We have hsbc releasing their own data this morning. Lets take a look at the shanghai drop. It is a 2 drop today. Last week was the worst week for chinese stock in over a year. That is what is happening across these markets. Disappointing data, perhaps. A lot of speculation there. And the china market, there are a lot of big movers today. Which one is down for you . A few. Obviously we are following shares from h and ashares. We are watching if there are moves down in any other banking shares. The company is saying it may be forced into consultancy. We will get more on why later on. This Steel Industry in china seeing a bit of a pitch. They are down 3 today. I want to mention. The Mining Machinery is expecting a 75 drop in net income. They are seeing some pressure. Let me send it back to you. As david just mentioned, the president of chinas Minsheng Bank has resigned. What do we know so far . The details are still coming in and we have to rely on a beijing magazine for some of these details. We know that he has resigned as president of the lender. Minsheng was the first privately owned lender in china. He was a Senior Executive at the company that resigned for personal reasons. Now, it is coming out that he was taken away by the communist partys investigative team. It is still unclear what this investigation entails. It could be part of a wider corruption issue. The magazine is also reporting that he was stripped of his Party Secretary title. He held a very senior position. He was one of the youngest banking executives in china, aged 43. He studied public in ministration at harvard. He was wellconnected. In order to gain that level of prominence in the banking community, he had to have strong connections. This will be an interesting case to follow. We should emphasize and that minsheng said there appears to be no connection to the bank at this stage. We will continue to follow this story. Thank you for that. Kaisa says the ceo has quit to devote more time to his personal career goals. They have missed debt payment deadlines. Lets look at the fundamentals. He is the third executive officer in the company to leave within the past three months. In the last couple of months you have seen the founder quite as chairman and also the chief financial officer. The company had a approval for some of its projects in the southern parts of shenzhen suspended. It is being investigated. Kaisa miss a bond payment of 23 million. Their issues are backing up. Could sunac be the white kngiight . Kaisa bonds are falling. It looks like investors are seeing that it is not as positive as they had thought. There was hope that the deal would help kaisa pay it missed payments. Today a spokesman said he wasnt able to say if kaisa will be able to use that money for the missed payments. We are going to have to see whether it makes any difference in the long run. Trading was suspended on friday. Thank you. In other news, southgobi could be forced into bankruptcy after a tax evasion investigation in mongolia. The three arrested employees face up to five to six years in prison. There is no evidence to support the verdict. They will appeal. Greece is going cold turkey on a. Id. The government is still counting on a bail out from ecb. Members have indicated they would be willing to offer support. Greece has rejected them. President obama once a 19 minimum tax on money made by u. S. Companies overseas. He is set to announce the plan on tuesday along with a 14 levy on offshore profits. It could bring more than half 1 trillion over 10 years. You can get more on that and all of these top stories at our new destination, bloomberg business. It brings together the best of television and news in one address. That is bloomberg. Com. The super bowl has now wrapped up. The patriots have one in a lastminute touchdown. Tom brady has surpassed joe montana with the most amount of touchdowns in super bowl history. He now has 12. The new england patriots, two minutes ago, a touchdown. The score, 2824. That is the end of the super bowl 2015. Tom brady will be celebrating with his wife. Still to come, what were the most wellreceived ads in this super bowl . Up next, weakness on the factory floor. Will the latest data lead to more stimulus. China stocks have fallen the most in the last to go weeks. China stocks have fallen the most in the last two weeks. Lets look at the data. We have the hsbc coming in. The official was 49. 8 and a forecast of 50. 2. How much do you honestly read into this . It is so close. It is a good question. The China Economy is still expanding at an Industrial Production perspective. The important take away is that the last time we saw these sorts of pmis was in the back end of 2011. That was when the authorities in china did decide to roll out some cuts. We have reviewed that that is probably quite likely, possibly a company by another rate cut as soon as this quarter. I think it was the chinese in a very difficult position. We do have growth around 8 . Even though, ostensibly monetary conditions are even nevertheless, we are seeing this pressure on the manufacturing sector. Exports is slowing down. The property arena is also slowing down. Is this a significant red flag or is it just normal . It is not a red flag. Not as yet. I think we are still getting essentially discrete default events. This seems to be a lot of motivation to protect creditors both international and domestic. I dont see a broad fallout yet in the property sector. The external Sector Performance is less important in terms of contribution to direct gdp. We can see a little bit of that impact in the trade deficit numbers in the u. S. Over the weekend. Nevertheless, i still think the downward trend in growth will continue. I still think there is likelihood of some easing measures in the nottoodistant future. You already have what is the sense on the Trading Floor . We have growing concern over the default events. The Investment Sector is ok. We havent seen a great amount of volatility in that space. To be fair, we do expect them to continue over the course of the next year or so. Im thinking more of the higher property space. It would probably be unreasonable to expect that issue to go away. There seems to be a desire on behalf of lenders and also generals to reduce the fallout from that as we are seeing with kaisa at the moment. We are still getting quite a lot of issuance. I am reasonably comfortable. The antidraft has surprised me. Its a wider story. I dont know where it will end. I dont where the lines are being drawn. You are absolutely right. I think as a general takeaway, the higher sector is more vulnerable. I recommend for investors to focus on that higherquality if they want exposure to the china region. I must ask about europe again. These yields are stored in a really low. These yields are extraordinarily low. It is supported by u. S. Dollar debt across the board. When you have low bond yields in europe underpinned by the sorts of deflation numbers that we have seen printed recently clearly there is a huge amount of yieldhunting behavior from domestic european investors for highyielding names. That may be as simple as 10 year treasuries. We have seen the buying impact that has had on u. S. Yields. We are also seeing liquidity. It tends to be oversubscribed multiple times. A large part of that is coming from u. S. And european investors. It seems to be getting worse and worse. He can draw some parallels with japan. The fact is, there is a shrinking population. We are seeing debt several times once or twice the size of local economies. All of these are phenomena which are common in japan increasingly common in the euro zone. Low yield is a consequence of that. Underpinned by this huge amount of bond buying by the ecb. It is likely to continue. The takeaway is the high yield for us, tend to be a lot more attractive investment propositions for the european investors. We anticipate more capital flows. Clients over here clients over here, do they ask about europe . Again, it is absolutely the issue people are talking about. Will potential threats lead to the instability we witnessed in 2012 . I think lives are more focused on the behavior of the longer end of the u. S. Curve. That is linked to the slowdown in europe. It is fair to say that the u. S. Economy, particularly consumption, looks in good shape. The back and of the curve the back end of the curve is causing yields to fall. The signs are that it is going to continue over the next six months. Thank you for your honest replies. John woods. Up next, forging closer ties. More on that after the break. Welcome back. Singapore is boosting its focus on china. Sgx posted their first Growth Numbers in over a year. They want Global Investors to use Global Chinese products. It will boost its china account, it will hire a chinese executive, it will also double the number of workers in the next two years. It will go beyond the current arrangement of having just sales and marketing people in beijing. China products are important sgx t to sgx. Not surprising that sgx wants to boost their business, especially at a time where business at home is pretty much stagnant. The sgx suffered another disruption in december. What is he doing to address that issue . Expect an upgrade of its platform. It is under way. They are heeding the call from the authorities. They were issued a warning that supervisory action would be taken if needed. We know an investigation is underway and the findings are due next month. Sgx has to be really careful. There have been several incidents that could lead to a drop in market confidence. More than a year ago a penny stocks drop wiped out a lot. Last month, we saw the suspension of a bluechip stock. Sgx has to take action, has to take measures, has to be careful. They have to limit volatility to ensure that the market doesnt lose confidence in it. Banks. You are looking forward thanks. We are looking forward to business in tokyo. The yen rose higher than the dollar. Weakness on the factory floor. Chinas slowdown deepens in january. Asia falls on the disappointing data. Shanghai tumbled more than 2 . And, who made that call . New england beats seattle. Lets take a look at some other top stories. The australian journalist held in prison for a year in egypt has been releasedd. Peter greste was arrested with two colleagues in december of 2013, accused of supporting the Muslim Brotherhood in their reporting of damaging asias image and supposing a threat to security. There is no word of the fate of the other two broadcasters. Japanese Prime Minister has said he will never forgive Islamic State militants for the killing of two japanese citizens. Italya video released over the weekend purports to show that body of the second hostage. Protesters gathered around the Prime Ministers office to mourn. Australias Prime Minister has been answering questions about his leadership after he received a crushing defeat in queensland over the weekend. Tony abbott was defiant and determined in his speech. He was defensive. He handled his government record on things like boat arrivals appealing the carbon tax and the mining tax and getting the market back in order. It was lost in the noise of backflips and broken promises. Recently, their decision to give Prince Philip a knighthood on Australia Day turned tony abbott into a subject of ridicule. He backs down on a highly criticized policy for paid parental leave. He didnt address any leadership issues until the end of the speech when he said you elected us, you elected me to set up australia for the long term. His first question was on the leadership. He was asked if he considered resigning. This was his reason why not. We were elected in 2013 because the australian people rejected chaos. That is why we were elected. We are not going to take them back to that chaos. We really are not going to take them back to that chaos. It sounds vague. It looks like voters unleashed a sum of their own chaos in queensland. He cant possibly be as defiant about that. That was an incredible results. Just give you some context, the labor government in queensland back in 2012 with heavily defeated. They only had seven seats in the 89seat parliament. A came back to win over the weekend which was most unexpected. It was telling in many respects that tony abbott didnt make a single visit to queensland during the state election campaign. That was in the wake of his decision to knight Prince Philip. He has become a bit of a toxic presence. A liberal government in victoria only lasted one term last year. There is concern the back of the train related to national levels. As we take a look at the recent polls, there is a very handy lead. That with the tony Abbott Government lose 40 seats at the next election. Bill shorten is now above tony abbott at 50 . He said he wasnt going anywhere, which means his party is going to have to indulge in a rather messy bloodbath to get rid of him. He has a chance tuesday on message and tighten things up for the rest of 2015. He is going to need to. You are quite right. Lets get another checkup with the markets are doing. Here is david. Japan is just reopening from that lunch break. We are watching a few things. Obviously the floor was taken out of skymark. It is getting better. A 1 down for today. Now trading at only ¥30 per share. Japan airlines, another carrier in the mix today. Good news, though. You have the dividend ratio payout being raised to 25 . Let me focus your attention on these two stocks. Some pressure in earnings. You have chubu cutting their earnings. ¥161 billion in losses. That is larger than expected. Back to you. Lets move on to the poor and exchange markets. What are you watching now . There is a lot. It is going to be a busy week and weekend. As far as the central bank decisions. We had to go big ones tomorrow. I alluded to this. You have inflation coming out of thailand today. It is expected to show disinflation but it is continuing all across the region. Yet thailand indonesia coming up with inflation data. 32. 69, a little bit stronger than its u. S. Counterpart. Let it get started with india. It starts at 1 30 p. M. Hong kong time tomorrow. You have nine out of the 40 economists say theyre going to stay put. They wont be following up on that earlier surprise cut. The small minority says they will cut. Let me and on the on the dollar. Let me end on the aussie dollar. They could be the 13th bank to cut. My data shows contracting. Back to you. Is the price contraction in chinas manufacturing sector. A surprising contraction in chinas manufacturing sector. I dont think they will do a massive stimulus. They have art he said it is a lesson they learned. I think, so far, we are seeing some injection of liquidity to the market. The first cut in Interest Rates triggered such a tremendous reaction in the stock market. This becomes a constraint for authorities in china to further cut Interest Rates. Dominic schnider says the slowing down in china is affecting companies of all shapes and sizes. What i didnt like is that the Large Companies are showing a sharp decline in the pmi. The medium and small sectors are in trouble. Now we are think is bigger slow down in a large sector. That tells you it is not going to be a good quarter. First and second quarter, china needs a boost. The case is quite strong as you look at, on the one hand, a weak activity picture that we just discussed. On top of that, we have relentless pressure in the industrial sphere. We have falling ppi a lot of pressure on margins especially in the mining sector. I think that pboc has indicated those falling prices and would like to ensure that not too many buddies get into trouble. I think they will cut. They would like to ensure that not too Many Companies get into trouble. That crackdown in beijing on corruption and access is affecting all corners of society, including what buyers are looking for. I have been taking a look at how that economic move there is affecting the wine market. 118,000. That is what topquality wine cost nowadays. Or at least what serious collectors and investors think one bottle of this ordo is worth. One bottle of this bordeaux is worth. This is the first option here in asia. It comes than a curious time when bordeaux prices are at about 40 of their high. With speculators out of the market, only serious players are left in the game. Weather in hong kong, china, singapore, the philippines, you name it. There are a lot of wine collectors now. Huge, longterm wine collectors. We want to reach out to these people. Is a little bit of the market maturing on the one hand to the kind of disillusionment with the top expensive bordeauxs and their prices. It is an intelligence about not spending so much on very expensive items and being more conservative in this economic mood. If they do spend, many are opting for burgundy. Last year it exceeded bordeaux in market share at global auction. People have people have been drinking bordeaux for a long time. They think urgency is they think burgundy is the new trend. Sotherbys says bordeaux will get its crown back. Winemakers see possibilities opening up elsewhere. Rothschild says myanmar is the young market showing great potential. Coming up, 12 down already. Will it be 13 or 14 . Were going to see australia and india may join the red cut club. Welcome back. Joining us are david zeb, and john woods. My sense is that both are going to firmly move to an even by us whether they are going to pull the trigger right now. However, this comes on the tales last week of a whole range of centralbank actions. There is no surprising strengthening. There is every reason why i think Central Banks will remain as solid as they can. Im looking at the overall picture. You have 12, 13, maybe 14 Central Banks in a month. I think you are right that all eyes are on the fed. They are moving towards a tightening bias. There is a broad sense that central backs at the global level will pick up where they left off. The fed will likely tighten at some point this year or next year. We need to have some sort of offsetting or easing. What is the word from the floor. . I am pretty sure there is not some secret conspiracy theory. Dont worry, john. If you look at her performance from a year ago to today, there was a comment last week which caught my eye. That was this inclusion of International Developments as part of the assessment of whether or not or when to raise rates. He International Dimension is acutely important. I discussed earlier how i think it is heavily influencing the back end of the u. S. Curve. Yes, the u. S. Is strong. Increasingly, people are thinking how long can the u. S. Expand that deceleration at the global level . More particularly, that deflationary undertone that seems to becoming more and more evident in europe. The International Development comment is critical. If they start to think about that more importantly, i think for example, cities cause Interest Rates to raise. If we start to see the bit of a slowdown in consumption, the market is uncertain of when that will be. Some of these deals are negative. Some of these yields are negative. How hard can this go . The fed is signaling that the asian market is in robust condition. On that basis, there should be some rate hike. It is the International Die mention that is causing questions. What are market looking at right now . Earning season in the u. S. Looks good. From an equity perspective, we are looking more at valuations. There is some concern over whether that represents some value. Again, this is more of a larger Bigger Picture of the effect of kiwi and diminishing liquidity flows outside of the united states. We are positive on europe. The reason why is because we expect a boost from the kiwi exercise. We remain positive on the equities in the u. S. As well. The dollar has been a bit of a problem. Again it is absolutely a dollar story. There is some indication from the gdp that the Silver Dollar is having some impact now, particularly on dow earnings which tend to be more manufacturing base. D. If we look at the dollar and its potential its really important. I think we will see continued easing because of that. What is giving you the biggest fear now . It is the dollar. It is the potential impact of liquidity to lose out. It really is that story. We have to wait with bated breath to see if there is an Interest Rate hike, what that will have what effect that will have on the Interest Rate differential. Not only do we have to incorporate the stronger dollar, but lets also bear in mind the yen has depreciated since 2012 by about 60 . There is a huge amount of competitive adjustment. Just a return that balance. Unfortunately, we will have to leave it at that. Thank you so much. Coming up next, a Fourth Quarter comeback, a lastminute blunder, and the commercials. Japan is to get its first set of robot bankers. Some people will soon be greeted by a multilingual robots that offers basic Banking Services and speaks japanese but also english and french. Also, 16 other languages. Where was he when i was living there . More bank robots will be employed. New england Quarterback Tom Brady has joined the ranks of the greats. He masterminded a Fourth Quarter comeback for the patriots in super bowl xlix. It could have turned out so differently. In the final minutes, the seahawks were on the 1yard line. The ball was intercepted. 2824 and tom brady had 12 touchdown passes. He beat joe montana for the record. It is not just what happens on the field. There was also the merchandise, food, the halftime show, and the ads. Yvonne have the figures and the cast. What a game. We are also talking about the ads of course. 150,000 per second. The halftime show was very good. Katy perry is trending on twitter. Lets talk about the highlights. I think the chevy commercial was the most interesting. It happened right during the pregame show. The tv just went to black. It was talking about the chevy colorado that has the 4g lte wifi. You could watch the game in the truck. They are talking about the average super bowl commercials that are expected to generate about 10 million in added value. That was also a victorias secret advert. Ive not seen it. There is so much betting going on in this game as well. 100 millionworth of illegal betting. There were bets about whether katy p asia edgeeerry would show cleavage. There were several misses. Nissan was one of them. I think the one that caught lots of attention on twitter was the Kim Kardashian tmobile commercial. She makes fun of herself a little bit. She says there is so much data that gets wasted in the form of herself these. The form of her selfies. People say this is a loss for tmobile. I thought it was funny. Not going to comment on that. Good game overall. Really tight. Quite a victory. The following is a paid presentation for body beast, the fast proven way to build muscle and build your best body brought to you by beach body. This is as real as real gets. 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