heavily. buy ast expensive to home. i think you can guess. a dash of culture on the way. >> we visit the art of travel. all of this and more in this edition of asia edge. >> in hong kong, i have my eye on the market and it started off quite quiet. a gauge oftors have elections earlier on. things got better as they made their way through the morning. especially in hong kong and china. the money markets are the big story. they are indicating a date of liquidity situations there. that is ahead. some big we have individual moves. you have japan and australia.

they are mostly higher and these individual benchmarks are in the philippines. vietnam is snapping 12 straight days of gains. the benchmarks are at the highest levels. we are going back to you. >> the update on the global economy. this is according to a survey by bloomberg. we look at the details. we have a bunch of counters. >> we are all happy. we have access to all this data and we crunched the figures. in the global economy, 59% of international investors were a lot more confident and optimistic. the main reason is the strength in the richest economy. orange see the large slice on your screen that improves 59%.

they can carry the theme through and they have three quarters of international respondents that are optimistic on the u.s. economy. this contrasts with the view on china. investors fall into two camps. it is deteriorating and you can see it on your screen. markets,omes to the again, the s&p 500 did really well last year. that will continue into 2014. the investors have that as number one on equities. category where we will see a lot of momentum is real estate. it is the second most popular. the rebound into developed economies will be rubberstamped later today and we are expecting the imf to increase the global .utlook

andill see in uptick there over 2500 leaders are heading towards the swiss outs -- swiss outs for summits. have whether obama or romney will take office. it will focus on doing well this .ear and where can we go >> we are taking a look at the animal spirits. >> these stories are making headlines. the chinese central bank is easing into the lunar new year. money market rates have surged the most in months. it is making access to loans easier for small banks.

>> continuing to burn cash. this is prepared to participate in an offer. peugeotering sent tumbling 11%. deutsche bank is coming off of of $1.5nd the loss million. another challenging year is ahead. there is low training revenue. >> we confirm that they will not identify the target. in our say that it is report. what can you tell us about the latest that you know about this what we are looking at his what we are- >>

looking at is lenovo. it makes sense. many years ago, lenovo went by another name. consumer pc business and that helped to bring them forward and make them a global layer in the pc market. the consumer pc business is really not doing well and it fell 10% by last year. that was a record week are -- that was a record year last year. companies really want to tap into the corporate market. and, already quite strong by getting into this unit that they may buy from ibm, they have tapped into the corporate market. big companies go out and buy computers for their offices and their mobile traveling workforce. have an to be able to

area where you can do that. they tend to have larger margins. desktops are pretty thin margin products. you cannot make it at a big market. you have to put a lot behind it. it certainly makes sense from a strategic point of view. >> there is a lot of upsides for lenovo. i do not think lenovo is the only one that is interested. what else are you hearing and what else might be interested. >> nothing specific. the wall street journal reported another company that is interested in purchasing it. that would make sense. they do not have the pressures of being a publicly listed

company and having to publicly report to shareholders every quarter. there is room to play. private, theying are reassessing that strategy. they have a bit of breathing room right now and they are deciding where they want to do. sense for themke to reconsider in moving that direction. dell already does services of their own. whether or not they need to take on another server division is something they will have to decide on their own. dell is a name in the talk. >> that is tim colton. he is breaking the news on the twitter and retweeting that yesterday. >> getting back to markets, we are watching them closely.

today, why are we keeping tabs on them? >> we had the story on the money market rates. these are a gauge of liquidity in the system and the economies. you had a spike and that is a red flag. it came back down this morning. they stepped in and injected some liquidity into the banks and provided some of the small banks. there is access to that. that.anghai composite did it is that .7%. the brokerage is up 2.5%. usually, that is the operative world, usually the market is on an uptick. these guys show me some of the names. china shares it.

you see the seven day inter-bank lending rate. it dropped this morning. there we go. it is 3.64%. .hat is 5.5% some of the small and medium- sized lenders compare to these. back and are all showing gains. perhaps this is the concern of the liquidity shortage. >> we will definitely talk about that later. coming up on asia edge, we have the big day and what is dragging stocks down. is time to unleash the animal spirits. some disagree.

are joined when asia edge returns.

theet's get back to markets. we are joined by the head of asian strategy. we were talking about animal spirits all morning and it is in -- another word for sentiment. >> is meant a justification? you can talk yourself into a recession. way out oftalk your it. you can. >> it supports. the chicken or the egg. that is another animal. >> you are absolutely right and confidence is something you cannot put a number on. is something you cannot

assess and it makes a significant difference. if you have too much weight, no matter how much confidence you have, you cannot run a sprint and it will not happen. when people talk about confidence or the return of animal spirit, i wonder what it is. they can be a slog. >> they could be. if you look at the last 30 was nothe corporate focused on i.t. and equipment. they are investing in share buybacks and dividends. spirit will become much more aggressive. >> this is the point i want to get to. it is about getting your share price up. with this climate of cheap money, it is easy to do that. people are looking for a home. it becomes harder if you are not

doing something this year because they spend that money and the company is growing. >> that is true and that could be the turning point. the question is about the dynamics over the last 30 years no longer applying. people will start investing longer and not worrying as much about the margins, profitability , or the impact of earnings. >> what you basically said is that the fed stimulus actually worked and created an environment in which we were able to escape the great recession >> that is right. >> health is returned to the economy around the globe and confidence has returned. >> the interesting thing to ask is 10 or 15 years ago. companies were not investing back then. why should they start investing today?

>> is there pent up demand? sameey are investing the amount of money as they have been investing for the last 20 years. if you look at most countries, the non-public-sector investment , excluding financials, they have invested 10-12% of gdp. you think they should be a step up from the current levels? area where investment is low globally is the public sector and investment is low on the residential side. if you look at private, non- residential investment, why should there be a step up? >> i will give you an example of this. it goes into what you are talking about here. i don't know about your office. generally speaking, when was your pc last changed?

>> you know what, they are using their tablets instead and their smart phones instead. >> i'm talking about in the office. >> more often than not. >> it applies to robotics and automation. that trend started in the 1990s and is picking up speed. theas impact and some of investment is different from what it would have been. it replaces labor and that is why labor participation rates continue to fall for as long as they did. if you replace labor, what does that mean for aggregate demand? somebody needs to buy this and how do you replace the demand? how do you replace the labor? look at animal spirits, it is confidence and user demand that drives you. at this stage, i do not see

either of those things being strong enough and the private sector mushrooms. >> thank you for breaking that bubble. >> with the acquisitions, by the way, there will be share buybacks and dividends. that is what i have set for the last 20-30 years. deploy the cash. >> it is about financial engineering at the end of the day. >> in some respects. there are incentives that were 50s, 60s, 70s, and 80s. >> you say they are more activist now than before? >> the horizons have shrunk. investors and 70s, would have bought shares for 10 years. >> we are experiencing a new normal. whatever that means.

>> we get new normal's all the time. there is nothing normal about you. >> stay with us. there is a lot more to talk about. we have it coming up next. estate with unreal places. >> not so good. on affordable housing. this is asia edge.

>> welcome back. you are watching asia edge. it is getting more expensive to live in hong kong. the latest survey shows prices topping income and 15 times. australia, things are not better. let's get over to sydney and the housing market is heating up there. >> hello. it dominates conversation in this arc of the most expensive country in the world. the least affordable country to buy a house. sydney is the least affordable city worldwide. price is timese the gross annual income.

they take out second place in vancouver. jose and the states brings up fifth place. it is being driven by a number of things. there are low cash rates by the bank of australia. for year high. they have the money. leverage.ly the seeing runaway profits. it could be worse. the survey leads to developing countries. they keep the slum dwellers.

>> depressing news indeed. all of the things that was lifted. abroadlthy chinese go and look for homes in australia and vancouver. is part of the reason, isn't it? they want to buy a home in the cities. affect is definitely the when you see the chinese affect. in the united states, that is the number one destination and canada and hong kong rounds out the top. there is no silver bullet to all of this. they do think that too much is being done for a smart growth and they say these are important factors that should not come at the expense of things. people should be able to afford

to buy a home. a human rights to find shelter and it is getting more expensive. look in sydney. we are moving across the board right now. we have half of a one percent gain. stay on things in new york. positive on wall street on friday and it still continues through today, as well. the markets are closed on monday in the united states because of martin luther king day. this is half of one percent. the money market rate is down the most in four weeks. had chinaout after we inject funds into things. positivityo increase

and the glass is half full today. they involve themselves in hong kong and they are up about five percent. after the break, we have the resumption of trading in tokyo and that is 35 minutes away. and thestay with japan nintendo wii continues to disappoint. let's have a look at nintendo.

>> and oil producer takes a tumble in hong kong. money in the financial system. in mumbai, the art of travel. let's get the latest on the markets now. -- somearkets are markets are going into their lunch break. today's session has every single index gaining, with the

exception of the asian markets. benchmark is over in vietnam. there have been 12 days again. we are watching gold miners there. 12% --ht, it is above 12.50. quality ineasing the the mining. iron ore miners today. the benchmark is iron ore. yesterday, you had a lot of miners in australia and a few individual movers. new advertisements. you have energy here.

..5% lower rates a lot is happening in australia. >> let's move back north. the afternoon session is getting underway. >> we have to cover the whole region. what do we have? we have three stocks that we are watching mostly. they are on the back of a newspaper this morning that is looking and has not quite decided yet. that is according to their statement. coca cola is supporting and jpmorgan is down and underperforming at bank of america. what are we watching and south korea? there are some changes here from bank of america and they are raising the stock to buy. oriental brewery's had an

acquisition to cement their competition. up.have gourmet that is the highest since july of last year. the sincelk about initially improved profits for 2013. we will go back to you. the nintendo wii is continuing to weigh on the share price. have more problems plaguing the company. let's get to the bottom of them. we are joined by aaron. how serious are the issues of the company? flex they have lost -- >> they their value. of in 2007, they released nintendo console ofst-selling

all time. they sold 100 million units. the big follow-up console was released in 2012 and sold 4 million units. they are in a console space increased.tition has they have more profiting powers. they have moved on to smart phones and tablets. backndo is looking to get their core audience. >> tell me something, where did this company go wrong here? we have seen a share price deteriorates. is going on? >> recently, the company forecast an operating profit for the fiscal year of ¥100 billion. earlier this month, they revise

the forecast and they are saying that they will probably have it. they missed the shift to smart phones. you can't buy super mario brothers. course, are they going to begin offering the games for other devices that are outside of the nintendo hardware? do?hat can they mario to getr together with zelda and have a couple of kids? >> that is the big question. they are going to be a

turnaround. the analyst that we have spoke to have just released games. super mario brothers, let's do zelda, donkey kong, there is a lot of value in those franchises said lot of analysts have that they need to release those going forward. we will have to see what they say later this month. will have demand later this month. >> thank you. we are in tokyo. of the companies making headlines today. let us check on some of the other or prints that have been making news. >> 2014 is quite a year for dream field. they agreed to by the bourbon maker for $16 billion. the world's biggest brewer will pay money to regain control of the rumor eight.

-- brewery. a vote of confidence in the u.s. government. it is the most in five years. they closed eight percent higher because of the defense department buying handsets at the end of the month that will make up 98% of the new network. the shares are tumbling the most in 2.5 years. and she'llgest oil producer says that they will miss their target. they will boost growth by 5.6% this year. confidence is soaring on the back of new cop -- new projects. we spoke to analysts who downgraded the stocks after the announcements. bikes management has been confidence -- confidence in the ability to push. what we have seen is disappointing production growth. we have seen a growing at two

arcent-three percent there is guidance of six percent and we downgraded earnings for the company. >> those are the top stories this hour. chinese markets closely as money market rate slide the most in four weeks. this is as the central bank pumped funds into the system ahead of the chinese new year. john dawson has more. >> we have a lot of activity and it is important for banks to have a look what he -- a liquidity. we have the central bank of 40 $2that is adding billion to the financial system. it expanded. the seven-day repurchase rate on interbank funding has slumped. it has searched the most in seven months. are the standing leading facility today.

u.s. dollars.on they are going to allow for small and medium-sized banks in 10 regions across china to tap the sls. will be reduced liquidity and risk. sectork in the corporate and the default risk of the small banks in china. the question has been the end pl's -- npls the nonperforming loans. that is over a repo of five percent. they will step in and supply at those rates. overall, that is the crucial move. >> john, how does this help the lender? >> the question is whether there is enough money in their coffers to keep going.

many in china are stretched together. building and they followed through. gives the banks the cushion to get through the chinese new year. they are really concerned about this and are dealing with this as best they can. it is a really proactive move. >> thank you. the u.s. is driving investor confidence to five year highs. what is behind the optimism?

guest works for

securities. it is good for you to stick around those. we are talking about confidence and animal spirits. what do you see at the moment? we are looking at big sky thinking. is providing things. >> i think the chinese government is doing the right thing. in the last six months, they have done more than the previous leadership did. have raised the capital and nobody else is doing it. why are they doing it? they're trying to relocate the capital. a minus. a plus and they should never buy it back. nevertheless, it is actually good news. there are quite a number of sectors that will benefit from restructuring going forward.

>> who do you think will feel the fallout? >> in a sense, every country in the world has shadow banking and nobody can deflate it. nobody. the wealth management products are so in the forefront of the average chinese citizen in a way that it is not in any other country. >> that is true. there is no difference to that in the united states. you are combining assets and they are in a different way. if you look at the united states, the shadow banking is double the size of normal banking. there is nobody, globally, who can deflate. the best you can do it shadow banking is try to control it and regulated. you can try to avoid it going up. >> that is the thing.

i think people would disagree with you. >> that is a step in the right direction when it comes to the financial sector. you may change your view. they are making reforms and making progress. >> absolutely. as soon as china represents that the nonperforming loans are not one percent or two percent and come back to recapitalize the banking system, that will be the time. they have arty twitchy that they are coming to the markets to raise the money. in thesumers must spend economy and they will come back to the markets. will they by financials? absolutely. just not today. >> it is better than forecast and there is a pumping of money.

they're going to put money into the bestts and get performance that you see from the government in years. that is proactive and will give you a confidence going into this year. >> i do not think -- >> there is the shadow lending. >> what they are choosing from is a liquidity trap and india is in stagflation. has political problems and indonesia as an expanded credit cycle. you look at them and say you would rather not have any of this. the problem is that you cannot and you have to choose. i agree with you. i think people are too negative on china. >> when would you hear so much talk in the media of a hard landing or softline being -- soft landing in china.

you go back to japan in 1989 or 1990, there was no problem. 40,000 had the nikkei at and the markets have done nothing. >> everybody says that the game is slightly different. >> heidi make money in the chinese markets? ofre are the pockets opportunity? there are places to make money and in china, specifically how? >> there are two or three things. number one is the emerging markets. they will make no money for three years. ande are absolutely pockets if your view is shorter-term, you want to invest in the areas that benefit from restructuring. this is the non-bank financials and need chinese technology.

a lot of people will say that this is expensive and they have run up quite a lot. 2000, if youer didn't want to buy technology, you could buy good quality industrial companies. whatever is good is expensive and whatever is cheap is toxic. when people say that you have rolled out 60% of the market, the other 40% just to get moore's -- more expensive. there'll be a time six months from now or 12 months or 18 months from now to buy back. >> people are taking a long view. they want to talk long-term as six months. but, yes. you are right.

they are going in and out. the animal spirits. >> i'm pointing over to rishaad. is the s us.es me ierras. because the central banks wanting to make errors. they do not anticipate what will happen when they make those decisions. the federal reserve did not want to surprise anyone and it happened that they did. when it comes down to that, in my view, all central banks are looking at faulty signals. they will not lead you anywhere anymore. that has been the case for a wild. if you have faulty signals, the biggest problem is error or

error of judgment. speaks to clarity of communication in the modern day of central banking. thank you so much for joining us. a spirited debate on animal spirits and the like, whether you agree with it or not. art with is a work of a dash of culture. >> this is "asia edge."

>> getting underway and a quick check of the state of play in india. of one percent and that is as earnings improve. companies reported higher profits. a new terminal is

ready for takeoff and is home to one of the largest displays of art. >> the arrival is taking a long- term around the baggage claim and it ended up in the art gallery. no less than 7000 pieces of indian art. is the largest public outcome. they established a new one. this is like mumbai. major new development and somebody told me that it will change mumbai forever.

>> the advertisement is everywhere. it breaks up the long trip to and from the gates. passengers who are waiting for flights can bid. more than a hundred artists have dated over the terminals. >> i think a lot of the challenges are in being able to be in a constrained environment overnight. that ise thing heaviest. andt increase the capacity they expect to reach it. paul allen, bloomberg. >> checking other stories that are making headlines around the world, the chief minister of delhi has criticized his police force. they are ignoring serious crimes.

he was elected more than last month. he told supporters that police accept money and do very little to tackle the drugs and sex trade. in thailand, they have released pictures of who they say might be the attacker. a man attacked a bangkok protest camp. he appears him and to throw something and run away. 28 people were hurt in the explosions that were caused by fragmentation grenades. the government group blames the other. festival.ng spring thatailway companies say trips have been booked this year and 300 million tickets have been bought. that is across the nation. they expect nearly twice as many

tricks -- trips as one year ago. a hong kong woman has been arrested. she was detained at the airport as she tried to fly to thailand. photos were circulating in hong kong showing hands and feet covered in lacerations. migrant workers are demanding action on the modern day slavery. rosetta has woken up and called home. the spacecraft has been powered down for two years to save deepy as its flu through space. mission control said out a call and she responded. news -- central new zealand escape the earthquake and it was in anxious moment for

a commentator on air. shaking here,g is i'm id. it looks like we might have a t of a earthquake going on here. a very big earthquake, in fact! earthquakeery big going on here. the model has fallen on me escalation point -- me! >> an airport that promoted the hobbit movie came crashing down and nearly missed diners. it caused superficial damage and there were no casualties. we have sports news coming out of the australian open in melbourne. managed to avoid being upset and made it to the finals. in melbourne, the two-time makes sure third open appearance.

she lost to victoria and that was a year before.

>> the following is a paid advertisement for the rock 'n roll hall of fame dvd collection , brought to you by star vista entertainment and time life. >> good evening. >> it is start time. are you ready for start time? >> please join me in welcoming to the rock 'n roll hall of fame -- >> elton john.