Transcripts For BLOOMBERG On The Move With Rishaad Salamat 20150126

90 of the votes have been counted. An overall majority. They are saying austerity is over with and that may have deepseated implications beyond greeces borders. Coming out of athens, our reporter. Ahead of this syriza party will meet with the independent party ipl. It will give the combined total of 162 votes. They have 149 as mentioned. That would be the joint coalition. That has led to 100 count. As you can see, it is extremely business. People have the power. They are chanting this. Of course also the president promised Alexis Tsipras is 40, younger than us. They will negotiate the 250 billion euro bailout. [indiscernible] they do not want to take any pain. That creates cracks. It is unpopular in greece and is seeking as a protest. Europe is popular. Correct. Grace greece wants to stay in the european union. If they do not take some pain the question is to borrow the money and face the vote. And clearly very important election this year in spain, italy, and portugal. That you as well. In lots of stake here. A lot at stake here. The far right party conferred. A lot of concern there. Concerns and it is closely watched. Therefore, what is going to happen Going Forward . People have the power. A comment from who is speaking in davos with the commissioners. He is very confident that degrees will stay in the eu but if they default all bets are off. We have the tools to address any situation and i feel quite conscious that in place of greece in the eurozone. There you go. That is the bigger picture. That is weeks and months to see how it is played out. How is the syriza party going to negotiate and what is the fallout . They have to be pragmatic. It is the middle of the night in europe, what we have in terms of reaction . Looking at the asian market looking at the map, Australia Day. I want to show you this. 9 00 a. M. , opening the markets. Taiwan, malaysia all declines. That is down by. 06 . Another dramatic difference. Why it would be affected by europe, cracks in the system. Imports, exports and watch out for the chinese open. Australia is closed for its national day. The euro, the low the 11 year low is this. 1113. 1113, that is the 11 year low shows how close it is right now. That has fallen. The vix index. It is arguably the key one. Let me show you. The dramatic start, how weaker it has become and that is the 11 year low. Concerns over greece. If greece were to default on its debt spain italy, and portugal have elections this year and how would they react . They also have heavy debt. We will see how it develops. Right, japan has indeed got as our record trade deficit despite rebounding. Exports off of a act off of a weaker yen. Mentioned the exports. Experts did rebound. 12. 9 in december, a good, nice strong rebound. Looking at the whole year. Whole year trade deficit, ¥13 trillion and we saw a deficit narrow to ¥660 billion a but not enough for the whole year trade deficit which widened for the Third Straight year. We are seeing their trade attorney negative in 2011 for the first time in three decades after the crisis, forcing to shut down. Even though the trade deficit didnt narrowed to ¥660 billion, it was not enough area enough. Exports rebounded to 12. 9 in december beating analysts estimate. Especially the United States up 24 yearoveryear. The u. S. Rebound as well, i suppose. Also about to the weakness here in asia, the boj government. Commenting on that, take a listen. The depreciation means to things. One, made exports more profitable so exports increased. But as you said, not as much as we had expected. Possibly because of slow down to the growth in asia. We do not know. More than half of japan exports in asia. Given at that, the japanese economy only 10 12 depends on at boards and a lot a companys producing overseas. The new Japanese Parliament is speaking today. What can we expect . We have a long schedule. Key topics on the agenda. Despite National Security legislation, the rx acting the we are expecting the fiscal 2015 agenda. The abe government expected to implement a by march, the end of the fiscal year. The schedule is tight. It was delayed by the general election. As it stands, japan kicks off. A supplementary budget for this current year which will run it through june and that is the stimulus plan. They hope to have it enacted by february 1. On february 12 the 2015 budget a record budget. And hopefully, they will have that enacted by march 31 if they grab on. They might have to make do before the full budget. Thank you for that. Japans trade deficit records improvement in december. Looking at the new Japanese Parliament speaking today. The bank of england looking to write down the stimulus package. Governor mark carney saying too much qe could do more harm than good. He is saying investors was realized Central Banks will not often direct markets. Local stocks climbed 50 since 2010. And meanwhile, a board member says that Capital Markets are the next step before the ecb and integration would be a logical consequence and would make is members more resilient. Alibaba wants to reach 2 billion customers online in help Small Businesses out of china. He was speaking in davos. He said alibaba could overtake walmart within 10 years. I have came to walmart five years ago and he said, a great job. I said maybe 10 years we would be bigger than walmart. [laughter] i think in 10 years we will be bigger on walmart is the sales. If you want to have 10,000 new customers, you have to build a new warehouse. For me, customer service. Catch the jets catching the Jack Ma Interview later. Apple is out with results later this week. What will be a rope this is what will be a focus is it the iphone. What are we looking get . China is set to beat the u. S. In terms of iphone sales for the first time. Confirming what tim cook said a few months ago. It is a matter of time before china can be the biggest revenue contributor for the company. A very satcher eroded font a very saturated fond market in the u. S. Right now. Several analysts said iphones are made outside of china and 36 of shipments went to the contrary compared to 22 a year ago and compared to 24 of shipments and went to the u. S. This quarter. It could be a potential turning point for apple since they signed the deal with china mobile and 2013 basically allowing them to sell the iphone five and now iphone 6 and 6 plus. Another analyst quoted as saying theres optimism for china and growth around 200 million more iphones old in sold in the china rather than the u. S. You have competition and run in with the government. The latest release of the iphone was delayed for a month after a review process. We got the competition from a lot of mobile phone makers like xiaomi. The most popular in china and they do not even use google, Android Software and the china market as well. Yvionne mann, thank you. That outlook from hsbc. That is when on the move returns. You are back with on the move. Bringing in head of asian strategy. The top stories of what is going on in greece right now. Just shy of a majority and could end up with one. What could this mean . In terms of eventual outcomes and the european union, we think it is in everybodys best interest on a deal of a new program to be reached. Thats the ecb and imf and we think that is the most likely outcome. It is a very low probability of what we do think the outcome brings is volatility back to the ecbs decision in recent times. We think volatility is back to stay. Won 4 . When it comes to the currency market, does it continue down . You have been talking about parity by the end of the year. Some have talked about 95 against the euro. We are looking at 109 which is quite conservative. I am saying you are sticking your neck out. It was a bit higher. We think the trend and we believe in you of heard daniel bloom talk about this, we are bullish on the u. S. Dollar. Ollie one way down. Only one way down. I would not be so bold. It is going to continue to weigh on currencies like of the euro. It creates opportunities on equities to buy things like prominent u. S. In europe exporters out of germany, for example. You know, you are of course, being hurt by the weakness of the euro. How do you do that . If you go to buy european stocks that we are telling our clients to lead off the year is to just as you couldve done in 2013, by Japanese Equities and hedge it back into the u. S. Dollar. If you are buying european equities, hedge it that. That is u. S. Dollars. When we see the decline of the euro and the yen which is locked into a trading range, is a correlation between the 2 . Going short on the euro and collecting that is yen weakness . What it is, the effects of headline news. All of the talk in the currency market in recent times has been what is happening as if the ecb and at the Swiss National bank. An amount of commentary and sentiment, the euro back. If that were the case during the early stages particularly of the u. S. Qe, some investors are thinking likewise they could do the same in terms of lowering chief euros and selling them to buy a high yield. It is Australia Day today. Not a republic. Australia day and the story has been a remarkable decline in the aussie dollar. Absolutely. To see the rationale behind the bank of canadas Interest Rate cuts. We think that is still going to be up but maybe one year down the track in 2016. Not in the near term. I have to say with iron ore and coal making up 40 of australias trade and the scale of the declines on materials off late, the economy is going through a period of change. We would say domestic demand looks relatively soft. I wouldnt say the Interest Rate outlook, a weaker currency is a stimulus to the economy and the Australian Dollar is at adjusting to the new situation where it is more of an issue of miming to dining at the emphasis of x ors goal back on exports goes back. What is the news . In terms of australia a little bit to the sidelines for the moment. We see the kleins for it we see the declines for a while longer perhaps into 2016. As i saw on some of the australian websites this morning, they say it is the 70 show again. Gauging onshore market, it seems like . 70 may be here tuesday. You said the shanghai stock continues to show promise. Show promise but delivery, no. If you are an investor in into the asian markets towards the end, we have been bullish on shore mainland, june of 2014. It served you very, very well. What we see in terms of the broader dynamic, going up a huge premium. You get back to hong kong. Yes, you do get back into the eight shares. Not only the hong kong context historically for the Hong Kong Listed equities but also globally. H shares are pretty cheap along with european exporters. What about chinese banks . We think are certainly interesting. However, with her run into the shares and the easy money is being made with a broader outlook. Ben always a pleasure. Ben pedley. President obamas visit to india and looking at the ties between washington and a breakthrough on Global Warming and nuclear power. You are watching on the move. Now, indian diplomat in new york. President obama is in india. We have been looking at it that all of morning. Quite a radical turnaround in terms of what was a very frosty relationship indeed. Quickly so after the arrest of the india diplomat in new york and there was outrage in india over how her arrest was handled. We saw the security gates, the roadblocks outside of the u. S. Embassy in delhi and they were removed and a litany of other restrictions restrictions and changes. Quite a difference today with president obama in india. He arrived yesterday for the threeday visit. A range of issues on the table. One of the completion is is progress on the building of nuclear that u. S. Companies can sell to india without the fear of legal repercussions. Long gone are the days where america trying to support any indian ambitions. We have not seen the exact text of the agreement. America agreed to let go of their demand they be of it to track any nuclear technology. Is india on board with nuclear with Global Warming . Absolutely. It is something obama will be focusing on at the summit tomorrow. He will be in saudi arabia to pay respects to the passing of king abdulla. It is a reminder that saudi arabiau. S. Relations has a lot of history. It is still significant as the saudi arabia government looks forward. To buy very much. We were thank you very much. Well have a look at that and what is going on in regards to the open in about in hong kong in a few minutes from now. Looking at kim jong on as well. Kim jongun as well. Girl power. And the markets opening. Shanghai getting open. Coming your way in about cointreau minutes. The end is near. The greek elections declared and austerity will be over with. That is sending the euro to an 11 year low. Moving to the downside. Andrea and the United States india and the United States market diplomatic ties. A look at the asian action. To greece and we have no trading in australia due to the public holiday. The greek fierce as a week session on wall street. The greek fearsand a weak session on wall street. The euro at an 11 year low. Euro and asia and the greek story. The worstcase scenario in greece doesnt have a new party to end austerity. [indiscernible] the government trying to repay. At least take some pain. And the default is the worstcase in the area. Lets talk about the uncertainty to the markets from volatility is quite high. Off by 0. 1 . A good start of this morning encouraging volatility. The crucial one is the euro. As you can see from this chart a twomonth chart and the lowest toward an 11 year low. The today chart, and there we can see shares pick up there. Just to remind you that in the 11 year low is 1113. If you are a traitor, you are looking at the key support level. Trader, you are looking at it a key support level. And bond yields and the market and from this, there you go. We see that 10 year french bond yield in the last few days falling. The german 10 year, quite an Extraordinary Development there. Bond markets. Back to the markets looking at this and looking forward to the markets opening. Philippines and also reaction changing direction. A little bit of uncertainty. Absolutely. Manila. Thank you for that. Talking about that session in manila getting a underway. Perhaps a record high close on friday. Benefiting from cheap oil cheaper oil. Give us insight. If you want to look at the makeup what constitutes the economy and the index. A lot of the heavyweight stocks are exposed to the consumer sector. What are you talking about here . You look across to the philippines has attracted the most. It is the only one of part from singapore which has attracted net flow. Indonesia, thailand malaysia for example, have seen up because one of the reasons is because of the oil price. A study that put the results last month malaysia is the big loser being can oil exporter. Certainly. In the philippines case, it exports most if not all of its oil needs. In the case of how it benefits the economy, the Oxford Economics said earlier in their study was you look across 45 countries and they are saying if oil stays at about 40, we will benefit. Looking at an average of 7. 6 gdp growth putting the philippines of a change basis. The biggest beneficiary globally for consumer oil prices. Hence, record highs for the philippines composite. It is getting a bit expensive. Across asia next to indonesia is the philippines that is the secondhighest. The rest of asia below. That is looking well. Pretty expensive by every gauge. Fairly costly. There we have it. Corporate stories. Lets do that with sge sheri ann. Planning to merge 2 of britains telecom and will need approval. The are trying to win Regulatory Approval for the physically 15 billion deal. Telefonica have to sell 40 of its capacity and will evolve involve germany. Usernames and passwords of 20 million dating website visitors have been stolen and offered four cell. These posted on an online the thievesx help the thieves posted on an online forum. It can be used to try to access sensitive data. They said they are fully cooperating with the Police Operation against child pornography does pornography. It is looking at him of those websites to trade pictures of under age as you japans it is looking at using websites like amazon to trade pictures of under age girls in japan. Those are your top corporate headlines. Ok, a close look at japan. The background of what is happening. The details. Japan is cooperating with police and said the company. Any illegal sales. It is working with police. And your reactive the end of last year about the and a story after the end of last year. There was a mother in japan who did a search for candy and was quite surprised to see as many pictures of scantily clad young the girls, prepubescent girls. They were provocative, some kind of provocative photos. Pictures from the original story we did last year. This industry is quite a money generator for people. It raises about 600 million in 2013. This mother was shocked and try to do something for she contacted the companys where she found the search results. Candy, what came over candy doll s. It is part of the di8l i idol industry. There is a very gray it is a very gray area that is not entirely covered. What is shocking is it was allowed in even though japan, only last year banned child pornography. That is right. One of the last two to ban child pornography and the definition of child porn. It allows the idol industry to fall within the gap. There was a study that said japan is a hub for child pornography. A story look at some the details and we found that 1600 cases were under investigation for pornography in japan according to the police. Thank you very much. Ok, a look around the mystery where the 2 women of power. A very different person personalities. Sam kim. Kims sister is appeared more often in public. What is happening . What we know about her . We know that her name is kim and it is about 27. She is kim jonguns youngest sister and she is appearing in the public medium of north korea. We knew very little about this woman until kim jongun took power. She is only 27 but holds the position of Deputy Director in the ruling party which is pretty high position. It is safe to consume in a country of north korea were blood it means that more than anything, she is probably the new caretaker for kim jongun as he executed his uncle about a year ago. The dust role conflict with the first lady here does her role conflict with the first lady here . Presently, they are allies trying to thank him jonguns trying to sustain kim jonguns power. If the wife tries to gain influence of through her husband, it will be a conflict between the sister and the wife. We have seen signs the wife is commanding a growing following among the wives of the elite. Last year, about a year ago when is the was executed, a lot of elite tried to use their connections to the wife to avoid their husbands face a similar fate. An opportunity for women. Ok, right. There are differences in terms of personality and of course appearance, obviously. Oh, yeah. We have seen the wife, the first lady carrying a Christian Dior handbag. She prefers western clothes while the sister goes with Party Jackets and party jumpers. She is in carrying a notebook and a pen. The sister is more practical in her appearance. While the wife is more of a person thats sort of bonds her looks and beauty and attractiveness. Theres a difference in the style they portray. Currently, there is no doubt that the two women are teaming up to help kim jongun consolidate his power. Sam kim in seoul. Up next, what is working in china . Change is inexpensive. We are going to check on some of the stories making headlines. With a antiausterity Party Winning in greece, samaras has conceded conceded defeat. The party with growing anger with international creditors. The Greek Economy has shrunk by a quarter. Japan, two of his national two of his National Journalists have been killed. Prime minister shinzo abe had offered to fight against extremists a it is unclear. The messages disappear from websites after it was posted. The United States and is prepared to step up sanctions in russia at least 30 people were killed when rockets hit the strategically placed ports. The attack after prorussian separatists rejected talks and promising new offensive against government forces. Lifting the airasia fuselage. The cable snapped. Strong currents were too much for the tide. 70 bodies have been recovered from the airplane which crashed december 28 with 162 people on board. A preliminary report may be released this week. India has shifted on Climate Change. Prime minister modi said they have have to reduce emissions. These comments are just is moving toward joining the International Deal on curbing greenhouse gases. China is calling for foreign powers to move the economy. Its latest move is boasting their restrictions. Lets get over there. Christine, a good morning. What are they planning . They are trying to make it easier for professionals and sectors to live and work here to ask and the original plan to allow more sectors to qualify. The first set of these not only to come in a but to a. But to stay. There are originals each year. This latest move allow more people to actually be able to apply. And then intensive, often generates tax incentives, insurance and so on. This Program Allows us to these. Subsidies. This is a very important for the new direction in the chinese economy. It amused the high level for intelligent it means the high level for intelligence. It has been a closed economy for many years. They will have to catch up in many, many areas to read to reach the level. It has to act quick. A lot of people coming to china usually younger wants looking for a starting opportunities. You see many coming back here finding it a bit of a challenge to attract to pick anywhere they want to lift to pick china over other places. The thing here is maybe one the Fastest Growing economies in the world, it is hard for people to make the move when you have the air being so polluted at times. Yes, pollution, we talk a lot about especially in beijing. The most disturbing thing we are seeing is a more pollution in chinese cities including in shanghai where people have moved from beijing to escape pollution. We have had internet censorship before. You could get a vpn to bypass the firewall. The government has clamped down saying it is social security. What happens as businesses and individuals find it harder to do research and communicate. And it means it is harder and harder to work efficiently. Basically, another big one is even a rice. Chinese rice so often is [indiscernible] people are trying to buy japanese and thai rice. These are things money cannot buy. You cannot substitute for more you can substitute for more Expensive Health care but if these are things that are very hard for people to compensate for some of these things. Christine, thank you. Well we have a look at president barack obama arriving to a warm welcome in india. A year after relations were strained. What is on the agenda in the indian capital. I am rishaad salamat. These are our top stories. The party has won the election in degrees. They said austerity is now over with. Almost all of the votes counted and seeing having wi\o won 149 seats. They exploited thrown anger. They shrunk more than a quarter since 2010. Use unemployment running at 50 . Japan has announced a record trade deficit in 2014 despite rebounding exports on the back of the weakness. Shipments climbed from a year ago period. Exports of the United States growing at more than twice of that. Imports climbed almost 2 leaving a deficit of 5. 6 billion. The United States and india have pledged to strengthen ties as president obama visited the country. The Prime Minister modi said a shift in the Climate Change and all countries have an obligation to reduce greenhouse gases. Is it just new delhi may join in curbing emissions. Weeks at the Prime Minister [indiscernible] held a warmer atmosphere of the two countries vowed to strengthen bilateral ties. More from mumbai. Definitely a president obamas visit. Kicking off in a way going by the body language of president omar does president obama and Prime Minister modi shared a warm hug. Signaling perhaps a new relationship between both sides. Does sex and the fact that Prime Minister modi called the president barack, a first name basis. Very unusual in india. Not all about body language and camaraderie, business, and the nuclear agreement. Both of which have outstanding for many years. An outside group which had been set out to handle the problems. An understanding on the liability clause with a nuclear issuance between both sides being and support. In the finalization of of logistically tracking agreements. Both the sides are moving toward cooperation on the nuclear front. Also both sides agreeing to renew the framework in 10 years. The u. S. Is fast becoming the biggest supplier of equipment and American Companies are hoping to make the most. Both of grain to reach a deal on Climate Change at the u. S. Climate conference after the end of this year. And immigration, some detail. Just a quick mention that bilateral trade is over 90 billion. Back to you. Before we go, a quick look at the stories we will be keeping an eye on. Willy alcohol will yahoo cheek up with his remaining stakes in alibaba . Yahoo would be worth a fraction of its current value. Wednesday will be 100 days since jak\\ jokowi but again became president. That will be live at 10 30 a. M. Local time. What authorities know is a high december behind decembers s iege in downtown sydney. Ok. What we have coming up. All odds of the greek election and it could have all eyes on the greek election and it could have implications on the eurozone in itself. This is on the move and we are back in a moment. I am rishaad salaammat. We are broadcasting live from hong kong. You are watching on the move. Or declines for the euro with the single currency at its lowest level in years. There is speculation of a greek exit after the proeuro government was beaten at the polls. Analysts are looking for a milestone to come out of china. Over the next 60 minutes we will be live in singapore, jakarta, beijing, as well as new delhi. European Union Finance ministers meeting later to discuss the outcome of the greek election. Theyve got a lot to talk about. Syriza is just two seats shy of an overall majority. They declared that austerity is over with. Of course, this would have deepseated implications, which would go well beyond greeces borders. Thus far how realistic is the grexit . If they do not take the pain of austerity, which this party came into office on antiausterity pledging, clearly 240 billion euros already. The imf and the various countries have gone into help greece. Youve got to feel the pain. They cant pay their debts. If they default, it seems an exit is quite ugly. Likely. 95 of the votes have been counted, almost all, and syriza are still at 149 seats, as you mentioned, two short of the majority. They are meeting on monday with the independent greeks party in the morning, and the syriza offices, if they agree to form a coalition, 149 of the syriza and 13 of the independent greeks party. Altogether, it is a big change of direction. Spain, portugal italy, and also the u. K. All of these factors not just the euro, but the eu itself. The u. K. Independence party with the strong showing theyve been having in recent elections. Eurosceptics are on the rise. Just looking in greece, what does this mean for the euro area . That is a concern. The fractions between greece, italy, perhaps france, all of them bailed out by germany will the euro survive if greece does leave the euro . Quite simply, it is a dangerous president. German bond yields, the last two days they have fallen 41 . If you look at the last two trading days, we have seen the euro plummet 4 , which is a big move. What about the reaction there and elsewhere . The reaction for asia obviously the euroyen is the big trade, with the euro being week, and the yen is strong. When it comes to european exports and trading partnerships of course, australia shut for Australia Day china has opened a little bit lower, as has hong kong. Flat and volumes are not low but on times. Volatility is quite high, and that raises concern for markets. The morning after, we shall see as the gradual building of syriza and the new party, what it means for the face of europe and the eurozone. Here is the current price for the euro. 1. 1113. The price is 1. 1168. From this chart and big decline. A big decline. I mentioned to rishaad, the german bond yield is down about 41 the last two sessions. Also, france, that is a concern. The euro is falling. The question is, will uncertainty prevail in europe . Any to try to figure out how to do with greece they need to figure out how to deal with greece. Italy, spain, france may also follow suit. Thanks. Japan clocking a record trade deficit for 2014 despite rebounding exports. It tells us quite a lot not just about what is going on in japan but also the United States. The annual trade deficit coming in at nearly ¥13 trillion. Widening for the Third Straight year, of course, japans trade turning into negative territory. The trade deficit did narrow in december to ¥660 billion, but it was still the 30th straight month of a fall. Exports rising 12. 9 in december, better than analysts had estimated. That is reflecting a lot of the u. S. Economy. Exports to the u. S. , up 24 year on year but that may not have been enough to offset the weakness in asia that could have been a drag on those numbers. Take a listen to bank of japan governor kuroda talking about that. The yen depreciation made two things. One, of course, it made exports more profitable so that exports increased, but not as much as we expected, partly because of a slowdown of the growth in asia. As you may know, more than half of japans exports go to asia. Bloomberg estimates put the yen at 125 by the end of the year. 117 thereabouts right now. They see it weakening further. That may not be enough given the 10 12 of the japanese economy depending on exports. A huge import bill that they had has gotten better simply because the oil prices have gone better. In november, that actually fell for the first time in months because of the fall of crude, but this time, imports did rise about 1. 9 . Lets talk about the new Parliament Sitting in japan. What can we expect from them . Please got this long Shopping List of Structural Reforms that shins on day shinzo abe wants to get done, but its not getting done. It is all about politics. There is a whole schedule for japans dyad. First of all, they have to enact a fiscal 2015 budget and they want to do this before march 31. That would be the end of the current fiscal year. Given that we had december 10 general elections, that could get delayed. The have to enact the supplementary budget. They hope to do it by february 3. Then you have to submit the 2015 budget, and you have to enact it by march 31. 118 billion. Thank you very much the latest out of japan, the trade data, and a new parliament starting at session today. Amazon japan says it is fully cooperating with a Police Operation against child pornography. The companys tokyo headquarters was rated on friday as part of an investigation into whether sellers use the website to trade pictures of underage girls. Japans socalled vital industry generated more than 620 million in 2013. Usernames and passwords of 20 million dating site visitors have been stolen the thief posting the news on an online forum. Half of the information is from people based in russia. Most of the rest is from users in the european union. The website hasnt been identified, but details could be used to try to access Bank Accounts and other sensitive areas. The plan to merge two of britains biggest mobile operators could lie in the hands of the eu. Hutchison may have to make significant concessions to get regulators approval of the deal. Telefonica had to sell 30 of its Network Capacity when it bought german eplus last year. Jack ma says he wants to reach 2 billion on my customers run the world and help Small Businesses outside of china. He told charlie rose that alibaba could overtake [indiscernible] i remember the senior management. He said, jack, youre doing a great job. I said, maybe in 10 years, we will be bigger than walmart. He said, youve got a good hope. 10 years, we will be bigger than walmart on the shelves. If you want to have 10,000 customers, you have to build a new warehouse. For me two thirds. You can catch more of that interview coming up on asia edge. 10 40 a. M. Looking at apple, because its results this week are out, and the china breakdown will be in particular interest. We got a report saying that the iphone may have passed a milestone. Alibaba was telling me earlier that they were selling more of them in china and the United States. Tim cook called it a couple of months ago, saying it was just a matter of time. China is going to be the biggest revenue contributor for apple, as we see this saturated Smartphone Market in the u. S. Already. The Financial Times is the one that reported this, citing a couple of analysts one from ubs saying that recent data suggests that apple demand saw outsized growth in china, 36 of the shipments in the quarter went to the country. Compare that to 22 of your ago. Compare that to 24 of shipments that went to the u. S. This quarter. Analysts say they have reached a turning point, ever since apple signed a deal with china mobile in 2013 allowing them to sell the iphone 5 and now 6 and 6 plus. China mobile, they say they are subscribers theres scrubbers are more than their s ubscribers are more than verizon and at t combined. We are expecting earnings coming out tomorrow. We were definitely are deathly going to see what happens. They had probables getting the problems getting the iphone up for sale. Its not exactly as it is going to be plain sailing going ahead. You have the biggest and most popular smartphone maker in the country. A lot of smartphones use software. The google Android Software, as well. The latest release of the iphone has delays of about a month because of a very long regulatory review process. Still a lot of hurdles. Thank you very much indeed. We have to take a break, but coming up, president Barack Obamas trip to india. We will hear from a former economic adviser to the finance ministry. This is on the move. You are watching on the move coming to live from hong kong, streaming online at bloomberg. Com. A year ago this month, the arrest of an indian diplomat in new york led to a full scale diplomatic row between washington and delhi. 12 months later, president obama is in india for a visit. Our correspondent is following the visit for us. What can expect today we expect today . Yes, well, today [no audio] hello, angela. Can you hear me . I think weve got a slight technical issue. We will try to get angela back as soon as we can. We are going to have a look at what else is going on out there, just seeing this visit to india coming weeks after president Narendra Modis successful trip to the u. S. The two countries are vowing to deepen bilateral ties. Here is the relationship by the numbers. Our next guest is a former economic adviser to indias ministry of finance. Joining us is the chief india economist at j. P. Morgan. From an economic sense, what do you think is going to be at the top of the agenda . We have heard about the Nuclear Issue and the Climate Change issue, as well, but what about economics . Look, the economic issue is most likely going to be on the patent rights and intellectual rights more generally, but i think the economic issue is essentially being driven businesstobusiness. There is little in terms of what the government can do. For we have seen over the last 1015 years, despite what happens between the government to government relationships, business and commercial relationships have been ongoing with the u. S. , and that continues. Indeed, it does, but at the moment how would you frame the economic relationship . How does it compare with the chinese relationship with the United States . Look, both india both the u. S. And china and india in the u. S. Have these strategic dialogues. It is a framework in which both sides get together on an ongoing basis and meet formally once a year to thrash out hash out issues. There are a number of issues at the top of the agenda in economic terms. What happened to indias tax decisions two or three years back, the retroactive taxation intellectual Property Rights both of them are clearly important issues. There hasnt been a result, at least not satisfactorily from the u. S. Point of view. The u. S. Clearly wants more opening up of fbi fvi into areas where india is not ready to open them up. How much pressure can he bring to bear . That is something that has been very controversial, but there are hopes of other reforms that Narendra Modi promised. Which ones do you think barack obama is most looking forward to him and acting and getting through the parliament . Enacting and get into the parliament . Increasing fvi in the insurance industry. Those are issues that are something that governments are looking into. Labor reforms, something everyone wishes, but it is very very tough going on labor reforms. I would say at least on acquisition and definitely on increasing limits on insurance and other areas, i think those are the areas where there will be a push, but also, those are the areas where the government also wants to move forward. Underneath it all is this pledge to cut red tape. Red tape has dated back to the times of the british. Things got even worse, some could argue. What has he done about it . How serious is he . You heard about Civil Servants who have emptied the golf courses of delhi in the afternoon now. [laughter] those are nice stories. To be fair to the new administration, they have fixed a whole lot of plumbing issues that existed in the previous government in terms of speeding up approvals and making decisions, etc. At the end of the day, the proof of the pudding is in the easing. Two quarters have gone by, and a critical ingredient in Indias Economic growth, Corporate Investment, that hasnt turned up. One has to look beyond the fixing of the plumbing. Those were necessary steps, but it clearly hasnt impressed Corporate India to start investing. That was back to the issue of what are the binding constraints to indias growth . This administration will have to address those binding constraints if it wants to move Corporate Investment ahead, which absolutely is necessary to get indiana back on a 6 7 sustained growth track. Weve got this made in india campaign. I suppose that is something he will try to urge american business, to do manufacturing in india, right . Yeah, it is a great idea hand it is a great idea in the sense that it it is a rallying point around which you can build your policies. I would say that the timing of made in india is not the right time to push for the manufacturing sector. Across the world, that is one place where there is massive access capacity. Chinas excess capacity has led to deflation for 35 straight months. The world is actually overwieeight in this access capacity ax excess capacity. The thought that india would add to that is a bit of a stretch. Clearly, these industries could provide for indias massive demand, but even that hasnt been faring well at all. Consumption has been very stable around 3 4 . It is a good slogan, but thats it. Great talking to you. Talking about the challenges facing Narendra Modi and india, all framed with that barack obama visit to delhi at the moment. Japan has reacted with disbelief to the news that two of its nationals may have been killed by the Islamic State in syria. The group has demanded a ransom for each of them. That was in response to the money that Prime Minister shinzo abe offered to the fight against extremism. The United States says it is prepared to step up sanctions on russia amid a surge in violence in eastern ukraine. 30 people were killed and more than 100 wounded when rockets hit the important point of mar iupol over the weekend. Two attempt to lift the air asia plane fuselage failed. Indonesian Officials Say strong currents were too much and the wreckage sank back to the sea. Coming up we are having a look at the widening row over the president of indonesias choice of police chief. On the move is back right after this short break. The end of austerity. Syriza wins in greece. The implications may be felt much further afield. The is at an 11year low with asian markets also lower. Jack ma says alibaba can be bigger than walmart. Eu finance ministers are set to meet later on to discuss the locations of that election in greece. Radical left or the syriza won and immediately says austerity is over with. It is within touching distance of an overall majority having exploited growing anger as the budget cuts which have been defended demanded by the international community. You unemployment is running at 50 . Lets take a look at what has been happening on the markets. John dawson has been covering this for us. We have australia shut today. Therefore, the only green from last week. The rest are seeing declines. Uncertainty is the concern. Syriza now winning 149 seats 95 of the votes being counted. They will obviously have to form a coalition with the independent greeks. Monday, 10 30 they meet in greece. After they will have a majority of 162 votes. The antiausterity party very much in power. That is the reaction. The euroyen has been an interesting trade today, the yen stronger and euro weaker. The overall asia picture, just to reiterate, australia is closed because its Australia Day. You can see the euro the last two months 1. 1168. The 11year low, 1. 1113. That is the 11year low. It hasnt reached that again. You can see this range of the euro today. That of course was on friday. 1. 1167. Really the markets are digesting what it would mean. There is a longer picture concern first of all the elections in italy, spain, and portugal what does this mean for that . Obviously, a complete shift of approach in european states, and also, if greece refuses to do austerity and take the pain after borrowing 240 billion euros if they wont take any pain, they may face a default. That is longerterm, longer down the road and if that was to happen, you would see greece may be leave the euro, which sets a dangerous precedent for italy, spain than france perhaps. That is the concern in markets, thinking, what if . The euro yen, you can see from the picture the same kind the picture as the eurodollar. That is a major trade in asia today looking at the yen against the euro spot. Also the nikkei a lot of exports are falling. Oil and Gas Oil Prices are down low. Industrials, consumer goods tech stocks, all these are seeing declines. That is sort of the reaction from asia today. In other news, the bank of england has expressed doubts over the ecbs massive stimulus plan. Mark carney says too much qe could do more harm than good. He warned against excessive risktaking because of low Interest Rates. Carney said investors must relys that Central Banks will always rescue if markets overheat. Global stocks have climbed 50 since 2010. That is when the fed launched want to take it easy. Integrating the Capital Markets could be the next up for the ecb. He said the integration would be a logical consequence and would make the members more resilient to economic shocks. The euro came into existence in 1999, of course. Chief oil has benefited many countries around the world, but few maybe winning more than this one. David is here to explain why the philippines is perhaps having a bit of a boom. Certainly. I think investors have really bought into this idea. It used to be that it was a demographic sweet spot. You have a young population, and you used to have good governance. You put that together with the prospects of lower inflation, Inflation Expectations really falling since they started tightening Monetary Policy so what weve seen is a lot of foreign inflows into the country. If you look at data, which we were able to gather from the different exchanges in southeast asia, the philippines stands out if you compare the number to their neighbors. I think they are north of half 1 billion so far for fullyear inflows into the philippine stock market. Indonesian, thailand, and malaysia have seen that outflows. Why is this . She take a look at the case of malaysia, for example, asias only major oil exporter, and the philippines, which imports almost all of its oil almost mirror images of each other. Also, the makeup of the economy and how the oil dynamics have changed it makes the external economy healthier. Indeed, it is an economy that is quite rare for emerging markets. It is not wealthy on a per capita basis, with 70 of the economy comes from consumption. This puts money into peoples pockets. A big part of the index is made up of companies that have exposure to the consumer sector. It is a bit more expensive. I think only indonesia is more expensive than the philippine composite. It is expensive by any measure, especially for the emerging market. At the moment, at the altitudesickening level. [laughter] it has outperformed its nearest neighbors. There you go, one of asias most expensive markets. Last i checked, the index was down about four points. It was a record high it hit on friday. Lets have a look at amazon japan. Why are we doing that . Pities cooperating fully with the Police Investigation into child pornography. Rosalind shin is here with the background. What is actually has actually happened to get to this state of affairs . Amazon says that the company will prohibit the sale of any illegal products sold through the companys website. There have been some products which legally fall into a gray area according to some of the lawyers we consulted on this story. Were going to go back to october, november where we look at a story about the idol industry in japan. It encompasses photo books, dvds, and also models. Some of them are normal models but there are some aspects of the industry where they show very young girls in scantily clad outfits. Idols. Junior idols. The story we looked at last year was a mother who was searching the word candy on amazon and japan, and instead of finding pictures of sweets she came across pictures of prepubescent girls in scantily clad outfits. Sheila shocked by them. She thought her own campaign to put a stop to this industry started her own campaign to put a stop to this industry. The idol industry more than 600 million in 2015 2014. We did a report that found from the time she started the campaign to the time the story was published, a company like amazon we did a search for candy, and you couldnt find this candid all series and more. It was one of the more popular areas of items in the junior idol category. There are many items that may or may not still be available on the internet. Amazon isnt the only company that sold or sells these items. This is a very strange state of affairs. I was astonished last year when japan actually banned child pornography. I thought surely they would have had one for decades. I dont really get it for an industrialized nation to have allowed this to go on. You said to me earlier that these images, these idols fall into a gray area. Japan did ban child pornography last year, but it also redefined the definition of child pornography. Some experts and critics say that this definition doesnt cover areas like the idol industry. Also, there were some industries which actually campaign for a less restrictive or not so much restriction on the definition of child pornography and to include manga, m a, and computer games. In japan, agis and publishing associations lobbied against these regulations magazine publishing associations lobbied against these regulations. Japan is Mentor National hub for the production and trafficking of child pornography. We are going to take a look at what is going on in indonesia. The president is approaching his 100th day in office. . Joko widodo facing a new challenge, his choice of police chief. Joining us is our correspondent from bloomberg tv indonesia. Jokowi summoning both sides to talk last night. What exactly is going on here . Good morning rish. In a press conference at the president ial conference, the president joko widodo said that kpk must stand shoulder to shoulder and anticorruption. The president repeatedly said there should be no criminalization and Law Enforcement in Law Enforcement. The investigation into Bambang Widjojanto must be done as transparently as possible. Joko widodo made the statements after he summoned several leaders to discuss the growing discontent among the public about the rivalry between kpk and the national police. There was no formal plan to establish independent team. The president would continue to consult with seven leaders about the matter in the future. The Police Arrested Bambang Widjojanto 10 days after the agency named jokowis choice budi gunawan as a suspect. The police claim to have strong evidence, while kpk said the arrest was marred by conflict. Jokowi said he has postponed but not canceled the nominee for police chief, prompting criticism from antigraft activists. Back to you in hong kong. Thank you. Still on the way, we are going to hear from ali babas Alibabas Jack Ma for his plans for this year and beyond. This is on the move. We are going to be hearing from ali baba founder jack ma and a moment. Lets have a look at some of the other stories were tracking for you right here on bloomberg. I am in yvonne man. It is monday, january 26 and these are the top stories. The leftleaning syriza party has won the election in greece and says that posterity is over. Syriza this scene winning at least 149 seats, with 151 needed for an overall majority. The party exploited growing public anger at budget cuts demand by international creditors. The Greek Economy has shrunk by about a quarter since 2010, and youth unemployment is running at 50 . Japan has announced a record trade deficit for 2014 despite rebounding exports on the back of the week yen. Shipments climbed 12. 9 from a year earlier with exports to the United States growing at almost twice that, 24 . Imports climbed almost 2 leading a deficit of 5. 6 billion. The u. S. And india have pledged to strengthen bilateral ties as president obama continues his visit. Prime minister Narendra Modi announced a shift in indias stance on Climate Change saying all countries have an obligation to reduce greenhouse gases. The comments suggest delhi may join an International Deal on curbing emissions. Those are the top stories. Im yvonne man in hong kong. Was the largest ipo in u. S. History, and now alibaba has over 100 million daily users. Founder jack ma has bigger goals in mind. He said he was targeting 2 billion consumers worldwide. First, he told charlie rose how the companys name came about. Ive been thinking for many days, ali baba is a good name. Alibaba is a good name. The waitress comes, and i asked her, do you know about alibaba . She said, yes. I asked her what it was. She said, open sesame. I asked 10 different people. They all know about alibaba, the 40 thieves, and i think, this is a good name. Whatever you talk about alibaba is always there. [laughter] you said in creating alibaba, you had to create trust because people in china were used to facetoface. How did you create trust . I think because we started doing business on the internet i dont know you, you dont know me. How can you do things online unless you trust . For ecommerce, the most important of things is trust. When i first went to the usa raising money and talked to venture capitalists, many said jack, no, no. How can you do business on the internet . With the credit system, its impossible to do business. Everything we do is trying to build up the trust system, the record system. Charlie, i am so proud today. Today in china and in the world people dont trust each other. The government computer and people and the media, they dont trust each other. With ecommerce, we finish 60 million transactions every day. People dont know each other. I dont know you, i saw products to you. You dont know me, you wire the money to me. I give a person a package. I dont know him. He took something across the ocean and river and said, this is the trust. 60 million who trust every day. You created an escrow account in the beginning. You kept the money until they got the product. The Escrow Service is called aliplay. It was a big position. For the first three years, alibaba is just a marketplace for information. There was no payment. I talked to the banks. No banks wanted to do it. They said, no, this thing will never work. If i launch a payment system, it is against the legal laws. You have to have a license. If you dont do it, ecommerce will go nowhere. Then i went to davos. I listened to a leadership discussion. Leadership is about responsibility. After a listen to that panel, i gave a call to my friends, my colleagues and i said, do it now immediately. If something is wrong if the government isnt happy about that, if somebody has to go to the prison, jack ma will go to the present. It is so important for china for the world to build up the trust system. If you do not do it and do not to improperly, ill send you to the prison. [laughter] people dont like it. So many people have talked to at that time, aliplay, they said, this is the stupidest idea youve ever got. Jack ma in conversation with charlie rose. What is next . What is working in china . Changes for expats. On the move returns and a couple of minutes. China is calling for four and as it tries to move its economy up the value chain. Foreign talent as it tries to move its economy up the value chain. What is the point exactly . The plan exactly . They are expanding. They are allowing a letter said the people gain eligibility to an existing program called the 1000 talent plan, which was originally set in 2008. The Program Makes it easier for targeted talent to first get a visa and then apply for a residency permit to stay the chinese green card, which is actually hard to get. Getting rid of a lot of the headaches and inconveniences just to be here and after that depending on the position, they offer tax incentives, medical incentives, even subsidies and research allowances. Its potentially a lot of money every year. I have to stress that this is a key move for the new direction that chinas economy is moving towards. It needs highlevel foreign talent to move forward and innovative technology. It faces stiff Technology Competition from the likes of singapore, for example. Programs like this have been working since 2008. The government said the plan has attracted more than 4000 people and with Regional Government programs, more than 30,000. Many overseas chinese are coming back here. China needs more of the right talent, and it is still finding a challenge to attract established talent that can peek pick anywhere they want to live in the world, to get them to pick china over other places. There are a lot of challenges when you actually arrive in china, if you are an expat. It is a hard place to live. Pollution for one thing right . Pollution is one weve talked about a lot, especially with regards to beijing. We are seeing more polluted days in more chinese cities including in shanghai, which is where beijing ex pats used to go to. Internet censorship has become another big thing. We used to be able to get that be able to get around that with vpns, but last week, the government clamped down on that saying it hampers social stability. A lot of these things you cannot compensate with money. These are the very things people are looking for as they move up the value chain and become more sought after. Thanks for that. Taking a look at some of the other news out there, american sniper topped the box office for second weekend, 64 million so far. Clint eastwoods drama has been boosted by six oscar nominations, including for best picture. Jennifer lopezs saucy thriller the boy next door took 15 million. That is it for this monday edition of on the move. It is going to be asia edge on the other side of the break. Weve got a couple of guests on todays show. We have the ceo of ecognosis. He is a specialist on greece taken a look at the implication of syriza winning the general election. On top of that, we are discussing the oil prices. That and more. Asia edge is next. With austerity, the signals sent by the voters in greece. Analysts are looking for a milestone in china and the raisian nation that stands to benefit most from the tumble in the price of crude oil. Coming up this hour, a new year and new mood. India and the u. S. Coysy up again and fut diplomatic rile behind them. More on the prospects from oil. Plus taking center stage. Jack says alley bautista can be bigger than alibaba can be bigger than walmart. The last week of january, more important reaction to greece and the oil price dragging down. All the markets are down. Australia is closed today for Australia Day. No reaction there until tomorrow. China actually opened higher. And the japanese markets are down by 2 3 of a percent