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tv   Trending Business  Bloomberg  November 29, 2015 8:00pm-10:01pm EST

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monday, the 30th of november. this is "trending business". we are going to be live in sydney this hour. a currency check. it is a big day for beijing. the yuan is expected to join the world elite. christine lagarde is already on board. disaster, 13 people died
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and some say the cleanup bill could top $5 billion. climate changes. the world's wealthiest people are signing up for a healthier future. clean, affordable energy. do follow me on twitter. china-hong kong markets getting underway. singapore is starting up their trading week. it is a busy one. here is haidi. no rest for the wicked as they close in on the last month of trading for the year. let's look at how we are sitting at the head of a busy week very a dire look at the markets here in asia. meeting -- further easing, more cuts to the deposit rates to 70.
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the payroll data is coming out. the policy review, liftoff is expected. let's take a look at the markets. stocks are popping up by 4/10 of 1%. the region, extending last week's selloff on the back of those chinese jitters. take a look at the china market. we are expecting brokerages making headlines of the weekend. we have more details on what is driving those brokerages down. all three of the brokerages are trading and shortselling. regulators are very sensitive about these aspects of the business having driven in part that $5 trillion stockmarket selloff and the run-up before that. trading limits are down.
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the chairman has been missing and that stock is in the red. on thateeping an eye before the china-hong kong opening. a pretty mixed bag of data. industrial production missing the mark. point 4% gain versus 1.8% expected. -- a mixed reaction for some of those tokyo stocks. the coffee is extending -- the kospi is extending losses. that was a miss as well. it is a big day for the chinese currency. it is expected to graduate to the next level in the imf. adding to the special drawing rights basket. room, dollar, euro,
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pound, and yen. some analysts argue this could be the trigger for devaluation as policymakers shift focus towards supporting exports. considers therde yuan as usable as a test for inclusion. five months ago, the currency appeared to have solid short of the mark. in a july report, the imf found that yuan ranked seventh. the four members as well as the canadian and aussie dollar. the use of international transactions also remains heavily tilted towards trade with limited adoption as an investment currency. the progress of internationalization appears to
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have closed. it could boost the chinese currency portfolio allocations across a broad class of investors. the would likely come at expense of u.s. dollar holdings which accounts for nearly 42% in waiting. although the euro may be the most adversely affected in the basket. 37% of waiting. that the estimates yuan would have a 14% weight. expect a report on how the imf came to that decision. coming onore detail that story. bhp billiton having another hard time of it in sydney. brazil intends to file a lawsuit after the dam disaster.
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the cost of the disaster could top $5 billion. paul, is this likely to go ahead? paul: it is going to be filed today according to the brazilian government. the attorney general saying he must be held accountable. will direct them to see the funds and they are filing for $5.2 billion in damages. that money will go into a fund to pay for the repairs. php says it has not received formal notice of the action. i am sure they were expecting it to happen. they will commit to rebuilding some marco as well. the stock price -- samarco. today, bhp has lost almost a third of its value. date, bhp has lost
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almost a third of its value. a very tough 2015 four bhp and now it looks like it will be a long and difficult place for 2016. hp down nearly 2.5%. following day one of the climate change conference in paris. we enter the first full day of talks in paris. 10:00 a.m. will be the opening remarks. we have the chinese president, and president, and president obama, and the un's secretary-general among those scheduled to speak. the u.s., china, and others have pledged to act. the objective is to build momentum. there will be objections environmentally. they say that any agreement in
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paris must include regulatory review periods. and occasional outbursts around the world. in paris, you had at least 200 people detained after a peaceful demonstration that turned a little bit ugly. the french president denounced these protesters as outrageous. meanwhile, on the other side of the world, and a reminder on why the deal is needed, aging released its pollution level at the second highest level. china had earlier announced that it had already met pollution reduction targets for the year. later on, we will see how this is all being seen on social media. us us have a look -- let rise above the pollution and take to the skies. indian budget makers spicejet says they have received interest
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from the gulf. we have heard from the chairman who was speaking in dubai on sunday. this is what he had to say. some of the gulf airlines have expressed an interest in spicejet as we have come back into the market. this is not the right time to be diluting the equity. ande is dialogue going on we continue to explore other types of relationships that we could be having. let me leave you with this. the shares have done ok. up 210%. just this year alone. finally, we have some more details on this sab miller deal. we have learned that amb beverage has considered selling some of these brands to sab miller. in an effort to appease concerns from regulators that this deal would be bad for competition.
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sources have told us that the talks are still at an early stage. a formal sale process has not been started. you have representatives from sab miller declining to comment. there are some challenges in getting this deal done. getting the clearance. they are concerned that the combined company will be too big and bad for competition. it is a valid point. it will have the number one or number two position in 24 of the world 30 largest beer markets. let's look at our website. we are looking at the effect of $30 oil and what that would mean for the russian economy. severely threatened it essentially. later, japan's dream isa green automated future
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all self-inflicted. we have a closer look. coming up, this week's u.s. jobs report will be an important data point. what can we expect. ♪
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.ishaad: "trending business" just about a quarter of an hour ago until the chinese markets open. this is after friday's big selloff. let us check in now. you look at the option side of things and that is why you are visiting hong kong. this is a nascent market but tell us about the options. >> the options market here in hong kong and mainland china is still relatively in the early days. market to develop the
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with u.s. exchanges and european exchanges as well. as for the conference, the first of its kind. rishaad: many people talked about -- the agent shares in china. twostock connect -- the would march because people would see arbitrage possibilities. >> it will take time. things do not happen overnight. the connection will have some success but it will be a longer term thing. when you have a more developed options market, that premium will go. >> a lot of it has to do with the regulators. there has to be some kind of consistent oversight with equity markets. itsoptions market is in best is relatively early on. rishaad: you have to have a regulator that is consistent. consistent with equity markets.
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you really do not know what is going on so you need to have that transparency. >> this year, we saw some examples where it they changed their minds one too many times. more transparency. we need to know what the regulators are looking for in the equity markets and other parts of the financial markets. rishaad: a huge week. particularly in the u.s. and europe. >> thursday coming ecb. friday, jobs report. rishaad: ecb. is for the december meeting. we saw a week or euro -- weaker euro building up to the meeting. rishaad: this is while the data is turning mario draghi's way. >> i think he is putting
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pressure on equity markets and bull markets as well. they have been pricing in at they come into the market. rishaad: friday, payrolls, unemployment reports. this should crystallize whether they move next month. a the october jobs report was big shock, a positive shop. the november -- a positive shock. the november report will factor in at about a 70% chance regarding the rate hike. rishaad: everyone is talking about when the next one is and how gradual will it be. >> the first rate hike is factored in. the really important part for the financial market is what will happen in 2016. if we see something like a 20
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point rate hike in the first quarter of next year, and after that we begin to plateau, i think that is reasonably satisfactory for the market. rishaad: what is the impact? in europe, it is in the wood. itin europe, we saw a lot of in november. after thursday's meeting, let us see if we have that moving towards the dollar. a stronger dollar is something that is going to be here to stay. rishaad: what about sterling in all of this? to do with people looking at the possibility of that eu referendum not going the way that the prime minister is thinking? >> that is a two year time horizon. referendum will be 2017. dollar strength is more of the issue. rishaad: when does the bank of england move? >> that is also on the horizon.
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what isthat is below going to happen with the u.s. dollar. the u.s. dollar is the world's reserve currency. rishaad: how much are you looking at the possible inclusion of the yuan in the special drawing rights basket? >> this is the early days. the events in august or something quite dramatic. i sure hope we do not get a repeat of that in the next month. rishaad: thank you so much for joining us. let's take a look at some breaking news. jp morgan coming out and saying that it's bonus pool will be kept unchanged from last year. these are the stories making headlines around the world. the body of the russian pilot killed when his plane was shot down over syria last week has
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been flown home to turkey. ankara has warned against non-urgent travel to russia after russia has imposed sanctions. russian companies have been told to stop hiring turkish workers. russian football clubs will not be able to buy turkish players in the new year. the philippine air force has taken delivery of two fire jets from korea to bolster defenses during the escalating territorial dispute with china. jets touched12 down at the former clerk airbase. they will be -- they are primarily training aircraft. thaneal cost manila more $4 million and the remaining 10 planes will be delivered over the next two years. she has met her party's new lawmakers find -- following their landslide victory. the national league for democracy one thing almost 80% of the votes.
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she is currently barred from the presidency by the constitution. the military backed government has promised a smooth transition to power. neither the army chief or the president have responded to requests for talks. rishaad: indonesia's latest struggle for the take on the president's estimate -- efforts to build infrastructure. we will be back in a couple of minutes. ♪
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rishaad: the indonesian president has a $4 billion energy project that has hit a snag. they are refusing to sell land. the supreme court will rule whether the president can forcibly purchased the land. he is in jakarta. chris, what is the importance of this power station? chris: two things. indonesia is, short of electricity. this would provide 2000 megawatts in the heart of the country's most populous island. broadly, the project has become a test case of the president's ability to push the project in the face of problems with land acquisition.
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this is how much of symbolic and what exactly will the supreme court be ruling on today? chris: three months ago, the government said it would use a which allows012 for compulsory purchase of land for projects in the national interest. other countries have similar laws for many years. indonesia wants to use it for the first time in this project area the villagers, backed by greenpeace are protesting this. the implementation of the law. --is up to the supreme court if it ruled in favor of the cause the it would overhaul of his infrastructure ambitions. government toe win and in doing so, the project would begin early next year.
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if they do win in court, the government would still face problems. perhaps even think farmers off of the land. in a country like indonesia, that could bring other problems. the lenders will be keen to avoid that. rishaad: looking at the broader picture, what can you tell us about the president's drive to do something about the infrastructure of his country since he was sworn in? , he saidyear ago infrastructure was going to be his main focus. since then, he has flown around the country. groundbreaking projects. taking effortsn to streamline procedures. he has made the case that he needs more investment to boost infrastructure. on the ground, we have seen more of a mixed bag. talking to a developer last week, he said things have not
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atnged that much, especially the local government officials work with the private sector to implement these things. it is probably too soon to say, but next year, there needs to be not just a rhetorical success, it also real implementation success. and also, progress in getting these projects up and running right down to financial closure. rishaad: thank you, chris joining us from indonesia. breaks in clean car programs heading internal hurdles. and also the opening in hong kong and shanghai. this is "trending business". ♪
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rishaad: the u.n. expected to join in the world -- the yuan expected to join the world's leading currencies. along with the dollar, yen, euro, and the pound. the list is not been altered since 2000. christine lagarde has already said she expects it to be approved. bhp billiton down by more than 2%. brazil said it would take more than $5 billion, the --
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compensation for the mine disaster. 13 people are confirmed dead after the collapse of two dams with six others still missing. it is not yet had any formal notice of the lawsuit, billiton. world leaders are gathered in paris for a world summit. the 195 countries involved have already pledged commitments. ended inhagen summit disarray. beijing had a clear reminder of the climate challenge it raises with hazardous aleutian on sunday. the first orange alert in 13 months. let's get to the opening here in hong kong. haidi: it is looking bread. we have been bracing for this. the 10th of 1%.
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hong kong extending gains from friday. down by 4/10 of 1%. we are keeping an eye on those brokerages after they plummeted last friday and also after news over the weekend that a number of them are facing -- four shortselling. we are seeing a little bit of a bounce back for this -- for some of the securities. we will try to get you the numbers on some of the other ones shortly. down, itres already was suspended from trading ahead of the announcements. shenzhens are flat in at the moment. another brokerage under scrutiny.
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brokerages -- we are now in the green. overall, the region is looking like it is heading to its six monthly loss. let's also take a look at the cost be -- kospi. \ missing expectations. 1.4% in october. year on year we are also seeing a bit of a miss on that data. for someeing gains stocks. the tech sector. maker -- the online at app maker. kakao was up by almost 13%. the biggest gain in over a year. that these two
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companies have been giving operable to set up south korea's first internet only online banks. will inject some activity back into that sector the attack. a third name was not given approval so it is down by 6%. the decision on whether to add the yuan to the imf basket of currencies. deal?s a done robin: pretty much. even the u.s. has said it will back the inclusion of the you want. wand, on november 13 said it does meet the requirements. rishaad: christine lagarde said it. what conditions if any will be attached to the approval. rishaad: what do you mean? is thatonditional thing
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they will probably say yes, you are in. this is what you need to do. that would spoil the victory a little bit. --y may ask china to react to relax the controls on the yuan. the thing they will be looking for today is how much weightage the imf grants to the yuan. that itd in august would get above 14%. since it is not a freely usable currency, market expectations are at about 10-12%. anything less than that would spike some concern. what does it mean for the imf, if anything? the governor of india's central bank coming to china's defense about a week and a half ago.
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he said that it is unfair to blame china for the stock devaluation on august 11. this is unusual. china and india compete for investment and trade. changesd for governance at the imf and the world bank. is part of the emerging market block seeking more representation. can he for some changes? rishaad: thank you very much indeed, robin. china's first domestically designed passenger plane being handed over to its new owner. r.j. 20 12red a new chengdu airlines. of over 3000ge kilometers. it is competing with rivals from
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other airlines. in a transaction worth more than $4 billion. from aainder will come shared sale to its holders. a trading hold since the beginning of june. china -- as china's market gets underway, we have climate changes. pollution is at its worst in 13 months. pollution in china and other countries is the issue on the agenda. let's have a look at what we can expect as these talks get underway. david: some of the most -- there isissions a concern that these pledges still fall short. they met inn
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copenhagen, and that meeting fell apart in disarray, they pledged to limit the temperature increase globally, global 2.7 degreesround celsius. is, today, the aim in paris a two -- 2.7 degree temperature change. 2%2010, there was a temperature change. that reflects economic fundamentals and the divide between rich and poor nations and the wherewithal of nations to deliver on these carbon dioxide emissions commitments. china for its part has pledged that is emissions of carbon by 2017.ill peak in the u.s., it peaked back 2004. the emerging countries in the developed nations -- we will be closely watching is a divide
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emerges between the two. it comes down to the ability to pay for it and national interest. and the economic sustainability of countries. it is a very complex issue. they will be starting to chart today in paris. rishaad: talking about beijing. and hazardous pollution there. this is a massive issue. has also talked about its air quality. how does it reflect the stands in this part of the world on climate change? zeb: it illustrates the challenges that many countries are facing. they raised the alert to the second highest level on sunday. the last time they did this was 13 months ago. the pollution problems, despite pledges from the government to fix the situation, are not necessarily getting better. if you look across southeast asia, manila has its issues with
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typhoons and flooding as does ho chi minh. bangkokas persistent -- has persistent problems. we have images of a monastery just south of the thai capital. they are working day in night to try and protect it from the rising sea level. a compelling image. a vivid illustration of the climate issue affecting this part of the world. every country has a different approach on how to deal with it. rishaad: thank you very much. to japan, the prime minister has big plans for his country, especially when it comes to green energy and clean cars. bureaucracy is getting in the way. honda has been extremely critical of the government and its plans for a hydrogen fuel station. just a bounce off of the
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paris talks, this is a technology that the prime minister of japan has talked about. hydrogen being the way of the future. about building a hydrogen-based society in japan and calling fuel-cell vehicles, the ultimate eco-car. the only a mission being -- admission -- emission being water. these fuel-cell cars are dependent on infrastructure that does not exist yet to refuel these cars. smart hydrogen station , compact stations they are trying to sell but they are being slowed down by the bureaucracy in japan. these rules have not been set yet. it has been three years that they have been deliberated over. honda has real fears over these regulations inc. to specific and essentially -- being too
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specific. why are these stations important for honda's business? stationssmart hydrogen are aimed at really bringing refueling options to the rural parts of japan. you have seen hydrogen refueling infrastructure behind schedule around the world. you really see a problem outside of the bigger cities in japan. even with infrastructure being behind, you are starting to see more stations in bigger cities, like tokyo. it is difficult to find any options once you get out of the cities. they have pitched this product as an option. these smaller governments are hesitating as long as there rules are in limbo and the government is taking its time
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getting this solidified. thank you for that. we will take a break. coming up, the countdown is underway. the anticipated hike or another pause. right after this. ♪
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>> welcome back. these are the stories making headlines. has becomeestonia the latest to build a border fence to keep out migrants. payomes as the eu agreed turkey $3 billion to help tackle the refugee crisis. in return for ankara bolstering its border controls, it is dangling goods.
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from war zone countries, afghanistan, iraq, and syria. in north korea missile launch from a submarine appears to fail. according to a report by south korea. an official insole told the agency that the missile was seen -- that debris from the missile was seen in the sea of japan. a new type of missile was fired from a summary for the first time. under a u.n. resolution, pyongyang's band from testing missiles. the philippines has auctioned millions of dollars worth of marcos'jewelry. they are vying for the contract to sell more than 700 pieces including a rare pink diamond. manila is trying to find around 200 pieces of fine art once owned by marcos.
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the u.n. and the world bank estimate that they stole as much as $10 billion from the philippine people. athaad: let's have a look some of the key stories coming your way. on tuesday, we will get an idea if there is any improvement in the china -- chinese manufacturing. we are expecting it to inch towards expansion territory. coming just short of the 50 level. we will get a separate reading from the index. thursday, they are kicking off a meeting in bangkok. among the participants, finance ministers of indonesia and the the thaies as well at industry minister.
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the bank is hoping it will help them compete with national rivals. hong kong's fundraising is heading towards a five-year high. already a massing more than $25 billion. on friday, the start of the first africa-china summit. president sharing two days in johannesburg regarding security and investment. they have built infrastructure links across the continent. up next, rallies around the world demanding action on climate change. we will have all of the action on social media when "trending business" returns. ♪
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rishaad: let's get a head start on the key events we are watching for this week. let's start off with the most important data point for the end of the week. the all-important jobs report in the u.s. it could crystallize a move in december. the strong october payroll see marketsy did are in their expectations on the federal reserve. given that we have indicators of the labor market such as weekly jobless claims tracking at 1970 those, i think you're going to see another strong number in november. of ground -- around 200,000 new payrolls added for the month which will cement expectations for the lift off in december. rishaad: that is what we are
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looking at when it comes to interest rates. that is what we talk about. what about the european central bank? a move to the downside for the euro. that is going to be one of the key issues. the events of this week, particularly in the central bank space are really going to highlight the themes that will dominate 2016. and that is increasing policy divergence. expectations of the fed moving in december. i think the market is certain on liftoff. the key question which probably the november payroll report will add color to is the flow of the monetary policy normalization from the fed. ecb, we are still seeing the preparation for multilayered easing. draghi in contrast to the fed is
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very downbeat particularly on the outlook for inflation. in the euro area. particularly downbeat on the risks of emerging markets opposing to the european economic outlook. as a result of that, you clearly are going to see the somatic firmly established this week of increasing policy divergence between the ecb and the u.s. federal reserve over 2016. rishaad: what about give urgent monetary policy? how does that work in the financial markets? >> clearly, it is going to express itself throughout the financial markets. and the pricing of financial assets. what we have seen, ever since ben bernanke what the idea of the paper in 2013, is it. universal --d of
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in terms of divergent monetary now moving-- and is on with the vanilla monetary policy, that pays will slow. but certainly will be an ongoing for the boj, and the ecb. there is a recognition that quantitative easing has diminishing returns. each round is not as effective. as previous rounds were. but certainly, one of the nineended or perhaps the intentions of quantitative easing from both the ecb and the boj is currency weakness. currencies,king off looking at the yuan. how closely are you watching what the imf does in terms of the sdr? >> i am watching it very closely
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because i think it sends an important and formal signal, not only on china's economic situation but china's financial weight and china's currency as now catching up to that. it is going to be evolutionary, not revolutionary. you will not see a surge into chinese assets. massive inflows of capital into china. over time, that formal inclusion of the yuan in the special waitinghould see a real -- reweighting of china's financial assets. rishaad: thank you. let us have a look at what is going on social media wise. david: today is the start of formal talks in paris on the climate debates. thatopefully reach a deal
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has been 20 years in the making. a head of those formal talks, we did see rallies rallies across some of the major cities in the world. have a look at some of these pictures. a few in south africa. some in berlin. spain. thousands of demonstrators calling on world leaders gathered in paris to reach a global agreement on how they will reduce emissions. , thousands ofs pairs of shoes late in a symbolic gesture. given the terrorists attacks that have happened there a few weeks ago. a sign of protest as well. and hopefully a simple. let us have a look at what is happening in china. sign thats a fairly the deal is needed, beijing
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raised the pollution alert. -- quickly host something and the sky will turn blue. rishaad: the next hour of the show, we will have a look at luxury in hong kong. a rare watch expected to set a record. ♪
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rishaad: it is monday, the 30th ,f november, i rishaad salamat and this is "trending business." .elcome there is a look at what we are watching. yuan.u want -- the christine lagarde is already shed -- has already said she approves. in brazil, 13 people died and six are missing.
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cleanup bill could top $5 billion. some of the world's wealthiest people are stepping up the drive for a better future. bill gates says it is hard to overtake the impact of clean, affordable and -- to overstate the impact of clean, portable energy. markets, a bit on the back foot you could argue. a bit of a mixed bag. class shanghai -- >> shanghai stock not really knowing what it is doing. shanghai is currently up by 6/10 of 1% on the back of its worst weekly loss in three months on friday. the rest of the region decidedly in the red. -- anghang up by about seng up by about 1/10 of a percent.
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chinese brokerages being losses on friday. we are seeing a bit of a recovery. we have had some analysts saying that we should expect a bounce today because these shares were oversold on friday. trading, andmargin ultimately this is a good thing for the chinese market because it indicate that chinese regulators are trying to prevent a buildup toward another bubble. elsewhere, security sitting not much better at the moment. shenzhens trading in off but just about 1.5%. let's look at korean markets as we did have a data dump earlier today. there are some stocks in korea
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are doing quite well. in particular, these two stocks. these are two names that have been given approval to open south korea's first online banks. shares of by almost 30%, its biggest intraday gain over a year. yuan,d: big day for the expected to join the international monetary fund reserve currency basket. doesn't pass the test? yvonne: it has been a decade-long journey for the renminbi. the imf will likely gave that be includeduan to in the basket. but does it deserve the elite status? some analysts say it is still not fully convertible. five months ago, the currency appeared to fall short of the mark as well.
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in a july report, the imf found ranks seventh in share of official reserves. yuan mean of one .6% of reserves, compare that to 60% of the u.s. dollar. it remains heavily tilted toward trade with limited investment. however, recognition of the yuan as a reserve currency by the imf could boost the portfolio allocations across a broad class of investors. this would likely come at the expense of u.s. dollar holdings which accounts for more than 42% of weightings. the euro may be affected. yuan suggested that the would have a waiting just
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between 40% and 60%. some argue this could be the trigger for devaluations as policymakers shift focus to supporting exports now. concerned that it may only have a 10% share. of 10% less will lead to some selling. that decision and more details will be released later today. take a morewill detailed look at that story later on in the show. we want you to tweet us your thoughts. #trendingbusiness. to file as it intends lawsuit over the dam disaster. the cost of the disaster could top $5 billion. does this go ahead in your view, and what are we looking at a
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particular? the papers are bent to be filed monday morning brazil tied. the attorney general says it is going to happen. $5.2 billion in damages being stocks for that money, which will go into a fun that will rehabilitate the area. 13 people confirmed dead, six still missing after what happened on november 5. 50 million tons of mine and mine waste swept down the river. they say the plume has now reached the atlantic ocean but they haven't received formal notice of this action. take a look at the stock today. off to .25% right now. shares have, bhp
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lost one third of its value. iron door and other commodities have slumped. we were discussing last week that the a credit rating may be at risk. 2015, a year to forget. it is not over yet. rishaad: thanks, paul allen in sydney. now you look at the other stories we are watching. first, a look at all things green, hopefully, in the french capital. we are entering the first full day of talks in paris. formal opening is later at 10:00 a.m. local time. we have the chinese presidents xi jinping, president obama among those scheduled to speak. we understand china and the u.s., along with major emitters, plan to act to build on this
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momentum. however, you have environmentalists saying that any agreement in paris must also include regular review pyramids -- review periods. at least 200 people were detained in paris after what was a peaceful demonstration. denouncedhollande these protesters as "outrageous." perhaps related to is bigger picture, and what a not-so-subtle reminder as to why a deal is needed, have a look at these pictures out of beijing. the city has released of pollution letter to the second -- pollution alert to the second-highest level on the day they had announced they had only met their pollution targets for the year. later on, i will take you
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through what is being said across social media. let's go across the pacific. brazilofile arrests in connected with this graft scandal. -- if youe court haven't heard what happened, estevez and a veteran lawmaker from the senate were both detained amid allegations that they tried to interfere in this ongoing corruption investigation. this company is the of the screen, that is the stock price. we are learning from people familiar with the matter that it is the partners of the firm in talks that they will buy those stakes. they had already pulled out over $1 billion.
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an official at the bank declined to comment. finally, from banks let's go to booz. miller deal that is in the works. and consider selling some of these brands of sabmiller. keep in mind, those units stumble onto sab miller. if they do have bought up, they belong to abv-inbev. one of the major stumbling blocks is getting regulators, who are concerned that the combined company will be to make. that is a valued point to consider that it will labor have the number one or number two positions in 24 of the world's
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30 largest beer markets. we will be updating you as we learn more. rishaad: on our website, we are learning the red flag to the comes to china's bond market -- china's bond market. , gulf airlines. we will head to mumbai for the details. after this short break, more of the imf decision on creating -- on including the yuan in the basket. ♪
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rishaad: a big day for the yuan. rate and fxasia
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strategy at bank of america merrill lynch. it looks like they are going to get in, it looks like a done deal. the point is, it may be conditional. that is perhaps where they could fudge it a bit. >> there is obviously a big political element. the imf feels it qualifies as a freely used currency. conditionality, i am not entirely certain that will be there as part of the inclusion. there will be some commitments china has been made and they will continue down that line, but i don't believe there will be explicit commitments. rishaad: did it actually change anything? i think in the short-term, no. in a medium to long-term, yes because the argument is that china will be more comfortable and letting their currency more
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-- like more currency more flexible. the nextte that over few years, it could be about $370 billion worth of inflows into chinese government bonds. rishaad: materially, when it comes to the other currencies, how does it work with them? adarsh: essentially, any member of the imf will have to shift allocations away from the other currencies to the renminbi. longer-term, where the share will fall will be the dollar, euro, yen, and sterling. their bond markets, the japanese bond market, the european government bond market are huge. rishaad: let's have a look at what else is going on in the currency stage. not only the payroll report at the end of the week, but we have the ecb haswell. aussie rates decision. i think the market as
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may be primed for a bit of a disappointment from the ecb. a lot has been baked into the cake. rishaad: it has really been declining. adarsh: i would argue positioning a short as well as. -- the ecb ecb that -- going into the meeting, i would think that people would reduce risk. rishaad: employment. adarsh: we were just discussing before this, payrolls is a bit of an annoying number because deals withecision every payroll number. it would have to be a very weak report. 180,000.e expect about we will have month then
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of everybody saying, will they be raising rates again. >> the fed is going to deliver a dovish hike. they will be to hold up the data dependency card. rishaad: which is what they have to do anyway. what about mario draghi's position? there is a lot of room for disappointment here. data, not the inflation data, but the rest of the data, is coming into a direction. i think the activity data and the sentiment indicators have been improving. 's point ofm draghi view, that is what has been disappointing. they have limited scope to ease further. think they will have to do something. glenn stevens, on the
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held at the reserve bank in australia saying chillout. adarsh: i think they should chillout. the rba to be is in a good position. i am actually a bit more positive australia going into 2016 compared to other countries in the region. they have had the currency adjustment a lot quicker than other countries. rishaad: thanks ever -- thank you a lot for that. >> other stories making headlines. the body of the russian pilot killed when his plane was shot down over syria last week has been flown home from turkey. and kara has warned against .onurgent travel to russia turkish imports have been delayed at border entry points and russian companies have been told to stop hiring turkish workers. russian football clubs will not be allowed to buy turkish players in the new year.
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the philippine air force has taken delivery of two fighter jets from korea to bolster his defenses during the estimate -- during escalating marine territorial dispute with china. they are primarily training aircraft that have been upgraded to a multi-combat role. the whole deal cost manila more than $400 billion and the remaining 10 planes -- $400 million. sun tzu chi is that her party's new lawmakers. the national league for democracy one almost 80% of the seats. although she is currently barred from the presidency. the military backed government has pledged a handover of power but has stalled over key meetings. rishaad: up next, find out how a canceled protest led to
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thousands of pairs of shoes be left on the payment of paris. ♪
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rishaad: polluted skies are once again grabbing headlines here in beijing. air quality is worse than 13
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months. pollution in china and other companies are -- china and other countries are on the agenda at the climate conference in paris. >> we can expect a vigorous debate on the framework. if they agree on an accord, this would be the first truly local climate accord to limit greenhouse gas emissions. 100 -- 177 out of 199 nations have committed pledges to cut their own green house gas emissions. according to the u.n., this is the biggest cut achieved. talk about the temperature increases taking place each year on the earth, this current usdge that we have before estimates a 2.7 degrees celsius increase in global warming since the industrial revolution.
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this takes us to the year 2100. in 2010, the same nations, many of them, headset and him of a two degrees celsius increase. the paris standard today is not as tough as it was back in copenhagen. tell me about beijing. terrible quality of the air on sunday. what is going on in this part of the world will be look at climate change and how important is climate change specifically? >> china the world biggest emitter. pledging that it will cut carbon dioxide emissions by the year 2030, that those omissions will peak. want to compare where these economies are relative to each other. ,eijing, on the weekend declaring its pollution level be raised to the second-highest alert level. we haven't seen that in 13
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months. pollution is a big issue. we know that these coal-fired power plants on the outskirts, but elsewhere around the region, there are others with the issues. we have cities like manila that deal with chronic flooding, typhoons. thinking the airport is built in a swamp. look at these images from a monastery just south of the thai capital. they are working feverishly to save this from a rising sea level. i believe this is the gulf of thailand. this very old monastery is literally close to being swallowed up. it is just one example of what is happening all across the region and the world with no clear solution on how to tackle it.
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rishaad: thank you very much indeed. making social began headlines in china. dated: also keeping government spinsters fairly busy. also keeping government spinsters fairly busy. pictures ofing at northeastern china early november. whichsly, there is small has spread into cities like beijing. also raising its air pollution warning to the second-highest. some of these comments coming through from social media. let's have a look at what is on when user saying this.
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just seeing what this next five-year plan will be. pointed out, china managed to hit pollution targets. up next, south korea's first internet only lenders. ♪
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rishaad: the yuan trading as we get -- trading at its weakest in september on the day when the imf considering adding the yuan to the reserve currency basket. in 2000, the euro replaced the french franc and the deutsche mark. christine lagarde says she expects yuan to be approved. brazil's said it would seek more
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than $5 billion compensation from the iron ore mine disaster. six other people are still missing. they do not yet have any formal notice of a lawsuit. security is tight in paris. a summit to deliver the first truly global deal to curb greenhouse gas emissions. 195 countries involved, signaling stronger political will then the 2009 copenhagen summit. beijing had a clear reminder of the climate challenge it faces. most -- theting the first orange alert on air quality in 13 months. we had that selloff last week. taking back some of those losses.
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>> quite a lot of swing already so far in this early session. the rest of the region decidedly looking like we are in the red, extending on the back of last week's losses the asia-pacific index on track for its sixth month of losses. not doing very well. when it comes to the china market, there is some sense that the 6% plunge we saw on friday may have been overdone. it is a sector that we are seeing a little bit of a recovery in. take a look at these names that are being probed in these investigations. margin financing, insider trading, as well as some other breaches of regulations that are
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being probed at the moment. still up by 1/10 of 1%. still missing since november. we're also keeping an eye on korean shares. thereabouts. these corporations are two names that have been given permits in the online banking space. slowdown in financial services sector by allowing more of these online internet only banks. rishaad: it is likely that the yuan will be added to the imf basket of currencies. this is pretty much a done deal, isn't it?
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>> pretty much. even the u.s. says it will support the inclusion. the yuan meets all the requirements of the imf. that said, it will be interesting to see what conditions they the side. thoughts is that it could stop intervening in the foreign exchange market. pboc to abandon the trading rings that it restricts the yuan to. probably the most important thing is what weightage. according to trade data, it should be about 14% to 16%. anything lower than that would spark some concern in the market. rishaad: does it change
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anything? >> it is a pretty symbolic mode. i know they're $1 trillion of inflows but that is over five years. $3.51 trillionas , by far the world's largest. efforts to fight against the dollar's hegemony in the world market. what effect, i'm not quite sure at the moment. rishaad: thank you very much. they are gaining in seoul trading after the government gave approval to set up the first internet only bank. some think it can also lead to some unexpected winners. shery ahn is here.
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10cente talking about which could be getting the approval for the first internet only banks and south korea. ao, theyready seen kak surged as much as 13% this morning. that is the biggest intraday gain. their gains coming down a little bit, but still you could get an idea of how much expectation there is out there. 10cent, a source tells us, is affiliated with one of kakao's partners while alipay is affiliated with kp. these went only banks should inject a healthy competition in the local financial market.
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not to mention, improve the financial industry. what innovative services they can offer. kakao didn't have an internet only bank. >> the services have lagged behind other company -- other countries. although south korea is one of the most connected countries, if not the most connected country in the world. korea's government is hoping the online banking permits will drive innovation and deregulation in this sector. they will be able to offer wider range of customer services from existing commercial banks. rishaad: we are going to check
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on some of the other stories we're looking at. delivering this new aij. the launch customer is chengdu airlines. the twin-engine aircraft can carry up to 90 passengers. it has a max range of around 3700 kilometers. of high ninempany island construction. a transaction worth more than $4 billion. it will pay almost 13 million in cash. the remainder will come from a shares sale. shares have been at a trading halt the beginning of june. china has revealed it is working on a -- sony has revealed is working on a ps for revote -- ps4 remote play at.
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allow users to stream games from consoles to screens in different location. there will be able to take games closer to true cross-platform playability. up next, the test of time. spending billions of dollars on a watch proved to be a timeless investment. why one rare piece may go for an eyebrow raising figure. ♪
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>> of a look at the stories making headlines around the world. macedonia has become the latest country in south east europe to keep that migrants. that came as the eu agrees to pay turkey $3 billion to tell -- to help tackle the crisis.
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.urope is dangling rewards slovenia, croatia, serbia, and hungry all set up borders. only acceptnow entries from war-torn countries like afghanistan, iraq, in syria. a missile launch from a submarine in north korea appears to have failed. seoul told the agency it was a ballistic missile seen over the weekend. north said it had fired a new type of missile for the first time. under un security council resolutions, pyongyang is banned from testing ballistic missiles. the philippines is to auction millions of dollars worth of jewelry. companies are vying for the contract.
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a rare pink diamond. manila is also trying to find other pieces once owned by ferdinand marcos. the u.n. and the world bank they stole as much as $10 billion from the filipino people. rishaad: people say time is money. tomorrow -- and the luxury of time. tomorrow, both phrases will be apt. some of the most valuable pieces in the world. tell me about them. >> good morning. at the final viewing day for the hong kong walks auction -- hong kong watch auction. goes down tomorrow morning at 11:00 a.m. and we are expecting some world records for watches being sold.
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this is what it -- this is the world's biggest watch market. we have an international head of watches, sam hinds, here to talk about it. know that the economy is hurting a little bit. china is slowing down. hong kong is also seeing fewer luxury sales. how do you have this kind of optimism that you could set a record? >> we're very optimistic because of the property we have. the market is very sophisticated today so are collectors are looking for quality, rarity. is quite you are going to have more than 350 timepieces. i was also reading that you are focusing more on quality than quantity. >> hong kong sales incidents of 600, 800 lots. -- philip's
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philosophy is to have quality over quantity. asia is a very big place. this is the biggest watch market for swiss timepieces. time? this your first is really leading in sort of contemporary design. we opened the watch department in may. we had a hugely successful auction in may. two weeks ago, we sold the highest price ever for a wristwatch. 7.3 million francs. the market is so big here, so we need to be here. this is our first auction for watches in hong kong. me about the prize possession you are going to be auctioning off. it is the extremely rare white
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bold timepiece. -- white gold timepiece. >> i think it is the condition that is really driving the price. it is the rarity, all with one of two pieces known. really ticks all the right boxes of what collectors are looking for today. >> are you optimistic you could be the range up to 2 million u.s. dollars. >> may have international collectors in hong kong but also in the united states and europe will become heating. we are very optimistic that it could be asia's most expensive watch. >> who do you expect will he biggest bidders here? mainlandl gallery or chinese increasingly playing a part? >> mainland chinese started about five years ago really starting to get into the market.
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having collecting watches for 200 years. we are not seeing china slowing down. we are seeing there is a lot more knowledge and they are becoming more selective. i think it is better for the market. >> how has the market changed? we now have smart watches out there and these traditional timepiece of also had to change with the times. hong kong is the place where people collect. >> of anything, it has increased . many guys i know in hong kong, a regular watch on one wrist and then apple watch on the other. >> tell me about some of the other historical watches that you have? one it was originally bought by princess catherine of russia. >> the watch was made in 1829. it is a miniature watch.
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francs, it sold for 4000 to a russian princess was quite notorious and well-known. she got divorced and resold the watch. he then sold the watch to nathaniel de rothschild. >> i am going to be putting out my corporate amex. how much do you want to bid? rishaad: i will send you an e-mail. up next, hoping to state a claim. the indian budget carrier that caught the eye of gulf one. ♪
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rishaad: cold will have few will have fewl friends at the paris climate conference in the market doesn't like it much lately. thermal coal plants in the first liverpool plains in new south wales. some worry be mine will destroy a rich agricultural region. >> the first signs of a new cotton crop nudging through the rich oil of australia's liverpool plains. retention ability of this soil is like no other soil anywhere. >> tim's farm system the frontline line of a battle between australia's potential dining room. underneath the soil is high-quality cold.
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coal.h-quality >> the miners have been instructed to make good. but you cannot make good with the quality of water that is required for agricultural production. >> australia's agriculture mind and inoses the doing so, poses his own government. >> the fact you have sole responsibility of an $800 billion bill, $200 billion license that you have to acquire , and probably $300 million for reclamation work commonality a hard thing to get across any board. >> and that is in an environment where the coal price with bad too awful. one from the company would be interviewed for this story, but in a statement, they said the project is viable despite the coal price. the index studies
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far exceeded anything else being done in the state of new south wales. new office immediately opposite a chinese restaurant to a skate park for the locals. the local mayor rejects the idea of the area being a food bowl. >> it is used to grow cotton, not food. i wear cotton, i don't need it. thise recent vandalism of anti-mining billboard underscores the rift in the community. that rift threatens to deepen with some farmers threatening civil disobedience to stop the mind. indian budget carrier interest from other carriers in the gulf.
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do we know who is actually sniffing around? >> could be a couple of things. conversations with some of the indian airlines here. in the news for most of this year. something that the management has indicated even in the past. we have seen a dramatic turnaround in the airline's. it really isn't the right time to sell a stake as the shares remain undervalued. it is not unusual for both carriers in india. in the past, express inference -- expressed interest in another carrier. could be very well a function of what the market is looking like right now in india. seen aggressive
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fund infusion by the management which has enabled it to order new aircraft. it is playing to order new planes after its cofounder after rescued the company reporting of profits for the last few quarters. it is now planning to finalize an order for over 150 jets. also planning an additional order of up to 50 regional jets and is in talks. tos will allow the airline increase the frequency of its existing destinations and put it back there in the red. thank you very much, indeed. this is a look at some of the key events we are watching for you in the key -- in the asia-pacific. on tuesday, an improvement in china's manufacturing.
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expected to inch closer to expansion territory. the business summit kicks off on thursday. some big names will be gathering in bangkok to talk about growth and opportunities in southeast asia. the finance ministers of indonesia and the philippines. raisedse lender the money in his ipo makes the debut in hong kong. hong kong's ipo fund raising is heading for a five-year high. already announced more than $25 billion about a month ago. friday, the first ever africa-china summit on the african continent. china has spent billions over recent years building infrastructure links right across africa. that is it for "trending
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business." asia edge is coming up. we will recap the big stories of the day. flat is the new way up. jpmorgan leaves pressure on rivals. ♪
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is the middle of the asian trading day and we are live in hong kong. this is "asia edge. " a look at our top stories. declines across asia on this last day of november. threatened with a damage suit in brazil that could cost $5
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billion and a seat at the top table. a big day for beijing as the yuan expected to be promoted to the imf elite reserves. china sea as a potential driving force find a new global deal to cut greenhouse gas emissions. foreign investors helped fuel a three-year rally in japanese fuel chips. plus, timeless elegance. could set a world record when he goes under the hammer in hong kong. we're talking about 2 million u.s.. all that and much more on this monday edition of "asia edge." >> keeping an eye on asian markets. we are looking at a mixed slower picture. cuting to expand qe and deposit rates. p


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