If the latest data is to be the judge of that. All of that and the second edition of the equities market today. What is going on . We have this Industrial Production that is coming up. We are in fact the last quarter. Fact than last quarter. The steepest decline. A pretty bleak quarter for japan. Abenomics . Ff of the second arrow. The third arrow has not happened yet. Clearly, we have money being pulled out. Exactly. Do we have the issue of people pulling out . The 900 million japanese yen that has been pulled out and only a week in march. That is the most. It shows the impact. The yen has been very strong. The tax rise tomorrow as well. All that is bullish into the markets. Over here, i will try to do. You can see, there you can see. It is below the 50,000 mark. Nikkei, a bit of a concern. If the cb you can see the apex. That is impacting exporters. That is abroad. The Biggest Issue will serve us. Abe has been faltering somewhat. They will get to that figure. 9. 5 billion u. S. Dollars. It is ripped out of the marketplace especially a week in march. Are off abenomics and concern for the foreign investor. Indeed. Angie, it is india. The rupiah rises. It has bottomed as well. Sayingernment is at last that inflation is under control. Checking in on the futures. The close onparing friday. The nifty was up by 0. 8 . What the numbers are looking like. They are building on the gains. Ok. About half an hour, 20 five minutes before Chinese Markets open up. Four percent rally today. Another losing quarter. One bright spot. David will tell us all about. It is a bit of an irony right here. Good morning. I want to show the chart. It is the benchmarks. If you want to compare them to the s p 500 and what is happy in europe. This chart right here. It is not done anything for five years. The reason i show this is not necessarily a market where you would get a lot of ipos. It is not a market where people are looking to list their shares. Window in january, a 15 month ban. Jeff a search you have a surge in those deals. On thosee, 54 return companies that listed in china and you compare those two 9 about everywhere else. We have regulators. What they have done from the start of the year is put in very strict rules to i guess, protect investors and protect any funny stuff when it comes to pricing. A big problem has been pricing too high and it is an art . It is an art. What they have done is if you want to price your ipo above average, you have to disclose early on the risk. It is worthhink much more than that. Companies. Ipos, thealking very cold part of china. In the northeastern part of a rtland known for its its four its ice festival for its ice festival. Pricing is interesting. It is at the bottom of the range. 290 per share. You compare it to europe and the been how much money has raised in asia. Well have a graphic on that. 70 billion has been raised. Anyway, lets see how it goes. We will see what happens in 30 minutes. Thank you for that. David ingles. Other stories we are looking at. A large Corruption Scandal in china. The center of the investigation, the former spy chief. Hundreds have been questioned or taken into custody. Say more thans 14 billion in assets have been seized. Relations with china is being denounced by hundreds of protesters. Police said there were about 100,000 people that organized. Million tookf a place. The rally was after the president refused to show the deal that would help the industry. Protesters are turning to bangkok after a period of relative calm. Calling on the Prime Minister to resign. All of the concern about violence since the Constitutional Court decided to annul the general election. The australian Prime Minister said there is no time limit on the search for the missing Malaysian Airliner. It contains in perth. As, we are into the fourth week now and we still know so little. Aboutalmost know nothing where, how, and why the airplane went missing. The operation included the australian vessel is has been fitted with an automatic vehicle and that is to detect the airplane. Time is running out. Axes areow, the black battery operated and they last for 30 days. Today is day 23. Australia said if they do not get a location, they have to slowly use sonar to get an image. Here is tony abbott. We are well short of that point. To the grieving families of the 239 people on board and we owe it to the all of the countries that have people on board the aircraft and in particular the malaysians who are our friends and partners in this regional wide search. We owe it to all of them to do what ever we can to get to the bottom of this mystery. Captain . The the simulator, they took it away. Try to get some of the deleted data. Do we have anything new on that . Technicians are still working and tried to extricate data included the pilots Digital Media including the simulator. Analysis of according to one u. S. Official who did not want to be identified. The official said no smoking gun. Nothing sinister was found. They spread the fbi to be done in a week at the very latest. They expected the fbi to be done in a week at the very latest. The majority of the passengers were chinese and an emotional reaction. We have seen how they been demonstrating against the malaysian handling of all of this. Has there been more of this . More of that. They are venting their anger and are demanding their truth. They are demanding an apology from the handling of the search. They are unhappy with the promise of the statement that the plane crash and the southern indian ocean. The families were flown to hours ofnd within their arrival, they held banners that said we want evidence, truth, dignity and give us our relatives back. You can see pretty strong words. The planes disappeared disappearance has sparked anger. , somets of Malaysia Flight booking website have suspended Malaysian Airline flight. Haslinda, thank you. Up next, manufacturing unexpectedly tumbling ahead of the sales tax rise. Said thatxt guest japan is riskier than china. Japans sales tax kicks in on tuesday. Our guest said it looks more risky china. The managing director. He advises asset and portfolio and funds around the world. Japan is more risk your the china . Tell us. That is what we are seeing right now. All that we have tracked is saying the volatility around 23 . Hot spots like china, thailand, you mentioned india earlier which is doing very, very well now it even and even korea. They are down the 12 14 range. 23 , russia, they have a higher risk than that now. Off . E the wheels coming at the moment abenomics is proving, it is illusionary at the moment . Is some ofy, it that. When we see a rise in volatility, people feel they have something to lose. In japan, that their county and japan all of last year with the rise of 51 that you saw. That makes them nervous. They are not considered absurd arrow. There hoping for another round. If that comes, they will stick around for that. It feels like a sick person going to the hospital and feeling happy and looking forward to the medicine than the cure. That. Does seem a bit like getting another injection is not really going to help fundamentally do something about operating numbers of the nation. Over thelking about years, japan has changed the growth, hasnt it . Are. Ey certainly there are reform to have to be done if they want to turn around for the long term like labor reform and immigration reform. Those things have to come through. Even their Corporate Tax issue which i thought was fairly easily to tackle has not been tackled yet and that needs to be happening or it will not be effective. If not to japan, then aware . Where . The question. Your hotspots popping up everywhere even china. People are nervous. The situation where the government might put it money for stimulus a it is the medicine rather than the cure. It has been built into the system. People would likely to see it tackle and that is not likely. Like argentinas and brazil or russia where there are placebos being applied here and there to some of the fundamental problems in the economy. People are a bit nervous and we are seeing that in the data. People are switching a way from growth into value stop. Away from high volatility and sticking to low volatility stocks. Lowng from large gaps to gaps. They are building strategy. A weary eye to the downside. You shoulds in a why not be investing. The developed markets which has been all year, hasnt it . It has. Even though you have ukraine going and turkey and thailand, the ftse emerging markets, the risk has been steadily declining since the start of the year. Overall, people still seem to think the merchant market as a whole, as a broadbased investment seems safe. And all of these hotspots are isolated and nobody will touch russia or turkey for a while or touch argentina. Other than that, the emerging markets as a whole, it seems to be pretty stable. Is, this isent then the time to be going in there. They be weary. And be weary. It will be a bobby ryan. You have to pick and choose carefully. There are opportunities. You have to be ready. Yet risk tolerance for this one. Olivier, great talking to you. Companies planse to handle the new sales tax. We hear from one of the big retailers. That is coming up. It is a monday, march 31. First of all, a heads up. The bank of india announced a alicy tomorrow based on survey, we are expecting them to keep rates unchanged. Tomorrow, australia is expected to keep the cash rate at 2 . There is chatter out there not to rule out a surprise. Over to south korea. Account balance for february showed yet another surplus topping 4. 5 billion u. S. Dollars. We have seen a surplus every single month going back to january of 2012. Staying on the theme. Thailand, the political standoff has claimed its latest victim. The secretarygeneral has company ishat the starting to delay new spending as uncertainty theyre given athos standoff continues to cloud given the continued standoff continues to cloud volatility. Onemonth chart you see right here. First backtoback weekly losses we saw last week went back to november. The ecb and the fed. The aussiethe theme dollar. The chart i mentioned. I also want to show you the kiwi. At little bit of strength. Relative to each other, this upry has been about the kiwi for one month. If you look at the two year chart, pretty consistent picture we are moving closer and closer to it is about the policy between the rba. Betweentive difference how the countries are doing at this point. Very quickly, wrapping up the First Quarter. The japanese yen. The First Anniversary of her akoda, stimulus from h that weakened the japanese yen. It is sticking so far. Tomorrows sales tax kicks in. Those are your stories. Japan will be raising its sales tax on wednesday full on tuesday. They could be Prime Minister shinzo abes biggest action since taking office. We talked to one of japans richest men. He runs ecommerce firm. Japanese market is in the longer term going to be gradually shrinking, so it is natural that Japanese Companies will be, more aggressive for expanding their business overseas. Automobile, have been very global for business. To moreoving pharmaceuticals and services and retail. Tose companies are trying tailor their business overseas. Challengingeen a for Japanese Companies to theire a company and manage integration. But now, gradually they are learning how to do it. The japanese executive is becoming more international. Add more japanese people accepted on the board. I think they are becoming more and more global. Not just doing this is by Japanese Companies but the team itself is becoming more global. Theres a higher chance of them becoming more successful in m a and more ready to the, global . To become maybe more nonjapanese. We have to take a break. Looking at captain america called. To the rescue. Why what internet site is recruiting the marvel superhero. Looking out of the windows of our offices and in the studio. This is the scene at the moment. It is a bleak. It looks better than in real life. Gusts of high wind. And there could be hail. Advising members of the public to be on alert. Green on the screen. Stocks are rising across asia. The First Quarter comes to an and. Talks but no agreement. Russia and the u. S. Discuss the crisis and the ukraine. Conservation. The threat facing the Worlds Largest living thing. Day of the quarter. How things are faring. Back to john. We are seeing it is dark outside. There are games. The Market Sentiment today. There are gains. Kicking into action. China is a behind. China is behind. The forecast encouraging lending. It is widening. The demand for loans because of the chinese a slow down. It squeezes down. Japan up by also one percent. It is marginally lower. Australia is all. Arean after the protests quite stable. Some gains in malaysia. China is seeing slight gains. Individual stocks. This is a construction. The 4 the big banks. These are three of them. Earnings last week. Bank of china. These are the three to watch out for. Construction, the key ones. They have beaten forecast. It is encouraging. The wider lending plan. Key looking at one of the ones. One of the biggest ipos visit year. Opening right now. Day for the trading far north of china. Just moving slightly to the up side up by 0. 3 . Just shy of 1 billion. Bloomberg industries analysts is it has been taken fairly well by the investors. They may be can go a little higher. Given the returned they were looking for. It was not the case. 27 let me give you a few facts. If you take a look at the other commercial banks and china, they last friday. Where now, it is eight times. As other banks, they share a lot. The other day was like [indiscernible] underperformed both hang seng and china financial index. Will wait and see. The chinese pains are part of the chinese stock store if there is a one. Is one. Story if there better thaneased expected up on the market. Not just markets but also bank of japan last week. Banks have the big 4 2013d substantially in because of the time and 20. Uity. Cause of the time eq we do see banks that are worseing from very low, performance, not just margins. Atit opens, they will lose will never, back. We shouldk and front, not do see a lot of a worsening. Seng, is the dividends are stunning. That is true. That is the problem. Giving encouragement into the stock. You cannot argue with return on equity. Not at the moment, we are seeing 19 . 22 in some cases. Lets look also in the name. We have ecb in the mix. That has been for a while. They are not trading. Not the moment. Icb as well. Icb has been for a while. We know the big 4 banks. It is a big one. We see how much bigger icb will raise up for. Only by a tiny state. Great talking to you. From bloomberg industries. Some the conference stories we are following for you. A retailer could be heading to a listing in the nyse. Board. Idering the big in addition to tokyo, it trades on the nasdaq and hong kong earlier this year. And a summit may be ready to spend. Panasonic may be ready to spend. They went thats over 10 billion and it will be on automobiles and housing. Qualcomm has been struggling. It is about to change. They are going to get a boost from china mobile. That means stronger demand. China mobile had been using its developed locally. Those are your top headlines. One of chinas original video heroes will go to the rescue of a slumping stock. We are talking about the youku. Am i right in described it that way . You certainly are. They were won the first sites that have been successful. Successs not seen a log in the stock market has not seen a lot of success and the stock market and it is listed in new york. To arrest those stock slide and get out of the competition like in baidu, they are seeking an unexpected course, captain america. I do not know captain america. It is a marvel character. You are right on. It is an american super hero movie. Forces with a disney to build its market share as spin off the bigger rivals and has signed a deal to cosign it moves like this one. The latest version, we saw its stars coming to beijing. Johansen and samuel l jackson. The premier, part of the strategy. To better compete with a baidu. Part of this lucrative video online space estimated at 3 billion this year and perhaps captain america will come to the rescue for youku. Anyway, thank you very much. Now, lets take a look. The next few days. The japanese consumers. They had to tighten their belts because we have the sales tax hike kicking and all tuesday. Debtof trying to cut the burden which is the largest in the world. Chinas crackdown on lavished banding. The luxury retailer is given is reporting on wednesday and analyst are sent little change. Hawaii betweenin the u. S. And it is winding up. It will be the pan asian response to the missing Malaysian Airline. Territorial disputes in china in the region. Hagele secretary chuck may visit you as bases and discuss u. S. Basis and discuss moving the base. That is before he goes on to mongolia. Friday is seen as the latest job data from the u. S. And the Unemployment Rate is expect to drop to the lows and a five years. What else you can look forward to. Yang yang sent this. 2 multinational corporations will face tough question on capital how cap the house this week. The first is caterpillar. It will be under scrutiny. That afternoon, General Motors will be the topic of a house energy. Whyommerce it took of the company who more than a decade to recall more than one million automobiles linked to at least 12 deaths. Internationalday, Monetary Fund managing director e will deliverrd her speech on the state of the global economy. Reporthead of the imfs earlier in the week. Developers could be in for a new release. Microsofts annual meeting, it will unveil its latest iphone. It all culminates with the marchs job reports. ,000 jobs were added. And the Unemployment Rate will drop to 6. 6 matching what it was in january and the lower the rate wouldve seen since october 2008. While all of the week we will have all of the weeks news for you. But change in crimea. Crimea moves even closer to russia. The u. S. Secretary of state and his russian counterpart held talks seeking a solution to the crisis and ukraine. Sergey lavrov is stayed as saying it should be a federation of that chooses is on language. A described the talks is very, very constructive. Its ties toemented russia by switching to the same time. The clocksred as were changed. It is seen as a final, symbolic move. After three weeks high that u. S. And russia will diffuse the crisis, lets get more. Expert at 80s consulting firm. At a consulting firm. Andy, tell me what is your thinking. Are we at the end of the crisis are doing how much further to go. . Exactly where we are is what we russia wants to do at the moment. As far as the markets are concerned, it seems to be a consensus that some of the heat is coming out of this. If you look back over the last few months, there has been relatively little trans action and the trade market compared to what is the case so we are channeling on. The good thing is everybody is talking and as far as markets are concerned, as long as people are talking, they are prepared for the out,. Thes you are getting as weather is getting warmer and you do not need as much gas, right . The issue with this is relatively little Short Term Impact on the crude price or elsewhere. There are some longerterm impacts. Now. Rreversible impacts firstly, there is no doubt that western europe will seek to die first most of it diverge more of his energy away from russia. We do not know yet. It will vary country to country. The gasedium term, exports into western europe. The other impact it has had is it will take time to reverse if a reverses at all. And it has put up of the risk premium associated with investing in a russia and that will make it more expensive for them to finance projects. On the gas industry in general, it is coming up to a time where you have to sign up a lot of Capital Expenditures from four companies to help with the challenging part of that. Slownot think that will down but around the margins, it will impacted that going forward. Crimea what happened in and the eastern part of the ukraine, too. Turkey is probably looking at all of this closely and a particularly it is treated. If there is a problem there, we have the east fact. Oil prices, certainly. Yeah, that is something that often gets overlooked. Turkey feels as protective toward the minority as a russia does to the russian speaking minorities to the ukraine. There were noises a few weeks ago about some kind of response. Minorities and being mistreated. Given the volume of crude in particular, it would be relatively easily for them to be disrupted if they really felt like it. You have to think things will get pretty serious because it would not be a past free action on their part. It would not be. At the moment, with the russian nationalism being displayed, where does it leave investors . Why would anybody invest in russia right now . Earlier, its i said is the risk premium of being put up. It is a big market. Wealthyrelatively country amongst the rest of the emerging countries that have been emerging now. A lot of companies have spent the last 15 years building market position in a russia and they were not want to walk a way from. Decision a cost free to move a wave from investing in a russia especially if you build position. Lot of Companies Investing quite a bit of time over there saying we plan to stay over there. Andy, great talking to you. From ey. Checking in with the markets. Of the First Quarter. Where have a look at currencies in play. They yen is trading below the level of 102. Dollar, how it has been faring as well. There you go. 92. 5 u. S. Far from being neighborly when it comes to sports. Australia known for its fierce rivalry. Saw it yesterday. Also the currency market. One in either country once wants to own. Australia is beating the new Zealand Dollar entity developed currencies. The first question is, why . They are heading in different thy rations. The simple answer is china. Its growth is critical. The and they are heading in different direction is. Should all have effective policy in a timely way. In other words, stimulus. Is forecast to grow at 3 . April 2011. St since china is a major export. Ustralia, mining very dependent on chinese demand. The rba meets tomorrow with ecasting a for change. The trend is for rising rates by the end of the year. New zealand by contrast has already started raising the rates leaving australia behind. Raising he rate and higher. Rate 0. 25 the kiwi is at its highest in two and a half years. That is higher than any of the g8 economies. You can see the kangaroo. The three here high. It wins with a gain. For exporters, this a big worry and both have warned about. The qe strengthened even more. We are seeing across especially the aussie. We have been in quite a are looking for the kiwi against 87 dollar to break the level. We should see it directly up to historical levels. Thats the outlook today. I am a john dawson. Up next. The appetite for the Great Barrier reef. That is next. Shipping and australias Great Barrier reef is expected to triple over the next 15 years. For knowing debate renewing debate over commerce versus conservation. One of the worlds greatest. Australia trades is tourism on images like this one. 15 milelong barrier reef is known to marine life and is a living structure of coral. It has not comfortable nature. The coal industry. Everyoneccounts for and a five dollars directly at and directly in queensland. And directly and indirectly about 1500 jobs. Is that is expected to grow. It is exploited and coal is expanding. It will be drenched and developed and the largest coal terminal. Traffic is forecasted to triple by 2030 just short of levels seen in the panama canal. It has gotten the attention of the United Nations which will siteder if this heritage is being endangered. We are running a huge risk to the International Community is concerned. We are talking about millions of drenched spoiled in a fragile environment. We are talking to increase shipping. Shipping as closely regulated. The council said its only been one incident in at 10 years and it points to a study that has shown most of the damage has come from extreme weather events and devastation of starfish infestation of starfish. But there are groups lobbying to reef and we great need to understand the motivations. They are trying to shut down the coal and gas export of queens land. And they will say anything and do anything to achieve that goal. But queensland goal industry has every reason to feel paranoid. We have six volunteers aborting. Ofit has been the attack greenpeace. However, the conduct hasnt been attracting new attention from fund managers. But the issue as special with the broader issues which is shaping some of the important investment issues. From an investors perspective, it will raise a number of questions about how the accounts are managed and what the potential risks might be . There are risks and they are being bounds for the future of the greatest living organisms. We are liverybody, in hong kong, and i am rishaad salamat, and this is on the move. Signs of a fragile japan. Salese economy handle the tax hike that arrives tomorrow . And the ipo returning to china. And dumping 100,000, testing a pact with beijing. And a losing three months for investors in china, but one bright spot has been the ipo market there, vastly outperforming everyone else. David. We will talk about it in a minute. Do we have . It is something you do not normally see. The mainland Chinese Market performing well. It is creeping up. Generally speaking, it has been a frustrating five years. , yes. It has done nothing. Shanghai, particularly. Yes, so if you look at why we are seeing this huge rally in is the new rules. It is not really a change in sentiment in the markets. Companies that listed their shares on both of these exchanges in china. Now, what regulators have done, they have tried to make sure that the deals are priced reasonably. One, for example, if you want to if your banks, advise you to price your ipo higher or above industry average, then you have to come up with the risk associated with that. It is sort of like a red flag when you do that. That is why only eight out of the 40 have done that. Another rule is they spot check the investors. Blacklisthey will some. Let me show you an example. There was a listing in late that wasith a Company Moving away from what the company did. They turned down the highest 94 of bids coming from investors. What that did, it was priced cheaper. 124 in three months, yes, that is something. And it is an art. It is an art. How do you price them . Nicely . U make it sell you can make the argument that you share price does not move, you want to be in the sweet spot, and there is one that is unchanged right now, and it went up by about one third of one percent. Yes, i think there was one bid that brought it up a little bit area there we go. Unchanged. As well as in hong kong. But, yes. You can imagine. This is priced a little bit higher. Yes, you could argue it. Yes. And i and i am checking. It is up. Three hong kong cents is really not much of a move. Thanks, david. Its take a look. Is it faltering . A look at the latest economic data. And this is before the big eat tomorrow, the tank can survey the big one tomorrow, the tonk survey. Y the Tankan Manufacturing is not working either, and services are slow, so it will have to come up a little bit. Of course. I am not going to say adding the third string to the bow. The arrow. Corporation tax being cut. Labor law has been loosened. Some things have been agreed. Pon it is essentially the liberalization of the economy. Yes. So even the toe picks, for example, up. Example, up. For they have paired those losses somewhat. But last year, the second straight quarterly rise. A game last year. For the stock market there. It was just amazing. 2013. This is a yearlong view, isnt it . Yes. Yes. Because of the declines. Right, this is what is happening with foreign investors. Out. Have been pulling it is pretty scary. The yen. This is the worst pullout, withdrawing of funds since the crash in 1987. People are also scared because of the impact, the chinese slowdown, and all of these factors, the ukraine situation, the greece situation, all of these factors pushing into it. I want to show you if i can this chart. Just look at this. Joe is following you. Hello, joe. My cameraman. Down 9. 5 . This is the nikkei this year. It shows you the dramatic decline. Looking at the strong yen, it is impacting. Strong yen,with the and the yen, i can do it again. This is down by 10 on the year. And this makes the goods less competitive abroad and makes them more expensive. When it is strong, he they go for the cheaper. That is one of the concerns, so, yes, the japanese market. And this is not working as well as planned. In the meantime, of course, tomorrow is the crucial business tankan the tonk on survey. The us million Prime Minister says no time. Visiting search control in perth to find out more. Aslinda amin into the fourth week now. We do not know very much, do we . We dont. Why, where, how, almost nothing is known on day 23, to be exact, nothing from the search for you the operation today includes the Australian Ocean shield which has been fitted with underwater equipment to detect the missing plane. Time is, of course, running out very quickly. The black boxes last for about 30 days. If theyaustralia says do not get a location on that, they have to use sonar to get an image. This was tony abbott on the operation. I think we owe it to the grieving families of the 239 people on board. We owe it to the anxious of all of the countries who had people on board that aircraft. Partners in so many regional ways, so we owe it to all of them to do whatever we reasonably can to get to the bottom of this mystery. We were talking earlier about this, the data from the Flight Simulator that the captain had. Do we know anymore more about that . Not much. At this point, fbi technicians are still working on it and are trying to extricate data, and this includes the pilots Digital Media. A hard drive. The fbi almost halfway done with analysis, and that is according to one u. S. Official who did not want to be identified. Gun hasno smoking emerged so far, nothing sinister found. Soont the fbi to be done on the simulator. More emotional reaction from the families of the chinese passengers on board over the course of the last couple of days. Yes, pretty much. They are venting their anger and are demanding what they call the truth. Several chinese relatives also demanding an apology for the handling. S there was the statement that said the plane crashed into the southern indian ocean. They do not quite believe that. They flew from beijing, and within hours of their arrival, they held banners that said, we want evidence, truth, dignity, and also, hand us the murderer. Give us our relatives back. You can hear the strong words. Is anger and outrage in china. Several agencies there have announced boycotts of malaysia. Some flights are suspended, malaysia airlines. Thanks. All right, we are just going to check in on some of the other stories around the world. Taiwan, close economic relations beenchina, it has denounced by hundreds of thousands of protesters. Theyize of the crowd, figure about 100,000 people, with organizers claiming more than half a Million People took heart. Refuse to shelve a deal that would open some business to competition. In paris,g talks seeking a solution to the crisis in ukraine. Has said they should be a federation of regions that choose their own language, religion, and economic model. It is said the talks were very, very constructive. And clocks were moved forward two hours to be in time with moscow, moving away from ukraine. And after a period of relative alm, demonstrators calling on Prime Minister to resign in thailand. There is growing concern about violence. The march was the first since the Constitutional Court decided to annul the general election from february. And up next, japanese stocks going from the best to being the worst. What is spooking investors . Is back. Ove sunshine in tokyo. The nikkei 225 benchmark higher. And a sales tax hike happening. That is coming in on tuesday. Singapore, us from it all seems to have gone a bit wrong for japanese investors. What is it going to take to change that . They were playing around with it before, and before they did that, it was looking healthy, and right now, as you are commenting on earlier in the program, there is a mass exodus from the japanese stock market. It will be interesting to see what happens after the tax. Bottom ine will get a the market, but at the moment, not one of my favorite markets. There are plenty of other markets that are stronger at the moment. Japanant to stay with before we moved to where you are. , all thatappening optimism we had through 2013, it evaporated, and it seems that shinzo abe has not come through, has he . Well, he has not. History does repeat itself. Going back to the 1997 situation. The year before they played around with attacks. The japanese fonts, some of the Smaller Company funds, went up 300 to 400 , and they actually gave back all of that return in the next 12 months to get the prematurely raised the tax. I do not think the economy is out of the woods yet. I think it is a good early with what they are doing, especially with the backdrop scenario at this moment. Atis not looking very good this moment in time. Earlierd a guest on that said japan was riskier than investing in china. Would you agree with that . And i see some interesting things on the commodity side which leads me to believe that Global Growth is going to consistently pick up, and if it does, then i think china will also benefit from it. Bottomed, as is sit on your program at the beginning of the year, so, yes. If you have to choose between the to of them, china. You did say about asia on the program, but did you put your money where your mouth is . Several you know, i run different programs, and one of the programs i do is to do p e ratios. In the u. S. , i can find a lot of s,owth stocks with low p e but in the last week, that has corrected. What you might recall, i mentioned thailand, philippines, and indonesia, and they are at or near new highs, and other asian economies, markets, are joining in. India, perhaps, being the leading one, but in singapore, they were very, very strong. Hong kong, malaysia, korea. All of those look good. The asiapacific region, new zealand has been one of the markets in the forefront of a very small market, and australia seems to be coming to life, and there are so many interesting things going on in the commodity sector, especially with Gina Rinehart raising billions to expand her commodity operations. Is actually a very interesting story, that one. Taking up on what you were saying about india, it is the best performing index in this part of the world, but are things getting ahead of themselves there . Victory in the upcoming election . Well, job formation. We have broken out, and it has been all oneway action, so we could do with a bit of a pullback. On one basis, i would say i like thailand. I confuse most of my investors when i tell them, you should be in thailand, because there is blood in the streets, but when there is blood in the streets, that is the time you should be investing, and the reason that is is all of the week players are out of the market, if you take a long position, and if the market is going up, that is positive, but i still see latin , witha coming to life brazil perhaps the leader there. Some have been out of favor for while, and there is some movement into that. Separate portfolios. I do not merge portfolios. In the emerging markets being almost all cash, that would be the china and philippines and indonesia right now, waiting for a bit of a pullback in india for that market. Fromeat talking to you singapore. Next, captain america to the rescue. After the break, a chinese internet site improving the health of the marvel hero. Websites hoping that captain america will ride to the rescue. The zeb eckert is with me now with the latest. Of china. E that is right. The captain america, the superhero film based on the Marvel Comics character. Similare video website to youtube is entering into a partnership, an agreement with disney, to help home market the new film to try to boost its traffic on its own site. This has long been regarded as one of the top online video sites in china. It was having a difficult day, the actionpacked captain america to drive traffic in china. Just look at this. They are down, in fact, posting the worst monthly decline in a year. Facing rising competition from. Laces like baidu down nearly 18 in just a month . Yes, the stock has fallen us up and asleep. They say the company has to drive more customers to the site, more eyeballs. Remember, last week, we reported cent bought a stake in youku. They said repeatedly they are not going to be required by another company. Strategic partnerships. And the worlds biggest watch their entering a second week. , manufacturers that need to innovate to stand out. We have been to see how they are managing it. Can you explain in three seconds . The mechanics . My name is vincent, and i am the ceo. To avoiding the liquid inside the watch. Innovation is the key thing for us. The watch, wed just did not want to create another watch. Just because there is another watch, we were looking at the design and the marketing. It is all about innovation. It is between 9 00 and 10 00. I can move my liquid. And the movement is in the center. To losi go from new york angeles, i go backwards. We have something which is easy, but to make it happen is three years of work. Engineering. A bit of sports news, hamilton winning the malaysian grand prix, dominating the race from start to finish. Led home a teammate from mercedes. This gave mercedes a strong start to the season. They won the race in australia. There is been wishing missing Malaysian Airliner 370. And they had a memorial before the race in honor of the victims. And up next, japans upcoming sales tax may force companies to get more aggressive. We hear from successful businessman, after this. ; a quiet debut in hong kong after a 1 billion ipo in hong kong. Conservation,s the threat facing the Worlds Largest living entity. Giving the japanese close for the lunchtime break. We also have china open for trade about an hour ago. Lets see how investors are looking at things. To focus oning chinese banks. First of all, we have the stocks again. We have china bank reporting. Net income beat forecast. Couldg down of china squeeze the lending market. Volume is quite light. Up half of 1 . Na chinas Construction Bank was up yesterday by 1 . Also unchanged. Overall, the banks are one of the biggest talking points. But it is about the demand going forward. The weaknesses what is happening with the chinese economy. Dampening down the credit issue. Margins are quite encouraging. The concern is what lies ahead. As opposed to do what happened as opposed to what happened last quarter. We have a report from the frosty north of china. This year, bloomberg will it has not done anything. The stock is unchanged on its debut. The u look at they priced it at the bottom of the range. Already. Only 27 of the interest has been [indiscernible] let me give you a reference. For three other commercial banks already in the market, may close seven times five last friday. Those three commercial banks did offer shares in hong kong last november, last october, last november. Lets wait and see how this will go. Lets take a look at china Construction Bank. We have had the big three or the big four. Three of them reported last week. How do they compare with the others . China Construction Bank deadbeat the market on both net income and margins. So did bank of china. Four, they do gain a loss from their status in the market. We know that liquidity was tight last year. ,ersus the joint stock banks they all did poorly on the margins. The big four, china banks, may lose. On that front, if we look at why the ratios have not risen too is mainly because the chinese banks wiped up a lot of their bad debt per folio. We have other banks that we are looking at a broad. M a as as well and well. That is very true. They are relying on unicredit. They have management with unicredit. Of 17 4 a portfolio billion 174 billion euros. If you take a look at icbcs net value, about 200 billion u. S. Dollars. Good to talk to you. Lets turn to some of the key events we are watching out this weekend. In japan, the sales tax coming on tuesday. The first time in 17 years. Ministerd be prime shinzo abe upon biggest challenge. Abes biggest challenge. The Consumer Market is, in the longer term, will shrink. Theyds natural that Japanese Companies will become the aggressive that Japanese Companies will become more aggressive. Automobile companies have been very global from the beginning. Now we are more ring moving to more pharmaceutical and others who are trying to expand their business. It has been challenging for to acquire aanies company and how to manage the post merger integration. Now, they are starting to learn to do it. The japanese have become more international. They are bringing in more known japanese people on the board. The Japanese Companies are getting more and more global. Not just of doing business by the key itself is becoming more globalizing. So there is a high chance of them becoming more successful in the m as. Becomepanese ceos may less japanese in the future. Chinas crackdown on lavish spending. Almost little profit change because a weekend demand in europe as well as asia. The summit coming against the bank the backdrop of the missing malaysia and jetliner and territorial disputes and chinas growing assertiveness in this part of the world. Chuck hagel is heading to japan on that saturday. Will discuss the continued debate about moving a giant american facility okinawa. And he will be visiting china for the first time as defense secretary before moving on to mongolia. Lets check in on some of the stories we have that have been making corporate headlines this morning. Could be heading for listening on the nyse. The operator of the unique close qlorating chain the uni operating chain. Spending 10ill be billion over the next year focus on auto and housing operations. Been circling in china but that is about to change. With aet to get a boost discount on phones with stronger net words. That means stronger demand for qualcomms chips. Huawei is posting record earnings. Next, we will take a vintage view with a company that is satisfying chinas growing thirst for fine wine. This is on the move. Wine showstaste for no signs of abating. Leads pudao wines. What does that mean . It is a play on words. Reflects the path to wine knowledge, if you will. What yous essentially have been doing, educating people in china how to drink wine, what is good and what is not. Moving beyond the borders of this world. World. Bordeauxs of this absolutely. A lifestyle accessory, a trophy, to something that is really consumed and enjoyed. That is reflected in what people are thinking and buying these days. But you still have this rush for the obvious stone. Still. Yes, they trophies are still there. There is a wellestablished collective market. Asyou talk to consumers, they drink more and takes more, you see there is a whole world beyond bordeaux. It is is it about reexport into china . The dirty question, really. How much wine imported into hong kong is reexported or smuggled back to the mainland . It is hard to gauge. We dont really know. Is this market growing still . Is not growing at breakneck speed like three or four years ago. There has been a correction. Three or four years ago, in the to 2011 and 2012, there were a lot of players out there. [indiscernible] never met so many people who did that. At exactly and some introduced fun went to china. Government said no more fine wine gifts. No more ostentatious it hit peoples bottom line. People started to drink other things. They werent looking for trophies. They were looking for wines as a daily pleasure, something to enjoy. Wines brought in three that are certainly not trophies. I will kick off with what i would describe as the most controversial, which is a german wine. Airly or unfairly, it has dreadful reputation because of the days of blue nun. Does that stigma still attached itself to people who look at german wine . For some, yes, for some, no. Black nun blue power issue for german wines and scandals in the 1980s. But what has happened in the recent is that people are coming back to german wine. They are finding a riesling with lots of freshness and a very delicate wine is something to be enjoyed at tables with nonformal wine, if you will. There is a Great Potential for that. Dr. Loosen. Very typical for german wines with a little bit of residual sugar. So there is a lovely and delicate sweetness about it. There is also lots of acidity. Very wellwhich is understood by the asian palates, if you will. How much is this . That is 195. That is reasonable. This is the best ever Cabernet Sauvignon that you have ever had. Young. This is a 2012 this is a 2010 from where . Ridge. Is from 71 that they produced was a top line. They have been making wine in a very restrained, almost bordeauxfashion in california for many years. Is painted unfairly as fruit explosions. It received very high marks. Does it bother you that he has so much influence in this industry . He doesnt he doesnt. He is a reverence a reference for anyone who is looking for the styles of wine. But once you delve into the world of wine a little bit further, you can understand which critics palates you get aligned to. How would you look at this spanish . Wonderful wines. Very reasonable. 120 hong kong dollars here. Movementa great finding older vineyards that have been left unattended and unloved in spain for many years. Youngwhole bunch of ambitious winemakers going back to these vineyards, finding great plots of land, making brilliant wine from sort of derelict vineyards. Just incredible money when you think about the flavor, the old vines that these ones are coming from. And spain is a great source for that kind of wine. Becoming more discovered in hong kong. If you look at what is happening on the mainland, increase of spanish wines on the back of quality. Thank you so much for popping in. To come, find out why the Election Commissioner is getting involved in issuing new bank licenses. Mumbai live after this. Monday, the 31st of march and these are our top stories. China Construction Bank talking analyst estimates. Finding chinas bid for banks which are under pressure to raise funds to meet tougher capital requirements. Japans industrial reduction fell into something no one saw coming. The steepest drop in eight months. A pullback to manufacturing has to concerns in the upcoming sales tax hike that comes up next tuesday. Hong kongs anticorruption agencies says it has investigated the offices of jpmorgan. The documentsed from the outgoing ceo. They are looking at to the hiring practices at the bank. Those were the top stories today. Granting new bank licenses is usually the responsibility of a countrys central bank. But in india, the Election Commission is getting involved. Gimme an idea what the connection is there. Down e hunting counting down to elections, less than two weeks away. The government cannot i go ahead and announce any policies. The finance minister has clarified that it does not apply to banking licenses which we expect to come out this week. The Election Commission will really talkay and about its own view as far as granting of banking licenses. We are watching out for about 25 [indiscernible] which are on the radar in terms of the new bank licenses. It is something that has been put off by the government. But we are watching out for a lot of names on the radar. Let me quickly run you through one. Finance. T lnp some of the unusual names on the radar as far as finance , expecting some sort of announcement. I will come back with you on more than come back to you with more on that. Lets take a look at shipping. The Great Barrier reef marine park is expected to triple. The debate over commerce versus conservation. Here is paul allen. Tourismalia trades its reputation on images like this, the Great Barrier reef, home not only to teeming marine life but a living structural coral. It has an uncomfortable never, queens lance history. Industry. Lans coal it provides about 3000 jobs. At that point will soon be dredged and developed into the largest coal terminal. Dredged spoil of will be dumped in the marine pat. Shipping is expected to triple. The development hasnt escaped the attention of the United Nations which will consider in june whether to list this heritage site as being in danger. We are running a huge risk. We have the International Community concerned. Unesco is concerned. We are talking about millions of dredged spoil. We are also talking about increased shipping. The resources counsel says there has only been one in one safety incident in 10 years. It points to a government study that finds most of the damage to the reef has been due to weather events and crown of thorns star ship crown of thorns starfish. To declare the Great Barrier reef is in danger but we need to understand their motivations. What they are trying to do is gas down the coala n and export industries of queensland and they will say and do anything to reach their goal. Be advised we have six volunteers boarding your vessel. The target of greenpeace and other campaigns. But it is also attracting the attention of fund managers. The issue of shipping around shaping someeef is of the events in queensland. It raises a number of questions about how those companies are managing what potential future risks might be. With any development, there are risks. It is beingcase, balanced with the greatest organism. Shanghai, as is often its want, investors are not playing. Japan closing out the morning with gains. Under just amarket bit of pressure so far. Stay tuned. Asia edge. Is coming soon. Richard harris will be the guest. It is the middle of the trading day across the asiapacific. This is hong kong and this is asia edge. Now a look at our top stories. Higher taxes in japan. Australia says there is no time limit in the search for the missing Malaysian Airliner. Sure knee over who gets hired, the latest investment that may be facing questions. On the eve of the failed tax hike in japan, we will look at the impact on business. We will hear from one of the countrys richest men. Why oneill look at chinese internet site is recruiting the help of marvel comic hero captain america. Commerce or conservation . We have a special report on claims that the demand for resources threaten the reef. All that and more on asia edge. A a look at the markets, a dreadful quarter. Very different, a 16 this time last year. Australia has seen a strong gain of two thirds of 1 . Japan is up 1
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