Showing a continued slowdown. Of it over to Stephen Engle in beijing with the latest. A very good morning to you. What are the numbers telling us . You said it. The Economic Indicators from the weekend and generally from the that 7. 5 ths, missing growth target for the full year. Does that really matter . I will get into it. His options have definitely narrowed, stimulate, or you are probably going to miss that target. We have the weakest growth since the Global Financial crisis and the data released over the weekend. Fixed assets investment, retail sales also moderated. We saw the second straight decline in imports, a 40 drop in the aggregate financing. The numbers are not necessarily looking good for the program of cap. Helen xiao at Morgan Stanley this isimportant an apartment wakeup call. Slowdown, engineered or is this happening a bit faster than they wanted . Will they stimulate more . Will they ease policy . Those are the big questions. They have done so with targeted measures. Nothing massive like what we saw in the aftermath of the outbreak of the Global Financial crisis. In 2009. Authorities do not want a repeat of the asset bubbles and bad debt, and at the same time, trying to work through. You are trying to work those problems and at the same time stimulate growth. They are kind of contradictory. The likelihood now a further monetary easing, such as Interest Rates or reserve ratio requirements, has now increased significantly. The thing is, theyve got a lot of levers, as you are alluding to, but there is the one where they would end up with eggs on their face, but how significant would it be for china to miss that growth target . Think a hard landing perhaps is more significant than them missing that target. Nomura a note from one third of all the Property Developers in china are going to miss their sales targets. Of course, the bankruptcies going on. Target, there the is a president when the premiere sets the target, that is what they are going to get. Generally, every year, that has been the case. Through the miracle or some smoke and mirrors or some fudging the numbers, but basically, they always hit that number. The imf deputy managing director, the former Deputy Governor of the peoples bank of china, he told the World Economic forum, he said, the government should start setting a targeted range rather than a hard number. That would give the non the government some wiggle room. An artificial target really. For that,a lot Stephen Engle, our china correspondent joining us. We will get reaction to that in about 25 minutes when we get the chinese and hong kong opens. Singapore, lets have a look at what is going on. Oil prices headed south. Asiapacific stocks going insane direction. Say, good morning to you first of all japan is closed for respect the aged day. China and hong kong will open in a half an hours time. Taiwan, with that, and the Industrial Production is weak at his as weak as it has been, clearly concern for taiwan. Australia, you can see they are very closely linked to what happens in china. Big declines today for australia. Also the queue we qe. I will discuss the fx report for the day coming up. The aussie and kiwi reacting to this week in maine data from china. Malaysia, little bit lower this morning. Off their highs. Australia is really feeling the brunt today. Can see from this look at that significant declines. As soon as the market opened, down it went. Look at that. That was the opening price, significantly lower. That shows you the concern. Clearly financials, miners, all of these look for china for their direction. Today being hit pretty hard. We are going to look at sinopec. It is selling about one third of its fuel station business. Theyre among 25 investors paying 17. 5 billion. The deal is coming amid a push by beijing to restructure the company and really open them up to greater market forces. Look at hsbc. Things will get underway in hong kong about 22 minutes away. Pay 550agreed to million to settle mortgage claims in the u. S. Much lower than those levied on jpmorgan, bank of america, for goldman sachs. Gopro may have some competition from asia. According to a person familiar with the plan, htc is developing its first waterproof camera for extreme sports. Its 12thh is forecast straight quarter of falling sales, is searching for new forces of Revenue Sources of revenue. If declined to comment on this story. Alibabas ipo was taking place later this week, but today, the roadshow rolls into hong kong. Rose luncheon has more with us. Rosalind shannon has more with us. Alibaba has enough demand at share, and iter could actually close early. Already . Already. This is one of the things. It could be tempting to think about raising the share price range to see if they can get an increase, but this is something that they should consider carefully. For example, facebook, it came back to bite them. More comes from mutual funds, they have a longerterm view, a 35year horizon, they might place orders, and that made it ali baba the confidence to raise the price range. These mutual funds could be worried. Of the company has been following ali baba around, and also, the Political Risks, investing in chinese company. Is that we have in terms of the questions being asked . Its possibly one of the concerns. There are other concerns that come back to corporate governance. Also alipay. Be able to profit from alipay . Alipay was separated from ali baba four years ago. Some worries about the valuation. Is it a bubble . Visit overvalued . Baidu, theare it to pricetoearnings ratio is Something Like over 35 times. Estimate the analyst is only for about 29. That is a pretty fair value in many ways. This point, maybe. Next days, alibaba will take a look at the kind of investors that house and whether it can take a risk in terms of raising the range is going to set for its share price. It is going to set its price on the 18th of september. Looking to trade the following day. Thanks a lot for that. The latest on alibaba. Coming up next, our next guest says the rising dollar and falling Commodity Prices signal trouble for one particular asset class. Weve got details on that when on the move returns. You are back with on the move. We are waiting for the feds latest Monetary Policy decision and the impact that could have on global markets. We are joined by russell napier, a strategist. Youre here for the clsa investor for him. Youre talking about the dearth of dollars. Im talking about americas current account deficit. That is where our liquidity is driven, America Running bigger deficits. Something structural is happening with the deficit to do with shale oil and gas, a lack of consumption by the baby boom generation, new competitiveness, and this creates huge problems for emerging markets Going Forward. How . When you link yourself to the dollar, the amount of liquidity you can create domestically is based on the surplus you run. Outside of any surplus, there has to be a deficit. We could rely on america for that for two decades. This is particularly important for china. When china reflects, its Exchange Rate will decline. Lets talk about the dollar itself and how it has been rallying. You are a big bowl when it comes to the dollar index. Everything is relative when it comes to currencies. It is relative again something else. It is fairly clear that across the developed world, europe and japan, weve been looking at loser Monetary Policy. The great irony maybe that janet yellen prevails as the first woman governor with a strong u. S. Dollar. Theyve talked about a strong dollar policy. Its just than lip service, half the time. When you talk about a weak dollar, and you want to change that policy, youve got to do something. I dont want to be in a situation where they put Interest Rates up to get the dollar up. You say you are in favor of a strong dollar. When weve had crises in the past, the fed has had tried to stop it by cutting Interest Rates. One of the crucial problems may be, how do you stop it if it begins to go up . Sterling, and massive move to the downside for that currency. The yen, 107. 30 this morning. How much of that is done to the possibility of there being a yes vote on of scotland, or is it just onto a strong dollar . I would say half of it is associated with scotland. If we get a no vote, you probably get half of it back. We are looking at the dollar rising against everything. There will be a no vote. I think we are really looking at a strong dollar. Are you confident in there being a no vote . If there were a yes vote, what would happen then . I live in scotland. I get a strong feeling that despite what people say to the polls there will be a no vote. If it is a yes, we have some particular problems for banks. Thanks, there will be a drain of deposits from scotland. There is no premium on holding a scottish deposit over an english deposit. In extreme situations, the bank of england may have to withhold or go to the government and say, we shouldnt be taking anymore scottish collateral. How does this work . They cant share the pound as suggested by london. What do they do . Is going to be probably a threeyear negotiating period of massive uncertainty. You and i have been doing this long enough. Up er we end in other words, it wouldnt function. The Financial Sector make more money from uncertainty than others. Think that is the great shame of what is going on in scotland. The main beneficiaries of any Major Economic uncertainty would be people from outside scotland. They are the ones who are in the situation to benefit and buy assets cheaply. Its very difficult to be independent on this particular issue. Im not a yes voter. What is the mood like . Ofe been hearing stories neighbors talking to each other and people being polarized. I think that is a small percentage. I have lots of friends in the yes camp. I have a lot more friends in the. Think most of the general view is they have to be engaged. I dont think this is the most toortant thing that is going drive scotland over the next two decades. Ive been all over scotland, and i dont see the fervor that the media is reporting. This will be a constitutional revolution. You would see it in posters and badges. That is one thing percent of the population 1 of the population. Which way is it going to go . When the scottish voice phones is scott and asks them over how they are going to vote, most scots will say yes. What they do in the privacy of the polling box is different. This is not a vote about kicking the tories. This is a vote about changing forever. People realize in the polling box that they do want to express disgust and what they are against. This is more than that. It is changing the constitution. Russell, have a great forum. Slowdown in china waiting on the aussie dollar. We look at what else is moving the currency market after this very short break. The 15th ofday, september. I am john dawson. The Australian Dollar is at its lowest in six months. That is in reaction to data from china that showed Industrial Production missed estimates. The aussie lost over 3 last week and is now hovering above that crucial 90mark. The kiwi is following the aussie lower. Inis at its lowest level seven months. The currencies being influenced by the Central Banks rhetoric. The rbn signaling it would not raise rates until march of next year. We have the nations elections this coming weekend. The Scottish Hotel is driven the pound traded below 50 pence against the u. S. Currency. That is as weak polls favored scotland staying in the u. K. 4. 3 million registering to vote. The keyow you also market played today is the aussie dollar. That is the reaction to chinese weekend the data. That is the stock markets. The Australian Dollar, differences. There it is. Close to that crucial Technical Trading level. Certainly watch out for that. 89, a bigto breakthrough, and it could go lower. 90 is the allimportant mark, at least in the asian fx trade. Those are the stories driving our forex markets today. Lets stay with currencies. Westpac bank saying city could become the next room in the trading hub rmb trading hub. Global markets could be headed for a significant correction. Governments are talking really constructively. Think there is goodwill and good intent to make sydney the next hub. It would be great for our customers. Deposits, loan, trade finance without having to go through a thirdparty. It really saves some money. It is much more effective. It simplifies the process. We are assuming that sydney will be announced as a renminbi trading hub. Lockstepes it go in with the potential freetrade agreement . Do you think that wouldve happened before . They want that done by the g20, november. 2014 has been a very for ftaul year australia. The Australian Government announcing the japan freetrade meant, the korean trade afraid freetrade agreement. In theorking diligently negotiations of the australiachina free trade agreement. Novembers g20 is absolutely an incentive. I would prefer that at any price. I think freetrade agreements with china are particularly complex. It may take a little bit longer, although the intent from both sides is absolutely there. If we dont get it announced, im sure the renminbi hub will be. Ishow exposed his Westpac Westpac to a slowdown in the chinese economy . Dont think it would hurt, but it would certainly slow down the australian economy. We are the Second Largest Bank in australia. It will certainly affect our performance. People are streaming in here, coming to listen to you. She will be on a panel about the financial crisis. Visiting other one inevitable . Is another one inevitable . I think there has been so much fun to strengthen new regulations, new liquidity rules. I do think we might see quite correction. I think its going to feel like 1994. I think you are going to see a meaningful price correction coming up. Going to see are an asset price correction is very meaningful. Lets check on some other stories making headlines around the world. The killing of the u. K. Aid worker by Islamic State militants has been internationally condemned after a video was released claiming to show his death. Onid haines was beheaded saturday. From mr. David cameron described it as an act of pure evil and said he would do everything he can to hunt down the murderers. American citizen has been sentenced to six years of hard labor in north korea. The countrys Supreme Court said that Matthew Miller entered the country illegally and tried to commit an act of espionage. Prosecutors claim the 24yearold intended to so you couldison investigate human rights abuses. The Pakistani Army dropped relief supplies to people stranded in punjab. Than 300 people have been killed since the flooding began with more than 2 million others affected. Amsterdams Central Square was turned red yesterday. To mark the fight against russias boycott of european the idea was taken from spains annual festival. Tickets cost the equivalent of 18, and organizers say around 1000 were sold. Coming up on bloomberg, weve got the market open taking place in china and here in hong kong. Reaction to the weaker than expected Industrial Production data expected, as well. Growing pains. Weak data serves up another setback for china. Sinopec chairs were set to tumble after the company offloads one third of its Retail Business. Racing onto the world stage. Formula e making a debut in beijing. We do have the open upon us in hong kong. No trading in japan. It is a holiday for the aged. Clearly,c shares, and they are selling part of their stake in the Retail Business, which means petrol stations. Off by 4. 5 . The first unraveling, if you like, of the Stateowned Enterprises across asia, the government trying to reform that. 20 investors have bought into this. Overall, that is the share price right now. The reaction is down 4. 5 . Those are the sinopec shares at the moment. If i can go to the opening prices for the map, and this on the day where clearly chinese production,ustry have impacted the market significantly. Taiwan was way down before. Australia off by almost 1 . Closely linked to china. That is the concern for that. Shanghai opening off by 1 5 of 1 . Falling seng finding half of 1 . Sinopec falling 4. 5 . The Biggest Companies are the resource companies. Clearly down to the one individual story about the company itself, the Biggest Energy company in china, selling off a stake in the Retail Business to begin that development. Games but nothing dramatic. In australia, the biggest recliners are all chinarelated. Tas is down. Last group, tied to china. Sinopec is down 4. 5 . Declining fortunes over there. That is how your money is doing at the moment. Lets tell you about chinas fullyear growth target. New data showing a continued slowdown. Lets get the details from the chinese economist joining us from beijing. The data is the weakest since 2008. What is the story . Some very weak data coming out of china over the weekend. Wevernment had already can is had already been signaled. We had some fairly low reasoning greetings from the pmi data for august, but the extent of the slowdown showed industrial output data was really quite surprising. Growth inon year industrial output. That is the lowest since the financial crisis. Even more troubling, electric