investors. hunting found, malaysia the owners of three abandoned jumbo jets. they reserve the right to sell them if they are not collected in 14 days. it is a public holiday in indonesia. commodities reverberating across exchanges in the asia-pacific. downturn we have an commodities across the board playing into markets. and gas sector slightly higher on the regional benchmark index, led by a rebound in some companies hit hard. weakness coming through in shanghai. deflationary pressures , downuing, cpi out today

by 2.1%. hang saying down by 7/10 of 1%. the nikkei 225 continuing to weaken today, down another 1%. similar to what we saw yesterday despite encouraging machine orders. positive and negative territory, flat there, pick up in new zealand and the philippines. of theto show you some big movers, particularly china. orphave seen metallurgical c of china has dropped as much as 14% this morning. set for its lows close in five months, that as it became a listed unit. a down 7%.

is one of those that debuted on the market today, hitting its limit of 44%. that's after the five-month trading halt was lifted. the reference right to the weakest level since 2011. rishaad: i look at inflation -- a look at inflation, consumer price data coming out, does signal that demand is the mining -- stabilizing. demand may be stabilizing on

the data we got out the last hour after a year of six interest-rate cuts and stimulus, cpi it rising more than forecast. is about half the governments targeted pays for the year, so there may be more room for authorities to loosen monetary policy further without stoking bubbles. the further decline in imports we got yesterday do signal some stimulation in the man. the worry continues to be prices at the factory gates, producer 45ce index in deflation for consecutive months. staying firm for the last couple of months. was for asus estimate fall in prices of 6% to factory gate prices have not seen

inflationary pressure since january of 2012. heavy industry is settled with excess capacity, demand is waning. , and improving picture on the inflationary front, firming, showing better demand in the economy. rishaad: a more detailed look at that story later on in the program. we want your opinion. do tweet us. yahoo! is having a time of it. it was on a tear after hours, the company planning to scrap its long planned spinoff of alibaba. it is a u-turn and admission of defeat -- admission of defeat live marissa mayer as the board met last week to consider options after mounting pressure from investors. dtar board saying it is tire

waiting for a turnaround and is threatening a proxy fight. they say yahoo! will now consider a deal for web businesses and spinning off a stake in yahoo japan. it turns yahoo! into a little more than a shell. alibaba may be the safer route ahead. press not been able to ahead with the $31 billion spinoff and make it tax-free. going forward with the spinoff would risk a $12 billion tax bill. who would buy yahoo! with a shrinking business? couldts say yahoo! interest cable firms are telecom providers. aol,on, which snapped up said it would consider yahoo!. ,ome chinese buyers as well tencent or baidu.

up 3% on the news. alibaba also up in after hours trading. rishaad: a look at some of the other stories. your starting off with a look at a possible megamerger. dupont bothcal and searching after hours on reports they are in advanced talks to merge. the deal could be announced as early as this week. merger, the company would break into two or three businesses because of regulatory and other issues. dow chemical that gave the world siliconagent orange, breast implants, and has a market cap of $59 billion. the combination would create the biggest seed and pesticide company, and the world's second-biggest chemical company. sources say there is no

guarantee a deal with get done, and talks could still fall apart. china has widened the overhaul of its state sector, the biggest metal trader has agreed to buy a government owned engineering and mining group, combining with $96 billion in sales. the metallurgical group will be mid-metals as a wholly-owned subsidiaries. , which has aof mmg zinc and copper mines in australia, and a copper project in peru that it are acquired from glencore. it comes as china's metals industries are being hammered by slowdowns. it has been targeted for reforms that would boost efficiency. pledged tont accelerate reform of soes.

bank has raised $7 billion, selling 70% of stock, investors including ubs. it comes ahead of a planned ipo. postal savings bank is an arm a state owned china post and has the most branches of any lender in the nation. a time when chinese banks are feeling the squeeze of shrinking profit margins and rising defaults. back to you. rishaad: were looking at how australia's property boom is leaving melbourne a wash with antique homes. hour, thelater this best-performing i.t. stock has a lesson for companies in india, avoid working with the government.

a look at the credit crisis facing the chinese banks. that is when "trending business" returns. ♪

rishaad: chinese banks under pressure dealing with mounting bad loans. .ncreasingly looking overseas let's get more on the state of these chinese lenders. what is your take on all this? is this a red herring? >> it is not a red herring. we have a systemic credit crisis in china. we are not even halfway through. the economy is cooling off just enough to make it hard for the

banks to get this turning in the right direction. rishaad: what do they do? >> the problem you have in china also is when is a loan bad? rishaad: exactly. when is a bad loan a bad loan? where do you put it on your balance sheet? >> the problem if you are a domestic banker in china, you've got to make sure the credit quality is under control. think we are underreporting, but you can't estimate it from afar. you've got to write off loans. i tink it will be a two-your process. rishaad: ok. is this also a structural issue? >> in some way it is. it is not a free economy. all the inefficiencies you had

will come to bear and china over the next 10 years. i think we have a long-term problem here. my glasses are not rose tinted. rishaad: they certainly art. >> can the chinese banks are for the bad loans? the funny answer is, yes, they can. especially the big four banks that are owned by the government. they have trillions of u.s. dollars in foreign exchange reserves and the full support of the central government behind them. other large banks don't have this. it is a priority to keep stability in the banking sector, and i think as a result we will not see those bank get into any trouble. it may be something different at the lower end of the scale. at the upper end, pretty safe. rishaad: you look at the basic numbers, return on equity, the dividend yields even, they

are gigantic. >> would you rather own european banks or ccb? rishaad: that's your top pick, isn't it? >> capital is king in banking right now, and since the global financial crisis. highest capital ratio of any globally systemic bank, and by far the highest in asia. the roe is 19%. they have the capital to deal with the bad loans, the capital to pay back dividends, pretty sweet. rishaad: it is. again, are you 100% ok with the balance sheet? >> i get that a lot from fund managers, and i think it is a question of, are you aware of what -- how the credit cycle

really works for banks globally? of course, you're always going to have a credit crunch at some point. and finally china has its credit crunch. the chinese economy is weak. end, alls come to an the good things, all the bad things. the patient for a number of years. if you're running a pension fund , you have to own ccb, because you will get yield. a tension fund needs stability on the price and yield. icbc are the best. rishaad: falling interest rates, how does that play out with the big four? >> three or four years ago, the earning growth from chinese banks was 30%, completely unsustainable. right now it is 0%. year, there's a chance in

the fourth quarter that we might get a slight negative earnings growth for the sector. , while you have no earnings growth that will continue for a number of years, you will still have earnings per you will not have losses. as long as you have earnings, the book value increases and the price to book value is going to get lower and lower and lower. morentry point gets attractive. as long as equity is increasing, capital, that gives you protection to do with future problems. rishaad: we have lots more to talk about. will do that in the next break. stick around. jim will be back right after this very short break. this is "trending business". ♪

>> the white house says donald trump has disqualified himself from the presidency with his call for a ban on muslims. barred asey should be immigrants and tourists. trump is refusing to back away from his comments despite condemnation from republican

leaders, rival candidates, leaders, the british prime minister, and the yuan secretary general. party held its annual meeting in kuala lumpur. more than $600 million in his , he insists account it comes from middle eastern donors. faces growingster criticism as the economy slows, the weakest in two years. the ringgit is asia's worst-performing currency. itvy small continues to link the city, cold weather adding to the problem. unintended had the effect of boosting demand for cars. sales rose 18% last month, topping 2 million, the fastest increase since february. the government has imposed restrictions on car use in

beijing, trying to bring smog levels down. rishaad: let's have a look at what is going on with corruption in china, investigations at these banks taking place. >> there is a bloomberg article icbcmorning that staff at are being investigated for corruption. the thin end of the wedge. ? about 15,000 staff. rishaad: is it the tip of the iceberg? >> it could well be. my question is what are the level of these people? are they senior executives, branch managers? if that is the case, there is a serious problem.

it's a problem that any mega-scale bank is going to have. control is not wide enough to manage 15,000 people. rishaad: how do you keep operational control over everything? up in the boss of a bank be on top of everything? >> you can't you have to delegate authority to the regions. they have a lot of pressures from their local customers, from the top -- you have to perform. this opens the door to temptation, and especially in an emerging market like china, especially when the economy is starting to flag, those temptations come to the fore. i am a bar, i have a company, i need alone, but i don't qualify, corruption. that is the end result. rishaad: corruption is one thing, fraud is another.

signatures need to to commit fraud to embezzle money for commercial banks. to some extent, that could also be happening in a mainland bank. rishaad: these are all scandals, and we have had a litany of scandals out of the world of finance. is of the banks right there based in london, but has a huge business here in hong kong. >> yes. i guess that is hpc. bc.s never -- h it is never ending, to take the truth. we've had a one off item every single year, usually every six months. it has become a regular thing. it's out of control. back to were going t

that, aren't we? they are very high up in the food chain. do you think we are over it now? >> no, absolutely not. rishaad: we don't know that, do we? >> we don't. investors are not convinced that we are over, and analysts aren't either. >> you have an underperform on it, haven't you? >> for quite a long time. rishaad: we have 16 analysts with by recommendations. >> it is true that every major pension fund, for instance, if they have a financials poor -- portfolio, they all own hsbc. calling a state a state. the real problem i have is that i have been right for sarong,

the share price is going nowhere but down for five years. rishaad: what needs to be done? is there a vision there? >> i don't think so. -- launched the restructuring program that seem to meet business five years ago, but without results. rishaad: what needs to happen in your view in terms of management? the chairman has been there since 2006? >> something like that. he is a long-term and long serving employee of the bank. it could be that there is time for a change of management. who to get would be difficult to sacred this is a very large bank. it's not the same case for standard chartered. it's not impossible to do. 0 big?: is hsbc two

>> yeah. they don't want to use global bank, but they are in every market. the blind spot for them on strategy is they still think that they have to be in every local market. they still believe in the universal banking market the as been discredited or the last five years. question, latin american, why not dispose of the whole thing? it is an attractive franchise for somebody? rishaad: you are retiring. have a fabulous retirement. ♪ sure, tv has evolved over the years.

it's gotten squarer. brighter. bigger. it's gotten thinner. even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. tand that's what we're doings to chat xfinity.rself, we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment,

we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. rishaad: a look at our top stories. stabilization in china with consumer inflation rising. cpi in november of 1.5% from one year ago, the producer price index fell 5.9%, slowing ,nflation, interest-rate cuts and expanded government stimulus as well. concerned says yahoo!

will scrap the spinoff and all obama and instead consider a bid for its web distance -- is this and sell off a stake in yahoo japan. marissa mayer has been under pressure from investors tired of waiting for the turnaround. familiar say the deal could be announced in the next few days between dow and upon, leading to a breakup of the combined company. stronger than expected machine orders not exciting japanese investors. a strong interest in ipo's though. ipo's listed those on the asian market china today hitting that 44% limit. it has been another down day in the region. the shanghai composite down to

10 sub 1%. the cbi and cpi numbers weighing on investor sentiment as well. the hong kong sentiment is down by half of 1% for the moment, although there is a pickup. south korea pretty flat for the moment. it had a solid start, but looking flat now. the nikkei extending as well, going into the lunch break, down by 1% despite positive data there. machine orders for october well beating estimates, 10.7% gains versus 1.5% fall estimates. philippines come and new zealand -- philippines and new zealand. just want to show you some of the movers we are watching in the region. has fallen to its

lowest level since march 2009. these falling commodity prices really weighing in on the miners. rio tinto ceo thinks the iron ore price will rebound. the oil price certainly has been helping the airlines, cathay pacific with another solid session in hong kong today. , one of thoseurer ipos listing today hitting the order percent limit. a littleore renminbi weaker against the dollar. the onshore yuan has been cut today. since 2011.l rishaad: consumer prices increasing slightly, a fraction more than expected, a sign that

demand may be stabilizing. takeaway on these numbers? >> the glass half-full or an aerial, stabilization. economists had expected a weaker number. we are up from where we were a month earlier, so there is stabilization. we also have that slightly lower decline in imports yesterday. both of those taken together should say domestic demand is stabilizing. rishaad: you could argue that domestic demand is all right. if you look at the commodities complex and how far it has gone down, that leaves you in a where actually this was pretty healthy, that import number. if you look at it from the other side, by and terms is probably what we should look at as well. that is the other aspect. consumer price

inflation, if you look at services, up 2.1%, a pretty good pace of growth. anvices continued to be outperform story in china. on the ppi level, these declines are concentrated around mining, oil, those industries we know are in trouble. on the consumer level, some of those import prices not too bad. some import prices show prices at the factory gate level are flat. that's of initially showing little inventory and a lack of excess capacity. core cpi, tell me about that. look at stripping out some of these things, the consumer demand picture is looking firmer. governore central bank in china, you still have plenty of room to cut. the government is looking for 3% cpi inflation, that's the

target, so you're coming in at about half that, so plenty of room to do more if you want to. &z to expect rrr cuts to give banks more money to lend. it's the dollar strength as well, perhaps responsible, too. >> that's true. sign ofing a slight accommodation here ahead of the fed meeting, which may suggest a slight change in policy regarding the yuan. just got to get you up to speed. rishaad: myanmar taking another step into the all more -- in the formal opening of its markets. trading begins next year. six companies given approval to list, but have not been named.

it's unclear whether the exchange will be open to foreign investors. mining and construction 2016 tot maker expect be a tough year, shares under pressure, closing up the morning session down, 1.2%, lower demand due to the commodity slump and sees no uptick in china. a 19% drop in second-quarter profit. recovery next year is unlikely. cutting its forecast by $1 billion. deutsche bank japanese arm facing a second punishment in two years. analysts received information about a trade before they were announced and managed to share the details with the client. they haven't specified what the penalty should be. you over to these live images out of beijing.

these are shots from a camera square, anmen blanket of choking smog at the the chineseloping capital. the u.s. embassy air quality index suggests 260 at the moment. it means that it is very unhealthy and undermines the scale of the problem facing china. have a look at this. ♪

rishaad: absolutely, red alert remaining in place due to heavy smog. we are in beijing. what is it like when you go outside? what is the government doing to tackle this? that the hair outside is rather unpleasant. you can smell the pollution in .he air as you walk around

it creates a lot of problems, especially for sensitive populations, including young and elderly, and the governments red alert has basically closed down elementary and primary schools and asking everybody to stay indoors and limit out your activities. there are various actions the government tries to utilize to address the pollution. when it gets bad, they restrict the number of cars on the road, close schools, announce unplanned holidays for state owned enterprises to encourage people to limit their driving an activity outdoors. they will spray water on the streets to keep dust down, and more drastic measures. for instance, last year for aipac, they implemented across the board shut down for coal powered plants and various heavy

factories for region surrounding beijing, not just beijing, but also provinces as well. rishaad: where it's cold, this problem gets worse when it is winter. it's not just beijing, right? >> right. profileis the most high one, being the capital of the country, and it tends to have on record the worst air pollution days. in the south, you do see severe citieslution in other and major metropolitan areas, although the causes besides coal burning factories and power lowts, often times from the quality fuel used in passenger vehicles.

i think particularly we have heard in the news that there is severe pollution emerging in the northeast. coal of that comes from burning by power plants for heating during the winter as well as some industrial activities. rishaad: thank you very much indeed for that. tale of the forgotten jets. we look at some of the rather bulky lost property taking a viable real estate and kuala lumpur airport. ♪

>> welcome back. hassuspended football boss taken his case to the court of

arbitration for sports, hoping to have his 90-day ban set aside. he said he was barred from all activity due to a multimillion dollar payment, but both men deny wrongdoing and say they had a verbal agreement. a south african court has granted bail to oscar pistorius against his murder conviction. bond of 680 five dollars, which is all he says he can afford. the 29-year-old will remain under house arrest at his uncle's home. he shot and killed his girlfriend on valentine's day 2013, the so-called blade runner to appeal totends overturn the murder conviction impose last week. indonesia votes today for regional and local leaders who

together will control more than a third of the national budget. the results will have significant implications for the reform plans.his elections are being held for a non-provisional governor, 36 city mayors, and district heads as well. regional governments have substantial power over spending and land ferments in indonesia's decentralized democracy. permits in indonesia's decentralized democracy. rishaad: thank you for coming in. give us an idea of what is at stake here. stake,e's plenty at local leaders are important in indonesia's decentralized system. they issue permits and get a big chunk of the budget did the permits are needed by investors to use land and operate.

they can make a huge difference locally. of example, the mayor indonesia's second-biggest city is up for reelection today. difference, a huge created parks, government services online, the bureaucracy is functioning, and she is actually attracting is is is. on the local and national level that makes a difference and has implications for the president's reform agenda. these local leaders to get things done, particularly for infrastructure. they are relying on infrastructure to drive the economy next year. spending this year has been slower than expected because of electioneering ahead of these polls, people focusing on the campaign rather than getting things done. the hope is once the polls are over, leaders will start delivering for their people and getting some infrastructure projects finished. what is this all saying

about indonesia's democracy? step forward.er indonesia has only been democratic for about 16 years. the first direct elections for leaders was only in 2004. that said, plenty of challenges, asia foundation, an ngo that monitors elections here, says the quality of candidates is not , andhigh, not enough women even says some people who had previously been convicted for graft a running again. even some dummy candidates, people in power who maybe got their friends to stand against them so they get a clear run. it's positive that we have another set of elections, clearly still a long way to go in terms of having quality representation for the people. will find out the results

starting tomorrow into next week. rishaad: thank you. had a rathere unusual advertisement in a malaysian newspaper, appealing for the owner of three abandoned jumbo jets to come forward. sitting idle been on the tarmac for more than a year at kuala lumpur is airport. background? >> they have been sitting abandoned for more than a year. nobody knew who they belong to. it to the airport operators some time to figure out that these planes are just sitting there. rishaad: ratcheting up parking fees and other fees as they are lying there doing nothing. attention paid lately to aviation safety and asia, this is a security risk, right? who knows what they could have been used for. >> why would a company leave

these behind? >> nobody really knows what the reasons were. there are a few factors that play. these jets are not worth so much anymore. a new 747 cost $380 million. these jets went out of production 25 years ago. they now sell for about $30 million. older versions could be 1/10 of that. as worth as much to abandon them as sell them. rishaad: doing know anything about the owners? and the icelandic person at least some of these planes to malaysia airlines. that contract expired five years ago. it's not known what has been happening since then. you have to wonder.

given the air cargo market, suffering as china's economy slows, is it worth it for any new owner to try to use these planes? rishaad: yuan are they better off being -- are they better off being scrapped? >> they will probably end up a scrap -- induct as scrap. world's best performing tech stocks secret to success. that is coming up when "trending business" continues. ♪

rishaad: let's have a look at headlines. isestors in bill gross funded with a drew $74 million, the largest monthly outflow since he took over.

assets fall to $1.3 billion. they beat 56% of its peers. versions and monetary policy driving japanese investors to move money abroad. the shifting their money for the fastest freight in three years. they bought more foreign debt than in all of 2014. this is the spread between bondsse and u.s. two-year the most in three years. raise up to $4.7 billion in the private share placement, china's biggest developer or use the funds to repay loans and invest in new property. to agains are resumed trading today since being suspended on the 19th of november.

indian technology company finding success by avoiding the government and government projects that many might assume could be quite lucrative. that's get over to mumbai. who is this company and why do they have this policy? is an i.t. technologies company, one of the bigger midcap companies, the biggest advance globally by an information technology globally since march. we seeing other companies gain almost 22% on year-two-year basis. it ceo saying the company has onrted to stop focusing programs that don't pay and shift to global markets, which has helped margins improved dramatically. the only company that has the large cap i.t. bellwether has

said it has not made any profits on government projects because of red tape and other issues. delayed payments, changes and projects, requirements midstream, the chairman said need to have clauses to ensure participation from indian players and make companies like digital india successful. not allocating enough time to define requirements, and in some cases corruption. i.t. companies across the board revenues 90% of total outside india due to attractive pricing. if something is not done about government projects, it seems like that issue is unlikely to change. rishaad: thank you.

that is it for "trending business". ♪

>> from our studios in new york city, this is charlie rose. charlie: george osborne is here. he is britain's chancellor of the exchequer. the house of commons authorized airstrikes in syria. president obama addressed the nation after the attack in san bernardino. the president said he would draw on american power to combat isis. europe is facing threats. authorities are trying to increase security