Having his ratings cut. A source saying a debt equity swap may be on the cards if the charges surpassed ¥400 billion. Backhilippines pushing after yesterdays rally, the shanghai composite down. 2 . Given currency markets the weaker fixing from the pboc, a softer currency today, the yuan there. A stronger day for the yen against the dollar. Thats dollaryen up since november. Trading below 117 as the greenback fell against most major currencies. In the oil space, continued weakness there, oil retreating from an 18 month high after Industry Data showed u. S. Stockpiles in the u. S. Rose last to of forecast showing inventories fell. We are close to what we are expecting from opec and other Major Oil Producers next month when it comes to those promised output cuts. Rishaad thank you very much indeed for that. News,get to first word shery ahn. The bank of japan has released comments and opinions from its policy meeting that relate to the discussion before when one unidentified member admitting 2 inflation target remains a long way off. Another opinion backed that up, saying japan is at a critical juncture to achieve its price goal. One member as optimistic, saying rising private consumption is evident. President elect donald trump has accused the Obama Administration that the runup is being hampered by inflammatory statements and roadblocks, abstention the u. S. On the United Nations vote criticizing israel. Relations between israel and the president obamas time in office comes to an end. John kerry says hes in the middle east is under threat as israel continues to build settlements in the occupied west bank. Benjamin netanyahu it back, calling the comments unbalanced and saying the focus on settlements is ms. God. Is misguided. Thehe two state solution is only way to achieve a just and lasting peace. It is the only way to ensure israels future as a jewish and democratic state. Living in peace and security with its neighbors. Israelis do not need to be lectured about the importance of peace by foreign leaders. Israels hand has been extended in peace to its neighbors from day one, from its very first day. We pray for peace. We work for it every day since then. South korea has cut outlook for 2017, blaming tepid domestic consumption and weak exports. The government expects expansion says6 , down from 3 , and it will maintain loose fiscal policy. State companies will be pressured to boost consumer and business sentiment. Korea is struggling with record high youth unemployment and household debt. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Rishaad two Japanese Companies making headlines. Dragging on for toshiba, but first, some rare akata,ite for tec shares soaring as a settlement nears. Our automotive reporter joins us now. Is it feasible to get to a deal here soon . Is an important step on tas path towards restructuring. It is key and important to potential bidders as they go into the final round of dude diligence. Of due diligence. It is now aiming to name a finalist and put out a Restructuring Plan by the end of theh, so it looks like january to february timeframe is likely for takata to sort out those issues. Rishaad right, well, so, you know, takata says this report does not come from them. Does this company have the Financial Capacity to pay up to 1 billion of penalties to the u. S. Authorities . May not have that much but it has been reported that all the bidders have proposed to offer more than 1 billion and maybe up to 3 billion to pay out to the company, especially if takata doesnt have to pay the intlement fee to the doj advance, but over a span of several years, then that should not be a problem for takata, but the real problem is that billions of recall costs facing takata as well as automakers. Takata has to decide with the automakers its own portion of the recall costs, and that is the real burden for takata as well as a final bitter. Bidder. Look at lets have a one company having a torrid time of it when it comes to the market, toshiba. Dont get worse than this, wiping out all gains for this year and a matter of three days. 26 , the most since 1974. 20 aad we had that fall yesterday . What happened in 1974 is what i want to know. We have seen Credit Ratings agencies lower their Credit Ratings for toshiba come all three saying that shareholders will suffer equity erosion. The downgrade reflects moodys deepening concerns over the sustainability of toshibas nearterm liquidity. It goes on to say the charge and toshiba being on the alert list would limit its ability to increase capital. The companys main banks will discuss financial support, including possible debttoequity swaps. This is following the statement that toshiba made about its westinghouse unit and charges related to that because toshiba of 78d it had a charge million. Now it will be more. The total has not been finalized, but probably in the billions and would affect earnings. Putting tissue offer this latest trading week. Rishaad absolutely shocking. Still to come, the bank of japan revealing one members dissent over the shape of governor kurodas yield curve. Details from tokyo on that. Positive outlook for emerging asia, that is next. A quick check of the business flash headlines, president e of japans vegas Advertising Agency to quit, taking responsibility for the suicide of an employee who were excessive hours. He will go after the Tokyo Labor Bureau said it would referred them to prosecutors. Has been barred from logging more than 65 hours per month and overtime, down from 70. , the hut, taco bell, kfc Company Continues to sell franchises as a part of a plan to boost growth. Refranchise in turkey, a quipping and recruiting the best restaurant operators. Yum brands increasing ownership by 98 by the end of 2018. Says it must cut costs to maintain profit margins. None of the big five has more than the 15 share. By cargo planse to expand overseas, raising 1. 4 billion dollars in its ipo this year, the First ChinesePackage Company to list in the night states. Fitch ratings saying Economic Activity and the asiapacific will broadly hold up well next year as markets are hit rise sluggish world trade. Great to see you. Give us an idea of your thinking there. Emerging asia will hold up well in growth relative to peers , but there are risks on the horizon stemming from political outside and within the region, and Interest Rates that are tightening financing conditions and putting pressure on the dollar and downward pressure on asian currencies. A lot of this is speculation, because we do not know what will happen in the white house. Lot ofe is a uncertainty, but the Trump Administration plans to boost infrastructure spending, cut taxes, so we are expecting a widening of the fiscal deficit. The fed has just raised Interest Rates, and the signal is that more rate hikes are in the pipeline for 2017, penciling in two rate hikes, but there could be more if reflationary policy results in a pickup in core inflation. Rishaad trade is the real issue as well as we get more protectionism, so how does that work out in your forecast . Something else in the mix, is trade with the u. S. As important as it was 15 years ago . Trade hasgional become more important, but many countries are heavily dependent on the u. S. As an export market. Tighteroncerned about trade policy, protectionism, and outright reversal of globalization given politics in the u. S. And europe and the impact on the asia region. There is a risk of a trade war with china, which could have dramatic spillover. In asiarging markets have room to expand further, countries building infrastructure, unleashing reforms to unlock some of their is whyal growth, so that emerging asian growth will hold up in 2017, domestic demand overtaking the weakness from the trade environment. Was one this year notable for china and its Stimulus Program and investment spending. The chances of a hard landing in china are far less than this time last year, so that must be a good thing for the region does a whole. Stability is good coming out of china. Are relatively confident that a hard landing will be avoided in 2017. Growth is coming down. We have growth at 6. 7 and 2017, declining next year, but we are concerned that the policy settings in china continue to over longterm macro stability, so the financial and are continuing to grow, but the risks over the medium term in china whether it can achieve that soft landing and whether it can balance towards domestic demand and a smooth way. Rishaad when we look at these countries, all the best intentions in the world get undone and scattered by politics quite often, dont they . It could be the worst enemy for this part of the world. What about political risks . Right, we have talked about the external political risks with globalization, the reverse, the risk of protectionism and trade wars, but there is a lot of local political risks. We have the impeachment of the president and korea, the lingering scandals in malaysia db, political transition with the passing of the king in thailand, and even in indonesia, protests in jakarta around election of the governor. We are concerned about governance issues in the philippines and the directions of these areo all hot spots that need to be watched. We still have geopolitical tensions in the south china sea, so this adds an additional risk and a headwind to growth for the region that we will be watching closely and 2017. India, Narendra Modi swimming along nicely and tell the Monetization Program he put into place. How do you see that working out . It was unexpected, i and uncertainty. It is likely to have a Short Term Impact on growth. We have shaved a half point off of indias gdp growth, but still at 6. 9 percent, still the fastest country in terms of growth in the region. Over the longer term, this will pass and the point of this was to bring in revenue for the government by bringing in the informal economy into the official tax net. We are skeptical it will work the way it was designed, but lets give them the benefit of the doubt, and it has not changed our medium out term for india. Rishaad thank you. Have a fantastic new year. Coming up, investors welcoming reports that kate spade may be going on sale. Details are on the way. U. S. Markets ended lower, that the luxury bags sector was a bright spot in the wednesday session. 23 rise on reports of a sale. Though u. S. Markets closed in the red on wednesday, the luxury back sector was a lone bright spot. Kates fade rally 23 percent on reports it is looking for a suitor. The reason is that kate spade is working with an Investment Bank contacted several possible suitors. There has been an ongoing desire for consolidation in the industry as investors are eager for something to happen. Shares,up are bought and now piled on the pressure saying that kate spain would make a great acquisition candidate for the lifestyle accessories category. We strongly suggest the board consider this option as public Equity Investors have all but given up on the kate spade story. As for possible buyers, that. Ncludes coach and michael kors they have been looking for acquisitions. Both companies rose on the news. Other possible suitors is the owner of calvin klein. Meantime, Mizuho Securities says it could hit 21 23 per share in any acquisition. At 17. 86 alose share. Macau has been trying to reinvent itself with a hollywood themed resort and a half sized ifo lower. It may be bearing fruit. A half sized ifo power. I fall tower what we are seeing in the latest numbers from a cow is that overnight visitors, more than one night, have risen 10 . Samedayme time, visitors, gamblers, has dropped 10 , so there has been a shift towards people coming for tourism related activities. They are moving past just gaming in macau. Is, is the question macau recovering. T has had a horrible downturn are we seeing any green shoots of recovery . Analysts are expecting game inecover and rise 7 2017. This recovery will be pushed by ordinary, middleclass consumers, tourists, and less of the high rollers from china, which took a big drop two years ago when the Anticorruption Campaign began. The is what macau and casino zone focusing on now, families, people with kids, grandparents, looking at macau as an overall Tourist Destination and not just a oneday casino trip. Rishaad can macau become a Tourist Destination and be known for something besides casinos . Yes, i think that is what the macau government of authorities and the casinos hope, which is why they have poured money into , theing the eiffel tower hollywood themed casinos, rides, and the model here is las vegas. And las vegas is from nongaming related activities, so las vegas is seen place for concerts, shows, parties, but macau is very far away from that. While that is the model, they do still have a long way to go. Rishaad thank you so much for that. Macau, the future in deed where it has come from as well. Its a day where we are seeing shanghai,hong kong, japan all headed in the same , no positivity from the u. S. With equities they are falling back. Yen strengthened earlier, and a volatile year for these Financial Markets here and asian equities currently there not playing ball with the bulls. Japanese shares heading for their biggest drop in more than a month or thereabouts. A look at the all strain market, the benchmark dropping from the highest level we have seen there since august 2015, so trading thin across the globe. Up next on Bloomberg Markets, fintech, the industry profitsngly looks for by cutting costs. Kong. Is 1029 in hong i am Rosalind Chin with first word headlines. The plunge continues for a third day, shares wiping out all games for to sheep 2016. The stock was up 80 going into christmas break, however news of a writedown in the billions poll the rug. The company is worth less than profitsperating downgraded by rating agencies. China is downplaying trade growth targets, deciding not to announce one for a second year. The minister of commerce declined to set a target for trade in 2017, something that indicates beijing is less obsessive about fixed goals. Xi will accept growth below 6. 5 . Oil has slid from an 18 month high on reports that stockpiles in the u. S. Have risen. Him in cuts will reduce the global glut, but have strengthened sense opec and nonopec producers agreed to curb output. The Actress Debbie Reynolds has died at the age of 84. She passed away on wednesday in los angeles, a day after her daughter, carrie fisher. The stress of his sisters death was too much for his mother, who suffered a stroke. Debbie reynolds start alongside gene kelly and was nominated for an all square in the and single molly brown. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Rishaad this is Bloomberg Markets asia. I am rishaad salamat. Lets see whats going on as we head towards the japanese lunch break. Sophie thanks. As we go into lunch break, the nikkei 225 lower by 1 , as yen strength pushes down on exporters. The top story is toshiba, a third day lower. Elsewhere in the region, green in new zealand. Indonesia pulling through higher, and vietnam coming online stronger, but a pullback in australian shares, looking lower by. 1 . Rising for a fourth day, helping mining stocks gain. In the commodities space, we are seeing a retreat in oil prices coming back from the 18 month high we saw yesterday, so brent lower trading. 2 lower. Gold as i mentioned earlier, gaining for a fourth day come in the longest stretch of gain since november as investors are looking to haven assets as they price in rising concerns over Donald Trumps presidency. 8 year to date, but has lost as the dollar climbs after Donald Trumps win. In the Raw Materials space, is set as that space for the first annual decline since 2010. Copper down currently at. 4 . Some stocks in focus, toshiba asending losses, plunging the companys rating was cut by s p and moodys earlier today, shares falling as much as 26 . Sumitomo mitsui falling 4. 6 today. They are seen to have the highest capital exposure to toshiba, according to analysts. In the other direction, takata gaining 16. 5 on news that a settlement may be underway regarding the airbag debacle. The company saying it is not the source of the report that it is theing settlements with u. S. Department of justice related to its faulty airbag, saying there is no decision made and nothing that requires shares surging to the daily limit after that wall street journal report. That is asia today. Very muchhank you indeed, right, lets have a look at china as it drops its target for trade growth, the second year they have done this, and all according to the state media reporting that authorities are downplaying this goal and the whole motion of goals. Sherry and has the details. Whole notion of growth targets, and it is interesting because the Ministry Just ended this key annual conference without a target for 2017, and they did not set a target for 2016 either, but what is interesting is how local state media is interpreting this move with the shanghai security news saying this is probably because policymakers are backing away from growthexcessive growth targets. It is not surprising given how much uncertainty we have seen over the Global Outlook for growth. Beens trade has weakening, declining a little bit, and a lot of volatility, the blue line is imports exports, in fact. Imports are in the white line. There is a lot of volatility, so now policymakers are backing away from specific targets and this one high level officials saying that ab