Markets. To australia where the a sx 200 is falling for a third day as the Australian Dollar maintains its rebounds. Is the number there. This is the move. It is adding 100 points and then some. It is higher. Hired to then is u. S. Dollar. It is hopping with some exports. The be oj starting the policy meeting today. Ospi isa, the k fractionally higher. It just below that 2000 mark. From computers to drinks. Lenovo may be focused on snatching up the ibm server unit. John dawson has the details on both of the stories. Breaking news. They are actually confirming they are in preliminary talks. This is four . 5 billion. They are saying that talks broke down a couple of months ago about the price. Wants to spend more. Says they are ready to sign the money within cheeks. Dell may be looking to account. We are looking for an exciting move that did in fact fell to agree. There are lower Profit Margins to exit hardware. Software. They still have the pc business in 2005 to even it all out. Lenovo is arty number one pc maker in the world, trying to become the number one smartphone. Bev snappinghave in b up oriental. They are saying here. They are regaining control. For 1. 8d this billion. They just sold it back to the owners. 5. 8 billion in the meantime. Since they bought it, they are seeing the market share of south koreas a beer market go from 40 to a controlling 60 . They need a cash to close the deal. At they are looking cash. What a great profit. Important for these two moves . They have the beers. They are running out. Break away from the slowing european markets into a faster growing south korea. It is a vote of confidence. Thank you for that. A takeover tuesday. It is taking over the airwaves. Lets turn our attention back to sri lanka. The governor, thank you so much for joining us. We talked a little bit about the concerns not only in sri lanka but also in the region. Prepare for the eventual stoppage of liquidity into the Global Market from the u. S. Government . Is a very interesting question. Have here ist we that we do not really know at what stage the u. S. Government or the fed will start the tapering. They would be in a position to change by the time they see the u. S. Economy coming back to normal. They have given the indication they will do that it is sustainable. Everyone else has to be cautiously watching the u. S. Markets. Time, the most important part in this whole society is to strengthen yourselves in order to face any kind of change. We are in a position to do with the tapering. I think the way that Many Central Bank governors have been reacting is to ensure that they build up these spaces. Takeare in a position to the shock as sitcoms. It is important for us to recognize that even though there would be the tapering and that could cause some kind of short that thege, the fact u. S. Economy is bouncing back is a very good sign. That would be important for us to recognize. Would mean everyone will benefit. It is a situation we need to be careful to watch out for. Something we should be optimistic about. Your counterparts in indonesia and eject and asia all this when they made the comment about normalization of qe. Have they done enough . In their own way they would have been in this situation. Was thathat we reacted we were cautious not to be too eager to accept all of the funds that we were seeking. They could go back to their own homes. Inthat sense, to be cautious their. The way sirocco was handling the situation was to be cautious in so that the outflow could be management easier. Open marketsery would have been more difficult to manage in that context. That is why they had some additional pain during the few months and during the initial statement by the fed. You so much for joi us this morning. Stories making headlines today, chinas Biggest Offshore Oil and gas producer may miss its fiveyear production target. They estimate it will boost output by 5. 6 this year. This is lower than the average target over five years through 2015. Backing fors indian the new venture, there is ceo. Ent the lengthy process of establishing a low caste airline is nearing completion. Air asia has been working with the government to establish the procedures needed to win operating approval. This is the first time a Foreign Airline has been allowed to operate in india. It would be much easier for india to go along. It is ok. It took me seven years to get singapore as a root. Patience is a virtue and the prizes big if we get it. Can we have a timing . I hope we will hear something. I hope we keep the airline out by the end of march. They plan to trigger a rise in innercity rises. This could have an extremely big boost the economy. We are watching one of toyota suppliers. Capital spending will probably go 12 next fiscal year. Shares right now for toyota is up a set of 1 . Toyota shares are up happy person. Ok. Do you feel it . Those animal spirits are in the air. Companies are showing more theirence in meeting cash. We talked with john dawson this morning about all of the deals in the m a space. Mia sani is here describing why the environment it so frothy for the animal spirits to exist. In keynesian economics theres this reference of animal spirit that talks about the Human Emotion that drives investor confidence. That is what we have here. Investors are a lot more optimistic. They are looking to boost spending and their views. You are talking about m a. It looks like the mating call is out there. It is not just that. Their views on the global macro environment is also pretty large. Views on ther Global Economy is the strongest since two thousand two levels. It europe is in a better position than before. Is one are talking about the heels of doll those. A lot of these executives are gathering there. For the first time, the uncertainty is not in the air. The picture is pretty interesting. A lot more of these ceos are predicting a wealthier consumer. They need to update their spirit manufacturers are planning to boost spending by 2 this year. Expectedompanies are to higher then. You want to be able to put more wallet. O the employees it sounds like what people are trying to figure out is lets get in there and white view ride the wave of growth. Is like timing is so important. They were going to increase the forecast. Showstest bloomberg poll that International Investors are the most optimistic and five year. To 33 bullish compared back in november. There are concerns. What is the space of tapering . How successful the japan stimulus da be . They are seeing some turnaround. Are we going to see them not necessarily rebound but stabilize . Those are some questions. Some of the Big Questions from previous years are off the table. So to speak. It does not look like the eurozone will be up. When you look at china, stabilization will not fall into this slowdown in momentum. Still questions that are lingering. Executives like the animal spirits. They are unleashing them in full throttle. The data coming out to the u. S. Is reason for optimism. China stabilizing. What about shadow banking . That is what were hearing for investors. Absolutely. Thank you for that. Market potential, why our next guest is so positive of 2014. This is after this short break. The economy is picking up, picking of a lot of infrastructure being built on the grounds. Tourism grounds have grown. Other Economic Indicators are quite positive. 2014 is looking quite positive. It is expected to be over 7 . We have many incentives for private companies to get listed. We see in the coming months a large number of new listings. Those were some of the big. Uests from sri lanka the Company Hopes to attract more Foreign Investors. Lets get more from the top market regulator, the Sri Lankan Security and Exchange Commission chairman. He joins us live from singapore. Welcome to you. Lets remind everyone the story of sri lanka. You came in. There was a lot of concern about construction and the like and not a lot of confidence in the market. Makehave you done since to this a very eventful year . Is 2014 in stock for you . Market went up significantly fast. Been a kind of came down. We sat down and put in place a for thelan, a Roadmap Development of the market. We needed to adjust the market forward. On areas,y focusing market development, infrastructure development. These things. All of these things that we have is why it is leading the market. We have not entered the steady growth. What are the key initiatives here to attract more Foreign Development . The market now is here. Look at the last 12 months. At last he was about 4. 3 . Even the sure 4. 3 growth. We are now going to the Global Markets. This was during the conflict time. This has done significantly well compared to the rest of the world. Most of the markets are struggling. We need to create a greater awareness of that. I think we have done a pretty good job during the last one year. About 36 into 2013. We will continue to do so. Having todaye are is also part of that. If Foreign Investors are looking for exposure into the whater economic story, kind of sectors with a look at in sri lanka . You have a good diversion of opportunity. Right now the valuations are pretty good. Ready fiveis about percent. It is about 11 . Most of the good stocks are trading at fairly good prices. That is why we see during the focus. Months a lot of Fund Managers are finding it is an interesting definition to invest. Thank you so much for joining us this morning. He is the sec commissioner chairman. Thes in singapore for invest in sri lanka form. Up next, the price is right. Or is it . On affordable housing. Stay with us here. Food and shelter is all we need. When it comes to shelter it is getting more expensive to live here in hong kong. Prices are topping incomes by 15 times. Much better in australia. We will get more empathy from paul allen in sydney. How is the Housing Market there . Well it is completely wretched. We would get back to that in a moment. It is nowhere near as bad as how you have it there in hong kong. This is the 10th annual survey into housing affordability. Housing tops the list. The Meeting House price is 14 times nine from the median. Top numbers. Ut the we have vancouver in second place. San francisco third. In sydney we are in fourth. San jose, a. 7 times income. Honorable mention goes to my compactor it. Mpatriots. Tri focusing on sydney here. This is as a fouryear high. There is a phenomenon here in australia. If you buy an investment property, put it in and run it at a loss. You can then claim that as a tax break. They are losing money on your investment which is really quite remarkable. Esterday we had a guest i nearly blew my corn flakes onto my nose when he said australia and new zealand are representing a good deal on property investment. To fall. S are starting theres quite an expose on local media. Investment Property Holders are finding it increasingly difficult. This will be an interesting development. It is a great truism in life. Nevada how bad you think you have it theres always someone that has it worse. This is not include mom by. Paul allen out to sydney. Thank you so much for that. Going back for more. Lenovo is in talks to buy. Who . When answer that question first up returns. Good morning. Welcome. At victoriave look harbour. Hong kong reports it is december inflation figures. We are in our from the opening of trading here. You are watching first up. Lenovo is said to be in serious talks with ibm. Interest is rising. U. S. Recovery sees investor optimism at its highest in years. Mumbai exhibit, the art of travel. Most asian stocks rising this morning. Markets trading here in the asiapacific. A little bit mixed right now. Are rising, climbing 1 on that weaker yen. Japanese index reversing yesterdays decline. Probably seen makers meeting. Ers we are also going to be watching Chinese Market very closely when they open. Money market rates spiked up again yesterday. In. Seem ready to step did they do that . David inglis joining us with all of the action in china. These red flags have become more frequent over the past six or eight months. Rearing their ugly heads. Yesterday we were talking about the money market rates. The sevenday jumped over 150 basis points. For funding actually creeps up ahead of certain holidays. Youve got to stuff the red lucky envelopes with lots of cash. In mandarin. Something new every day. What do we have . What they did was put out a statement. It will be state being it will be stepping in. You are talking about what you call the standing lending facility. Facility. Lending top the line in the sand, that is when banks can get past this tool. According to the document Bloomberg News was able to maintain. It is still a trial. It is spread across 10 regions. Fromn also be benefiting this deal. Economists think it is a good measure. It does add this line in the sand at least for markets. It gains some uncertainty. In june of last year. We saw in december. Now we are seeing it again. Lets switch the tension. It is about the macro. We are talking about chinas economy, gdp. There is a fourth. Parking in the distance as the working age population of china. Talk about this. This is a problem if you take a look at the broader picture and china. It could be an advantage or a disadvantage. Talking about the shrinking potential pool of workers. Between 15 and 69. It depends on how they play this. It is shrinking which forces their hand to push forward with the reforms more quickly. Theyre going to reallocate the resource. Dropped 3. 5 million in 2012. The human expects to want to draw. It is a serious problem. It is a value chain. This is a reason why they looking for the way for expert growth. Lets take a look at some of the other stories making headlines. It is about 16 billion. Not they will tie five point 8 billion to regain control of the oriental brewery. Only less than 2 billion four years ago. It may not be a year to remember for deutsche bank. This is coming after a surprise loss of 1. 5 billion. Theres a plenty combination of legal costs and low trading revenue. In toronto. It is still 80,000 handsets by the end of the month. Blackberry makes it 98 of the pentagons new network. Those are one of the top needs fixed today. Having already bought one business, lenovo may soon acquire another. It is said to be in talks about the low server business. The thirdalks with party. Thanks for joining us. Tell us what is the latest you know of lenovo talking with someone. It is so unfamiliar with the story. Yesterday we had reporters having lenovo talking about the server business. Lenovo have bought the unit in 2005. What he is doing now is looking to expand in storage equipment. He wanted to double the share of the server market. This is the latest of lenovo. They are confirming that it is in discussions to make an acquisition but not naming the party involved that people familiar with the matter. This is the ibm lowend server unit. International investors are the most upbeat about the economy than any time in five years. Those polled said the Economic Outlook is improving. That is up from 33 in november. It is the most positive result since it began in 2009. The main reason for optimism is renewed confidence in the strength of the worlds richest economy. The rich and powerful from all over the world are gathered for the World Economic forum. The parties roll on in the towns most expensive wheels. It burned the midnight oil high above. What are we talking about . Constables reports. High in the mountains above doll those after the skiers and snowboarders take their last run piste bashers reclaim the mountains. Worth more than half a million bucks each. Groomed the slopes until they are smooth again. You work all night. The city is parting. They are the disco. Let me go out. It is at 6 00 in the morning. Be piste basher party. 46 of the monsters prepared nearly 200 miles of snow covered peaks. Every night. It can be dangerous work. Keep from crashing you go with the mountain. You go down the hill. Aside. This sometimes it has stopped. Youre not tipping over. Do you ever get lonely . Your up your 16 hours a night. You stop too much. Then you go out. There is some snow in your face. They announce it to keep going. Some make coffee. No schnapps. 00. Maybe copy my work. Probably a little more comfortable. You can get more on doll those in the World Economic forum on our website. It is our Online Stores for business and market news. Check it out. My next guest says the case for buying the Australian Dollar is they are. Find out what he says. Markets around the region are rising. Japanese equity reversing yesterdays decline. It is at 1 . Over in sydney we are seeing a little bit of fluctuation at the start of the markets. It is just fractionally higher. It is higher. It is the head of the markets. Higher is pointing to a opening. Now as they have of the asset allocation. Lets talk about the optimism that we have been hearing. They are putting their money into the development to its looking for growth in the u. S. And europe. You have a contrarian view on that. Yes, i do. Two thousand 13 was quite optimistic. As the year unfolded, this was a mix. It under delivered in terms of earnings. That aside, from an expectation point of view, i think markets have gone quite far. Earningsok at the region, cumulative revisions are the lowest level seen since the 1998 asian crisis. There was the Earnings Growth revisions that have been revised down substantially. That makes it a good contrarian by. Fair trading around 30 discount. You have support. There is Earnings Growth expectations. Are in their political tensions in the background . You have japan and china. With japan, they are looking to bolster their military. That is a concern. Thailand is considering a state of emergency. Arent you worried about that when it comes to emerging markets . You are right. Tois probably not feasible buy the entire story. The selection will be