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tv   Bloomberg Markets Asia  Bloomberg  November 29, 2016 9:00pm-10:01pm EST

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executive is donald trump's pick. >> if president park is forced out, investors want to know who is in charge. asian markets back on track, particularly japan, the topix snapping that winning streak yesterday, but gains again today on the back of a strong session on wall street overnight. rishaad: we are having a look at the action. juliette: most asian markets are weakness, andle the shanghai composite load today, down .8%. the won trading higher against up .3%,ar, the kospi
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also traction in the nikkei and topix today. playerseeing energy showing signs of weakness, crew tracking at a two-week low, so weakness coming through from or oil players. from stockstch out that have been doing well as of in particular. some of the movers we are keeping an ion, samsung has hit a record high, up 4%. we have been speaking about the stock, finally investors have turned positive about pressure for change. you are seeing weakness from some of the korean cosmetic players. they rallied strongly during
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yesterday's session. cosmax and others have been upgraded to buy. metals, sliding from a two-year high, perceptions in the market that supply is still ample. iron oree saying should be near $50 a ton. higher for an fourth session, up .2% due to dollar weakness. if we look at the offshore renminbi, up .2%. fixpboc increasing its yuan slightly from yesterday's fix. haidi: thank you for that. to a two-weekose
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low, some fluctuations in the session.cessio refuses to lower production despite pressure from saudi arabia. are on the table, and they will be discussed. a rational decision that is inclusive as a group. haidi: let's get the latest on these opec wranglings in singapore. hours to go and tell the formal meeting in vienna, 10 hours of technical talks did not reach any sort of conclusion. what are the sticking points? irane two big points are and iraq. say has been trying to
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during these talks that they should be exempt from production cuts because they are still building up production from pre-sanction levels. they are 3.7 million barrels a day and want to get closer to 4 million barrels before they freeze production. saudi arabia wants them to freeze production now. they are still a couple hundred thousand barrels apart. saudi arabia said and maybe we don't need the cuts after all. some people are saying that has a poker game between the two of them, who will call the bluff first. there is a pretty big divide there. highernts to produce at levels than other members want it to. those are places where they need to bridge divides within opec before they can reach an agreement today. the thing is, does there seem to be any chance of
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the deal right now? >> our friends at goldman sachs looked at the oil market yesterday and did some analysis. the market is baking in a 30% chance of a deal. if you look at the options wonderin seeing a wide range of prices. there is a lot of uncertainty. one thing we do know that is despite the divides they have bridge, there is one uniting factor, basically all of opec wants higher oil prices. they have been reeling under low prices for years. there is that one uniting factor that could bring them together
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today to get something done. haidi: our previous guest had some strong views on this idea that the longer-term ramifications for opec as an organization will be severe if the are to reach a deal. i we talking about a lost credibility or faith? -- are we talking about a loss of credibility or faith? >> since the november meetings, which kick started the current market we live in, people have been saying this every six months or so, opec is a relevant. then opec gets together like may and september and starts talking about cuts and everybody talks about how relevant opec is again. i think the organization will keep going like it has been, but there is a new reality, which is no longer do we need the super deepwater, arctic drilling, to get the barrels of oil out onto
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the market. shale fields u.s. and drill for $50 a barrel, so opec is still in control of a third or little bit more of the world's oil, but it does not have the same power. the market has a much bigger say in what oil prices will be then opec does come and that's a reality that opec will have to get used to after this meeting regardless. haidi: thank you for that. rishaad: right, turning to american politics, the clock exactlyfrom wednesday, 50 days until donald trump moves into the white house. we are hearing about his new major cabinet picks. we are following the latest in new york. pictures ofat donald trump having a candlelit dinner with mitt romney. not tooat is going on
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far from here. we will see what happens. he has been on the slate for a potential secretary of state. on fors been announced potential cabinet picks. the commerce secretary, that would be potentially wilbur ross , 78 years old, a self-made billionaire as well as a former banker. those billions by restructuring companies, particularly in the u.s. steel industry, and selling them back at a profit. , he is a former democrat, but backed mitt romney for the first time in 2012. now he is headed to the white house as long as he gets confirmed and will be working to help trump fulfill campaign promises that include ending tpp , renegotiating nafta, and
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potentially calling china a currency manipulator. before that, another cabinet pick, treasury secretary, mr. trump has decided he was to go for tom price. -- steve midoc mr. trump has railed against wall street during his campaign, and here he is going back and calling on and next goldman sachs banker who has been a goldman sachs for 17 years to call him it back into his. he is 53 years old. to the from wall street west coast and silver screen, bankrolling movies including x-men and avatar. histoo much is known about interest rate view and fiscal policy view, or whether he will keep a stronger dollar going, but one interesting thing, he
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donated to both hillary clinton as well as barack obama in the past, but then flipped and decided to support mitt romney in 2012 and donald trump. announcingave trump a cabinet minister? , she was theo department of labor secretary under the administration of george w. bush, and now she is potentially set to come back into republican-controlled white house administration. we are looking at her potentially being confirmed. you are seeing pictures of her with another man, and that is senate majority leader mitch mcconnell. senate majority leader mitch mcconnell. she is married to the senate majority leader, but if she gets confirmed, she will be on the hook to try and fulfill donald
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trump's campaign pledge of spending as much as $1 billion in infrastructure to get the economy going and to smooth out america's roads and railroads. haidi: thank you for that. keeping on top of the latest maneuvering. shape.: gradually taking right, let's get to first word news. here is sophie kamaruddin. more evidence that a rate rise is coming with jerome powell saying the case for a hike has strengthened. speaking in indianapolis, he said unemployment and inflation were approaching fed targets. policymakers meet on december 13, and janet yellen has already said she sees arise. z says financial risks from the housing market have increased. in its report, the central bank
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also sees the dairy industry posing a risk, despite a recovery in milk prices. to rbnz says it is too early estimate costs from this month's earthquake. johnson & johnson said to have raised its bid for a company after a $26 billion officer was rejected. the new price has yet to be confirmed, but sources say they johnson & johnson access. shares of the firm rose 10%, $22 billion by you. johnson & johnson interest was first reported by bloomberg on friday. melco crown launching a new hotel in macau, the morpheus hotel will open its doors in the first half of 2018. the chairman says that is only the beginning as he has much wider ambitions for melco. we have always like
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many global operators then interested in japan or other parts of asia, where you could spend this type of money. sophie: global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. haidi: thank you for that. still ahead, a look at an indonesian startup backed by a facebook cofounder. what makes the e-commerce company such a hot commodity. dollara strengthening met with mixed reaction. rishaad: a look at the winners and losers just ahead. ♪
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rishaad: a surging u.s. dollar is splitting opinion among asian
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central bankers, some relieved to see their currencies we, but others see a threat. ,aidi: let's get a breakdown mixed fortunes. japan, you see something entirely different. >> it is a mixed picture, and the winner is japan. the strong yen has been a thorn in the side of the boj this year. it has also been keeping a lid on the nikkei and wealth creation in the country, so they're glad to see a stronger dollar bringing down the yen. other winners include australia. they would like to see the currency weaker. by thiseen propped up rally and commodity prices. thailand is another winner. they have a big exporting base, so they are happy to see the dollar strengthened. that helps them. haidi: right, losers?
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losers, again, everyone has different opinions on this, but those --us to would be when the tide goes out, you see who is exposed. indonesia and malaysia are among those who have concerns. they have built a strong international reserves, inflation remains a worry. the indications are is there will not be in the circuit breaker and the strong dollar for any time soon. haidi: we have to leave it there. korean: looking at south staysent and whether she
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in office creates more questions than answered. we saw that speech yesterday, didn't we? president park saying i will resign, but there has to be a decision. her term is not meant to be up until early 2018. mostad: it was one of the bizarre resignation speeches, if you can call it that. people aret of wondering what this means, resigning or not resigning? and good to say i am offering to resign, but it does leave questions regarding the economy and who will run it. in november, she ousted her and primenister minister and nominated two men she wanted to do the job. -- theirthe two people approval process has been stalling, so there are questions
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about the economy. south korea is struggling to maintain growth. this morning, the finance minister was saying that internal and external uncertainties have increased, while production, employment, and consumption remain weak. some people think this clears the way to discussing new people in these roles. there is moreing uncertainty until a new president is in place. are expecting this impeachment vote as early as the end of this week. >> well, some of her own party and opposition parties and south korea are looking to in peach her, thinking about submitting a motion by friday -- to impeach her, thinking about submitting a motion by friday. haidi: the drama that keeps on
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giving. next, the carmaker made famous by james bond is branching out. we are talking to its asia-pacific head. ♪
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haidi: james bond's favorite car company hopes to become a well-known name when it comes to boats, buildings, and bags. rishaad: expanding its image after an operating loss last year. haidi: we have more in singapore. aston martin says it is no longer looking at rivals such as ferrari. now, it is looking at luxury brands.
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are you scratching your head? patrick, what is this strategy about and the thinking behind it? >> it is part of our second century plan, where we go from carmaking, but also becoming a sustainable luxury business. part of these brand extensions are involved in any partnership where we give input on the quality of the end product, not only putting our logo on something, but being part of it. for instance aston martin residence in miami, where you will have the quality, the abilty.the custom haslinda: it is brand recognition more than anything else. or that translate to selling more cars? >> i think it is catering to the
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people who are our our customers, that love the , that special something that aston martin is good in. exclusiveness, the highest possible material quality there is, and again, being able to tailor a real experience. haslinda: where are you in this transformation, and how soon do you want to get it done? there are plans for you to list, and this could be part of the journey to that listing. already.rted the second century plan i mentioned is happening. that,is the first step of 700 million pounds investment in product development. db 11 is arriving now on our shores here. takes ussion to that seven years into time, and we
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are doing brand extensions currently. the two products i mentioned are launched, but when you mention ipo, that is completely up to our shareholders. we are focused on delivering these projects. 11 is a: some say ddb make or break car for aston martin. what has been the response to the db 11? i am smilingly see now, because it has been fantastic. in asia-pacific, we have a handful of cars left for all of next year. that success has been attributed to focusing on the markets, not making an assumption that one-size-fits-all, listening to the customers and giving something unique to them. for instance, you mentioned we launch the car here in the asia-pacific at the same time as geneva. we showed the car to a private
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client base before we revealed the car. haslinda: give us a sense of the response. >> there are a handful left, as i said, for all next year, so i am very happy. theinda: we talk about market in europe because of the weakening pound and brexit, has it impacted car sales in any way? >> no, not at all actually. this second century plan is seven years long. the 700 million pounds i've mentioned will fully fund everything we will do. we have adapted, adjusted, and it is well within reach. haslinda: thank you for your assessment today. aston martin expanding its reach. rishaad: a new model they're the end of every year until the end of the decade. haidi: aston martin handbags
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apparently. lenders see funding costs surge, danger ahead. rishaad: looking at crude oil, details all on the way win "bloomberg markets: asia" returns. ♪
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public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. sophie: i am sophie kamaruddin. steve mnuchin said to be the next u.s. treasury secretary. he is president elect donald trump's pick. we are told that donald trump is about to name another wall street figure, wilbur ross as commerce secretary. oil hovering near a two week low , leading opec members failed to bridge differences. iran arrived in vienna saying it will not cut output and hinting that saudi arabia should shoulder most of the production.
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riyadh said to abandon the deal unless opec members agree unanimously to reduce production. opec is a consolidated organization. all decisions need to be unanimous, so we would like to agree on something that is obtainable and benefits everyone, and also everyone needs to be participating. when ask me how, who, and before we meet. hey hong kong court has backed the expulsion of two local lawmakers who insulted china while taking their oath. it prompted an intervention by beijing's top legislative body, saying no one can hold public office who advocates independence for hong kong.
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north korea faces a sharp cut in: exports under a security council resolution aimed at punishing the regime for september's nuclear tests. the resolution would deny pyongyang $700 million a year in hard currency. has the crucial backing of china and is set for a vote on wednesday. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. haidi: this is "bloomberg markets: asia". i am haidi lun. rishaad: i am rishaad salamat. going a look at what is on as we head to the japanese lunch break. juliette: japanese equities higher, up by .1% after a retreat yesterday from that strong rally. the nikkei and topix both still in the market territory.
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the shanghai composite down .7%. an interesting note if you are bullish on chinese equities for the long-term, saying china stocks will rise by 12% by the end of 2017, with an upside on the csi 300 and the hang seng china enterprises index. the hong kong index up by a .ound of point 3% some of those casino stocks pulling back. the weakness in commodity prices playing into the asx 200, the basic materials sector off by 2.6%, iron or falls to a on-week low, weighing fortescue metals group, and weakness in the oil and gas sector ahead of the opec meeting. stocks falling in australia in the oil and gas sector.
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santos is off by 2%. that weakness in the oil price sophie was talking about, crude oil tracking at a two week low, playing into energy related currencies. ae malaysian ringgit holding -- $4.46 if you compare it. an uptickng more of today, but tracking near that two week low for oil. rishaad: thanks. the oil market front and center. haidi: that's right. another day, another danger sign when it comes to china's financial system, this time a banking system. our china correspondent tom mackenzie has been looking into this. what is it this time? time, the certificates
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of deposit, six-month ones, and the cost issued by lower rated thes, the smaller banks, cost has increased 35 basis points this month, a record jump. it now stands at 3.5%. , adding to thent concerns and pressures on the banking system, rising bad loans, a weaker yuan contributing to greater capital outflows. province in the rural sees a third of its loans outstanding and overdue, and that bank has been downgraded as a result, adding to concerns. in these conditions of tighter liquidity, they are relying on interbank lending. in 2016, we've seen more than double the number of cds issued
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compared to 2015. moody's says this reliance on interbank funding for banks does leave them from moral -- leave them vulnerable to shocks. haidi: it really exacerbates the in, them the pboc is latest that they have denied reports that they have been ordering banks to stop lending when it comes to mortgages. we got the denial last night, and it follows those reports. sources telling us that local have beenf the pboc talking to bank managers essentially saying you need to suspend mortgage lending, while sources say and shanghai, bankers were told that they need
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to make sure that mortgage lending is lower this month. we do know the central bank and central government are stepping up curbs after provisional governments put in curbs and 24 cities towards the end of september. the pboc has instructed banks with high property prices to check their mortgage lending. commerzbank analysts say this will be the theme of 2017, deflating this asset price bubble, these prices in the property sector, and the pboc stepping up their actions in this area, but they have denied that they instructed local branches to verbally push bank managers to reduce these mortgages. rishaad: thank you for that. haidi: tom mackenzie there. when it comesown to high rollers and access slowdowns have done little to curb the ambitions of melco
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crown. he said the new hotel morpheus is just the beginning of a global plan. >> no co-crown, we always want to push the envelope. we like to believe ourselves to be curators of entertainment and excitement, so with morpheus, the final piece of the puzzle for city of dreams, our flagship , integrated resort, we wanted the best. it is built for the most system sophisticated international travelers. it is our gift to macau, but we want this property to launch a global brand. , like many global operators, been interested in ,apan or other parts of asia where you could spend this type of money. gaming revenue
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has seen three months of growth, are we now in a recovery? >> i think we are in a recovery. that recovery will not be the same as the recovery during the global financial crisis, because back then china had $4 trillion in the system, and of course this time around, it is different. and so it will be more of a natural recovery. there excited about infrastructure improvements coming on board. month arrested 18 employees of crown resort. what do you think will be the impact in macau of those arrests psychologically and operationally? >> for the customer base, it there would be a little bit of concern. arrests are not different from the two previous years, where china came down hard onto being korean casinos.
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macau rightview in now is that china is trying to crack down on the foreign casinos trying to send their players overseas. macau is part of china, and the reason for that success is china. for homegrownat macau operators, we would be safe. even more importantly, melco crown has always been in compliance and are mindful of what you can or cannot do in china. , your father and chairman, is 95 this year. is there a succession plan? >> i have no idea. i do not have any involvement in those operations and have never been involved. never will. >> you will never be involved in sjm? >> what i have built on my own
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is so much more exciting. haidi: that was lawrence ho. startup an e-commerce with the backing of a facebook founder, next. ♪
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rishaad: a quick check of the latest business flash headlines. china's biggest developer boosting at stake, raising its holding in vanke to over 14%. now has enough influence to call a shareholders meeting and potentially take a seat on the board. within hours of launch, was flooded with
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pictures of scantily clad women in exchange for money. they promised to remove inappropriate pictures and block related accounts. rishaad: disney cuts ties over labor violations with chinese companies. they failed to tackle issues that were highlighted last year. haidi: tiffany's surged to her when you're high after posting better-than-expected earnings, $.76 a share compared to $.68, driven by rising sales and a share, double digit growth in china. revenue japan rose on the strengthening yen. the result follows other upbeat
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reports, the sign that the worst of the luxury market downturn may be over. rishaad: let's turn to an indonesian start of backed by a facebook founder, women making up 75% of its consumer base. orami, women really driving the segment right now. haslinda: you bet. you know how we are. we love to spend and shop. orami has had phenomenal growth, and looking for more. ,et's join the founder of orami good to have you with us. at youriving the growth company. give us a sense of what they are buying and how much they are shopping. kind of people thought we had a crazy idea to target women.
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trillion inl $2.7 untapped market in nature, and we are the key that unlocks the household spending. you buy for your husband, kids, yourself. women definitely controller. haslinda: what kind of growth are you seeing? have than around farthree years, 600% so growth. we are in two markets, and it's going for more. haslinda: you are expanding through acquisitions. you have done three acquisitions already. are there more? >> definitely. that has been our successful path to growth. actually, we get people knocking on our door all the time in other countries, same demographic, different functions that are synergistic come as a
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next year should be quite -- haslinda: what kind of companies are you looking to acquire? >> we have to agree with the vision of women. ist at the end of the day the crux of it. the philippines, do they understand women. do we both achieve the same goal? the team is key. everything else, what we have developed in the last year, as a bible for all the things working already. we have done it successfully, so we want to duplicate it across the region. haslinda: we have been talking about how you have been acquiring, but you could be acquired as well. have you been approached? >> we have. there is only so much i can say. it only makes sense, right? is the king, and we are the queen. you are busy
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fundraising. how much money are you looking for, and what would you need it for? >> definitely expansion. next year, ok, what we have come to realize and have been good at is that e-commerce is not e-commerce 1.0. there is high intense competition now, alibaba in the region, amazon in the region, so we want to make sure that all the stuff we have held this year, we are pressing on the acceleration next year. haslinda: you are one of very few women in the region, what barriers did you have to break to get to where you are today? >> a lot. we just have this conversation, but started three years ago, fundraising, got pregnant, yes, , fundraising, big and men were looking at me and
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like, really, you're not only going to have twins, but also run a company as well and go under all these mergers and acquisitions. haslinda: what has been the most difficult or the biggest challenge you have had to face and growing orami? a startup isabout you constantly are reiterating, reinventing, so you always have up to dop with what is think his is not the fund rising. it is actually a char. it is getting everybody to work work towards a certain goal, and so far we have been able to do that and i am happy with the progress so far. haslinda: your long-term plan? see years, where do you orami. ? to say global.
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no, right now we are one of the largest players in the region, and ics staying that way. a lot of people ask about exit strategies, i love what i'm doing. this the job of my dreams. women are largely underserved. it a lot of people are asking strategic sale, people knocking isour doors, ipo, i mean, it limitless right now, but we just want to focus on women and southeast asia. big for: 2017 will be you, what can be expected? thewo things, there is whole thing about startups and everything. for us, it is our year to concentrate on profitability. haslinda: how close are you to profitability? >> am i supposed to state that here?
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times have changed. you need to be profitable. the tools that we have, social commerce, reducing markets an spend. ok, one final, final question, the biggest lesson learned being an entrepreneur in asia? >> stick with your gut. day, they were worried about digital, digital, digital. inthe end of the day, we are asia, still traditional. you have to stick to your gut and say this is the way it is, understand your market, understand your people, and go with it. haslinda: thank you for your inside. there you have it, the energetic founder of david:. -- founder of orami. haidi: love that energy.
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next, millions in lost revenue. the cost for an all strain amusement park after the death of four visitors. ♪
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rishaad: you are back with "bloomberg markets: asia". haidi: shares in ardent leisure, take a look at at the moment,
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down by 3.25%. the company announcing a reopening date for its dreamworld theme park. rishaad: four people were killed in october on the thunder river rapids ride. paul allen is in sydney. what is happening? has been a tough few months for ardent leisure and the families of those victims from that terrible accident. ardent leisure has made no revenue in november, or the dreamworld park has not anyway. there has also been operational costs of formally in dollars and a one-off charge of $1.6 million. it does seem crass to be talking
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about these numbers in the wake of an accident that cost four people their lives, but we are a business channel and have to do these things. and 25rld will reopen, dollars from every entry ticket will be donated to the red cross. haidi: the other question visitors and that this is want to know, are they doing anything to improve safety at the theme park? the time it was close, there was extensive and that number of recommendations made. there were concerns over the harness points and maintenance of one particular roller coaster. of thesed said none issues were safety issues, some of them small things. for example, staff being required to handle pull
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chemicals with protective gloves. a was reassuring that it was nuts and bolts review of the process, but the park will riden december 10, but the where the accident happened will be demolished. haidi: paul allen there for us in sydney. rishaad: we are looking at the big stories of the day so far. what have you got? , pboc weakening renminbi stealth tightening of monetary stimulus, and the property market. we explore all of that with gavin perry and talk the latest on the markets and why chinese speculators are shaking up the global commodities market. and, we bring you back to singapore, where we will be talking to pan pacific hotels group ceo: growth strategy, new projects, and of course competing in the china market
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amid sluggish global growth. rishaad: right, getting to the market action, hong kong, shanghai, japan. >> a mixed picture, caution creeping in ahead of opec talks in vienna, that commodities rally coming to a stop. rishaad: a bit of positivity creeping in. having a look at what is going on. we do have japan on its lunch break, a small gain at the moment. a glorious picture of victory harbor. we leave you with these images. ♪
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>> from our studios in new york city, this is charlie rose. >> good evening, i am jeffrey goldberg. i'm filling in for charlie. fidel castro died on friday. he first came to power as a passionate guerrilla leader. to many it was his fixation on the united states that defined the spirit of his rebellion. his defiance around the world made him a powerful symbol of revolution. a fierce champion of cuban nationalism.


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