Over to tokyo. Sherry and is live. How bad the numbers were . Rish, it was quite surprising to see that revised gdp data out of japan today. The gdp shrinking an annualized 1. 9 and the third quarter. More than the initial breeding off contraction of 1. 6 first it. It was quite unexpected. Gave a the 24 economists figure that low. We had expected gdp data to be revised upwards. This figure showing the japanese economy is in a much deeper recession than originally thought. That will be a below to Prime Minister shinzo abe in the election season where we have less than a week to go to vote on sunday. Chari, lets discuss as he goes to the polls, he has a whole host of issues. Can you walk us through some of the key ones . Rish, a lot of Unfinished Business for the japanese Prime Minister. Three key issues. Lets get started with inflation, prices. Inflationary policies and not quite there. Rising only 0. 9 in october. When you strip the april sales tax hike. To carryay be forced out even more stimulus measures in the coming months, already unprecedented easing has plunged the currency to record levels area we are seeing the yen has weakened very much as that of course was a key for abenomics. The wiki yet has been achieved and is around seven year low breaching the 121 level. The week hersey halfing helping the weak currency helping big exporters. Had the number for the current account balance. Posting a surprising large billion. F ¥833 however, the wiki and is having en is hurting households. Corporate bankruptcy in 40 to the mostd since they started keeping records. The economic recovery is faltering while the sales tax hike that was planned for next year, that was postponed by 18 months. The chief cabinet secretary saying while that will help the economy, listen in. The Prime Minister has shown his determination to revitalize level inmy to the which everyone can withstand the sales tax to be raised to 10 in 2. 5 years. He is determined to bring all possible policies to ensure there will be a substantial increase in wages. The deputy chief cabinet secretary talking about that plant sales tax hike from 8 10 . Economist saying it will help, especially gdp to grow by 0. 3 . Tax hike, with that being delayed, they still have to figure out how he will have to cut the deficit. Thank you for that. More of what is happening in japan. How the stocks are doing in tokyo. Jobs report submitted a rally taking place in new york area in new york. David. However, over to not quite sharing this because of the awful data we have. Up 0. 25 on friday. The gdp numbers sherry pointed out looks like a very close. Very disappointing. Coming in at three times higher than expected. What japan is looking like. The movers here. You have a nintendo down 2 . You have the stock, essentially being cut by some analysts. You look at the underlying fundamentals of the company. At least eight analysts raising the private estimates in september. They recorded a loss last year and we could be looking at billion, the two most recent changes. Bumping up their profit estimate three times. ¥36 billion. Right now down 2 . Honda, also a change here. Cutting by credit suisse. Jpmorgan cutting that want to mutual. Session data one two neutral. That one tocutting neutral. We have australian banks. Off the recommendation of an inquiry that they raise billions in extra capital to prevent against future crises. Sidney calling the big 4. A bit reputational but they have been singled out. The person giving that attention is talking, the former chief executive of the Commonwealth Bank. Yes, thats right. Not singled out the big 4. Theinquiry he offered into Financial System of australia has 44 recommendations as much has to do with is the recommendation that the big four hold more capital. Theres no suggestion that are not strong, david murray wants them to be in the top corner out and make sure they are able to whether any potential future Global Financial crises. He is speaking now in a speech title supporting australia growth. Including the effects of the Global Financial crisis. This is not been an inquiry that established to deliver or prevent a particular outcome. At an being conducted exercise to assist the strengths and weaknesses of the system. Considered the Financial System and the contents of australian economy. Particularly a smaller, wealthier, commodity exporter and will describe the features of a good system from australia. In formulating our recommendation, with focus on the National Interest and the needs of users. Our report is evidencebased and presents costbenefit tradeoffs in support of our findings. Is to explainay how our recommendations will adopt the Financial System to meet australias special circumstances and the interest and the interest of the nation as a whole. Our first recommendation is from 2 paradigm shifts, namely those related to resilience and consumer outcomes. Uniqueill do with our system and lastly i would like to talk about competition, innovation, and we regulatory improvement. While many of the inquiry recommendations stood the test of time david murray talk about his inquiry. I will get to the point of the matter for him. Things currently needed to hold 8. 3 capital ratio and thats likely it will be increased to 1012 . The big four will have to raise the Painting Always doing the math. Happy about this but the banks are shrugging it off. The news had been leaked out in previous weeks. Not completely unexpected. It looks a lot of this has been priced in, rish. We will get more headlines from david murray and we will bring them to you. Though party is over. Charges against one of the top officials in china. We will go to beijing for the details. A look at other stories. Pollution in india. The government is sayingemissions is necessary. A Richer Country should bear more responsibility for global warming. That earned biggest carbon emitter in the world. Beijing has rejected International Arbitration over disputes and the south china sea. They are claiming. 20 over the area. They are claiming. Pretty over the area they are claiming full sovereignty over the area. In highest ranking official the anticorruption campaign. Stephen engle is in beijing with the details. Quite a fall for zhou. Yes. Differentll for a person in similar circumstance. We have known for quite some time that in this investigation was going on and now we have the official Party Confirmation of expelled for been possible serious violations of political, organizational, confidentiality. The more salacious details, the sexy angles, probably bad choice of words are the moral allegations against zhou, who is the former internal security czar. Abuses are said zhou to help friends make profits and accepted huge bribes personally and for his family members and have multiple adulterous relationships and traded favors for sex. It was the allegations about leaking state secrets that is perhaps even more significant because this means formal charges would allow for a closeddoor trial on like the other trial which was open. Criminal code dictates the suspect cannot be tried publicly if the case contains state secrets. That is important as a former member of the Standing Committee at the top echelon of power and as a commander of chinas massive Security Apparatus and spying the unit, he could spill a lot of dirt on others in the party. Remember the other stood up to finally end the public trial and kind of denounced many aspects of the trial. That is unlikely to happen this time with the trial of zhou. Many people saying is another step for Prime Minister no president xi jinping for power. Xi. Efinitely strengthens battles withine the power in china. You would not believe. Zhou is perceived to be on the wrong side of xi and this is an important move of xi. Standing committee members, past and present, have essentially had immunity from prosecution on so now. Xi is changing that and promising to go after tigers and flies, big and small who are corrupt or allegedly corrupt. More than 80,000 officials have been punished over the past three years for breaking party rules. None is so high up as zhou. It is a tricky case. The party wants to portray transparency as it did with each other but in that case, it backfired. He was defined on the stand. The party does not want to reveal to much on how corrupt the top leaders may be. Rish . Steve, thanks for that. We have to take a break. The great divide. Asian economies hit the brakes. Details are coming up. I am david english. These are your headlines. But atback some gains, an eight year high for the dollar index. They u. S. Economy added 321,000 new jobs topping every single forecast from 100 economists. , theres little evidence so far that wages are growing as fast. Japan is a different story for the economy. It shrank by more much more than economists had expected. Revisedaccording to the or final numbers out of the japanese government. Iant revising its course indiana is revising its course. November trade data and were looking at forecast from analysts and expected to see another huge surplus of 44 billion u. S. Dollars. The fourth month that the surplus was north of 40 billion. Growth in exports and imports are expected from the pays we saw back in october. Those are the stories are driving your markets. Lets get more. From the bank of Montreal Financial Group and joins us. Lets talk about japan. This move has been quite far, veryarea very fast. What happens next . The boj staysble in dovish in the first half of 2015 and most of 2015. It is possible because real wages were so weak and japan lot to do if has a he gets his mandate. And were running a sizable deficit and the devaluation could have contracted. Not expansionary implications. That is the first thing. As japanese investors invest more abroad of a Customer Expectations of the week yen at dennys to be brought more onshore. It will put upward pressure on the yen. They need to stay dovish. Structural reforms, theres been limited movement there. And haveg about this to do after the elections. , they wanted a the yen to depreciate and at what stage do they wanted to start , overiating and ongoing doing it before coming back . They probably have the structures upward on the u. S. Dollars working in their favor. They can stay dovish in the first half of 2015 without doing anything more aggressive. You are right and a good point. I reiterate this point. Negativeeal wages were and they were running a deficit when abenomics started, the of beenions could contractionary from this large devaluation of the yen. They need to be careful. And carol for the Fourth Quarter and people predicting 2 growth and may not materialize. Is that what you are suggesting . Withoutif it does structural reform and do that consumption may be a lot weaker because of the enormous devaluation, demographic shifts and the state of households in japan means essentially that the policies of abenomics could be frightening some household. The medium term growth is still questionable even if they get a positive result. What is behind it . The diversions of policy looking at ecb and the bank of japan and the sad. That is what is doing it. Fed. D the and sterling which is a bit strange. The u. S. Vergence of fed is helping and it looks like it is ready to help more. We expect it will help more in the first half of 2015. You have the cyclical support from the fed and expectations of normalization and a lot of structural support as well because of the modest deficits and declining or nonexistent in some cases away from the dollar. Most other Central Banks are weakening their own currencies against the dollar. The outlook for the dollar is favorable for the time being. And a euro as well. 123. We expect the ecb to up the pace. And of course, mario draghi disappointed, not doing anything. Stephen gallo from the bank of montreal. Schools close. Not just the capital but elsewhere as well. The title heading there. Over to what is going on on the ground. The typhoon heading there. Tell us what to the conditions are like where you are in a manila area good morning. It is bracing for strong winds and heavy rain as typhoon hagupit is close to the capital. Is on single number two, the second lowest. Are warnedreas against possible flash flooding. Schools and government offices are closed. No stock markets today. The latest numbers here. In the central philippines, more than one Million People were evacuated. It is probably one of the most massive evacuations in philippine history and at least 4 people died during the storm. Provinces are without electricity up from one dozen last night. Thousands are stranded. Nearly 200 flights have been canceled. To delay thed recovery of areas hit by a super typhoon haiyan in 2013. More than 6000 people and left over 1000 missing. Cecilia, thank you. Joining us from manila and giving us an idea of what is going on the ground. Slams into the philippines. Three minutes to go before we get trading in shanghai. This what we have at the moment. Features. Up by 0. 5 . Qantas and whyat is after the highest in three years. P pyongyang. Misfortune. At malaysian airlines. How singapore became one of the greatest startups. We have equity markets. The trading day. We have the tailwinds from wall street. Jobs report. A clear look up what is going on in this part of the world. Between gains and losses. Here is david glass. I saw the wind. The primary reason we are not seeing trading in the philippines. Manila opens up usually at this time. That the market is closed. Openingooking at the here. Hong kong is all. Shanghai is giving back some of the Massive Gains we saw. It was up 9 . Hong kong is. North of 2900. The opening levels for the shanghai composite. Here we go. 29,000. 40 3 . Still all last week, we were up 250 points. 93 globalk across the indices we track evelyn byrd, by far we track have bloomberg, by far. When we compare valuations in shares and that has to be reversed. And keep in mind. When we have Something Like this and additional and let me get the number. 370,000 new brokerage accounts. Capital structures and all of that, we tossed out of the window. There we go. 2 , hang seng is flat. About 0. 2 . Down specific securities. I will get to that in a bit. Buy. Up 0. 7 . International power is down 1. 2 . One group of stocks we are following very closely, brokerage. At a group, 50 . Top over which by the way 100 let me get the number, 100 billion on friday. Thats roughly the size of the new zealand economy. Lets leave it there for now. Rish, back to you. David. K you, north korea is denying any involvement and the assignor attack of cyber attack of Sony Pictures. Are saying that have nothing to do it but it was a righteous act. An interesting choice of words. They denied any involvement in this. June,w that indeed in north korea, they said they will mercilessly destroy anybody tied to they are saying and maybe a righteous act and just punishment for the evil doing that has been done. The film is called the interview, which is appropriate. Week havein the last soared per day. 44 millionelf cost to produce. James franco is the presenter. They fly to north korea to interview a north Korean Leader and a cia recruits them to assassinate. That is the plot. Heres reaction from the north korean. And the choice of words is very interesting. Attack is the righteous act to sympathize of the supporters who paid for with our uphill. It can only be seen as a just punishment for his evil doing an unjustified actions. It is not north korea and its sympathizers around the world. We look at the infrastructure of the internet in north korea as well. Is a hotel in bangkok. I heard a fivestar. Either this is april remotecontrolled hacking through the hotel, use in the hotel, it could be a remotecontrol hacker. Public areas. A. M. And that was 47,000 employees were hacked including mr. Stallone of rocky same. Salaries, addresses, Social Security, emails, all of this was hacked. A mannert done in where there was a monetary gain. That is right. It is called dark seoul. This was dated back to 2013. Ofs report could be the word work of them. Keep your eye on that one. A bangkok fivestar hotel is the center of all of this. It is almost like a script in itself. It is. The interview, with a few more scenes. John dawson there. Our attention to some of the other stories. Making corporate headlines. Yvonne is here. Hass and inquiry in austria found major banks need as much as 25 billion in extra capital. Against future crises. The top lenders hold about 10 of their assets of capital and compared to 12 . Emerging in are what may be hong kongs biggest property ipo. Sources say a chinese developer may raise up to 3. 8 billion. The Company Controlled by a chinese billionaire is looking to sell a 15 stake. Out in newve broken delhi after a woman said she was raped by a driver off uber. They said they suspended the account. Reports are that he has been arrested. Those are the top corporate headlines this hour. A new chief executive is to take over Malaysia Airlines following a highprofile incidents. One creche and one disappearance of an airplane. Lookedaysias government to ireland to find the man who will try to lead to the turnaround. It is quite something. Of work in irish aviation but, bosses of various becoming a bosses of various airlines. His name is christoph mueller. He runs an airline that has had its share of problems. His a noted turnaround specialist. That is why he was chosen first turnaround experience for retheme is set to take over as early as march and perhaps as late as may. Some are calling the biggest challenge today and the Global Airline industry, fixing a crashesthat has had 2 and that caused the deaths of over 500 passengers. Chris left lets talk about some of the tough tasks. All love is about reputational damage. Customers to be confident after these twin disasters. Of course the shooting down of mh 17 and restore investor confidence. It is worth billions of dollars. And now, hoping to restore confidence. Company which is being carved out of the Current Company and which mueller will lead. Thank you for that. The zeb eckert. Shares in qantas. We will stick with aviation. Return to profit. Over to paul allen. A long time coming. They are saying they are turnaround but are they really . Here in qantas has been turning the corner for a very long time. This is certainly encouraging. A firsttime profit of 350 million. If it happens, it would be the best result since december 2010. An impressive turnaround. Just a few months ago, we were talking about a fouryear loss of 2 billion. Mainly due to a writedown of valuation of the fleet. At the time, the ceo described it as an understatement. Now he is saying the strategy to transform our business is working and certainly the share prices responded very favorably. News qantas shares are up strongly. Although course of the year, up pretty well. A plan to trim 2 billion in cost is quite harsh. You are cutting 5000 jobs and a freeze on salaries and no new ventures. And even stripped out life rafts. Raftill understand a life is not something you need. There are fuel savings to have their. Joyce, time to deliver. He has been in charge five years. Said that they have consistently are about to turn the corner. With this forecast, it looks like it may be actually happening. Paul allen. Of course, the oil price. Aviationient is making fuel that much cheaper in helping the bottom line. This decline is making Aviation Fuel that much cheaper and helping the bottom line. Yeah, as we talked about much of it is about how a percentage of your total fuel do you hedge. You look at the fuel price. 65 a barrel. Rish pointed out, a fairly the proportion of cost. I was looking at data from bloomberg intelligence. We are looking into asiapacific, typically, 35 of asiapacific airlines of revenue, 35 and a proportion is falling. Their proportion is off a little these large and diversified airlines. Cargo handling, more productivity. 67,ight now and looking at down for a 50 day. A fifth day. Checking out on singair. Where you are hedging. With had a story out that some of these carriers have hedged their fuel exporter at an average of 116 u. S. Dollars a barrel, depending on how big of a portion they hatch. When it happens, a sudden drop in fuel prices. Take a look at the six month chart. It shows you the decline. You are looking at fairly large losses and obviously, you have to pay a lot of these charges, fairly prematurely. That is why oil there we go are. We are back to 65. Up next, after the high comes the crash. Or are the a blip good times over . Breaking news. Honda making headlines. The beleaguered airbag maker, takata. Customer andiggest they are look at a global recall. Considering a global, possible recall because of the possible airbag defect. This was we have at the moment and we will get you details as we have them. We have china. 14 minutes. Guest. Th our next he recently raises forecast of the market in shanghai. He is in the studio. Just undercut after the rally we had . Price target of 2800. In the past two weeks, the market went up which on a daily basis. , were operating in a model. Nt people are looking to get back into the markets. The market is going up faster than we expected. It will be larger than expected. What is the high and the shanghai rally . Mostly, the catalyst is the Interest Rate cut. People did not think the timing of the interest cut before it happened area happened. Out to that, people realized that the central bank is at the tail risk. Meaning that the tail risk and the chinese really economy is not going to fall out. It keeps people are you alluding to the Housing Market . Stocks are about how we are going to be not how bad we have been. Suggesting that house price tag and that is why the people bought houses now because they wanted to buy stocks. Yes and no. Historically, the Housing Market is the only way you can borrow up of your capital base they get into the Housing Market. Now, the new way of getting into the stock market which is you can borrow money from stockbrokers and banks and use the money to get back into the market. It is not about how bad the Property Market is going to be a how much better equity is better than the Property Markets. Abouts talk little bit speculators. Conference and china when youre asked by some of these futures traders what is the difference between a speculator. Very difficult now. People havehen better b it would be touy to buy. Valuation is cheap, i think at the moment, and reason. Is also momentum, isnt it . Havehanghai market may despite losses will seeing this morning. The wholetum and mentality and you have an example of that. Trading, the way trading the equity market has been, back in the past cointreau years, we have a lot word in a downward spiral so equities largely within a very tight range. Of environment, what works for traders is you want to get out before anybody else does. Modethe equity market, the of operation is trading. , the question is about you do not want to get left behind. Endhat would you in the look at and what you make of the stock connectors as well . For many, it has disappointed. I know. It is not being used up by investors. More wayshere are than want to get back in, you do not have to go through the connector. That is why on one hand we are not seeing a lot being used in the connector. On the other, the chinese equities are going up. Joining us to get his reaction to the Interest Rate seen by the peoples bank of china. And what is going on with the huge rally for stocks in the shanghai. Up next, why singapore is being described as a great disruptor. Going to tokyo. The picture of the nikkei to 25. 225. Gains and losses. It is not laid off him positivity. Revise the gdp. It is not playing out in positivity. A contraction. 1. 9 . Suggesting that revision could be more positive or could have been negative in its entirety. At sydney asx as well. The banking review taking place. The recommendation that the big four banks increase their capital ratios by Something Like 25 billion between them. 1. 1 and the temperature is 32 degrees celsius. Hong kong, here we go. Upside at the moment. Shares in hong kong with 23 minutes of trading. Singapore, lets check in. Have a look. 26 degrees celsius at the moment. Lets as were talking about singapore, over 1000 jump in gdp and the city state over the past cointreau decades. It is a major turnaround story. Decades. Past 4 it is named one of the most successful economic startups. Haslinda . Rish, singapore broke away from malaysia, few people thought they could be successful. Exit and it was a poor colonial outpost with no natural resources, just a strategic location. The government, specifically the founding father, he had a vision and a master plan. He wanted to make it a oh aces in a third world region. It took innovative approaches. To seta couple of things the country on the right course, including keeping the economy open, which is one of the big spot in the world. It is already been opened seaport. Wooe Foreign Companies and investorsd with recessions with no red tape. Singapore is the easiest ways to do business and it has been for seven years in a row. It is the secondmost most of canadas country in the world. Cap innovative and disruptive. Have does not have a single drop of oil to is named yet. The country is the biggest maker of accounting for 70 of the global markets. It is asias biggest oil trading hub. To a successful economy. Rish . Haslinda, thank you. Our correspondent. The singapore success story. News of thatore, is in a special edition of Bloomberg Businessweek n a his stance as of today including several other innovators whose ideas have changed our world. More coming up. A look of what is going on with the chinese economy and trade data on its way. Coming to live from hong kong. High forecasts. Hi levys deep in the recession before elections in japan. When an orderly city shake things up, singapore the destructivor. We will be live in singapore. Of course, we are live right here in hong kong, and we will find out what is happening market wise. We are 30 minutes into the Training Session in shanghai. Is up substantially. For the shanghai composite, we have reversed some of the earlier weakness. Lets take a look at the shanghai composite this is one of the areas, they are really on the back of this map. I think the last piece of data 370,000 that is what shanghai looks like at this point in time. We are looking at oil and gas. That is also at play. Mistaken, china and opec r a 20 discount. We are down to about half of 1 . That makes up a fairly big portion of the sector. The brokers are continuing to rally. Lets take a look at that list. What we have here is a story of the bigger the stock is, the higher the market. The cheaper the stocks price to book. If you want to buy into the sector, that does make sense to buy the big one. Say, you go down the line. We are at aegion, regional benchmark. Your than expected contraction. Close to 2 contraction here. For the trade data. Back to you. He does not want we are live with a look at just how bad these numbers are. Rish, that number this morning caught us by surprise. Japan shrunk 1. 9 in the third quarter. The initial reading last month was saying that the contraction would be 1. 6 . Economist saw the economy contracting that much. We had actually expected gdp data to come a bit better, and be revised. With this figure showing the japanese economy deeper and recession, that will be a blow for the Prime Minister in this election. With less than a week to go, the sunday vote. What are some of the key issues that the Prime Minister still needs to deal with . There has been a lot of pressure on him in the last few months to get going with a Reform Program that tackles these structural issues facing the economy. I think we may have a technical problem. We were just discussing that election. After that poor bit of economic data, seeing the gdp coming in at a worse contraction than had been anticipated, and also a worse contraction than any of the economists predicted. They suggested the revision would have been an improvement. We certainly didnt get that. North korea denying any involvement in the cyber attack on Sony Pictures. Righteous anger. Hackers have targeted them for almost two weeks and leaking private details of employees in several hollywood stars. New details have emerged about the attack. Unknown it came from bangkok. Big games for qantas stuck on the way up in sydney by about 12 , with cost reductions in lower oil prices, it has helped to drive margins wider. Night analysts say they forecast losses for the australian airline. Raising billions of dollars in extra capital against any future crises. The big four banks have a pretty good reputation, but have they been singled out for a change . No, they havent. A formuiry is in itself of the head of the Commonwealth Bank of australia. David murray wrote this report and he is not calling the banks week. Weak. He would just like to be like them to be a lot stronger. He wants to see them in the top quarter globally. The commission by the treasurer this is what he had to say. Perspective, i have long stated that it is vitally important that our banks be more capitalized and they are, in they are. What the murray inquiry is recommending is a further look at increasing capital, and that is something that needs to be dealt with by appropriately by the regulator. The question is how much capital will they be required to hold . That is a discussion that will be held between the regulator in the major banks. Currently it is about 8. 3 . The inquiry recommends it be lifted about 10 12. 2 . 15orks out to be about billion 20 billion. What has been the reaction from the banks there . They can be that happy about it. Now, they are not that happy. That thiseshadowed would be the Major Development of the report. They have had plenty of time to absorb it. One says that we are adequately capitalized. That even a 1 s point rise will mean more on the home loan. David murray says such claims are exaggerated. But as food stocks, they seem to be shrugging it off. It looks like a lot of this news had already been impressed in. Being pressed in. The Smaller Banks in australia are welcoming this, because they are already required to hold more capital than the big four so they see it as leveling the playing field,. Australian eggs are strong and there is no crisis but you have to start questioning why it was commission in the first place. They have these reviews once every 15 years or so. The first one recommended floating of the and dollar the aussie dollar. Thanks. We have breaking news from china, releasing their latest trade numbers. Stephen engle is there. Exports coming in a little below expectation. 4. 7 growth year over year. We are expecting a consensus estimate is about 8 . The lowest estimate for economist was from 5 , in the number came in below that. It is a considerable mess. The previous month in october it was 11. 6 . In june weowest had 6. 2 . It is still in positive territory. It is eight straight months positive, but a miss on the export. Imports are also in this, falling 6. 7 of the assessment. This breaks the string of a couple of months of positive territory for imports. We are back in two a negative scenario for imports. Much of the summer we had that drop off in imports as the economy started slowing and factories started slowing purchases. Trade balance coming in is at 54. 47n expected, billion. With the imbalance exports growing more than the imports again, this is a slowing economy, rish, and we thethat pmi on december 1, gauge of manufacturing competence going down to an eightmonth low that 50. 3. The first one in a couple of authorities know that this is a floating economy and they are trying to do something to stimulate it, and it looks as though export demand from places like the United States is not quite picking up the difference. Exports gaining 4. 7 last month. We were expecting a gain of these percent. 8 . Stephen engle in beijing. Rachel certain this is going to pay off of the long run. Getting to the china trade date. 4. 3 . S are getting about imports dropped 6. 7 , the number we got through. Billion more 54. 4 than the median average. Turn one is the week recovery of the Global Economy. Also i think there is a further normalized problem like high exports. Like in september and october. I think it is a combination. Tell me about this. I think it is mainly because the trades are extremely high. For the price it acreased 800 and also 180 high. That means there is something wrong. Trade i thinkt with the recent effort. Normalized. 4. 7 . Export is up with imports dropping, what is that telling us about the state of play of the Chinese Consumer and the retail side of things . And also manufacturing as it imports these commodities . I think the imports site has dropped very significantly, and i think that is mainly linked to a weak manufacturing sector. Especially copper, steel, oil. Ithink for the oil prices dropped the whole value of the export. Also trade balance is huge, though. 54. 5 billion. The u. S. Is doing well and the Global Economy is not white as bad as had been feared. For the global recovery, it is quite next. I think that part has picked up. But for the european side in for the japan cited is what weak. I think to mystic is even weaker than the global demand. This is the new normal, i have heard this phrase many times. What is new and what is normal . Means the china gdp growth will slow, and we expect it will forecast at 7 , and reach the percent, and on portside export the x side in the future i think investment will be the driver. The investment spending is one of the key drivers, but these did to become more efficient and you are suggesting reform in order to achieve that and that will be the highlight next year. In, in the longterm the short term, it is very hard to totally change the structure. It will continue to be the driver, because china is pushing plans. Itr, it will happen will increase chinas investment side. You keep on seeing that overcapacity. Continually see yes. We think next year, that situation could maybe improve a little bit. For this year the base is so low thinkr the next year, we because of the investment very quickly, do you think people will put off investing giving its renewed surge in business and nationalism . I am pretty positive. We have the reserve, with u. S. Secondly, i think there is a huge need for infrastructure globally, especially for asia. If china can initiate an effort for more structure i think it is a winwin. I think we should improve efficiency and also introduce and also private thank you very much. Why singapore is being described as a great disruptor, coming up. Gdp has jumped by over 1000 in the last four decades. It is a major turnaround taking place. We are talking about singapore since it split off from malaysia. It was named one of the most successful economic startups. We are in singapore with linda. Some people call it the little red dot. I guess you could say the little red dot was an experiment that went right. A poor british colony with nothing but a strategic location and a great vision that allowed it to go against the odds. No one knows it better than the founding father of modern singapore. You set the course with a master plan. To took innovative approaches even in the early days. He kept the economy open, including its seaport which is now one of the busiest ports in the world today. It attracted foreign capital, technology, talent, tech. Tape, no no red corruption today, singapore is the easiest place to do business. That has been so for the past seven years. It is the second most competitive country in the world. Singapore has been innovative, disruptive. One of the Fastest Growing industries in the country is the oil rig business. They produce 70 of the global supply. They employ 75,000 workers. It is also asias biggest oil trading hub. That, despite not having a single drop of oil to its name. No oil to be found. It has grown its economy from scratch. Received anrning, i email from you were in new york who said that this story is a complete propaganda story. The data and rankings were done independently by the world bank and World Economic forum. To gdp per capita is higher than the u. S. , higher than germany. One in six households have 1 million in cash savings. It has done remarkably well. It certainly has. Tell me about the government planning. It is very carefully orchestrated. It because criticize they suggest that it works against the spirit of business. Singapore,ase of Government Policies have promoted is this promoted business. Policies thaty are not set in stone. They wanted to see how they could encourage innovation. Big new to promote a culture of diversity and tolerance. More than 20 of singaporeans say they will start a business with him three years. That is double. Nearly 25 of those between 25 and 34 said they plan to start their own business at some point. While the Government Policies have driven the countrys economy, those policies have always been ahead of the curve. They are forwardlooking. If you want to find out more, it is all in our special edition of Bloomberg Businessweek. There are several other innovative ideas that have changed the world we live in. A quick look at one of the we have a typhoon heading toward the capital. It is the strongest this year, slamming into the central region. F the philippines thousands have been evacuated and three people have died. This is an area which has also been devastated by that super typhoon last year. Surging weay, have a look at what is driving up the stock. In line for its first profit in years, qantas is surging. Pyongyang,de in reveling in sonys ciber misfortune. And over driver is accused of raping a passenger. Right now, we have a positive story coming out of qantas. Asiapacific stocks. Up. Tocks we are having a look at the action. Take a look at australia. It is outperforming just about everybody else. We will get more details on that in a bit. It is also a little bit about this movement in commodity prices. Sx200 is being led by the banks. We are up 2 for that. Lets get into that 1. 7 and 2 . They are keeping their outlook for the Global Insurance sector at negative, we were talking about this all morning. 25 billion as far as fresh five out of the last six, that is driving things over. In sydney, we are up 1. 2 . Let me get back into that metal prices. Gold is now up. 71 per metrict ton. Oil is continuing to fall, driving up airline shares. Let me show you what is happening with qantas before we get into the stock. It is surging, now north of 14 . We could be looking at the best one in four years. Back to you. Thanks. Just want to keep you up on what is going on they are going to return to profit. We have been having a look at this. It has been a long time coming. Qantas is saying that they are finally turning the corner. Do other people agree . Yes, the markets are certainly responding warmly to the news. Qantas is forecasting a return 300 million to 350 million. It will be their best. Since the end of 2010, and what a turnaround, last year they posted a stunning loss. To be fair, most of that was due to writedowns on the international fleet, but they underlying of 646 million. The ceo described that result as confronting. Today is saying the strategy will transform the business and it is working. Looking at 2 billion in savings it really has to be brutal. They have been quite creative, and of course we have oil prices on the way down which is helping them along. That is definitely helping. It has come at a welcome time. But as for the brutal side of they areare asking freezing salaries, but they have been very creative when it comes to saving on fuel. One of the things they have done is removed heavy liferaft from qantas flights. If you have ever done that, you will know that a liferaft is going to be of very limited use to you an emergenci it was a good idea and it is paying offes. Ceo has been charged for five years and has been consistently saying that qantas is about to turn the corner and it hasnt happened. For his sake, it has to happen and now it looks like maybe it is, rish. Thanks. We look now to malaysian airlines. A new ceo there setting to take the helm after a disastrous year for them, the highprofile disasters. Ireland willt try to lead this turnaround. A number of people have been working in irish aviation. It is quite remarkable. We are talking about a 52yearold german. He let the turnaround there. He has led previous turnaround efforts in belgium and brussels. It went bankrupt, didnt it . Malaysian but i guess airlines is looking at his success in aer lingus. Noted aviation turnaround specialist and this may be the toughest job in the industry right now. He has to leave a 1. 7 billion turnaround. 15,s prioritizing december and a new Company Begins operations next july when it will have 6000 fewer workers. He also faces the challenge of dealing with the very powerful labor unions and malaysia. A bloated workforce has been one of the key criticisms of Malaysia Airlines in recent years, and lets not forget the twin tragedies that have casued 537 deaths. We still do not know where one of those planes is. One of his problems is getting people to trust these airlines, restoring its reputation. That is probably the top of his to do list. It is. If you want a commercial airline you need commercial passengers. The wake of the strategies of these tragedies, that is the priority. He has the task of restoring investor confidence, reinventing his tarnished brand, and importantly booking a profit within three years. Thank you. We are going to take a look at what is going on elsewhere. Some other corporate stories mazda says it will recall 330,000 vehicles. The japanese carmaker says it hasnt decided on a nationwide action program. In may include the master 6. Honda is also considering a recall. And googler driver in india is accused of rape and has been arrested. Earlier in new delhi after the incident made headlines. Uber says and suspended the employees account and is working with police. It operates across 11 cities in india. More details emerging on what may be hong kongs a guest property ipo. A chinese developer may raise it to 3. 8 billion. They are seeking to sell a 15 stake. That is a look at some of the top company news. North korea has denied any involvement in the cyber attack on sonytures. Pictures. They are saying that they are not behind it, but it was a righteous act. They have come out and said they are not behind it, they deny any involvement. Do often use words just punishment for evil doings. About howtalking north korea would mercilessly destroy anyone tied to this movie. It is called the interview. It was on youtube use of trailers sorted tenfold. Soared tenfold. It has been massive publicity. In the movie, they go to north korea to andrview the great leader, while they are there the cia recruits them to assassinate him. They were unhappy about the movie. Here now is the north korea news reader delivering this. You can hear house during this is. How stern this is. This attack is clearly the righteous act of our sympathizers and porters who came on board. The misfortune that Sony Pictures experienced is only a just punishment for an evil and unjustified action. Reading off script. They deny any hacking of any kind. We know they do have the internet but it is fairly rudimentary. Spreadve said that they across the world some investigation has proved where all this originated, where the hacking happened. They traced it back to bangkok. Whether it was a remotecontrolled hacking that came from that area in one of the rooms or in a public area. Employees details were released including addresses, Social Security numbers, contact details. And several hollywood stars. It is pretty intense. They had south korean media companies. It seems that they are the likely source. They were worried because it is a move to the greater career region. True sympathizers and supporters of north korea. We are heading into a break. Oil prices. Will they continue to lurch downward . Im rishaad salamat. This is a look at our top stories. Imports fell almost 7 . Just last week, they said they would maintain growth within a reasonable range. They wantthe news just days before japan has to the polls japans recession is deeper than estimated. The economy shrunk 1. 9 . Onwor that is worth been the original estimate. As 25anks need as much billion in capital. Holds abouters now 10 of their assets in capital. We have seen crude oil drop, many having farland far enough to stimulate demand. We have been managing director at global commodities. Great to see you. What is going on with your market . Thanks for having me. The markets tend to drop further than muchanticipated. I think it comes down to, effectively, the amount of revenue they are prepared to lose and how much they are prepared to retain. Relative to gaining market share. What we are seeing now is probably eight of the top 10 producers starting to fall below cost of production. Ultimately, i think we are getting close to the lows. Northern, week could see natural gas driven by weather but the big story is sorry, whenssia will the saudis stop selling . It . That is the thing isnt how do they see it in their interest to drive the oil price down . A lot of people say they are trying to drive i think there are three things. Is, if they push the price down it is going to put on putin. Itd. Will allow the chinese to develop their strategic reserves. Anything that is produced over 65 a barrel, they will start questioning whether they can get financing in the new year. There are three things happening. That is oil for you. What about the rest of the complex . There has been an overall setup when it comes to the commodities complex why . Think in the food sector have a look at wheat the reason it goes back to moscow. You also see demand for corn picking up. There are commodities out there that do represent some fundamental rationale for buying them. Metals,like the base you dont want to be in. You want to move to cash or look for an alternative invest. Lets get to what you sent me earlier. Why commodities and why now . Lets ask the first part of the question why commodities, apart from the fact that it is your bread and butter . It is bread and butter but it is everyones bread and butter. We continue to consume and that is why i have been falling have been following them. Why the low cost of production . Look at the ratio of a basket of commodities to a basket of equities. Alltime highs are unprecedented. The third thing is demand. Demand for food and fuel is not declining. We are still consuming it. Then you look at the third thing, which is risk. It can impact on a commodity because it impacts on the supplier. That is the rationale going forward. Low cost of production, event risk, and political risk. Who know what is going to unfold in the middle east in the next three to four months . That is why commodities the other aspect is why now. I am always i cant help it. Bullish. Be ultimately,ying is you can buy something that has been produced into a silo cheaper than what it was to get it there. It is buying an important that cost 100,000 to build and you can buy for 80,000. The longer these questions remain in that case, you mentioned the ones you favor. Food and wheat and etc. One of the things he said he would stay clear of what are the things you would stay clear of . There seems to be enough copper out there. Another one is caught in. There is a huge amount of cotton. Anything you see increasing you start to try to cut back on that. Oils is another example. They are the sort i would steer clear of. You want to go into something that is either seasonal or has event risk. Greg smith joining us. Break. Ake a coming up, anger in new delhi after a driver of uber is accused of rape. That with on the move. Of protests broke out in new delhi after a woman said she was raped by a driver from the car er. King firm, ubr i understand police have made an arrest. Absolutely. Unfortunately the incident was playing out over the weekend it was made against the driver in new delhi, and police have said the driver has been arrested and while the investigation is underway, he will be in a court in new delhi today. Theyhave indicated that had a failure to run proper jacks against their drivers proper checks against their drivers. They have said it is not a that providesany transport and every driver this Rape Allegation is starting uber. T [indiscernible] thanks. A bit of a problem with the mic in mumbai. Some other stories that have been making headlines, expect more pollution in india over the coming years. Higher emissions are necessary to support economic growth. Because of u. N. Talks on limiting greenhouse gases. The minister says richer countries should bear more responsibility for global warming. India is the Third Largest carbon that are in the world. Beijing has risk has rejected International Arbitration. It is claiming full sovereignty, saying the United Nations has no say in the claim. Has put china in conflict with taiwan and brunei. One of the biggest anticorruption cases in china is moving ahead. He was expelled from the communist party over the weekend. The next step would be formal charges or a closeddoor trial. Is due to allegations of leaking state secrets. That is it for this edition. Edge. Ned for asia japan,ll have a look at theyre worse than expected gdp. That coming in lower than what most economists predicted. Hello, everybody. The middle of the trading day. That would be victoria in hong kong. You are watching asia edge. Friday. Rading widens to a record. A turnaround taking on a big project. The new head of balisia airlines. Vonne. Im y a surge for quantis. Alan choices critic. Did he deserve to be hacked . It wasnt us. From colonial legacy to a global example. How singapore became one of the worlds greatest economic startups. Keeping my eye on the board. How do i describe this . A bit of a busier monday than usual. The markets are mixed. The volume in turnover still really holding way above a lot of these averages over the past 100 days or so. It has been data heavy. Japan, of course, came out with disappointing g. D. P. This morning. Sidney, over 1 . Dominated by the rally in health care stocks. To a lesser extent, you have the moves in commodity prices