The afx 200 is starting the day off with a gain. 5350 three is your gain. It is less than a 10th of 1 up. Following, is also no. It is unchanged. 4768. The new Zealand Dollar spot is weakening right now. Were counting down to the open in japan and korea. Lets head right over to japan. In an hour we will open for the first time this year today. Last year a gained seven cents of 1 . 1 . 7 10 of on it starts its first full trading day of the year in japan. The dollar yen strengthening. To our top story. Posting a profit but just barely. Htc earnings missed estimates for a fourth consecutive quarter. We have a look at the sales them down. Gging you can really blame it on sales. This is the largest phone launch to date. It halt this a slowdown we have seen for nine consecutive quarters. Downeye sizing up robert junior to help promote the brand and bring awareness in greater china. Ticket look at the Fourth Quarter figures. Income rising to 10 million, misting estimates by 55 . This is the second consecutive operating loss. The revenue falling to 1. 4 billion dollars. That is nine quarters of declines. This means that they posted the first annual loss in 2013. Profit is close to a 25 stake. Lossavoided their second on record. No doubt the celebrity endorsements are not really working for blackberry or htc. The ironman not working well. Feelings are absolutely the pain. Absolutely. This is up marginally, numeral three percent. If you look at a oneyear chart, a couple of things going on. Theye end of last month, had a new guy in place. Globalow in charge of sales. His responsibility Going Forward is to help make sure theres no longer a decline in terms of the sales figures. Take a look at what the company has been experiencing. Manufacturing delays, Quality Control problems. Specifically the technologies. We were referencing this off by 52 . He can say a lot of the problems stemming. Management changes. Resignations at the top six that have occurred over the past three years. They have really provided investors with the sense that perhaps management does not know what is going on. If you cannot capture this it will not trickle through the balance sheet. You will not see a net income figure that is pretty resounding. 10 Million Dollars is almost nothing when you are a big company in this space trying to have dominance in the smart phone space. Investors are surprised for the second consecutive quarter. This was an unscheduled release of earnings. What does that say . A could be a new trend. If you do not have great news do it on a weekend. Thank you so much. Were going to check japanese automakers when tokyo kicks off their session. Three of the big carmakers fell short of forecasts. Toyota saw sales decline 1. 7 in december. Honda sales rose nearly 2 . Were short of expectations. Honda managed its second best year ever in the u. S. Climbed 11 . S the most among the six biggest automakers in the u. S. They still missed estimates. The price a bit cloying has nearly erased the tumble that began last year. Backxchange says it is above 1000. They got a boost when it seemed as said it was start accepting them for games like farmville. Erica is a bracing for the polar vortex with record low temperatures following the blizzard. It is a counterclockwise rotating pool of cold air that is affecting more than half the continent. New york and new jersey has declared a state of emergency and thousands of flights have been canceled or delayed. Protesters in thailand have stepped up their campaign against the government ahead of next weeks planned siege. Leaders say they will cut power and water to official buildings on january 13. They will stop government workers getting to the offices. The Electoral Commission has proposed doing this to april or may. Were going to be live in bangkok a little later this hour. Markets here and hong kong have had a rocky start to the year. On friday investors watched as stocks tumbled the most in weeks. 2014 still holds some prominence. We still have a full year. David is here with the details. What does this look like for hong kong. 364 more days to be exact. It is too early in the morning. Is average forecast at this a return of 10 from the end of 2014. It is a 12 gain. Where does this put us . 25,600 for the hang seng index. Some of these more bullish estimates are putting these at 27 or 28. It is possible. Chinese companies are listed here in hong kong. Chris wiese expects this index to return 39 . Reforms thesese could provide more lips as he had into 2014. As for the favorite sectors, telecom, population or baby linked Companies Like milk producers because of the reform. It is a bit tricky. Theres an almost distrust for local companies in china for some of them here. Insurance is one of the favorite sectors because of reforms. Is not taxdeductible for them to contribute to the pension funds. Infrastructure, Raw Materials and property. Are gaming and internet. They have gotten too expensive. It is about the china play an chinese reform. What about valuations . Stocks in hong kong right now have slumped last week. Valuations are kind of low. It is a buying opportunity . It is the cheapest in asia. Things is most common that it is really compelling. The prices in hong kong, the valuations. It may be another reason why it was favored. You look at your screen, h shares are selling at 7. 7 times earnings. It is cheapest in asia compared to the nikkei 225 which is at 25. Another thing to note is it is also cheaper. If you look at the weightings, there are property and banks are fairly heavily weighted. That is why things are cheap europe. People have been avoiding chinese financials. That is a very good point to note. Coming up later in the show, china wants to host the 2022 Winter Olympics. It has the money. It has the will. There is a key ingredient missing. A special report later this hour. Our next guest expects a more robust china in 2014. The recovery four i mean remains elusive. Welcome back. Lets take a look at some of the events we will be following. In the worlds Biggest Smartphone maker is out with results on tuesday. The money probably cap pouring in for samsung. They probably posted 10 billion in the final three months of 2013. That would amount to the slowest growth in two years. Losing momentum in china. Exports are out on wednesday january the eighth. Growth in overseas sales is expected to have slowed to almost half the rate of the previous mom. On thursday the very next day. It is home to one of the worst performing currencies in the region. Policymakers have been raging with borrowing costs high. Economists expect no change this time. Lets get more on what to watch out for this week. Joining us is angie master. Is good to see you. Happy new year to you. Lets just talk about india. We have him step down on friday. That thisarks he said is going to be a disaster for india. With all of this talk about clinical uncertainty, how does india fair for investors . If you look at the new , iters that are emerging also spur congress and to do something that had been sewing for a long time. Rapid a fairly appearance. I am reasonably positive that whichever party comes into power, the momentum Going Forward is positive. Much more will be focused on policy reforms than issues that are getting us nowhere. I am recently positive. Given that the elections are due in may it will probably be the second half of the year where we start to see the momentum built up. Also out with elections in june. It is Rate Decision day. This,ramp up to all of how will Indonesia Play out . You think the central bank there is going to have to be forced to act . It is a needhink to act. We do not think they will have to back much further. Even though the rupiah is weak were starting to see this improving. They have reasonable success. You look at bank lending, it has not slowed down enough. Overall, it does seem the momentum and growth is slowing. That means the pressure will be reduced. All in all, things are getting from growth. That means they can afford to take a break this time. Do you think will drive the momentum in asia . Coming from it is the u. S. . It will be developed countries as a whole. The growth momentum is improving. We will see greater contribution coming in from exports. That said it will not be something that we will say after the races. A is not being accompanied by similar or rapid increase. I want to listen to the sound by coming out of philadelphia. Been burning key basically saying that the u. S. Economy is recovering. It cites the need for transparency. Lets listen in. Fed needs to educate and explain. It will only grow. When you set in the office in 19 79, there were no Financial News channels. The fed must continue to find ways to navigate this changing environment while providing clear objectives and reliable information to the public. To do you think with janet yellen taking the home that this transparency is going to be just as important to her . Absolutely. I think communication from the a very important ingredient of u. S. Policy as it is for any other central bank. To be very critical. On one hand you have an unwind of the qe program and on the other you have forward guidance. How you commit will be very critical now. Central banks in asia are as optimistic about the kind of communication coming out of the Federal Reserve . We heard a lot of criticism from the bank of korea last year. I do think the criticism came before the qe Withdrawal Program was announced. Tothat extent it does seem be the fact that theyre quite comfortable. What is your forecast as it drives this region for work . Will be close to 8 this year. China is setting its sights on the 2000 22 olympics. We will have more after this short break. Were a month away from the Winter Olympics in russia. Ive years after hosting the summer olympics, beijing is making a joint bid for the 2020 two event. Stephen engel reports the bid could get a frosty reception. You need to drive at least four hours northwest to get to where chinas olympic organizers want to hold the outdoor event. The problem is its in the whole drive basin. There is no snow to be seen anywhere. Just the great wall of china ahead of us. At making it to ideal for Winter Olympics. More challenging is that he is a gritty water scarce city in the heart of coal and still making country. I thought we were getting out of this. China will undoubtedly throw billions of cleaning up and building things out including a highspeed rail link to the slope. Theres more work to be done. There is no snow at all. This offers few clues of a nearby winter resort. This is january. Only at last see the slopes, the evidence is all man made snow. Ok. Ready to go. This is one of the newer ski with 30in the area trails, a gondola and a heated chairlift. 22 lists are planned serving 80 trails. The runs are not long and hard from challenging. Skiing is a relatively new sport for the chinese. China should have a chance. It is about will. Straightconomy is strong in the government is quite committed. Theres not a single slope that conforms to olympic regulations. There are a couple of resorts being built nearby that meet olympic standards. They might not be known for snow but it is known for the better, chilly wind. It is also extremely icy. What do you think . Worldclass . Not at all. It is a great help. Not bad for china. It is not worldclass. If you are going to try to have an olympics here what it is lacking is amenities. If they get there. By the time you get there, i am not sure when. It would take a wild. One thing you really need is snow. Here it is a little bit tough to get the kind of snow you want to have for the olympics. It is a good place to come for the family. I do not think it is ready for the olympics. They are bidding against five other cities from norway, sweden, ukraine, and cause extent. Inc. Has china may have the will and the wallet to host the winter games but maybe not the right weather. All you need is snow. You can get more on that in all of the days top stories. You can watch us live where ever you are. Head to the app store and download it from there for your iphone devices as well. Checking some other stories making headlines around the world. Cambodia has banned Opposition Party rallies in a new crackdown on dissent. It follows the deaths of protesters on friday. Leaders attended the funerals and later called off major demonstrations for sunday. The figures have been summoned to court next week. And accused of inciting crime and undermining public security. Rescuers still hope to find survivors in the rubble of a collapse the building. At least 15 people are known to have died. It is not clear how many people were on the site when the five story structure came tumbling down. Police are investigating the developer and officials who approved the project on marshland. The Building Contractor in the construction manager had disappeared. This may escape today. The change in the weather brings more favorable conditions. This became stuck in the ice packed after rescuing more than 50 people from the vehicle which was also trapped. Forecasters say a cyclone is approaching. Michael schumacher remains ly ill after skiing in france. He was saved by his home when he hit a wall. His mother and fatherinlaw visited him. An allegedlling for mobile phone pictures to be handed in. Up next, more pressure on the thai Prime Minister. We will be live when first up returns. Shutdown showdown. Protesters aim to bring bangkok to a halt a week from now. Arerts that part of beijing unfit for Food Production because of this. We have a special report. Monday morning. It lets get straight to the markets. To australia where the sx 200 is now flipping into the red. It is fractionally lower. This is the level here. The Australian Dollar is u. S. Cents. G 89 new zealand this morning started the day off unchanged. You could say there is little activity there right now. Pretty much unchanged in the past half hour. New Zealand Dollars spots, the kiwi is weakening. 82 u. S. Cents is the level they are. We have been telling you about thailand. Is that eckhard is now their live. Antigovernment protesters have set up the campaign. Will bring the city to a halt a week from today. Zach is in bangkok. How big were the latest demonstrations . Good morning to you. We saw thousands of people in the thai capital yesterday. They call it a warmup protest for their plans to shut down the city of bangkok. This is through the western part of the capital. This is largely a move to try to drum up support to get people to join them next monday. They will paralyze the city, shutting down major intersections. The ultimate goal is to force the Prime Minister from office. No reports of violence or injury yesterday. Another is set for today at 10 00 a. M. Told to make been extra precautions as they try to get to work today. Everyone is watching very closely. We know this was the election day. Now we are hearing that they proposed april or may. Is this an attempt to avoid the violence of the streets . As that. Tainly is seen the Election Commission here movinged it may propose the election to april or may and exactly that to avoid violence. You can recall the violence we have seen in past political protests in bangkok and certainly the government does not want to see that happen again. It is unclear whether that will happen. Befriday in what appeared to a victory, the election still will go forward. Are movingers through the streets. Want to the election is delayed, that is their key goal. Reforms takesee place. Yesterday the Prime Minister said the election and reforms would go handinhand. We have rdc and the impact on the index on the equities as well. Ofrism is an integral part thailand economy. How extensive do you think the impact will be likely to the tourism sector. Where are the signs of stress you are seeing most of what . Prevalent question mark this is a peak time for travelers from europe and elsewhere all to warm up. Hasnow that singapore canceled 19 nonstop flights through february on concerns that the unrest will lead to a slump in taurus in. That is what youre hearing from operators. Lessentally there is activity than you might need in terms of visitors coming in for certain destinations. Thispends how significant impacts the center of the city where they plan to hold these protests. Will it be possible to get to and from the airport . They found a blocked intersection. Say it is developing its own contingency plan and had an emergency meeting over the weekend on news that singapore and other airlines have started already to cancel their flights. Zev eckhard keeping a very close eye on the situation in bangkok. To our neck story. One of the political challenges facing china, the toxic air. Ideasg has announced more. They are unfit for Food Production. Joseph, coalfired plants in china are a huge program here in this nation. It is probably the key contributor. What is china doing . It is 80 of electric power generated from coal powered plants. Problem. T of the they are trying to reduce a percentage of the total. You cant do it overnight. Wins, powerlding capacity, a lot of power. Formsre putting in other of fuel. Theyre trying to make this environmentally friendly. This will reduce the locks. Theyre putting a lot of effort into this. The issue is that it is a huge problem. That hasa huge problem been decades long. The run up to the situation where it is almost unfathomable to think the size of belgium in china can no longer support agriculture. Why has china not acted any sooner . What happened in china, you have had an acceleration in the Economic Growth. You have a lot more industry coming through. On the electric generation site, they needed to put up as much capacity as possible. For two or three years they were putting up one year. The world has ever seen that before. To handle the aftermath, the environment. Have said, some of the utilities listed in china, clean best in 2000rm the 13. Why . The answer is the environment. Toward thesitive sector in particular. Hascally their business generated power out of the generation. There are these clean guys. Been quiteve positive. These guysroblem is were building power plants like there was no tomorrow. Theyre building them very fast. The greeks have not caught up with them. There was the promise. Build the wind power plants but it was not connected. At one stage, 30 was installed and not connected. That has improved. On equity has been coming up. Ofwhat about the benefits Nuclear Power for china . I think it is huge. There are the pros and the cons for nuclear. China really needs nuclear. It is very conservative about it. Is shut down all Nuclear Power plants. Everythingheck that was the way it was supposed to be in terms of the engineering was ok and so forth. There is a lot more nuclear coming through. About 14 gigawatts which is in terms ofe size. Theyre going to go up more gigawatts. It usually takes a lot longer to build. A typical wind farm is about nine months. A Nuclear Power plant is five years. Even if they Start Building now we will not see the effects at least five years from now. Us thisu for joining morning on the issue about pollution in china. Lets go to david with the roundup. A very good morning. Anotherpany setback for htc. Aey missed estimates for fourth straight quarter. Profit was less than half expectations following for over two years. Little to stop that slide. Shares of htc fell a third year after losing market share to the likes of samsung that reports tomorrow. China has announced the death of its president in an accident. They did not give further details. Operations remain normal with a chairman taking on the duties until a replacement is found. China railway shares have dropped almost 14 since the end of two thousand 12. Despite china speeding aiming to speed up rail. Oh cbc may be planning its biggest acquisition. A Hong Kong Family bank. They may be binding a bid. Lenders are in discussion to bridge that gap. It made almost two thirds of its revenue. Those were this Hours Company news. Lets hope 2013 season more gains than do clients. That is if we want the world to be a happier healthier place. A direct correlation between a stock selloff and a spike in sickness. John dawson joins me now to explain. Is interesting comparison. It was done in march 2013. At the university of california san diego, equities fall 1. 5 . A lot of correlation this is mental health. There are 30 of missions. 283 including the black monday event. That was a major one. S p 500 20 . It is really the effect. There is the impact again. And to totally we guess that this could be true, people losing their wealth and feeling a lot of stress. What were some of the worst conditions . Heart. Stocks on 2008. The essence be falling 460 . A significant increase. A professor of finance in toronto said there is a significant correlation between a stock market decrease in myocardial infractions. Getting extreme returns. Panic attacks, anxiety attacks and a significant increase. We hope this year will be less drama more happiness. That is right. At least how to deal with it, stress. Try to relax. Yoga. Is that what you do . A little bit more vacation time. Next guestp, our expects more declines for the yen in the months ahead. More from barclays when first up returns. We take you to tokyo right now. We are at a lively view of. Errell as so less than 15 minutes to go until the first trading session of the year in japan. What of anticipation on the year will bring as the country tries for a 2 inflation goal. The nikkei at 16 291 levels. Checking futures trading in chicago. It is pointing to a lower open. The yen is weakening. Japan is facing what could be a big year. Schendel abbe needs to prove his socalled third aero schendel abe needs too prove his socalled third aero. I am not that wildly optimistic. As high as predicated on the idea that he will reform the economy on many different levels, deregulation, increasing the workforce, working to encourage entrepreneurship to make japan more about job creation from the ground up. Nothing has happened. Abenomics is about pumping a lot of money into the system. Stocks responded. If we do not see some very tangible evidence very soon to genuinely shape things up as he he encouragedas investors to buy stocks based on, we will see nothing more than a stock bubble. A lot of people saying this is more like a thousand arts trying to hit the target. That is still yet to be determined. What did abe get right so far . The Second Time Around he has a prize a lot of us in terms of coming back as a very disciplined and focused politician. He focused on the economy early on. He hired corrode a k kuroda. Year was aause last lot of opportunity. When his Approval Ratings were approaching 80 he should have been doing a lot to improve the economy. It is now below 50 . The second thing is he is looking for growth in the wrong places. He is trying to sell nuclear the worldts around and change secrecy laws. He is focusing on the economy. His arty focusing on nationalists. Good thing to do. His arty focusing on tweaking textbooks that will upset china and south korea. How he ise talk about making the bold decisions, they focused on japan. It. N will be joining it is demanding his collusion for things like agriculture and automobiles which is the whole game. Askingle country will be for the japan treatment which waters down the entire enterprise if you will. There is a lot that has to be done. A lot think that should be rising without tangible steps. To me it is a bit of the reach. Ones. Is the tangible thank you so much for that. Thes turn our attention to markers. Since we have just finished talking about a lot of the excitement for the nikkei 225, where do you see the yen story going . Ultimately, a lot of the weakness we have already seen. Our forecasts are not overly aggressive. We are looking for the dollar yen to trade in three months time and to stay there for the remainder of the year. The task for japan is a tough is a tough see one. Will comee pressure on the bank of japan. The response will be for them to use the policy further we think. Do you think that the inflation goal can be met and then sustained . Be oj think that further easing is music . We do. This they tell us that it had increased. They are well short of 2 . At breakeven inflation rates. Their only trading at about 1. 5 . Theres clearly more work to be done. The bank of japan is the obvious policymaker to go to to be able to achieve this. They were able to have a quick pass through to the economy, tryicularly to the yen to to increase Inflation Expectations within the economy. If you look at your crystal ball, which currencies would you long and which would you short . This is the year where we see back of dollar on the an improving economy. We would love to currencies was delivered into the u. S. And currencies which are exposed to Global Manufacturing sector. To begin with, that would be the likes of north asia. The he chinese room in written in the chinese currency should benefit, too. We would expect the indian rupee to continue to show signs of stabilization this year. Are you steering clear of more fragile age and currencies . Are. The likes of the indonesian rupiah still remains one of the most fragile in the region. Workindonesia has a lot of to do to address some of the vulnerabilities. Theres still a very large current account deficit that indonesia has. Of this. Low levels this is from the likes of the indonesian rupiah. Away givenwould stay Political Tension as well as the thai economy is not looking that good. Theyre likely to post for an account deficit last year. It looks like geopolitical concernsraising its ugly head. Thank you for that. Still to come, the winners and losers of reform and progress. A special report on myanmar when first up returns. Myanmars reforms have brought Economic Growth. As the country strives for the future, some are being left behind. Changes. Re bringing in they want the main mode of transport. It is not an easy job. More. Mes we have sometimes less. Sometimes they only earn enough to eat for a day. Difficult than before. We have to drive the rickshaw among the cars. We need to survive. We have to risk doing that even if it is dangerous. Grow 6. 8 omy will this year. Among one of the fastest in southeast asia. Sanctions are lifted on many foreign projects. Little of that trickles down to rickshaw drivers. Consumer prices are rising. Five percent year on year in october. A live lookat the new tr daybout to get underway after one of the best runs in decades. A turnaround at htc. Profit was just about wiped out last quarter. Operation standstill. We are coming to you live this monday morning. Lets get straight to the markets. Extending losses down. Australian dollar is strengthening close to the 90s sent mark. 8964. Now it is at japan is just opening and this is the look. This is what we got. This is close to now. One percent down. This is your level there. The dollar yen is weakening. This is the scene live at the tokyo stock exchange. This will mark the very first trading day in two thousand 14. As you can see, it is a lower open this morning. In korea, the cost be is just getting the cost be kospi is up. 1947 is the level. The korean won is strengthening. Posting a profit but just barely, or htc earnings miss estimates for a fourth straight quarter. We have a look at the numbers dragging down the smart phone maker. He can blame it on the sales. They launched their new form. To really halt this slide that we saw in the sales figures. This is despite the fact that they signed up Robert Downey junior to help promote the band brand throughout china. This is what we have. Net income falling over the years. By 55 . Estimates revenue falling to 1. 4 billion. Loss that operating narrowed to 52 million. This is the 52 second quarterly operating loss. It means for the 2013 timeframe they have posted their first annual loss for 2013. It is close to 25 stake. It is not helping the company in terms of the sales figure. If you look at what the a meeting onlys halfway, investors must be feeling the same. Absolutely. Just call it the threemonth chart. Just call it a slight gain. Ist you want to focus in on the oneyear chart. If you look over a oneyear timeframe, the stock is off 52 . There is a new guy running the global sales. There are a couple of things that have happens. They have had to focus on malfunctions, manufacturing delays, as well as Quality Control issues and stiffer competition from their main chinese competitor. Another issue with the Stock Performance is the fact that over the past three years there have been several high level executive resignations or people who have been booted out of that position. That has affected the way they have been able to maintain a steady presence in terms of sales figures. You cannot capture it specifically in this very rigorous and challenging competitive climate. It will be hard to change around the profit figure. To spite the fact that on the quarter they saw an increase it is the over the year timeframe for we are seeing a decline. If you are a big guy competing, it is not that much. Just pennies. Absolutely. Blip onion is just a the radar. It is not showing any meaningful traction to investors when they think about whether or not the horizons of compelling or not. They have a new guy who is in charge of global sales. Can this be a Success Story . We will be waiting to see how it plays out. The news did break over the weekend. Thank you for that. Some other stories making headlines. Is up above eusebiof bitcoin 1000. Zynga said they would start accepting them for games. Oh cbc may be planning its biggest acquisition yet. The target is the family ru n bank. This was less than what they wanted. They are in discussions to bridge the gap. It makes almost two thirds of the revenue outside of singapore. A mixed figure for japanese car sales. Till you just all sales declined 1. 7 . Honda sales rose nearly 2 . We are short of expectations. Honda did manage the second best year ever in the United States. Nissans and december sales climbed 11 , the most among the six biggest automakers. It still missed estimates. Lets take a quick check on the carmakers on their first day and trade this year. Down. Is it missed expectations. Still with the 11 jump. It is jumping on the nikkei. Over to a story that we have been monitoring since last year. They have stepped up their campaign to shut down the thai capital of band talk bangkok. How big were the latest demonstrations . What does it all mean for that city as we run up to january 13 . You. Od morning to we stock thousands of people marching through the streets of the capital yesterday and what they consider a warm up to next weeks main protest. That is when they vow to shut down the city as blocking intersections. It is in a bid to force the Prime Minister from office. We are hearing this morning that the Prime Minister is asking the military to act as a mediator. The discussions were held yesterday to that effect. They are trying to head off a showdown here between protesters, the military police, and rival protesters. It is set one week from today. This morning another protest march that for 10 00 a. M. As they try to drum up support. They have been going on since november. We are expecting to see the largest numbers of protesters in the streets leading up to next weeks main event. The government has vowed to maintain a peaceful response. Companies from the military. They brought in trying to keep order. All right. Have not yet stepped in and a big show of force. The other question a lot of thise of wondering, is process going to delay elections . Has been a let the speculation as to whether the february 2 poll will happen. Some observers say it should be delayed to calm tensions here. The antigovernment protesters who were leading this movement would like to see this election delayed. Will not happen. Hes looking for a cheap victory on friday when the Election Commission said clearly that february 2 would be the day to vote. It would go forward. One member said perhaps it should be delayed. It looks like february 2 is the date this election will happen. Tempers are flaring. Thank you for keeping an eye on all of that for us. You can get more on that and all of the days top stories plus you can watch it live wherever you are on the bloomberg app. All you have to do is download it from the app store. Still to come, our next guest says last year was about policy reform in china. 2014 will be about putting the changes to the test. Welcome back. Lets take a look at some of the events we will be following for you. The worlds Biggest Smartphone maker is out with results on tuesday. The money kept pouring in. Samsung probably posted 10 billion dollars in operating profits. This would amount to the slowest growth in two years. Losing momentum and china is what we are expecting for wednesday. That is when export figures come out. Growth in overseas sales is expected to have slowed to half. He rate of the previous month these pointed to softer manufacturing and services. On thursday, it is Rate Decision day in indonesia, home to one of the worst performing currencies in the region. Policymakers have been raising great to turn the rupiah around. Economists expect no change. For more, here is hong kongs head of multiasset strategy. It is good to see you. Happy new year. Thank you. It was not a very happy start for the s p 500. Was a 2 jump. Investors are not getting a pop there. This is a sign of things to come. We had a brilliant Fourth Quarter. In the month of january, usually you see a little bit of a reversion of what happened in the Fourth Quarter. I do not think it is that significant. In terms of where you put your basket of money, where would you put it regionally . A lot of people are looking to the sm wanting to make that domestic play there with the developer market. What about europe and china . We would have a good waiting in japan. We would have a neutral position in europe. As far as asia is concerned, we would still be on the underweight side. Waitingbecause we are for the Economic Growth in the earningspershare Growth Numbers to turn around. At the moment it is not really coming through. David has been doing the story for as. The hang seng is expected to see a 39 jump this year. A lot of optimism on the china story. There will be a lot of reforms and that will trickle down to a lot of sectors. Are you feeling as optimistic . Concerned,s china is investors need to see how these reforms are going to be implemented, especially starting with the banking system. The first question they ask you is how is china going to fix the and howebt and problems they are going to fix the shadow banking explosion issues. That is the first thing that should be addressed. The second reform has to do with the soe. Reform ande restructuring. I think we will have a probable market in china. Which sectors do you like in china . The universe into the new china and the old china. Thesew china has all enterprises. To were thestill new china. China itself is trying to drive itself into the new china with a lot of domestic driven ones. You think internet stocks are going to do well . The about the rest of region . Where will the pickup come from . They just have to make sure that they can fund themselves. Money would be easy. Rates were low. That was heaven. That is going away. It is. For them it is a matter of trying to grow a little bit more slowly and to ensure that they can fund themselves. I think that will be the key issue. Sian is getting cheap. Indonesia is also offering some good values as well. Aware of theill be macro conditions. Of course. The biggest macro condition being the fed. We had janet yellen likely going to be confirmed later today in the United States as the new fed chair. The tapering. Do you think it will continue to speed up . Do you think it will starts and then maybe stop . I think the economic momentum has been very strong. It will continue to be strong. This will increase rather than decrease. I think she will try her best to try to control the end of the tapering process. The economic numbers have been you that she would have to continue. Good news overall. It is good to see you. Thank you for your outlook for 2014. Thank you. The japanese market just getting underway on the first day of trade. The nikkei to do five is extending losses this hour, 1. 4 . Is also lower. The dollar yen is also seeing is strengthening. Companieseck of the with some of the biggest weightings on the topix. It is down more than 1 . Zuho down. China aims for gold but a lack of white and not enough to dream. They hammered this for the Winter Olympics. We have a special report when first up returns. We are just a month away from the Winter Olympics in russia. Theyre lining up to host future games. Making a bid for the 2022 event. The bid could get a frosty reception. Least need to drive at four hours north of beijing to get to where chinas olympic organizers want to hold the winter events. These are some of the tallest hills around beijing. It is already january. There is no snow to be seen anywhere. Here i thought we were getting out of beijing away from this. China will undoubtedly throw of throwingbillions things out. There is still much work to be done. There is no snow at all. The last mile offers few clues of a new by nearby winter resort. This is january. When we at last see these loads, it is evident it is all man made snow. Ok. Ready to go. This is one of the newer ski resorts in the area with 30 trails, a gondola and a few heated chairlifts. They have just begun. Skiing is a relatively new sport for the chinese. China should have a chance. It is about wealth. Chinas economy is quite strong and the government is quite committed. Theres not a single slope and this resort of that conforms to olympic regulations. There are a couple being built nearby that meet the standards. It is known for its chilly winds. Extremely, what do you think . Worldclass . Not bad. Not worldclass. Is the is lacking village, amenities. If they get there. By the time you get there, i am not sure when. The one thing you need for an olympic is good snow. It is tough to get. It is the kind of snow you get. It is a good place to come. I do not think it is ready for the olympics. They are bidding against five. Ther cities the odds are long. 2018 games will be in asia. China may have the will and the wallet but perhaps not the right weather. As steve mentioned, pollution is one of the key issues that could affect chinas bid at the olympics. Joining us now is joseph. Pollution of course is a critical issue for china and leadership as it tries to start a new year of reforms. This is one of the biggest culprits here. It is not going to go away anytime soon. It is not. Four out of five kilowatt hours that china uses come out of coal plants. It cannot turn off. In the short term, these will still be there. The admissions will still be there. What is china supposed to do . We heard from the National Development and Reform Commission earlier last month. Its that hydroelectric wind and Solar Power Development will be accelerated this year. Can we believe that . Absolutely. What has been happening is that china does want to reduce this as a percentage of the overall. It is art he been declining. You have two choices. You can unplug the whole system or you live with it. At the same time, you try to put out as much nuclear wind and solar as you can. Time totakes a long build. It takes five years. Plus a couple two or three years in the planning stage. Wind is a lot quicker but slower. China is doing a lot of things that the problem. Building up a new generation of opportunities. Is notshort term, it going to make a huge impact. Nuclear energy is also a big issue. Up there is a danger. How did that find its way into the conversation in china . China decided after fukushima to really unplug the whole nuclear system. Anything that had been built had a hard stop. Anything that was planned was also put on hold. They reviewed anything. They sent a lot of investigative teams to make sure it was proper and engineering was there. They took a very conservative approach. The whole Nuclear Power was put onbuildup hold for about 18 months. You so much for that story and putting it all into context. Coming up, panic attacks, cold sweats, and anxiety. How falling stocks mean a rising fall interest to the hospital. Were kicking things off on monday. A little bit cloudy. A lot polluted. We are an hour from the open of trade. U are watching bitcoi first better late than never. Tokyo brings in the new trading year. What will that year bring . Days off work if these steps are to be believed. The winners and losers of myanmar. We have a special report. In theets trading here asiapacific. Good morning. Of 1. 5 . Losses the cost the is gaining. Sx 200 fluctuating. Less than an hour to go before hong kong opens. Markets have had a rocky start to the year. Investors watched as stocks tumbled the most in weeks. 2014 to hold from promise. We have 350 nine days of the year. What can we do with that. Lets put friday behind us. It is a good year. Across the forecast eight strategists is for the hang seng index to gain 10 . The take it other way back to it is over2014 25,600. There are bullish estimates out there. Or 28. E putting in at 27 most of the sectors will continue to get a lift because of the reforms. Youre talking about the same sectors again. Youre talking about non financials. Youre talking about this early. Bit tricky. Ttle this is the cheapest in asia. Are some of the cheapest valuations. This rally is at least 40 . Take thed simply valuations to just about the average. It is that far below the rest. If it reaches the average, that is where you could see that job. That is bullish. The bearish view . Any cautious outlooks . Therell always be one standing out. The extremes. Of theres one very interesting note from china emergency. They are cautiously optimistic. They say 2014 will be the year china actually feels the pain. Will be here. Q2 is where it will be tricky. Do not buy the index. The differentiation between sectors and within sectors will become more obvious. Market volatility is rearing its ugly head. For that. Lets go to media for a round up of corporate headlines. Here are the company headlines. He has announced the death of the president but did not go into further details. Operations remain normal with the chairman taking on the duties. Have railway shares dropped almost 14 since the end of 2000 12. China aiming to speed up construction. Cuts at be planning job the electronics operations. Early retirement to employees age 40 and above who at least 10 years of service. Two other news concerning toshiba. They say the company and its partner are planning to market new chips ahead of rivals. They are said to offer 10 times more Storage Capacity while consuming less power. Lets look at this. You can see sony off. These are the company news this hour. Lets hope 2014 sees more stock games then declines. Your help could be betting on it. If we want the world to be a healthier place it would be good if the stock markets go up. Theyve point to a direct correlation. What is the prognosis . This is arguably the least of all. They looked through the last 30 years. Overall it is the wealth effect. Chris parsons of the university of san diego. They presented this yesterday. They talked about equities about 1. 5 . Admissions are the big interesting compassion. S p actuallyhe rose. That is a direct snap up on the chart. 30 years of mission data of california hospitals. It also includes 20082009 and a bit of an uptick as well coming in. Stocks go down again. Wealth. He impact on the impact of wealth on ho health. What were some of the worst . Cardio they call a meyer infraction. A heart attack. There was a significant correlation between the decrease. Out that the s p 500 fell. The heart attacks have a significant increase for heart conditions. If they want to make sure that their traders are healthy, get them more relaxed, stress free. Maybe get some yoga classes in there. Definitely. Try to prop it up. Do you see it happening . No. Coming up next. Buy. Enomics is a that is the message i came here to send a. The Prime Minister is optimistic but what do investors think . We will discuss the challenges that lay ahead right after this short break. Afx 200 is fluctuating between gains and losses in seoul. Like this. Ooks it is in the green. Most asian stocks are falling today with regional benchmarks headed for a third day of losses in tokyo. The nikkei to do five is down 1. 35 on its first full trading day of the year after a three day holiday. Japan is facing what could be a very big here with slumping Approval Ratings. Shinto abbe needs to prove that row will hit the target he has been promising. Thank you for joining us. Ended 2013 on a high note. Do you think 2014 will continue that momentum . That is really up to abe. My personal opinion is not. Two giantso far is asset bubbles. The other is the 57 rise in stocks last year. These bubbles will not be a problem as long as he comes through with the structural reform pledges. Seen iny that you have stocks last year was predicated on the idea that japan is going to make companies more shareholder friendly. It will increase entrepreneurship. It will reform the labor markets, increase female participation in the labor force. None of that has happened. Not one single step has happened. Be tppp is going to liote where they will keep autos off the sector. The rallies that we are seeing is his to lose. He has to act of very quickly to remind investors that he is a reformer. He needs to walk the walk. Of course. Heard a lot of talk. In terms of walk, how close is key to the third era reform . What does he need to do to keep the recovery on track . The first thing you need to do is focus on the right thing. He spent 2013 winning the olympics. He spent a lot of time traveling the world to sell nuclear hardware. Hes been 2013 tweaking security laws to basically improve his ideas information flow. What about taking steps to actually step things up and come up with some of its election pledges. 2013 ended with the shrine which upset too have your biggest neighbors. This when theing World Economy is buying stuff . We have to see the Prime Minister being more proactive and essentially to do more on the reform front. It is a very splashy pr campaign. If we do not see this project very soon, i do not see how the stock market cant continue rising. Yieldot see how the bond can stay below if 1 . They will look at the beauty is pumping a lot of money into the system. Japan is importing more oil and energy from overseas. The population is aging. At some point they will say that that does not compute. In many ways he can avoid a problem by the end of the year was stock and bond bubbles. If he does drag his feet again the way he did in 2013, im not really sure how this is sustainable. It seems as though he was playing it smart, not paying a visit to the shrine. We saw that go away as china ratcheted away. Any idea that this will get in the way . Absolutely. In many ways what is disheartening is the two months before they visited on december 26, it was a very good two months for Japanese Foreign policy. He saw the make a variety of missteps. Asia was on the back of this. Very worried about china being a bully. They declared some of the moral high grounds. With one visit to a shrine, one very shortsighted step they wanted it all. In many ways he will focus on the year ahead on his passion being japans world word to record. Tweaking textbooks. That is going to upset china and south korea. There is his nationalistic bent. Does this get in the way of abenomics . In many way it does. Many ofou do this will your biggest customers are upset and may boycott your goods . If you are a japanese automaker or electronics company, you have to be very worried about the visit. In your head, we could see that filtering and corporate profits. Is a great whitewash for economic disappointments. What lies ahead for the markets there. It is monday, january 6. This is the top story. Another setback for htc. They missed estimates for a fourth straight quarter. Profit was less than half. Expectation seem to be falling for over two years. Shares of htc lifted in taipei fell a third after losing market. Hare samsung reports tomorrow. Protesters in thailand have stepped up their campaign against the government had at the plant to siege bangkok. The leaders say they will cut power and water to official buildings on the socalled shutdown in. Government workers getting to their offices. The Electoral Commission has proposed delays. The indian Prime Minister has confirmed that he will step down this summer after a decade in power. I am not going to be a candidate for the Prime Minister ship if you were to come back into power. Gandhi has outstanding credentials. Hope the party will take this position at an appropriate time. Myanmars gradual reforms have brought rocketing Economic Growth. As the country strides into the future, some are being left behind. She is bringing in changes to an old trade. They are finding it hard to peddle. I do not have a normal income. Sometimes i have more or less. Mostly i only earn enough to beat for a day. More difficult than before. We have to drive the rickshaw among the cars. We need to survive. We have to risk in doing that even if it is dangerous. Grow 6. 8 nomy will this year. Among one of the fastest will be southeast asia. Little of this trickles down to rickshaw drivers. Cluster 5 year on year according to the latest. Was christine there on the rough ride for rickshaw drivers in myanmar. Checking some other stories making headlines around the world. Cambodia has banned Opposition Party rallies in a new crackdown on dissent. It follows the deaths of four protesters on friday. The leader attended the funeral and called off a major demonstration planned for sunday. Been summoned to court next week, accused of inciting crime and undermining public security. Police fired rubber bullets at protesters as bangladesh held a disputed election. At least 18 people are reported killed. More than 100 polling stations were set on fire. The opposition is not taking part. The Prime Minister refused to step down. Ofmeans that more than half the seats in parliament will be uncontested. Rescuers are hoping to find survivors in the rubble of a collapsed building. At least 15 people are known to have died. It is not clear how many were on the site when the fivestory structure came down. Police are investigating the developer and investors who did approve this. Officials say the Building Center contractor and construction manager have both disappeared. The antarctic may escape today. It brings more favorable conditions. Stone dragon became stuck in the eyes back after helping to rescue more than 50 people from a reston Russian Research vehicle. A cyclone is approaching but that is good news. It will bring warmer westerly winds. Eight days after suffering severe head injuries loss being in france. Doctors say he was saved by his helmet when he hit a rock. Bothather and brother visited him on sunday. French prosecutors are studying fugitives footage for his helmet cam. Revelations from a whistleblower. Edward snowden may have hurt u. S. German relations but his document dump has been good for some german businesses. Hans nichols takes a look at to Tech Companies that may profit as they vie to produce Angela Merkels new phone. Bombshell, a modified blackberry and a Samsung Galaxy s three were competing for just one customer. The german government. And the ministers. With news reports about the listening posts, two companies talk about what may be this years status symbol. A secure smartphone. This has always been very keen on security and confidentiality. We think what we are offering now should be attracted to them. A subsidiary of deutsche line of code to virtualize the android operating system. The price of 1700 euros. The security anchor is inserted next to the sim card. On screen you can toggle back and forth between the secured zone and the public one. This is boring. There are these compartments. There is the live compartment. It is a normal android. A modified blackberry listed at 2000 euros. They offer discounts. They claim their voice is more secure. Isthe most important thing that voice becomes important. Before snowden, it was not important. They have the stamp of approval of information security. Merkel has opposed with the blackberry but it is a closely guarded secret which device will become the official chancellor phone. Bloomberg, berlin. Is among the markets opening at the top of the hour. Checking the latest indications. Not much of an indication. It is up to investors on how they want to start. The move is coming up next. We will get the shanghai and hong kong open. Stay tuned for that. Hi. Im henry winkler. And im here to tell homeowners that are 62 and older about a great way to live a better retirement. Its called a reverse mortgage. [ male announcer ] call right now to receive your free dvd and booklet with no obligation. It answers questions like how a reverse mortgage works, how much you qualify for, the ways to receive your money, and more. Plus, when you call now, youll get this magnifier with l. E. D. Light absolutely free. When you call the experts at one reverse mortgage today, youll learn the benefits of a governmentinsured reverse mortgage. It will eliminate your monthly mortgage payments and give you taxfree cash from the equity in your home. And heres the best part you still own your home. Take control of your retirement today. Good morning everyone. You are watching on the move. A different direction and the japanese star giving back some of the gains in the first trading day of 2013 2014. Operation standstill. We will have a look at the protester tactics. John has a look at the markets. It is not