Markets. To australia. Sx 200 is starting the day off in the red. Pretty much flat. New zealand this morning looks like this. Gaining half a percent higher. We are seeing strengthening in the kiwi. 82 u. S. Cents. Open cutting down to the in korea. Japan is close to celebrate the emperor first base. Apple finally has signed the longawaited deal to get icons iphone sellthrough china mobile. We are joined with the details from jays beijing. What does this mean . It means a lot to both players. For bothy hard fought sides. Six years of negotiations involving the top echelon of both companies. Tim cook has made this to hammer out the deal. Coming to fruition. It will give apple access to customers on chinas biggest network. In addition to those already using the iphones of the letter. This is quite a head start. There was a fever pitch for the iphone. That has cooled off a bit in china. I will get to the market share in just a minute. Is offered this since march 2012. There was pressure for them to strike a deal. This highend spending cuts in china. The big stumbling block has presumably over the homegrown cdma technology. 4g is now being fully rolled out. T is td ltd no others have adopted the cda cdma platform. They had refused to make a separate handset for this technology. China mobile always was the big prize. It has 700 60 million wireless subscribers. About 62 of the total users, apple has seen the marketshare dwindle. Done this. Els have other domestic players are outselling the most expensive phones. This is important. It removes the competitive disadvantage that we had talked about in the beginning part of this report. It is drying in higher and subscribers. China mobile has announced it will offer four g in about 16 cities by the end of this year. That will be a big boost as it rolls out the higher end smartphones beginning january 17. Fin preordering begin preordering this month. Thank you. Lets remain in china. To cash crunch continues deepen, sending them to the exit. We are joined with the details. We have watched this a merge all last week. The fear remained steady, still. We have seen that things will get better. These looking at borrowing costs in china. Is the liquidity situation that is continuing. Please are above 8 . We are still very far from this peak back in june. For an investor you are really thinking ahead. Will take my money out before things get better . Here is what we have. We were at seven percent on thursday. In market is is not exactly very good spirits. There is no indication that they will be injecting cash. A 10thd be heading into day of declines. This is a picture of the overnight in one week. These are the Interest Rates. Increasesthe overnight. I forgot what it meant. Keep in mindnt to that as he moved toward this thats there is upward pressure on this. Well try to hoard cash to meet these quarterly and regulatory requirements. You can think of it as halloween as kids expect there to be free candy. They did up the reserve requirements for banks. There is that higher standard of regulatory reserves with garments. Riddle me this. Is this a trend people should be worried about . This a year in phenomenon where things are looking at their requirements. They are keeping that in reserves and companies are hoarding cash because they need it. They are withdrawing liquidity from the market. Is it seasonal . It is a seasonal factor. Obviously. Companies need cash. Of thelook at the views top brokerages on the ground in china, and they are mixed, it does give you an indication that no one knows where things are going. Even though there is a swordfish of cash, Government Spending will plug the hole. Limitednk they will see repose which could send the signal that they will not let the race callahan. Does not mention. This is where they are supposed to do given the amount of debt in the system. Theres only one way to do it. True loosening of allowing it to be more liberal and be more market flowing. Other stories making headlines, japan has announced a record budget for next year. They have adopted a 920 billion dollar proposal starting april 1. It will be submitted in the new year. Shinzo abe i want to boost spending on Social Security trying to contain japans debt burden. Bytbank recently this and maybe pursuing another u. S. Company. The ceo has spoken to a number of banks about buying a majority take in t mobile u. S. They may pay 20 billion for Deutsche Telekom. Group is planning to sell more than 3 billion worth of assets to boost cash reserves. Car businesses will remain intact. Hyundai will sell off three Financial Companies and restructure some shifting operations. It will focus on the shipping, logistics, and machinery business. Imf has handed the u. S. A boost of confidence. It may raise the forecast. Lets find out why. They are very bullish. They are shut down and the government. They are tapering. It is a very well communicated plan. We see the fed having taken well deduction considering the tapering of the program. Those are good signs. We see some good numbers. Unemployment is going down. That gives us a much stronger outlook for 2014 which brings us to raising our forecast. The forecast for next year is 2. 6 . What happened this year is 1. 6 . It is much more bullish than it was this year. If you take a look at the latest data, that boosts confidence as well. This comes out with the nonfarm payrolls. We will follow. Amber and hand over the reins. Have arty started it this month. It could be a progression. Tapering has begun. Thank you so much for that. Our next guest is advising clients to bet on japanese and u. S. Stocks next year. Were going to hear from oc bc returns. St up welcome back. Joining us from singapore is the Vice President of Wealth Management at oc bc bank. It is great to see this morning. A wind down for a lot of people. It is a wind down as well. It is starting to taper in january. Among the equity markets are not very positive on asia. Asian markets have benefited. By the same token, these are probably more so. Is this a warning then to take cash out the table before that happens . It depends on your timeframe. If youre looking at this it is even. Inflation. Et price policy headwinds. Modesty polyps. Monetary policy picking up. In the median term if you look at the next or four years, valuations have come down. We do not further fullback to the market. What do we need to look out for . We are most positive on the north asian markets. This is leveraged to what is happening in the developed world. Have done extremely well over the last three or four years. Affected by the account deficits. Within asia there are markets like taiwan and korea. Lets talk about japan. Theyre trying to boost things up. Toyre trying to get it up 2 inflation. What are the challenges to overcome . The key thing here is similar to what the Federal Reserve faces. The bank of japan has announced liquidity injection. The key thing is for this to translate. We have not seen this happen in a big way just yet. At a sixonfidence is year high. Inflation numbers have picked up. The key challenge is to make sure that wages go up. Himself wills start putting extra liquidity into the economy in terms of bank lending. Euphoria is there. At the end of the day it translates real action. You mentioned chai on. China. Even after the injection of dollars, what is your concern for china . I think they will eventually be normalized. China is going to a transition. This is going to come in at 7. 5 . It will likely slow down. Think the markets have come to realize that. This translates for china. Nor china cannot continue this. Theyre able to implement the reforms. For china ittive will be positive for the rest of asia. That is certainly something to keep a watch on. More pressure as they vowed to drive her out of office. The latest on the protest when first up returns. Antigovernment protesters have stepped up pressure in tiling, bowing to drive the Prime Minister from office. The opposition said it will boycott the upcoming elections. No surprise there. Lets get the latest. There is no sign of an and. It is quite worrisome. You are right. Mentioned, this is escalating. This could bring you to a flashpoint. He said this is essentially a declaration of war by the democratic party. Called it regretful. She said the aim is political reform. Cannot be achieved without an election. Today the government expects 60,000 protesters at various sites in the capital to demonstrators calling for par minute parliament. They want to erase the political influence of the family. She was a former premier ousted. Lost everyts have National Election. They have failed to make inroads in the most popular northeast. Here is the question. The very revered king of thailand has given his stance on election day. What happens to the election . Will still proceed . The vote will go as planned. It must be held within 60 days of parliament. It was dissolved on december 9 after the democrats resigned to join the demonstrations. Based on preliminary talks and 45 parties are ready to participate. I want to take a look at how markets have responded. This is down 10 . The world secondworst performer in that time. This continues to weaken. It is pushed down by the protests. Spooked byave been recent developments. Seeking more clarity before wanting to put money back into the country. A slow burn civil war brewing that will be scaring investors, no doubt. Some other stories making headlines around the world. Bangladesh has charged 13 people in connection with a fatal fire with a garment factory. 100 workers died in the blaze. Weremergency exits actually locked. Via cues include the chairman and the managing director. Many of the accused executives may have fled the country. Has vowed totycoon campaign for Political Prisoners in russia after he was relieved by president putin. He spoke at checkpoint charlie in berlin. He rolled out a career in politics. He would not Fund Opposition parties, saying it is dangerous for them to receive those funds but that he has made these with his former Business Partner. Astronauts on the international removed aion have faulting pump ahead of schedule. Only two spacewalks may be needed to replace the pump rather than the three year. It broke down 10 days ago, forcing them to their off all equipment. Spents lunar rover has the weekend taking photos of each other. Before they resume. This reached damon on december 14. They say it will spend the next three months looking for Natural Resources while they will survey the landing fight over the next year. Not always anis easy upside. Stay right there. You are taking a live look at victoria harbour. We are up minutes away from the trading. He is 80 today. On your television, you are watching first up. A victory for apple in a tough market. China mobile will sell the iphone for the first time. We will look at the apple of fact as foxconn signed a deal with blackberry. tis the season of good cheer. The imf turns more positive on the u. S. Economy. Go monday morning to you. Lets get straight to the markets. The has now slipped into green. A little bit of christmas cheer. This is a fit of one percent higher. The Australian Dollar pretty much flat. New zealand this morning, lets take a look over there. It is maintaining games. Half a percent higher. This is at 82 u. S. Cents. It is strengthening this morning. Were counting down to the opening in south korea. That is half an hour from now. Japan close for his birthday. Apple has finally signed a long awaited deal to get this. Stephen joins us with the details. China mobile and apple hoping to bring up a win here. Was this long in the making . Six years plus of negotiations by ma coming to fruition. Access togive apple the Wireless Network. Theyre using iphones on the competitors here in china that had a head start. This is a big start of teleconference march 2012. The big stumbling bart block was china mobiles building out their own home cd. He is leading this for 4g. No other ones globally have adopted this homegrown platform. Reluctanty have been to do so. China mobile is the top prize for apple in china. Customers. Wireless they have seen the marketshare dwindle from that height in the 2009, 2000 and eight as cheaper models and other domestic shown this one. They are so at the highend. That is why china mobile liked it. This is an important deal for them. Smaller rivals and drawing these high in subscribers. It faces the first profit declining this year in at least a decade. This is coming at a right time. Were anticipation of this imminent deal. He said the deal is potentially negative for china unicom and positive for china mobile. Users are unlikely to renew their contract at expiry. What is going to happen, as a china christmas day, they can put in this for the iphone. January 17 is when they can get their hands on the five c and five. They have announced they will offer four g in 16 cities by the end of these this year. Can see a lot the migration over to china mobile. That is the hope. What about apple . A mobile deal could be good news for apples bottom line. To ant also equates earnings windfall . For more we are joined by bloombergs tech reporter. He has done some research on what this means for suppliers. The main thing really is the headline we found is the companies have had the largest exposure. Those that got more of this actually had declines this year. Companies have actually fallen quite a lot. He has not done fantastically this year. Most of the devices have not done that well. Have this. Es you get them as a customer and youre set for life. Not necessarily. Isnt that true . Werent they once considered the golden client, the customer everyone wanted . What has changed . What has changed is that samsung has come along. They have come along and they have taken away market share from apple consistently over the last few years. Apples revenue is still growing at a much lower rate than it used to. This is what they have been on the largest. Theyve never been not fantastic. You get into the older bucks of apple in the supply chain you can get some really good growth for the next year. You can do one phone for year. You can get in that the makeup for it. Is taken over a lot of that growth. It is not being lead by the news anymore. The if it remains shiny. Thank you for that exclusive research. Foxconn is one of the big suppliers. The story could be very interesting for those of you with that in the portfolio. For blackberry shareholders, a rare rally on that taiwan foxconn. He can help turn things around. Zeb joins us with more. We are talking about the biggest monday gain onegame a oneday gain in blackberry in the u. S. Market. Not a bad performance. Lets face the music. Blackberry has had a very Difficult Run as of late. It cannot even find a buyer in recent months. John chen turning the business around. He seeks an alliance with foxconn. Foxconn will manufacture blackberry smartphones. It is critical because it takes the inventory off of Library Books and puts it on the foxconn books. Investors will not have to deal with continued inventory write downs. That is one of the critical things he is focusing on. Get rid of these nonperforming handsets. Inventory. This finally get things to levels that are sustainable. It refocuses the company at a higher margin. It does not guarantee success. Just look at the quarterly performance. A four point 6 billion write down for blackberry. For foxconn what this means is that apple is diversified a little bit. It said it wants to create its own brand of products. Now with blackberry under its belt, creating projects for them, this could be a breeze. What were hearing is that there is a prototype in the works for the new but very models for indonesia. This market has been very much a High Performer for blackberry. We understand they are already working on a new model which they will rollout in the Indonesian Market and for mexico. In queue for that. Some other stories out there. Softbank recently bought sprints and now may be pursuing another u. S. Phone company. He has spoken to a number of banks about buying a majority stake. They pay 20 billion for the Deutsche Telekom 67 of the operator. Offered to payn almost half 1 billion after claims of a brief a breach of contract. She denies this and said it on the applications in a deal that they developed. Imf is growing more bullish on the u. S. And is more optimistic about the recovery. Christine lagarde said last week the budget deal to start winding back stimulus is about the future. We see the fed taking some very well production considering the tapering of the program. Those are good signs. In addition to which, we see some good numbers. Growth is picking up. Unemployment is going down. Strongers us a much outlook for 2014 which brings us to raising our forecast. Stay with us. The chinese that mark is under professor. The government will end this. We will take a look at what to after he joins us after the break here in hong kong. A few december deals gave a big boost to the ipo market in hong kong as the year wound to a close. Lets wrap up the past 12 months and look ahead for 2014. Joining us is the Asia Pacific Ipo leader. We have been talking about the concerns about the shy board rates picking back up to 8 . Is seasonal. Oncern part is may be trend. Also, people might be concerned that you have all these ipos coming up next year which means lessollars are going to be in the broader pie. What are your thoughts . Veryght now it is different from the prefinancial crisis. Now the government is very powerful. Of changedo any kind of policy, they look at the future. They are so fast and changing their policy because of the strong government. Probably in case of any further problem a real fall down in the market they would come up and do something to recover the market. I have your report right here. The global ipo trends for 2013 and 2014. What are you sitting in the ipo space for 2014 . What is your key take away . You can see in general this is a great sign for recovery. It is a fast two years good year. It is a porting the recovery of the ipo market. We are still quite bullish. We hope while we can see that, a lot is to undergoing from last year. We will put to the first. We have to look at the first half of the year. If you look at hong kong, the biggest ipos are bright among them. 3 billion raise. It is held back on ipos and still we saw asia leading the pack here. Why . It is not just from the change of the policy. He gets in for the market. They were in some company. There were some other political reasons. They may pull ups some the company and the markets. Asia in general is doing quite well, especially hong kong. One of the big stories is aly baba. Where is it going to lift . Is it going to list in new york . Guess. Nybodys what do you think is significant wanted to size to list in the world . How significant will this be . It is a hightech company. Aly baba was there including the u. S. And other places of the world. Money canhe new change the world. What are the collectors they can be focused on . In general we project this. They have the largest number of ipos and term of size. Then for the next year, we also look at this and all the companies. This comes up to the markets. Is very important. Why health care . It will trigger a lot to invest more money in the medical sector. Take a look at ipo activity trends. What is your outlook regionally for asia and globally . They continue to have a very good year. More were coming out. They are coming up. You can see that they are selling this in it would not be too expensive. It is an acceptable level. You can see the u. S. And europe. They can pick up under the debate. It should be a very good year for next year. China will be the biggie as it ramps up its ipo environment once again. Expecting, we are these listings. What is the current liquidity environment in china going to play out for the ipos . Aboutot of people ask me the opening. It will be prolonged. It responds. For the firstit quarter before we can see what will happen. For bringing us the outlook. Lights, camera,h for that. Action. A report on japans plan to boost the image abroad. This is first up. Stay with us. It is going to be a slow week in washington and market as people prepare for the holidays. There are stories out there. Su keenan looks at what we will be watching. Looking ahead to monday, it will be a much shortened week because of the holiday and volume will be lower as a result. We could cut the result week on monday. Analysts say personal spending likely accelerated. On tuesday we will get the latest data on new home sales. On thursday we get initial jobless claims. Will also beington scaled down to nonexistent throughout the week with congress in recess and the Supreme Courts on the break. President obama will also be out of town. He gave an optimistic outlook in the new year. Is the final press conference of the year. Breakthroughe a year for america. Detail, theres a lot more that we can do to restore opportunity and broad based growth. This is where he will be this week. This is for the 17 day trip. The air force flies in about 22 vehicles so the president can golf. You can visit his favorite restaurant. It is good to see some holidays there. Speaking of some meters, mentions her off they came to power a year ago he declared japan is back. One of his key policies was to promote japan abroad and create new markets for japanese projects. This is how they are trying to revive the traditional media industry. Girls support the 700 Million Dollar project to promote this abroad. The number of exhibitors hit a record at this years japan content showcase thanks to the government subsidy that began as part of this plan. At the venue, we met up with john. Program. Uced a popular he says it has become harder to find content of that will appeal to an american audience. This particular film market is not really for american buyers. For a while, the Japanese Producers were starting to produce content that was really good for the american audience. It had more action. It had a bit more sexiness. Once they saw the money go down, the with folk the focused again on the japanese market. It attracts international distributors. This still remained marginal compared to the domestic market size. At fourilm exports were point ¥5 billion while the domestic sales reached 100 80 billion. That is why the government thinks it is essential to boost exports. The government is seeking a turn for the content industry into an exporting engine. Content can improve understanding toward where japan and other countries and generate ripple effects to other in history such as boosting trust and goods manufactured in japan. One producer thinks the Industry Needs to go further. The issue is with japanese creators. The industry is focusing too much on the domestic market. We know it will shrink. Is oneing Global Capital possibility. We must show there is potential abroad. They think the internet video and could potentially make them more popular and profitable abroad. The sales continue to increase. That means we will probably pay more for the contents. What will happen is then they will Pay Attention to the u. S. Market again. It will start to make stuff that is better geared for american tastes. As more and more people consume video online, some of the old barriers to entry are falling away. The government hopes that with the support, japans creative talent can take advantage of that and tap directly into a niche market. Bloomberg, tokyo. Film, ron with burgundy has failed to topple bill go bilbo baggins. It took just under 27 million. The hobbit to 31 Million Dollars. It is on top or second straight weekend. Up next, after years of negotiations, the worlds Biggest Phone Company agrees to sell apple iphones. Were counting down to the open in korea. Japan is closed for the emperor of medias birthday. This is first up. Hundreds of millions of potential customers, apple breakthrough in china. Clarity and momentum. The imf turns on the u. S. The stock market has fallen nearly dated every day this month. Good morning to you. This is first up on monday morning. Japan is celebrating the emperors birthday. He turns 80 today. We are taking a live look for you over at the imperial palace. This is one of todays it opened its gates to the public. That is when the opportunity arises for the public to say hello and happy birthday to the emperor. Looking to the other markets, to australia were the afx 200 started the day just fractionally lower. It is building on gains right now. It is half a percent higher. The Australian Dollar is still flat. In korea, the cost be is just getting underway. It is half a percent higher. The korean one is strengthening. Apple finally has signed a very longawaited deal, one we have been monitoring for a very long time. In china. E number one steven angle is on this story. We are joined with the details. What does this mean for china mobile and apple . It means a lot. Six week six years worth of negotiations coming to fruition. Finale never gotten the link to the paper. That has been done. It will give apple access to customers on chinas biggest Wireless Network in addition to already those using iphones on the competitor networks. Unicom has offered the iphone since november 2009. Four year head start. They have offered this since march 2012. Has beentumbling block presumably over the homegrown cda technology. Now it is domestically produced were jeanette soon see mda. Apple has been reluctant so far to provide an additional handset. No other carriers globally have adopted chinas own platform. This is a big break. China mobile is always the top price for apple. Wireless0 million subscribers. 62 of the total users in this country. Apple has seen the marketshare to the competitors. All outsell. Vo, shall m they are highermargin projects. That is what apple and china mobile are looking for. This is an important deal. This removes the competitive disadvantage it had in drawing in the high in subscribers. It is facing its first annual profit decline in at least one decade. Bringing in this highermargin project is potentially very good. Isanalyst said apple potentially 48 unicom and positive for china mobile as he thinks many could migrate over from unicom in telecom over to china mobile. He says the subscribers, many of them are unlikely to have renewed the current contracts. Inna mobile has announced conjunction that it will offer four g in 16 cities. It is moving from trials to commercial rollout pretty quickly in conjunction with this announcement with apple. Watchna mobile stopped to. Thank you. The china mobile deal could be good news for apples bottom line. This will relate to an earnings windfall. He just conducted exclusive research on what apple means for suppliers. What did you find out . I good morning. The key point we found out is the companies who have the highest exposure gives more of their revenue from apple than they get from anywhere. Will they actually decline this year. They went down significantly. We they had a really big drop off in their shares this year. Even though in many cases more than 50 of the revenue comes from apple. It looks like a little bit of a surprise. Having apple as the key client has not been a beneficiary. Once upon a time apple was the one everybody wanted. It was the golden clients. What has changed . They are the company that was growing the fastest in the now phone space. They are still growing. The revenue is still growing from year to year. It is growing at a slow pace. Is flowing at apple. Everyone talks about samsung whenever they talk about iphones. They are the biggest competitor. We have to look beyond that. In Companies Like china and this is doingld, very well. It is here on the android platform. This is still around. They have been struggling the past few years. There has been a lots of competition. The Smartphone Market itself is slowing compared to a few years ago. The companies that used to supply it to apple still supply to apple. They got a benefit of a lot of volume and growth. Alwaysgins are not that these fantastic. They are very tough. They do one device a year. When you get into the supply chain, you do not get the great margins necessarily. You get incredible volume. It boosts the profitability in the long term. As we are seeing these sales slowing, that is not really paying dividends for the shares of the companies that are most exposed to the companies this year. That is right. Kind of like the walmart model where you have razors and margins. If youre selling a lot of your project, it makes up for that. Some other stories making headlines. Softbank recently bought sprint. They now may be pursuing another phone company. He has spoken to a number of banks about buying a majority stake in tmobile. Sopping may pay 20 billion for Deutsche Telekom. Hyundai group is planning to sell more than 3 billion worth of assets to boost cash reserves. The car businesses will remain in tact but hyundai will sell off three financial customer needs and restructure some shipping operations. They will focus on shifting, logistics and machinery businesses for further growth along with the tour is them operations in north korea. Lets take a look at the unit of hyundai. This merchant is up close to 15 . I believe that is limited. The imf is growing more bullish. Said the lagarde budget deal in washington has eased doubts about the future. Fed having taken some very well communicative action concerning the tapering of the program. Those are good signs. In addition, we see some good numbers. Unemployment is going down. Us a much stronger outlook for 2014 which brings us to raising our forecast. Look back through the eyes of car designers. Arrayoaked up the usual of new concepts. Paul allen looks at some of the weird and wonderful creations for this deal. Is it a car or a television . Prizeertainly takes the for 2014. Honorable mention goes to the car owners who own this. Vehicles, you will certainly never be able to buy. He became the latest one to unveil a hydrogen car. The fuel is so big. This idea is still somehow absent from the road. Is something you can buy. Available. Youre rollsroyce also chose dubai to show this. Emerging markets were out in the action in an increasingly affluent population. While bulletproof cars are seeing this in their city of karachi. I am feeling great. On the subject of safety, it showcased its Avoidance Technology in belgium in october. The car will take over steering and braking if it does not protect the driver. Ford expects less resistance. You can get more on that and all the days top stories. You can watch this live forever you are in the world. This is all you have to do. Coming up later, japan wants to boost exports to cars and electronics. This is also a drive for the animation industry. We have a special report coming up. Next, investment tips from norman chan. He says the u. S. Is the most promising market. He is standing by in our first up greenroom. In ourirst up greenroom. This is first up. Welcome back. The cash crunch in china continues. We are joined now for the details. Good morning. Lets take a look force first of where we are. On friday as far as market started trading, the interbank lending rates fell back down. What happened was that they inched upward for the most part on friday. Where are we . We are north of about eight percent. 8. 2 . Pretty much every day last year. We are about double the level. In market is not exactly good spirits given the fact that we are on nine days of losses. If we do close lower, that would since longest streak 1991. It is important to keep in mind. This is usually the time when a lot of banks have to meet a lot of these. On aputs upward pressure lot of these. This time perhaps the same way we saw in june. This is not exactly responding transaction. Arket they have refrained from doing this. Lets see how this affects traded this monday. What is the word on the street . There is a lot of thought that this could continue. What is the fear . This continue . How bad of an impact will it have first on the market and also on Chinese Companies . Up the Interest Rates. When we were speaking earlier, this is Vice President. Look at what he had to say. This will be normal. I do not think this is something to worry about too much. Investment. It will go over the last area or so. It is line with the government target. I think growth will likely slow down. I think the markets have come to realize that. I also want to add. They think we will see repoited amount of reverse agreements this week which will send a signal that perhaps they do not want to let the rates get out of hand. It usually happens tuesday thursday. Back to you. Thank you. For more on this story, we are joined by norman chan. Thank you for joining us. We heard from the oc bc one who said this is not something we should be worrying about. What about you . Rate ise meantime, the about 8 . We would very likely be able to see another down day. That is not too nice. We still think the government is trying to support the economy growth. To easee overstepping the liquidity crunch. I do not think the intention is this further. Is is the own version of communicated to the marketeer . Theyre basically saying this by not injecting liquidity over the last couple of weeks. You guys figure it out. Is that what theyre trying to do . I am not quite sure about it. They have other means to communicate if they want to. See a lot oflly rumors about banks from liquidity. This is overextended. This does not want to use immediately. This may be the markets prepared to fall. There is a little bit of a concern in terms of communicating the message. The government of china, officials are telling media agencies not to use the term cash crunch. In termspe things up of this story. What are they trying to manage . They wanted to avoid a market that they are trying to create a cash crunch. This is not the intention to see it to the highest. It is probably because of the demands and also in front of the ways that ispo coming next month. In terms of 2014 outlet, is china amongst your highlights or low lights . China has a good chance to perform in 2014. The Interest Rates should only be a shortterm thing. In the medium term, china is still going to do well. There are lots of good quality largecap stocks. Which sectors . Probably domestic consumption. It is probably still the focus. The internet has been doing quite well. This is a bit of a stretch. I think there are a lots of exciting scholars. Hinas market will differ a good many years can fix this. Where would good managers pick stocks in this region . They are still concerned about tapering. To do more. G countries like indonesia and india. They will probably still be suffering. And china. D taiwan in singapore. It is probably going to do better this year. And also to have underperformed this year. Of then catch up because agents. What about japan, abenomics . You have the sales tax increase scheduled to come and play in april. What are your thoughts for japan in 2000 14 . Japan will be difficult. They have a big run. Thisll will be a tough one. Alongside fourthly a major increase. We are Still Holding our breath. We will only have indirect exposure through asia. Thank you for all of that. We looked around the region from china to japan and beyond. Thank you for joining us. Happy holidays to you. Had an investment there. Up next, more pressure as her opponents vowed to drive her out of office. The latest on the bangkok protests. Stay right there. Is good morning. These are your headlines. Lets start things off in the u. S. The imf is increasingly optimistic on the Worlds Largest economy. Christine lagarde says there is a lot more certainty in the u. S. Going into next year, increasing the likelihood that they may raise the growth forecast for the country come january when the imf typically revises its forecast. The city releases november features. It is expected to raise to an eightmonth high. This comes out at 1 p. M. Hong kong singapore time. Lets wrap things up in china. The crash crunch continues. It almost doubled since the start of last week. Oneyear rate slots have jumped to their highest level in years. This check in on what is happening. Yesterday in dollar is pretty much flat. The is what you have for offshore spot. 62 is pretty much having one of the worst weeks last week. Given the Osama Bin Laden emerging markets. It is also bringing it. Get thisr not we will or if we will continue to seek if he is from the markets. Those were your headlines is monday morning. Were keeping our eye on southeast asia. They have stepped up this in thailand. They are driving the Prime Minister from office. The opposition says it will boycott the upcoming elections. Lets get the latest from house linda. Heres no sign of an end and no end in sight. Building one political commentator and founded a note of caution. He said it could be a flashpoint for the civil war. It is essentially a declaration of war by the democrat party. They prompted criticisms of from the Prime Minister. She called it regretful. She says the aim is political reform. They achieved it without an election. Turn it prompted a thousand protesters to surround her home in bangkok. To 70,000ct up protesters at various sites in the capital. Theyre calling for parliament to be replaced by an unelected council. They want to raise the political influence of the family. Oustedther was a premier and the democrats are boycotting the elections. One point to note is this. They have lost every National Election over the past few decades. Theyve been struggling to get support from the rural areas. This is a huge support. What happens after the election given the boycott. Is this going to continue . It will continue. It brought this in yesterday. The vote will go as planned. And must be held within 50 days. Was dissolved on december 9. Thank you for that. Always an easy of sight. If they diversify into a tie up with blackberry. That is coming up. We are counting down not only the open of trading but also the holiday. You are watching first up. Hundreds of millions of potential customers, the iphone gets more mobile in china. Apple of look at the fact. Foxconn signed a deal with blackberry. The imf turns more positive on the u. S. Recovery. Good morning. Markets trading here in the asiapacific. This is climbing half a percent. Startas off to a lower fractionally. This is building on gains this morning. We are seeing an extension of gains rally there. This is your level there. Just a reminder that japan is celebrating the emperors earth day. For a blackberry of shareholders, a rare rally. This can help turn things around. The packard is joining us with that story. Good morning. This is a big deal for foxconn as well as for blackberry. It is a fiveyear deal in which blackberry will outsource smartphone production to the foxconn group. This is significant. If you want to get into the technical difficulties, here is why. It takes the inventory off. This has been a persistent challenge. It has so many phones that have gone unsold. People do not want to buy. On new ceo has focused cutting down that inventory. It is transformative because it takes the inventory off the books and books it on foxconn. Investors have gotten used to these big writedowns and no longer. Lets make no mistake. A challenging situation still. A four point 6 billion write down. A billion dollar loss before that. This is no guarantee of profitability. It does form an interesting alliance with an asian company. Out of not run eighth Canadian Foreign investment law. They are specifically looking at the hardware that Business Communications is still very much in the hands of blackberry. The blackberry deal could help diversify this. For apple china mobile is also a big headline. A lot at telecom news and markets. South korean names are doing very well. There are the suppliers to apple , doing well in the trade today. Lets look at this. It is up 2. 4 . It is surging. Significant. Ungenerous 17 china mobile starts carrying this on its own network. This gives them full access to the 1. 2 billion wireless subscribers in china. China mobile has 750 million subscribers. Rival members are arty carrying this. The hope there is that once they theyhat china is curing it will migrate. A special with that network coming online. Apple still means a lot to the companies. It will get the iphone a big presence in the worlds biggest market and add a sparkle to what is already an enormous phone operation. How big is china mobile . You can get more on that in all of the top stories as your online source continues. Check it out. We hope you do that. Of imf has handed a boost confidence and may raise the forecast. John is here with that. This is a good communication. Christine lagarde is the main. This is falling toward seven percent. This is quite encouraging. This will not be a shutdown. It was dealt with quickly. This was quite encouraging. Tapering why this is as confident. Fed having taken some very well communicative action concerning the tapering of the program. Those are good signs. We see some good numbers. Unemployment is going down. All of that gives us a much stronger outlook for 2014. It brings us to raising our forecast. She sees growth next year. This year it is quite encouraging. It may raise that. It has not raised that yet. They are well communicative. It is good for ben bernanke. Their coaching from the imf. She says this is a good thing that was well communicative. What are the next important dates . Theyre looking for 190 month. Theyre trying to reach it. This is pretty encouraging. January that is what will be Ben Bernankes longest one. He will see more tapers. That is really in the month. Janet yellen there as well. Thank you for that. Those promises to be a quiet week. Lots of ego data in the u. S. There are stories on the agenda. Soon joins us from new york. Trading on wall street it will be a much shortened week because of the holiday and volume will be lower as a result. We kicked this off on monday with the latest data on u. S. Personal spending which they say likely accelerated. On tuesday we will get the latest data on new home sales. On thursday we get initial jobless claims. All exchanges will be closed wednesday to observe the christmas holiday. It in washington will also be withd down to nonexistent the Supreme Court on official break. President barack obama will also be out of town for the holiday. He gave an optimistic outlook in the new year. This is the final press conference before heading on vacation. This can be a breakthrough year. Outlined in detail earlier this month, we know there is a lot more that we will have to do. This will require some action. The first family has vacations. This flies in about 22 vehicles so a president can golf and visit his favorite restaurant. All right. Up next, australia and south korea. For 2014. Ssistance more in a moment. It is monday, december 23. These are the top stories. After six years of negotiations, china mobile will sell the apple iphone. It gives them a chance to call back declining market share in the Worlds Largest wireless market. He had been waiting for the carrier to switch. Japan has announced a record budget. The government has adopted a 920 billion proposal for the year starting april 1. It will be a submitted. Abe wants to boost spending on Social Security and offense. This is the biggest in the world. Tiffany has been ordered to pay half 1 billion after claims of venture. Ractor doing she denied this in the netherlands. It did honor the obligations on the deal. The companies that developed and celled watches under the jewelers label. Lets turn our focus to australia were borrowing costs are arty at a record low. Our next guest says the rate there will stay up. To hear. N addition theyre holding down the fort. Lets talk about australia. What is the rba going to do . I think theres a lot of headwind. We know there is a big call to growth. Think that it will come off. The rba has been talking about this for quite some time. Two are mine, the rate is not going to move anywhere until a least 2014. That is really putting a crimp on things. That is the big unknown. We are seeing Business Confidence not move in the wake of the rba. It is significant. The only time it has picked up is when the Australian Dollar came off. I think they put a lots of focus on the strength of the Australian Dollar. That is a key. Lowereference is not to Interest Rates. It is to get the Australian Dollar down. It seems to me to be with it. To headwind. The labor market in the housing property markets. The labor market is a key one. Wage growth is very important. The rbas own temptation is that it continues to slowly squeeze by. It will clearly not get any better. The fed started to taper. It will start tapering in january. There is a lot of taking away from the market sharing here in asia. It has been doing well. This has been key. How do you think it will perform in 2014 once qb starts to quicken the taper . Doubt that as markets become better adjusted to how the tapering will unfold that well see some of this. A very strong case of differentiating. Have been very strong. It is highly leveraged. We heard Christine Lagarde talking about much better prospects for the u. S. Next year. We think it ties in closely to a very positive outlook. He also said they communicated well to the markets. I would presume that the bank of korea was not necessarily agreeing with that. The were worried transparency and the thought of asia was not flowing through to Federal Reserve thinking. They made some pretty pointed comments. Banks, you have an economy that is so tied into the external outlooks. Im very nervous about what happens in the rest of the world and the u. S. Iseen the concern justifiable. The fundamentals are very good. We have some datasets coming out for taiwan. You look at these markets that you cover, australia, south korea, taiwan, where do they ring for you. Korea is number one. I think taiwan has a very similar story. There is a very tight correlation between manufacturing and investment and consumption in the u. S. Both economies are going to do well. Prospects for australia are good. T is a lot of question marks taiwan taiwan tie up is trying to offset the rivalry that it has with south korea. Compete, whotries is going to be the winner . I think it is korea. I think it has much Better Networks into the sales markets. It is much better contracts with the likes of the service providers. You know, you only need to look at some of the companies. I think korea is there. Economist is joining us this morning. Happy holidays to you. Topsian Students International rankings. Math, science, and reading. Outperforming their u. S. Peers. Teaching is big business. Some private tutors can earn millions of dollars a year. Lights, cameras, action. A special report on japans plan to boost the image abroad. This is first up. stay with us. Singapore is among the markets opening at the top of the hour, checking the latest indications that is pointing to a higher open. Checking to some other stories making headlines. Bangladesh has charged 13 people in connection with a fatal fire at a garment factory. 112 workers died in the blaze. Providers say the emergency exits were locked. Says many of the accused executives may have fled the country. The former oil tycoon has vowed to campaign for Political Prisoners in russia after he was released by president clinton. He spoke at checkpoint charlie in berlin. He said he would not Fund Opposition parties in his homeland. Who arehe has friends still in prison including his. Ormer Business Partner astronauts on the International Space station have successfully removed a faulty cooling pu mp. Only two spacewalks may be needed to replace you from. To replace the pump. It forced them to turn off nonessential equipment and had to halt scientific research. The Lunar Landing rover has spent the weekend taking photos of each other before they resume to the moon surface. They reach the moon on december 14. Mission control says the rover will spend the next three months looking for Natural Resources law they will survey the landing site over the next year. All right. When shenandoah off they came to power a year ago, he declared japan is back. One of his key policies was to promote japan abroad and create new markets. We look at how the government is trying to revive japans oppositional media industry. They support the 700 million project to promote japans content abroad. Have aber of exhibitors record at the content showcase thing to the government subsidy that began as part of the plan. At the venue we met up with josh one. Red he introduced a he says it has been harder to find content that will appeal to an american audience. This market is not for american buyers. There are starting to produce content that was really good for the american content had a bit more sexiness to it. Once they saw the moneys go down, they focused again on the japanese market. Buthey have gathered here despite the efforts this still remains a marginal compared to the domestic market size. The film exports was up ¥4. 5 billion while the domestic sales reached 180 billion. That is why the government thinks it is essential to boost exports. Seeking tornment is turn the content industry into an exporting engine. It can improve understanding toward japan and other countries. In generate runoff affects to other industries such as boosting trucks to goods manufactured in japan. One producer thinks the Industry Needs to go further. The issue is really would japanese creators. The industry is focusing too much on the domestic market. We know for sure it will shrink. An enemy fund is one possibility. We must show theres potential abroad. They think the internet oondeand trencould potentially make japanese cartoonists are more profitable abroad. Tothe sales continue increase. That means we will probably pay more for the contents. Ton they will Pay Attention the u. S. Market again. It will start to make stuff. It is better geared toward this. Some of the old barriers to entry are falling away. They hope that with the support of the creative talent can take advantage of that attack directly into the need to market overseas. Bloomberg, tokyo. And all the days top stories. Plus you can watch us live wherever you are on the bloomberg app. All you have to do is head to the app store and download it from there. You can also follow me on twitter as well. It is easier to stay in touch with us and the reporters. Before we go, it just a little bit more on film. Has failed to topple bilbo baggins. Under 27two took million. The hobbit took 31 point 5 million, keeping it on top for a second straight weekend. That is it from us. Asian markets are getting higher and moving higher. We are watching Hyundai Merchant Marine and limit up moves in south korea today. This is after they decided to sell some of the assets including financial units and some of the hotel units. That is it. On the move is coming up next. Movers. Of the days how is it going to move . Good morning, everybody. I am rishaad salamat. This is on the move. A breakthrough for apple in china. We are watching the suppliers with taiwan markets about to get underway. Bowing to shut down thailand and block elections. Antigovernment groups renew protests in bangkok. Fallenck market that has nearly everyday this month. The issues that faced shanghai. We are going to get taiwanese markets starting