Transcripts For BLOOMBERG On The Move With Rishaad Salamat 20150119

Asiapacific, we dont walls really and the rally on the street of dreams helping things along. I thought it was las vegas but a recap of wall street, the u. S. Markets closed today. Asia shipping shaping up well. We do have inflation data out of australia, a clear drop from november. The reason why you are seeing yields, very low. Japan has factory output an initial gauges aluminum stockpiles reaching a record. You look at the inventory. Up nine or 10 9 or 10 yearbyyear. Three stocks i want to mention, sharp. They lost stock price, taking us back to 2012. Full year, not good, they are expected to miss the forecast. Both of these stocks were raised. Bmv saying about komatsu a good time before their thirdquarter results. Which is the 28th of january. I want to wrap up what is happening in australia, you have a rally of 1. 2 . Macquarie with earnings up for financials as a whole. The week aussie dollar helping things weak aussie helping things. 10 or 20 10 or 20 improvement in profit. Goal having its biggest oneweek gain in months. You have the stocks leading the gains on expectations of a more supported Regulatory Environment in south africa where the government wants lawmakers to review the mining business. David, the rally of this part of the world. It was a rally for the swiss franc, we had a historic rally after the action in the market. What it has done is made things a bit clearer as we look into what is happening now. It does not mean brighter, many big funds are facing oblivion and some have gone out of business and so may need to be bailout. Be bailed out. The estimation is losses will continue to mount. The move by the Swiss National bank is shocking market over the impending hours. It took everyone by surprise and the Collateral Damage is huge as you were talking about. The first thing that we had was at the new zealand fund going out of business. And then fxcm, they may need a lifeline. Shocking developments, fxcm. It is the largest u. S. Retail forex broker they had a lifeline from the Leucadia National corporation. Warns that losses are threatened with capital rules. They have a 1. 4 trillion of trade, a stunning development. As far as everest is concerned this is the hedge fund, a notable hedge fund, and the manager closing it, it had 830 million in assets and lost almost all of it on the Swiss National bank. That is what happened. It was like a Pressure Cooker developing over the years after they capped the currency. Everyone looks at who is next in the fingers pointed towards the nordic countries, particularly denmark. Investors are wondering if banks in scandinavia will be next. That is something we are watching closely. Inside word is that it is unlikely but there is continued fear that other countries will take this action. All in the buildup to the european summit this week taking place, many people saying you have to act ahead of that. What is going on in the currency forecast . The euro, an 11 year low. A significant impact. The dark about what ubs is forecasting you talk about what ubs is forecasting, par ity. They say the franc is the most overvalued currency. Ahead of the ucb meeting, we will be watching ecb meeting we will be watching the volatility. These was finance minister is saying over the the swiss finance minister is saying over the weekend that they have confidence in the Swiss National bank. Will get a perspective on the reaction from the Asian Financial Forum Taking Place in hong kong. We will be joined by the Swedish Central Bank governor. Coming up in 30 minutes from now. Later talking to the finance minister of luxembourg, pierre. Stay with on the move for those interviews. Other stories president obama will use the state of the union who propose taxes on the wealthiest americans. He will increase Capital Gains 28 and will make it harder for the rich to pass assets on two o heirs. He is hoping it will raise 320 billion over 10 years. David group serves highend gamblers but is shutting three of the seven rooms in Macau Limited downturn. Blaming the downturn. They say they will turn attention to the philippines and korea. The Property Market in china new home prices falling in fewer cities. There is a rebound in sales as the government used prop eased property curbs. Investors looking for the next wave of chinese internet stocks may have to wait. We explain why, because 2015 is unlikely to be the year for them. We saw a record audios last year four companies, so it is no surprise we are seeing a smaller pool of mature startups with new ipos. Analysts are saying that we have seen this. The big ecommerce sites, search sites, travel sites are listed. This year we will see six new ipos in new york. Other companies have gone public. Alibaba baidu. Talk about those. They are basically starting the new trend of eagerly investing in these smaller rivals. They are sort of getting in the way of new ipos. Basically these companies are finding new sources of funding. You look at 10 and alibaba,. These seem to be shopping. Alibaba buying ucweb, which was thinking about going public they scrapped the plans. Baidu, ppstream. Analysts say that stops ipos from happening. Making an offer that they cannot refuse. What are they telling you about the companies that may come to market this year . This year analysts are expecting online businesses that do business with Offline Physical stores to be the trend for 2015. The six ipos will be the online to offline segment. In the next two or three years, we will see the wave of ipos and and analysts an analyst is saying they will be mobile companies and wearable devices taking the lead in the next wave but those companies are still small so we need to years for them to mature two years for them to mature. Live from china to india look at the prospects. Futures started trading and this is what it looks like. By. 9 . Enclosed friday it closed friday. 2 . We will be watching reliance industries, the share price is feeling the effect of cheap oil. It is the biggest refiner and reported the first decline in nine quarters. Net sales taking a hit with the biggest decline in five years. Look at the revised shares, down by more than 2 so far this year. Beijing or kazakhstan . The only remaining bidders for the 2022 olympic games. Steve is your with a closer look here with a closer look. When do we find out . The decision is july 31 when they make the pick, ensuring that the olympics will be held in asia. 2020 summer games in tokyo and now 2022 will be either beijing or kazakhstan in central asia. Those two cities are on the clock. Itfour cities out because of cost pulled out because of cost. Remember soochi. Stockholm said,nop nope, after an initial bid. Why did they pull out . The cost. Is beijing issue in . A shoe in . There are drawbacks. What would be the small in the wintertime and get one would be the smog in the wintertime in beijing. Also we have a lack of snow. We traveled up to the venues and saw lots of pastureland brown grass instead of snow. But snowmaking machines could perhaps overcome that but nevertheless it will be a challenge for the beijing organizers. They can spend the money, but can they pull off a Winter Sports extravaganza like the olympics expects. Coming up later, we have an interview what we talked about this with the father of snowboarding, jake burton carpenter, founder and chairman of burton snowboards, the biggest in the world. Thanks for that. How one iconic hotel and i cannot hotel an uic on the move returns in a couple minutes. A look at the big events we are following through the course of this week, tuesday finding out if 2014 was a hit or miss for china, we get the gdp numbers for the full year. The government predicting it would hit 7. 5 , we find out if they managed to do that. Thursday, reporting earnings. A week after the pay dispute ended with courts ordering bonuses. That will be increasing hyundais labor costs. Looking also to what is coming up, the impeachment decision on friday, the former thai Prime Minister. They have been considering the subsidies game designed to help the role or what it poor book critics say it was corrupt but critics say it was corrupt. Singapore requires buildings to be repainted every five years and the contract has driven a local to the top of the ritualist rich list. Sterling, who are we talking about . We are talking about how much he is worth. Hello. We are talking about go the founder of a company who was worth 8. 2 billion. Where did that come from . It comes from his stake in nepal paints, a joint venture with nippon paint from japan. It operates in 15 countries in asia and gohs stake is worth 15 billion. The stake is worth another 4 billion. Tell me who also the singapore ritualist rich list . The largest shareholder of the singapore united bank, worth 6. 9 billion. The wind behind wei is a window worth 4. 9 billion in her sons philip and robert worth 4. 6 billion and 4. 5 billion respectively. Those are the top members. Tell me something, what do we know about goh because he seems to be very much below the radar. You are exactly right. We do not know much about goh, he maintains a low profile. What we know is that goh has not been actively involved in his company for decades. His son has been leading the Company Since the 80s. We know that goh is a big fan of luxury boats, so he has this yacht will be white rabbit called the white rabbit echo worth 30 million. Coming up after the short break, we hear from the father of snowboarding. These are boards made around 1980. There is a photo of me cutting an outline. That is you . That is me back in the day, in my barn. 1977, 1978. These boards were cut out of laminated wood and then we should love the fan on and the bindings and inserts we put the fin on and the bindings of the inserts, a lot of work on a lot of fun, rewarding to look back on. The order boards folder boards, older boards, one sold for 31,000. Its cool, kids are into it and there are collectors out there. The race to the 2022 Winter Olympics down to two bidders, beijing and kazakhstan. The chairman of burton snowboards says china is host to be a Winter Sports posed to be a Winter Sports powerhouse. In some ways it is better here because we are worldclass athletes already as we get the sports going. Writers are competing in the olympics. Riders are competing in the olympics. There are incredible role models in japan does not have that and it does not have as many people either. How important what a Winter Olympics in beijing as opposed to those expand . Kazakhstan . It would be great, a huge opportunity. For your business, obviously a beijing this would be more beneficial than a kazakhstan olympics. Sure. But i have no control over it. Snow we winters are better than warm winters. This is a bone dry basin there is very little snow and moisture. Is that a concern . It would be great if it was colorado or something along those lines but what is happening with technology and snowmaking is incredible. I live in vermont and we had rain and then it up freezing cold beer on top of it in terms of technology. Does the uncertainty in europe that are showing weakness make it more economically . Economically. Weather we do not know. Whether Global Warming is having an effect. But economically, doesnt make developing a market like china more important . Yes. But also the u. S. Market which is very strong now and terrific market for us, but has come back a lot. Are increasingly looking at the u. S. Single digits, made or high Single Digits for next year. To me back to the 70s, you are the hewlettpackard of snowboarding, did you see this in the 70s . No clue. I had a vision that snowboarding could be a sport but i did not see a resort. It was an alternative, with back tells. Skiing was expensive, it was 20 for a lift ticket. It was an alternative and the kids were working for me and the mexican you know we were driving up to resorts and snowboarding down trails. Writing with a sixpack at night. Riding with a sixpack at night. It was so fun to watch the sport. How often do people come knocking on your door to buy you . A lot. I stopped taking those calls. Why . One reason being that i am a lazy god by nature, and if i did not have this job i would be on my couch. Counting money . Watching sports. That kind of rules out an ideal. An ideal. That it ipo. I have a hard time being told what to do. I have not worked for anybody else. These was scrapping the swiss scrapping of the frank cap. This is on the move. Chinese stocks heading to a tumble in shanghai after last years dramatic rally, but it is a rally for australias biggest Investment Bank. The weakness of the aussie dollar helping macquarrie. Retail therapy. Asias richest man in europe. We are expecting big tumbles in shanghai. David is looking at this. This is a convoluted story. We barely kicked off. Its down to a crap down crackdown on financials. Futures are down as much as 7. 5 percent. At the open, that is about a 180 point drop for the shanghai composite. Onto this crackdown. They are a sickly punishing some of these brokerages for suspending the ability to add account on margin finance. They are trying to crack down on speculation in the markets. If you look at what is moving across Chinese Markets, it is a broadbased selloff across a lot of these brokerages. I will be back to flesh these out further and see what else is happening across the Chinese Markets, continuing to get pummeled at this point. We are down 6 . Home prices may be heading for their first annualized increase in 12 months. This could be the bottom of the Property Market. Prices rising in one city for the first time in four months after novembers rate cut. We can find out what is going on. Lets go to beijing. These numbers, what are they telling us . We are looking at the monthtomonth comparisons, because the Central Bank Cuts rates in november for the First Time Since 2012, so the December Numbers reflect that quite a bit. New home prices fell in 65 of 70 cities. New home prices rose for the first time in four months. The only city to register Property Price gains in december. Other bestperforming cities mostly industry driven cities were worker density is high. Overall, we are seeing price decline sales lowing and month on month comparisons even in the worst performing cities. One exception is the worst performing city. Lastly, Sales Volumes are rebounding. We will get the official numbers tomorrow, but those Interest Rate cuts combined with a pullback im housing restrictions in many cities boosting demand again pullback on housing restrictions and many cities boosting demand again. There are a lot of risks. A lot of this demand due to developers taking advantage of the sentiment of the market to get rid of excess inventory they have been holding onto for a while, so not all sunshine yet. Tell me about the main risks at the moment. This has been described as the biggest headwind for the chinese economy right now. The World Bank Estimates the property sector accounts for about 16 of Economic Growth so it is a big chunk of the economy. The big risk is a lot of the developers were built quickly and borrow money when the property sector was booming, and when the property sector stalled they could not sell enough units to fund their debts. We had been talking about the 23 Million Dollar bond. The troubles started when the authorities restricted sales due to irregularities. Since then they have brought sales that other developers including the overseas china land and investment. While the shenzhen government said it is part of the process it does indicate unresolved issues in the sector. Who knows . We dont know the Housing Price rise is something to cheer about yet. We can only hope other such cases dont start popping up in chinese cities as well. David has a look at why the shanghai composite was moving to the downside. I cannot imagine an Industry Group on the way up with such a move. Lets look at the latest Housing Prices and how they are playing out. Lets have a look. Lets try to flesh it out. It seems to be the case it is sell now, ask questions later. Were down about 5. 1 or 5. 2 . Brokerages, lets get to that a little later. Take a look at real estate. We are down 4. 6 . It is hard to predict what is the reaction from Property Prices at this point. If you take a look at Financial Services, the brokers let me show you what is happening with some of these big ones listed in hong kong. Eight shares, securities were down eight shares h shar es, they were down 10 . A are suspending from adding finance. They are trying to crack down on regulation in the market. They are now raising the asset requirements for clients to open these accounts. From 300,000 renminbi, the requirement is half a million, if you want to open such an account, down 14 . Lets take a look at the line chart. At the open we are down over 5 . Its about 180 points. Not really. Its about 160, maybe 150. You translate that in terms of market cap. Thats about 255 billion. Just in the first few minutes of trade. This comes ahead of gdp, what comes out tomorrow. Will it hit 7. 5 . A broad look at what is happening across regional markets right now, Chinese Markets doing most of the damage. Philippines reopening after the holiday and the pope is leaving town leaving town. Back to you. Thanks for that. The pope isnt due to leave the philippines for the next half or thereabouts. The tablet and stories making corporate headlines so far today. Lets take a look at stories making corporate headlines so far today. Macquarrie surging by the most in two years in sydney. The Investment Bank has raised its profit outlook on the lows it lower aussie dollar. Net income is climbing 10 to 20 . At the higher end of the range it would be macquarries highest earnings since six years ago. We were expecting a sharp moffett to double last year, but the nikkei newspaper says it will actually announce a loss of profit to double last year, but in nikkei newspaper says it actually expects a loss. Sharp will announce its latest results on february 3. Shares are trading at the lowest in three years. Sources say there is exploration of hutchison is exploring a buyout. They could pay more than 13 billion 402 for o2. Those are your headlines this hour. And winding up his tour of the philippines. The pope is set to leave the country after many critics have described a very successful tour of not just the philippines but also sri lanka as well. A record crowd as he celebrated mass on sunday. About 6 billion believers braving the rain. He upholds the churches conservative doctrine churchs conservative doctrine and respect for all religions. Davos is in the International News headlines this week. It is a short week on wall street with the market closed on monday in observance of the Martin Luther king holiday, in honor of the slain civil rights leader. On tuesday the focus will shift to washington, where president barack obama is scheduled to deliver his sixth state of the Union Address, with a focus expected to be on the improving u. S. Economy, cyber threats, and the rewriting of immigration laws. On wednesday the white house sent a delegation to have anna to begin talks of normalizing havana to begin talks on normalizing relations. And it reflects the erratic nature of the housing recovery. Global business and political leaders gathered in dominoes switzerland, and the European Central bank held its first policy meeting and its latest on quantitative easing. After the break, the view from europe on switzerland hoss scrapping switzerlands scrapping of the frank cap. This is on the move. Pope francis with the president , bidding farewell after what many have described as a rather successful tour of asia. After his visit to sri lanka, a country with a minority of catholics, about 7 of the population, trying to bring reconciliation between the people themselves of sri lanka that message to the catholics between the majority and minority to set aside their differences. Asias only large catholic country as well. Pope francis preparing to leave after many described the tour as a successful one. It is the Asian Financial Forum Taking Place right here. Lets join john dawson, who is standing by with the Swedish Central Bank governor. We have got the Central Bank Governors since 2006. This is a mr. Ordinary time. I must start with the swiss franc. I know youre going to say this is an extraordinary time. It is a big surprise. What was your reaction . I am pretty sure this is what they feel is right for them. I feel i cannot have judgment. Something must have shocked them. They made a phone call they are going to do a significant amount of quantitative easing. What do you expect . Its hard for me to say. We are watching on the sidelines like everything else. We will see what comes. Is there a strong word but finally this will be the month that finally this will be the month . We will wait and see. With regard to denmark this sisterly conjecture. Is purely conjecture. Would that make sense . We will see what happens. One has to be mindful of the fact that if you compare denmark to us, we have had a Floating Exchange rate since 1992 so their situation is completely different to ours. Would it make sense . It is hard to tell. There are many moving parts, so it is hard to tell. There are many moving parts. The greek exit perhaps from the eurozone. Also the geopolitical situation. [indiscernible] they are all very different places in the world. There would be divergence. In terms of diversions the other one that has surprised a lot of people is the oil price. For us that is a pretty good thing. Why is it a good thing . Its like lowering taxes. Its a boost to growth. But, its can you quantify . I really wouldnt want to do that at this juncture. Its certainly possible. Obviously we have a couple of technical issues. We will sort out those gremlins. Lets check on some stories as we make headlines around the world. The pope celebrated mass on his last full day in the philippines. This is what we have. Authorities believe 6 million believers gathered. They are braving the rain to see the pontiff. It is the asia pacific largest catholic country. Francis reaching compassion and justice along with respect for all religions. Preaching compassion and justice along with respect for all religions. We are talking about one of the Charlie Hebdo gunmanen being buried in an anonymous grave. The funeral was carried out discreetly. The local mosque refused to conduct the ceremony for fear of sparking demonstrations. It has one of the oldest muslim communities in france. Attempts to recover the fuselage of the crashed airasia plane will resume after being halted because of bad weather. Rough seas prevented divers from reaching it yesterday. Most of the victims are thought to be in this section. The remains of 53 people have been recovered so far, and 45 have been identified. The United States and north korea are holding unofficial talks in singapore. The meetings are led by the washington and north korean envoy. Relations are more strained than usual following the cyber attack on sony pictures. The u. S. Blaming north korea but pyongyang denies involvement. On the move this is this is on the move. More on the way. A look at what is happening through the trading day. Getting a nice rally to take place but petering out to some steep declines in shanghai after a crackdown on some of these brokerages. They are responsible for a little bit of a drawback. We have nick a nikkei as well. A bit of a reprieve when it comes to the oil price, a bit of a reprieve when it comes to basic resources as well. On top of this we did have a strong session friday on wall street, and everyone knows we tend to follow. We are getting a tailwind as well. Singapore we have been looking at singapores richest man as well. Four 10 of 1 . Last time i checked, we were on the way down. That remains the case when we go below the 24,000 level. On the back of the weakness taking place in shanghai. David is having a look at what we have got, because i think we have the biggest fall in five years at the open. That was the case at the open. Were just down 4 . I think that does give you an indication of how sharp the losses were at the open. Obviously, still the financials let me break it down. Shanghai composite, Financial Services were down 10 . We were down. 14 out of 14 were falling. Name your brokerage. You are seeing a similar picture. Not so much as far as percentage loss but the shares in hong kong. Were down 4 . That takes us back to the biggest drop since december. We have recovered a little bit. We open at 3180. The hang seng index is down half of 1 . We are getting a tailwind coming from the u. S. Session. Back to you. The swiss ski resort of demos is in the news. The heads of business and politics meet for the World Economic forum. It is a good time for the highend hotels. It wont be enough to sustain their business probably not. Like a bond villains layer built into a mountain it is known as the golden egg. The likes of john kerry, richard branson, and bono stayed here last year. Every january it is surrounded by barbed wire, guarded by swiss soldiers, but it may not be enough to protect it from bankruptcy. Where did it all go wrong . The 216 room hotel usually struggles to fill its bed. Hard to believe it could fail. One of just a few fivestar hotels at the resort, Credit Suisse pump 152 Million Dollars into the site. The hotel has lost 6 in value. They announced bankruptcy. Proceedings were ongoing. While it is fully booked, the problems may prevent others from setting up in demos. The Australian Open gets underway with last years champion. Lee says it was a long process. She had to pose for four hours. Li na says it was a long process. Just a look at something. Clint eastwood cost american sniper Clint Eastwoods american flavor has topped. It managed to collect more than 90 million in ticket sales. That is an amount not usually seen until the summer months. It does beat rabias records, said by avatar in 2010. Previous records set by avatar in 2010. Looking ahead, chinas Anticorruption Campaign continues to hit the gambling business in macau. We are having a look at the latest from there next. I am coming to you live from hong kong. You are watching on the move. Stocks in shanghai tumbling. Muggeridge is falling brokerages falling. Regulators are taking steps to cut trading with our own money. It leads to 200 billion in market value being a race. The selloff taking place in china trying to make sense of what is going on. We have recovered a little bit. I think we have recovered. It is getting better, but lets see what this rally will last. You look at the group of stocks leading these declines, its the brokerages. The index topped 60 last year. That was led by a lot of these brokerage stocks. Volumes in november and december we have not seen that sort of level in five or six years. It got to a point where any sort of bad news, any hint of bad news would spark a sellout. That is what were are seeing across the markets. You had a lot of these brokerages downgraded because the sox were brought up too much. H shares is what we see. The stocks were bought up too much. They basically extended three brokerages from. They are starting to crack down. They already warned of speculation in the market. It is getting better, but we are still down for the shanghai composite. Were going to get you back to the hong kong exhibition center, because where you have the asian for him, looking at forum looking at the minister of finance. He is joining us from japan. Thank you for joining us. The reaction to a big shock a big uturn. What is the feeling within european states . I think you have to have someone defending what the swiss have done. They are facing a situation where there is a lot of discussion about quantitative easing happening in europe, and that has been very difficult for them to defend. They have done what the british do. Join the club. If you cannot defend it, why spend lots of research to do it . Its a surprising move because it comes as one move, but at least it saves them a lot of reserves. It is an enormous uturn. I think the markets have been taken by surprise. It happens once in a while in life. On thursday based on the swiss action it was seen as heralding a significant amount of quantitative easing. Some are saying 18 months. Some are saying more. The quantitative easing issue has been around for quite some time. It was clear the European Central bank would not reveal its cards early in the game. Number two, its not testified in which formed this will happen, what the framework will be, and you have to take into account we have 19 countries in the euro zone. It all depends what you want to achieve. I think the argument that comes in the whole matter in favor of it is the risk of deflation. I think this is the Additional Market that might move the ecb to ward quantitative easing. Up until now the European Central bank has been very communicative and mario draghi has been able to stave off all the problems that exist prior to his comings. We have had some common the eurozone. Stability has been insured without quantitative easing. Some calm in the eurozone. How big is the risk . We have seen things in the eurozone negative and everyone is looking at japan, that has had low Interest Rate and inflation, and we have seen china has moved forward to policy similar to the United States, but its one country. Its easier to handle bad when you have to deal with 19 countries at the same time. You were saying mario draghi is doing a good job at the moment . He has done an excellent job from day one. Luxembourg, we have had three chinese banks chose. It is a big chinese focus. You have just been in japan. Are you also tracking Japanese Companies to luxembourg . Japan is more of a mature market and a lot more is happening in china so we are glad the sixthlargest bank of china has decided to set foot in luxembourg and those banks have chosen our country. [indiscernible] they want to capitalize on that, also due to the fact we are the largest Investment Funds in europe, in fact the largest in the world. This is precious for the chinese , and we are pleased they have chosen us. The negative is these tax investigations how damaging has it been . Basically companies were only paying 1 of their profit. How damaging has the revelation been . For the time being, companies are very stable in observing. We have been explaining the ruling is not the specialty of only luxembourg. 26 out of 28 countries in europe do it. The United States is doing it. Most countries are doing it. It is the combination of International Rules and International Treaties were some countries pay little or no taxes. It is not specifically our country. We are cooperating with institutions, and it comes at a time where we have done a lot of effort. We have abolished rank secrecy showing luxembourg wants to move to its transparency. Rank secrecy showing luxembourg wants to move to bank secrecy showing luxembourg wants to move to transparency. We are moving ahead. No damage done. They end with luxembourg, youre actually putting in more Companies Like chinese banks . It is too early to judge. It would not be prudent to say nothing at all is happening or i havent the in any major moves. Seen any major moves. The Company Wants predictability. That is what we are saying that we are in favor of the commission to do an exchange of information for rulings, so we will have a level Playing Field. I am pretty confident luxembourg will be able to show it is a problem and inflation is no harm. Are you traveling around the region . What is that question . How has the question changed . There is a lot of awareness coming up everywhere that the tax system has to change worldwide. It is a g20 issue. You know they xray all of these tax practices worldwide. China is participating in that exercise. I think we will have a new way of taxing those companies in the coming years because the economy has become digital. The way this was handled 50 years ago is probably not appropriate. We want to change that to make it fair but to make sure it is a level Playing Field for everybody. A quick question, who is going to win the Australian Open . Roger federer. Thank you, the head of the aff. Back to you, rishaad. President obama is set to use the state of the Union Address to propose taxes on the wealthiest americans. It would make it harder for the rich to pass assets to their heirs. Lets hope it would raise 300 woody billion dollars over 10 years. The president s address will 320 billion over 10 years. Were going to look at mcquarrie bank. It is australias largest Investment Bank. It raised its profit outlook on the aussie dollar and improved trading conditions. Net income can be seen climbing 10 to 20 . At the higher end it would mean the highest earnings since record profits six years ago. Asias richest man is said to be going shopping again and europe. He is exploring a buyout of telefonicas mobilephone business, os. Hutchison could pay more than 13 billion, having bought the irish business last year. It is up by six 10 of 1 . The other one touted is bp, which formerly owned o2. Up next we hear from another big name guest. Were going to look at how the philippines largest is faring when we return. We go to our Central Studios in hong kong. We are going to head back to the Asian Financial forum with a look at what is going on in the philippines. John dawson is standing by with our next guest. Joining me now is the head of the company. Lets start with looking at the growth of the economy. What is the goal in 2015 with regards to the philippines looking at the growth target of 8. 5 . What is the plan . Will it be a change of direction . Weirs will thinking of growing we are still thinking of growing. I know we have been growing the past two years with double digits. We help most of our corporations will still be growing. I think our strategy is to grow. Which area are we going to see the strongest growth . Which the Biggest Challenges . I guess all of them have challenges. The philippines has a sweet spot and has been growing at 6 or 7 . We hope to be able to grow higher than 6 or 7 in most of our businesses. They are all ranked individually. What could be improved in the philippines to help the Philippine Business . What do you imagine the government doing . The government can spend more in infrastructure and started earlier so the industry start it earlier so the industry will benefit from it. I, j is how much is required . They have their budget. If they spend what they have planned, i think they have good planning. Its a matter of implementation and also timing so if they spent most of it our economy can continue to grow at a fast pace. With regards to the philippines, how do you see it progressing . Are you encouraged . I think the philippines has not worked, but to be part of the region. We were very happy with ourselves. We do a lot of things on our own , but right now we have to be part of it and benefit from it in terms of the trade and in terms of labor mobility, which i hope will happen. We have growing in china. We are planning nine at this point. With regards to china you are clearly building. Youre not really seeing evidence of a significant slowdown. We are growing in china. We are not that fast, but our companies have done quite well. China is a big market. We see it as a big market where we can go into the different provinces to grow the graded commercial development. Some say china has a property recession. Is that the case . We saw it and heard about it. Were are a bit slow in china. We are looking to the supply and demand balance. We were able to work along supply and demand, so we are ok. You are walls, but maybe you will be willing to build homes. We have homes, but it is more collaborating with other people. We will be building offices. It is a center where you attract the other populations into the area. So far we are doing quite well. Very well i would say. Not bad. Would you go to perhaps building more homes you could spread it out and build off it . Were still building the homes around the center. The shopping is the center. Whatever we build is around the center. This is the same for him forum, and the same formula we do in china. I must ask you what is the main concern. We have got oil prices very low. As jan asean slowing down what should be addressed internationally that would help his this business . I guess the harmonization of the different standards so there would be an easier way for investments to flow around the Different Countries and for mobility. I guess that would be something that can contribute to integration. It is more of an awareness so maybe by 2020 it would be a faster track. I got to go. The aff, Asian Financial forearm day one. How an iconic hotel is the key to the wealth of singapores richest man. We will explain when we return in a couple minutes. Singapore buildings are required to be repainted every five years. The iconic hotel has driven a paint company to the top of the richest list. Nice to see you again. It is good to see you, rich. Tommy what is he worth . Who is he . He is worth 8. 2 billion. Goh is a paint mogul. He started running a joint venture called napalm paint south asia. It operates in 16 countries. The stake is worth 14 billion. His stake is 39 of it worth another 4 billion. Where is goh in the list of singapores richest . Who is behind him . He is a discrete below the radar type of guy. He is. He is ahead of wi. Behind that are the family members of the property tycoon. Worth 4. 9 billion, and her sons are worth 4. 6 billion and 4. 5 billion respectively. Thanks for that. Macau is in the headlines. Prostitution related arrests are down. They are closing casino rooms. Tim, what is going on . It would appear we are going from anticorruption to antimorality and beyond. Everything. When it rains, it pours. Whatever cliche you want to put in here. Its intriguing to look at this thing continues to extend. It seems to worsen. As we look at the fourth quarter, we have seen bip business continued to decline year on year vp business continued to decline year on year. A lot of this is good to be the reflection of the contraction we have already seen in the business. Inc. About the vip think about the vip segment. We are back to where it was before galaxy opened in 2011. Put that into context. That is the level of the vip business where we are currently at. What about where we are with the vip side of things . Is it solely vip under pressure . Its not. If you look at vip growth, it has slowed a lot. The massmarket business plunged in the fourth quarter. It was down 600 million u. S. Dollars sequentially. That is 20 . It was down 17 year on year. This is the only time the massmarket business has ever contracted year on year period, and a lot of that is likely the premium mass segment. A lot of it has shifted to premium mass, and that is impacted by the antiextravagant concept. Part of it is a little bit of the october smoking ban that shifted some of the premium guys back into vip. Thanks a lot. Still to come, we are looking ahead to australias first Rate Decision of the year expected early next year. Were going to hear from a study as assistant treasurer. Australias assistant treasurer. Tumble for stockton shanghai. Brokerages falling by the daily limit. This as there are steps to stop trading with money. At one point, 200 billion in market value in what way. David ingles has been checking in on all of this. It has been a topsyturvy session. We open about 181 slower. Recovered a little bit. We are more or less back to those levels. The damage right now, just on the shanghai composite, over 200 billion u. S. Dollars. Hang seng following suit. Youre looking at financials and properties. We are talking brokerages. Perhaps in reaction to the latest Housing Prices. The philippines report reopening. The pope makes his way back to rome. Japan up. 7 . Broadly, we are seeing gains across the region. Production numbers are being released at noon. But inventory levels for aluminum, reaching record levels. There could be a lot of stockpiling. It could put some pressure there on the nikki nikkei. Asx up. 2 . Interesting move. You have the banks and a lot of moves in the mining sector. It started with the banks bumping up their Profit Guidance for the full year. We are seeing we could hit 10 or 20 improvement in profit. A better trading environment and you are looking at lower aussie dollar. If you have two thirds or above with revenue, your income coming from outside, it inflates those profits. Five out of the six banks in australia are right. It could be mccourty your here. The mining stocks seemingly leaning leading gains. You have gold and iron ore. Gold had a good week last week. Best week in 18 months for gold prices. Are we at 12 . There we go. Mining stocks bhb leading some of the gains. We could be looking at more support in south africa after the president basically asks lawmakers to review this mining bill. It is more a case of gainers than losers. 12 out of the 18 under the sector rising today. But lets go back to the main story china. Could be the worst day and 5. 5 years if things and the way they stand. We have been looking at the asia Financial Forum all morning, and john dawson has been our man on the spot. He is standing by with our next guest. We have the australian assistant treasurer. Thank you for joining us. Every guest i have had, i have to ask the big news. You are not part of the euro in australia. Bit of an unsettled market. Maybe 600 billion or so in quantitive easing. What is the reaction from australia . It caught everyone by surprise. Obviously, this can do. What it would like to do their concern about quantitative easing coming out of europe. It has been a surprise. Im off to dallas from here, and no doubt this will be the topic to shore du jour. The Oil Price Falling and falling lower. Clearly, iron ore is your biggest export. How worrying is this . Clearly, we benefit a lot from demand for resources. Nearly 60 of our export our resources. Iron ore is a large percentage of those. Imports will be the largest lng producer by 2018. Cole has been down 30 . Iron ore and oil, about 15 . This is taken about 15 billion off our projected revenues with the next few years. That does hurt our balance sheet. At the same time, petrol prices are at their low as level in four years. And that is a help to the australians and average standard of living. But we are concerned about them. As you know, it will hurt investment in the minds. But a lot of investment has taken place. We are moving from investment to production. We are very confident that the terms of trade will recover overtime. But it could be a while. Before we see the high levels of resource prices we saw not that long ago. You have the march for gdp may 1 budget. All these things to look forward to. What can we expect . Australia, we will continue Fiscal Consolidation we have underway throughout reforms. Reducing Government Spending by 150 billion over the next decade. That is significant. Well our next projected gdp is not as high, we are very vulnerable to change in terms of trade as well as a Global Financial crisis. So we must continue to pay down that debt. At the same time, we are undertaking microeconomic reform and deregulation. We have been in red tape over the last 12 months. We are continuing with improving portability in our labor market. We have a massive infrastructure about 125 billion that we will stimulate in new infrastructure over the years. All Government Programs and exceptions to the private sector. We are confident the australian economy will continue to grow for its 24th consecutive year. How has industry created the sales increase the sales . We have no plans to widen the base. We will look at the overall tax mix in that context. We have a very heavy dependence on income tax and corporate tax. The highest dependence is proportional to overall tax receipts. 10 companies are responsible for one third of our company tax receipt. We have to look at the tax base. You were a tennis professional. You were beaten by pat roster. Playing on the main court with a 600,000 audience. My best tennis days are behind me. As you know, my tennis ambitions were far greater than my talent. But i had a great year try my luck on the circuit and playing internationally. I would love to go into some real champions play. Going to the cold, as opposed to the heat is australian. We are outselling the positive message about the strength of the australian economy, inviting further investment into australia. And certainly, this forum is an important opportunity. Josh, thank you. Joining us at the asia Financial Forum. Back to you. Lets have a look now at some of the big events through the course of this week. Tuesday, finding out if it was a hit or miss for china. 2014, how did it go . We have gdp numbers for the year. Government printing they would hit 7. 5 . He will find out on tuesday. Thursday sees honda hyundai releasing earnings. Some industry observers say it will increase their labor costs. It is all about this woman as well, getting an impeachment decision on the former thai Prime Minister at the end of the week. Legislature has been considering her rice subsidy scheme she says was designed to help the rural poor but the government says it lost the country billions of dollars. Washington, havana and davos. Some of the places in the global spotlight this week. Lets find out why. It is a holiday short week. The market is closed on monday in observance of the Martin Luther king holiday in honor of the slain civil rights leader. On tuesday, the big focus will turn to washington, where president obama is set to deliver his six state of the Union Address with the focus excited to be on the improving u. S. Economy, cyber threats, and the rewriting of immigration laws. On wednesday, the white house sends a delegation to havana to begin talks of normalizing u. S. Relations with cuba. Also on wednesday, we get data on home construction, which economists say probably rose in december after falling a month earlier, which reflects the erratic nature of housing recovery. They will also be focused on europe, as Global Business and political leaders gather in switzerland. The European Central bank holds its first policy meeting of the year and announces its latest additions on quantitative easing. In new york, su keenan, bloomberg. Still on the way, could china home prices beginning ahead of consumer data . Chinas home prices may be heading for a first annualized increase, signaling what could be the bottom of the market. Property prices up in one city for the first time in four months. Behind that, we had a november rate cut. Christina joins us from beijing with a look at what the numbers are saying. Just to stress we are looking at the month on month comparisons here. Due to that rate cut in november, which was the first time the Central Bank Cut rates since 2012. The statistics reflect. That quite a bit new home prices fell in 65 out of 70 cities compared to prices falling in 67 cities in november. This according to the bureau of statistics. Prices rome for the first time in four months the only city to post property gains in december. Others include jun jao, mostly cities where worker densities are high. Dr seeing indications work declines are slowing, even in the worst performing cities. We are hearing that sales will humans are rebounding. A look at official numbers tomorrow. Those Interest Rate cuts, combined with a pullback on housing restrictions in many cities, are boosting demand. But there is still oversupply in the market. There is still a lot of potential risk in the sector. Some of this boost in demand is due to developers taking advantage of Investor Sentiment in the market, to get rid of excess inventory they have been holding onto or a long time. So we are not out just yet though the data is giving some room for optimism. The question has to be what are the main risks to the sector right now . Well, we have seen a lot of developers build quickly on borrowed money when the property sector was booming. When the sector stalled, they could not sell enough units to fund the building or fund the debts. We were talking about chinese developer kaisa. It is from shenzhen, and its trouble started when their property sales were restricted due to irregularities. Since then, shenzhen has bought sales from other developers, including chinas overseas land in investment. So until we know how kaisas story plays out, it is hard to know if there is room for optimism there you. If sale volumes continue to rise, if developer cases do not emerge in other cities, youre looking at a sustained and balanced recovery in the sector. That is a lot of ifss. Lets have a look at internet stocks. It could well have to wait. Lets bring in shery ahn. It does not look like 2013 is going to be the one for them. Is surprising we have a smaller pool of mature startups that could ipo because of record last year. 14 chinese copies raising 29 million. Alibaba, 25 billion. These companies that already have ipos, and the biggest names in the ecommerce are already out there. They go, we do not want any threat. And they end up owning it. That is basically what is happening in the market with these big Companies Like alibaba trying to invest in smaller rivals. They are sort of getting in the way for new ipos. We are seeing uc web scrapped plans when alibaba swoop in and bought the company last year. We had ppstream acquired in 2013. We had this phrase that when about the stage, you go back to your clicks with bricks. I think that is what youre telling me is the path this year. The online to offline segment, basically. Analysts say it is in the sector we are going to see new vi ipos. In the next two or three years, it will be of the a bit different. Makers of wearable devices are going to be coming to the market. But they are still very small and it will take at least two to three years for them to be ready to go to market. Thank you, very much indeed. They want the worlds attention once again. Beijings bid for the world olympics. We will meet the father of snowboarding, who says china is in a prime position. Youre watching on the move. I am rishaad salamat. We are looking at chinas race to host felix, but some of the other stories we are tracking for you on bloomberg. It is monday, january 19. These are the top stories. A tumble underway for stocks in shanghai. Of its test performers last year, brokerages are leading the way down. And was a they are facing pressure from the government amid trading with borrowed funds. Chinas drive against corruption and access has forced one macau layer to look elsewhere. It is shutting three of its seven casino groups in macau blaming the industry downturn. They say they will turn their attention to the philippines. Alliance industries feeling the effects of cheap oil. The largest refiners reported a profit decline, many falling 7 . Their biggest decline in more than five years. That is a check of todays top stories. The race to host the 2022 olympics are down to two bid ders. Decisions will be made in the end of july, with many expecting the chinese to prevail. The founder of burton snowboards says china is poised to become a powerhouse. In some ways, it is better here because we have worldclass athletes already as we get the sports going. Girls are making the finals in the half pipe. There are some incredible role mortars models for the sport. Japan does not have that or as many people. How important would a Winter Olympics in beijing the as opposed to amari grabbing them . It would be a huge opportunity. Especially for people in this town. For your business, beijing olympics would be more beneficial than a kaiser asked and olympics kazakhstan obex. And this is a bone dry basin in beijing. Very little snow. Is that a concern . It would be great if it was colorado or something along those lines. That what is happening in technology with grooming, it is incredible. I was in vermont, and we had rain and freezing cold. But they are on top of it in terms of the technology and making snow and grooming it. Does the uncertainty in europe and places like that that are showing some weakness make it more economically . And whether weather. But does that make developing markets like china more important . Yes, it does. Like the u. S. Market, which is really strong a terrific market force, that has come back a lot. What kind of revenue increase are you looking at in the u. S. . Single digits but high Single Digits for next year. Take me back to the 1970s. You are kind of the hewlettpackard of snowboarding. Building these things in your garage. Did you see this happening . No clue. I had a vision that snowboarding could be in sport, but i did not see a resort. A snowboard is called a back hill. Skiing was the center of the town. It was 20 for a lift ticket. It was an alternative. Next thing you know, your driving partway up resorts and snowboarding down trails. All that. The next thing you know, we are getting onto resorts. That was so much fun. How do often do people come on your door, knocking to buy you . I stopped taking those calls a long time ago. Why . One reason being i think i am a pretty lazy guide by nature. Im afraid i did not have this job, i would be sitting on a couch. Counting your money . Watching sports or the. All day. The kind of rules out an ipo. I also have a hard time being told what to do. I have not worked for anybody else ever. More on that and all the other top stories. Just get the bloomberg app. For android apple, and windows. You will not be disappointed. Can sports news, Australian Open getting underway today. We have a salute to last year womens champion. It is on display outside the arena in melbourne. There she is. Saying it was a long process. She had to pose for four hours. But apparently it is a good likeness. It includes her usual strapping on the right knee. Li is not defending her title because of recurring injuries. American sniper is on top of the box office. The war drama, nominated for six offers oscars, what did 90 million in ticket sales. That is the demand not seen until the summer months. It beats the previous record held by avatar. That is it for on the move. Coming up next is asia edge. Our guest today is the chief strategist at or in group. That is coming your way next. This is a view of singapore. Going to be looking at that states richest man in this edition of asia edge. Taking a bit out of last years rally, stocks plunging in singapore. Brokerages leading that drop off , with a crackdown of trading with borrowed money. It means nearly a quarter of a trillion dollars in market value has been wiped out in one stage. I am shery ahn. Also coming up this hour is the changes in the works in macau. How chinas drive against corruption has altered highend games. Plus, the raffles is his canvas. The singapore billionaire who hated his way to the top. And we need the father of snowboarding. All that and more in asia edge. Top stories, mainland shares in china plunging after three of the nations biggest brokerages were stopped from adding margin trading accounts. Stephen engles on top of this. Weve seen with market checks that these brokerages are taking taking. Down 3 . The biggest. Keep in mind citic and hai