the hong kong shanghai stock link and we will award our mark. the message is received and understood. ruling party suffers a defeat as voters say, take it slowly with china. a hard knock life for sony. hackers steal movies and put them online in the monday edition of asia edge. >> look at the markets. it is the first day of december. a negative day. it is lower because the banks and we have china on the deposit insurance scheme for the banks really hitting. all the savers in china are being insured. it opens up the market for the banks. no bank is too big to fail is the message from beijing. we have stocks falling across

the board. the price of gold, oil, and silver. they are suffering significant declines. and it is a heavy decline. china and the is japan story. at 1%.sed for lunch is >> we may be seeing the beginning of the end of the last major protest site in hong kong. earlier, the police moved into the admiralty district of the city. they cleared protesters and barricades. there were scuffles and arrests. student leaders call for reinforcements.

the protest started over two months ago. tell us what you have seen thus far and what is going on. >> good morning. certainly, a busy start to the morning. we saw police action to clear protesters. it is near the waterfront and behind government offices. protesters had came and taken over the road. the police moved in to clear them. we saw scores and scores of omotesters running away fr the police advancing. iny were pushing protesters to a park area and a walkway, down into this main protest site that i am standing in now. was brought about because of some actions that happened last night. protesters had been rallying

here yesterday evening. you can see the protest leaders call on them to surround government buildings. of the leaders, said the government must respond to the democracy demands. by surrounding government headquarters, it would put pressure on the government. what happened yesterday was that we saw hundreds of protesters coming into the admiralty and going and taking over the road. we saw clashes with the police and protesters had homemade wooden shields and helmets, ready to confront the police. the police were pushing them back using batons and pepper spray. and thetesters remained police said they will keep the government area and the buildings open. they are determined to keep roads that are reopened opened to traffic. they have moved the protesters off of the road and force them back down into the protest site.

things have calm down a lot in the last few hours. there is heightened activity here. it is remaining calm. >> what about the roads that have been totally cleared? do you expect them to clean up the rest of the admiralty site during the next 24 hours? >> from testers have been worried. -- protesters have been worried that the police would move in to clear out the protest area. it does not look like they have. there has been a battle over the walkways leading in and out of the government. -- government building. afternoon, there will be a court hearing regarding an injunction -- two injunctions from a motor company. both of these are units of a bus

company. units haveus requested an injunction regarding different roads in the admiralty area that protesters have been occupying. the injunctions have been used to clear roads. and, also, clearing some of the roads on another street. will see if this area will be the next to go under the terms of the injunction. >> thank you. the heart of the protests. >> oil continues the slippery slope, falling to the lowest in five years. the news energy markets reporter joins us now from tokyo. why is it following so quickly?

falling so quickly? >> it is a couple of factors driving that. two decide against production cuts. they maintained the output target and will keep producing. the backdrop for that is that the shale production has surged to the highest in 30 years. you have a lot more supply flooding the u.s. markets and backing out of a lot of imports to the u.s. that have to find a new home. what was different about the decision is that they said to show producers that they are ready to engage in a price war. price goesow low the and, if you still produce,. -- if you still produce. they are waiting to see if they slow growth. >> how low could ago?

go?ould it >> the big question on everyone's mind. ec allows the market to set the price and that is the big question. some are saying that it could trade between $60-$70 a barrel. that is the big question on everyone's's mind. we have -- on everyone's mind. we have to see if the price falls. >> ken opec survive this? opec survive this? changing a lot and there was dissent at the last meeting. countries,der they want toan, cut to the target to stimulate prices.

you have larger producers like saudi arabia, kuwait, and the arab emirates saying, we are ready for the price war. they are going to ride it out. we will see how it emerges. the bigger members are ready for the price war and are going to ride it out. >> thanks for that. let's take a look at the impact on the slumping oil price. >> you can see the airlines. they are falling across asia. across the board, up 4%. a gapore airlines, up by percent. ana is up 4.2%. you have korean air up 7%. you have asian airlines up by 9%. you have qantas up by 5%. they are seeing significant

gains today. you have the flip side. australia and materials following. -- falling. you have chemicals and basic resources. 19 stocks declining in only one rising. look at gold and silver. etc. the stocks are off 8.2%. 7%. is down off by 7%.b rio tinto is down. evolution mining. you are seeing the big mining stocks fall across asia, china, hong kong and japan. you are seeing lower costs. they are being driven higher.

>> right. and thentinues to cool government is taking another step towards a market-driven economy. this time, it is your taking savings. what are they doing? bankey are insuring deposits. they are the only country in asia that does not have a formal insurance system and now, the government will ensure as much at each bankan that is covered. it was implicitly understood that if anything went wrong, the government would have the banks. they removed the implicit guarantee and cleared the way for china to increase competition for funds. about timingon is and we are talking about the smaller lenders that have been regarded as being not able to

fulfill some of the debt. reinforcing the idea that other lenders to go under? basically, the government is going to do that. the economy has been cooling off and is heading for the slowest expansion since the 1990's. after years and years of lending to unprofitable and troubled insurance, deposit suggest that beijing will allow these banks that are not competitive to fail. an analyst at securities in hong kong says that china needs deposit insurance because of the greater risk to small banks having a liquidity crisis. willboc says that this remote market based risk resolution. at the deposit

insurance program introduced in china. >> looking at other stories making news, shoppers in india may get a cheaper price on gold after scrapping prices on imports. reducey boost demand and smuggling. restrictions were introduced . to add more sparkle to the portfolio. they are considering buying diamond mines. in canada and africa have been assessed. the holiday shopping season made a sluggish start in the u.s.. -- in the u.s. it is the second year in a row that shares declined during black friday weekend. it was long famous for long lines and frenzied shoppers.

looking ahead, a runaway hit for brad pitt. cent.s not making a next, no bank is too big to fail. we will discuss that when asia edge returns. ♪

>> getting back to markets and getting to the next guest. >> is the chief strategist at financial markets. insurance, right? the western world is used to deposit insurance. there is a different understanding and china. >> deposit money in china is tricky. you are losing money no matter

what you do because the deposit rates are so low that inflation has dropped. you would have been losing money by putting money in a savings account. banksrse, there are dodgy that we are not so sure about. it will be a great help to fix the financial system. >> is it a tacit acknowledgment that the banks will fail and they are ready to let them fail? if so, this clears up one thing. implied understanding that the state would intervene. are small and local banks that have no business being in business. >> are they the first to fall? >> possibly. the implication is that, if you let them fall, why not let

companies and others fail they take in investor money without proper protection? some sense, in the future, theoretically, it has to fail. they did not let any bankruptcies or defaults on bonds payouts happen last year were earlier this year. -- or earlier this year. what is the process? is underway and we look at what they decided last year, in terms of these off --s, and kicked ticked off what had occurred. 80% had. we are moving in that direction. you have moreat,

flexibility on how to develop deposit rates. the ability to fail and creates a situation in which people can feel more safe about the overall financial system. that is the biggest problem. china has massive savings they can go nowhere at the moment. -- nowhere, at the moment. the stock market is a casino. . >> they could send it here. this is a form of deposit insurance and it is picking up speed. >> it has. this is the most important thing. there was a debate in the pboc and the state council about easing monetary policy not actually been training a lack of

confidence in reform. the debate is over and they have decided to do both. they are speeding up reform and easing monetary policy further. that is the right direction. >> we are going to leave it there. we are going to talk about oil. it is heading to below 65. also, taiwan possible link party gets a bloody nose. taiwan's ruling party gets a bloody nose. > this is asia edge. -- >> this is asia edge. ♪

of taiwaning party suffered a defeat, losing a half of the seats in local elections. it is viewed as a rejection of the ruling party's views. byt is being said commentators and what is being said by the leader? well, it is hard to say, at the moment, what exact changes will happen. the president made a speech and said that he received the message from the people.

thatesults were bad enough he heard the voices loud and clear. he saw the premiere resigned on the election night after the poor showing for the kmt. has several key policies and legislature right now specifically relating to trade with china. underis a trade pact legislative review and talks are coming up for a good trade deal involving agriculture and manufacturing sectors that the administration will be key to keen to make progress on. >> what does it mean when it comes to the election? right now,ng party, obviously, under some pressure

to do some soul-searching and figure out where things went wrong for them. party getting a huge morale boost and looks to the elections to take advantage of the openings that seem to have, for them. them.have come for >> thanks for that. deborah joined us from taipei. >> we are checking other stories making headlines around the world. the centerofficer at of the ferguson shooting has resigned. darren wilson has quit. said that his continued employment would put residents and officers at risk. the decision not to try him sparked protests. politicianero turned has vowed to shut the country

down in his campaign to topple the minister. they have been in islamabad and accused sharif of vote rigging. ran says he will start a nationwide tour this week and initiate a general strike. the world of cricket has celebrated the life of phil hughes, the australian batsmen who died after being hit. he never regained consciousness after being struck in the back of the head. he debuted in 2009. held on thewill be coast north of sydney. rejected as referendum requiring central banks to hold what a percent of their balance sheet in gold. the swissave required national bank to repatriate gold held in the u.k. and canada. opposed the had

move and said it would make harder to make prices stable and shield the value of the franc against the euro. checking in in sydney for you this morning. take a look at the extending of the losses in australia. after hsbc came in at 50. the south koreans are under pressure -- south korea's kospi is under pressure. we are watching live pictures of protesters in admiralty as the police start moving in. tokyo, coming up after the break. ♪

>> the final stand. hong kong police move in on the last major protest site. a hit online and sony is not enjoying the proceeds. he is just not that into you. shanghai is losing enthusiasm for the connection and hong kong. -- in hong kong. let's return to the top story.

the beginning of the end of the democracy street protests. the police moved into the streets in the admiralty district. they cleared protesters and barricades. there were scuffles and rs. -- and arrests. tell us what you have seen today. is calm now, there here at the protest site. the government offices will reopen after being closed this morning after the police action in this area. we heard from the secretary of security begin to the press a short while ago. he said the process were on the verge of getting out of control and that the government will not tolerate violent action.

is making a push to clear protesters off of roads. protesters had occupied those last night. between --hed clashes yesterday. this morning, the police made a renewed effort to clear the protesters off of the road. fleeing to as were grassy area and the police pushed them along one of the walkways that you see behind me and back onto the road and the main protest area. and,d see some pretty loud i would not say violent, but definitely clashes. police tackling protesters to the ground and being hit by different objects

thrown by the protesters. i have to say the police presence has melted away. there does not seem to be many, if any, police. how things were last week, when you would walk around and not see many police around. in there key areas protest area and around the government building. it seems to protect the government building. they remain open. they made other moves to clear the rest of the protest sites. >> thank you so much for that. let's get the latest on the markets from john dawson. >> you can argue that the markets are down 1.8%. a lot of this is down to commodity stocks falling. -- a barrel.

that is a concern. the chinese banks are a story -- not a story -- a plan for deposit insurance. all banks are not too big to fail. acrossll ensure savers china. so almost all savings in the bank. the banks are under pressure to raise rates and compete. it is about the deregulation of the markets. we are seeing banks and commodity markets again. insurers are coming in. lower.h today opened that is the story so far. overall, the pie chart from hong kong is all red. you see consumer goods falling and big declines there. the financials are down. a lot of those are banks.

banks, 1.2%. you see stocks falling and not one is gaining. china andt bank in the biggest bank in europe are falling. in regards to financials. i would go back to the overall map. japan is back on right now and you can see the nikkei as the only one showing a gain, apart from china. hong kong is languishing. there is a problem in malaysia. this is the picture across the market today. as i mentioned, today is the first day of trading and australia is laden with commodity stocks. gassee liquid, financial, seeing declines.

lng is down. a huge fall. it lost a quarter of its value in a day. that is the picture. hong kong has a big decline again. it is about the fundamentals. story, the oil energy, and the china banks and the deposit insurance plan. >> it was two weeks ago today that it was an exciting day. the hang -- shanghai-hong kong connect was-- stock launched. trading has been less than spectacular. >> a good way to put it. the northbound flow, the first day, the old florida was taken. quota was taken.

if you look on the southbound side, we barely have scratched the surface. the first day i had anemic flow. -- the first day had anemic flow. >> it goes down below your tv screen. look and it just barely has been touched in the days ensuing. think about it. the chinese investors are heavily skewed towards retail and our momentum oriented. shanghai.um is in look at what has happened with the index that has raised ahead. ahead.same time -- raced the index hasme,

been muted since occupy took place. it plays into some of the lack of interest in mainland investors looking here for the time being. --it has this engendered disengendered northbound interests and reduce arbitrage and making money that way. that is what we were talking about before. what has happened? the select group of stocks that are jewel listed -- dual-liossted. premium,ge a-share that you can see in the center top, what it means that the a-s

hares are trading expensive. you can see significant premiums. consumers and industrials. ofis only in the areas financials of the most know where they are not trading substantially. with big insurance and big banks, they are at a discount. an area wheren global investors have been buying northbound. >> tell us about more areas of interest. >> it is interesting. purchases,northbound we have seen the northbound purchases of interesting companies. the spirit. ofre are a number industrials. there are a wealth of industrials to dig into. the shanghai automotive group.

the railway. we have not been able to touch base on them. they are being bought. it has been muted. there are points of note. purchasing --n has been purchasing down here. $.10 was bought every day. note, 25% of the activity coming southbound is done on the sell side. the northbound is skewed to the buy side. >> casino stocks. how have they been behaving? >> indeed. there was a nice recovery and the stocks in october.

november. another selloff. brought another selloff. there was a worry about how long this would last. we will have numbers for the month of november. the expectation is for revenues to be down 20%. there is near-term hurdle that we talk about. there are longer-term opportunities and there is a question of when the investors come back and care. it will be interesting from a global perspective. it will be interesting with the shanghai-hong kong connect. clearly, china retail has not cared. >> thank you. look at some of the other stories making headlines. prices.ival is cutting

e hopes it will boost growth. they introduced a budget service, uber-x in october. o hopes to raise money and their ipo. they raise money through subscription. alibaba is a major investor. >> avoiding a radical shakeup with all of the ceos keeping their jobs. they are investing in a new shift plan. -- chip plan. taking achair is greater role with his father recovering. >> handling fallout from a hack attack. picture, fury, is on

filesharing sites. what do we know so far? >> 500,000 downloads of fury on one site. say 1.2 million downloads in the next days. they are hacking into sony pictures and stealing the movies and uploading them on several websites. it is not just theory. i.t. matter. an a skull popped up on employees screens. the 1982 remake of hitthat is scheduled to theaters, expected to generate $100 million. bigger picture and the downloads cut the global billion.y $575

that includes investors in the movie industry. >> there is talk that it is this.ly pyongyang behind >> it is interesting and it may coincide with "the interview." to tv producers are recruited by the cia to assassinate kim jong-un. north korea told state media that this is not ok and the release of the film is an act of war. but ok. -- >> ok. we are looking at the price of oil down at its lowest in five years. we will have a look at that next , when asia edge returns. ♪

>> welcome back. joining me is david tweed and uwe. share the headlines breaking. the financial secretary is holding a presser and is not optimistic about the economy and pointing figures -- fingers at occupy hong kong. they say that occupy central has impacted a wide range of businesses. do you agree? >> i do not. it is overdrawn and is self-serving. there are problems that hong kong has. they do not have anything to do with the protests. otherave to do with elements of government that are serious and they have to address those elements before they start

blaming protesters. >> we have been talking about that. does this represent the beginning of the end? , the democracy process goes through stages. the one we are in in the moment is where the central part of hong kong is occupied by students. that will not go forever. it will end. i spoke to a bloke who said it might end by the end of the week and another thinks he will hang out there until the end of the year. what is happening is that the hong kong police and the government are trying to have better circulation of traffic and giving access to the mid-levels where a lot of people live. you will find the inconvenience of the occupy grades less on the

grates less on the public and people will except that occupy last for a longer span of time. time that officials come out and say this is damaging to the economy, where is it? what is going on -- what is damaging the economy is cracking down on corruption. we saw a line from bloomberg intelligence saying that the consensus is that retail sales are up, suggesting this has failed to show that the protesters are doing anything. but if you do not mind, let's face it, hong kong is not a retail driven economy. this is i've financial service economy. -- this is a financial service economy.

>> getting a cab is a problem and the taxi drivers are complaining. >> it is hurting the business. >> paying less at the pump. >> yeah. >> nice segue. >> speaking of which, oil. that $65. how low can it go? >> quite a bit lower. the arithmetic is simple. opec is producing the same amount it has always been producing. the united states is producing more. of course there is a supply push that is creating the situation. i think nobody will be part of opec.

end.nk this is at the >> indonesia is not an oil exporter. >> i think malaysia is at the edge. ?ho knows where this goes opec has run its course and the biggest reducers are not part of it. is the conspiracy theory, is it not? not.y these guys are producing oil at 10 times the price. what's interesting story on bloomberg.com today. -- >> interesting story on bloomberg.com. they are looking at how oil prices tend to stabilize -- oil prices can destabilize economies. iraq is one.

>> what does it mean for geopolitical -- >> that is just it. we do not know how the geopolitics will play out. instability in regime's in these countries. in this countr -- in these countries. >> desperate times call for desperate measures. what are desperate measures? >> there are no desperate measures. in the middle east, oil is produced at five dollars. in texas, it is $40. it is $60.o bakken, there is still an enormous differential. >> you have to look at these

sorts of numbers where the country's 10 reached the budget targets. reach the budget targets. >> there are impacts on deflation, as well. >> thank you so much for that. >> coming down on chocolate. report some of your favorite food. after the short break, no, never! ♪

>> welcome back with asia edge. climate change talks kick off today in peru. >> we are used to seeing images of ice caps melting. to consequence is changes the food we eat. tom gibson reports. >> globalization. lth. and, supermarkets. some of our favorite issues may soon be off the menu. the world is running out of chocolate. drought, andsease, new markets, the demand is expected to outstrip supply by one million tons for the for suitable future. -- foreseeable future. brought coffee

fungus to plantations. prices have skyrocketed. in africa, the number of regions suitable for growing coffee is expected to fall as the climate warms. warmer temperatures will reduce crop yields. reduce the time for growing and maturing. food prices could rise 84% by 2050. our oceans will not escape. catches in the tropics are expected to fall by 40%-60%, according to the u.n. rising co2 leads to ocean acidification, which fish are slow to adapt to. this will increase the costs of the goods we buy.

foodte change experts say shortages will cause political instability and war. tom gibson, bloomberg. >> not just what we breathe.

>> from the moment he stepped on page. >> i am putting this in the bedroom. >> the king of late-night was johnny carson.