Heres david. We cannot make out that the point which direction stocks will be at least trending. For today the lead will be, australia is weak, blowout jobs numbers in the u. S. That sent stocks basically tanking. It sent yields flying. I will get you more on what the yields are doing at this point in time but certainly the odds of a rate hike from the fed, in fact Going Forward perhaps to june. Look at what options are saying data projecting 25 26 of that happening at this point in time. Obviously, that could all change given future job reports. This is what asia is doing now. Fairly mixed jafment pan half of 1 higher. You had the current account surplus there for january a little narrower than expected. 187 billion yen certain lips the japanese yen went above 1. 19. A little bee three but certainly strong dollar helping things along in japan. Half of 1 . What else do we have . Australia down half of 1 pr for the market there. Tony abbott managing to defeat the leadership. More on that in a bit as for the data that came out of china on the weak end and big drop there in imports. Let take a lookt when it comes to oil prices. We did see big movement there. Third day now for crude. Just about at the highest level so far this year. 53. 5, price of crude. I mentioned yields. Quickly before i go, let my point out what we are seeing, u. S. Yields, 195 basis points the high we hit going into this morning. A little below that. Chans of the u. S. Rate hike come june sent yields flying up 7 for the tenyear cross, he specially shortterm tenors there. Lets leave it this for now. Fairly mixed. Unclear which direction we will be headed. Not bad. Looking at the trade out of china dominating some of the economic headlines at the moment. Showing weaking domestic demand is falling oil pries driving together to produce recordhigh trade surplus there. You have been breaking down the numbers. Have to drill down the numbers. Seasonal affect as well. Look at that. This type of year we also find some of that date why is skewed by what happens in particularly when it comes to the weeks ahead with chinese new year. Absolutely. You have seasonal disportions which we will get into in a minute. But have disportions in commodity pries and oil and higher dollar, all contributing. You have weaker export market as well. So thrv that leads to weaker manufacturing in china. Ok, you also have the weaker domestic situation. Which is not weaker imports. Also skewed because sft dollar domination in oil. Oil is significantly down. Lets look at the numbers. First exterm situation. Exports expected to gain, they did not. Down 3. 3 . The first time it fell in 11 months. This is not the big picture. Bigger picture domestic demand, import again falling. The most in more than five years. Down 20 . That led to record traved surplus of 60 billion u. S. Dollars and change. You have a lot of calls now. Is the economy slowing further than expected . Will we have more . Will there be another Interest Rate cut . And Federal Reserve requirement at the same time. I think you said hey just grab on to this but dont look too deep into it. Yes. Chief china economist is saying a couple of things. On the currency front the trade data creates a dilemma for the exchange rate. China does not want too rapid depreciation in the currency for appreciation. So far in the last three months its depreciated about 2 . Thats on the one side. I just got a morning note from wang tao from this import is down 20 and she says it might ull be a little too misleading. Imports do not represent necessarily falling off the cliff. Chinese new year, Lunar New Year nearly upon us. We can expect the next two months all over the shop. Always seasonal distortions. Last year the Lunar New Year fell in february theres still always disportions. This one coming probably latest it ever not ever has but middletolate february. There are distortions. Things happen january and february, unlike other in the year but keep in mind you have consider basis in effect here. And now the economy is weaker and commodity weaker currencies weaker. Steve, thank you very much. Steve engle there. Its all coming against the background of chinas official crackdown on is corruption. Could have ever wider ramifications. And now the fallout could ensnare some of the mather corporations as well. We are mentioning the fallout from the coldings affair here as well. Are we is not it carries on. The casa debt situation, basically it missed the bond payment, coupon payment, came as it was under investigation for alleged graft. We were seeing that at Many Chinese Companies as the anticorruption company continues, what many are saying biggest anticorruption campaign. Or antiopulent campaign here. Thats right. Sales down at casinos, luxury handbags not doing as well. Bigger warning from the ratings agencies is property firms and banks may be nofmente have trouble with debt. Specifically lets look at moodys, nonperforming loans, expect those to grow significantly for property sectors. S p said in the coming months debts will be mature as developers. We reported on the departure of alleged corruption activities. Let move along. Talking about china is elsewhere pushing ahead to plan to ease trading controls. Chinas been trying to attract more sophisticated investors allowing margin trading out there as well. And the shanghai hon Congress Stock connect, whatever its worth. Japan posting sixth straight currentaccount surplus. Helping to push the balance to 1. 6 billion. And helping japan swing back from a deficit last year. And the jut department in the u. S. Is looking into a bank that misled clients under Foreign Exchange products. This according to sources that say investigators have been speaking to recent employees in recent weeks to find out if the bank misrepresented the pricing of currency transactions. Talking about banks under the microscope, hsbc could have helped clients dodge millions of dollars in tax. Picture being painted by secret files that could be the biggest banking leak in history. Sherrys having a look at it for us. What do we know about the investigation taken by the Guardian Newspaper and also the bbc as well as french newspaper. The hsbc has potentially helped healthy holders get around assets, this prepared by the consortium of investigative journalists and theyre preparing reports by a file stolen in 2007 in geneva. They are showing the swriss arm of hsbc held customers withdraw breaks of cash sometimes in foreign currency that could not be used in switzerland. Aggressively market schemes to help wealthy clients avoid european taxes included with them to conceal undeclared bank accounts. The files cover the period between 2005 and 2007 and thousands of accounts holding almost 120 billion in assets. Now the thing is, im sure hsbc is not taking this lying down. What have they said in their defense . What are they saying about the allegations . Not so nch their defense but they have actually admitted to the wrongdoing by the swiss subsidiary. They are saying in the statement they are not accountable for past compliance and control failures. This is the private Bank Division of hsbc, is it not . Right. Private Bank Division in switzerland. Now theyre saying they have taken significant steps over the years to implement reforms and theyre saying that they have dropped clients who did not meet their new, stricter hsbc standards. So what they are saying is those starneds were not applied, hsbc and switzer lapd was now fully integrated to hsbc when they was not fully intergraded and since 2007 they dropped about 70 of their client base in order to adhere to this standards. When we look at the bank, what sort of clients are we talking about here . Who could the bank have helped . Talking about colorful clients, hollywood stars, royal itty, heir to some of the biggest fortunes among entertainers. We have david bowie and King Mohammed vi of mow roquio. Dozens of members of the saudi royal family. Not to mention people who are in the u. S. Sanctions list. Shery, thank you very much, with hsbc here. Lets move to along to tell you what we have on the other side of the break of the tony abbott managing to hold on to the position of Prime Minister but it may only be a matter of time until that is under threat again. Is that really the case . We will held to melbourne for more when on the move returns. A look at the headlines, three more bodies have been found from the transasia accident. And they agreed to implement new rules because transasia already published schedules for january and february. The weekend election in new delhi may show nagin is not envinceable at all. Sweeping victory for kejriwal. 67 surveys say the party is ahead. Kejriwal ran delhi for seven weeks before designing when an anticorruption bill was rejected. He promised to serve a full fiveyear term this time if he wins. The australian Prime Minister tony abbott has defeated a leadership challenge and remains in control of the government. A circle spill motion to have the p. M. Declared vacant but liberal lawmakers supported him and challenge collapsed after just 16 minutes. Abbott had been criticized for series of policy changes and decision towards australia top honor to prince philip. Lets check in on how the shenanigans in australia are affecting the markets. Joining us from melbourne, the chief Market Strategist at i. G. Markets. Chris, thank you very much for joining us. How is this playing out in the trading days there . We probably expect and certainly expected the motion to come through and i think bookies at the beginning of the day had the motion to fail and thats exactly what we had seen. We have seen weaknesses in the australian dollars, but thats down to the poor trade balance numbers from china. We are seeing bigger clients in shorter names on that premise as well. I think the spill motion, where he still have seen a third of the liberal party voting against tony ab o it will not inspire him with any confidence. We are used to political instability in australia, its any wonder why were attracting any foreign capital at all. We have got a political situation akin with probably italy at the moment. Its a difficult situation. A lot of instability. We have not seen too much in the way of client activity or market activity based on the election or vote it itself. Interesting what you said there about italy in the comparison. Lets move to you mentioned also china trade is probably more important sthafment primarily in effect as Foreign Exchange or Mining Companies like that . Aussies it will not surprise you, so sensitive to flows around but whats happening in china there and especially when you see the import levels export levels from china pulling away quickly. Not just the key export of iron, contra buge there and key terms of trade, its not only just the value but volumes coming down as well, which were quite shocking. We have seen the aussie quite sensitive to that this morning. A risk of markets in itself. Aussie yen under pressure. Sterling aussie seems to be the one i like at the moment. Seen a new high coming through there as well. Pushing 1. 97. I would not be surprised to see that up to the 2 level in the coming weeks as well. Aussie is under pressure. We have seen a lot of conduct tivety around the big miners rather than smaller players today. But there is a sense this trade balance number whilst the suris fass improved, its been the result of a terrible terrible import number, adjusted on a headline basis there as well. And as far as the import numbers correlation between australia exports there too. And all of this against the backdrop there . We expect to see more in the market have seen it, hence we didnt see much of a reaction and measuring first and foremost ahead of the i. P. O. That had come out here this week or so. This week into the holiday and Lunar New Year and liquidity tends to dry up as well. Probably more liquidity operations for the reverse repo mechanisms this week. Triple r has come through. Market has not responded too carefully but they will be clearly coming through. I think the currency situation there is probably the most important. We are liked to have seen effects come out. Would i not be surprised seeing strengthening in terps of lower midpoint interesting to see how the market trades that today. Clearly when we have seen weak import numbers before, we tend to see quite a he hefty fix to the down side. I think its the biggest, most important thing in the coming months is especially with c. P. O. Out as well. Amazing payroll numbers and on top of that, we dont have much of a go here in asia as a result of that either. Still got one eye on europe still there, chris. Havent gotten an eye on europe, as a macro trader you probably never will. Greece is stealing headlines again today. Theres a bit of Political Tension in the middle east causing a bit in w. T. I. This morning. Whats happening in greece and political posturing and ramping up and elevating their side of the equation. We all thought the european credit held all of the cards. It seems they have taken this up a notch today. Would i not be surprised to see european markets taking a bit of a beating when they open later on. We have not seen major negative fles in the euro this morning but that situation is one you have to keep an eye on. Floats in actually equity markets have been sensational over the last couple of weeks. Everyone wants to be in that spause because of the outperformance because Everybody Loves liquidity. I think the greek drama has legs to play out and the comments this morning have been talked about by traders on the floors today. Chris, have a fab week. Chris from i. N. G. Markets. Coming up abbott seeing off a leadership challenge but what do these moves remain . Back on the move, it was in contest, abbott easily surviving the challenge leadership from his party. The whole process ended in a little more than a quarter of an hour. Were in canberra. Pretty comfortable. But is it as comfortable as it all seemed . Well, had there been another 10 votes against tony abbott in favor of the spill motion, i think we would be having a rather different conversation. Its worth bearing in mind while tonny abbott did win the day here there are still 39 members of his caucus colleagues who would have been quite keen to see him vacate the position. And vote was also brought forward from tuesday. It was meant to happen tomorrow. Tony abbott keen to get it out of the way and in many respects that would have made it more difficult for his opponents to rally but also will make Prime Ministers question time a lot less farce cal than it would have been. For his parse the Prime Minister keen to get part, the Prime Minister is keen to get on with the job. Heres what he said the liberal party dealt with the spill motion and now this matter is behind us. We are absolutely determined to work for you, the people who elected us. We want to end the disunity and uncertainty which destroyed two latter governments and give you the Good Government that you deserve. People are asking, ok, those who voted against him, will they now get behind him . Will colleagues now present a unified front . The architecture of the spill motion was an interesting one in that it didnt come from the front bench. The person who many thought was heir apparent never once put his hand up in an attempt dwround mine tony abbott. This was the back bench who were a bit worried about what might happen in current polling continues. Crucially some of back bench were getting behind mr. Abbott today. The original spill motion was moved by an m. P. From western australia. Heres what he had to say this is an opportunity now for the Prime Minister to do as he said, change his approach. Given theres no change in leadership, the Prime Minister should be given the chance to move forward. Paul thank you very much for that. Paul allen there from canberra as tony abbott managed to win the spill motion and carries on as Prime Minister. Up next talking about property and chinas sales boosting the property records. Joined by the group chairman, ronnie chen joining us on the move next. A day to drag asian markets way down by economic signals from china and the United States. Numbers game, why more countries are turning their gaps on g. D. P. As measure of growth. And the good, the bad and the ugly. Asia pacific cities stack up in terms of sustainability. The Chinese Market open is nearly upon us. Opening in manila as well. Looking at whos wearing the hats, bulls or bears . Bears are slowly putting on their hats at this point. It was a bit unclear about 30 minutes back but i think we have more clarity now. Thats what happened in the u. S. Friday. U. S. Jobs report. That was brought forward a little bit. Stocks fell, yields went up. Asia looking like this. Japans off the highs of the today. China where hong kong, shanghai man nilia about to get under way now jafment pan erasing earlier gains now. We went 119, a little below 1. 19 at this point. Regional benchmark lower at this point in time. Lets get to the opening numbers. Shanghai composite hang seng index and shares in hong kong. Shang high shanghai is down but coming back to more normal levels closer to longerterm averages. 910 literally low since the night before christmas 2014. Heng seng index down 220, 230 points. Just want to is mention here as well, on shanghai, you have this option of the contracts starting trade today. Dd hang seng its an option that would allow you to pinch against volatility. New tool for you to protect yourself against the worlds most volatile stock market. Han seng index, a few changes announced friday. Ais additional 38 securities starting february 18th that will be available for short selling. Also taking on a few others. I will not go through each one. We would be here all morning. Thats what we have for the hang seng index. Three stocks watching here resuming trade after making a buyout offer for kaiser. 1. 0 is the offer. Profit warning here, they are saying profit should be down 60 . We have m. T. R. Which runs the metro line in hong kong, signing a concession agreement for the metro line. Using it 13 of which is the interexchange station. When they say were just above, you have to get down and walk two kilometers to get the actual line. Thats another argument all together. These are the stocks were watching. Send it back to you, reich. Annex and one of the countrys largest run pg groups and the recent profit record here. Hes here with me now. Whats driving things . Well, i suppose the anticorruption is still very powerful. Is it helping the profit . My profit is hong kong seals. Its hong kong luxury seals, which is going sales, which is doing quite well. How big of an impicture does the opulence sales have . Certainly its baded. I think all of the brands if you look at the result n. China theyre in china theyre not doing well. Developers, rents not rising as much. So it is for real. You managed to maintain pleasant results. Why the choice of that phrase . First of all, we broke records. We never made more than 10 billion in hong kong dollars and this time underlying profits we made over 10 billion. But that said, i think the market condition in the main land in particular for rental of commercial space, for high end retail, is still quite weak and i dont know when we will recover. And thats how you are seeing this playing out nothing will change effectively . I did not say anything will change. You hope it changes. I hope it changes for the better but i dare not say whether and when it will change any time soon. The Hong Kong Market on the residential side and commercial side, doing very well and this is despite the occupy hong kong protest. Did that have any particular impact . The affected areas had sales down by about 18 during the two months or so. We are protected by rents and lees but if we would continue it would affect us as well. I feel bad for the tenants, what did they do wrong . They didnt do anything but theyre just hurt. Did you cut them any slack . Lets see how things develop first, now it is over, surely we will help them do better, marketing and so forth. Since the declaring the protest, have you seen any bounce . Yes, no question thats because during 79 days you could hardly go to certain distributes and buy anything. We have been a major player in both of those districts so we see our tenants struggling at the time. Now that its lifted no question that people are coming back to buy. Have you seen any impact obviously the peg with the u. S. Dollar here in hong kong. Do you have any impact from a rate hike taking place, normalization of Monetary Policy . If were talking about a series of rate hikes in the next 18 months, what can we look at with you . Thats hypothetical but its so low right now. Even a couple of rate hikes i dont think it will do anything. For us, its crazy. The last eight years basically debt free. Net debt, zero. Doesnt hurt us one way or another. You said one of the biggest problems in constraint of growth in your business is lack of suitable managers. Can you expand on that . We are just growing extraordinarily fast. You can build a lot of Square Footage easily but to build world class stuff in the best location world class design, luxury problems, its really not easy. We have been competing 15 more than one new york city Empire State Building per year for the last five years. Thats extraordinary. Another seven years to extract the land back at the same rate. The growth is phenomenal. As much as we have been hiring a lot of people for the last 10 years or so, it doesnt seem to ever catch up. Who are you looking at . What is the ideal candidate . Two kinds of people were looking for. What kind we have done well architects, Program Managers we have done. Hardware and you need software . Software managers, management Property Management in particular. How to run a Shopping Center the size of ours just a million and a half, 2 million square feet is quite an enterprise. Each enterprise can be looked as as a small company. In fact what we have taken per Shopping Center is bigger than most of the total of most of the companies in hong kong smaller companies. So its not easy its like finding the c. E. O. Of a small business. Cannot be that many, i suppose, out there. Many people citing property of the sthree. Equally with residential and commercial yures in being perhaps the biggest head wind for the chinese economy looking ahead. Do you think thats a is false alarm . I think people are overstating their case. No question real estate is very difficult industry right now. But some people go so far to say it will blow up season the bubble is ready to burst. I dont believe so. Then they say its going to be a big draft to the economy. Yes, it will be a drag but its not going to be devastating. Its dragging because 20 of the economy roughly one way or another relate to the real estate. So when youre not building as much as the last couple of years, the whole economy basically is suffering. Ronnie, please pop in again. The trials and tribulations of the chinese property sector is, particular commercial side is up. Lets look at some of the other stories making headlines. Sheers shery. Rating agencies saying chinese banks could be facing more risks after the near default of trouble developers is. It barely avoided missing payments on a bond by selling to the rival holdings. Now moodys and s p said they expect to see an increase in bad loans with several Developers Report weak cash flows. A korean cosmetic maker is enjoying a benefit from kpop fever in china. Amour pacific bets is expecting sales in china to jump 30 as growing middle class spends more money on looking like korean stars. Amour specific plans to increase the number of stores by 15 thrs this year. Hong kongs n. P. R. Is to be part of a Consortium Building a new subway line in beijing. The metro will have 29 stations across three major districts and expected to open in two phases. The new line will be one of four to be constructed in beijing this year. And those are your top corporate headlines it this hour. Up next the labor dispute that shut down much of the u. S. West coast. Its having an impact on both sides of the pacific. That story for you coming up next. Lets check on some of the stories making world headlines. North korea firing shortrange missiles off the eastern coast, the day after state television showed pictures of kim jongun testing the new ship rocket. Coming after a south korea military exercise which peen onyang said is a rehearsal for invasion. North korea said it will no longer negotiate with the United States as president barack obama predicted the regime will, well, eventually collapse. The latest private enterprise rocket launch has been postponed. Space x delayed it minutes before liftoff. A glitch in the radar tracking system caused the delay after last months failed attempt to land the rocket booster on floating barge. It will try another launch later. Chile found the wreckage of a plane that crashed 54 years ago. The d. C. Came down the 3rd of april 1961. All 24 people on board were killed including eight members of what was then one of chiles top football teams. They refused to reveal exactly where the crash site was saying they dont want it to become a tourist attract. Ok, lets look at Singapore Airlines posting four fold jump in profit but not enough to meet what the analysts calculated. Lets get more. Still challenging and this Company Still has challenging days ahead but perhaps less he given what we have seen with the price of Aviation Fuel falling. You know what, not quite,. Search that we saw in q3, its only because it included the earnings of tiger airways, the budget carrier. If you take tiger out of the equation, reesh, it is a different picture, completely different picture. They would have posted a 5 drop in profit and 88 million of hedging fuel the wrong way. That is the issue causing singapore a lot of money. Oil, sixyear lows. On the whole great because it is overall costs like qatar and qantas are willing to remove fuel surcharges but not the case for sing air. Scompens remain high. Its maintaining fuel surcharge. It does not really have a choice. Hedging and competition will put a lid on sing airs earnings. Analysts split on the call. Pretty much split on the outlook. Nine say buy, eight hold, four sell. Credit swiss mcquarry among those saying no. Yes, tough days ahead for the carrier, Third Largest carrier by market value. Well, also lets see how they turn out, maximize the yield here as well as they put it in the business. They plan to introduce premium economy. What are people telling you about the possible success of that move . The jury is still out. Its late in the game. Sing air is late in the game. Lufe anza, qantas virgin, atlantic and a number of other airlines also off premium economy. Its a competitive space. Reviews so far though they are favorable, they say thumbs up. They say you get bang for your buck. Likely to be 20 more than Economy Class tickets but you get a lot more room leg room 38 inches back to 32. More leg room priority checkins, preview your food, book youring coo, some say is this is the cautious premium economy out there. This premium economy strategy will work if sing air gets more economy passengers to upgrade but not if Business Class passengers decide to downgrade instead. We know theres growing demand but the jury is really still out there. Thanks a lot for that. The results for sing more airlines as well. Dispute on the u. S. West coast could be costing the shipping industry as much as 2 billion a day, loading unloading vessels, grinding to a halt this weekend. Dock workers and employers again failing to reach agreement. However another industry could be ben if thing, and i guess, it is the airlines, isnt it . We kind of buried the lead a little bit. Shift to plain shifts. Airlift. Airlifting overall and its costly. 15 to 20 times more expensive than sea transport. But companies saying we cannot afford to divert cargo or risk delay. Costs thrown out the window quick here. We are talked about honda and fuji heavy shipping, airlifting rather, carpark to the u. S. Last week. Fuji saying that could cost nearly 60 million a month just for that air transport. We talked about mcdonalds and japan forced to ration fries. Theyre air lifted. Tons of potatoes to the u. S. As well. Again is this is really helping the Airline Industry particularly in asia. We are talking about cafe pacific and a. A. , much better big than we see in the u. S. If we fire up the graphic, Cathay Pacific compared to cargo flights increase. This should turn that part of the business around there. As you said 24 of sales a couple years ago from the cargo business where as if you look at united 3 . The air freight grow we see in the u. S. There, since december, months after the dispute started west coast ports have seen growth at 21 in san francisco. 16 in seattle. Largest gains in major u. S. Airports. L. A. As well. Two largest airports climbed over 10 overall. That ising something. What about the labor dispute . What are we talking about how far apart the two sides are . How long will this go on for . These things dont come easy or quick these decisions overall. Some say the Freight Movement will collapse under its own weight. But again we talked about 2 billion in loss theres there in terms of the railroad, ocean carriers as well as broader economy. But airlines are saying expect a fwint for up to three months overall if they manage this as well, boost revenue as well as margins. Thank you very much. We will take a break but still to come, behind the numbers. Higher g. D. P. Necessarily translate into Higher Quality of life . Were back on the move, streaming on bloomberg. Com as well as your mobile device. Gross domestic product is what were looking at at the moment. We often talk about it. G. D. P. Is a concept, i suppose, governments, investors and even us in the media obsess about. But should we really be . We are looking at the history of the measure asking if it represents the best measure of a countrys economic health. Deafed english has been looking into this. Hopefully, david you have some answers for us . A little bit of answers. What is it . One number be dubbed to measure everything. Previously to the great depression, they did not have something to look at to get an Overall Health check of the economy. Most of the information was highly fragments. In 1937, concept of having such a measure was born. The brainchild of Nobel Prize Winner simon cuse knit and claimed to capture productivity in firms and governments. Years later you have the first warning of the short comings of being fully dependant on this concept. In 1972 the king declared his aim is not to increase g. D. P. But g. N. H. , Gross National happiness. Despite that, the world embraced the concept and in 1999 it was declared by the u. S. Commerce department as its greatest achievement of the century. Now, 10 years later the french government coauthored a report together with another Nobel Prize Winner calling the end to the obsession or what was then dubbed g. D. P. Fetishism. The following year britain announced on top of the other measures on the economy it looks at it would is also serve as happiness which brings us now to china. The country, of course, g. D. P. Growth on average annual pace of 10 over 30 years in the process, lifting hundreds of millions of people out of poverty, local government officials there were evaluated delivering g. D. P. Growth. But we know the unwanted byproducts are problems china has only recently started to address. Things like this record pollution, corruption and traffic jams. So two years ago 2013 the president said g. D. P. Would no longer be the sole measure of government performance. We spoke earlier in the chief asia specific question and he said indeed g. D. P. Is not enough. G. D. P. Is on this pedestal. Some countries in asia, including china. We want to downgrade it, right. G. D. P. Is kind of a byproduct consumers and households troy to enjoy the fruits of the labor. Its an important number we need for planning and kind of budgetary purposes but we should not target g. D. P. We dont think thats a particularly good idea. Yes, for all benefits and advantages of g. D. P. And measuring its growth or contraction, what is unclear really is how and increase in output is a good measure of everyones welfare, well being and, of course, quality of life. Back to you. Thank you, david ingles there. News from the world of art and stat os fearic price paid for post imis appreciationist painting. Postimpressionist painting by gaughan smashing sales whopping 300 million. Called when will you marry and first painted in 1892 when gaughan was visiting tahiti. It had been own by a swiss collector and media out there say its bought by the royal family. They paid the previous price 240 million record, and that was for a work by saturdaysen. Lets have a break and lets look at whats coming up in the next 60 minutes on this show. Is who is set to benefit when crude bounces back. We are putting that to the head of asias oil research. On the move returns in two. Held to account. The swiss union accused of helping rich clients avoid tax. Bloody, unbound. Abbott wins the leadership challenge. Questions remain. Oil on the up. For the Third Straight day. Chinas official crackdown on corruption may have ever wider ramifications. The s p warning the followed could ensnare major corporations. Lets bring in zeb, with more on the followed from case a kaisa holdings. The big story involving them also involves sunac the shares are surging and they will make a buyout offer for kaisa. Sunac and kaisaa in focus because it missed coupon payments. It had won and saturday. That deal has been on the cards for a while. It has. The company says it will seek to retain its hong kong listing for kaisa. It has come to the brink for many of these firms with their debt, possible default, coming to the brink after an epic investigation. That is what the ratings agencies are warning about. For kaisa and the banks, at risk for possible default because of ongoing corruption investigation. Just look at a chinese bank last week, the president regina resigned. Property firms key to this according to s p, have weak cash positions. Lets find out whats going on in the markets. Lets see what is happening as indonesia comes online. David . Jakarta hitting a record high. Closing at a record high. A bit softer now. It could really get warmed up. When you look at the philippines and jakarta, these have got strength. Movers, up and down. Manila, and you have the same measures, mentions of trade slipping out in jakarta. What else do we have . We are looking at imports. The trade data over the weekend, what surprise a lot of people was this huge drop in imports. We were down close to 20 . A lot of it is seasonal lower base of effects, plus a drop in commodity prices. A lot of things china buys the values have brought down. 20 drop. Not as strong domestically across china. A fifth of 1 , nine out of 10 that we are seeing red in shanghai. You are seeing green in shanghai. Placing index, a strong run last week. The current see space, and upward in version of the figure for december. Simple. Dollar index big spike. Yields spiking. Dollar index, 94 58. This is mostly a reversal of the weakness a cross some of these. What do we have . 11321, higher for the euro. The dollaryen spiked. Let me end with the dollar, we are close. Up 7747. The highest in 13 months. What did david bowie, drug lords and arms dealers have in common . They are may have helped millions of dollars dodge tax. We know that david bowie is featured there. Here he is a swiss citizen and had an account at a swiss bank. He is not accused of wrongdoing. Other people were featured there. He is just one of a long list of clients that the eight hrc helped. A report based on leaked files shows that hsbc helped wealthy customers conceal assets and advised them on how to get around tax authorities. Hsbc engaged in allowing klein clients to with draw bricks of cash in foreign curtis currencies. They helped clients conceal black accounts between 2005 and 2007. Thousands of accounts almost 120 billion in assets. What is the banks response to the allegations . They have admitted to wrongdoing. They are saying that they had knowledge and are accountable for past compliance and control failures, saying they have taken significant steps over the past year to implement reforms as well as drop clients who did not meet strict new hsbc standards. They are saying that they were not fully integrated into hsbc after they were purchased in 1999. Since 2007 they have cut their client base by 70 in order to adhere to this new stricter standard. Thanks. Looking at other headlines, the ubs could find itself in trouble with regulations. Whether the bank misled clients over a Foreign Exchange product. This according to sources, who say investigators have spoken to several employees in recent weeks. They are trying to get wet whether or not the bank had anything to do with pricing. Jpmorgan is under scrutiny. U. S. Authorities are looking into the hiring of the son of the Chinese Commerce minister. He was hired despite bad job interviews. China is pushing ahead with plans to ease trade controls trade equity linked options for the first time today. One help investors manage risk in the worlds most volatile stock market. It has been trying to attract sophisticated investors by allowing shortselling and margin trading, caused by the introduction of the shanghaiconcord hong kong stock connect. In the end, it was no contest. The australian Prime Minister surviving a leadership challenge from colleagues. The process ended in a quarter of an hour. The report now, it wasnt that comfortable, was it . No it wasnt as comfortable as tony abbott would have liked. He still has 39 members in his caucus who didnt want to see him as leader. He does not know who those 39 were because, of course, it was a secret ballot. He played his hand smartly to the Prime Minister by bringing the vote forward to today. It was meant for tomorrow. He had to do it today, otherwise the first parliamentary sitting a beer wouldve disbanded into chaos. By holding it today, it gave his opponents less time to get organized, and probably helped him out to a handy 6139 margin. Now, he wants to leave all of it behind. The liberal party has dealt with the still motion, and now this matter is behind us. We are absolutely determined to work for you, the people, and we want to end the this unity and the uncertainty which destroyed two labor governments, and give you the Good Government that you deserve. Does this whole question of leadership go away . He has won the support of his colleagues for now. It was an interesting challenge. It did not come from the front bench. There was no formal challenger declared. This was driven by the back bench. Especially after what happened in queens land, where voters rejected the liberal party government, and for a single term that was one of the most unprecedented Election Results in history. That may make them a bit concerned, but the federal government was drifting in that direction. The motion was brought by the backbench mp and seconded by another backbencher. Here is what he has to say this morning. This is an opportunity for the Prime Minister to change his approach and given the fact that the party endorsed no change in leadership, he should begin a chance to move forward. What does this been paul for the senior government figures . As i mentioned this was driven from the backbench. Nobody knows which of the cabinet colleagues supported him, and which didnt. The important thing that will happen next is, the budget, which is coming up in may. This will be an opportunity for both tony abbott and t to win back the support of his own caucus, and also the public, who was starting to drift away from the government. And we look at recent polls, the labour party, the opposition, up to 57 , well ahead of the liberal party on 43. Tony abbotts rating dipping into 30 percent, low indeed. The Opposition Leader is off to a handy lead at 48 . Tony abbott and the treasurer must use this budget to win the public back. They probably have another six months before the leadership question arises again. Otherwise, with or with whether or not we see the knives put away for good. Paul allen joining us from canberra. Next, crude is maintaining the gains we saw lacks last week. Who is set to benefit, next. Now, world news headlines. Three more bodies recovered from the transasia crash site, bringing the number of victims to 38. 15 survived, five remain missing. It is been revealed the transasia wanted a delay in the minimum time required for preflight checks. China agreed to implement new rules in march. The weekend election in delhi showed that the Prime Minister is not invincible after all. A sweeping victory for the anticorruption party. Official results on tuesday, six of seven surveyed say that the party is ahead. He has promised this time to serve a full fiveyear term if he wins. The new greek Prime Minister has outlined his plans to recover in a speech that puts them with a collision course with the countrys creditors. Tsipras appealed for a bridge loan, after it became apparent that they would run out of cash. Alan greenspan says a greek exit from the euro is a matter of time, because no one will risk lending them any more money. Lets get back to the markets. Oil entities to climb. It is reaching a stable equilibrium. Thomas havel is with us now. Thanks for joining us. Lets talk about about what is going on. We saw that rapid move down. We have seen quite a move up again. Has the game changed . Have we seen 45 oil for the last time . It is difficult to say right now. We are starting to see significant changes in the rig counts in the United States. As well with lower prices, we may start to see demand take up, as well. What we expect is quite a long grind higher over the next 34year. Getting back to the 90100 level by 2018. As far as 2015 whether or not we have seen the bottom depends on the data we will see consecutively over the next couple weeks. We still have an moved havent moved in a straight line. One of the things well watch is common today in the u. S. , the ia will release drilling productivity reports. This gives us insights into what is going on in the title of production in the u. S. Shale . Yes. That is crucial. It is. Opec production numbers are continuing to be quite robust. It is really two different sources of supplies. North american incremental supply and opec supply, including production from iraq. And chinas Strategic Oil reserve. How big a factor is that in this . What is interesting about that is, the National Energy administration get gave us disclosure. They completed phase one to about 90 . There are two additional phases. I could add 501000 aerials per day barrels per day. There is incremental demand but we do not think that will have an incremental price impact in 2015. One thing we are watching in addition to these supply numbers out of the United States is, what will happen with demand. Whether or not low prices are actually stimulating demand enough, in order to help restore the market equilibrium. And create a virtuous circle. The other thing we have seen in terms of damaging the volatility, is that futures exchanges have increased the reserve requirements and margin requirements on trading futures. That has had helped to dampen volatility. Lets take a look at the companies we covered in asia. Who will be the main beneficiary of the Higher Oil Prices . Will it be the refiners . The upstream people or downstream . We are still feeling residual impact across all segments of the industry upstream, refining and chemicals, downstream businesses including gas. Until we trough out there will be pressure on the earnings profiles of these businesses. For our recommendations, as it relates to china, we have upgraded to neutral recently. You are underweight petrochina . Thats right. With their heavy upstream exposure these governors will feel a burden as we move through the 2014 reporting season of the first half of 2015. Then, the comparisons get better. They should, as we move through. Particularly, what we focus on with regarding to sinopec they have raised a significant sum of Equity Capital from the sale of their marketing business. They have incredible financial strength from that event. They have a massive amount of inventory. It hurts them on the downside, but as we pivot and move higher, they should benefit significantly in their downstream businesses. I will assume all are two oil companies. Some people are not willing to invest. Is that one part that you just stay clear of for the time being . There are different aspects to that. The onshore Chinese Service companies are in a difficult space. In large part, because of the National Oil Companies seeking to direct all of their investments to their captive companies. That means, for the independent businesses, they are challenged in this environment. In the offshore space, there is actually a captive relationship between sena and its sister company. They are well looked after by the system. What is the National Price for oil . Is it impossible to answer . The cost curves are moving quickly as the price changes. A Significant Energy import, you are producing oil, and the prices come down. As the price of crude comes down the price of products come down. The price of natural gas comes down, the ability to produce oil with lower expense structures, has improved. We need to digest the price action we have seen and get a new sense of where the cost curves reside now. We think the longterm equilibrium prices higher, and that is in part because of some of the changes weve seen in the Capital Spending budget and the way the companies have adjusted their spending to the new environment. As we move through time, that will have an impact on the available supply, by reducing it. That should help to restore a higher price equilibrium. Thanks, john. Thank you. Lets move along, about what we have on the way. Shipments of cottage cheese and potatoes are traveling firstclass from the u. S. To asia. That is next. The labor dispute on the u. S. West coast could cost the shipping industry 2 billion per day. Investments are grinding to a halt. Doc workers and employees failing to reach an agreement. Another industry is benefiting already. If on is here with companies who are prepared to pay to airlift cargo. Overall, these bigname factories are saying, we cannot afford to do a diversion with the cargo. We cannot risk a delay. Some are saying, airlifting is the cost of it will be less expensive than shutting down production lines. The companies are saying, we cannot stop our factories. Over the weekend, you can see the ships that are grounded. Not doing too much at all. That one is moving. In terms of the air cargo global air cargo volumes tripled last year compared to 2013. We talked about Companies Like honda and fuji heavy and subaru airlifting their cargo since the dispute started. Air shipment costs 1520 more than sea travel. Asian airlines really taking advantage of this. Cathay pacific, ama cafe pacific, there to great their freight comes from has been weak over the past 12 months, responsible for a bit of a sag on earnings. When you take a look at the opportunities, look at air freight growth in the United States. The three big ports on the west coast, productivity down as much as half since may. San francisco, seattle, the largest gains are in major u. S. Airports. L. A. Climbs 10 . There is opportunity for airlines to take advantage. Lets take a look at how long the dispute could go on. It wont be a quick or easy process overall. Experts say it could take three months. Airlines could benefit if airlines manage things well, it could boost revenue and margins. Thanks yvonne. After the break, the latest private enterprise hit by a problem. Spacex delayed the launch of falcon nine because of a glitch in the radar tracking system. Another blow to spacex after last months failed attempt to land a rocket booster on a floating barge. They will try another launch later. Coming up, turnaround time after trans asia delayed new safety rules and taiwan. This is on the move. The safety of the trans asia plane spent 20 minutes and turnaround before the tragic flight. From hero to zero, the rule over the montco mongolia economy. And, how asian cities stack up in terms of sustainability. Three victims of the trans asia crash remain unaccounted for five days after the crash. The airline succeeded in delaying the introduction of safety regulations. We are covering the crash. Tell us about the new regulations. How did trans asia get around them, if they did at all . High. Hi. Trans asia asked for a delay in new regulations that the civil asian Aviation Authority in taiwan and lamented last month. The reason they gave was they had arty published schedules for january and february. The caa in taiwan agreed they should be only subjected to the new rules from march 1. There is an ongoing safety review, isnt there . As you would expect. What does that involve . When that happened over the weekend on friday they mandated retraining and testing on all pilots that trans asia has him the books. What this has resulted is, the cancellation of 22 flights over four days from saturday through tuesday. Also, they have plans for the pilots to under gore undergo more flight simulation training. Clement, what information do you have . I think the search is focused on finding the three missing, the three who are unaccounted for y. Relatives are arriving there has been briefing on compensation, and the investigation is ongoing. They released data from the flight recorder on friday. We can expect more information this week. Thanks clement. That was the latest on the trans asia crash. If your money is behaving itself lets take a look at david with the pulse of investor sentiment. If you were to describe what we are seeing today, it is an extension of what we saw from wall street on friday. Three 4 10 of 1 drop across major benchmarks. Fairly important, you have current accounts. Surplus . Yeah. Current accounts. Balance of payments. There we go. Japan the philippines, the only markets right now that are higher. Lets dig deeper and take a look at what is happening in australia. We are down to half of 1 there. A lot of the stocks are trading on shortterm moves across these contracts in the commodities space. One example, oil and gas. Up for the Third Straight day for oil. Both u. S. Crude and raw. Down to 1 on mining stock. Gold prices, a sharp drop on friday. Something like 35 u. S. Dollars per ounce. It is fighting back right now that weighs on sentiment. The big mining names in australia. Other corporate stocks we are following, there we go. And sell fairfax westfield. Maintaining the fullyear forecast, falling the most since 2004. They are selling their entire stake in Fairfax Media according to the National Review this morning. Their shares are plunging. Westfield are down to what a half percent. Triple b plus. A simple one here, the three biggest gainers in japan, all reporting impressive results. I think these are those chocolates. Southeast asia, quickly, biggest gainers and losers. Hutch port down 5 . Dividend guidance below expectations. Singapore air helped along by the stake in tiger air. A 20 return. We have seen the stock upside. It is limited. Manila up 4 , record after record. A special dividend declared this morning. That is what is happening in the markets. Lets take a look at mongolia. It is slumping. It was once one of the Fastest Growing economies in the world. It is now one which is pleading for a helping hand. The delegation from the imf is and how discussing how to get things back on track. What is actually on the agenda there . The imf says policy reform in an economy which is described as fundamentally inaccurate, the mongolian government is planning new measures to minimize effects of down turning commodities and ensure a sustainable path to prosperity. The Prime Minister wrote, in regards to implementing policy reform, we would like to hold formal discussions on possible cooperation with International Monetary funds. Lastly, the government to giusti built that focused on overcoming a economic difficulty. Mongol bank doesnt say there is an urgent need to implement bailout programs with International Financial organizations in the current economic situation. But, there are needs to closely cooperate and discuss policy reforms with international organizations. Policy change will focus on restoring mongolias reputation among Foreign Investors by stimulating projects including the second phase of the gold and copper mine. Documents say the government plans to begin the second phase in the second half of the year and it expects Foreign Investments up by more than a billion dollars by 2016. This will have to pastor parliament before becoming law. With the policy reforms actually be enough to restore growth . Besides the recession we have seen in mongolia, and the collapse in the currency value, there has been market direction. Mongolia has been forced to import less. There is a positive trade balance for the first time in a listed decade. The Federal Reserve stands at 1. 6 billion u. S. Dollars, enough to satisfy imports for five months. The Prime Minister is expected to find a partnership in agreement with japan. Until then, technical meetings focused on updating the main economic and it indicators are set to take place. Trying to revive growth. So len singapore have taken top honors in a new report on the worlds most sustainable cities. But hold the champagne, they are home to some of the worst performers. Why hong kong is getting a cheer while jakarta is getting a thumbs down. Jakarta has one of the fastestgrowing urban populations in the world. According to consultants, the city is not keeping up. It ranks jakarta 45th in sustainability. Jakarta is relative to air quality and literacy, among others. Clean water, especially in slums, nearly 40 of households in jakarta do not have access to safe water for cooking and drinking. Under the president , the goal is for all to have access to clean water by 2019. A goal that will cost nearly 58 billion u. S. Dollars in the next five years. Hong kong made it the top 10 in the rankings. Coming in at number eight. The city is often dismissed as an urban jungle, but actually it offers the greatest percentage of accessible green space of all the cities in asia, according to the survey. Hong kong also scored well in an education and life expectancy. However there is poor worklike work life balance. The soaring price of property is a major factor making hong kong and expensive place to live. A look at some of the other stories making headlines. Here is sherry and. Chinese banks could be facing more risk after the near default of troubled developer kaisa. They sell a bond to a rival, and s p says there may be an increase in bad loans. A korean cosmetics maker is enjoying a benefit from k pop fever in china. Amore pacific owns lanege and others as the growing middle class spends money on looking like korean stars. They plan to increase the number of stores in china by 15 . A new subway line in beijing. The metro will have 29 stations across three major districts and they are expected to open soon. The will be one of four in beijing. Tony abbott manages to hold onto his position as Prime Minister. But, some say it is only a matter of time until he is under threat again. Well be live in melbourne with more. That is the Prime Minister on the vote that went straight to the australian capital. Not just Public Service created, but the i want to harness all the creativity and insight that this party room has to offer. [inaudible] obviously been a center of controversy. Has she offered to resign for the cause of unity, and will she stay on and will roll, if she does, be changed . All of us have had a good, long hard look at ourselves over the last few weeks. Obviously it is been a difficult time for our country. But, it is been a particularly difficult time for the government. Particularly with the i suppose, nightmarish results that ellen got in queensland. We have all had a good look at ourselves, and all of us are resolved to be different and better in the future than we have been in the past, and that is true at every level. Me, my colleagues, my ministerial colleagues, my senior staff, we are all resolved to be and do better. One of the reasons many of your colleagues feel needs to send you a signal, is because of the conflict and interest involving staff and the federal director. What will you do to resolve that specific situation . That specific situation has been around for five years now. It certainly didnt stop us from having a very good result in the 2010 election. It did not stop us from running a strong opposition from through the last term of the parliament. It did not stop us from getting good results in the election. It did not stop us from doing a lot of good things last year whether it be stopping the boats, repealing the carbon tax, getting agreements negotiated. I say to people, my door is open. I am available to people. If they are anxious about talking to person x or person y , they can talk to me. You have confidence in your senior ministers . The point i make is that this has been a chastening experience, obviously. A very chastening experience. It is not often that Something Like this happens, 68 months in the life of a government. That, we have had some headway. Im not complaining, because we take the world as it is, not as we would wish it to be. The senate, obviously, has been difficult. The attitude of the opposition has been obstructionist to say the least. Obviously, there was a difficult result in queensland. Who wouldnt be nervous after watching the result in queensland . All of us are determined to live lift out the solution of all of these things is Good Government. Good government starts today. Good government starts today. Andrew . Firstly, what structurally it structural and procedural changes would you make to your office . Secondly, do you have a secret deal with shinzo abe for japan to support parts of a submarine because people within industry wonder whether this is why, rather than talking about tender you are talking about a competitive evaluation process which is different. There are no secret deals. Obviously, we want to get the best possible submarines at the best possible price. Obviously, we want that. We want australian submariners to put to sea in a world class submarine. It would be responsible if we sent our submariners to see in something that was not capable of taking on whatever others could throw at us and hoping to succeed. We want the best possible submarines at the best possible price, but we also want the best possible bill for australia and the competitive evaluation process that i have spoken about is exactly what you would expect from a government. It is exactly what you would expect from a government. Now, it is possible, maybe even likely, that there will be an International Partner when the subs were built, there was an International Partner there. We are talking, not just to the japanese although we are certainly talking to them. We are talking to the french, we are talking to the germans, that is what you would expect. Now, as for my office, as i said, i stand by my colleagues. Whether they are parliamentary staff colleagues but do i say everyone of us is perfect . Absolutely not. I dont say that. Do i say that we can improve our game . We all need to, after Something Like this. Im absolutely confident that that is exactly the message we got from the australian people, they expect government at every level to be focused on their concerns, to be focused on them not on ourselves, and that is exactly what im determined to deliver in the weeks and months and years ahead. Thank you. Tony up at, taking questions from the press about the victory in the socalled liberal party spill. Is he sick here, or he has he been weakened in the eyes of the party of the voters . We have political scientist here, thank you for joining us. That is the question everybody wants to have answered. Is it a question not of, if it can survive, but how long . That is the real question at the moment. Traditionally, it in australian politics, whenever we see these sorts of internal agitations and problems come up, the Prime Minister survives for a matter of weeks. What we see this time around, is a bit of a stronger move by the Prime Minister to seduce to assert that he has changed his ways and his approach. Rather than a fatal blow to to his leadership, this is something that will strengthen his leadership in the future. That remains to be seen. Opinion polls will play a major role in determining the fate of mr. Abbott in the next few weeks and months. He said Good Government starts today, in that conference. That is an admission that he has been in charge of a bad government thus far . You sometimes questioned the choice leaders make in terms of the words they use. I think he makes an important point. The previous 16 months have been difficult for the first turn government. They have struggled to introduce the budget and get through a number of important budget measures through the upper house the senate in australia. What he has taken this opportunity today to do, is really, to reinvent himself as a Prime Minister not so much concerned about the economic the economy, but also about social policy. In the longterm, this will be a very important point in tony abbotts Prime Minister ship if he survives. Can he pull it off . Polls, at the moment, suggest he can. Suggest he cant. It will be not long before the back benches become nervous and start looking for someone else to lead them to victory. That said, todays result was a third of his party moved no confidence against him. He still enjoys two thirds support within his own ranks. Again, time will tell. Once these polls dont go anywhere, if they go further south for him, if they become worse, that is when i think 39 members will start to grow. They will probably get a majority in the longer term. One persons name is conspicuous because of its absence. That is the name of Malcolm Turnbull. Where is he . He seems to be a charismatic and likable person by the broad australian society. If we look at the polls, and this has come out as a feature of australian politics, mr. Turnbull is wellliked by the majority of australian voters. The problem for him is, he is unlike by his own supporters. Tony abbott enjoys majority support when asked about who liberal mps would rather have represent them. He is a figure who is lurking in the shadows at the moment, and he seems to be the next leader in waiting, but will there be an opportunity for him to become leader . I think that is unclear. It may be a case where he has to make the move to become leader. He was liberal party leader in 2009, tony abbott defeated him in a battle with one vote, back then. Certainly, mr. Turnbull still has leadership aspirations, although he may not save them publicly. He may not be popular with the liberal rank and file. Parliamentary liberals. Do they then, given a play, two plays, will they continue with tony abbott and lose your seat, or you can have him replaced im Malcolm Turnbull . They sure would. Todays result really has not shocked a lot of liberal mps but having an opportunity to cali yield at moment, Prime Minister has for some time before the backbench starts getting restless. It will be a matter of this month. If they can have a successful parliamentary month, if they are unable to negotiate deals with the Prime Minister and have a much more consensusbased approach to politics, then his position might be safe. If not, if things keep on going south and whether mr. Abbott likes it or not, i think turnbull will make a move. Takes for joining us thanks for joining us. Tony abbott giving a News Conference after that close vote where he did retain the confidence of his Political Party in canberra. That is it for this mondays edition of on the move. We will recap the big stories of the day so far, joining us will be mark tinker, you are watching bloomberg. Asia edge is next. It is the middle of the asiapacific trading day. We are live and this is asia edge. Crude maintaining last weeks gains. Weak data from the u. S. And china bringing down equity markets. Hsbcs Swiss Division is accused of helping. Tax rate helping dodge tax. And have it survives. Coming up this hour, x minus m may no longer be the formula for the growth that countries pursue at all costs. Plus, the good, the bad, and the ugly. We are going to take a look at sustainable urban living in the 21st country. Which asian cities would want it and which get the thumbs down . And hubert and cottage cheese go first class. Find out why consumers on both sides of the pacific might have to pay a little more. All that and more in this monday edition of asia edge. Im keeping my eye on the markets as we kick off the new trading week. As you can see, most of the region in red for the first trading session. Spooking