Markets. To australia. Sx 200 is starting the day off in the red. Pretty much flat. New zealand this morning looks like this. Gaining half a percent higher. We are seeing strengthening in the kiwi. 82 u. S. Cents. Open cutting down to the in korea. Japan is close to celebrate the emperor first base. Apple finally has signed the longawaited deal to get icons iphone sellthrough china mobile. We are joined with the details from jays beijing. What does this mean . It means a lot to both players. For bothy hard fought sides. Six years of negotiations involving the top echelon of both companies. Tim cook has made this to hammer out the deal. Coming to fruition. It will give apple access to customers on chinas biggest network. In addition to those already using the iphones of the letter. This is quite a head start. There was a fever pitch for the iphone. That has cooled off a bit in china. I will get to the market share in just a minute. Is offered this since march 2012. There was pressure for them to strike a deal. This highend spending cuts in china. The big stumbling block has presumably over the homegrown cdma technology. 4g is now being fully rolled out. T is td ltd no others have adopted the cda cdma platform. They had refused to make a separate handset for this technology. China mobile always was the big prize. It has 700 60 million wireless subscribers. About 62 of the total users, apple has seen the marketshare dwindle. Done this. Els have other domestic players are outselling the most expensive phones. This is important. It removes the competitive disadvantage that we had talked about in the beginning part of this report. It is drying in higher and subscribers. China mobile has announced it will offer four g in about 16 cities by the end of this year. That will be a big boost as it rolls out the higher end smartphones beginning january 17. Fin preordering begin preordering this month. Thank you. Lets remain in china. To cash crunch continues deepen, sending them to the exit. We are joined with the details. We have watched this a merge all last week. The fear remained steady, still. We have seen that things will get better. These looking at borrowing costs in china. Is the liquidity situation that is continuing. Please are above 8 . We are still very far from this peak back in june. For an investor you are really thinking ahead. Will take my money out before things get better . Here is what we have. We were at seven percent on thursday. In market is is not exactly very good spirits. There is no indication that they will be injecting cash. A 10thd be heading into day of declines. This is a picture of the overnight in one week. These are the Interest Rates. Increasesthe overnight. I forgot what it meant. Keep in mindnt to that as he moved toward this thats there is upward pressure on this. Well try to hoard cash to meet these quarterly and regulatory requirements. You can think of it as halloween as kids expect there to be free candy. They did up the reserve requirements for banks. There is that higher standard of regulatory reserves with garments. Riddle me this. Is this a trend people should be worried about . This a year in phenomenon where things are looking at their requirements. They are keeping that in reserves and companies are hoarding cash because they need it. They are withdrawing liquidity from the market. Is it seasonal . It is a seasonal factor. Obviously. Companies need cash. Of thelook at the views top brokerages on the ground in china, and they are mixed, it does give you an indication that no one knows where things are going. Even though there is a swordfish of cash, Government Spending will plug the hole. Limitednk they will see repose which could send the signal that they will not let the race callahan. Does not mention. This is where they are supposed to do given the amount of debt in the system. Theres only one way to do it. True loosening of allowing it to be more liberal and be more market flowing. Other stories making headlines, japan has announced a record budget for next year. They have adopted a 920 billion dollar proposal starting april 1. It will be submitted in the new year. Shinzo abe i want to boost spending on Social Security trying to contain japans debt burden. Bytbank recently this and maybe pursuing another u. S. Company. The ceo has spoken to a number of banks about buying a majority take in t mobile u. S. They may pay 20 billion for Deutsche Telekom. Group is planning to sell more than 3 billion worth of assets to boost cash reserves. Car businesses will remain intact. Hyundai will sell off three Financial Companies and restructure some shifting operations. It will focus on the shipping, logistics, and machinery business. Imf has handed the u. S. A boost of confidence. It may raise the forecast. Lets find out why. They are very bullish. They are shut down and the government. They are tapering. It is a very well communicated plan. We see the fed having taken well deduction considering the tapering of the program. Those are good signs. We see some good numbers. Unemployment is going down. That gives us a much stronger outlook for 2014 which brings us to raising our forecast. The forecast for next year is 2. 6 . What happened this year is 1. 6 . It is much more bullish than it was this year. If you take a look at the latest data, that boosts confidence as well. This comes out with the nonfarm payrolls. We will follow. Amber and hand over the reins. Have arty started it this month. It could be a progression. Tapering has begun. Thank you so much for that. Our next guest is advising clients to bet on japanese and u. S. Stocks next year. Were going to hear from oc bc returns. St up welcome back. Joining us from singapore is the Vice President of Wealth Management at oc bc bank. It is great to see this morning. A wind down for a lot of people. It is a wind down as well. It is starting to taper in january. Among the equity markets are not very positive on asia. Asian markets have benefited. By the same token, these are probably more so. Is this a warning then to take cash out the table before that happens . It depends on your timeframe. If youre looking at this it is even. Inflation. Et price policy headwinds. Modesty polyps. Monetary policy picking up. In the median term if you look at the next or four years, valuations have come down. We do not further fullback to the market. What do we need to look out for . We are most positive on the north asian markets. This is leveraged to what is happening in the developed world. Have done extremely well over the last three or four years. Affected by the account deficits. Within asia there are markets like taiwan and korea. Lets talk about japan. Theyre trying to boost things up. Toyre trying to get it up 2 inflation. What are the challenges to overcome . The key thing here is similar to what the Federal Reserve faces. The bank of japan has announced liquidity injection. The key thing is for this to translate. We have not seen this happen in a big way just yet. At a sixonfidence is year high. Inflation numbers have picked up. The key challenge is to make sure that wages go up. Himself wills start putting extra liquidity into the economy in terms of bank lending. Euphoria is there. At the end of the day it translates real action. You mentioned chai on. China. Even after the injection of dollars, what is your concern for china . I think they will eventually be normalized. China is going to a transition. This is going to come in at 7. 5 . It will likely slow down. Think the markets have come to realize that. This translates for china. Nor china cannot continue this. Theyre able to implement the reforms. For china ittive will be positive for the rest of asia. That is certainly something to keep a watch on. More pressure as they vowed to drive her out of office. The latest on the protest when first up returns. Antigovernment protesters have stepped up pressure in tiling, bowing to drive the Prime Minister from office. The opposition said it will boycott the upcoming elections. No surprise there. Lets get the latest. There is no sign of an and. It is quite worrisome. You are right. Mentioned, this is escalating. This could bring you to a flashpoint. He said this is essentially a declaration of war by the democratic party. Called it regretful. She said the aim is political reform. Cannot be achieved without an election. Today the government expects 60,000 protesters at various sites in the capital to demonstrators calling for par minute parliament. They want to erase the political influence of the family. She was a former premier ousted. Lost everyts have National Election. They have failed to make inroads in the most popular northeast. Here is the question. The very revered king of thailand has given his stance on election day. What happens to the election . Will still proceed . The vote will go as planned. It must be held within 60 days of parliament. It was dissolved on december 9 after the democrats resigned to join the demonstrations. Based on preliminary talks and 45 parties are ready to participate. I want to take a look at how markets have responded. This is down 10 . The world secondworst performer in that time. This continues to weaken. It is pushed down by the protests. Spooked byave been recent developments. Seeking more clarity before wanting to put money back into the country. A slow burn civil war brewing that will be scaring investors, no doubt. Some other stories making headlines around the world. Bangladesh has charged 13 people in connection with a fatal fire with a garment factory. 100 workers died in the blaze. Weremergency exits actually locked. Via cues include the chairman and the managing director. Many of the accused executives may have fled the country. Has vowed totycoon campaign for Political Prisoners in russia after he was relieved by president putin. He spoke at checkpoint charlie in berlin. He rolled out a career in politics. He would not Fund Opposition parties, saying it is dangerous for them to receive those funds but that he has made these with his former Business Partner. Astronauts on the international removed aion have faulting pump ahead of schedule. Only two spacewalks may be needed to replace the pump rather than the three year. It broke down 10 days ago, forcing them to their off all equipment. Spents lunar rover has the weekend taking photos of each other. Before they resume. This reached damon on december 14. They say it will spend the next three months looking for Natural Resources while they will survey the landing fight over the next year. Not always anis easy upside. Stay right there. You are taking a live look at victoria harbour. We are up minutes away from the trading. He is 80 today. On your television, you are watching first up. A victory for apple in a tough market. China mobile will sell the iphone for the first time. We will look at the apple of fact as foxconn signed a deal with blackberry. tis the season of good cheer. The imf turns more positive on the u. S. Economy. Go monday morning to you. Lets get straight to the markets. The has now slipped into green. A little bit of christmas cheer. This is a fit of one percent higher. The Australian Dollar pretty much flat. New zealand this morning, lets take a look over there. It is maintaining games. Half a percent higher. This is at 82 u. S. Cents. It is strengthening this morning. Were counting down to the opening in south korea. That is half an hour from now. Japan close for his birthday. Apple has finally signed a long awaited deal to get this. Stephen joins us with the details. China mobile and apple hoping to bring up a win here. Was this long in the making . Six years plus of negotiations by ma coming to fruition. Access togive apple the Wireless Network. Theyre using iphones on the competitors here in china that had a head start. This is a big start of teleconference march 2012. The big stumbling bart block was china mobiles building out their own home cd. He is leading this for 4g. No other ones globally have adopted this homegrown platform. Reluctanty have been to do so. China mobile is the top prize for apple in china. Customers. Wireless they have seen the marketshare dwindle from that height in the 2009, 2000 and eight as cheaper models and other domestic shown this one. They are so at the highend. That is why china mobile liked it. This is an important deal for them. Smaller rivals and drawing these high in subscribers. It faces the first profit declining this year in at least a decade. This is coming at a right time. Were anticipation of this imminent deal. He said the deal is potentially negative for china unicom and positive for china mobile. Users are unlikely to renew their contract at expiry. What is going to happen, as a china christmas day, they can put in this for the iphone. January 17 is when they can get their hands on the five c and five. They have announced they will offer four g in 16 cities by the end of these this year. Can see a lot the migration over to china mobile. That is the hope. What about apple . A mobile deal could be good news for apples bottom line. To ant also equates earnings windfall . For more we are joined by bloombergs tech reporter. He has done some research on what this means for suppliers. The main thing really is the headline we found is the companies have had the largest exposure. Those that got more of this actually had declines this year. Companies have actually fallen quite a lot. He has not done fantastically this year. Most of the devices have not done that well. Have this. Es you get them as a customer and youre set for life. Not necessarily. Isnt that true . Werent they once considered the golden client, the customer everyone wanted . What has changed . What has changed is that samsung has come along. They have come along and they have taken away market share from apple consistently over the last few years. Apples revenue is still growing at a much lower rate than it used to. This is what they have been on the largest. Theyve never been not fantastic. You get into the older bucks of apple in the supply chain you can get some really good growth for the next year. You can do one phone for year. You can get in that the makeup for it. Is taken over a lot of that growth. It is not being lead by the news anymore. The if it remains shiny. Thank you for that exclusive research. Foxconn is one of the big suppliers. The story could be very interesting for those of you with that in the portfolio. For blackberry shareholders, a rare rally on that taiwan foxconn. He can help turn things around. Zeb joins us with more. We are talking about the biggest monday gain onegame a oneday gain in blackberry in the u. S. Market. Not a bad performance. Lets face the music. Blackberry has had a very Difficult Run as of late. It cannot even find a buyer in recent months. John chen turning the business around. He seeks an alliance with foxconn. Foxconn will manufacture blackberry smartphones. It is critical because it takes the inventory off of Library Books and puts it on the foxconn books. Investors will not have to deal with continued inventory write downs. That is one of the critical things he is focusing on. Get rid of these nonperforming handsets. Inventory. This finally get things to levels that are sustainable. It refocuses the company at a higher margin. It does not guarantee success. Just look at the quarterly performance. A four point 6 billion write down for blackberry. For foxconn what this means is that apple is diversified a little bit. It said it wants to create its own brand of products. Now with blackberry under its belt, creating projects for them, this could be a breeze. What were hearing is that there is a prototype in the works for the new but very models for indonesia. This market has been very much a High Performer for blackberry. We understand they are already working on a new model which they will rollout in the Indonesian Market and for mexico. In queue for that. Some other stories out there. Softbank recently bought sprints and now may be pursuing another u. S. Phone company. He has spoken to a number of banks about buying a majority stake. They pay 20 billion for the Deutsche Telekom 67 of the operator. Offered to payn almost half 1 billion after claims of a brief a breach of contract. She denies this and said it on the applications in a deal that they developed. Imf is growing more bullish on the u. S. And is more optimistic about the recovery. Christine lagarde said last week the budget deal to start winding back stimulus is about the future. We see the fed taking some very well production considering the tapering of the program. Those are good signs. In addition to which, we see some good numbers. Growth is picking up. Unemployment is going down. Strongers us a much outlook for 2014 which brings us to raising our forecast. Stay with us. The chinese that mark is under professor. The government will end this. We will take a look at what to after he joins us after the break here in hong kong. A few december deals gave a big boost to the ipo market in hong kong as the year wound to a close. Lets wrap up the past 12 months and look ahead for 2014. Joining us is the Asia Pacific Ipo leader. We have been talking about the concerns about the shy board rates picking back up to 8 . Is seasonal. Oncern part is may be trend. Also, people might be concerned that you have all these ipos coming up next year which means lessollars are going to be in the broader pie. What are your thoughts . Veryght now it is different from the prefinancial crisis. Now the government is very powerful. Of changedo any kind of policy, they look at the future. They are so fast and changing their policy because of the strong government. Probably in case of any further problem a real fall down in the market they would come up and do something to recover the market. I have your report right here. The global ipo trends for 2013 and 2014. What are you sitting in the ipo space for 2014 . What is your key take away . You can see in general this is a great sign for recovery. It is a fast two years good year. It is a porting the recovery of the ipo market. We are still quite bullish. We hope while we can see that, a lot is to undergoing from last year. We will put to the first. We have to look at the first half of the year. If you look at hong kong, the biggest ipos are bright among them. 3 billion raise. It is held back on ipos and still we saw asia leading the pack here. Why . It is not just from the change of the policy. He gets in for the market. They were in some company.