Wall street. A look of what is going on market wise. Good morning. I usually start with a map of overall asia. Story to one of the Biggest Industries which is taking the lead. Cutr china surprise rate for the first time in two years, we are seeing iron ore, taking a hit off by 44 . These big ones. Gain today, 10 to boost iron ore. All rising to an upset. You are also seeing gains. The big was like rio tinto. These are the reactions. The overall picture. You can see it is there. Seeing it clearly. Japan is closed. We look forward to the opening of shanghai some. Australia, you can see all of these off by 9 some up by 17 . A clearly that is driving the momentum. Dollar, get rid of that marker. If i pull up the aussie, there it is. On friday after the surprise rate cut from china, you saw this right here. A bit of a strengthening of the currency a weakness in the currency. That traits right about their. What to watch out for. Over to you. Thank you. Political gridlock after the resignation of the senator. Upper house voting strength. It will make it harder for the Prime Minister to get legislation through. Lets get the background to all of this. Paul allen, what is it all about . And in the senator party, party united. ,hey were elected surprisingly a group of three of them to the senate toward the end of last year. This has been bubbling along for inhile and lambie has been dispute. There was a sense that she was going to quit and here we are. Arely a year later the united party has fallen apart. Lambie quitting this morning. [indiscernible] my decision to serve independently comes after much thought and after discussing extensively with my family in tasmania. Jacqui lambie wearing a pink scarf, pretty much every day since the election, shouldnt wearing a yellow one which is the color of the party united. Tangible that she has walked. What it means for the government, where it is really interesting. Thegovernment has needed senators in the upper house to get programs through. Previously, it could negotiate. The three senators plus Ricky Mueller of the party at it could tie up for easy votes. Now, it has fallen apart. Mueller has walked away also. The senators are now fractured with computing interests. Just picking up on that, paul. Didie what did what lambie indicate . What was she so port and oppose . It is a little vague paris she said she wanted to fight for a better deal for her home state of tasmania. She reversed an earlier decision and opposed like to regulation of the financial sector. Those reforms have died. There are plenty more where it came from. Here is what she is going to oppose. A vote against direct relation of security fees and tony abbotts signature. She will vote against a proposed seven dollars charge for billing the doctor. Shes going to vote against changes to pensions. A lot of these were included in the may budget to help balance the books in australia. These budget measures even tabled, here we are in november still talking about them. A lot of them are dying on the table. Senators are elected for six years. The Abbott Government potentially had another five years of this to deal with. There are already talks of a potential nuclear solution. The government can call a double dissolution election and go seek a fresh mandate. As they need a pretty strong stomach to do that. As to say, 2015 will be a tough year for the Abbott Government. Thank you very much. That is paul allen. Over to japan where the Prime Minister said he was renewed support but it seems a number of voters not that interested going into an election. Shinzo abes Approval Rating is down. The latest opinion polls. You live in japan. You know what hes all about and what other people think of him. What is going on . People are not too happy with abe and what he is done in the past two years. The majority saying his economic tolerances, why they do not so ported very much anymore. We have an opinion poll taken by a newspaper saying his support for his act is lowest level since he took office. What we talking about . Popular and given we have seen this evolving door of my ministers in the past two years in japan, Prime Minister already has a support rating. When he came into power, 51 of voters saying a legible voters in 1600 households saying they oppose his economic policies and 33 support i been a mix. Support abenomics. They do not really have many parties to choose from. The rapid dpj. Only 9 . You have the dpj. Theres not much of a choice. And newller parties parties, they only have about one to 3 of the vote. They like to vote for the question of mark. It is undecided area 45 of ple are undecided area somebody needs to set up a party with a question mark. They will get 45 of voters. Thank you very much. Looking at shinzo abe and his snap election. They look at other stories. Australias private insurer will make his debut in sydney tomorrow. Raising 5 billion. The second biggest ipo. Drivers to enter their occupation of public roads. Calling for the city and to end. T in toing for the sixt end. Opec meeting this week. Iran wants to lower output by at least one Million Barrels a day. A little bit of an uplift area there we go. 80. 38 a barrel of the black stuff. Up next, we will ask a market strategist. The more cuts to come. This is on the move. A brief look at some of the big events korea big events. Decision toise boost stimulus from the october meeting. Policymakers boosted as much as 33 . That was the first change in corona ce governor kuroda. We may get an indication of how much damage the retail has been hit. Set of results. They said services is hard hit by the protesters. And al gore is in china to talk about green energy. The former Vice President will be attending the conference. He travels to this part of the world after the landmark deal between the u. S. And china after curbing emissions. Leaders meeting in vienna. On whether output should be cut. Saudi arabia looking to protect its price year. Price wars cut off by the united states. Overall, china, the thoughts on this. Chris, great to see you. Lets talk about oil here. You are saying it is bottoming out. What is your rationale behind that . It, we canking at say it is consolidating after a fairly big move down. Some of the data in the u. S. Has been toward the back end of last week which allow some of the depreciation. Out for nowtanding and find out what happens in opec and it seemed to be iranian may look to cut by as much as one Million Barrels. It could cause a little bit of upside. Speculation seems to be running the show as well. If they cut that much and the sounds are on board, a bit a Short Covering rib a bit of a Short Covering. It is showing that right now, the front end. About au have looked week ago, you probably would have said no chance. Given the noise coming out of saudi arabia. Getting some backing for a cut, right . That is right. You have venezuela, ecuador, a number of other countries, about 22 of opec production. Of course, the iraqis make up s2 in the southeast saudi and we have to go them on board. The production at the moment is well above the 13 Million Barrels a day. Half a Million Barrels cut means the production levels are as the closest. We have to see how it works out. To bebyans really seem driving the show. 22 of opec. We have to get agreement from the saudis. Yeah, chris, lets move from oil to currencies. The dollar has been moving inversely with oil prices over the last month. We have seen it, the dollar rally just beginning to style a bit. What is going on . To be honest, if you look at the positioning, you see data and the market is very much long after the moment. If you are a statistician and running some type of model which may involve yield spreads and reversals and the like, the euro dollar should be a couple of basis points higher. You just look to sell on the rallies. Euro is a brilliant funding currency at the moment given to u. S. Companies issuing euro debt. What is happening with the dollars everybody owns it and rightly so. It is such a nice currency for many reasons. The issue is it is overbought at the moment. At what level do you look to go into it . That is the thing here as well. The yen is up at 118. That move was very fast. It raised some of the corporate and finance minister. What next . That is the issue. The big issue now before driving and it is obvious they are trying to crate equity and japan by pushing up equity markets. Its a phenomenon that will take place in europe. To boost stock prices and therefore, the rich get richer. That is the idea. The currency aspect, that the linkage between dollar yen will break down. Of what wely because saw from the Prime Minister last week. He is looking to be a populist here with the corporations in japan. They want to see a slow depreciation. They are quite happy that it is lower than where it was. Therefore, there will be diversions between nikkei appreciation. Everybody is lining up to buy dollar yen. Maybe lower. Nice one, chris. Chris weston and melbourne area lets take a look of what chris is talking about. The ecb in the mix try to avoid inflation and the eurozone falling into deflation. We will have a look of what is moving the euro. Our Foreign Exchange currencies are coming up, next. Your fx headlines. I am john dawson. Reaction to his surprise, chinas rate cuts. Worlds biggest trading partner with australia. Cutting a key cash rate for the first time in three years. In currency at the lowest five years. The kiwi has struggled for the same reason as china. Below 7950. Oming is closerket as japan to thanksgiving. Across the ocean, the euro is close to a twoyear low before data. Mario draghi said that is when officials will do whatever we must to raise inflation. Germanys cover this might fall confidence might fall for a seven month in a row. Cut. Was the rate reaction. Indicate that is quite important. Is astrast, similarities a kiwi dollar, neighboring australia. Performance. And fellowsnd kiwi are the stories that are driving the fx market this morning. A look at other stories making headlines around the world. What is going on in afghanistan. Nato. Rity pact with the forces will remain in the country after the end of this year. Renewed offensive by taliban militants. 12,000 troops in training of forces. Inrtly after the vote parliament, a suicide bomber killed at least 45 people in the eastern part of the country. The former mongolian Prime Minister has been seriously hurt in a Road Accident reports say near his private camp. He suffered back and shoulder injuries and has been advised to seek treatment abroad. He was removed from office amid criticism of his handling of the economy. The iss, the International Space u. S. , italy russia, and they will join three other astronauts. Now, japan. Increasing scrutiny recently during the debate about images of socalled child idles that led to a cap pay for the removal of such material that led to a campaign for the removal of such material. What this mother of three found was shocking. Scantily clad girls in dvds. Part of japans and just read the generated 650 million. I figured it was a glitch in their system. How could this be sold on amazon. They have a really popular keyword candy. Is far this Mothers Campaign to stop online retailers from selling this type of product. She has received threats so we have decided to conceal her identity. The candy collection and other items were available on japans three largest retail sites. 19, a candy doll collection returned 17 results contain images of girls that appeared no more than six or seven years old wearing underwear and bikinis. This series can no longer be found on amazon japan even though a link redirects to an amazon site. No longer shows any dvds for cell and the company has declined to comment on this story. Amongst items under the category. Revisedthis year, japan pornography and expanded the definition. Certain types of m a computer game anime and Computer Games fall into a gray area. He is an adviser to an organization working with police to block online child pornography. This is what he had to say. It is difficult to say it is illegal. That said, the target of these products are clearly not mothers who want to purchase one suit for their daughters. Law cannot block all the products being sold, his Mothers Campaign has had some success. A search for candy does bring results but dozens of others remain for sale online in japan. Bloomberg, hong kong. Way, a look at the snap election being called in japan at the Prime Ministers Approval Rating hits new lows. We have the hong kong open. The rate cut in china. Jumping the most in nearly three years. Sinks abes approval ahead of the snap general election. Glad rags. Going under hong kong. The start of trading and shanghai. Hong kong, the singapore sessions. Taking a look at the positive use out of wall street. The surprise cut, got her the peoples bank of china. A look at it is again. Hong kong up by almost 2 . You see the reaction to the surprise rate cut on friday and china, clearly financials. Hong kong is an early gain or. Now a decliner. Land and resources, the biggest gains. A percent, 5 . Not one decliner. 8 , 5 . , back tos randomly what it was before. [indiscernible] , china up by currently, 1 . The best performers other early stage are north beijing companies. 0 each only a few decliners at the moment. Also, taiwan. The same story. The rate cut from japan from china. A big, big rally across asia. You can see the impact so far. Tide chart, we have the financials up by 0. 25 . Industrials up. I want to show the Immediate Impact of the few seconds of trading. Financials are the one. They are up by 0. 25 . There they are. 3. 5 in china. The composite, a big, big gain. 65 stocks are rising. Not one decliner. What it means to cut rates. , it has not happened in more than two years. Not saying the words themselves. Be shifting sentiment toward more aggressive monetary easing. Real estate, 10 . The real estate, 8 . Of the real estate, 6. 5 . Beijing real estate, on the stocks, significant gains. Not one decliner. A final look to the financial services. Up by currently 4 . The financials as stocks rising and not one is declining. [indiscernible] big, big games. Gai the cut from beijing. Ns. The first is 2012. People are wondering if it is the start of a broader monetary easing. Lets get to our china correspondent. What is everybody talking about. Course, it is interesting, i heard john there and we are seeing a positive stock Market Reaction to the cut but many have called fridays move by the centralbank a surprise in the interesting inc. Is the main ,conomist at the big banks jpmorgan, chase, ubs, they said the bank will ask again with another cut. Maybe not that much of a surprise. They are saying it signals a policy shift toward more aggressive monetary easing reflects the governments concern about nearterm growth after the october numbers have not been a positive for the government to meet their growth target for the year. They said there are desperate efforts to lower the sector in china, especially medium sized industries. One person said the conditions for further monetary easing are right. The centralbank cutting its benchmark i40 basis points to 5. 6 in the oneyear deposit rate by 20 basis points. More importantly or interestingly, and raise the deposit rate ceilings and the allows banks rate of flexibility to offer savings above the benchmark. Authorities opens when them have resisted these cuts, favoring more targeted evening have up until this point resisted these cuts, favoring more targeted. That does put the governments for your target in jeopardy. Rish . It is a question, isnt it, steve . Holding these cuts help of the most what mark do we run the risk who do these cuts help the most . Do we run a risk . Yeah, there are two sides to look at everything. The concern is when borrowing costs, down, where does the lending go . And that has weather with the easing it will going to the property market. Authorities claim of these moves are designed to help Smaller Companies that their lines of credit they need. With the higher deposit ceiling, it will help households. The ball of bangladesh and china is still concentrated on the big borrowing the bulk of big banking in china is still concentrated on the borrowing. [no audio] the big question now will the banks take their marching orders . Yes, rish . And dont worry about it. We had a bit of a technical issue but i think we are over it now. It seems like we still do have a technical issue. Awardwinningur correspondent. The other corporate stories making headlines today. Chinas Biggest Nuclear power company. Cmj power is planning to raise 3 billion in an ipo and they start taking orders as early as today. Get ready for mickey mouse with a chinese twist. Forey is incorporating shanghai video for international audiences. The companies agreed to make disney movies for audiences and china. Is maker of frozen developing cartoons for chinese viewers. In has the bhp billiton have announced cuts. A 4 billion through jerome through june 2017. Capital spending will be cut. Sales falling to 13 billion. Those are some of the top corporate stories. Lovers. On alongside the usual paintings and antiques, christies is introducing classic handprints handbags and david inglis is at the sale. What have you got . Yeah, it is advantage. Vintage handbags. The first time here and hong kong. Among other things. You have art, antiques, wine, jewelry. Theg reason we are here is first time will see a lot of the vintage handbags go under the hammer. Handbags willage be auctioned off later this afternoon. An indication of what kind of market we are talking about. The market has existed for some time. As far as the example is concerned, christies is trustworthy avenue by which these transactions can take place. And addresses concerns about fraud. To give an indication of how big this market is, we have a list of companies. We will look, so forward to this. The auction takes place later in the afternoon. Ok, in terms of what is on sale, what are we talking about in terms of cash . Yeah. Anyone miss dream walk anyone s deram walking close it. It is one of