accept slower growth, but not too slow. informal economy, saying it creates more opportunities than the official sector. follow me on twitter. let's take a look at the trading day. the jakarta session just getting underway. broader markets showing substantial gains. things, also helping playing catch-up, doing the heavy lifting. the services cmi number. texas, 4789,t west have a look at the hang seng index. 23,000.ow

shares seeing a summer looking chart. trade, that came out right about there. in chinese stocks listed hong kong up by over 2% now. 2.3% for the hang seng. oil and gas leading the way, up 4%. cutting the prices for diesel and gasoline. a broader look at how asian markets are doing, with the exception of south korea and manila. australia reporting encouraging expected now are than trade deficit, up 1%.

-- zealand at a record cry high. down 8% for wholesale milk powder. , some favorable profit guidance from the company. be the most in 18 years. 8%, not a bad day. back to you. ,ishaad: breaking news financial markets opening up. the shenzhen hong kong stock connector should start this year. getting back to the japan post ipo, more than satisfied expectations, much anticipated debut. they are soaring.

it was worth it if you were invested. absolutely. shares and all three subsidiaries soaring. let's look at the parent company, japan post, shares rose 17%. ¥1631. the banking unit also doing ¥1680 -- also debuted well, ¥1680. over an hour for the insurance unit to start trading. it is currently up almost 43% ofher from its offer price ¥2200. japan's government raised $12 billion from the three-pronged

ipo. it was oversold -- oversubscribed. almost 80% went to japanese retail investors, part of prime to urge shinzo abe push people to invest more savings. the ipo is the largest sense i'll went public. it is japan's biggest privatization since 1987. shares soaring today. as wellto have patience if you're going to invest in a japanese ipo. we can see most of the companies -- have debuted have done incredibly well and their first year good the only one that did not do well was a japan tobacco, which went negative, down a must 35%, but has since then done quite well.

a lot of analysts saying there is no way the government will allow these state companies to fail. history shows us that patients does pay off if you are investing in a state backed company in japan. rishaad: thanks. another look at that story throughout the program. is ratcheting down expectations for gdp growth, 6.5% annual expansion is the new normal. we have a look at this new blueprint. what is that 2020 vision here? >> the chinese, and his party fresh from that latest gathering and beijing and its latest five-year blueprint targets no less than 6.5% gdp growth each year to 2020.

it is enough to meet an earlier stated goal of doubling gdp and per capita income this decade by 2020. it is chinese new normal, yes, but not too low to shake confidence. in the five-year plan is the timetable for convertibility of yuan, and possible inclusion into the currency basket. consistency with its reform process to promote what it calls a transparent and healthy capital market. just a few minutes ago, we heard from the governor saying that china would like to see a more open financial system. it wants to increase as well in the five-year plan inbound and outbound investment, reduce poverty, and shrink the income gap by boosting the middle class. it will speed up rural land reform and strengthen resource ,rotection, including water

which beijing does really needs. they will promote green develop and with a new fund and speed up the general media of element. authorities also promoting a transition to a more services-based economy, rather than one based on manufacturing. the services pmi for october is 52 andt, rising to october from 50.5 in september. that is the highest since july. rishaad: thanks. let's have a look at other stories we are watching. for the airbague akata, facing -- t

a record fine. them to phaseers chemical propellant suspected of causing airbags to inflate with explosive force. more than 19 million vehicles are affected. the regulator has also told carmakers to speed up the recalls. the ceo is expected to address the press later today in hong kong. in extra 800,000 vehicles may be involved. at least 11 main cars are known to carry the software volkswagen , and has put aside more than $7 billion. the news coming a day after u.s. authorities indicated evidence of wider images cheating then volkswagen has admitted.

the company has denied that. its porsche unit says it is halting sales of a model criticized by u.s. regulators. the leaders of taiwan and china set to meet for the first time since the civil war split in 1949. talks will be held in singapore on saturday at a gathering. says these in taipei historic talks are aimed at strengthening relations across the straits, but no joint declaration will be signed. website,a look on our why uber is sticking with expansion plans despite regulatory issues. have a look at bloomberg.com/asia. managings hour, expectations, tesla commits to the low end of the sales forecast after posting a bigger loss than had been estimated.

that is coming up right after this short break. the landmark trading debut for japan post. will it stimulate an appetite for ipos in the u.s.? ♪

rishaad: signed, sealed, and has more, japan post than satisfied expectations. all three divisions are soaring. first come some fascinating facts. ♪

rishaad: let's have a closer look at this. thank you for joining us. let's start things off. look at the share prices of these three divisions. a holding company by 16%. the insurance bit of it was up by nearly 50% at one stage.

was this priced to sell and make sure that everybody who got invested was a winner? aim, to leave a good taste in the investors mouth. it is a landmark deal. it will help to foster other entrepreneurship, potentially employment growth, and that is the goal of leaving -- such a large amount of money on the taper. rishaad: people were talking about it being worth half its book value. >> that's correct. it is fundamentally very cheap, but it is only an 11% float, so 70% go within the next few years. this, normalrade

supply is coming, and it will need to be incentivized this fact offor having a lot of supply coming to the market in the next 3-5 years. rishaad: what about longer-term? believe thatm, i the stock should be doing ok. japan pros holdings will be training more mixed. it has bigger potential growth expectations. i think what prime minister shinzo abe is trying to do is get people back into equities, make it an equity class they can put their savings in. they used to do that in the 1980's. they're trying to get people on board with this again. how successful is unlikely to be? >> i think the lessons have been

.earned this is not the 1980's anymore. there is a positive correlation between the ipo and employment growth. it will hopefully foster employment growth and economic growth in the japanese markets. that is the expectation to this is why so much money is being left on the table. rishaad: very quickly, just to get this out of the way, did you invest in this? >> we did not invest at the initial ipo price. we will be adding all three companies to our portfolio with the perspective of keeping those names over the next 3-4 years. facebookcome

-- alibaba, facebook. which ipos are you talking about? happen propose that will the a transmission mechanism for that happening? >> it has been a tough few months for the u.s. ipo markets. pricing really came down, especially in health care, consumer names, and i believe that with such strong momentum coming out of the japanese market, it will have a positive impact on the pricing of struggling u.s. deals. about albertson's, univision, and probably about neiman marcus towards the end of the year. obviously a slightly different market, but momentum in the globalized ipo market is quite important.

it will hopefully transfer to the u.s.. rishaad: this is good news for prime minister shinzo abe. can it be regarded as reform? is reform.elieve it look at europe. look at germany, big privatizations in the late 1990's. i think they have had a substantially positive impact. on economic growth, restructuring, on getting rid of state monopolies. is the same potentially for japan. it is not a short-term impact. we will see the impact to and the end ofs monopolies over the next 5-10 years. rishaad: thank you very much.

turn to some other stories making headlines. russianlysis of the metro jet airline says it slowed suddenly and plunged to the pernd at 500 kilometers hour. sayscking website information is consistent with a coming apart in midair. they're also looking at repairs to the plane after it was damaged 14 years ago. a a tailone suffered strike in full to the disaster. smoke and as from a nearby volcanic has closed an airport, dozens of flights canceled, passengers stranded. merge and australia had already counsel some flights to ballet. -- bali.

south korean academics and opposition groups say the government is trying to rewrite history by taking control of high school textbooks. students will have a single state published history book. the government says current texts have a left week pro north korean bias. critics say he wants to whitewash the authoritarian rule. where heading into a break. on the other side, who is playing favorites here. thew icon for twitter and controversy it is causing online. ♪

♪ this is "trending business". sharp the fall risk after losses over $10 billion. the company posting $700 million in losses in the fiscal first half of the year, television, tablets all fail in may. it said it would cut its workforce by 10%. sprint taking a tumble after

posting results below estimates. $.15 per share is more than twice expectations. network improvements, deals, and tablet promotions to attract new customers, but that has hit the bottom line. than $20st of more billion and aims to cut back by 10%. we're going to have a look at social media, twitter. it is a heart now. there has been mixed reaction to this change. a lot of people saying it is not like instagram. also saying, how can you favorite something if it's going to be a heart. the thought is this now

increases more blogging. people aren't sure. we had a lot of tweets about this. of them saying that it is not enough to retweet it. we had an employee of twitter. little: this is maybe a career limiting. this person says he works at twitter, but even he can't replace the term favorite was something so loaded. i know they've had some job cuts recently. rishaad: we will monitor and see

how he is getting along at twitter. they are using them oh geez -- emojis. rishaad: thank you very much indeed. market,ing a younger and they've snared the comedian jon stewart and a for your production deal. off after a 70 year -- 17 year long run. he will initially make short form videos for digital services , hbo go and hbo now. ♪

♪ rishaad: top stories, the asian equities on the advance on renewed global appetite for risk your action. over chinese economy may be starting to clear today. october showed improvement from september. rising for the first time in six days and hong kong and rebounding from a september low. jakarta hit by a potential a hit byine for -- takat

a potential record fine. the chief executive is suspected to address the issue at a news conference. banking and insurance divisions have soared on the japan post ipo. sales in the insurance unit jumping my bar than 50%. the holding company jumping as much as 18% with a 16% gain for the bank. where this stands josh --he cap pan ipos -- -- japan ipos. it is quite a debut for japan post as you said it are surging this morning. there are a couple of things

driving this. individuals are jumping into these stocks. they're looking for good companies to buy, and also this selling outnment some of its shares. in the history of government backed ipos, the shares have performed very well, not just in the first day, but in the days after that and the month i had. nths ahead. historically have japanese listings performed? it is interesting. if you look at the 10 biggest ipos in japan, they have had strong performance. on average, up 12% on the first year, upfor the first 44%. a lot of these have been government-backed entities, eight out of 10 have had some sort of government support, so you are seeing a strong track record, and using investors bet on the prospects going ahead for japan post. what are the broader

effects this has on the markets? who suggested on that this might put some of the u.s. ipos on back -- back on track. just a financial ipo. it is very symbolic. -- of the rhine ministers prime ministers had made privatizing japan post the center of his tenure. and hehe biggest bank, assetsued the financial locked up in japan post had a negative affect on the economy overall because the bank ended toe kind of conservative in to investments and that land a lack of innovation and dynamism throughout the economy, so this is a step that he was looking for. rishaad: thanks, joining us from tokyo. just getting to this action.

it is a hectic morning for investors there with those three stocks coming to the market. a very busy day for investors overall. >> volumes are quite heavy. let me get you an update on shares. we are entering the lunch break. we are at session lows. -- takata ceog says he will make every effort to restore trust. they are facing a record fine of up to $200 million in the united states. that is what has happened to the airbag maker. looks to me that everyone was a winter and the sense that almost

everyone saw sales increases. japan boosting the board. saw -- let me get you my numbers. saw a 36% increase in their sales in the united states. from the data i can gather, about half of the revenue service is in kia motors and hyundai motors. retailers, hong kong retail sales, the value for 6%, more than forecast september. that is a whole other conversation. --e of those names

a large network of department stores, parks and retail. -- parkson retail. a drop in or, 81%. back to you. rishaad: thanks david. japanese building subcode tractor -- subcontractor found more falsified data. triggered offhat other projects in by the same supervisor baird and. false data on 19 of 41 investigations. many as 300 construction projects may be involved in this falsified data scandal. the way down,o on

1.3% in advancing markets. cuts, eliminate 15,000 positions, 70% of workforce, move in response to standardings by chartered. 's china rival says it has/subsidies. -- cut subsidies. a rising number of orders means it can reduce payouts. new chinese guidelines ban taxi killing -- hailing mobile apps from gaining market share. cars could also be involved in the emission scandal that only initially involved diesel engines. porsche is halting north

american sales of a model criticized by regulators. which car is this? impact on porsche and audi, it will not damage the reputation. they have competitive products on the gasoline side, so overall we can look at it two ways. a lot of incentives, short-term, and obviously you know sales are down so it's going to be a short-term hit. long-term, deeper implications. rishaad: the scandal broke last month. by the companys down 1%. they were up less than 1%. they were flat.

that was amazing. >> that is counter intuitive. it is very evident that they are offering a lot of discounts and financial deals in the u.s.. discounts are up to $5,000 per vehicle. they're making that up with gasoline and hybrid cars. will likely to get hit because of all this discounting going on. rishaad: the scandal is out in the open. it is very difficult to actually build a brand, image, and very easy to destroy it. what are people saying about the long-term prospects? --the long-term implication what we are seeing on the surface is that the long-term implication is much deeper. you have market share loss,

which you alluded to, that means they have to shift marketing strategy, and that will cost them. -- payll have to port more into research and development so they can quickly develop some other alternative energy technology for all these vehicles. thirdly, if you look at emissions and fuel efficiency standards, the way they measure it as they look at all the cars that have been sold and they come to an average. without diesels, which is feel, thatsing less average will go up, so they will have to change their product mix, and that will impact their operation. rishaad: thank you very much. let's keep the automotive theme going. in the extended session, despite the company missing consensus estimates of adjusted earnings. sent us this from san francisco. tesla reported third-quarter

earnings for the year 2015, and it was a doozy. the company sold more cars than ever before and lost more money than ever before. revenues were $937 million in the quarter. the company selling 11,000 cars. 11,603 cars. that is more than ever before of the model s. very smallis a increase, less than 1% increase, the slowest pace of sales growth the company has seen in at least seven quarters. yet, the court are trumpeting these results. officially, they have narrowed their guidance on how many cars they will make for the year. the company said they would sell 55,000 for the year, then they said it would be between 50000 and 55,000, and then they lower that today by saying we will sell between 50000 and 52,000 cars.

the midpoint of 51,000 cars for the year. that is a good site below what they had initially predicted. production of production changes the stationl x, wagon crossover suv. they showed a fancy picture of a robot starting to work on that vehicle. the is simply of that thing is still not together as they are retooling the plant. gross margins, you would think that in the quarter where they sold the most cars ever, gross margins would be getting better. and lastthis quarter quarter, gross margins getting worse for this company year over year basis, down quite a bit at 25%. that is something tesla will have to take a look at. they are burning through a lot of cash a tesla. rishaad: you can get more on byt story anytime anywhere

downloading the bloomberg plus mobile app. next, seven decades of frosty relations. now china and taiwan set to meet at the highest level. andill head over to taipei find out what is going on over there right after this. ♪

,ishaad: "trending business" japan post holdings have soared on the debut in tokyo. flocking to the $12 billion ipo. the insurance side of the business jumping more than 50%. 18%.olding company jumping the japan post

president, who says it will benefit investors and the wider economy. the think the listing of three japan post group companies will cause a huge impact in the industry and help rejuvenate the entire economy. bean post shares should considered as assets where one can expect a stable return. addressede also speculation as to when he may step down as president. nominatingonsidering my successor from people inside and outside the company. nothing has been decided yet. think i would like to hand over responsibility after the two shareholders meetings in the summer of 2017. rishaad: that was the japan post president. to the stories making headlines around the world.

iran's supreme leader has spoken about the real meaning of the islamic state slogan, death to america. he says it does not refer to killing american people come about destroying u.s. policy and arrogance. he was speaking at the anniversary of the 1979 takeover of the u.s. embassy in toronto thee says that despite nuclear agreement, the united states is not to be trusted. police have arrested an 18-year-old man on -- over an explosion on a boat belonging to the president of the maladies. maldives. explosion was an attempted coup, but the investigation found no evidence. another device was diffused on monday near the president's official residence. latest as taiwan and china

need for the first time since 1949. they will hold talks in singapore on saturday at a gathering of asian countries. a spokesman in taipei says the talks are aimed at strengthening relations across the taiwan straits, but no joint declarations will be signed. rishaad: let's get more on this from bloomberg news. what is the reaction like an tie one at the moment? the markets have been reacting pretty luke warmly at this point. investors so far saying that this is considered to be a symbolic meeting, even though it is very significant. seen eight little bit of action on social media, and also outside the legislature at this point there are members of the opposition party, opposition lawmakers, voicing their concern that perhaps this meeting was

arranged in a less than transparent manner. is anything really expected from this meeting? is it sending all sorts of signals? well, it is the first meeting ince the split occurred 1949, so as you can imagine, seven decades later, the world has pretty much to move forward, but this impasse has existed. the first step towards political talks, and that is the significance there. there won't be any actual economic measures or a chords being signed. those negotiations are done there a separate channel, so this -- these are talks that are political in nature. rishaad: thank you very much. joining us from taipei. and other news we are following, china's leaders say they will accept slower growth over the

next five years, but not too slow. president xi jinping saying growth should be no less than 6.5% to realize its goal of doubling gdp by the end of the decade. china's five-year plan includes the aim of making the currency more convertible. the federal reserve needs to switch its strategies to boost the economy. something which involves buying long-term treasuries and selling short-term notes. he's saying it is not working. he says they should sell longer-term bonds and by shorter-term ones. he says the central bank is creating an asset bubble instead of promoting growth. asntitative easing proceedings movie, but will be reviewed and december -- in december.

those challenges have made it harder for the ecb to meet the inflation target of just under 2%. next, going underground, looking at why india's finance minister once to keep things casual when it comes to the economy. that is when "trending business" returns. ♪

the people who work at the stock exchange in tokyo and join their lunch. a strong gain of 2.4%. of to an post ip off strong start. heading down to sydney, also on a move up. index, the hazy seems

to have lifted there. the market up 1.1%. , pmindex in hong kong index helping things along nicely, improvement there and october from september. nearly 3% up. china stocks helping things along there. that's what we have at the moment. the addictive mobile game candy crush had a good session in the u.s., soaring after activision said they would buy the company for $6 billion. the offer is 20% below the ipo price. we have this report. >> first day of the summit here

and ireland. many people talking about the megadeals from the united states. buying intolizzard mobile, the maker of candy crush saga. many wearing about the price being king digital's initial ipo price in march 2014. the reason for the discount? it hasn't had many other hits apart from candy crush. that franchise is the winning bet. perhaps activision builder -- pleasant -- blizzard can build up more franchises and add users and platforms. many talking about that deal. many also talking about where the money is from europe, the venture capital in europe, are we building enough?

we still seem to be lagging the united states. 4 billion year old's latest -- 4 ros raised last year. perhaps we need to see more success stories than buyouts. many wondering where the next the yen dollar company is going to come from. is it here in dublin or lisbon? where this very summit will be moving next year with its 40,000 delegates and international investors, and innovators and media. the most famous fountain in the world is back after a multimillion dollar makeover. this is the trevi fountain and all of its glory once again, a $2.5 million restoration. waterng a coin in the

ensures that one day you will return to rome. that is it for "trending business". we will be recapping the stories of the day. we have a special guest joining us today. ♪ buddy- nice place, nice car what happened?

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>> from our studios in new york city, this is "charlie rose." charley: we begin talking about journalism and politics and filmmaking. one of the biggest scandals in the history of the catholic church. the boston globe exposed coverups in 2002. the series won the pulitzer prize and led to the disclosure of similar scandals worldwide. it was the work of the investigative unit. here is the trailer for the