In the morthm asian Stock Markets fall after wall had its worst Trading Day Street had its worst trading day this year. A steady result for new Zealand Dairy giant viterra. We will hear what their Chief Executive has to say. Fonterra. Good morning asia, hello world. It is wednesday. Great to have you with us on Asia Business report. Rico hizon. Stocks are retreating following us stocks lowering today. Here is what they are doing. The nykea is down by 332 points. And the all ordinaries is giving up 75 points, that is 1. 3 . Us markets had the worst session of 2017. Nikkei. It is the us markets had the worst session of 2017. Nikkei. It is the first decline of at least 1 since october last year. Decline of at least 1 since october last yea r. Investors decline of at least 1 since october last year. Investors are nervous that donald trump will not lower taxes and push through with the socket layers. I asked Market Strategist Mike Mccarthy ifjitters in america would further in that regional market. The market was rsaignalmarese ~ Set Upa Rsaignalmarese ~ set up a bit of a sell off. We ready set up a bit of a sell off. We are looking at stretched valuations in the us and a maximum amount of optimism about the new efifiiifiiisflzesfififiii optimism about the new ;; i iitee¥ififiii ability optimism about the new ;; i iitee¥ififiii ability to similar administrations ability to similar the economy. That means we are seeing good support to equities, and here in the asia pacific region. So although in 3,315,314. , here in the asia pacific region. So although in 41. terms, i and Share Markets are embassies and Share Marketsare healthier than the us, if we looking healthier than the us, if we get a short term downdraught in us shares, that is likely to drag us 5 in the shares, that is likely to drag us ;. In the short term. shares, that is likely to drag us g; in the shortterm. Which i down in the shortterm. Which particular markets are healthy and asia . In particular in valuation jew9. 5. 7. Asia . In particular in valuation is . Of asia . In particular in valuation {era of the asia . In particular in valuation {era of the Hang Seng Index looks terms of the Hang Seng Index looks very we are also terms of the Hang Seng Index looks verye are also seeing very strong. We are also seeing Strength Markets very strong. We are also seeing Strength Markets like india strength across markets like india and indonesia. And those highly in trade china. So engaged in trade with china. So overall, the outlook is positive. Japan the they japan possibly the exception, they are. But how concerned. Asian are. But how concerned are asian investors now that the fed could still raise the cost of borrowing still. Raise the zest ow and maybe stitt reise the test ow and maybe once or twice before the end of the year. This end of the year and this economic protectionism . End of the year and this economic f rotectionism . End of the year and this Economic Programme protectionism . As always, people can treat these in different ways. They can respond to be signalled that the reason rates be signalledthat therreasen rates are is because 7 eg is 7 eg fee; 5 7 eg telling your clients right now . You telling your clients right new}l you telling your clients right now}l the asian market landscape, given the asian market landscape, how should they respond . For a start, volatility is very low. That meant Option Prices are cheap. Investors are taking on one sided Risk Profiles using options. 0thers are taking a daily to the fact that markets are very about picking markets are very much about picking the right stocks at the moment. I ttt ee in the right stocks at the moment. I tihe in key, high quality stocks, like in key, high quality stocks, and investing in those, regardless of their outlook in the countrys what about mr trump following index. What about mr trump following through on his threat to eventually index. What about mr trump following throw china 115 threat to eventually index. What about mr trump following throw china as threat to eventually index. What about mr trump following throw china as a |reat to eventually brand china as a Currency Manipulator . Udinese will ever materialise . It is one of the keath is that asian investors . It is a concern. is that asian investors . It is a concern. Key fears. Behind closed doors, there is a clear message being delivered to donald trump that when your own Federal Reserve has pumped more than 3 trillion into the currency system, to label anyone the eurrefiee eeetem te leteel emeefie the eumefiee eeetem. Te leteel emeefie as the eurrehee eeetem. Te lehel eheehe asa the eurrehee eeetem. Te lehel eheehe as a currency manipulate is else as a currency manipulate is fraught. This could hurt not only this gig fraught. This could hurt not only this 215 but also fraught. This could hurt not only this 2 5 but also the us economy. This region but also the us economy. Call ahead might prevail when it comes to the heads up on this issue. Cooler heads. Comes to the heads up on this issue. Cooler heads. New Zealand Dairy Giant Fonterra said its net profitability after tax rose. This Isa Profitability after tax rose. This is a steady result for the Worlds Largest exporter. Is a steady result for the Worlds Largest exporter. But its Largest Dairy exporter. But its high value products like butter and yoghurt have delivered strong returns. The company has also shown returns. Thecomoanyhas alseshewn. Strong growth in the thai . Market. Strong growth in the chinese market. Strong growth in the chihese market. I spoke to fonterras chief earlier, i spoke to fonterras Chief Executive and asked if it would be a Tough Yearfor the executive and asked if it would be a tough year for the compa nys shareholders. No, it is going to be a strong year, because that is all on the back of 54 higher milk prices. So the 54 higher milk etiee Ee Theeeehuehwmwe Prices are at translated Author A Of Goods sold. So we are cost of goods sold. So we are deliverig more net profits. In that delivering more net profits. In that sense, when you look at cash mm to sense, when you look at cash cows to oui sense, when you look at cash cows to our farmers, sense, when you look at cash cows to ourfarmers, this is a significant step up from the last two years. For oui step up from the last two years. For our cheryl does, it is good news. G did you then downgrade your why did you then downgrade your full yeAr Earnings Forecast . Why did you then downgrade your fu all, Ar Earnings Forecast . Why did you then downgrade your fu all, like arnings forecast . Why did you then downgrade your fu all, like last|gs forecast . Why did you then downgrade your fu all, like last year, ecast . Why did you then downgrade your fu all, like last year, around this of all, like last year, around this time, we decided to not focused too much on earnings, but to go to time, we decided to not focused too much oni last rnings, but to go to time, we decided to not focused too much on last zit we itto gortor , , 77 dividends. Last year, we announced oui dividends. Last year, we announced our Half Year Results i we would our Half Year Results that we would get 20 cents dividend half year, and we forecasted ten plus teru c get 20 cents dividend half year, and we forecasted ten plus ten. So get 20 cents dividend half year, and we forecasted ten plus ten. So a0 we forecasted ten plus ten. So a0 cents. Now we are forecasting a0 cents. Now we are forecasting a0 cents. I in that sense, it is a fee ht qeebkhztftnfz hrf 7 similar result in
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