look at the growing release -- take a look at the growing worries about deflation in europe. the worries continue in the south java sea over air asia. the road ahead for electric cars as beijing extends subsidies. all of this and more in the first "asia live" of the year. >> item david inglis, keeping an eye on the markets. we kick things off with the first full trading week of 2015. light across most markets, investors trickling in from the holidays. what we do have for today is negative on china and japan. china, manufacturing at a 22 month low.

just a tad about the threshold of 50 there. what is leagiding decline? manufacturing, the of singapore -- bank of singapore. the telcos are low. shanghai is resuming where it left off. obviously the 1.3% -- another 1.3% for the index. quick check, i mentioned shanghai continuing oil is also continuing. crude, about a dollar. we have bread 80's and slower

-- $.80 lower. production in russia. a post-soviet record. direct exporting -- direct exporting 92 -- iraq exporting 92.9 barrels a day. you are looking at $80 a barrel with a long list of brokerages that currently forecast -- have cap forecasts. reduce the upside for long-term investors -- very do see upside for long-term investors. checking in on futures, a change from friday, we were down four points. back on track, 42,000 four the

benchmark. >> a drop to the lowest it has been since 2006. ecb will they won't they? >> it was flagged up for december but nothing happened. it caused a sharp in the markets that dr -- sure in the markets. we are clearly expecting a big government bond post, quantitative easing, on the 22nd of january. the inflation data is out on wednesday. >> retail sales the next day. >> interesting. look forward to seeing how the

germans are spending. glenn maguire is the head of fx at a&z bank. theory is commenting here he is commenting -- here he is commenting. >> ecb is considering. >> there you go. many expecting action on the 22nd. if there is not, the markets will be of these. -- of these. >> the reservoir of dispute -- there is a lot of dispute. >> the elephant in the room. >> it has gotten smaller. you'll get y -- you look at

"der spiegel." >> the odds are even for greece to exit. they have the vote. it's the opposite party gets a victory that would be the current prime minister. the is warning that if they get a victory, greece will default and leave the euro zone. which would be a disaster. you can't keep bailing out a country that does not want to do the hard -- >> the d to dugh decisions. >> in other news, a macau casino

is the listing from shanghai that is -- is delisting from shanghai. the value in the past year -- they lost a total value in the past year. it was an offer before christmas for $30 a share. they are valuing at $3.1 billion. you cannot justify a higher bid. you expect the third of visitors to come from china. samsung is moving from smartphones to tvs. to maintain a challenge to google the first tv powered by software will be displayed as week in las vegas -- this week

in las vegas. samsung wants to reinvent itself and in a top $7 trillion -- they may top $7 trillion. speaking of smartphones, china's largest smartphone maker enjoyed 2014. this event revenue doubled last year -- very same revenue doubled last year. take a look at their unstoppable rise. what is the secret? >> it is a big boost. you cannot beat good quality and low prices. they sold millions last year 68.1 million to be exact, and they say there is more. next week, the ceo will release the new phone and announce a

key, important product. we do not know what it is but we will lockout. -- watch out. . they are valued at $34 billion but that could double to $100 billion. they say it has the same potential as facebook and alibaba. but low prices and value is not easy to create so their margin is lower than apple, 13% versus 22%. already the third-largest vendor behind samsung and apple. >> hoping the comparator samsung and apple -- how do they compare to samsung and apple? >> xaomi is catching up. as you mentioned, they are

trying to expand through different branches. they started as a software maker but now they are making tv settops. they are producing water purifiers air purifiers already released. xiaomi is trying to build an ecosystem. two years ago, they make plans for an ecosystem and have made significant advances in 20 hard were companies -- hardware companies making products. investors say that this kind of ecosystem combining hardware and software will be key in the future but you have to remember that lots of other smartphone vendors of problems when it comes to markets -- have had problems when it comes to markets and they have all

slipped back. the curse of the third-place. >> one thing that they have is the chinese consumer base. >> and they are very aware of that. >> trying to capitalize on it. banks. -- thanks. >> we're live in beijing among speculation that the government is lowering the growth target. there is a chance that oil can rebound, who do not bet your house on it -- but do not bet your house on it. ♪

>> welcome back to "asia edge." the next guest says that asian markets will pose mid to high growth this year. norman chan joins us.

mood do i change -- mid to high change. the growth is going to be difficult. >> i think the asian market will benefit from the favorable global environment. the u.s. is going to post growth. and we have a low oil price. that means inflation, and many countries that are importing oil, and subsidizing oil will benefit from a better income situation. >> you are again taking the mistake the fundamentals will support equities. we know that does not happen. in china, we saw a flying stockmarket. >> china will be another major support. i think that that will go

further and helping asian market. one major thing is that china is no longer suffering from inflation. lower inflation, which has paved the way to loosening monetary policy which will benefit the stock market better than last year. >> one reason we do see the inflation environment softening his commodity prices, that is softening commodity prices -- is softening commodity prices. but your money, but do not been t your house? >> i think it depends on policy in countries like opec and russia. i think the demand is not bad. the globe is lower but the

problem is on the supply side. u.s. production is at a record high, and opec is maintaining output level. that is affecting the oil price. more than half of the oil price is supply rather than demand. >> you are anticipating further declines for oil right? people want to maintain share so thatey pump more. >> we do not think there is downside. as long as oil price remains low around $50, $60 or $70. >> you are looking at the u.s. considering getting rid of the export cap. >> there is a chance that the expert cap will be removed. and that the u.s. would become a net exporter. probably not 2015 but 2016

or 2017. a rebound is long overdue. >> where do you put your money? if you look at the equity basket, do you hedge and persimmon oil and wait for a rebound -- put some in oil and wait for a rebound? >> we still have an equity reading and the emerging markets. -- rating in the emerging markets. emerging markets might have time to catch up with the restructuring effort. >> on the flipside you look at companies that have done well. airlines have done well on a weakening price. but is it priced in? >> the airline industry will

remain able to gain further but that is not something we're focusing on. many fundamental measures that we use do not see the airline industry in a long run. none of them are big fans. >> the best way to become a millionaire is to be a millionaire and invest in airline stocks. that is an old phrase. [laughter] >> china is interesting. that will benefit from loosening policies. stockbrokers. there is more room to grow. a bank it depends on the policy. i think if the chinese market policy is used for, -- he used further -- eased furthe they can rebound furtherr,. >> weather affects the air asia

search. >> troubles with the insurance as well. ♪

>> bodies have been recovered from the air asia crash. they stepped up the search for

the data recorders but weather continues to hamper the operations. we hear from haslinda amin. what are the conditions like? >> the se seems calmera and divers are trying to take advantage, but the weather has been a challenge for those trying to recover arts. -- parts. there is almost zero visibility waves have been as high as five readers, and the wind -- meters and the wind is strong. and found bodies that were unable to return them because of the wind -- they found bodies but were unable to return them because of the wind. we know that the fifth these has been recovered -- piece has been recovered. investigators are trying to piece the parts together to see what happened to 8501.

the jail has been located. -- tail has been located. this is important because it is where the lockbox is placed -- black box is placed. five vessels are trying to detect the ping from the black boxes. they release those for 30 days after the plane crashes into the water. efforts are ongoing, effort by the weather. -- hampered by the weather. >> we are getting reports that an insurer may not pay off because they did not have permission to fly the route. what do you know? >> that is according to reports this morning. an insurance company is

reviewing air asia's policy and says it will not pay claims in violation -- if violation is a part of the exclusion list. a third-party liability claim from passengers. as you indicated, the investigation is ongoing to see if air asia violated terms of agreement, whether it was licensed to fly the flight. indonesia says they are allowed to fly four times in the week and that does not include sunday. singapore has said that the aviation authority says that air asia has a permit to fly every day in the winter season. we went to indonesia's director general of aviation to get his

perspective on the situation. >> singapore is not necessary. to have their own -- they have their own rides to keep the schedule. indonesia, has the same right. there you have the right -- they have the right to the airlines. >> the sense is that somebody dropped the ball. is air asia flew without a permit, the onus is on air asia as well as the regulator. >> the boston marathon bombing trial starts today with the selection of the journey. tsarnev is accused of placing

the explosives. the defense team tried to have the trial moved from boston arguing he would not receive a fair hearing. the good face the death penalty. -- he could face the death penalty. strong action is threatened against the palestinian authority. ellis dime says they will bring war crimes charges against israel -- palestine says they will bring war crime charges against israel. israel has frozen revenue. management netanyahu has said that -- benjamin netanyahu is said that palestine has chosen confrontation and that israel will not stand by. kim jong-un has called for rivals to reunify and create a prosperous nation. and committee member says that their work is being hindered in

the south and from abroad and that the cloud of nuclear war hangs over the country's. the president of iran as it did at better -- has hinted at better ties. they say that they will not give up revolutionary principles. they are under sanctions from the u.s. and the one for the nuclear program -- u.n. the nuclear program. this event enrichment might be the way forward -- very say that enrichment might be the way forward. see what happens when we get the lunch break over with. ♪

>> a new year, a familiar rally for stocks and shanghai. growing fears of deflation, the euro is taking a tumble. and what are the odds? michalek 2014, such a difficult call. first let's get the latest on the markets right now. shanghai, again, headed north david? >> for the last 10 minutes or so

we had 10 points added. nonetheless, what is driving things along? you had energy and the big transfer of stock their. look at these gains there. basic resources. up 8.5%. just about every stock in the room is rising at this point in time. ignoring the pmi, coming in at a two-month low. more or less here, one point more. once we get above this if we see the rally continue at this pace we will perhaps likely get

to this other level. 3462. anything above that, people would consider that a break and take us back to the same levels of early 2007 about 6000 away from that that is where the index is going. look at the money market rate dropping over the last two weeks. will this money in the system continue and be a concern next week? we will see. >> thank you, david. questions are now emerging about a crashed air asia flight as the search continues. indonesia says the carrier did not have a permit to fly the singapore on sunday, the day of

the crash happened. this morning they said that they would not pay claims if the flight violation went on its exclusion list. for more bodies have been recovered from the java sea. 34 people have been retrieved -- the remains authority for people have been retrieved so far. with us now is the head of the indonesia search-and-rescue agency. air marshal, thank you so much for joining us. what is the latest on the search right now? >> day number nine of my operations we have already some of the operations.

we have found another two bodies . during the nine-day operation why the sea? >> echo the we are preliminarily in the investigation of what brought the flight down but can you comment on what aviation experts are saying? that perhaps this suggests that the flight landed in one piece before disintegrating on impact before in-flight disintegration? can you comment on that?

>> i have the lead of the mission. we go in they might pay with the formula. we will find in the picnic area. >> what is a major delay for getting the black box here?

>> is about finding what we can using the equipment. again, the weather is very bad. many neighboring companies -- countries work on this force. >> i want to ask you about why air asia was flying on sunday when you say that indonesia did not give it her mission to. why did regulators in indonesia

not pick up on this for a long time? >> with our mission? like that is right. >> permission for air asia to fly on sunday. they do not have response to the language division. i do not have any comments. >> i understand, but right now it is the search for the victims at sea.

am marshall, thank you very much for joining us out of indonesia. >> david was talking about this. they enjoyed that rally. where are we right now? you have a look of the state of play for china.

>> is maturing economy is no surprise of the end of the day. are we reading too much into this? >> i think you are right. this is a maturing economy of the working population that is shrinking. stock is diminished in manning -- many areas. that means that now the scope to grow by tapping new sources of global demand is reduced. put together the chinese capacity to grow is not what it was and it will continue to slow

in the days ahead. shifting the emphasis away from the speed of growth towards the quality of growth. we may see that reflected into something more moderate from the group target. >> there are a lot of bullets in the gun, if you will. they can do that again. they can lower ratios as well. >> i think that's right. one of the things the chinese pessimists consistently underestimate is the policy space that the chinese leaders have to prevent a hard landing for the world's second largest economy. we saw them take advantage of some of that space in november

with the cut in interest rates, but they have got a lot more. with rates slowing at elevated levels the expectation is that we will see the central bank acting again in the first quarter. >> tom, thank you so much for that. >> predicting revenue this year can be as tricky as a coin toss or predicting the car that will come up next. i guess that is a bit harder to do. analysts are a bit conflicted. i have an idea. heads, tails, you call it. is it as easy or difficult is that? >> even industry insiders do not know how this will turn out.

micallef, the gambling center of asia far larger than the las vegas strip. we saw the high rollers laying low. >> they did not go to macau. >> they certainly did not spend millions of dollars, like they had in the past. losing $73 billion that was just one of the issues that we saw the economic slowdown in china, in general a shift in the markets, the tourism markets, to more mass-market leisure activities. optimists say that that is what will support macau going forward. >> those families are not really worried about anticorruption, to be sure. but there is one casino operator

calling it quits. who are we talking about? it's severely underperformed the index last year in 2014. the state in new york on the nasdaq, there is plenty of trading their, but in hong kong it reflects the overall concern about the chinese gambling sector. they are deciding that keeping the listing is no longer worth the effort. >> got to go to the new york nasdaq? >> that's right. >> there is a lot of action. >> got it.

>> this is "asia edge." ♪

>> we are talking about the u.s. role in all of the data coming out of asia is to pick this week. just to show that everything is on an even keel. >> i think that if the job growth is still accelerating it will be in the u.s. and asia. >> said is very directional know where they're going with interest rates.

it used to be that we were looking at the jobs report before we made the decision but we were very clear on where we were going in 2015. >> true, usually it is higher but in that point we need to growth recover to help the profitability of the u.s. population. not as strong as before, it has some downside risk. >> i was surprised that you were not as keen on investing in japan. >> more of the same that's a problem isn't it. >> in japan we like it. we do have some indirect sources. showing that japan would reach before we could commit client money to it. >> how big of a factor is the

oil price in your investment the siding? >> not to major. a lower oil price would be beneficial, of course. it would also be an excuse for the market to become more worked up. >> they will be moving into other areas in which they have not performed as well because of the lower price? >> it will be some on the oil in coming countries in asia. >> you are calling them an efficient -- beneficial but it doesn't seem to be trickling down to consumers. >> it would appear that they got rid of the subsidies. >> that would be the effect the fiscal budget.

>> that will now be unleashed for the real development policy and infrastructure investment. >> indonesia needs more to go further. >> what is depressing you this year? >> good to know. >> today is the most depressing day of the year, officially. >> why is that? >> first of the year, holidays are over. today's the day. >> what is the biggest event in

your view? >> today i don't know. we will be making sure that europe stays on track. >> be will hopefully be able to embed a -- unveil more monetary easing's. >> i want to play the optimists. what excites you, get your spirits up for 2015? >> i want to help the u.s. economy's to have a better probability. in 2015 we will see a high interest rate hike coming

through on global growth. otherwise it is still relying on slow growth around the world. not sustainable in the long term. >> what may surprise us? what do you think might surprise us? >> the known unknowns? >> i think that we knew what was , the wild card and japan. there is a good chance there. i do think. but it is not totally confirmed. it is still one of the most drastic economic reforms in his treat.

they will be able to maintain another uncertainty we are looking at. >> the problem is if the economic growth is lower than 5% . >> social and otherwise? thank you for that. coming up next? >> we are pounding the markets. will the power the electric cars this year? >> we will see. ♪

>> china appears to be more and more green as the years go by. it isn't till the end of the decade, of course, courage and china to go green. tesla is trying to get a foothold there. >> absolutely. you want to see blue, but that's not what you get. asking him what the world looks like you had in 2015. >> red is my color, don't you think? >> it is also a lucky color for china. >> big-time. >> why? >> it is the biggest market in

the world. getting people to buy with electric giggles. a lot of cities are very polluted right now. >> let's go for a ride, i want to see how this baby drives. >> you say that china is such an important market. what do they do to prevent these pollution problems? >> they spending a lot of money on r&d to standardize the charging infrastructure, the battery technology, all sorts of technology. >> any competing technologies right now? >> definitely. feels that fuel cells have been

catching on. we think they will take longer to be adopted. there is always a concern for safety. the use hydrogen as a main source of fuel. a lot of work needs to be done to get the consumer to get comfortable with having hydrogen in their vehicles. >> tell us what 2015 will look like for automakers. >> china is going to be a major market. there are a lot of moving parts. we have had two years of strong growth. consensus is that there will be a lot going forward. very congested. the economy is slowing down.

actually forecasting gdp to grow only 7%.

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