The month. David is here with the reaction. It is not very good so far. Certainly, we are continuing to see the headwinds from wall street friday. The gdp number that came out for the fourth quarter, not exactly the most ideal. A drop of 5 to 2. 6 picked 2. 6 . That is what asia basically woke up to. Kicking off a new trading month, take a look at what is happening with the nikkei 225. I will get to why a lot of these stocks rising. We are down about 1 . Dollaryen at a threeweek low. The yen is stronger against its u. S. Counterpart, despite the fact we have the u. S. Dollar strengthening against most other currencies. Some safe haven plays. A lot of ecodata coming out. China adding to the woes pmi unexpectedly drop into 49. 8. We were expecting to see a slowdown. Data suggest that the first quarter, we will see a little bit of pain in china. South korea, we are flat right now. The trade surplus falling. We are looking at 7. 2 billion, still a hefty amount for the current account. Of course, we have inflation. This disinflation bug is expected to still reflect on those numbers. 3 for thailand. 7. 5 for indonesia. In australia, what we have . Up about 6 10 of one thing percent. We have the rba decision tomorrow. It is a fairly complex one to call. You still have a majority of economists saying they might hold, but if you look at the swaps, is showing a 50 cut in the rba. Youll get more from shery ahn and just a bit. Certainly, markets are pricing it in. You have yields falling. I will leave it there. Troubled chinese developer kairssa is back in headlines. The ceo has resigned to devote more time to his career developed. Kaira kaisa risks becoming the First Chinese company to default on a dollar bond. Rosalind chin is here. A Big Development over the course of the last week. The chief executive it effectively quit yesterday according to a filing. Hes actually the third senior manager at kaisa to quit. A former chairman left in december. Three top executives at the company having left. The chief executive had been with the company for about 11 years and he has been ceo since 2012. Lets go back little bit to take a look at why the company is seeing these top people leave. Basically, it missed an Interest Payment of 23 million back in january. Kaisa had been having a few problems. It had seen approval for some of its projects in shenzhen suspended. It was being investigated by the government. You mentioned shenzhen. The silver lining, if there is a silver lining, could be a white knight rescue bid. The government of shenzhen has been trying to find investors for kaisa in some time. A property company, a big one in china, has agreed to buy a 49. 3 stake in kaisa. It is a stake it is buying from the founding family. The chairman, as i mentioned earlier, quit in december. There is a 30day grace period that kaisa missed. There is some chance that this deal could help kaisa pay some of its missed Interest Payments. We will have to find out the details as it comes up. Trading was suspended on friday. You will see if it resumes today when the Hong Kong Market opens. Rosalind chin, thanks so much for the detailed update on that, kaisa very much under the spotlight. Another toplevel departure in china. We are going to be watching minsheng banking. That is after the president resigned amid reports he is under investigation by the authorities. Minsheng said he stepped down for personal reasons. Minsheng shares tumbling almost 8 last week alone. The Canadian Miner south gobi said it could be forced to bankruptcy after being found guilty of evading tax in mongolia. Some of gobi and three former employees were convicted on friday after a threeyear investigation. The three defendants were jailed for between five and six years, and the company was fined 18 million. South gobi is partly owned by rio tintos turquoise hill. It confirmed that it will appeal. Yesterday when journalist held in prison for a year in egypt has been released. Peter greste works for al jazeera television. He was arrested with two colleagues back in december of 2013. Greste and the others were accused of supporting the Muslim Brotherhood and reportedly damaging egypts image. There is no word as to the fate of the other two al jazeera broadcasters. Japanese prime insertions oh all day says he will never forget Islamic State for the killing of two japanese citizens. A video released over the weekend claims to show the body of the second hostage, journalist shinze goto. In a statement, abe said japan would work with other countries to make terrorists a tone for the killings. Yellow umbrellas were back on the streets of hong kong sunday. Dozens of protesters march in the first major protest since the end of occupy hong kong in december. Protesters are demanding that china rescinded plans to vet candidates for the citys top post. Asian has refused to make any concessions. 2015 is turning out to be a tough year for australian prime and asked abbott. Last week, he was ridiculed for giving the countrys top honor to the queens husband Prince Philip. Over the weekend, his party was trounced in the election in queensland. Paul allen joins us. Why is tony abbott being blamed for a state election result that was so bad . Well, he had made a fool of himself on Australia Day last week when he gave that knighthood to Prince Philip. There had been a series of other missteps leading up to that. He had become something of a toxic brand. He didnt appear once in queensland during the state elections for fear of poisoning the electorate but then we had the result itself which was really unprecedented. The labour party is back in power after three years and opposition. If you rewound three years, they were reduced to just seven seats in queensland. The smart money was that it was going to take at least a decade for them to rebuild into a viable force, and yet, here they are, back in power. It really is externally. The liberal coalition there is gone from power after a single term. To make it even worse, this is the second time it has happened in just three months. There was a similar result in the state of victoria last november when the liberal government there are lasted a single term. Obviously, federal mps are scratching the heads and wondering, if it happened at a state level, it could probably happen at the federal level too. Tony abbott has been identified as a problem. You mentioned the word problem. How big of a problem are the recent polls for mr. Abbott . There has been a slew of them. Knightmare. We will look at the latest fairfax caps on spool Fairfax Ipsos poll, the coalition down to 46 . That would mean tony abbotts party would lose 40 seats if the election were held today. If we looked at labor leader bill shorten, now comfortably at 50 tony abbott at 34 , and a out of 10 of those polled dont think tony abbott is going to be the Prime Minister after the next election. He does have an opportunity to turn this around. In a little under 30 minutes, hes going to give an address to the National Press club. Its an address that many commentators think is going to be something of a defining moment for tony abbott in 2015. He really has to seize the initiative and turn things around quickly, or his job could be at stake. Paul allen joining us from sydney on that not so good reflection on tony abbotts popularity in australia. 12 countries have eased rates since the beginning of this year alone. By the end of the day tomorrow there could be two more. Sherry and takes a look at the spreading disinflation bug. Analysts expect australia to cut their rate by. 2 to 2. 25 . In more than 50 chance that that could be happening. They paused any Interest Rate moves for the past 17 months, but now they are saying, ok that could happen. If it doesnt happen tomorrow or is an 88 chance according to analysts that it will happen in march. With expectations growing, yields are falling. The three year bond yield fell six basis points to touch a new record of 1. 885 . It is not the only one. That could be the 13th. There could be a 14th. The r. B. I. India. Analysts are expecting them to cut the repurchase rate. We have a surprise move on january 15 where they cut the rate to 7. 75 . The forecaster for this, that institute has been ranked number one by bloomberg for predicting the r. B. I. s rate actions in the last two years. They are saying with oil sliding and inflation below the Central Banks target it has been below 6 for the last three months they will cut again. Still, we have to wait and see. The top predictor for bloomberg, but 27 other analysts out of 35 saying there will be no move tomorrow. We will just have to wait and see. We will see. Sherry and on what could be shery ahn on what could be the 14th centralbank easing. Indian futures have just arbitrating. Started trading. Weve got markets across asia declining. You would think that india is fallen, which it is. Look forward to that when it opens. Ahead of the r. B. I. Meeting, a bit of nerves perhaps. February, not a great start for india. Greece going cold turkey on aid but the new antiausterity government doesnt want a lifeline from the ecb. We will look at this closer after the break. Welcome back. Greece is going cold turkey on aid, but the new antiausterity government is counting on a lifeline from the ecb. The finance minister has set an end of may deadline for a revamped international bailout that does not require greece to tighten its belt any further. Eurozone members have indicated that they would be willing to offer athens a longer Debt Repayment period but they have rejected any writedown on the debt relief. Joining us from singapore is steve davis. Many thanks for joining us. This is an interesting impasse. I want to ask you about the asian fallout, if you like. Clearly, greece wants this right off of debt. Angela merkel, very clear, there will be no debt relief. How worrying is this for your investors, for your trades . Clearly, the new greek government has what it believes to be a strong popular mandate, but you have that in the form of an and movable object meeting the steamroller in the form of the germans and the rest of the eu. It will be interesting to see who wins. Clearly, the rest of the eu is in not much of a mood for compromise, and it is difficult to see how the greeks will be able to achieve their objective while at the same time scoring it away with those remaining in the eu and remaining in the euro. It is mutually incompatible. I have a strong guess the germans will win this, because they have a strong case. If, as you say, the greeks lose out, lets say, worstcase scenario, goodbye, euro, goodbye, eu. This is a disastrous outcome for spain and portugal. It certainly would be extremely negative. It is true that perhaps the negative effect of a greek departure from the eurozone and the eu is perhaps a little bit more contained than it would have been a couple of years ago, but nonetheless, with antiausterity parties in spain in particular making a lot of running over the last couple of weeks on the back of the greek oppositions win, it would be treated as pretty negative. That creates more uncertainty for the eurozone at a time when they really cant use it. Although quantitative easing might have limited effects in real terms, there is no doubting that markets love it. We are putting a bandaid over a deep scar. It cant go on forever. What your clients and investors what are your clients and investors takes one it . European markets are up in terms of euro terms, but if you are a dollarbased investor, it is flat for the first month of the year. I think that is going to continue. We will see much as weve seen in japan over the last 12 months, that there is an inverse trade between the market and the currency. The currency falls, the market goes up. If you can hedge off the currency risk, that is positive from a portfolio perspective, but you definitely need to be able to do that since further weakness appears inevitable. You mention all of this, but what is the best way of investing . Our clients calling up and saying, steve, im nervous right now, or are they quite sanguine about it . What is the sort of thought . I think most people remain nervous but singling, sanguine, and it is much of the same as we saw in early 2015 when we had a bad january, matched by a relatively robust performance the rest of the year. When it comes down to it, with Interest Rates likely to remain low i think the jury is still very much out as to whether the United States will indeed increase Interest Rates this year. If they dont, then clearly youve got that relative opportunity cost rate which is if im not in equity, what else am i going to put my money into . The options for that are unfortunately very slim. Equities remain really the only game in town probably by default. A final question very quickly is it hard to make money right now . [laughter] yes, it is. Things were ok through the course of 2014, but with so much volatility, it is very difficult to take a longerterm strategic view on markets. That therefore means that you are very much subject to shortterm winds, which makes things extreme the uncomfortable. If you cant accept that volatility, it is probably best to invest in cash and look for opportunities later in the year. Many thanks for your time steve davies. A very candid response again. Breaking news come if i can for mark says they are plunging. Trading is now at a record low. A significant decline, 79 on that fairly unpleasant corporate story, bankruptcy looming. Up next, the u. S. Oil industry sees its biggest strike in decades. That is after the break. A look at the likely impact. This is on the move. It is monday morning. Back in a moment. The u. S. Oil industry is threatened by industrial action. Refinery workers have lunch the biggest strike in 35 years. The United Steelworkers Union represents employees at more than 200 refineries and plants. Workers and none of them walked off after a contract expired sunday. A full strike could hurt more than two thirds of Oil Production in the u. S. The economy is set to be the key focus of wall street this week. Su keenan has more on what investors in the u. S. Are watching out for in the days ahead. One of the Big Questions in the week ahead on wall street where do we go from here . January turned out to be one of the worst months for the s p 500 in a year. It stumbled out of the gates in january, which now goes down in the books as again a bad performing month, down some 3 . One strategist investors are pretty much nervous. Strong u. S. Economicals, but there is concern about the next picture we are getting for global growth. In the coming week in washington, we will see u. S. President barack obama send his fiscal 2016 budget to congress. On wall street, we will get the latest raft of economic data. The big focus continues to be on whether the economy is improving here. Economists surveyed by bloomberg say that Employment Data will show a boost in the number of workers added to payrolls in january, and u. S. Manufacturing will be seen as further moderating in january, while the u. S. Services industry likely expanded at a faster pace. On the earnings front, about 78 of the s p 500 Companies Reporting so far have beaten analysts estimates. In terms of some of the biggest names, weve got x on moral general motors, sony, and twitter all set to report. In new york, su keenan. The latest from the super bowl. It is all square at halftime in glendale, arizona. Two touchdowns apiece in the second quarter. New england, 14. The seattle seahawks, 14. Still to come, we are going to check in on china. More after the break. Depressing reading. Data from the u. S. And china in flame economic concerns. Markets are falling. Poised to fall. Chinas Banking Industry hit by the latest government investigation. Friends again. Why beijing did not really mean what it said about alibaba. As trading gets underway this morning in china, there is one story that may cause a flutter in stocks, the president of banking china giant minsheng resigns. A bit of a shock the youngest president , and now . The executives name is mao chow fun, and he has resigned according to a report. This comes amid speculation that there may be speculation involved corruption involved. A highly respected magazine in beijing reporting that the Disciplinary Committee of the communist party, the Central Commission for discipline inspection removed him as party secretary, as well as the banking regulator, and said he was taken away by the Discipline Inspection Committee of the communist party. If you believe that report, this suggests there may have been activity that ran against the regulations of at least the party. It is unclear at this stage whether there was any untoward activity that involves the bank. In fact, the bank out with a statement saying that the conduct or activity had nothing to do with the banks operations. They said maos situation had nothing to do with operations. In terms of the Market Impact we expect some impact on financial shares. This is tied to the president s ties with the son of it goes deep, doesnt it . It does. This is part of an ongoing corruption crackdown. No one is saying there was corruption committed at this stage. The fact that a major banking executive in china is stepping down from a key post at one of the most respected banks leaves investors curious. Perhaps something wider on this. We will be watching it very closely. It is unclear whether there is anything related to the bank or its operations. We will follow this story. Thanks for that. As for the reaction david has it. Minsheng very much on the radar. Very much on the move down. A share, we are down about 9 . We are paring back little bit of that, it certainly one of the first days in four years for the stock. The nearest comparable session would be in october of 2011 when the stock fell 10. 5 . These are the a shares. Down about 5 . Just to show you perhaps if there is any related Movement Across other banking shares, yeah down to bring percent. 2 . Citic bank, down 1 . Moving on a few other things we are watching in hong kong. Earnings what are they saying . They are seeing a substantial drop in net income. Shares down about 4 . They see a 2014 net loss, 1. 3 5 billion renminbi 1. 35 renminbi. China coal, you have a drop in output. You really see these three stocks you really see where the pain is being felt. You have call coal, metal, steelmaking, and of course this crackdown on corruption weighing in on earnings. Back to you. The Singapore Exchange is boosting its focus on china to sell more products. Southeast asias Biggest Exchange hosting its first quarterly Profit Growth and over a year. That is after record trading volumes. Lets bring in haslinda amin. What does the sgx plan to do about this event . What it wants to do is to get more Global Investors to use its Global Chinese products. It will boost its china headcount. It will hire a Senior Executive in china. It will also double the number of its workers there in the next few years. It will go beyond the current arrangement of just having sales and marketing offices in beijing. China products, they are important to sgx. It is an index. It attracts chinas 50 biggest stocks. Volume surged 180 last quarter. That helped sgx boost revenue, helping it postits first quarterly profit in over one year. Not surprising that sgx wants to boost that business, especially at a time when business at home is pretty stagnant. Sgx suffered another Trading Platform disruption in december. What is it going to do to address that . Well, an upgrade of its platform is underway. It is heeding the call from the authorities. Supervisory action against sgx will be taken if needed. Findings are due next month. Sgx has to tread carefully. There have been several incidents that could lead to a drop in market confidence. Or the near go, a penny stock rout wiped out 7 billion in just three days. Lawsuits followed. Last month, the suspension of a bluechip stock its shares have surged two days earlier. That was before a buyout offer from its parent company. Sgx has to take measures to deal of volatility, to deal with market confidence. Both are huge issues. Haslinda amin in joining us from singapore, many thanks indeed. For a closer look at some of the stories making corporate news, here is roz. Some drivers in the u. S. Will have to go back to the dealer to check for potentially faulty airbags again. More than 2 million vehicles that were declared safe are being called back after reports that the airbags could deploy unintentionally. Manufacturers include toyota and honda. Honda has issued a second profit warning in two quarters. Its net income target is nearly 10 below previous forecasts. Honda has cut exports in japan by 75 . In contrast, toyotas shipments are down 7 , but honda has been hit hard by the airbag recall. Mgm is pushing ahead with its expansion in macau. It already completed construction of part of a new kind a new casino that is expected to open next year. Expansion comes as mgm tries to recover from a tough 2014. Macaus casinos and did a decade of growth last year as chinas cut down and corruption cap to away. Those are the top corporate headlines this hour. China appears to be stepping back from a confrontation with alibaba after accusing jack mas company of failing to prevent the sale of fake goods last week. What are the Authorities Say no . Now . They issued this white paper saying, ali baba, you are allowing our merchants to run without the required licenses selling these fake handbags, accusing employees of taking bribes. Now they are saying, as is just a meeting memo. There is no judicial effect. Which translates to, we didnt quite mean it. We didnt mean it at all. We are seeing an easing of tensions between the company and the government overall. Today, they said that jack ma met with john miao on friday. The two have announced they are going to step up antipiracy and actively cooperate with each other. Weve seen a little bit of a piece peace breaking out between the two. This comes after ali baba came out on a hard defense last week. They had to take that step of preparing a formal complaint against the saic. They said they are working to get rid of these counterfeits. They have removed 90 million listings for products. Some say the risk of counterfeit goods existing, there are still some political risks, as well. This is a big win for private business in china. Its a case where size matters. It might be. We have seen it plenty in the past. We have seen wealthy businessmen who make it to these lists, and then they had a falling out with the government, and in the company just goes under. Some people think this could just be a oneoff for alibaba because of how big and how significant this company is to the country. They are talking about this world record ipo that happened last year. Theyre also talking about what it really does for the chinese economy. They are helping so many Small Businesses in that country, as well as shifting to this consumerbased kind of country, trying to move away from services and heavy industries. This is a company that identifies through its founder. It is really hard to replace a jack ma. There is a lot of leverage in terms of alibaba overall. Do not follow from the government, if you can help it. [laughter] yvonne man on that developing story, ali baba and the chinese government. A quick look at what is in store this week. We have a lot to look forward to. Australias central bank is meeting tomorrow after months in which a dozen Central Banks eased policy worldwide. Most economists surveyed say that the rba will stand pat, but a handful are calling for a cut in rates. China is gearing up for its annual Lunar New Year travel rush. Chinas transport ministry estimates of their will be over 2. 8 billion individual trips, as hundreds of millions of chinese return home to celebrate with their families. We were supposed to get sonys relate latest results on thursday. That has been delayed because of disruption caused by the cyberattacks. Sony will update investors on its other units, including smartphones and tvs. Other earnings will be released march 31. Finally, struggling Property Developer kaisa has to come up with a 23 million payment. Saturday was the end of the grace period. The ceo has stepped down. Still to come, an unexpected contraction for chinese manufacturing in december. Could there be more bad news . Hsbc will release its reading very soon. We are going to find out after the break. Welcome back. It is monday morning, february 2. A quick look at market plays around asia. A strong yen. The yen is at a threeweek high at the moment. That is the reason why stocks are falling. In australia tomorrow, the rba meets, and some economists are forecasting a rate cut, which would be the 13th centralbank easing this month alone. The 14th could the r. B. I. Of india. Wait and see for that. In singapore, what they call the lion city, is it rolling . Roaring . In singapore, they are seeing a bit of a roar. Up by 14 points right there. Here in hong kong, i can tell you hong kong occupy hk was yesterday. Certainly the markets are seeing a slight decline. Financials, minsheng is a crucial one, declining today after its president resigned following the investigation. That internal scandal is dragging down the financials. A fairly hazy but lb hot day in hong kong. Its get more on that from my guest the rbs chief economist joining me now to discuss. I have breaking news from china just to get this out. The final hsbc pmi has come in. Looking at my screen now, i can tell you we have 49. 7, below 50. 50 is the crucial mark. Anything above 50 is extension period anything below is contraction. Economists we surveyed had estimated a figure of 49. 8. More or less in line. As the chief china economist, this figure coming out, we read these all the time 49. 7, and the forecast 49. 8, so clustered close to 50. Is the chinese economy slowing, or is it just a blip . I dont think it is a blip. It is in line with what weve seen. I dont think it is going to change anytime soon. We are facing significant pressure downward on growth. That is not going to change anytime soon. Looking at how weak the sales growth is in china, and with a pretty significant inventory of different types of unsold and not finished housing. Is this property situation isolated to certain regions of china . It is worth in the tier two, tier three cities. Is it pretty bad . The inventory levels are really quite high in those smaller cities where, on the one hand, Property Developers have been less disciplined in recent years, just building because there was money available, and also demand is weaker because people the government would like to channel people to the smaller, mediumsized cities. People by and large want to live in the larger cities. The whole situation is less favorable in smaller cities. Exports slowing. How significant is that . It just doesnt help. There are very few drivers of growth that are really doing well, that are able to push the economy forward. We had pretty weak domestic demand. Consumption is ok. In china, consumption still cannot lead the cycle. Consumption tends to follow the cycle. Its also a pretty mediocre global picture. There are few engines that can really get the recovery going in the first half of the year. The Central Bank Cut rates november 1. How strong is the case for a rate cut very soon . I think the case is actually quite soon when you look at a pretty weak activity picture and on top of that we have relentless pressure, especially in the industrial sphere. Falling ppi, a lot of pressure especially in the Mining Sector and i think the pboc has indicated it is sensitive to those falling prices and would like to ensure that not too Many Companies get into trouble. I do think they will cut benchmark rates in the coming two months. That is a strong call. By how much . Something between 25 and 35 basis points. Being as experienced as you are, the international take on china is interesting. Davoos davos, they had a strong presence. It seems that the feeling about china around the world is quite a positive one, even though they are slowing down. There are far bigger problems elsewhere, and china has been a good engine of slowing growth, but nonetheless an engine. China definitely has major problems to tackle, longterm problems, changing the structure of growth, making sure that environmental and Energy Problems are tackled, but compared to the problems in some other emerging markets, china has sometimes still. There are also still major problems in europe. Definitely, china has major issues, that people look at china as a country where at least broadly on the economic front things are moving more or less in the right direction. They often talk about the new normal. In your eyes, being as experienced internationally as you are, what is your take of the new normal for china . Is it like 7. 2 growth . What is the perception of that amongst you and your colleagues . For me, the new normal in the way i understand it the cbo leaders messaging about it it is about growth trending down. It is not one number, but the number is different three years from it is not. Growth trending down. Trying to improve the quality of that growth and making sure it is sustainable. When you hear Senior Leaders talk about the new normal, it is on the one hand observing what is taking place, but also what do we need to do as a government in order to guide this . That is where chinas problems the still are, not so much about systemic sustainability this year, but more so, how can we make sure that china upgrades in a meaningful way . Thanks for coming in, the chief china economist at rbs, joining us on a monday morning. Plenty more to come this morning. You are watching on the move. We will look for the details on minsheng and kaisa. Dont go away. You are watching on the move coming to live from hong kong, streaming online on bloomberg. Com and on your mobile device. Chinas crackdown on corruption affecting all corners of society including seemingly impervious high and auctions. Shery ahn looks at how the moves are affecting the one market. 118,000. That is what topquality wine costs nowadays, or at least what serious collectors and investors think one bottle of this bordeauxs worth. Its other bs latest auction of this wine southern bs sotherbys latest auction of this wine [indiscernible] this comes at a curious time when bordeaux prices are about 40 off their high. Experts say with speculators out of the market, only serious players are left in the game. Weather in hong kong, china singapore, the philippines you name it, there are a lot of wine collectors now, serious longterm wine collectors. We want to reach out to these people. It is a little bit of the market maturing on the one hand. Two the disillusionment with the top expensive bordeauxs and their prices. Third, just intelligence about not spending so much on very expensive items and being more conservative in this economic mood. If they do spend, many are opting for burgundy which last year unseated bordeaux in market share at global options. People have been drinking bordeaux for a long time, and they feel like burgundy is the new collectible item. It is extremely rare and difficult to find. They all want to follow this new trend. In the long run, sotherbys says bordeaux will reclaim its crown because it is the safest investment. If any chinese buyers are shying away from bordeaux at the moment winemakers see possibilities opening up elsewhere. Myanmar is a young market showing great potential. Shery ahn, bloomberg hong kong. In the next hour of the show, more executive changes at kairssa. That is when on the move returns. A very good morning to you. I am john dawson and we are on the move. Weakness on the factory floor. Chinas production slows even further. Shanghai falls more than 2 . Going cold turkey. Greece says no more aid for now. The china released data over the weekend and the hsbc just released other data. We are taking a look at how this is playing out across the markets. 2. 6 . A lot of headwind as ego data is concerned. Eco citic bankdatedata this is how markets are trending across the area. We are coming off last week last week was the worst week in over a year. We are still reeling from losses there. Japan is also dragging everything. You have the dollaryen closer to 1. 17. Estoril you is ahead of the rb australia is ahead of the rba decision tomorrow. Interest rate swaps showing above. Special mention, sky marke ymart airlines, 80 drop in the shares. Limit down thursday, limit down friday. That is what we have for today. The Tokyo Stock Exchange is basically saying we are moving the down limit there. Minsheng bank. You have eight shares in hong kong. Not looking as bad as the start of the trade here. Down as much as 10 . 4. 9 . Fifth day of declines. Hong kong financials index i think we are down over 1 . It is looking a little bit better but not enough. You have now both of these measures for manufacturing in china showing contractions. That was usually the case last year. That is looking much worse than the official numbers. 49. 8 is the official number. Broadbased pain across manufacturing. Inventories sub index is also falling today. Back to you, john. As we heard, the president of minsheng has resigned. The latest on this story, what do we know theyre so far . He arrived to fame as the youngest president. 43 years old. Quite an accomplished pass. He attended harvard. Held senior positions within the communist party. Thats where the communist party comes in to the story. The magazine is reporting that the president to step down is under investigation by the Disciplinary Committee of the communist party. According to that report, he was removed by the banking regulator , and he was reportedly taken away by the Central Commission investigators. It is unclear whether any of this relates to the banks work his work at the bank. A statement said this is independent of the banks operations. No suggestion at this point of any wrongdoing within the bank. It is still too early to tell. The suggestion from this news reports is that this involves corruption. We have seen this and other highprofile institutions in china. Top executives being arrested really, for alleged corruption. Many of them being sent to jail and disposed of in terms of their communist party significance. We will watch it closely. It is the same pattern here. Absolutely. These executives, lets not forget, these are powerful positions in powerful companies. You certainly need connections and power in order to rise to the top at these big institutions. See anti the antidraft process is very strong. The resignation of another executive to tell you about. The ceo of kaisa has also resigned in the face of debt payment deadlines. This is the same sort of pattern again. The chairman of kaisa is that he is stepping down to develop more time to spend more time developing his career. He actually has been at the company for a long time. He is now though, at least the third senior kaisa manager to quit. To other officers left in december. This is related to problems the country has had with regards to suspended approval per projects in that area. There is a 30day grace. For their 23 million debt payment. Also in shenzhen there could be some kind of white knight savior. One seems to have emerged. They have agreed to buy a 43. 1 stake. It is about four units of k aisa stock. Shenzhens government has been trying to find sponsors for kaisa for some time. Or is a chance that this investment will help kaisa pay that missed payment. The decisionmakers are now the chairman and the board and they will speak to what this money will be used for. Kaisa doesnt really have much of a presence in the south part of china. Trading was suspended on friday it is still suspended today. We will see whether that is lifted at some point today. Many thanks, indeed. Other news today. Southgobi could be forced into bankruptcy after avoiding tax in mongolia. The three defendants worked there between five and six years. They were fined 18 million. They were one american and two philippines. Finance minister in greece has set a deadline for an international bailout. Eurozone members have indicated that they would be willing to offer athens a longer Debt Repayment. President obama is going after corporate earnings. He was a 19 minimum tax on money made in companies overseas. He is expected to announce a plan on tuesday. It could raise more than half 1 trillion over 10 years. It would Fund Infrastructure projects. 12 countries have eased rates since the beginning of this year alone. By the end of the day tomorrow there could be two more. Rba. Lets start with australia. We could see them cut rates according to analysts. There is more than a 50 chance that they will cut. That will come after 17 months of pause on centralbank action. If they dont do tomorrow, there was still an 88 chance that they will cut a march. We have seenn australia grow. Concerns over deflation while the whole world is in the race of cutting monetary rates in order to spur growth. With expectations of that cut, rates are falling values are falling. The r. B. I. In india. They also meet tomorrow. We may see an Interest Rate cut their. They are saying the repurchase rate could be cut to 7. 5 . This comes after a nethercutt from january 15. This comes after another cut from january 15. Daiichi life is saying that with oil sliding more than 50 , they have oil under control. We may see them cut. Other analysts, 27 out of 35 saying no action tomorrow. We will have to see what happens. Thanks, indeed. Rba and r. B. I. Both meeting tomorrow. Up next, the growing tide of Central Banks boosting economies. We will show you the exact friend when on the move returns. A quick check of the currency markets. We have the japanese yen at a twoweek high. The yen is trading at 1. 17. Some are talking about rate cut, some are saying they will wait until the month after in australia. Quantitive easing was the catalyst for a lot of activity there. South korea will likely be pressured to ease monetary policy. There is so much going on. You must be scratching your head. Trying to deal with the moving parts. If the r. B. I. And the rba 14 cuts this year. That seems to be the trend. The rba is a good example, when you have this kind of global monetary easing and a lot of weakness in currency compared to the u. S. Dollar, banks are saying maybe that is the way to go. Maybe i wont be pressured politically if others are doing the same. Is the market spooked . I wouldnt say that. I think most relevant for that is currencies like china. Letting it weaken off a little bit. For currencies like this, i think it is a little more relevant. You say the dollar is unlikely to decline. We have seen and we are seeing a general improvement in the account deficits. There isnt a sign there that things are extremely overvalued. In the shortterm, the rapid appreciation is understandable. I think the direction of logic is going the other way. Everyone realizes things are going to tighten this year. The question is when. It is natural for the u. S. Dollar. Moving on, which of the markets which of the emerging markets in asia currency are worst . Youre going to see a lot of weakness in indonesia. India has been saved a bit. There was going to be a lot that moves. It is going to be generally indonesia, korea, and some in taiwan. The indonesian currently is on a trajectory of weakness of the banks try to restructure accounts. The watch words are disinflation as opposed to deflation. How big a deal is this when you look at your facts . Which currency in asia is at the most risk for this . I would say the allowance of greater weakness in the currencies, particularly from september to midjanuary, i would say the currency market has done a lot of weight lifting. Going forward, i think the bank of thailand and bank of korea are probably at wrist given inflation dynamics there. A lot of the other Central Banks in the region have been on the easing bias. Even though the Central Banks may not necessarily wants to be cutting rates, thailand and korea, that is the biased political risk. Best trade in the next two month . I like taiwan. We had dragged away from the super bowl. We dragged you away from the super bowl. Which team is getting the most applause . I think the money is on the patriots. Steve ingalls will be very upset with that. Top labels going under the hammer in china. This is on the move we are back in two moment. China has cracked down on excess. It is affecting all corners of society. How the economic mood is affecting the wine market. 118,000 dollars. That is what topquality wine cost nowadays. Or at least, what serious investors and collectors think one bottle of this bordeaux is worth. One bottle fetched 4 million. This option comes at a curious time when bordeaux prices are about 40 off of their high. Only serious players are left in the game. Weather in china, in hong kong, singapore, the philippines, you name it. There are a lot of wine collectors now. Huge, longterm wine collectors. We want to reach out to these people. It is a little bit of the market maturing on the one hand. A disillusionment with the prices of bordeaux. Also an intelligence about not spending so much on very expensive items and being more conservative in this economic mood. If they do spend, many are opting for burgundy, which last year, exceeded bordeaux. People have been drinking bordeaux for a very long time. They feel like burgundy is the new collectible item. They all want to follow this new trend. In the long run sotherbys says bordeaux will regain its crown because it is the safest investment that. Although buyers are striving away from bordeaux at the moment investors see potential in the future. You can get more on that and all the days top stories on the bloomberg. App. The latest news from the super bowl, the seahawks were tied with new england. Im going to put them ahead 2414. If the seahawks hold on, they will be the first to back champions in 11 years. Good luck to whoever. We like hearing from you. If you use twitter, it is now even easier to stay in touch with us. Email ayvonne or had linda or tweak them. Or haslinda or tweet them. There are extra ones which include myself. I am not smiling as good as the rest. I promise you, i will reply or comments. Up next, australias Prime Minister tries to regain support after knighting Prince Philip. We will be in sydney. Markets are falling as the economic Warning Signals increase. Why beijing did not really mean what it said about alibaba. A Canadian Miner says its facing bankruptcy. This is a surprise. 3 2, one, you got it wrong. 80 down. You look at these offers. It went down all the way from the close yesterday. Look at where the price is right now. ¥29 per share. Japan airlines, what is the story here . They plan to raise the dividend payout ratio from 20 . Nikkei newspaper staying on earnings. It may reach 3 million. Staying in japan, securities were down. Underwriting was better. Overseas pretax loss ¥2. 5 billion. Also in earnings, ¥161 billion predicted loss for kansai. You had week data from the u. S. You are seeing money flow into safe havens right now. Let me and very quickly here on the dollar. It is higher ahead of the rba decision. It is too complex to call. Tony abbott is remaining defiant. He has been hammering his report to date. He has been pointing out a number of things that the government promised and delivered. Getting rid of carbon tax and mining text. Ax. He has not been mentioning the things that are getting them into trouble. Most recently, the symbolic knighting of Prince Philip which subjected him to harsh ridicule last week. He mainly wants to reduce the deficit, get the budget back under control. On that plain, he abandoned his paid parental leave scheme. He did not touch on his leadership at all until the very last line of his speech when he said you elected us you elected me to set up australia for the longterm. The first question to him was have you considered resigning . He said no. We were elected in 2013 because the australian people rejected chaos. That is why we were elected. The australian people rejected chaos. We are not going to take them back to that chaos. We really are not going to take them back to that chaos. It looks like he has unleashed some pretty unpleasant chaos. What sort of impact does that have . He cant possibly be defiant about that. It was telling that he did not make a single appearance in queens land during that campaign. It has now become known as knighthood. The liberal government had been voted out to just seven seats. They never thought they would be coming back into power after one term, and yet, there they are. If we take a look at some of the recent polls, it is clear that the state may be something of a weathervane for what is happening nationally. The preferred Prime Minister we have is bill shorten versus tony abbott. He is in trouble. Todays beach was really all about rebranding himself. He has no intentions of going anywhere but he has a lot of work to do to win back the electorate. Other stories making headlines around the world this monday morning, the australian journalist imprisoned in egypt has been released. Peter greste is seen on the right. He was arrested with two colleagues. There is no word of the fate of the other two broadcasters. A video released over this weekend showed the body of the second japanese hostage. Crowds gathering outside of the Prime Ministers office to mourn the death. In a statement, japan would work with other countries to make terrorists atone for the killings. Thousands of prodemocracy protesters marching in the first major protest since december. They demand that china make concessions. China appears to be slipping back into confrontation with alibaba after accusing the company of the selling fake goods. One of the authorities what are the Authorities Saying now . The issue was the accusation of alibaba to allowing manufacturers to operate without licenses. Now, they have issued this statement that this was just a meeting memo with no judicial effect. This basically translates to we didnt quite mean it. It is shocking to see the government dialback its criticism. Jack ma met with industry and commerce regulators. They were able to come up with an agreement. Alibaba will strengthen the anticounterfeit scheme. Peace has broken a little bit. Ali baba came out last week saying we were targeted and they had no choice to take steps against the saic. They have worked in the past to get rid of counterfeits there. Could you say this is being construed as a rare victory for big business . I would say so. You have seen this in the past. Plenty of wealthy businessmen making it on a rich list, having a falling out with the government, and Vendor Companies go under. This might just be a oneoff. Just because of how big a company it is. Not only do you have the ipo we saw last year, it is also fulfilling an essential function for chinese economy. They are helping so many Small Businesses in that country and you are helping shift the economy from a Consumer Spending one fromt to one of a industryheavy one. Singapore exchange is trying to sell more product. The Biggest Exchange goes its first quarterly Profit Growth in more than a year. Lets bring in haslinda amin. It wants to get more Global Investors to use its Global Chinese products. It will boost its chinese headcount. It will hire a Senior Executive in china. It will also double its workers in the next few years. It is going beyond the current climate. The index tracks chinas 50 biggest stocks. Not surprising that sgx wants to boost business. It wants to upgrade its platform. It is underway. It is heeding the call from the authorities. It was issued a warning. Supervisory actions against sgx will be taken if needed. Sgx has to be really careful. There have been several incidents that could lead to a drop in market confidence. The penny stock route caused huge disruptions. Sgx have to take measures to ensure and put a cap on volatility and anything that could lead to a loss in market confidence. Thank you for joining us from singapore. Still to come, southgobi is under increasing pressure after a tax verdict in mongolia. We will tell you exactly what it means for those three men who are now facing five to six years in prison. Southgobi says it could be forced into bankruptcy after being convicted of evading taxes in mongolia. Three men were arrested after a threeyear investigation. Southgobi is partly owned by turquoise hell. It will appeal. Southgobi is partly owned by turquoise hill. Jay, many thanks for joining us. Who is to blame . Let me phrase it this way. Three innocent men went to mongolia prison on friday due to systematic Human Rights Violations by the Prime Minister. Some people are calling this humans rights violations. I call it nothing short 80 hostage situation. Here is what is typically happening. The case is brought oftentimes on big companies. They allege outlandish claims against the target companies. Joining forces in parallel, the state apparatus launches a criminal investigation against multiple employees of the company. Most but not all are asked patriots. Most but not all are asked patriots citic bank citic bank most but not all are expat riates. Basically, they free the hostages when others handover whatever they want. It is not limited to the situation. Are they scapegoats . What is the appeal process . Do you see them being freed anytime soon . Lets look at this case in particular. Southgobi is an economic target because of its success in earning revenue and its minerals licenses. There is also it is also a political target due to how they run their International Business which is out of local governments control. If you look at southgobis statement, they destroyed the local opinion. Another local mongolian Honor Company does as well. Someone is quoted as saying there was deficiencies in the trial. Now three human beings sit in n jail. In a country where everybody can planes that there is no transparency this is transparent. You ask what we can expect to see. The expectation is that the president will pardon justin as the two others by this friday. The Prime Ministers have changed during this case. The one constant has been the president. He is aware of this issue. This is a very big stain upon the president s platform. It threatens to knock him off the international stage. It is not so much about him wanting to you mention the international stage. Lets talk about the facts. If the mongolian president is not intervene, it is going to lose every kind of foreign investment. The perception is crushed. If they dont deal with this quickly the followup for mongolian business is dramatic. The fall out for mongolian business is erratic. Foreign investors have already lost confidence in mongolia. I want to say lenders too because there have been big banks here who have held people in hostage and have experienced this as well. Lenders are expected to take responsible action. But he give you some examples on how bizarrely impacting things. Important meetings should be taking stateplace and they are not because people are afraid to come into this region. Litigation and arbitration is being pushed offshore. Mongolia cant meet the expectations of their own citizens. The problem for them is unemployment. In the same polls they say they trust the private sector to provide the jobs and to bring the money in and help them out. Another factor worth bringing up is bilateral relationships with their neighbor countries. This is receiving attention on the eve of the americans giving the Millennium Challenge Account a significant grant to mongolia. Washington is being briefed on what is going on here. You can rest assured that the United States, who is deeply concerned about human rights, is not going to let three people sitting in a mongolian jail pass them by. On that note, thank you very much for your time. Will the Indian Central Bank make its second rate cut tomorrow. It is february the second. These are the top headlines. Minsheng shares falling as much as 10 . The president quit and the firm is being investigated. They are saying he stepped down for personal reasons and have nothing to do with the banks operations. The ceo of kaisa has also resigned. Australias centralbank meets on tuesday. Most economists expect the rba to stand pat, but some want a cut in rates. What are we expecting . Some are saying we might see a redate cut. Some are saying they will hold off. Research predicts that the governor will ask for cuts. The expectation is that the central bank will lower the repurchase rate which is essentially the rate at which banks drop in the event of a crisis. They will lower its two 7. 5 they will lower it to 7. 5 . We saw a lot of macroeconomic data here in india on friday. After the government updated the data the governments fiscal deficit target has exceeded the budget. It came in at 100. 2 . All eyes are of course on tomorrows reaction. That is it from on the move. Joining us today is john ward. This is bloomberg television. Asia edge up next. It is the middle of the asian training day it is the middle of the asian trading day. This is asia edge. The top stories this hour. Shanghai tumbling more than 2 . Skymark falls 80 after filing for bankruptcy. Why the knighting in queensland could be a defining moment for australias Prime Minister. The super bowl goes down to the wire. The latest on that and more on this monday addition of asia edge. We are still feeling some of the headwinds coming from the u. S. On friday a 1 drop or more. That is what is happening across the overall markets today