50s, 60s, 70s first, the positive spin is that it is out of recession. We did see some signs of life. It wasnt what economists were expecting. I think a big part of it was the big revision down, the thirdquarter gdp number. It was worse. Deeper than first thought. The initial read was negative one point nine. That brought they brought that down to 2. 3. We are looking at growth. The annualized figure is 2. 2 . The estimate was for 3. 7 . The Third Quarter revise number was down to 2. 3 . The recession was a bit deeper than expected. What was the reason for the weakness here . Lets talk about that a little bit. You had the export numbers were quite good for december. But the underlying demand spending, isnt quite where it should be. Lets listen in the hsbc japan economist was here. Listen in. Export is looking quite strong due to Strong Demand in the u. S. But Household Spending is still under pressure. I think that is going to be the case unless we get a big round of wage revisions starting in april. The boj basically has put 13 14 months to achieve that inflation target of 2 . They say in or around fiscal year 2015, which basically starts in march, and they have 12 months from then. We are about a quarter from the target of 2 . Ok. What about the yen, and how are stocks reacting . Its interesting. Before this, people were saying, some economists were saying, we dont need the boj to come up with more stimulus because it might be detrimental to the economic output. What we are seeing today, we are seeing dollaryen, 1. 1862. We are weaker for the japanese yen against the u. S. Dollar. Perhaps the markets are pricing in there may be need first and is right now. 118. 62. They are more or less aware we were where we were starting on friday. The nikkei 225 was the only market that was green. Off the high for the day. 18,052, still fairly high levels. Let me just break that down for you. Take a look at which sector groups are moving along. Industrials are doing quite well, up 1. 2 . Heavy equipment makers, engineering companies, industrial goods, capital goods, engineering. 19 out of the 23, 1, 2, 3 4, 5 6, so on and so forth. That is a sector doing well on the nikkei 225. Bond yields, higher for the 10 year 10year. There you go. The fiveyear is also up. There we go. A little bit. Overall, lets take a look at asia. I mentioned japan is leading the way. In fact, it was the only market up. There you go. Japan up 7 10 of 1 . The rest of asia australia, new zealand, and of course singapore, which is just opening up, down about 4 10 of 1 . I will be back later on. Greece and its creditors have been holding toplevel phone calls in the last few hours. This is as time ticks away on greeces debt. Creditors say this is been following a longrunning drama. There has been a phone call overnight, saying he wanted a phone call with phone call overnight, tsipras saying he wanted a phone call with jeanclaude juncker. 12 days left until the current bailout ends. They want a bridging loan until september, give them some breathing space and time to do the reforms. However greece cant say, i want, i want. 64 billion, the majority of it to germany. Overnight, peaceful protests, 20,000 people for example in the square in athens in front of the Parliament Building banners saying end of austerity. These were the scenes we saw. Also, by the way, right across greece, other protests not as big as this one, but for the last eight hours. That has eased off, if you like as people have gone to bed. On saturday, we had talks between greeces finance and Foreign Ministry and the ecb and imf, talking about areas where they disagree. Today obviously greece will be going to the eurogroup finance ministers meeting. There have been more friendly noises coming up the last several days. There have been but unfriendly, the french. Northern europe, perhaps more concerned about greeces stubbornness. Fabius, the current finance minister said in fact, we are looking to maybe extend the deal. The fins are saying, we are running out of patience with greece. Earlier on, we had a bank of singapore economist saying how worrying it is. It seems if anything the positions have hardened. You are getting comments coming out of portugal suggesting they dont want to compromise. They feel like they have gone through this pain, and politically, it might be damaging for them to give greece a deal having inflicted so much austerity on their own public. One less thing in germany, there was an election over the weekend in hamburg, regional. Angela merkel had her worst result since the war, but this is really a left area. What is interesting is that the antibailout antieuro party called alternative for germany won their first seat. 5 they had to get, and they got 5 . Antieuropean sentiment growing across the continent. That is john dawson. Lets check on other stories making headlines. Singapores Prime Minister lee hsien loong will have surgery after being diagnosed with prostate cancer. The 63 year will be on medical leave for a full week and is expected to make a full recovery. The broadest measure of new credit and china shows of new credit in china shows its second consecutive monthly rise. Shadow lending dropped in december, that as bank lending double from the month before. One of chinas biggest Investment PrivateInvestment Funds biggest private Investment Funds is looking to invest 1. 5 billion in london. Expect it to create 20,000 jobs and generate 7 billion for the economy. Antivirus Software Maker casper ski lab calls it unprecedented cyber rubbery. A gain of sophisticated hackers have gone to another level going online to steal 1 billion over the last two years. What has happened with that money . It is still going on. This is what is kind of scary. You can track them, but you cant catch them. Let me give you the details of this. Kasperski lab, in connection with interpol, have revealed 1 billion was stolen from various Financial Institutions banks, even aim and platforms, since 2013 epayment platforms since 2013. In one, hackers sophisticated late inserted sophisticatedly inserted into the Computer Networks with a malware, which allowed them to go from the desktop on one particular employee into the network, infect the network, which allow them to control surveillance cameras, which allowed them overtime to watch and then mimic bank transactions. They transferred money out of the system upwards of 10 million per attack. There were other cases where atms at banks were programmed to dispense money at a particular our that somebody would be there paricular hour particular hour that somebody would be there at that time. These transfers are relatively large. A high level Internet Security conference taking place at Stanford University. That is why it is so amazing these kinds of things can still happen. What was interesting, it didnt matter what software or what networks the banks ran. These heisters were able to go in and penetrate them. The Cyber Security summit hosted by Stanford University is kind of trying to bring the government and the private sector together on the same page. There have been some riffs. Rifts. Tim cook was there. Other ceos of tech giants or not. President obama was there. This is what he had to say. As a nation, we do more Business Online than ever before. Trillions of dollars a year. Hightech Industries Like those across the valley support millions of american jobs. All this gives us an enormous competitive advantage in the global economy, and for that very reason, American Companies are being targeted. Their trade secrets stolen. Intellectual property, ripped off. President obama said we are in a cyber arms race, if you will. That is a threat to national security. We havent been pointing any fingers. There has been a sophisticated game that has been able to do this, but kaspersky says the members of the game hail from gang hail from russia, china, ukraine, and elsewhere. Still to come, emerging from recession with more of a limp than a sprint. We are going to be discussing the latest japanese growth numbers. On the move in just a cup is back in just a couple of minutes. We are going to check out some of the stories making news. Denmark is in shock after a gunman killed two people in copenhagen. Police tracked the suspect across the city and shot him dead after he fired on them. He had a criminal record and was known for gangrelated activity. The victims were one person in a cafe holding a freespeech debate and a man at a synagogue. Islamic council has condemned the attacks. The latest ceasefire in Eastern Ukraine is threatening to unravel after one day. The government in kiev and prorussian separatists are accusing each other of violating the truce on the road between donetsk and luhansk. The fighting has subsided in most areas. More than 5000 people have died in almost a year of violence. Thousands of people rallied in the center of athens ahead of what has been described as a day of reckoning over greek debt. They are showing support for finance minister Yanis Varoufakis crew will return to brussels to try to win a bridge boat and more time to promulgate a postbailout strategy. Both sides indicated a degree of willingness to compromise. Lets have a look at another economy that has been in intensive care. We are talking japan. We had a morning gdp numbers showing a recovery, but the patient is still sick and weekly, some people would put it. Nicholas smith joins us from tokyo. What was your reaction to these figures . I dont know. I think the worst mistake you can make in japan is to make too much about quarterly gdp numbers. The slight and utilizing of potholes in the road annualizing of potholes in the road. What you have to watch is the profit growth. Nominal gdp is off 7. 9 . Herbert profits are up 106 . Im looking back over the last 12 months and saying pretax profits in japan are up 12 and you look at eps in the u. S. , and its slowing. December quarter, 6. 6. The Consensus Forecast negative 2 for the march quarter 2 for the march quarter. One of the driving factors the expectation that wages will be going up, that hiring is growing strongly, and we have a labor market that is absolutely i watering eyewateringly tight. Shinzo abe wants to lift up wages. Isnt your hypothesis that we will see some serious wage pressure . Absolutely. What i have been writing about is to say, dont sit there whining about if you understand the numbers, because the numbers actually show that wages really are going up. Dont sit there whining about wages. You should be concerned that wages are going to move up fast. In some businesses, Companies Wont be able to cope. They will have wage increases that squeeze profits or they will be lacking the people and have to close down some of the business for lack of people. I think the outlook for consumption in japan is very good indeed. Lets talk a little bit about the young. When we got these gdp numbers we saw the yen off its recent range. In which way will we break out of that range, and what would make it happen . From the point of view of japan, the yen has moved a very long way. It has come from a peek at 75, really oscillating around 120. As far as Japanese Business is concerned, the yen is no longer the most important thing. They are very comfortable with the yen at 118. The manufacturers have a breaking point at 92. They are making out like bandits. All they are asking is please, lets have the yen stay at one place, and we can make a lot of money. From the point of view of investors, if you were a u. S. Investor, dollarbased investor, as the yen has weekend, of course it has made Companies Much more profitable, so the stock market in japan has gone up and you have seen the benefits taken away from that by the weakening yen. I think we end up with the yen staying absolute constant, but the corporate profits continuing to grow further with the benefits of the week yen, the week oil price the improving consumption on the back of increasing wages and increased employment. We are going to get a stock market that goes up and a yen that is holding steady. That is absolutely excellent news for investors. Very quickly, as well, just to pick up on it, you mentioned the week oil price. That must be helping the japanese economy quite a bit. It is absolutely vast. Most economists look at this out. Nuclear power plants have been switched off, and they were replaced actually with lng. Lng is tied to the oil price. It hasnt cracked yet. Its about to come off fast. We still had a high lng price in the last quarterly gdp numbers and exports started to pick up. What we are going to get is a thump down in japans fossil fuel costs combined with recovering exports. Thank you very much indeed for that. Weve got to take a break, but coming up, making its way to mongolia. Find out why porsches parking up in the countrys capital. Investors in the goalie had little time to cheer about in mongolia had little time to cheer. Authorities have been convicted of tax evasion. Even so, porsche thinks now is the right time to enter the market. Our correspondent has been for a test drive. German engineering, leather interiors. With mongolia mired in economic woes, why is the carmaker revving up to do business just when everyone else is leaving . Please got a commitment to our customers. The decision was made to come into mongolia for those customers who werent being serviced properly. Although the economy isnt what it was in 2011, we are still committed to the longterm future. Is it a big enough number for a branch . Those 50 numbers customers need to be taken care of. The roads in mongolia, will those affect or sales . The road work in mongolia has grown massively. There are lots of new roads that have been constructed, and they are much better. We also specify our cars for the mongolian market. The cars come into mongolia are custommade for mongolians. There is actually a mongolian specification we order from porsche, which equips the cars to the usual for this market. That option is only available to us because we are here. Where did you picture porsche in mongolia in five years . We want to be the most successful luxury brand in mongolia. That is a tough target to achieve. Will you pursue your customers in mongolia to leave their other luxurious cars and buy a porsche . What would you say . Please . [laughter] porsches mongolian ambitions. Coming up, we are going to have a look at the latest scrutiny intensifying, hsbc apologizing for tax accusations. We will have the latest on that coming up. It is time for the start of the trading day in hong kong. Shanghai also Getting Started off. Look at that. The opening numbers coming up right after this. Japan emerges from recession, but with more of a whimper than a bang. Hsbc has issued an apology over tax evasion as accusations spread to the banks indian arm. Rumors that apple is to road test a new product. Lets get to the start of trading in hong kong. Lets get a flavor of the asiapacific action. Lets do that with david inglis. It took a little bit of time to warm up across most of these markets, japan as the performer has been the upper former outperformer over the last hour, hour and a half. This morning, gdp numbers weaker than expected exports helping things along but not quite as much as some economists had hoped. I mentioned we took a while to warm up. Here is how we are shaping up right now across the asiapacific. It was only japan that was green. You have other markets that have turned around very slightly fractional gains in both australia and south korea. Shanghai is going for six days of gains, and we are looking at a third day of gains for the hang seng index. Malaysia is up a fraction. You have singapore down about 0. 5 . Taiwan is already closed for the Lunar New Year holiday. A few things i want to note about china. On friday, you have the country basically releasing the latest read in credit. Once, for example, beating expectations new loans for example, beating expectations. China medical system, up 3 for that stock. Full year, gaining 60 year on year. Properties were down 2 for the stock. We are likely looking at a drop of 60 70 off 12month net income compared to the previous 15 months. Its not because of core operating issues. We are basically looking at it, based on what the company said because of right back writ ebacks. Bank of east asia, down about 3 10 of 1 . Very quickly the big three of the big four im going to give you a shares, accor bank bank of china, and construction bank. We are talking about new loans. Ive converted this to dollars for you. 236 billion in january. Aggregate financing, which puts together Everything Else social financing or whatever you want to call it, 328 billion. What that suggests is that at least for january more of the money was being poured through the Banking System on Balance Sheet loans into the economy, although the broadest measure of money supply dropping to 10. 6 if im not mistaken. Is something to watch. I will leave it there for now. Thanks very much indeed for that. Japan out of recession but still weak, the economy hobbling alo ng. James mager is in tokyo. We got a long, long way to go, havent we here . Good morning. Thats right. The growth we saw today was much lower than expected. The economy grew 2. 2 in the final quarter. Economy didnt grow at all in 2014. The real gdp growth for 2014 was zero. After a couple of years of growth in 2012 and 2013 the sales tax hike, and then falling Business Investment in japan. It meant that the economy stated still. Even though it has returned to growth in the Fourth Quarter, it is not as strong as we were expecting. Weak consumption and weak Investment Data really is not the boost that the government or the boj was really looking for from this data. Do we know what is behind it exactly . Also if we look in the rearview mirror, we have had regions in the past where the economys contraction was worse than thirst than first thou