New zealand this morning expanding in early asian trading. It is down 1 . 20 is your level there. We are also counting down to the opening of japan and korea. Closed one25 last point nine percent down at the 15 391 level. Is going toe it drop precipitously below that 15 thousand mark. That is according to futures trading in chicago. That is continuing to see the most inter the endgame four months. Investors very sensitive at the moment. We are poised for a rocky session in asia to start off the week. Most indications are pointing to a selloff across the region. David dingus is here to tell us why these red arrows continue to dollar yen. This highlights the flight to safety. There is a flight to safety in currency and sovereign bonds. Onyou look at what happened wall street on friday, it does give an indication that theres going to be blood in the streets in asia today. It will not be a pleasant session. Have the fomc decision coming up. You have possible contraction in chinese manufacturing. We have the wall street 2 declines. The index forced the measures into future volatility. The gauge market fears spiking 31 . Ask is a level where we betweenbetween act the government shutdown. This is the highest level in several months. It trades in chicago as well. Futures of different trading of course. Sentiment as he moved toward this. I want to look at argentina and turkey. Risk aversion. S argentina compares at 17 . They did devalue the currency as well. A lot of people will mostly be confined in argentina. Capital markets am not really been open to the Financial Capital markets. The more systemic risks are comingfrom to be are from turkey. Whereast week, a decline were at 35 over 12 months. Turkey, andwith this is a reflection of what could happen elsewhere. Is a structural issue. Just the amount of debt that is in foreign currency. And makes it more exposed. More exposed to fluctuations. They do not have the war chest of foreign reserves. The hedge fund you are looking at that. It could be a good trade. The question is what is going to happen in asia specifically . We were talking about the japanese yen. It is going to be a Foreign Exchange. The stock markets will see declines. Perhaps a second level system. We will see first the flight out of emerging markets. Lets take a look at bond yields. I talked about flight to safety. The 10 year japanese bond we are at 60 three basis points. We had 10 year 370 two basis points. The yield spread is also narrowing. Markets, there is a separate measure for emerging markets. That is also trading. That spike the most in two years. 40 over thewas up past week. Vix index onally a the emerging market etfs. It is the sentiment on emerging markets. Suspects will be watching closely. Yet india. Yep indonesia. Is current deficit account countries. It is really more of an excuse. A rating across the board. Yet hungry. Brazil. Russia. Take your pick. Mix. N thailand in the all of this started after chinese the manufacturing numbers in the Market Economics showing contraction and definitely more than what people had expected. Anditivity to the market people looking at china for a trigger point. A couple of days in now. Thank you so much for that. No trading in sydney. Markets are closed for the australia day. Of the firsthe day british ships to arrive in the country. Violence has returned to the antigovernment protest. The man shot dead in bangkok. It happen as demonstrators tied to disrupt early voting for this saturdays election. Lets bring in house linda on men. Has this worked out on how this will go ahead . You are right. The commission is repeating the call for a delay. These reflect what will happen on february 2. Men one man was shot in bangkok as he called on protesters to disrupt early voting. They were reported at point across the city. The unrest forced the closure of most polling stations in bangkok. Were high as wouldbe voters saying that democratic rights were being infringed. Sayslection Commission Voting went ahead largely unimpeded. We heard from protest leaders. He said the Government Campaign will continue until promising of the election. Meet with the Election Commission tomorrow to talk about a possible delay. Said the polls will go ahead and go ahead. 90 of the country unaffected by the protests. A lot of people are ahead of the Chinese New Year and a lot of people not going to thailand because of the extent of his violence. Do we know how much these are starting to hurt the crucial Tourism Industry . And has been affected in a huge way. Especially since the protests are happening near the lunar holiday. Revenue loss could amount to 685 million. Russian visitors canceled their trips. And this monthon alone. It translates to 30 occupancy for some hotels in blood cells. But so what there was a prolonged protest. This relies on the industry, the only bright spot lawsuit. Sluggish investment. A slump in tourism which will worsen the Growth Potential. Thank you for that. The governor of the bank of england is said to have urged the worlds top bankers to show restraint over better conduct. He held private talks with of banks. They have seen the reputations heard by a string of allegations that they manipulated Interest Rates and exchange rates. Beclays is said to considering blowing the whistle on the sponsorship of topflight english football. They think the premier league deal has zero value in the u. K. The runs until the end of 2016. It may pull out of the glamour project. With results. T profit likely fell 40 pure this for the final nine months of last year. The report says Business Travel declined while the weakening yen drove up the price of fuel. An hour away than from releasing its trade data for december. The numbers, policymakers are left with the threat of the last decade. Deflation. John dawson is here with a preview. What can we expect . Row for 2013. It will be a record figure of ¥11. 4 trillion. The 6. 9. Well above, it the deficit of 2012. This would be the fourth largest month on record. The larger stretch of records. This gets the Power Generation going. Certainly getting the trade deficit. Is is a crucial one to look out for. Forecast for the month of december is ¥1. 26 trillion. To take a look at exports. They will skew the results a little bit. There other releases that we should be looking out for. You mentioned imports for december. 22. 6 . Exports 18 . You have december minutes. They left everything and change. Inflation was talked about. That was amazing. They expected all to come out. To think they had a shot out . I guarantee they did. We will see it in a minute. John dawson. Thanks for that puritan big guests coming up. Were going to take a look at the rising concerns over emerging markets with the asia chief executive. He will be here in about 30 minutes. Later on, house was luxury band is weathering the excess and china. That is on the move and just a couple of hours for now. On this show, the tumble ahead. Is it justified . We will speak with an economist after the break. Welcome back. It is monday morning. Thank you for joining us. Lets take a quick look ahead at 70 main events. After earnings disappointments for samsung and hyundai, this is the next korean heavyweight to report results. That is out today. They will be looking to revamp her loss that came from the stress of the one. Policy makers meet tuesday in india. That is the day we are watching for you on the 28th. That is tomorrow. The central bank has raised rates to raise inflation. No changes this time around. The year may have ended badly for nintendo but we will get the december Quarter Results on wednesday to see how badly it covers the annual loss nintendo warned about last week. Thursday perhaps things are looking up. We have china reporting that day coming becoming the first. It runs the largest that is writing the boom. Just the day before the new year officially kicks off. Maybe they will be heading off. Lets get more on what to watch out for for this week. He joins us live from singapore. We have a very full plate this all the rest. I. To in korea coming out with a number of earnings. I want to start with just what theave been seeing by chinese manufacturing data. This global route just continues. It flows through from asia to the u. S. Equity markets and then back again. What is going on . Chinas economy is now slowing. The sector is contracting. They showed the economy slowing. This is not necessarily the worst thing in the world. Chinas growth has been unsustainable. It has been too focused on credit. The government has switched into a model that is less reliant on credit and investment. In the long term that should be sustainable. This is exactly what china needs. If expectations that china will go 7. 5 to 80 . Know, and a lot of people had expecting chinese slowdown. Perhaps it is another reminder. This does come in the broader context of the underlying current. Also concerns about emerging remainability to healthy. Exactly. I think when tapering was first announced last month in the markets to get in their stride, that was maybe a surprise. Theyre all coming around to the idea that this is happening. Of being another 10 billion of this effort. This is going to carry on through the year. Every meeting that has this year. It will taper. Stop factoring that into prices. Unless it happens, therell naturally be periods of high risk aversion. It will be the economies that look the shakiest that are impacted the most. Last week it was the ukraine and turkey. In asia, india was hit harder. It looks like the new Central Bank Governor is a little more competent if you like than the last one. There some assurance there. I will be hit quite hard as well. About india a little bit closer. There really come in and boosted the confidence. What do you think in terms of what the r. B. I. Is going to do, keep rates steady . They thought we would see a 50 basis point cut. They will probably be keeping rates on hold this week. The inflation dates have shown that prices have come down, especially food prices. As you think the rba will be in any rush to slash rates. Might had triggered a rate cut. That is exactly the kind of with highng inflation. I think this governor will be more focused on this. Around 10 . There was a committee recently reported to the r. B. I. Saying they should be focusing more on Consumer Price inflation. Have a faireeds to amount for the target to be met over the next year. I think rates are on hold probably until the end of the year. Thisll be the last four been burning. That is before janet yellen takes the helm. Region,role in this which economies are healthy and prepared . Which economies are you a little more worried about . Any economies with large current account. Iny look like they should be fairly decent shape. Singapore looks quite good in that respect. Malaysia runs the current account surplus. Account deficits like indonesia. India has reduced its current account deficit recently. That may be hit less hard than it was in the last wrong dust round of turbulence. The one were most worried about his tile and. They have a political crisis going on. It has a current account deficit. Over the last decade it has been on a bit of a credit binge. Is looking quite shaky. Almost as if they are being distracted by the political instability that really curbs their ability to bolster up the infrastructure reform needed to make sure it is on sure footing when all this goes away. Is that what youre saying . This is maybe a distraction from the underlying problems. That is the household credit. They would be raising Interest Rates to cut up that credit. It is having to cut rates because the economy is going bad in other ways because of the politics. The politics is going to delay key infrastructure projects. Fiscal policy is really tight. Usednterest rates of being to run of credit in the economy. In time that will probably come back to bite them. A very comprehensive view as to why things in thailand do not look good as this political instability persists. Coming to usrkin, from singapore. Thousands of leaders and business tycoons are heading down from the mountain tops. Of the bigome takeaways . We will have the news from v him andos. Acv the financialn markets the surprising according to the Goldman Sachs ceo. Stocks had risen in value so much it would be a normal abnormal not to see some consolidation. Right now one of the macro themes in the market is that emerging markets are under some pressure. Why not . They are higher yields. They are riskier. People know what theyre getting into when they have them. The Growth Potential is so high they are attractive. They will go through starts. This is an example of each country has their own dynamic. Coo echo thechs sentiments and we have seen moves like this before. This is not extraordinary movements in the market. We have seen movements like this before. Member what we saw when been started on the tapering speech middle of last year . We saw one hundred basis points. We have seen the tenure move about 25 basis points. Tohave seen normal reaction things that go on on growth markets. They are not develop markets. Spoke with the former ecb president saying the economy is better but there are some worries. These are also there in the emerging world with the most Vulnerable Countries be more or less considered as potential problems. You can get more on that and all the days top stories on her website. It is your Online Search for business and market news 24 7. Twitter, it is easier to stay in touch with us here on first up in asia. You can follow us bloombergtvworld. All right. Up next, rolling the dice. Corporate japan ways into the debate about legal casinos. We will take a look at the arguments for and against when first up returns. Hong kong on a monday morning. Are we going to continue to see this route flow through on the hang saying . Were 30 minutes away from the japan andading in south korea. That is something we will be watching closely on your tv, mobile and online. You are watching first up. Bracing for a sellout. Asian stocks are expected to tumble today. Rolling the dice. Corporate japan that on the legalization of casinos. Why hong kong may benefit from the accounting standoff between china and the u. S. To it. Et straight i am angie lau. Checking the markets, new zealand down at 10th avenue 1 . 1 10 of 1 . Lets get over to japan and check out what futures are indicating below the 15,000 mark. That is what it tells us this morning as the yen extends the jump after the emergingmarket route continues on friday and flows through today. Right now the yen is that the 102 spot. The nikkei last close on friday close to 2 . As the sochi olympics gets underway in russia, japan is looking to 2021 tokyo plays host. One of the key decisions is whether to legalize casinos. That is a part of the conversation. Zeb joins us as it gains broader support. This is a big issue. If it happens the parliament is set to take this up. Now Business Leaders increasingly behind this idea. We have it by the ceo of loss awsone coming together to throw their weight of corporate japan behind this casino plan. Here is the back story. Theidea is that by the time olympics happen in 2020 japan will have a fullscale Casino Industry. This certainly requires a change in the law. It has to go through the japanese diet. Billions ofuire dollars in investment, which the like of mgm and Las Vegas Sands said they would be willing to commit. Heres an interesting statistic. Japan is estimated to be the world second largest Gaming Market if they allowed the casinos to push forward. Will they allow it . That is why the business lobby is getting behind this and forming an exploratory issue. They arty spend billions of dollars on pitching goes. Why do they thing the company will be so good for business . A rising tide reaches all books. If they allow these integrative resorts, casinos, hotels to be built along with Shopping Centers that it will improve the overall economy. It will help other businesses as well. That is why these companies are getting behind this. Our opponents to gaming in japan. They say it will run the unit fabric of the japanese society. It is not consistent with the japan we know today. A huge amount of money involved here. 10 billion projected in annual revenue. They want these casinos opened by 2020. Were hearing noises that james packer also interested in getting in on the action. Gambling wantino to get in if this does happen. All of this part of the broader story of abenomics trying to stoke japan out of the last decade that it has experience for so many years. More than a decade. This is part of the plan. Thank you so much for outlining all of that for us. Lets get a rundown of some other stories. Sony is betting that Sheryl Sandberg for its next big hit. That the screenplay will be fictional and based on themes covered by the book. Hasa second richest man announced plans to release 5 billion in the u. K. Wanda will go toward cultural and travel related project. Chinese pork supplier has said to be planning the biggest Hong Kong Ipo and more than three years. They may seek up to 6 billion u. S. Dollars as rising demand boost demand for meat. It became the worlds biggest pork supplier when it took over the Smithfield Foods last year. That was a round up of your top company news this hour. I am david inglis in hong kong. To a dispute over accounting has sent china tumbling in new york. Here in hong kong, exchange could stand to benefit. Mia saying he is here to explain benefit. Kong can we had the u. S. Regulator and judge saying that the chinese has earned this. They are banned from auditing those companies that are listed in the united states. This ties back to win the sec has been seeking documents from the Accounting Firms as you look to the regulators that had emerged over the 20122011 time period. They refuse. Saying that according to chinese roles is as part of state secrets. They cannot divulge this kind of information. We have tensions really erupting between washington and beijing. This is a government issue. It is not an a