again. the yen is at its weakest for 5.5 years. china confirms what everyone has been thinking. the economy will slow further next year. the russian is, will it meet the president -- the question is, i'sl meet president x goals? joining inonesia is on the rally. here is heidi with a look at the markets. heidi: we are looking good so far today. investors in asia are feeling ok about the fed deciding to go ahead with the interest rate hike. talking about the basis points, saying the trajectory will be gradual. as a whole, conditions remain

accommodating. we are seeing strong gains where we were perhaps expecting volatility. we are seeing malaysia. you mentioned jakarta. 1.4%. hong kongns out of markets. the nikkei, building on yesterday's gains. 2.25% midday. sydney stocks holding on, recovery across some of those will names. is oneicular, celtics of the biggest movers. surging as high as 10% earlier. we are seeing weakness across iron ore minors.

i want to look at some of the currencies and focus today. we expected weakness. tantrum, it was the ring get that suffered. -- ringgit that suffered. still one of the worst performers. we are also seeing relative calm when it comes to the ringgit. it has fallen into the red. seeing weakness. not too much to write home about. we are all focusing on the yuan. 4.5 year low. be the 10th day of decline for the chinese currency. a lot of people saying, we would stop seeing the depreciation following the inclusion in the imf ask it. -- basket.

it looks like we are into a longer stretch of decline for the chinese currency. we are seeing that continue. we will be watching that. interesting time to send these u.s.ls, hours after the proved to be first to rate hike in a decade. move from historic the fed. seven days to the day, after rates hit zero. it is an anniversary of sorts. the fed has reacted, announcing what everybody expected. of the response was priced in, but there will be winners and losers out there. we have the nuts and bolts of this decision. usid: it will take time for to see this divide between winners and losers. we heard from the philippines central bank. meeting, a policy thinking that uncertainty is out of the way. outflowsnor expects

from emerging markets to taper off a bit. flexing itsndex, muscles following this move. more pronounced after the boc setting. where are we at this point? two conditions the fed c put out in march. reasonable confidence inflation will inch to 2%. right now, the predictions are 2018. the conditions have been met. they are convinced, the vote was unanimous. listen into janet yellen. ms. yellen: we do not want to cause a recession through that type of dynamic. at some future date. it is prudent to begin early and gradually. also emphasized there was a lag between when the announcement takes place and it

affects the real economy. the longer they wait, just to take you through the 15 year hikes,those are the rate 2006. that is when the crisis happened. and you had the zero interest rate holocene. riskonger they stay, the increases. that could tip the u.s. into a recession. they will be working with their primary dealers. the high and of the range. the amount not put in. that one goes into that one, at least that is the hope. these are the targets. what do you want to watch? these are the things you want to watch. are cominghen they out. eastern time. thursday, just after the lunch

break in the u.s.. early morning in asia. that is when those will be published. these will show you how much demand there is for money with the fed at those rates. whether it works. let's go forward. here we go, the favorite chart. officialsof it, fed predict a slower pace of rate hikes into next year. that is the guidance. these little circles right here, that is the previous projection in september. here is where we are. unanimous. that goes up gradually into next year. in march, 41%ke chance of happening. back to you. we can for the fourth day against the dollar.

the next guest became known as mr. yen. he joins us now from tokyo. appreciate it. a pleasure to have you on the show. fed, thisf the solidifies fed policy. said thisptember, you decision back then, not very strong impact to japan. what about this time? guest: the fed move had been anticipated for weeks. there is no major supplies, you know. the bank of japan would probably move along the lines that they have indicated before. the market -- yvonnne: go ahead.

guest: go ahead. melt -- welcome the move. sorry.: this, you have said before. i apologize. i am asking, if this is central-bank divergence has been a problem. is this more of a hawkish move than we think? this as we head into 2016? especially when we see the boj trying to support growth? guest: yeah. as i said, the move has been anticipated.

moven indicated she would slowly. not changed the course of monetary policy in japan or europe. we will continue to ease monetary policy, particularly in japan. we will have a consumption tax increase. there may be easing of monetary policy. what implications does the have on that? in september, you said the era of the week yen over. what is itst, -- now? guest: it will move in the area of 120-125 for a while.

this anticipated action of the the range to back 120, 125. take a look at your outlook for the economy. avoided a recession. exports to china continuing to fall. inflation, far from 2%. has anything changed your view of the japanese economy? guest: one thing is, the chinese economy. it seems to be weaker than anticipated. china, asxports to you said, declined. the economic relationship is very strong. the weakness in the economy

would affect the japanese economy negatively. is the government going to step in on spending and reforms to boost the economy? do you still think the boj has worked to do? guest: i think the governor is satisfied with the status quo. probably japan would allow 1% next year. all right forbe an economy like japan. all right. i appreciate your time today. apologize for the back-and-forth just now. really appreciate your perspective. thank you so much. joining us from tokyo. let's take a look at some of the other stories we are watching. with the roundup.

: hong kong was the first to react, raising its a suit rate for the first time in nine years. they raised the rate. the economy has weakened with they are awash with record amounts of cash. trade balance fell into the red again last month, reversing a surplus in october as the value of exports exceeded imports. 3.3 percent from the previous year. chipman's to china, the biggest trading partner, fell more than 8%. more than 8%,d falling for the 11th straight month. been negatives for 49 of 57 months.

third avenue received approval to suspend shareholder withdraws $789 million high yield bond fund. this comes after they canceled a controversial plan to freeze assets for a year or more. the sec says they have approved the request by the company will be required to put in investor and market protections. chair, janet yellen, commented on this issue, saying the high yield bond fund was , adding the unusual spreads in high-yield markets have been rising since last year. coming up after a short break, living with lift off. fed decision is

likely to have on emerging markets. ♪

more reaction to our top story, the first rate hike for the fed in almost a decade. let's look at invocations with mark mobius. great to see you. first of all, let's talk about your reaction. we did not see too much move from the emerging markets. asian currency, a little bit of fluctuation. seems like we have avoided the collapse of some were expecting. mark: it has been discounted by the markets. a emerging markets have not been performing well in the last two years. the of this was because of

expectation of great buys in the u.s.. the uncertainty for the longer markets. the next question is, when is the next rise coming? that is going to be the focus, going forward. i think we have to put this in context. interest rates in some of these markets are very high. i'm speaking from jakarta, indonesia. interest rates here are 15%. u.s. rate isthe not going to have much impact here. the government has programs to lower interest rates aggressively going forward. it depends on the individual country you are talking about. yvonne: you are looking to to emergingosure markets. what are you seeing beyond the recent market volatility, that some do not see right now? mark: one of the key points is

the fact that many of these and emerging markets have had a nose dive. they have come down dramatically. there are undervalued. be --inese run them remnibi is 7% undervalued. the hong kong dollar is in line. the indian currency, undervalued by 3% or 4%. isindonesia, the currency about 25% undervalued. you are going to have tremendous opportunities for a recovery in these countries going forward. that is something we have to look at. markets,ith emerging it is very idiosyncratic. there is instability. commodity pursues her's -- producers. will we reach a bottom next year?

mark: we have already reached bottom in these markets. some markets, like india, have done reasonably well. there are those that are growing at a fast pace. bangladesh is growing at a fast pace and celebrating their development. reformsa, some of the have resulted in growth. if you look at all emerging markets, they are growing at double the rate as other countries. that eventually has to show in the markets and currencies. yvonne: what is your forecast for china? there is continued weakness. expecting 6.6% growth for the next couple of years? chinese stocks, things have stabilized a bit. do you see upside in 2016 for

the a shares? mark: not yet. the problem in china is the fact it is not a completely open market. if they open that asia market we have some of the a share programs. it is not completely free. there is a better chance for the market to recover if that happens. they will be moving towards more and more openness. get the currency price in order, they will be more free to open up the markets. see this market as some are predicting? mark: do you see that again -- what was that again? market thatow bull

some are predicting. mark: next year, the market moves up. no genetic movement one way or another. you are going to have to tread very carefully and pick stocks, rather than look at the whole market. mark mobius, i appreciate your insight can we thank you for joining us on the phone from jakarta. shery has been monitoring the reaction on social media. shery: taking to social media, trying to understand what the rate hike means. an economics professor at the university of michigan tweeting, let me rewrite the headlines for you. fed shifts to a policy that is ive, but a tiny bit less so.

someone else saying, getting off the ground should not be equated with tightening. management firm pimco, asking, will the longest ever time without a rate hike be followed by the slowest hike cycle ever? you can read their thoughts. at the economist intelligence unit commenting on the fed chair herself. saying yellen, took the role in january, 2014 can it only became her fed today. her legacy starts here. seems a little nervous. that is what people are saying on social media. yvonne: thank you. next, predicting the future with some of the brightest minds in asia. we will ask them for their take on what to watch in 2016. ♪

yvonne: as we count down to 2016, we asked some leaders what they will be looking for in the new year. here's what they have to say. some people will be looking at the commodity and energy sector and see if we will see a rebalancing recovery. eating their early rather than late. resolution of the u.s. political environment, who becomes president. of the united states economy and political environment, over the next four years. the other big piece, which i think market participants will be focused on, is china. how will china navigate its transition economically? >> the biggest issue will be the

vulnerability of europe. the weakness of the transatlantic relationship. to leadership.s transatlantic leadership has been the bedrock on which you have had the u.s. led leadership. europe is recovering, not as quick as someone like. law,rms of rule of technology and science. investments, europe -- yvonne: up next, still shorting to read why investors and analysts are betting on different outcomes in macau. ♪

yvonne: top stories trending this hour. asian stocks are joining the wall street rally. stock volatility vanishing after the well telegraphed decision to raise rights -- freights signals confidence in the biggest economy in the world. the dollar climbed on the back of the fed decision, finding strength after initial fluctuations. it is stronger against the yen, ussie, andd kiwi -- a

kiwi. the trade balance returned a deficit in november with shipments to japan plunging 8%. negativeas the 49th reading in the 57 months since the fukushima disaster sought energy costs soar. economists see enough positive signs to bet against further easing at the boj meeting. good-looking markets. haidi: indeed. of thet for some potentially negative market signals we have had so far to day. singapore, missing the mark. in a big way. -- yuan wegetting

getting. every gains coming out of market. the philippines coming online, up by 1.9%. strong rallies in tokyo. 2.3%. building on yesterday's rally. shanghai, extending gains despite the weakening of the yuan. strong gains coming out of southeast asia. emerging market economies that were expected to see volatility. if the taper tantrum were anything to go by, we were expecting downside pressure for the likes of indonesia and malaysia. tumbling.d oil prices even that has not deterred the gains we are seeing across the region. energy, surging ahead in ssie session.

metals, in particular. evolutions like mining, rallying. lver,and seller -- si coming off of lows after janet yellen spoke. we do see the weakening continuing. we did expect stability after getting included. this appears to be the path we are on. the ringgit has been the worst performer so far. it was expected to tumble on the back of the fed decision to tighten. we have not seen much of a move down. just 0.1%. i want to bring up oil. it took such a tumble. let me bring up the two day chart for you. ti, trading at

$35. we had it tumble overnight. saying janet yellen lower oil prices are transitory, the market is focusing on the supply side issue. calm state ofa play when it comes to asian markets. yvonne: more now on the of for china after the fed finally moves. this pretty much confirmed everything we have been talking about. has room to cut interest rates. they have had a interest rates in the last year. the stabilization of the growth seems to be there. rates, the benchmark interest rate, is at eight record low but it still has room to go. most economists expect perhaps

further cuts in the first quarter. obviously, it seems, with the rate hike in the u.s. and the outflows from china, the higher dollar, it seems like the authorities in majoring -- beijing are encouraging or accepting a weaker pace for the yuan. a just saw the yuan touching number where it has not been as week against the dollar since 2011. the path has been moving in that direction. they have stress tested this before. -- redone basket the basket to be less dependent on the u.s. dollar peg. how does the structurally loose monetary policy, how does it affect other

predictions? stephen: we are talking about the chinese economy of social sciences which predicted this structural and loose monetary policy. more flexibility in the one. -- yuan. gdp growth can be achieved no less than 6.5%. that would be slowing but expected. there is the structurally loose policy. will be aurprisingly growth stabilizer. they also expect a slow bull market. 12%, 13%, 14% upside by the end of the year. slow bull. yvonne: is that like a cow? i don't know. the liftoff is finally here.

the focus has to to the pacing and timing. guidance from the central bank is likely to leave uncertainty. thing is how -- markets are expecting rate increases, but there is uncertainty about how much. if you look at the projections, the individual projections, they 2%.e for more than that is a wide range. if it is closer to 2%, it could be more of a medic for emerging markets. yvonne: we also spoke to new , billd's finance minister english. he says this is a positive sign for his economy. >> it is a good sign for our economy. it is a sign of u.s. strength.

we might get more of this exchange rate realignment. the kiwi dollar is a little weaker against the u.s. and the u.s. economy. that is possible, over the next year or two. growth prospects are good. the chief economist at -- says the fed is being too optimistic. >> we think they are too optimistic. we think inflation is going to be gradual. three rateok for hikes next year. maybe only two. we ended the year at 1% or maybe .75%.you .75 -- 0 is a little plot optimistic. aig buying back more

shares. the insurer has been under pressure to boost returns. the move list the amount aig is authorized to buy back to $4.3 billion. wiped $100has billion off of the columbia refinery. it has lost 90% of its value. dropped as output missed forecasts. shares have also taken a fall, tumbling 40% over the past year. stevens be alert -- steven spielberg has found a way to continue to produce pictures he would like to make. he has raised $800 million for a new reduction operation. readoduction operation to it will create movies, tv shows, and digital programming under the amblin, dreamworks, and

participant brand. investigators -- investors are placing bets against macau. a senior analyst. what is going on? >> it does seem like a disconnect if you think about the surface. bloomberg news colleagues have put out an interesting story. if you think about it, it makes total sense. stocks, under pressure, and they did come under pressure novemberr the revenue numbers came out. they were a little bit of a mess. increase,ortselling it is natural. there is a negative that and it. are pressing analyst recommendations do not change that much. over time, those are a little glacial. this bread increases that shows,

there is a great buy. it is not like they have raised price targets. those are likely to come down until there is a firm bottom in place. it is more of a market phenomenon. it is not the case in all of the macau stocks. some have relatively limited to short interest. others, like mgm china, built pretty high. yvonne: remind us how bad business and stocks were this year. where do we see valuations now? it is time to take that step back. if you think about 2015, 2014, two years of terrible business. revenues down 50% from peak. stocks down 70% from peak. if you look at this chart, showing valuation, we see on the 9.5t hand side, at about

times, we are getting close to 2011.ws we saw in 2010, we are seeing those low valuations on estimates that have been slashed. we see valuations come down because stocks come down. we have had the denominator come down a time. it is pronounced how low the valuations have become which is very interesting. yvonne: what is this mean? are we going to see the bottom? >> on lowered estimates, if we see a turn in the business, it could be interesting in 2016. the way we have thought about 2016, our outlook is of mass differentiation. we are talking about those companies that have got new resorts. a mass-market bias in their

business. combine those three elements. that is where the attraction is going to be. where the visitors are flowing. where the clustering effect is likely to happen. we think we are going to see last market stabilization. impacting companies that are positioned accordingly, more so than other operators. quite often, the group trades like a herd. rd diverges inear 2016. if we did about positioning, melco is there. ai with a on codt new resort. interesting, later when they open. mass-marketlk about

without talking about sam's china. it is disappointing parisian has been pushed out. interesting year. to pick and choose. thank you for joining us from bloomberg intelligence. coming up next, you can see star wars and brands everywhere. the dark side of a blockbuster. when trending business continues. stay with us. ♪

stories making headlines around the world. a major cleanup sydney after a severe storm brought the most instructive wins ever recorded. gusts up to 200 kilometers an hour left 20,000 homes without power. he'll stones added to the damage.

there are no reports of serious injury. supreme court has suspended the registration of new diesel vehicles in new delhi. makert the biggest suv tumbling more than 5% every last week, another court band registration of new diesels until january. blatter faces and ethics panel. investigators have called for life bands for the pair, who deny wrongdoing. three brazilian legends have called for the second of their football chief rick they criticized corruption in the brazilian game. all signs point to the force being with disney for the

latest installment of the star wars franchise. the $2.8ected to break billion record set by avatar in 2009. the film has opened in several asian centers including hong kong. paul allen was in sydney to gauge the audience reaction. the force has awoken in one of the first countries in the world where the new film has opened to the public. nothing like a star wars film. that is officially true for the latest installments of the franchise. it reunites the heroes from the original trilogy for the first time in 32 years. this greening just ended. the question is, what do the fans think? box they did -- >> they did such a good job. everything was awesome. >> it was amazing. i could not rave about it more. i'm looking forward to the next one. >> i have been waiting years for

this. paul: there are 7000 sessions scheduled in the opening week. in original film come in -- 1977 was screened at just a few dozen theaters in the u.s.. disney bought star wars from george lucas, some question there wisdom. however, after the hype relentlessly builds, it is starting to look like a bargain. as the new movie and merchandise are rolled out, is the saturation marketing a case of force feeding? lucien, great to have you on this "force awakens" day.

talk about the range of merchandise we are seeing. becausefruit, even medics. are we being force fed? disney seems to have engaged this exactly right. slightly overthey and it -- underestimated the market. to have gauged it exactly right with star wars. good and willem only add to that demand. 2015, i saw estimates. $3 billion in merchandise alone. it is not just about the film, it is about the merchandise. to $5that will increase billion or $6 billion. thene: they have to recoup $4 billion investment. everybodyremember,

thought it was overpriced. today, it looks like a bargain. yvonne: everyone used to look for the princess elsa costume. when you pair the brand with crazy products, is it effective? duct tape with darth vader? lucien: the answer is yes because people will not pay the money unless they see value. star wars is a rare property that appeals to every single demo. tape ifl buy more duct there's a darth vader. my favorite was coffee creamer. darkside, light side. yvonne: you mentioned that the strategy, it doesn't work for every brand. what makes this brand so special ? you can put it on any product and get a good response? huge cultural

roots that have been with us for 40 years. fathers take their sons. episodes 1, 2, 3. 10 years ago, the reaction was underwhelming. that culturalnow, affinity is coming back very strong. it is one of those rare properties that appeals to boys, girls. it is interesting some of the merchandise we are seeing is designed just to appeal to girls. it has that a worldwide appeal to a lot of demographics. about: you talked "frozen" being one of them. "toy story" as well. any other brand with those kinds of responses? lucien: there are some films. people talk about film franchises. "the hunger games" for example. a film franchise has a limited window. harry potter.

most of your revenue is gone. with "star wars" disney is talking about 12 films. you have that kind of horizon to the merchandise associated with that. making it a hugely profitable franchise. yvonne: the timing, we are headed to december. traveling for the holidays. to comment as a barrier for disney as they recoup some of this investment? lucien: it was rare that the merchandising push started sometime before the film was released. lego was one of the top sellers. i think they are taking that into account. people could buy the toys for christmas. appreciate your insight. thank you for joining us.

lucien: thank you and may the force be with you. yvonne: you are watching "trending business." ♪

we are coming down to the opening of the mumbai session. 50 minutes away. india has taken drastic measures to curb air pollution. sunanda? sunanda: the supreme court ban on thetemporary sale and registration of large diesel cars in new delhi to smog. toxic prompting concerns. they may consider and reconsider the investment plans for the country.

the registration of sport vehicles and other diesel cars capacity of a certain amount is being banned. delhi's crackdown on settling carmakers. derail acould tentative recovery as far as sales go. as was leaving dealers with unsold cars. that will be worst hit has a portfolio of suvs. thea series of tweets, chairman and managing director of the group saying, he is not concerned about the impact. we learned exclusively, they are putting in place a plan b where they will look at more products going forward instead of a diesel project. yvonne: thank you. that is it for "trending

business." stay tuned for "asia edge" and the big stories of the day. we will hear the views of a gloom and doom publisher. "asia edge" next. ♪ . ♪

>> from our studios in new york city, this is "charlie rose." charlie: he plays a transgender woman on the amazon show, "transparent." the new york times calls his performance a revelation. it has won him numerous awards, including a golden globe. there is some stuff in he previously starred in "arrested development." i i'm pleased to have him.