world of chinese idols. idols.d crunching the numbers and looking for potholes in 2015. handbags and rags. we are live at the sale of all of that and more in asia edge. >> good morning. we are starting with the miners. this is the biggest market story of the day. the reaction has been quite clear. the financials of ricin. -- risen. up.ave iron ore and, of course, you go further afield, you have iron or

diversified up. bhb.ave rio tinto and thatave the key areas mining resource stocks are rising. the best-performing markets in anymore because hong kong is up. most of us are seeing gains. japan is closed for the holiday today. you look at the chinese performers and you see them up. you can see the chart. indeed, only three decliners. see the properties and the resources. those are key.

i will give you a final snapshot with the pie chart. as the hong kong real estate performance. you see the financials and the banks. you have real estate in hong kong and china of 3.5%. 3.5%. not one is seeing a decline and all are seeing gains. are.op three, there they 3.5%.nd very much resource driven. interested. everyone is asking if this is the beginning of a wrought are easing cycle.

oader easing cycle. >> so many are saying that they expected a rate cut the end of the year and they are calling it a surprise rate cut. the big banks are saying that the central bank will probably act again with another cut. the question is when and under what circumstances. maybe not that much of a surprise, after all. they say it signals a policy shift towards aggressive monetary easing and the government concern over near-term growth. effortssents desperate for the harvard sector and the small to medium enterprises. ripesay the conditions are

it is a 40 basis point cut. rave and say b it is necessary to be passed on to the real economy. they are going from targeted measures to a broader interest rate cut just for demand. the pbocou missed it, by 25 basiste points and raise the deposit rate ceiling to allow the deposit rate greater flexibility. help --, putin the cuts most? the cuts help the

there is a risk of asset bubbles if there is too much monetary easing. >> the property markets and stocks are going up. this would be a boon to them. a lot of developers have been having issues raising capital. when there is cheaper borrowing, it will going to more speculative areas of the economy. they claim the moves are designed to help smaller companies and depositors with the ceiling. the bulk is on the borrowers. is, will the banks take their marching orders?

seen.as yet to be year highlare a 9 right now. there saying that they believe refraining from broad expansion measures because it recognizes that it would see another credit bubble. >> stephen engle in shanghai. china and thet in fx have been at the top of our list this morning. news. said to be welcome is a fairly positive surprise. it is lower than the cut in lending rates.

work?you think it will >> it should work. the borrowingeve costs. that is positive for banks. there are signs of more. at the bank of singapore says we should expect more policy measures. except a gradual the celebration in the growth rate without allowing the loan problem to balloon. policyggests more measures over the coming year to guide the slowdown. i would expect a lot of that on the fiscal side and the monetary side because it can be very targeted and very rapidly implemented. we're certainly not at the end of the support. there may be more to come.

it will be broader support. thee are back with more on rate cut. a terrible pun. are we looking at a bumpy road ahead? they talk a little bit about china. cut and a lotte have been asking what that will be like for auto sales. it will not impact auto sales force china. will he get more buyers in the showrooms? unlikely that is car buyers will flock to the showroom. car bu of four people --

yers financed their vehicles, versus three out of four. we don't think so. further rate cuts will benefit corporate profits. and a lot of these companies have a capital ratio and can refinance the debt and lower the interest expense. >> let's move away from car sales in china. week.e the senate last where are we? it is not inspiring confidence, is it? this has been in the press for so long. is around so many different car manufacturers. of the issues go on

for a while. there has been news about recalls being involved. it would drag on for a little bit. it will not have a big impact, if any, on auto sales. >> growing concerns over faulty airbags in japan. ordered reassessing the progress. 40% of the vehicles was still not repaired as of september. 8 million vehicles are due in the united states. >> the japanese minister says he wants renewed support.

into a snap election, his approval rating has plunged. sheri, what are people saying? >> they are not happy about abe or what he has done. poll said that his support rate is at the lowest that it has in the last two years. oppose abenomics. support. when it comes to the issue of 51% support the from the original plans

tax hike. it is understandable, given that inan is in another recession the third quarter. overall, the disapproval rating is at the highest level you. -- highest level. voters do not have much of a choice at his point. -- this point. the opposition party got trounced and has not recovered or bounced back. dpj only has a -- there is not much choice out there. 45% are undecided on who to vote

for. >> take your picture. -- pick. riches.bags to details are coming from the vice chair. that is next.

>> the surprise of rate cuts. rallying the most in 11 weeks. guest is the asia-pacific chairman at jpmorgan. morningverybody this about expectations the pboc

would make a rate cut. >> it was surprising to the market and that is why you saw the market reaction today. the government in china has been contemplating some kind of monetary easing to spur economic activity and measured numbers. they have not had an immediate effect. the rate cut has come and we anticipate another rate cut in the coming quarters. >> they were careful to say that this was not indicative of any change in our monetary policy and that we were focused on that measure and on the slowdown of the chinese economy. cut doesn't focus on policy. we need to focus on how the rate cut was actually excel rate the chinese interest rate and the

governor has said that the interest rate reform will be achieved in two years. the rate cut is asymmetrical. it would put pressure on the margins. in the future, it will price risk a lot at her. banks ins a hint to china that more reform is to come and to get your act together. mid margins get tighter and absorbs a short-term contraction in this thread. they are very profitable. china is season downward ada and the housing market with home npl's at the lowest

level -- highest level is 2005. what could be the prick to the bubble? seene property market has deflation trends and prices coming down for most of the year with transaction volumes coming down. be special forll buyers. ratios, it has increased and we need to look at it in the historical goals -- contacts. storable --his context.l they cannot be complacent and

they need to know reform is coming. there is competition. push on mainland. noteasing of liquidity did -- could help the economy and the capital market. with rates coming down, investors may think they are not getting much from the posits and the banking system. deposits and the banking system. to talk have a lot about, including in the equity markets. about,ave a lot to talk including in the equity markets. the growing debate on child pornography.

when "asia edge returns.

>> let's have a look at stories making headlines around the world. coming amid a renewed offensive, we will see 12,000 troops supporting. killed peopleer at a volleyball match.

a pretrial hearing into the deaths of two indonesian women. the banker has undergone psychiatric tests to determine his fitness. he is accused of killing a 25-year-old and another at his apartment. tremor struck outside. followedal quake was by aftershocks. there were a string of landslides and the area was hit with a tremor after the fukushima quake. >> child pornography laws have come under scrutiny all stop there is a campaign: or the removal of the material all stop

we report all stop what she was searching her candy. ->> part of the industry that generated $615 million last year. >> i thought it was a glitch in the system. how could this be sold on amazon? popular keyword, "candy." >> she has received so many threats against her that we have conceal their identity for the story. wereollection and items available on the retail site. as of november 19, a search returned 17 results containing images of girls who appeared to be six years old or seven years

old. the series can no longer be found on amazon japan. a link on the producer website links to -- the company has declined to comment on the story. -- candye dolls dolls series is just one. certain types of manga, an ime, and computer games fall into a legal gray area after lobbying based on freedom of expression. a nonprofit organization works block child pornography. >> it is difficult to say it is illegal.

the targets of the products are not mothers right purchase and usage or their daughters -- theirse swimsuits for daughters. the campaign has had access. -- success. >> are i. here in hong kong, is climbing 2%. interest rates were unexpected ly dropped. hong kong is leading the drive in asia.

.> home-improvement property developers are trading. >> some like it hot. the purse strings. out of hand. a treatment hong kong. fine wine and jewelry. christie's is introducing a

and david inglis is at the sale for us. what have you got for us? am the handbag expert will stop we are at the convention center and it is a big area will stop you can see that this is one of the busier areas with the handbags on display. about 120 of them go for auction a price and we have $1000 and $60,000. are lowerhe pieces than the new one. what stands out is how rare they are and you can only buy them

where they bought the new segment -- brought the new segment. there is an avenue with the secondary market and you can look forward to this. there are a few pieces inside and it is crowded. it is like a walk-in closet from heaven. >> let me tell you that is apt will stop the big sale is in its third day. talk about the level of interest. is it chinese buyers? >> it is. he said that you look at the

total auctions this year and 30% and the growth rate, despite a lot of what we talked about with the anticorruption campaigns is 40%. of check out the other gross segments. listen. ande have a lot of activity mostly these countries have been very active this weekend. chinese dominate the region. >> across the main, 40 meters from where i am, there is an auction. in desk theew work

newer -- one of the newer wasgories full top there one with the demand still there and he mentioned to me that the and it are branching out did very well on the weekend. >> hitting a couple of records. our man on the ground there. thank you so much for that. let's get the latest market now. we have john dawson for that all was that .5%.a each drop by 2%. australia is off.

it is the same theme. the theme has to do with the u.s. it has to do with the chinese surprise rate cut. p -- they cut the base rate. it is a little bit more aggressive than before. they're trying to stimulate this and that is the foundation for this and we have seen that with the resource companies relying on china again for the growth. the gain. you have the iron ore stocks and stocks.re see chinae, you can

decline with the the gains. the example of the stock and the resources gaining ground. cue metals is down. it is because of what china has done. it goes. that is a concern for the company and that is a pure iron ore play. it is rising the most in three years. there it is. the dramatic jump was the opening. most in the last

three years. i will show you the overall it is resource stocks. rising and itre bonds.so much fx or commodity prices are taking the the world's biggest through the centuries talking about this trade. it was -- were the biggest world suppliers.

it is more than what india and indonesia did to mind -- did combined last year. years.p was 390% in 10 ands a threefold gain agriculture is huge. the labor force works in the sector. take a look at the difference. wheat ande cotton, soybeans. you can see it. jump in the crop. let's talk about why the demand is happening. here.re are people

>> that has always been the case. >> i like the spice. that is part of the fuel and demand. reforms thatthe have opened up to farmers and they have been responding. they are producing more coffee and more rice. >> 1.3 million tons of coffee. you say something and i remember. coffee that the ent through the digestive system of a cat. i can't see the fascination. >> not for everyone. let's get it back to angie. >> the biggest nuclear power

company could tap funds. they are raising billions in an ipo. they may take orders as early as today. they have agreed to invest in the offering. get ready for the chinese twist. walt disney is going to coproduce with international audiences. make disneyto movies are audiences in china in partnership with state-run chinese animation groups. iron ore and crude oil prices. are up.uctivity gains capital spending will be cut.

>> talk about change at the upper echelons of samsung. someone toething or explain. tell us what they are. >> a conglomerate is what we call them in korea. >> aren't they families and extended families? >> they control a group of companies. >> thats what is is -- is what it is. we are keeping a close eye on the management reshuffle happening for the first time hisr the heir apparent and father is the current chairman who is hospitalized with a heart attack. isis calling the shots and under the leadership. being the mobile division

the largest contributor to earnings for the samsung group and has had some setbacks. ands competing with apple it has been hit. leave expecting executives ing the mobile division and seeing big changes. >> they are the number one smartphone maker and you have lenovos biting at the ankles. what do they say about what is to come in the year ahead? >> when we see the management reshuffle happen, we expect the announcement. samsung has not commented on that. we are expecting big changes in the division. they have taken steps for growth

and plan to cut the numbers of models produced every year by a third next year and focus on products that they have a more competitive edge on. they transferred members to other divisions where they saw more growth in the future. >> the latest on the samsung. dawn ofthe ninjanomics. they didn't see it coming. morell examine that and when asia edge returns in a couple of minutes.

, jpmorgan.me now

you were talking about the interest rate cuts and let's talk about japan for a moment. , what you think about what he is doing? >> the economy is in stagnation and the inflation has not returned so that target will 1% and theirout long-term structural demographic issues, we know about. japan is challenging. world andround the you see the divergence in the markets. it has changed. after the global financial crisis, it was one of synchronized recovery and now, there are wide disparities around the region. suddenlyropean economy did not start functioning as it

was. isn't that a good thing? we see the economy's rising and we see the global, if you will. >> we have that situation today inflationarye pressure around the world. you look at the economy and there is a risk. japan has dipped back into recession and europe is not in recession. some of the markets are. it is challenging. the banks are using different monetary tools to refine the economy and spur growth. >> is this about policy? they were looking at austerity measures. >> and, navelgazing. >> there is a difference.

>> they would be wrong to cut rates and china did and still does, and anticipating further cuts. ratioserve requirement say that this is a difference with reform and some think this is a desperate move to have a short-term stimulus. what is your view? is relief morning orange? or, is it -- and withis a target the rate cut, there is gross stabilizing. is veryral government intent on tearing out for the reform. equity reform and banking reform. they are not stopping that and that is good. what the leadership is trying to do is maintain a deeper level of

gdp growth so that the reform to be undertaken and that, if that growth was to drop off, they would have difficulty undertaking structural reforms. know is a trade-off and we where they are and leadership. >> you said the difference is, youmonetary and -- need governments to put in structural reforms from china to the boj. to japan. >> absolutely. don't forget, the private sector has a lot to contribute and they invest in employment, factories, and of what men. -- and equipment. they need to get the growth

trajectory. it is not just the government. rely on businesses to drive growth for all stop -- growth forward> -- forward. seeing ae saying we're slow shift. maybe there is not as much of an impact as they expect. >> i think what they are trying to do is guide the market rates because of the cut in the policy rates. i think the leadership is trying to shift so that the corporate that they areow heavily in debt and paying a lot of expenses. therefore, with the policy rate rain andcan see the

the shoulders of the corporate sector coming a little bit. we may have another rate cut. forget, we have been in deflation for a number of years. look at the producer price index. those need a lot of support. and --see this move between is a disconnect the macro growth and the equity. that has been the case for many years. you look at what is happening. partly because of the interest rates being so low. have some declines in

investors in equity markets. >> like everybody else. traffic ishbound slow. -- also,d traffic is remember, the disparity has disappeared. >> everybody was looking the arbitrage opportunity and the weeks preceding it. patient.d to be more it has only been a week. >> let's not be patient. >> a long-term view, as always. thank you very much. >> thanks for the all in today. what would have been on the

menu? steak.s hope

>> one month away. >> i didn't think about that will stop >> -- i didn't think about that. >> overindulgence and flatulence is on the menu. >> i get that. wants to change the way we eat by going back to our ancestors. >> it is not about historical reenactment. it is about taking sensible for and symbols of the eating and saying, this makes sense. the first paleed

o restaurant. the purpose is to go back to .eal food are supposed to do with how the body works and how the food works. there are parts of may that are desperate -- me that are desperate to get an extra $30,000 to get into zone one. investors from friends and family. and it was cheaper

unique in what it did. it attracted more investment than it needed. people wantingof to invest when it expands. christmas is one of the easiest to make paleo. you made big chunk of meat, about as paleo as it comes. a paleo version that is easy. you take flour with ground almonds. o ice cream. pale

>> he is in custody until july of next year until being fit to plea in the case.

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