A powerful typhoon with torrential rains and 200 kilometer per hour wind. We have the latest. What is it like outside this morning . Well, it is pretty ugly out there. I had a tough time getting in. I broke out the rain boots. It is windy. My umbrella got blown inside out. And my train was late today. Some trains or lines are operating. And how is it affecting business so far . Well, in one prefecture, which is pretty close to where the storm made landfall today,oyota has suspended operations and they are Still Deciding what to do. Operations byyed a few hours at uw of their factories. There are hundreds of Flight Cancellations throughout the entry, both from the two main japan carriers, including jal, a nd for jal, some of the cancellations were for international flights. And what has happened so far . Well, you know, we have seen some images that are pretty devastating. Rivers that look like they are overflowing or close to overflowing. Surge warnings all up and down the coast. And then there are waves coming. It just looks pretty devastating. Jacob joining us. And the typhoon, battering tokyo as we speak. And david is here on monday morning. Markets are closed today in some areas. Thanks. Yes. Good morning. We are tracking markets here. The dollar is up, and oil and gold are down. In just a bit. Here is how asia looks. As i mentioned, lots of markets are down. Philippines,ia, and at this point, five markets are open. Overall, things are higher. They are doing the heavy lifting right now. About five or six points. And looking at the dollar spiking on friday, that drove the dollar yen close to 1. 10. And australia, what is happening there is you have the mining stocks driving everything lower their. It is very bad as far as the mining stocks go. 1. 6 , and that is down to metals prices. And we will get individual details. We will look at iron ore first. To cutting atlas iron, cut b, but they are stable. And some things are unaffected so far by the revised ratings. When it comes to fortis q metals, that is something to watch closely. Now, a bigger story, and you can see it here. Gold. What can i say . Wiping out gains for the year. A 4. 5year low. This is the gold space in australia falling. And this is paring back bullish speculators for a seventh straight week. So it does not look good as far as that is concerned. And a down market in australia and looking at japan, for example, that is doing the heavy lifting, up by about 1 . Open it out inng about 20 minutes from now. Back to you. And they say they will continue. Protesters have pulled back from some parts of the city. They are still camped on the ground. What are you hearing, and what are you seeing at the moment . Yes, the protesters still coming out, but a lot fewer than has been the case in the last week or so. Definitely down to a few hundred see, and i as i can do not know if you can see behind me, but government workers are going into the government offices to resume their normal work day. s weekend,ng kong they set deadlines to have workers go back and resume their duties. They had closed the government complexes. See that they have a pressing task. Impediments. En no people are crossing the footbridge and going into the offices. There is nobody trying to stop them, and no barricades at all. Wasanother request, which for the city to resume business as normal, to go back to functioning in a usual way, with me which means the opening of the roads. The government buildings have been opened up a little bit. The main highway, which had been protesters, still remains barricaded, and there are still protesters sitting on it, and there are no people going in or out of this particular part of town. The metro system is running. People are going to work. They say they are looking to increase services this morning and as necessary, and they expect to see more people, more passengers. Were a couple of consecutive days of holiday last week, so people had time off, so this is the first day where they are back in force, or everyone should be going back to work. Says thatment also secondary schools will reopen today. This is in the area where the protests have been held. And students possibly younger than secondary still remain closed. Workers protesting at the moment. It has been a change. A case where the protesters are dwindling or pulling out of the areas . At this part of the day, weve seen less students and protesters on the street. This is a regular thing on a daytoday basis. ,here will be fewer students and the numbers will change as the day goes on. I can see, we cannot tell if they are all with drawing. Now, there has been some movement in terms of negotiation and the government. The student, the leader of the thatnt group says yesterday they have held some pulmonary meetings to pave the way for formal talks with the government. Hoping tots had been speak with the number two and government in hong kong, and they said there have been some preparatory meetings, preparing the way for the official talks. There will be a number of pulmonary meetings. No date or time, as far as i know, has been set for that. Seen as taking this on. They want the government to assure that changes will be implemented, and they also want several rounds of talks, not just one. This is in order to get real political reform. The students say they will not stand down from their protest unless Real Progress can be made on that front, and they say that they will, in fact, call off the talks if the police or other authorities try to clear the protest sites by force. Thanks for that. The protesters dwindling a little bit. Workers getting back to work today. News, samsung said it would build a factory in south korea, a chip factory. This comes as the company is looking at what could be the toughest and roughest quarter in years. They said profits could lines 60 . What can we expect when they come out, i believe him on tuesday . John, it looks like samsung is looking at another bad order. We are expecting operating profits for the Third Quarter to fall. Sales are down 15 . If the estimates are right, those be the biggest declines in five years. The second consecutive earnings decline. It looksou mentioned, like samsung is going to continue to expand building in south korea. Combination of factors. Right now, it looks like the golden days for the smartphone business may be over. Rivals,ion from cheaper like one who started something in overseas markets, and that is hitting them hard. Right. And it is not just the low end. Apple is still dominating the high end, so samsung, which used to have an advantage, will no longer see that competitive edge. Is needed for Samsung Electronics to recover in the next quarter . Maybe a new device. S5. Ccessor to the galaxy thank you. Still to come, assessing the impact of japan. After this very short break. Welcome back. It is monday, october six, and youre watching bloomberg tv. Reaction after announcing earnings last quarter, a onetime gain helping to boost them. Other smart phone makers, including apple, and samsung listed her teen consecutive times they will debut its first camera and phones this week. Group tokyo, a retail reporting a drop in net income for the first half of the year. The discount strategy had failed to stimulate sales as much as hoped. And cutting an unspecified number of jobs, the ceo looking to trim down the company to tackle price pressures. Cuts will include managers and nonmanager posts and will cost about 115 million. The cuts are expected to be over by the end of october. Higher,ares opened trading a little bit lower, sprint. When tokyoa hit raised the sales tax, and six months on already, how are businesses doing . Many thanks for joining us. The six months have flown by. The impact . Well, we have seen a decline in Household Spending year on year. Tax is implemented. What is interesting is that retail sales have been a little less affected as the time has passed. At Department Stores, for example, and they declined 0. 3 year on year in august. They are obviously cars. Yes. Yes. The Automotive Industry in japan has been hit hard. If you look at the sales in the last six months, down about 3 after being up 20 six months prior to the tax increase. If you look ahead to the next six months, i think the sales comps get much more difficult, and we may see further decline. The yen and the fixed yield. It is boosting overseas sales. Yes, it is. Top threek at the japanese automakers, which are toyota, nissan, and honda, the majority of the sales are actually overseas, and most of those are in the United States, and u. S. Sales have been doing very well, so that is helping to compensate. Pockets on the streets, and retailers and consumers. Thinking twice about buying. What we are seeing, some retailers are responding by offering more private label products that are priced below the National Brand roddicks. The reason is while we have seen easing, this is higher than the wage growth. So we are seeing a lot of efforts to try to appeal to that , and part of the shrinking packaging, as well. This is to keep them in line. Many colors. As always, tell us. This goes back to 2014. That is right. Five years. Right. If you look at Household Spending, the first red line, this is sequential. This is april. You can see we had a big, huge spike. What the red and green to signify is sequential increases and decreases. We had a drop in Household Spending in the month of august. It was a slight improvement. They were calling for a decline of 3. 6 . Car sales in japan. And the automakers probably have some incentives, but i am not sure they want to continue that, because then you have a cycle and a price war. And that is domestic sales. We mentioned overseas overseas. The weak yen. They did extremely well, japanese companies. The largest part of their sales, domestic. Having a bigger slice. The u. S. Has been a bigger slice. Over 50 of their sales, actually overseas, and the majority of that is the United States. And the yen is definitely helping. You could argue there is a recovery of sorts. And then deflation. What elements have you seen helping that . We are seeing a little bit of an increase in wages. There are a number of factors that may drive more wage growth as we go forward. If we look at unemployment, looking back one year, it has declined from 4. 1 . We have also seen a number of jobs increased by 195. One of the factors driving this is we know japan has a workforce that is opening more jobs, and that is leading to a labor shortage, and that will affect wages as we go forward. The retail side. Six months on, and here we are. The slide. O come, a look at the concern of investors in indonesia. I am david in glass. These are the headlines. The u. S. Dollar remains elevated as we start the trading week. It is among the longest stretch in gains in, get this, after your years, and the jobs rate, 5. 9 , and while some people may be dropping out of the labor force, we still saw 248,000 new jobs in september. And there is working hours, so that is better than expected. One market to watch this week is indonesia. They are growing at the fastest pace worldwide. There is the renewed interest of opposition parties. Close to pulled out 350 million from indonesian stock markets. To its weakest level since february. Incumbent in a runoff. They now predict that this now vez a favorite to win, which they say will see the markets rally. And that is driving the markets this monday morning. Beginning before the of trade. Also across parts of asia. Here is how hong kong futures are looking right now. Onnext, we have the latest the hong kong democracy protests, as the campaign enters the second week. And we talked to an investor who is analyzing the impact on hong kong business and also stocks. Stocks are down by percent since the beginning of september. All of that, after the break. Welcome back. It is monday, october 6. Back to work, as hong kong protesters ease access to government buildings, but they say they will not leave until demands are met. The pboc releases their latest view of the economy, and in china, going local. The markets in hong kong are opening up following another weekend of protests. China is, indeed, shut. Thees, and looking at twoday chart of the hang seng, i just want to remind everyone of this rally that we saw a late on friday. It is about 400 points. That is about 400 points that we see there. 22,053. It is a bit of a quiet open. Lets wait for that to get underway. And let me give you a crosssection of what is happening. What is gaining, what is not, what is boring, what is exciting. Lets take a look at what is moving. Or third. Le is second that is pulling things up. Yes. There we go. China mobile is up about three quarters of 1 , and a few other sector groups that we want to follow for hong kong. Opening, falling a little bit more at 41. Look at the age shares. They are down. We arehundred is where for the age shares. 10,300 is where we are for the h shares. And there is perhaps reduced flow of tourists into hong kong, other you did see people coming into hong kong despite the protests. Thewe are also watching casino shares, and a few things. You have these protests. Advanced booking cancellations were minimal, though they do still see full occupancy. Another thing we are following, and you have to keep in mind with the casino stocks, the smoking ban. The smoking ban. What they are saying is that may actually hurt massmarket revenue by about 5 . It is not totally clear. It may include emea market areas. We are watching that because it simply adds to the list about why you investors may avoid getting into these stocks, but again, basically longterm averages. Outperforming. Landith this, henderson had a big sale of one of their projects over the weekend. A very good turnout. In fact, without going into details, a lot of the apartments that went out for sale were snapped up. And then the impact of the protests. Out about whether or not you want to buy them. The list is growing of realtors who have said that, at the activity because of these and let has come down, me just and with a look at how asia is doing, to put everything into context. The hang seng index. There we go. It is off one corner of 1 . At this point in time. A closer look at how markets have been reacting to the protests that have been going on, we have a guest. His group controls 250 million in assets. Is that the Central Color you are wearing, or is that Something Different . No. It is just my company color. 9 since are down september. Developers, property developers, and s, i believe the occupy movement will be a factor, especially the developers, key underperformers. As we have seen in the last few days, basically in hong kong, it those about disorder, so local stocks are affected. Money from this. Yes. But insurers may not have that unless there is an evacuation that happens, so at this moment, maybe the key underperformers. Investorng kongbased managers. Potentially, they offer good value, with potential going forward. Relative. It is still already the bottom of the market, because the movement itself has been progressing. We do not know what will happen in the coming few days. There are only two possible results. The first one is a chief executive. And the other is the evacuation. So very aggressive. Yes. And the police will come in. Yes. Now, we have some rooms. This decision lyrically has been made. Politically has been made. A very aggressive and very bloody, as you say, protests, clash with the police. Yes, yes, yes. They are engaging in talks. Yes. Option one will be that there is a peaceful resolution. Firstly, we do not permit that. The protesters, in the future, they can do this in the same way to force the government. And what about the country losing face . What about the financial markets, for hong kong investors . They could resign, which is unlikely. It would be badly hurt. There is the reputation of hong kong. On the second one, i think some of the investors because of the uncertainty will move out. If that is the case, hong kong will be very fragile, because hong kong relies on developers and tourism. He industries will be badly hurt. So the economy as a whole will be badly hurt. And for the market, of course, we will get some support. Yes. Shanghai andthe hong kong project will launch as scheduled. Protesters let the to have their objective achieved, because this is a longlasting program. So i guess that will be as scheduled. What difference, on this point, what difference does the Hong Kong Shanghai connect make . The Shanghai Hong Kong connecticut basically, all the testing is finished, and we expect them coming out in the next two or three weeks. Ready,the programs are and when that happens, i think hong kong will have very good support, given that there are still a lot of mainland chinese with the shares. On the ground in beijing. Stay with us, if you can. And maintaining a policy. But there are complications in the economy. Stephen engle joins us live from beijing. Steve, what is the pboc actually saying . Good morning, john. We got a statement from the pboc on their policy meeting. They seem relative stability in the economy here, even though it did say, as you mentioned, complications cannot be underestimated. It basically cited a divergence in International Situations and Monetary Policy of Major Economies, but it includes positive signs in the u. S. Monetary easing. Positive signs that the u. S. Monetary easing in the eurozone and difficulties in emerging economies, so those are the divergent factors at play. While the chinese economy, the Central Bank Says, remains in a reasonable range. Prices are relatively stable. We do not have an inflation problem here, and the Central Bank Says it will continue its prudent Monetary Policy, use monetary tools flexibly, and realize reasonable growth of credit and social financing. Of course, there have been phone calls for some easing, for an Interest Rate cut. However, we have seen not targeted measures from the pboc, the big banks in china. Last month and also just last week. We had the relaxation of property rules for down payments, so there has been selected easing, what they are basically going to maintain their prudent Monetary Policy. So the status quo for the time being, even though some economists, including one from ubs, say they believe in interestrate cut is in the ca