♪ here's a look at the losing start. japan is driving the benchmark down. is down 1.5%. they're still faltering. services and construction are the weekeakest in seven years.

golden week, or was it? macau-- willhai and shenzhen, we the covering them in about 30 minutes. taiwan and malaysia are entering the fray this week. there is a negative sentiment so far. >> good morning. not the best start in the month. indexes up 9%. as you mentioned, that disappointing number coming out of china did we have seen malaysia come online pretty flat. singapore is down .6%.

we also gain some in korea today. 1%.'re up -- 4%. australia is also weaker. this is the picture on the regional index. australia is in the red. oil is down .9%. utilities are dragging. losers, thatgest sector. --ere are a few places yahoo japan is actually having one of its biggest falls in 19 months. they came through with a strong first half. production costs are worrying analysts. the best performer on the .egional index is ibiden

they have their biggest gain since lester. in australia, with textures down,---- tax shares down. they've had their slowest growth since 2009. rick: this is the key economic dicator of the court appeared contraction for a third consecutive month. stephen: the effectual number for pmi for october is coming in low. his is the third month in a row below 50.

there's deflationary pressures. sluggish demand from abroad. new export orders declined in october. whichnmanufacturing pmi includes services, banking, construction, saw the weakest pace of expansion in seven years. still expansion, but the weakest since december 2008. a lone bright spot was a 5.5% rise in construction. pmi surveys of smaller manufacturers. they have been suffering more than the larger, state-owned .nterprises six rate cuts since last november. , in a note to clients yesterday, says there is a rising possibility of a cut in

the benchmark lending rate and more easing of the reserve ratio clients at banks. back to you. rick: thank you. numbers are doing about 40 minutes. macau is seeing its 17th straight month in decline. october even worse in than expected despite the golden week. we look at how many of these casinos are listed. stephen: despite these new resorts, the vfp gamers are not coming to play. the

, ine take a look at this the full year, we are down 35%. that is the expectation for analysts for the year to date. they predicted that macau's decline will continue next year. there's been a crackdown by beijing. the chinese president has been called upon to diversify macau. that is going to send a signal to the high rollers to lay low. that is what we have been seeing consistently over the last year, mainly since 2014, if we go back in time. casino revenues in macau are falling. you have new resorts like studio hugeopening up with the

batman ride and other attractions that are far away from the gaming floor. rick? we've got an initial government offering in the pipeline. stephen: bloomberg has learned that the china international capital corporation has priced over the topst end. do the math. 110 million usd. there may be a little bit of the discount compared to industry averages are at this point. they're up about 1.2 times the price. on the screen, this is the price to book.

we get stocks trading at about 20 below. that is where we are. this isdifferent about that it actually gives a fairly unique exposure, since this is a more exposed firm. -- are talking about the main policy risk is this freeze when it comes to ipos in china. november 9. trading that is seven days from now. let's talk about cars. volkswagen. we have a report suggesting that vw's october sales in japan came in half the levels from last year. they punched in roughly 2400 vehicles. it is important to note that vw did not sell the vehicles involved in the scandal in japan.

consumers just want to jump on the bandwagon and stay away. engelaomes as england merkel says she does not believe the scandal has ruined the germany brand. business in china is still doing well. they plan on introducing a new suv on the chinese mainland. they will also expect some diesel vehicle recalls their in the first quarter. let's talk about southeast asia's largest bank. ubs is up slightly higher. underperformed abroad. we're talking about net income care. -- here.

you can see this comparison between what happened this year and last year. this is enough to push them higher than the forecast. analysts see a little bit of it up there in the process. generally speaking, singapore and their banks have had trouble finding new areas of growth. bank loans for dbs was down to positive currency movements. in some way, have a look at this chart. this is the three-month cyber rate. it helps that the fed is expected to raise rates. at the three-month look at this formula. rich? rich: thanks for that. still ahead, untangling the web. analysis of the complex corporate structure of the chaebols.

♪

♪ look it what is going on the market during a. -- markets right. china's manufacturing is showing more signs of sluggishness. onober was great, but november, it is unlikely to be like that. >> think you for having us. manufacturingnd, was 49.8, which is weaker with

than what we were expecting. here's the expectation that gdp will be slowing. that's putting some negative bearing on the market this point. . -- this morning. rich: how are you going to manage this volatility? that is something that has been perplexing a lot of people sitting where you are. >> in australia, we have seen earnings come up. that thelying issue is interest margins are falling. having said that, volatility is expected to increase. whether americans will sit on the sidelines is important. rich: i'm discredit concentrate on australia. we have got a rate decision.

the recession risk continues to grow. in the interest rate make any difference-- can the interest rate make any difference? that jsp willtalk increase to 15%. the macroeconomic rate has been poor. we have seen banks interest margins slowing. the reserve bank has to take a sip and cut interest rates by 25 basis points. rich: how much is that? niv: look, economists are currently sitting at a 50-50. we do see some downside risk.

if they do not cut interest rates tomorrow, we will likely see them cut interest rates in december. rich: let's talk about emerging markets. do have the prospect of a rate move in december from the fed within outlook o -- with an outlook of capital continuing? there's pressure on emerging markets like taiwan and singapore and malaysia. what we're seeing is that if interest rates do rise and yellen makes that surprised move, we could see some-- that will continue to 2016 in the first quarter. we are watching that's very closely, especially the emerging markets at the moment. rich: [indiscernible]

questions aret of you having to answer the most? niv: we seeing a lot of consolidation in the oil and gas prices. that is where we see a little bit of value. we'll see oil prices picking up. -- we don't see oil prices picking up. volatility is going to remain until the end of the year. the big question is, will the fed increase interest rates? we believe they will sit on the sidelines. if interest rates rise and the federal reserve rate in australia does cut interest rates tomorrow, we will see downside risk in the australian dollar. we will lead into the federal reserve meeting tomorrow. rich: one word about your top

investment tip for the month. start looking at the oil and gas prices, which are finding good value, exhibited by a lot of consolidation. those of the big three things taking today. rich: have a good one. >> the stories making headlines around the world. russian aviation officials say the airliner that crashed on the broken up inla has midair scattering debris over eight kilometers. leavingus crashed after for st. petersburg. all 224 on board were killed. egypt has dismissed a statement from isis claiming responsibility for the plane

coming down, claiming technical problems. 50,000 people gathered on the outskirts of--together for the national leader of democracy. she says her party believes in real change. one election in kyi inefore putting suu prison for 15 years. a radical islamist group is the prime suspect in an attack on radical book publishers. published works by the merrick and who was asked february.death in up next, china and south korea and japan. are they setting aside the

differences and collaborating economically? we get the details of this historic meeting.

rich: breaking news from beijing. the people's bank of china

strengthens the yuan by fixing it at 0.54%. let's look at hong kong and how did in the free market. we have disfigure overnight joint more weakness for manufacturing in china. hong kong teachers are down by 1.2%. futures are down by 1.2%. pure the big events this week across asia-pacific. rba will be cutting interest rates tomorrow. this is the race that stops the nation. only 11 of 28 economists we spoke to our bidding on glenn stevens cutting rates below 1.2%. wednesday, the most anticipated debut in tokyo in years.

they will begin raising up to $12 billion from the three-pronged ipo. they're kind of persuade households to invest in huge savings. we are expecting results him was a from honda. ow talked about green energy and they are betting on hydrogen for the interview she -- for the energy future. hanoi's by far biggest trading partner. the president arrives at a strange time. singaporen their to -- from there to singapore. china is in. they set aside tensions for the time being to promise to work to promote growth with japan and south korea. --ese three countries

after all the tension and strain, they are talking again. the question is, why? it's the economic imperative that is compelling china, south korea, and japan to cooperate. china's growth is slowing. south korea's exports are tumbling. of northnuclear threat korea, developing missiles. it is urgent for these countries to get together and think about how to deal with this situation together. sam: what can we expect to change after the summit is over? sam: the summit itself was a starting point for restoring cooperation. one of the signs that we would see to tell cooperation is back fully on track is striking a free-trade

agreement. these negotiations have been going on since early 2013. if we see a free-trade deal signed, that would be a clear sign that cooperation is back on track. rich: the trilateral agreement taking place there in the south korean capital. a territory which is out of luck. emptys casinos coming up for 17 straight months despite a rise in visitors. we look into it, and expert ♪

♪ rishaad: look at that. asian stocks starting the new trading month on the defense amid further evidence of china's stagnation. japan's rising benchmark stands, following its best benchmark since 2009. manufacturing their contracting for a straight month. gaining revenue for a 17th straight month. inenue falling by 20.4% october. it is a bigger fall than

analysts have been calculating. macau casinos have been slowing down amid china's slowing economy. puttingapan, korea three years of strained relations and declaring complete cooperation to shore up their economies. the first trilateral leadership talks since 2012. they had been suspended over territorial disputes and japan's military legacy. they are meeting separately today in their first ever bilateral talks. we have 15 minutes to go before the release of the latest pmi r ead. weakness coming through on the shanghai composite and also in hong kong. joining in the selling that we are seeing across most of the region.

kospi is doing quite well today. we had the disappointing factory number out of china. but we are seeing the shanghai composite opening down by more than 1.5%. a lot of weakness coming through. the hang seng continuing to drop, down 1%. we have already seen weakness in the region. japan, a definite under for former -- underperformer today. australia also weaker. new zealand in the red as well. there has been a little support coming through from some of the infotec stocks. that is led by a 1.5% drop we about 1.7%.own by we are seeing quite a bit of weakness coming through in the oil and gas sector recently. heavilys falling quite

in london on monday, down by over 1%. let's have a check of the casino stocks here in hong kong. of course, data showing that macau october gaming revenue was down 28.4% year on year. a little bit weaker than the estimates. we are seeing all the casino players in the red. sands china leading the declines. elsewhere, third quarter was flatter than expected. the economy in china is falling. has had a motor couple of broker downgrades today. doing ok, though, up by about .5%. s in china down by about 2.4%. we have been watching the aussie

dollar. data a little weaker. it is pretty flat at the moment. reacts intch how that just 15 minutes time. china's factory output showing a contraction for a third straight month. curran is with me. what does this index tell us? it demonstrates that the economy is still struggling to get traction. they are struggling with deflation, high labor costs. really hard to get that part of the economy plugging away. it demonstrates china's economy has not turned a corner. a global anglere to all of this? the export numbers have been a bit soft. enda: there is an internal

transition underway in china, but the global economy story is quite weak. some of china's big customers are struggling for growth and when the demand is not there, that is filtering through to china. pboc?d: what about the how are they looking at all this ? we have had all of these rate cuts and the rrr cuts as well. enda: they are not getting much bang for their buck. they are not getting the traction. up, it mays to pick keep the central banks on the sidelines. if it does not happen, economists say the banks may yet step into the market. the government has a lot of work to do and they are spending on infrastructure as well. this is something which is really getting a bit of traction when it comes to social

media as well. let's have a look at chinese social media. zeb: we are taking a look at some of these comments. one user saying no rate cut in november. bloomberg andy at what it is saying is the pboc is expected not to cut anymore when it comes to the interest rates. they might have to keep borrowing costs at these levels. another user says china's economy is hitting a dead-end. and that manufacturing will be in big trouble if china does not let the yuan come down. think the comment here, not

doing very well in terms of manufacturing. let's leave it there. just checking some of the stories making headlines. a ratek of japan denying change after its briefest discussion since 2003. even so, they said they had plenty of time to discuss policy and look ahead. they pushed back the target date for 2% inflation. >> energy prices are the biggest factor for us in delaying the inflation target. but slower growth in this fiscal year due to the weak demand from the u.s. and emerging-market was another reason. the prices continued to be on a rising trend. we expect wages and jobs to improve further. rishaad: greece has been told to

improve financial sector governance. says they need another $16 billion to ensure they can withstand another crisis. financialgreece's industry is a key part of the bailout. they have made progress, but much more remains to be done. the man who has led commerzbank for the past seven years has decided he will step down as ceo. towas given the option extend his contract past october of 2016 but decided not to go ahead with that. he has taken the firm through some very troubled times. they had a $20 billion bailout. he has also been cutting jobs. of soured loans as well. he announced he has been leaving his job. south korea's nine leading conglomerates dominating the kospi.

these companies are tightly-controlled by a ruling family. let's bring in tim craig. intertwinedl these cross-ownerships. everyone is ending up owning each other. give us some example of that. another over the weekend. we have done the analysis that we have put up on bloomberg intelligence. our global data guys had given us some new ownership maps to work with. it is quite interesting. this is samsung. corresponds or boxes to 17 public subsidiaries. the blue are the private subsidiaries. if you think this is complicated

sk has over 80. what this allows us to do is look at and clarify who owns what. samsung --in on there with us for a second -- bear with us for a second. this is what samsung is taking a stake in. 15% ownership -- it usually back out,- if you zoom back moore goes back to lg electronics. you have the family that owns relatively small percentages that exert control over the empire. korea, you are going to be buying into the chaebol family. is family control a

good thing or a bad thing? they have risen to international levels through family control. it is a continuation of this. tim: it is true. , sk.hink samsung, hyundai if you look at the median of the nine flagships we analyze, the sales growth is a little less than 5% for next year. the expected sales growth for asia is a little over 6%, so it is a discount. there is a similar discount where these flagships are underperforming on an operational basis the broader operational in that. -- index. rishaad: it is hugely complicated, but thank you very much indeed. up next, we have the pmi

released. we will be breaking that live. stay with us. ♪

rishaad: you are back with "trending business" as we have a look at what maybe moving markets this week. we are talking to the chief economist at the bank of singapore. thank you for joining us. what is top of your agenda for the next five days? onwell, those jobs numbers friday. plenty going on around the region as well in terms of policy and data. the biggest thing will be the aussie policy meeting tomorrow. we have also got these pmi numbers coming out. as soon as we get those numbers,

i will ask you for your reaction. let's get to the reserve bank in australia. glenn stevens has often doubted the efficacy of monetary policy. is that a code word suggesting that 2% is about it when it comes to interest rates? >> you are also getting the suggestion that the currency level is reasonable. a year or two back, they were happy to talk down the aussie dollar. is get a sense that .70 about ok. after the numbers last week, inflation is right near the bottom of the target range. ?hy not the view from central banks at the moment seems to be, let's do this asymmetrical policy. market, 50-50 for a rate hike.

i think the chances are probably higher than that. there is not really much region -- reason to delay. it would make sense to cut rates tomorrow. out with ust hang for a second. we should be getting this number through from this latest pricing managers index. englek we can get stephen having a look at that. what do we got? .3, better than contraction, but better than expected for economists surveyed by bloomberg. mostly of private sector, smaller manufacturers in china. the previous month was 47 point two, which was a 52-week low. now it is 48.3. we are seeing a bit of an floorement at the factory in china. still, this is the eighth consecutive month of contraction for this gauge.

actually, it is the knife out of the last 10 months that this gauge has been in contraction. the official pmi came out yesterday. that also showed further 49.8, which was the same as september. the third consecutive month of contraction for that one. much like the official pmi, we are seeing signs of stabilization in manufacturing in china with the manufacturing pmi coming in better than expected. back to you. rishaad: let's get reaction to those numbers. thanks for sticking around with us. still showing contraction. is it basically on the radar in a big way? >> this is one of the biggest releases of the month these days. a lot of chinese data you cannot trust very much. this isthe hope is

influencing u.s. policy as well. i think it is quite a good number. it shows distinct improvement from the past couple of months and it does look as if the policy support that you have been putting through in china is beginning to get a bit of traction. they have been trying to boost growth and the numbers have been getting worse. it is encouraging that you are getting signs of stability and moderate improvement in those numbers. it does suggest policy traction. i think that is a reassurance. rishaad: what about the service side of the economy? theay far more attention to manufacturing side. should we change that? >> i do not think we should. i think the manufacturing side is where the heavy cyclicality of the economy becomes evident. that is the area where you will get the most volatility. it will be the most responsive to policy. the service side is a big part

of the economy, but it is slower-moving, less aggressive. the markets are right to have the main focus on the manufacturing numbers. the fed is going to be key when it comes to the job number on friday. a week number like we had the previous month could really scuffle any chances of a move. >> it could, but at the same time, you could get a 200, 250 number. there is a reasonable argument made that it has been a volatile series and you had a couple of week months that could be followed by a compensating strong month. the market is probably looking of a number. most of the indicators have been steadily strong. it is the jobs growth numbers that have been the outliers. favoriteis firmly the

for the fed to start moving. from that point of view, you would be looking for the dollar to be fairly strong on that heading into friday if we get a decent number. rishaad: great talking to you, as ever. richard from bank of singapore. let's talk about some of the other stories making headlines around the world. israel has barred palestinians from the west bank after a weekend of violent attacks. in the latest, three people were hurt when a palestinian man rammed his car into a group of pedestrians. there are fears about control of the holy site in jerusalem. being killed in palestinian attacks and 68 palestinians have died by israeli gunfire. the fbi says there is no evidence that last month was caused by a bomb. it has led to an arrest of the vice president, who was not hurt

in that blast. he accused a deputy of trying to kill him. the fbi has examined evidence and nothing suggested an explosive device. president erdogan's rule will be strengthened. he regained the parliamentary majority he lost five months ago. since then, they have suffered a wave of terrorist attacks. the turmoil has seen the turkish lira jumped the most in two years. stabilityn island of after the break. we concentrate on india, the ruby, and the challenges facing the government. ♪

♪ rishaad: this is "trending you live" coming to from hong kong and streaming on bloomberg.com. pledged to maintain spending on infrastructure as it looks to boost growth. critics are concerned the government will have to cut back to meet its deficit targets. the country's junior finance minister says there is no need. he spoke to our editor in chief. he says he is confident the government will succeed. >> we seem to be in a very comfortable position as far as a fiscal deficit target is concerned because tax revenues are running really strong right now. we still have five months more of the fiscal year to go. on the divestments, we had a challenging target. we have some work to do.

but when we combine all of these elements and take a look at the expenditure side, i think we with -- gh to work >> you will get to the 3.9%? >> we are very confident that we will meet the 3.9% deficit target. rupee hasby -- >> the been stable this year. do you think the worst days for are behind us? is it a much more stable currency? >> the macro economic stability that we have been able to achieve in the last 18 months of our government -- when we came to power in 2014, the macro economic indicators were flashing red. with policy moves that we have took, we have been able to

restore stability to our macroeconomy and the indicators are flashing green. i think it is the rupee that is really showing that. unlike many other currencies, the rupee has been an island of stability. it reflects the strong macroeconomic foundations that we now have. rishaad: india's junior finance minister speaking to our editor in chief. , "the martian" is still top dog at the box office despite opening in theaters five weeks ago. it remains number one in north america. the matt damon movie generating more than $11 million over the halloween weekend. "burnt" brought

in $5 million. a look at the next hour of the president hungary's and japan starting their first ever bilateral meeting. ♪ we live in a pick and choose world.

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rishaad: it is monday, november the second. this is "trending business." i am rishaad salamat. ♪ rishaad: we are going to be heading to sydney and singapore this hour. here is a look at what we are watching. for asia-pacific equities, opening in the red. copper is down and oil as well. korea japan, and south

putting recent tensions aside and pledging to work together. and golden week. 17th casinos and during a straight fall in revenue. let us know what you think on twitter. ." is "trending business let's take a look at the reaction from the chinese pmi data. it is the first trading day of the new month. >> we are certainly not seeing november start where october ended off. it is quite a downbeat day coming through in the region despite the latest index showing a little bit of stabilization. we are seeing the shanghai composite down by about .6%. it has come off the earlier losses. still weakness here in hong kong. the hang seng down by about 1%. we are seeing weakness across much of the region. index is a little

higher today. off byralia, the asx 200 more than 1%. this is the shanghai composite at the moment. sectorstill seeing every in the red. telco's by about 1.6%. oil and gas coming under pressure. quite a few stocks in the region today that we will be talking about. we talked about the downbeat number coming through in casinos in october in macau. we did expect a lot of weakness from the casinos. macau is up by almost 3%. yahoo japan one of the worst performers today. its share price down the most in 19 months. icbc shares kong,

also lower. it has doubled provisions. samsung helping support the kospi. more than 3%.p that was actually the slowest growth for westpac in three years. meeting the latest pmi -- reading showing some stabilization. it was an eighth consecutive month of contraction, but it came in that are than economists have been looking for. steve is breaking down the numbers for us. >> the manufacturing pmi survey is mostly smaller companies who have perhaps been suffering more. october reading of 47.6. it came in a few minutes ago better than that, 48.3. still contracting, but a marked improvement from september.

47.2 was the worst number for this reading since 6.5 years ago. perhaps this is the signal of stabilization many economists had been .2. the official manufacturing pmi was out yesterday for october and also showed some signs of stabilization at 49.8. that was the same as the previous month of september. it was still the third month in a row below 50, indicating contraction. there is deepening deflationary pressure across the manufacturing sector in china. sluggish demand from abroad for its exports. new exporters in the official pmi again declining in october. the official nonmanufacturing pmi, which was also out yesterday, that includes services sector, banking, telecoms, and construction. it's saw the weakest expansion in seven years. the lone bright spot was a 5.5%

rise in new construction orders. these six rate cuts that we have had since last november not necessarily helping manufacturers much. goldman sachs expects another 25 basis point cut in the lending rate for the pboc by the end of this year and more easing of the reserve ratio requirement at banks. right now, the headline is better than expected caixin pmi manufacturing numbers at 48.3. we were expecting 47.6. rishaad: more on that story later in the program. we want your opinion. us your thoughts. its ipo debut coming up in the next coming weeks in hong kong. let's have a look at that story with david. david: november 19 let's get started with this deal. it is the ipo auto investors have been waiting for.

they have priced the ipo at the very top end of the range as much as they can. isrces saying it 6,000,000-10,000,000 shares. raising just over 810 million u.s. dollars. our friends at bloomberg intelligence have noted that that is essentially in-line, maybe a little bit of a discount compared to the industry average. forward price-to-book earnings. that is a look that shows the five biggest brokerages. it is well worth noting that these ratios have fallen substantially from their peaks of roughly 2.5 times when things were going very well in the markets. china forhange in ipos. shares began trading november 9.

icbc should be down about 1.6% right now. that is the world's largest bank, just in case you are wondering. assets well over 3.4 trillion u.s. dollars. earnings were out friday after the markets closed. profits were up ever so slightly. to 1.44%.tio crept up the president of the bank abandoned their target of keeping the third metric on your 1.45% due to what he calls severe conditions. perhaps one of the clear signs as to why the bank is doubling provisions. bnp thinks the relatively low npl coverage

ratio is too low. some think that the bank management sees it as way too high. in other words, they are a little bit cautious according to the bank. $11.5 billion and you are ,ooking at shares -- a-shares profit has certainly slowed. it has fluctuated between gains and declines over the last four quarters. growing a maximum 1.4%. let's talk about dps. shares should be down as well. there we go. earlye a little over 1.22 in august. increasee saw a 6% from last year, enough to push the bottom line higher.

that and you see analysts were expecting a slight dip in profits. had trouble finding new areas of growth. the increase in bank loans at dbs was largely down to policy movements. celebrated libor -- fed will soone jack their rates up. more than double this time last year. back to you. rishaad: have a look at what is going on in sydney. of $5.5e in just ahead billion. let's get more from paul allen in sydney.

another set of results from an australian bank, another tepid response. it is a falling market, but down 2.3%. paul: it is. that is the bigger picture here. it is difficult for australian financials to impress the market. off, it was not a huge shock. the headline figure does look great. if you look deeper, perhaps not so fantastic. yes, it is another record. this has been the slowest profit growth since 2009. , its first rise since 2012. on the good side, interest margins unchanged and they are still paying a dividend of $.94. ,he ceo says all divisions there are headwinds in the

wealth and institutional businesses. rishaad: we have the rba meeting tomorrow. everyone is fairly split on whether they make another move in easing. paul: this will be an interesting one. this really is a live meeting. the economists are split. 17 think there will be a hold. the other 12 that we have surveyed think there will be a cut down to 1.75%. cut when the rba meets tomorrow. cut doesnsus around a grow. by the time february rolls around, the majority view is we will have a cash rate of 1.75% here in australia. really the same old story. the economy still rebalancing after the mining infrastructure investment boom. we had the saturation over the last month where banks have been raising mortgage interest rates.

that is putting a crimp on consumer spending. inflation is very benign. to cuts definitely scope if the rba would like to. for now, the week aussie dollar is helping them hold on for the meantime. rishaad: thanks, paul. on our website, we are looking at dysfunction junction. it is a railway putting india on the slow train to the future. that is coming up on bloomberg.com. have a look at that one. coming up later in the program, a losing proposition. pmi dropping for a 17th straight month. find out if there is any light at the end of the tunnel. break, we look at the significance of the trilateral summit. ♪

rishaad: you are back with "trending business." the leaders of south korea and japan have begun their meetings a day before they will meet with china to cooperate. our next guest says expectations of these meetings should be low. is the associate professor at the center for international security studies at the university of sydney. thank you for joining us. tensions arerial very close to the surface. they are putting egg loss on it. how low -- a gloss on it. how long can they gloss them over for? >> obviously, they need to resolve these different disputes once and for all. at this moment, the important thing is to resume this summit, which was suspended in 2012.

and then to focus on perhaps economic issues which are more urgent. perhaps ao develop crisis management mechanism to avoid any escalation of the dispute. rishaad: absolutely. when we look at the run-up to this summit, expectations were incredibly low. there were no expectations, really. for you to say that you should expect something not very much a surprises probably to the upside, even. >> you are right. they all emphasize that it is very important to do the summit. but also, they are committing themselves to next years summit. if you read the joint statement, there are various ministerial

level meetings and official trilateral dialogue that covers a whole range of issues from trade, security, and all the rest. also, i think it is important to know that all three of them agree that the north korean nuclear issue remains very important and needs to be addressed, especially when you think about the recent iranian nuclear agreement. obviously, the three of them are committed to trying to find a way to resume six-party talks which include the united states, russia, and north korea. rishaad: out of the three, japan, south korea, and china, what does each country want out of these talks, in your view? china, of course

one of the issues would be to -- -- to intensify or deep in deepen the trilateral cooperation. the three of them have about 20% of global gdp. is stillregional trade very low. only about 19% among the three of them. although china is the largest trading partner of both japan and south korea. so the economic agenda is very important. course, the chinese will also refer to historical economic issues as well. park,uth korea, president and for the last three years, historical issues are on the top of the agenda. for abe, the fact that he is

invited back to this trilateral meeting given what has happened with regard to the passage of security law and historical issues, all the territorial disputes, i think that is certainly the goal. being back into this trilateral meeting. middle, right in the between the three countries, we have north korea. you mentioned that before, the nuclear ambitions there. how much pressure can they bring to bear on kim jong-un? now, it is at little bit tricky in the sense because i think the has lostonal community time in the process with the north already having three nuclear test and continuing to work on nuclear weapons and

manufacture, produced more weapons. to get north korea back to the realiating table requires top-of-the-line diplomatic skill that north a window korea is willing to come back through some preliminary meetings to discuss what should be on the agenda. but it is a very daunting challenge for the international community. certainly for the other five countries. rishaad: does talking to pyongyang in the end actually make any difference? think getting into the negotiation and talking to one another, at least you can get a sense of exactly what north korea wants.

down demands,ay you can discuss those demands. leaving north korea alone, just continuing to work on its nuclear missile programs, will not solve the problem. getting back to the negotiation, at least you can have a measurement to assess what is going on. there could be an opening. naivebody should be too to think this could be resolved very soon. rishaad: thank you very much. what the stories making headlines around the world. russian aviation officials say the airliner that crashed in the siberian and insula appears to have broken up in midair, scattering debris over more than eight kilometers. leavingus crash after for st. petersburg. all 224 people on board were killed. egypt has dismissed a claim from islamic state that it brought

the airliner down, indicating technical problems were to blame. turkey's ruling party has swept back to power, strengthening president erdogan's 13-year rule. it took at least 39% of the vote and will regain its parliamentary majority. this as turkey begins its war against kurdish separatists. ira jumped the most in almost two years on optimism over political stability. opposition leader has addressed a big campaign rally ahead of next week's elections. nearly 13,000 people gathered to hear the head of the national league for democracy. she told them her party offers the only real change. won the last openly-contested election in 1990 before the military put her under house arrest for 15 years.

rishaad: up next, that winning feeling. ,he all blacks making history giving fans at home and abroad the perfect sendoff. ♪

rishaad: so the rugby world cup

is over for another four years. after 48 games, 2439 points scored, and back to back championships, the new zealand all blacks claimed the cup. 34-17. new zealand fans were up early to watch the match. they saw their team completely dominate the first half to lead at the break. the wallabies scored 14 unanswered points to get back into the game. new zealand extended their lead before victory was sealed. their captain is now expected to retire. >> it is different. not to say the game was any

easier. it was still a tough game and it could have gone either way. the guys were still playing the way we wanted to. we had a little bit more control. rishaad: we are headed into a break. coming up, china's holiday with more golden week. macau casinos expected to report when "trending business" returns. ♪ we live in a pick and choose world.

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a look at our top stories. a hint of stability on china's factory floor. manufacturing contracted for a third straight month. over, the factory gauge came in at 48.3. revenue on the way down for a 17th straight month. 28.4%. was up by

macau's casinos seeing earnings tumble since 2014 following the official crackdown on corruption. her first ever bilateral meeting with japan's shinzo abe. despite three years of strained theirons, shoring up slowing economies. indeed, japan's military legacy. how are those further signs of contraction affecting investors. japan having his lunch break. one of the worst performers in the region. doubt almost 2%.

as you mentioned, we have seen that survey showing a little bit of stabilization on the factory floors in china. 1%.around 4/10 of index has been in the black all morning, slightly higher at the moment. .e did have data out of korea shipments down 15.8%. essentially, we are seeing a little bit of a pickup. if we do have a look at the south korean, it is at its 1%,st level, around 3/10 of holding at 1142 against the dollar. have a look here, you can see that spike when the survey

was released. a little bit of a boost. rba rate decision out of australia tomorrow. 71, 41 at the moment. japanese yen has been strengthening against the dollar, holding at 120.42 against the dollar. answer that china may be stabilizing at last. economicnt correspondent. >> with people saying the economy may be stabilizing but really i think it is too soon to

call that. people are clutching a little bit at straws. all the policy stimulus is finally gaining traction. the bigger picture remains a sluggish story. high.nterest rates remain it is too soon to call any major turnaround. rishaad: of course, these problems are not entirely down to the domestic market. >> will he tend to look at china, we focus a lot on how they are trying to transition their economy. we also after member the global trade story is weak. some of china's biggest customers are slowing. those are big customers for chinese shipments. rishaad: what about the bank of

china here? >> economists say they can do more. you have to member the fiscal side of it. they brought in some tax breaks. to really they do kick off those infrastructure projects as we head into the end of the year. lot for that.s a let's get some reaction to this on social media. >> we have been looking across twitter-like service in china. first comment here, and you can take a look at this in response

to that announcement. lower pmi figures. just on this, i also want to mention that about nine days from now, we do get an idea of how much banks will be lending. believe the i forecast was $160 billion. just putting this into context, they relaxed that cap on deposit rates. , someng it down to zero would say reflects the deflationary pressures. third 1 -- a survey that bloomberg did across a lot of economists was

that the bottom line was that may see another rrr cut before the end of the year. as far as rate cuts are concerned, the pboc is done. rishaad: thanks, david. the gloom is dragging on for the casinos. 17th straight monthly decline in revenue. data showing operators did even worse than they anticipated in october despite a visitor spike over china's golden week holiday. zeb: the good news here is that we have seen revenue falling at the lowest rate since january. despite his gloomy headline, the shares are doing well. the big players like sdh holdings, they are all up.

china galaxy investing as well. -- rising.ousing some nice gains in the shares despite the fact that revenue did fall for a 17th straight month even with increased visits by ordinary travelers. ares just the gaming tables seeing less action. rishaad: the mass-market have performed better than the vfp tables. zeb: you have fewer people coming, fewer people willing to place the big bets for a number of reasons. maybe they are projecting their wealth in the moment with the chinese economy is not at its strongest. on the high end of business, and

also the money that is laid down for everything from extensive wine. we're going to check in on some other stories. bank of japan is denying stifling debate. this, after its shortest policy meeting in 12 years. just three hours, 17 minutes. said there is plenty of time to look ahead. >> fall in energy prices is the biggest factor in delaying the inflation target. we demand from the u.s. and emerging markets was another reason. the prices continue to be on a rising trend. europe, greecen

is against its background of the biggest banks. the parliament approving legislation to recapitalize lenders. anothersays they need $16 billion to withstand another crisis. united states saying athens have made progress but much more remains to be done. martin blessing was given the option to extend his contract past october 2016 but he refused. he has led the company through some troubled times including its bailout. is the fourth european banking ceo in the past few months to announce that he is leaving his job. let's have a look at some of the big events coming up this week

across the asia-pacific. what are the odds of an rba interest rate cut tomorrow? economists.of 29 they are betting on glenn stevens cutting rates. ubs. tokyo's most anticipated debut in years. almost $12 billion three-pronged ipo. they charge persuade households to invest more of their savings. tokyo motor show is dominated by green technology. hydrogen asng on the fuel of the future. nissan gets money on battery power.

jinpingpresident xi starts a two-day visit to the amount. china is by far hanoi's biggest trading partner. strained relations over disputed islands and search for oil in the south china sea. xi goes on from there to singapore. up next, a sales tax shakeup. the junior finance minister who says the plan would be a game changer. ♪

rishaad: police say a radical islamic group is the prime suspect in attacks on a secular book publisher the left one dead and another critically wounded. the two men targeted at published work by the

bangladeshi blogger who was hacked to death in january. he is one of four atheist bloggers murdered in bangladesh this year. palestiniansrred from part of the west bank. this after a weekend of violent attacks. the wave of violence began last of control inrs holy sites in jerusalem. the fbi says there is no evidence that last month's explosion on the mouth even maldivan.-- the president president wasn't hurt in the blast accused his deputy of trying to kill him.

india has pledged to maintain spending on infrastructure that looks to boost growth. the are concerned government will have to cut back to meet its deficit targets. the finance minister says there was no need. confident.is >> we seem to be in a very comfortable position as far as the debt target is concerned. the internet tax revenues are running very strong right now. there is little bit lower than we would like to get the stage fully still have five more .onths to go a challenging target of 69,500. some work to do. so we think that when we combine all of these different elements and take a look at the expenditure side, i think we have just enough to work with.

they are very confident we will be able to meet the 3.9% fiscal deficit target. >> the rupee has been fairly stable this year allowing for these gyrations worldwide. daysu think that the worst of the rupee are behind us? >> the rupee reflects the macroeconomic stability that we have been able to achieve in our government. when we came to power in may of 2014, the macroeconomic indicators were all flashing red. through a series of policy moves , we have beenook able to restore stability. i think it is the rupee that is really showing that.

,nlike many other currencies the rupee has been quite an island of stability and in fact reflects the very strong macroeconomic foundations we now have. question of one of the less complicated sales tax regimes of anywhere in the world. >> it is a real game changer for india and we are doing our utmost to try and push that through. just prevent the gst from being passed, we would have passed it and it would have been a great boon for our citizens, business people, investors. i think the congress party is playing politics because it is quite clear that this is something that is a benefit to india.

there is only upside. when there is only upside, why you trying to block it. >> you expect by the middle of next year to have the gst in place? onwe can turn on the switch april 1, 2016. factors are ready to go. need the house of parliament to function for just a few hours. china preparing a challenge to aviation's established names. a new plane hits the spot. ♪

rishaad: this is "trending business." -- we have a look at some of the key events investors in the u.s. will be looking at. >> in the week ahead on wall street, investors will continue to focus on the latest economic data and its impact of whether or not interest rates rise. indicateers tended to in their latest statement. investors will be particularly looking at the outlook. reports expected this week on the labor front. economists from bloomberg say employers probably added fewer than 200,000 workers in october. the u.s. service industry, which makes about 90%, is expected to grow its slowest pace in four months. u.s. manufacturing has contracted in october.

that would be the first time in three years, highlighting the factories are struggling with slowing foreign sales. that is after widening in august. among the companies participating in the parade of earnings, facebook, aig, billionaire warren buffets berkshire hathaway. also, automakers will be posting u.s. vehicle sales. various fed policy members will be making speeches likely to fed headlines, including chair janet yellen makes testimony before lawmakers on wednesday. china's long-held desire to challenge the world's established names turns another ofe today with the arrival

its first domestically designed airliner. the -- thetion of 19, what does this mean for china and the global aviation industry? >> china has been really trying to grow its aerospace industry as part of the efforts to really join the ranks of the advanced industrialized countries in the world. that is where the error focus is coming in. they are not just stopping with a single aisle, they are also looking to do wide bodies and develop their own engines. china has a lot of ambitions going forward. i guess the next step for this aircraft is to get some sales. >> right now, most of the

commitments they have gotten are focused on the chinese local companies. what they really need going forward is they need to build and select the foreign company the foreign companies to more confident in the performance of the aircraft. they will be a lot of focus when they make their flight, it is going to be whether the maiden flight helps to regain some of the confidence from the foreign companies. rishaad: what challenges does face when he tries to take on the big established players, airbus and boeing? has already had some delays in their maiden flight. the delivery has already been pushed back several times. i guess a lot of the people worldwide, especially in the aviation industry, will be focusing a lot on when the

maiden flight happens and how well it happens. they can gain the confidence from the foreign industry to look at this industry. rishaad: thanks a lot for that. china's attempt to try and get into the aviation business and take on airbus and boeing. martian" is still top dog at the box office despite opening five weeks ago. the film remaining number one in north america, generating over $11 million over the holiday weekend. bullock's "our branded "$3.4 million. is asia stay tuned, it edge coming up.

china and the hands of possible stabilization. asia edge is next. ♪ we live in a pick and choose world.

love or like? naughty or nice? calm or bright? but at bedtime ...why settle for this? enter sleep number. don't miss the semiannual sale going on now! sleepiq technology tells you how you slept and what adjustments you can make. she likes the bed soft. he's more hardcore. so your sleep goes from good to great to wow! gift the best sleep of your life to your whole family. only at a sleep number store. right now save $500 on the veteran's day special edition mattress with sleepiq technology. know better sleep with sleep number. well, it all started with my free credit score from credit sesame.com. they gave me so much more than a free credit score. credit sesame's money management tools and personalized offers saved me tons of money and helped me reach my goals. i just signed up with their free app. what's my credit score? your credit score is 650.

that's magic! no, that's credit sesame.com you get so much more than a free credit score so do more with your score at credit sesame.com harbour that's victoria and indeed it is the new trading day and this is "asia edge." ♪ a look at our top stories. inan equities opening november in the red. oil is also down. dropping from its strongest since the devaluation. playing the game. after atocks jumping

less bad environment. yvonne: also coming up this hour, hands-on diplomacy. leaders put years of tension aside in place to cooperate on economics and security. china prepares to roll out its first single aisle passenger jet. stability.land of india's junior finance minister says the rupee can weather the storm of global volatility. a special conversation with bloomberg's editor-in-chief. november not quite starting where october left off after the gain on the asia-pacific index last month. regional index down around 1%.