit, which is being held and he will spend more time and dressing power. The stage exists to get the assignment done. Australia expects the deal to be signed by the end of the year and there are a few hurdles that remain. Its pretty certain it will happen. What are those hurdles . What are some of the potential Sticking Point that could hinder progress . Agriculture has a the key trouble spot for australia. It is seeking similar, generous deal to what new zealand has for freetrade deal. From chinas perspective, a more streamlined way for companies to invest in asia. On a personal level, the Foreign Investment review board to extend exemptions up to 1 billion. None of these issues are a mountable and china has form to making lastminute concessions. The stage is set. Getting the deal signed is shy of 10 years after negotiations began. Paul allen in sydney. Thank you very much. Other news. Factory deflation in china. Prices are dropping for a record 32 months. We have metal prices following adding to the deflation. Like the speed rail heading to mexico even though later than what expected. The project had been awarded to a Consortium Led by China Railway but mexico did cancel, citing the doubts and concerns. China rail will be allowed to bid again. Are looking to raise about 1 billion. Slightly and they raised slightly more. Countinging ahead, down to the connect is good to go. We look at what we can expect. Up next, more analysis on what is expected and the apec summit when asia edge returns. Back to the markets. Bringing in our next guest. Ok, i talked to you about the stock connect, a big story. Lets start off with aipac. What will be the result . Re that anizar american president does not want to do the economy . Which is theipac sort of grandmother of all of this and then you have the transpacific partnership, which china was to be a part of the United States says no. For the life of me, i do not understand. All kindit is gotten of complicated political mechanisms behind it. Tilt the face, how do you a bulwark against china in this part of the world . To anda is going to have some way, if you look back and the pivot of china and people in beijing said, what does it mean . Are you trying to use form of containment here . The u. S. Does not have the military capabilities to pull that off and no troops were actually sent to the region. The opposite troops were pulled out. From the military side, it did not mean any and. On the trade side, how are you going to keep china out . [no audio] china is making their own deal. Tell us about that. It is an Important Initiative and start at the shanghai cooperation summit in september and of course it was just that theon saturday actual allocation of 40 billion u. S. Dollars as an initial silk road fund, infrastructure. There will be a lot of trains running from beijing and all the way to and moscow. They already have trains. That is the consolation. Indeedk road concept is what it is all about. These trains will go from beijing on the way down to thailand and singapore eventually. Where does it leave for the United States . The thing is that president obama has got probably more freedom to ask internationally given the midterm elections and hes is taken quite a battering internally for domestically not doing much. What do they do . The biggest problem and china, things are so bad and a look at the United States and say, isnt this real . Is this a real . Seemed to states has disappear from the international scene. That does not make sense either. It is paranoid and unrealistic. It gives you a sense or a feel of the way the United States right now may look. The opportunities that were there in the past. Past periods. You are calling him a lame duck president. I am not the only one. Politically, one of the magazine had a headline is lame duck swims to asia. Group discussion in about 20 minutes. Wow more from we will have more from uve. Break, sanctions. The new cold war scare investors away from russia. One man on a mission to change russias image. You are back as we check in on some of the stories making headlines. Ofbe europe, thousands leaders past and present of marketing 25 years since the fall of the berlin wall. 8000 balloons rose in the air. Watching chancellor Angela Merkel and gorbachev. Events. Rates the banker, facing murder charges is due back in court. He is accused of killing 2 indonesian women but has yet to enter a plea. Prosecutors are presenting arguments that he be transferred to the high court. To egypt. The sphinx has reopened. Three years a restoration work and was close in 2010 when cracks appear. They were caused by wind and moisture. It is one of the largest single statues on earth will step it is 57 meters long and six meters wide. People think it was created for thousand years ago. Of whatve a quick look is going on marketing wise. More reforms. More reforms in there. Seven points up at the moment. A slight is a client we saw in the session on friday. We saw int decline the session on friday. Korean stocks as a low. , asiapacific session so far. Here in hong kong that announcement of the Hong Kongshanghai connect and thats been dominating the trading day for theith gains casino. The exchange is seeing shares move to the upside. Hang seng, 1. 7 . Looking to the afternoon in tokyo, slight declines in the morning session. That was really pretty much down, slightly stronger yen. There we go. Independence could trigger a major change in the world of football in barcelona. That is not stopped the club from taking a stand on independence. To european and spanish football, this place is a fortress. Famous for its players like messi and the name are is weighing inb on the political games of the region. The fourtime european check in on a bid to vote for a breakaway. The club success is largely built from playing in the spanish link and the intense rivalry on the countrys capital. If it leads to exclusion from the leak, experts league, experts think it will lose a large chunk of annual sale is made. Many come from the deals with nike helping to trouble the revenue since 2004. Million is the largest [indiscernible] provide safety for the people, the same cannot be said for the regions best club. If they can produce clubs like this, they should not find it too hard to organize fixtures. Of the topicsook dominating the agenda. On tuesday, a verdict of the 15 thatmembers of the ferry killed more than 300 people. Prosecutors Second Amended the Death Penalty for the captain for abandoning the sinking victim ship. Ingles day in china big sales for alibaba. Day, the on this company turned over more than the twice of the gross merchandise. And from Online Shopping to online chatting, the company reporting earnings on wednesday. The biggest Asian Company behind alibaba has seen pushing to expand its mobile store. The world cup summit moves from china to myanmar. Well have more later in the program. Games for stocks in hong kong and shanghai as the exchanges had for a tie up next week. The airbag drama. U. S. Lawmakers call for a criminal investigation and takata plunges. Taxing times in japan. Can the economy handle another body. Levy . Vy the connect and use a week from today and the reaction has been instant. Debuts a week from today and the reaction has been instant. Corrects the hang seng is the crucial one to walk ou watch out for. This is the today shark, you can see it rallying two days chart, you can see it rallying up. The major indexes are below the 24,000 mark which actually ago but about two hours they are off that level right now. Nevertheless, gains. By one point 2 , gradually getting ground as the morning progresses. These stocks also rising. You can see from the example of the hang seng benchmark, across the board. This is the broker breakdown, this is the hang seng composition on the pie chart composite on the pie chart. P 1. 5 Financial Services up by 4. 5 . Which stocks are these . 11 stocks are rising in one is declining. Declining. One is politic asset holdings, broker. China everbright, one of the brokers. All of these are examples of brokers in china. Back to the main bar chart and the center of it all, look at the telecoms, industrial and consumer growth. Consumer goods and personal goods, auto and beverage. And then we go back to the services. , 17 risingleisure and for declining. Four declining. Galaxy macau. Casinos, 92 of the Mainland China business. Overall, the impact is that it allows International Money managers to buy a net 30 billion yuan a day. Illion we do not know the tax structure but overall the casino stocks, the hang seng the best performers. Japan, a strong yen is way heavy. How does it reopen . At the nikkei, it is a different dynamic and mechanic. By 66 oods is down. 66 . On the jobser figures, automobiles the obvious target. Now 1. 5 . Also, the car stocks. Food and beverage and personal goods, right across the region. Industrial stocks significant declines, tech stocks falling. The nikkei is the worstperforming benchmark of the day. Map,picture is the global the global asian map. 66 . Pioneer, ntt, all of these are exporters and are being hit because the yen a makes their goods more expensive to buy overall. China and russia have signed to do Energy Agreements including a second gas pipeline head of the apec summit in beijing. Western sanctions on ukraine and helps beijing ees power shortages ease power shortages. They may also see how talks between china and japan. Has been calling for a clear the air meeting with president xi jinping. We can look closer at the warming times between beijing and moscow. Our china correspondent is at the summit. They get over from there. Take it over from there. Is theright, our guest ceo of the russia direct investment fund, run by the kremlin to help attract investment into russia. China is an increasing partner. The anchor just questions about a second guest feel on top of the 4 billion deal that was signed earlier this year gas four totop of the billion dollars deal that was signed earlier this year. How do you feel about that . Feel that way between russia and china is growing dramatically. It is expected to become 200 billion pretty soon. The relationships are good and we believe that the joint investment is important. Just one collection, because is not run by the kremlin. Refund is not run by the kremlin. I should say a kremlin backed fund. Obviously there are pressures on the economy in russia the outflow of funds. His russia heading into a recession and how does that affect your ability to strike deals . It is beverly slowing the economy, we see the effects in thepe concern is that negative effects. We also see some courthouse in russia in industries that you need to programmatically, for example private health care is going at the present. Gains can be significant. An economic slow back is happening about we believe that vertical solutions will resume the growth. Political solutions will resume the growth. How difficult is it to attract in this climate . More difficult than before read it by partnering with leading up funds like those in china and around the world we continue to do investments. One of the most recent ones was the note between russia and china. Will increase our investment in agriculture with the chinese partners. How much . Roughu give a raf ballpark as to how much from china you expect to attract. Were talking about billions of dollars of the funds from china. The investment can more than triple the next three years or so. How much do you like to see china as they receive this gas invest in the infrastructure and the pipelines across siberia and into china . The investment will be mostly done by Russian Companies and russian businesses but this also creates lots of opportunities in russia. Because we are going to build a petrochemical plants and other businesses. We believe that china can be a big infrastructure investor, not necessarily in the pipeline but in other businesses around the infrastructure. In china, what deliverables can he get beyond the second gas deal . Are there other deals . There were 17 agreements signed yesterday in banking and other sectors, so there are lots of infrastructure and other investments going on. We believe that cooperation in the Financial Sector and logistics and other sectors is really happening right now. We have been looking at internet deals that benefit both russia and china. We have heard from the president xi, over the next decade there will be 1. 5 trillion worth of investment from china and he is also pushing the new silk trade route, reviving the silk road. How can you be sure that the investment dollars in the outflow of money from china will go north of the border instead of west to kazakhstan and on through europe . It is giving access to significant Natural Resources havingssia has, but also good conditions for chinese and other businesses in russia. The government is doing major steps to improve investment conditions. Can policymakers avoid a recession . We hope so. Well see. We send it back inside to you. Stephen beijing. Steve it in a beijin. G. The top story is the stock connect. Group members include the likes of goldman sachs. Mark, what was your reaction to this and why it is it taking so long and how to the mechanics work . This is a game changer for china. If you are an investor in new york or london you will be able to phone up your broker in hong kong and place an order directly onto the Shanghai Stock Exchange to buy and sell. That is a big change. In the past, there was a quarter and it was burden some quota and it was burden some. This is opening up china. That is a way china will be able to control capital. But it is a major, major change so we are excited about it. We are excited that we finally have the day and will be going live on monday. Our brokers are very excited, theyre going up in signing clients to be ready on monday. It is muted in size to begin with. Is that deliberate . That is correct, it is 1 or 2 of the market cap of both exchanges. We expect there will be expansion over so this is a pilot project. This is a way china does something, they do not go big but they test things and learn from it and move on from there. We expect the quarter will increase over time. We expect shenzhen to hong kong to be next. You will see moves to open up to london and paris, etc. There is a possibility of a fixed income connect eventually. People were talking about moving out of commodities from there. The point is that it is not just about hong kong or shanghai at the end of the day, it is two way traffic. How does a premium close up . Obviously you will see that close. Havewise you will arbitration opportunities onshore and offshore and those that have opportunities onshore will be able to bring prices. That is something that we will see quickly over months and not years. Even though it is a small amount in the beginning that will be enough to kind of pull those places back into line mark, thank you for that. Line. Mark, thank you for that. Lets look at all the other stories we are following as well. From the corporate side, yvonne. Airlines cabin crew are rejecting a deal that wouldve made them the best paid in the american industry. It was our old by only 16 votes in comes only a year after the merger with us airways. The recallxpanding of vehicles in humid regions. The recall is due to faulty airbags are it owners are being notified in the cars will be repaired. E3,000 cars may b affected by the issue, involving airbags from takata. One of on thes bestselling cars is underscore the in the u. S. Athorities are investigating power steering failure involving the accord. The gray was launched after a string of complaints from car owners. Inquiry was launched after a string of complaints from car owners. Those are the top corporate headlines. Have we seen the end of the bad equals good era . Not so fast, according to our next guest after the break. We are back. Joined by mark and yvonne. Storytalk with you, the dominating the headlines today is the stock connect between hong kong and shanghai. How much of the was is real the buzz is real . It is great for us. Well get more volume in the market. The hong kong volume has been horrible. Compared to prior to the crisis we are down 40 . Anything that helps that get back into shape without the Financial Services industry. It opens upe possibilities for Foreign Investors into china that do not exist right now. On the whole, a good thing. There has been a lot of hype. Osakae the seal of the exchanges saying that japan wanted to get in. Exchange the osaka saying that japan wanted to get in. I would network . How would that work . Now it is very small, and we expect china to open up. You will probably see shenzhen next but there is no reason you were not see a link to london or new york. This way they are able to control the pipe. If they have one pipe with japan going in and out and they want to squeeze that they can overtime. They are saying is within two years. Could that happen shenzhen within two years. Could that happen . I dont think so. It is an alltime high. Is a good performer but highly liquid. The market accounts is shanghai. That counts is shanghai. That is where people want to be right now. Look at the premium, eight are sent or 9 . 8 or 9 . Look at aggie bank, 12 premium. Right now what we will get is flow from hong kong into shanghai until the whole thing equalizes and then we will see how it goes. But shenzhen i do not think so. There are these quarter concerns. Are they going to be able quota concerns are they going to be able to fix that in time . I think the question comes down to tax. Heard earlier today that they said there will be a decision on tax and it will be there shortly but right now there is a lot of uncertainty around that. Our members do not know if there will be a Capital Gains tax are not on this. And if there is one, it is down to them to collect it and there is no mechanism in place at this point to collect it. That is the big, big question mark out there. Isnt Foreign Investors that will benefit the most or domestic at home . Right now, Foreign Investors will benefit. One in right now, shanghai could do so. That is an important thing. Foreign investors including hong kong. What about the hang seng . I think that will be interesting because my understanding is that the chinese investors i was there a week ago and they are excited about it. If you look at the chinese et it has done nothing over the next four years there it theyre getting an option they have not had before so they are looking for yield as well. This is something that can give them that. All of the factors that you vonn mentioned, do we know what led to the delay . They never said what led to the delay. The delay was technical. There was speculation that it was political. Conspiracy theories. I think that there have been a lot of conspiracy theorists , what happens of china sells all of the u. S. Treasury bonds . That is not going to happen. Who would buy them . Anymore more than occupy hong kong is going to delay this did. Is a coincidence that they are doing it on the day of the apec summit . Why not celebrate . There was concern about how long the delay would be. The launch is in november before the christmas break, before chinese new year. It will allow the momentum to grow behind it and for this to be a success from day one. Thank you for that. I will tell you about what we have coming up next. After the break, how burberry is gearing up for the season. We are back in two. News coming out for beijing here. President obama arriving for the apec senate after a long overnight summit after a long overnight flight. He will address the world media jinping today as xi aims at countering america a socalled pivot to the region. But switch to a lets switch to a lighter topic. Burberry has taken up residence in paris in the runup to christmas. We spoke to their chief executive on their plans and their growing presence in the digital world. Christmas is bigger than just the 25th of december. But it is the buildup to christmas. It is really about celebrating and storytelling again. So we have created. We have a little superstar in the film. We have designed pieces of content across all of the platforms. Some of the windows you can interact with and then it goes into the store and online. We are trying to join the dots with the story. A greatt see advertising image and that would link back to the windows and you go to burberry. Com. You are the first british brand to take over the windows in paris. What is it like to take over the fashion capital of the world . [applause] it is amazing to be working it is amazing to be working in paris with one of the most iconic stores. Wonderful is the creativity that we have had as we worked on those windows and the experience, the puppet making is incredibly beautiful. The way that they go about doing that. That is historic. Is there a rivalry with the french . No rivalry. It is a treat to be in paris, it is a magnificent city and many of our peers are here. Burberry is at the forefront of the digital experience and the campaign is digital. Is the idea of how we can combine a physical experience with something that is online. So we have worked with the Incredible Team to have the capability to be able to shop directly through tweets. Again, it is not the fact that it is a commercial vehicle, it is that if you can do that on different platforms in a physical location, why should you not on different social platforms . You are appealing to younger is is because the way we will spend the future is on digital . Is it because the way we will spend in the future is on digital . Peoples not younger old it is just integrated into the fabric of the organization. Engaging and storytelling and digital allows you to do that. With digital, i love the fact that things are instant. It is realtime and you can share stories and you can share your experiences and create your experiences. That is something that i think as a creative brand is a good place to play. A look at burberry but the big story of the day today the Hong Kongshanghai connect. Have a launch date, november 17. Date,have a launch november 17. There have been a lot of comments on that. This is it for the monday edition of asia edge. Heres johnny. From the moment he stepped on stage to the day he said goodbye the king of late night was johnny carson. He went right into the homes across america