resistance. >> i am angie lau. also coming up, record win. a resounding election victory sends stocks soaring in new zealand. a coping mechanism. minister's finance talks of sacrifice, saying growth in emerging markets could be threatened by the actions of the fed. and it is game on in tokyo. virtual reality headset could be the solution to struggles. watch our report from the tokyo game show. time to focus on the business of alibaba. here is lulu chen. we have been talking about it this morning. they don't want to be a one trick pony. they don't want to have everything in one basket. >> definitely. are lookingthey into these emerging markets like russia and brazil, but also the u.s. has always been a place that jack ma has aspired to,

even before the ipo when he was just starting the company. the u.s. has always had a special appeal to him. that is why we are seeing him investing in these smaller companies, to learn from local companies, their experience an operating in the u.s. also, following the diaspora in the u.s. and cater to a larger market. >> astonishing, $230 billion the valuation. what are people telling you about, whether that is expensive, etc. >> any discount that previously existed has been erased. news just came in that they are issuing additional shares. boosting their ipo size by 15%. that is 48 million additional shares, making them the world's largest ipo ever. in our bloomberg asia billionaires reporter. man who has done well

after this, jack ma. >> basically he gained himself $4.6 billion on ipo day alone. that helped him drummed from -- jump from 39th globally to 23rd. >> and companies like this have other billionaires associated. which other billionaires got even more money too? >> alibaba helped the entire sector. all the tech stocks gained a lot recently. we were looking at the ypb numbers. facebook's mark zuckerberg gained almost $10 billion. his wealth is about $35 billion now. guys.rse, the china got jack ma always saying he wants to use his money as a force for good. >> that is the key message he has been trying to send out. last year, when he surprisingly

stepped out as ceo, he said one of the key focuses his philanthropy and environmental issues will be one of the things. >> [indiscernible] clinton has been in the mix as well, trying to also perhaps lead jack ma. maeven before the ipo, jack flew his management to clinton's office in new york to learn how the global philanthropy charities can work out. he has known this for quite a while. he has prepared. even after the ipo, tomorrow he is going to speak at the clinton global initiative with 20 other global ceos as well as president barack obama. >> thank you very much for that. jack ma and his ever-increasing wealth. singapore wants to bring back

chinese ipos. numeral's are aimed at making it easier for countries from asia's biggest economy to sell shares. a deal signed in november of out mainland companies to list on the sgx without having to incorporate an overseas holding company. an influx of chinese companies would help them recover. says it fired one of its currency traders earlier this year after internal checks uncovered irregularities -- irregularities. the employee was suspended in june and dismissed shortly after. it has been reported that this banker cost the bank as much as $4.5 million in losses. chinese authorities are looking into galaxy securities. they say three staff including the head of fixed income are being investigated and they are cooperating. chinese brokerages have been under investigation for bribery but galaxy drew no link to those inquiries.

let's get back to the markets. david is here with an update of the currency markets. in the currency markets might as well determine where asian stocks go. we had a fairly sharp move. dollar-yann, that is affecting what we are seeing with the dollar index. we are on the lunch break right now, pulling back from seven-year highs of the nikkei. what else do we have, hang seng down. we are at 24,000 right now. first time we have been at the levels since july for the hang seng. taiex is taking a beating yet again. keep in mind, the background here. taiwan stocks have been a huge recipient of foreign inflows into the country. if i remember correctly, second-most in asia next to india. australia, it is the resource

place. gold prices on the way down. that is weighing on the index given how heavily weighted those stocks are. new zealand, its best today in five months. the lone bright spot, new zealand. post-election boost we are seeing. a fairly clear mandate was given to the government. given the problems and damage caused by the recent typhoon in talked about the currency markets. let's take a look. , 84.57.en it is almost a mirror image if you take a look at what -- still updating, here we go. , 108.68.n

this was the move since the close. .here is the move down it will be interesting to watch how that closes out. what else do we have, taiwan dollar. the reason i mention that is if you look back, we give you a year-to-date chart here, there we go. that is just about the worst week for the taiwan dollar since march. the biggest one-week drop for the taiwan dollar since march. the gold crisis, why not. it continues to take a beating. 3 right now, more than an eight-month low. fairly clear, the impact on the equities session. let me get you some of those names. basic materials, resources. gold, copper, zinc, iron ore. let's take a look at some of these names.

we are down about 1.6%. stocks that are falling, not a pretty day. that is where you get these iron ore plays. $81, more or less. -- bhp, there we go. down. a little bit light out of the gates. it should be interesting later on. back to you. >> david ingles there. coming up later on the program, overtaking the european union, a dubious milestone. over to beijing with the latest on china's pollution problems. up next, warnings out of australia. we will look at what g-20 officials are concerned about.

a bit of equity weakness across the board. " is back in a couple of minutes. ♪

simple take away. financial markets have nothing to fixate on. central banks having their g-20ent policies by their peers have stayed unmoved i do communicate. -- unmoved by the communiqué. >> a new norm.

there is no inflation at the moment. given that scenario, it means they can look at lifting rates over an extended period of time. i do not think we are going back to those heady levels of consumption. -- heavy levels of consumption. the new norm is about 3.75% rather than 5% in australia. we asked the division director about the other favorite. china and the u.s. and we think the stimulation will continue. we saw some pump priming last week in china. an adjustment on the reserved

ratio on the option side. no doubt that the chinese authorities want to see stable growth. they will be fighting for that over the next couple of months. lewis is the global market strategist at j.p. morgan. good to see you. let's talk about the key events. pmi will be important out of china. the china data has been consistent with a little bit of weakness. some possible destabilization. a lot of the many stimulus has worn off. effectalysts think the is fading. might need to. whether they are going to is a

different story. the finance minister said don't expect any more stimulus from us. that is not what you will get. >> they will not go for a large package. some people will describe it as stealth stimulus. they do not want the economy to weaken too much, but the reason they are not so worried is you view look at the labor market -- if you look at the labor market, they are no longer having to create so many jobs. really -- they can actually manage with a lower growth rate. why not cut rates? they have a lot of firepower. good question. if you look at the growth of

social -- total social finance. it is coming down. 15% year on year. not so far ahead of nominal gdp. the rates are rather tight. factthink it reflects the that the monetary transmission mechanism in china. credit doesn't always get to the right places. socialflates total financing. it is not quite as bad as the figures imply. quite a bit of double counting. >> a national holiday for the first week of october. do you think as we look forward to the data that follows that, that we should be thinking about a slowdown? >> my best case scenario would be more stabilization.

we had a sequential picking up to 8%. i think it is going to come up a bit, but it is not slowing so sharply that the leadership feels obliged to take major action. they are still in wait and see mode. comingher set of data out on friday, the japan inflation figures. what you expect from them? >> not anything encouraging. if you take out the effect of the tax hike on the cpi, the underlying trend seems to be a bit stuck. no longer moving towards that target. inflation, when it is the result of a sharp depreciation or indirect tax hike, it does not seem to be a terribly great

thing to be celebrating. i find it astonishing that they want to do another one of these coming up. percentage points and it has caused quite a difference in the whole profile of the economy. >> with an indirect tax hike, it pushes cpi up immediately because the tax increase. it is really negative for disposable income. over 12-18 months, it is deflationary. >> will they have a perception problem if they decide to stall or postpone or not do the second scheduled tax increase? >> it seems to me that is still quite a long way off. i would think they read you don't -- they don't have to commit themselves so far in advance. a commitment in terms of fiscal

stabilization is something which markets want to see. it should be contingent on the state of the economy at the time. i think it is too early for him to commit himself. >> we will talk about that and a lot more. ok, john key picking up a third term in office. >> we will have all the details after this short break. you are watching "asia edge." ♪

>> let's check on some of the other stories making headlines. a sharing has reached an afghanistan. he has been declared the winner was a runner-up appointed chief executive. both sides have accused each other of fraud. the final tally of votes has not yet been released. shia rebels in yemen says they have signed an agreement with the government to end the country's local crisis. they seized a number of strategic buildings in the

capital on sunday. a new prime minister will be appointed and a unity government formed. turkish authorities have processed thousands of syrian refugees seeking shelter from islamic state militants. 70,000 people crossed the border in a 24-hour period and hundreds of thousands more are expected. turkey is ready to cope with the influx. completed a has three down -- three day lockdown to prevent the spread of ebola. residents complained of food shortages. more than 560 people have been killed by the virus with more than 2000 killed across west africa. >> new zealand's prime minister john key has won a resounding election victory over the weekend.

repelling his national party to a third term in government. -- propelling his national party to a third term in government. let's head over to paul allen in sydney. john key campaign very strongly on his record of economic management. the country is doing very well. we can expect something similar over the next few years. he wants to reduce the number of people on benefits. he is holding out the prospect of some tax cuts for low and middle income residents. just-in-time for the next election. really, it it will be three more years of the same. >> i stand here ready to lead our country and to work with like-minded parties to continue to provide the strong and stable government that is working for new zealand. >> the prime minister said he

was overwhelmed by that vote and his warning his party against arrogance. they have pulled off a record victory. 121 seats in parliament and the national party has 61 of them. it means that john key can govern the loan without the support of a coalition partner. the first time this has happened since 1996. that system was introduced to prevent this kind of thing from happening. very few checks and balances in new zealand's political system. he will be able to govern with an absolute majority. incredible.tty usually, when you talk about the government in power for two terms, there is voter fatigue that does creep in. not only did he win the majority of the voters, it he got back an

increased majority. how did he do it? >> a dishonorable mention goes to the opposition. if you would never been to new zealand, you would look at the new -- labor party and the green party, they have never worked together. labor refuses to work with the green party. but they admitted it was a mistake to rebuff their offer to campaign together. the worst defeat since 1992. even worse, he is refusing to stand down. that is raising the prospect of a lot of bloodletting. one party that did do quite well was a new zealand first. the leader hope to howled the balance of power -- hope to hold the balance of power.

perhaps the biggest miscalculation of the campaign mp,ngs to the left-wing something of a firebrand. he was hoping to hold on to his seat. parliamentarians would've gotten into the house as well. voters saw a right to that dell -- deal and consider him a sellout. >> thank you. ♪

capitaa tops per pollution levels for the very first time. indonesia finance minister issued a warning over the future actions of the fed. we will be live in jakarta with all the details. gold miners are tumbling across the region. >> let's have a look at the markets. concerns about china growth, speculation from comments made

by the finance minister in china about downward pressure on growth. pressure to the downside. showingand, one market positivity today. that comes down to that resounding win from john keys. reopen.the japan nikkei, we have seen the 225 being well supported by the weakening yen. it is not helping exporters this time around. a broad-based markdown when it comes to equities. malaysia, singapore, philippines in the mix.

the nasdaq managed to close out the session on friday to the downside. .22%ts times industry, lower. vietnam's index is up. showing a bit of movement to the upside. .hat is all we have so far >> carbon dioxide emissions from burning fossil fuel expected to reach 40 billion tons. hundreds of thousands of people took part in protests on sunday. they are calling for greater use of clean energy. this global change of -- call for action comes ahead of a summit. overwhelmed. the voice of the people.

voice will be truly reflected to the leaders when they meet september 23. climate change is the defining issue of our time and there is no time to lose if we do not take action now, we will have to pay much more. >> we know many chinese cities have a pollution problem, but now there is evidence that it is getting worse on a per capita basis. stephen engle joins us from beijing with all the details. we are choking on this. exact issue, the omissions growing 4.2% in china to surpass the eu and population and pollution level per capita. they are admitting per person --

e-mailing per person more than person.ing per coal is the culprit. read house gases declining in europe, down 1.8% as a result of weaker economic growth. the u.s. is still pumping out the greenhouse gases, a 3% rise. increase.5.1% accounting for almost two thirds and 80% of the population growth. it shows that we as a race of earth inhabitants have spewed into the atmosphere two thirds of the carbon allowable under scenarios that avoid reversible changes to the planet. if it continues at this rate, the limits for carbons will be reached in 30 years.

we are heading in the wrong direction. scientist say they must fall by more than 5% or more per year for several decades to keep the world from warming more than two degrees celsius. might not sound like a lot, but two degrees celsius on average higher is a lot. that is the limit before dangerous changes happen to climate pick in -- kick in. >> we are already starting to see superstorm hit this region and the storm cycles shifting. lends to the problem of climate change pollution. are we any closer to a global pact? >> that is probably why you heard from ban ki moon. he is pleading and will get

world leaders together in new york for this week trying to get developed and developing nations to commit to meeting these targets. he wants to have a global pact by 2020. co2 growth is much faster than it was the last couple of decades, the urgent time is right now. the chinese economy may be slowing, but the chinese ecology is still growing. the u.s. is coming out of recession. it is only going to get worse unless there is action taken. >> 120 countries meeting at the summit, china and india not among them. >> a warning from the group of 20 finance chiefs and central bankers, low interest rates could lead to financial market risk. meeting outlined the

potential risks for investors as major economies rely on monetary stimulus to bolster growth. there was also a warning from the indonesian finance minister from higher u.s. interest rates. >> indonesia will remain cautious on rate hikes. asia's -- nations in asia may have to focus on keeping their economy stable. this may be only for the short term. the world's fastest-growing economies will have to adapt to policy for the fed which could weaken the contribution to global expansion. policymakers may have to attract

foreign investors. global funds pulling money from local stocks. asia needs to diversify its base of investors. the prospect of higher rates in the u.s. is just one of many challenges that await the president elect as he takes office next month. he will be inheriting an economy that is at the lowest -- slowest level since 2009. >> thank you for that. saysraine's president tensions and eastern part of the country are easing as the fragile truce remains in place. ukraine held talks with pro-russian rebels over the weekend. ryan chilcote spent -- sent this

report. you could forgive the soldiers outside this town in eastern ukraine for failing to be friendly. ant time strangers made appearance, the locals say they came with 100 tanks. this frontline city was saved by the cease-fire. it is an ukraine's industrial heartland and this is steel country. that plant is owned by ukraine's richest man. 50,000 people toil around the clock at just two of his plants

in the city. this one plant can produce a quarter of all ukraine's steel exports, enough to make 100 aircraft carriers. production has nearly half thanks to shortages of the coal that comes from wearable -- rebel held territories. workers not tois join the rebels is credited with keeping at least some of the east under kiev's control. $500 amount pay for a steelworker is good money here. any of his factories on the other side of the front hatch shut. -- have shut.

factory workers also take part in police patrols to maintain order. not equipped to stop an invading army. during our short visit, one checkpoint was shelled, three ukrainian soldiers were wounded, another three suspected separatist arrested. more than anywhere, this city keeping inside on the truce. what happens in this frontline town matters far beyond its borders. >> of next, on the road to recovery. we expect more divergence ahead between the federal reserve and the ecb? ♪

lewis.ing me is jeff whatit comes to the u.s., is your new favorite word? >> bifurcation of policy of the fed and ecb. >> right. economy is healthier fundamentally. it may only grow at 2% this year, but it will probably be 3% in the second half. the ecb is behaving like the responsible central bank. there are valid reasons for easing policy. easing policy cannot achieve

everything. the u.s. is on a healthy growth trajectory, that is for sure. the sooner the fed begins to normalize policy, the better. i would rather see them raise rates in march and april and not delay the agony. quarter very weak first because of the polar vortex. that puts probability of recession on some gauges up from 7%. as soon as you get the rebound, it will drop back down again. a pretty strong second-half of the u.s. economy. >> talk about monetary policy not being able to do all the work. that is the only tool the ecb has. because theyging

are moving away from the rather arbitrary fiscal policy objectives they set for 2016. think there is a desire to spend more on investment and infrastructure. austerity was a double-edged sword. it was too restrictive in the context of a weak economy. much less report -- support from the smaller amounts of fiscal consolidation that they have planned. i think that is a good thing. >> [inaudible] >> i think it goes beyond europe. what i saido earlier, the claimant has changed. there is no longer a desire for more austerity. interest rates have not shut up.

they have not been what you would expect given the increase in government deficits. a little bit more spending on infrastructure. we all want motorways, hospitals, schools. >> the problem is where is the money going to come from? they're struggling. mire.ly is still in the -- italy is -- >> ireland is coming out well. >> economies do bounceback. we are all looking to policymakers all the time for control and part of the economy. market economies have their own recovery mechanisms. we're seeing that it work in

europe. >> how do you explain when the -- analyst expected the bank euros.o for 150 billion they came away with half that. what does it say that -- >> that is a good question. it is a timing issue. the banks can get the money more favorably in december. they can still take advantage of the unused parts of the first tranche. the number was disappointing, but the banks might be in a wait and see position. just wasn'tat it whole 400o absorb the

billion. >> they are just waiting for qe. >> i think they might be having to wait for a long time. there are legal issues. >> the germans don't want it. >> i do not think we should write off tltro. the last tranche is not tightly linked to the private sector. >> it looks like the u.k. is set to stay longer. rather than breaking away. scotland voted no. >> i am from wales. we had our disputes with the english. municipality -- you are a municipality, not a country. you have the lineage.

what is the temperature going to be like? >> we are looking for a pretty decent number for the third quarter. it should be of the order of 3%, i would think come in may be a bit stronger going forward. in a sense, the u.s. economy is normalizing. might be a pick up in the data. >> we will wait for those numbers. we have china pmi, inflation, u.s. gdp. thank you so much, jeff lewis. tokyo takes it virtual. >> take a look at this.

the tokyo game show. ♪

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