And taiwan in the next. David is having a look at general sentiment. We saw wall street client, and that normally has an impact here as well. We are expecting volumes to be fairly light over the next hour. Gdp of china comes out midmorning. Meantime, this is what were seeing across the region for taiwan, malaysia, and singapore. The cost be up 0. 4 . We are seeing a drop in the japanese yen. I will show you what is happening in just a moment. Top performer, the nikkei 200 205 the nikkei 225. The dollar is softer. It spiked in the last few minutes or so. Dollar10 climbing up as well. Dollar yen climbing up as well. A huge move down yesterday, 17 drop in 10 year yields. I think were seeing a bit of a rebound today. Food prices, we are below 48 for the new york knicks. As you can see, brent is below 49. That is obviously weighing on stocks. In australia, that sector group is getting hit the most. Oil and gas down 2 . A big move down on oil prices. Iraq the latest in terms of news. Record output weighing on the outlook for supply. There is a glut. Obviously not helping the case for higher oil prices, as you can see on the asx 200. Lets look at crude at the moment. Thanks for that, david. Lets look at what the impact is. Following currency shrinking. Hsbc says there is more on the way. We are expecting an acrosstheboard squeeze for crude sort of a snowballing with hsbc saying that wellfunded public spending will fall. Investment will fall. Consumption will fall. All of that affecting these crude exporting countries such as russia, saudi arabia. In october, estimates have put Economic Growth in 13 european and middle Eastern Countries to a growth about 2. 6 . Now analysts saying that will be revised down to 1. 8 . Russia the hardest hit shrinking three point 5 . Saudi arabia will grow 2. 8 , but there will be the slowest gain since 2009, and their budget deficit, 11 of gdp. Before hsbc was expecting a surplus. Crude exporters taking a hit. Were talking about russia and the middle east. Not that many losers in asia. But there is one, and we are talking malaysia. Because they are a net crude exporter. The oil and gas products take up about 22 of their exports, 30 of their state income from energy. Lunging prices have put the malaysian fiscal situation at risk government plans to reduce a fiscal is at risk as well. The Prime Minister addressing the public in about an hour to talk about this issue. He said yesterday that he will probably announce interventions and adjustments needed to face the new situation. How bad will it get if the Oil Price Remains at the levels . The budget deficit the budget as a whole that budget was drawn up while oil was still topping 100. So far this year, it has averaged 50. Below 60 analysts say malaysia is not going to achieve its target of reducing the budget deficit to around 3 of gdp. The good news is that the Prime Minister is getting some fiscal breathing room. Now they are abolishing this decadeold Energy Subsidies that are removing those fuel subsidies being removed will save them about 3. 4 billion. They are introducing a goods and services tax in april that is going to help the economy. Lets look at what is going on with these Oil Companies having a look at the oil sector. Looking at what else is going on, including the movers and japan. Potential big deals we are watching closely. A Company Confirming we may actually see or they are considering, this investment. A group is considering putting in a massive amount of money, 8. 5 million according to the nikkei newspaper, into the china pacific group. Eight point 5 billion, about a 12 stake. Pacific shares are halted in trade today. Why would they do this . We could see for the partners of citigroup of cp group increased access to regulated industries in china, for example. Watch that closely. We are down 3 . Obviously, the market does not think it is a good idea. It really big move for the computer maker, with a ninemonth net at net income ts tech makes car seats seats for cars. 27. 45 is your price right now. 3500 is what jeffrey is saying. Gold discovery, according to the company at this ballot prospect polar bear. Mccourty group now with earnings yesterday. A good chance to add. Rio tinto out with output for the fourth quarter. We are talking 12 increase in iron ore output. Production is a little lower than estimates. We are talking 70 million metric tons. The analysts were at 82. Obviously, adding to concerns of a glut when it comes to iron ore. Back to you. Absolutely. Underlining at all was the aussie dollar. More decline. The currency may fall as much as 15 , looking at about 70 u. S. Cents. This is the lowest prediction of all the analysts we have been talking to. This has hit cotton and copper and iron ore. Trading near its lowest in years. The European Central bank preparing its big push to prevent deflation. Economists expecting mario draghi to announce a Bond Buying Program that is 10 bigger than initially anticipated. Anticipation sending the euro to an 11 year low last week. Shanghai has retained its title as the worlds busiest container port the fifth year running. It push further ahead of singapore, estimating more than 35 million containers processed last year. That compares to 33. 9 million. There are large investments to meet demand, with the imf saying global trade grows about 3. 8 in 2014. It is the time of the morning when we checked the prospects of the session in india. The futures contract getting underway in singapore. It seems like it is sepulchral. Pretty much flat on that contract. We did manage to close out the session monday up by about 0. 4 . Still on the way, a look at what may be next for chinese stocks. The shanghai composite the most in six years. Plunged the most in six years. In less than an hour, we get gdp out of beijing. Economists expecting the slowest fullyear growth china has witnessed since 1990. A very good morning. Minister the expectations. Run us through the expectations. I can run you through the topline numbers. Bloomberg surveyed the economist, and taking the consensus estimate we explain we expect gdp to grow 7. 2 the slowest quarterly growth we have seen since the financial crisis in early 2009. We are getting your today gdp numbers. If the estimates are right growth will miss the government fullyear target of 7. 5 . It will also be the slowest fullyear growth since 1990. What really matters with this round of gdp data is, where is this gross pay growth base . Are we seeing jobs and wages staying strong . Are we seeing overheating, overinvestment . If you look at these sectors those numbers do not look so bleak. Certain components of the economy do well. You have had performance take up, job growth stay stable. There are parts of the economy that are not getting worse, and that is important when you look at the stimulus question. Was also important is how many Inflation Numbers we will likely be seeing next month. So far, slow inflation growth has been a blessing for the central bank, has allowed them to use targeted using to try to channel money into the area. We could see more spending and investment. Disinflation potentially heading into deflation. Even that, according to our guest, is not necessarily cause for alarm. Lower oil prices could become a stimulus for the economy. So it should not spur them into anything rash. We will be getting a press briefing shortly after the first numbers are out at 10 00 a. M. Local time, with some of these details. We also expect december and fullyear retail sales to show good production, and fixed asset data around the same time. Together, those will help us get a fuller picture of what the numbers mean this time. We will get more on this with a money manager in singapore. Thanks very much for joining us. Before we get to your expectations for growth, i want to ask you is this an economy addicted to stimulus . That is from a very shortterm point of view. I think in terms of development. With that Development ComesInfrastructure Spending and Infrastructure Investment as well, which in a way kind of distorts what is going on. Infrastructure spending has been shifting away from the coastal areas to the western parts of china. I think if you look at what is happening in the center to the western part, you see Infrastructure Spending still pretty strong but not in the developed coastal areas of china. Lets have a look at what you are predicting for 10 00 a. M. Beijing time when these numbers are finally coming out. I dont think it matters because it is just three months. I think if you are looking at development, growth assets take 70 years. Three months is a very tiny portion of that process. I am not particularly concerned with what the number is at 10 00. Lets quickly look at these chinese futures that have just come into play. They are signaling further declines stocks falling nearly 8 . Yesterday, the biggest drop in six years. They are expecting a big draw here as well. What is going on here . We had that effective margin call take place. What is that telling you about liquidity in china . I think the rally was overdone. We got a 70 rise in about six or seven months. By any measure, that is really overdone. I think even if there had not been this curb on the margin, the market by itself they already signed the rally was exhausted. It was due for a pullback. Whether it is going to be 1 over a day or 8 over a day, this is a market that is still developing, still not sophisticated. This volatility is a feature of a developing stock market. Do you foresee declines for a while, or a rapid got check before we stabilize . Gut and check before we stabilize . Quick the shanghai composite should probably go back to 2005, 2007, a little healthier than what it is now. We have export import numbers, the trade to the Global Economy doing well. How much of the Global Economy is being given a lift from this Lower Oil Price . In the longer term, there will be a lift. Whenever there is a major asset price, whether it is oil or property or stock market whenever they change rapidly with rapidly within a short time there is always the worry that a lot of adverse impact from the rapid change. I think over the long term, over five or 10 years, the Lower Oil Price will definitely be a boon for most economies throughout the world. What i think is not anticipated is, first and foremost, we see low price dropping to 20, for he dollars per barrel. I have been expecting that since last year. The major worry it is going to drop to 20 or 40. The worry is it is going to stay low for the next few years. I think that is something the Global Economy has to adjust in the next 1224 months. A lot of investment and Economic Growth in many countries has come from investments related to energy, whether it is traditional or modern energy. That would have an adverse effect first. The benefits would probably come in beyond maybe the next 2436 months. Dont forget i think the u. S. Economy is still deleveraging. Households are still trying to reduce that produced debt. And you are trying to maintain a savings rate is not too low. It is not like the 1970s, when Oil Price Plunge suddenly and it was great for many developing economies. Here, you have households that are still in a pretty i would not say panicky situation, but they want to respond with their balance sheets. The Oil Price Drop may lead to an offsetting growth in consumer spending. Great having you on the program has ever, from capital dynamics. He is the founder and managing director. On the other side of the break, warnings that the worlds widening wealth gap, with the top few tightening their control this is on the move. About seven minutes to go before things get underway in china. Hong kong also getting in the mix. Premarket, up by 0. 25 . The futures contract pretty much unchanged. Looking for a slight decline overall, perhaps. The shanghai composite had its biggest fall in six years. We are closely watching futures, which are indicating more of the same. Keep an eye on things at the bottom of the hour. It is the richest versus the rest, as the well cap yons ever wider. Oxfam says the top 1 will control half the planets wealth by next year. These numbers are quite staggering. If you look at the wealth of the richest 85 people in the world, that is the same amount as the poorest half of the worlds population, which is 3. 5 billion people. Pretty impressive. Staggering. Lets take a breakdown of the numbers real quick. The richest 1 actually own about 44 of Global Wealth in 2009, but look at that growth in the last couple years. In 2016, it will likely exceed 50 . Ownership of Global Wealth. That is what oxfam told the World Economic forum in dallas. 92 billion was added to the collective fortunes of these they are telling people in dow posts the richest people in the world . They are telling them to suck eggs . Are saying governments need to start cracking down on individual tax dodging. I think president obama is going to be dealing with some of this in the state of the union address. That is being rumored currently. China trying to do something about this as well. President obama is going to mention that in the state of the union saying he really wants to propose this tax on the wealthy. Put the Capital Gains tax top rate of to about 28 . It is a raise from nearly 24 . In china, they say tax officials are actually starting to ask citizens to report earnings overseas. There is a New York Times report saying these tax agencies have quietly started enforcing the regulations. Are they talking about global taxation . There are apparently new rules that will ban International Investments that are deemed to be tax shelters in china, according to reports right now. Oxfam says they are still seeing people talking the talk, but not walking the walk. We have this, at the moment, ever widening wealth gap. Housing numbers have risen. Average home price is 17 times how much a household makes. Home prices also up 12 for the year. Lets not forget in london and new york as well it is ridiculous. We did mention doubtless mention davos. We are going to look at what is on the agenda. Business figures fly into the swiss ski resort. Plus, we have the market open in hong kong and shanghai. We will have all the opening figures, looking at whether there will be further declines. Shanghai is about to open and all indications are for further declines. Deflation conversation it bends in events in davos. And buying a house in sydney has become ever more expensive. We are talking hong kong and what is going on in shanghai. David is looking at whether we are going to see the biggest declines in six years. Being exaggerated in chinas financial capital. I think we reached our drama quota for the weekend. We could take a few minutes before investors really find out what sort of direction they will be following over the next 30 minutes or so. The shanghai composite i was checking some of these stock prices for growth, which really led declines yesterday. It is mixed, but still a fairly clear picture. Financial services, down 6. 5 . Still, really substantial losses. I could go through each name but that is going to take us forever. You get the picture. We are seeing that continue to play out in shanghai. In hong kong, shares are doing better relatively speaking. We saw sharp drops yesterday for a lot of these names. Security were are seeing that rebound a little bit today. They do not see any Significant Impact on their margin in count margin account suspensions. Delicacy securities talking about sectors. This potential deal for investment coming from the cp group, china citigroup, 8. 5 billion we will continue to follow that story. Shanghai is up of further 1. 1 . The philippines is just about getting underway as well. The big one comes out 30 minutes from now am a gdp numbers. We will see if the government did well, was able to steer the economy and meet the targets for 2014. World leaders from business and politics on their way to the World Economic forum. The swiss franc and ecb stimulus expected to dominate discussions in the ski resort at dallas. Davos. Here is a look at the event by the numbers. Stephen engle is here. What is going to dominate the discussion . I will tell you it is, did you see the swiss franc and isnt everything so expensive . How much is this cocktail costing me. 35, that is probably cheap. I was at the belvedere website. If you are paying 36 swiss francs for a whiskey shot do you feel bad for the world elite . Considering they have already paid Something Like 70,000 just to be there that is your cheapest membership. I guess maybe the swiss franc is not going to be a big issue. If you look at the names of the people, they can afford it. Bill and Melinda Gates can afford it. Mr. Hollande maybe not. Angela merkel can afford it. These are the people getting together. The World Leaders get in free. You are on the invite list, so you do not have to pay. They are going to be talking about with the Swiss National bank did last week, the surprise shocking move that the founder of the World Economic forum told Bloomberg News he said, i predicted this a week ago, two days before they made the surprising move. He said he could see the clouds on the horizon. He saw with the ecp was going to be doing on the 22nd, perhaps unleashing quantitative easing. He predicted it but the World Markets obviously were surprised about this. There are going to be a lot of reverberations, a lot of discussion points, about many things. But a ripple coming from a stone in the ocean is going to be from what Charles Schwab had to say. Today, such a new ph