loss with thousands of jobs being cut. assets will be sold. for the economy with flexible and forceful policies and help for homebuyers. hard to swallow. sees a big fall in tokyo. trading in indonesia is getting underway. david: look at your screen's is happening in the markets right now. jakarta is just opening up. the action is not in the equity markets.

we are up, is it strengthening? the rupee is getting stronger. in indonesia. the japanese cabinet just released their economic forecasts. or targets. whatever you want to call it. real gdp growth 1.7% for japan. nominal gdp growth 3.1%. that is a two day look at the nikkei. the assumption is that the yen will be at 122 and change. inflation will be at 1.2%, they project.

second straight day that the pboc strengthened. is probably them discouraging more speculation. path of least resistance for the dollar exchange rate. look at the outlook for both fiscal and monetary policy it seems to be more growth. in most cases this will lead to a weaker exchange rate. let's look at crude oil prices. we are back above 36 for new york crude. look at the airlines. we had the bloomberg asia airlines index. 172 .74 is the number.

yvonne: let's head back to china now. the elite decision-makers are wrapping up their annual planning session in beijing. they are trying to encourage investors at home and abroad. zeb: this central economic work conference is wrapping up. giving us some clues about the headline agenda items going into 2016 for the chinese communist party and its management of the economy. willeople's bank of china show that monetary policy is flexible and fiscal policy is forceful. interesting to see them use that kind of language. basic monetary conditions will

allow for structural reforms they say. they are trying to support rural homebuyers. many people who live in inner china who need help. also seeking to promote entrepreneurship. a major headline initiative of the president. see a more innovative, technology driven country. one that harnesses the creativity of young people. has technology firms that rival silicon valley. time in a lot of seattle and in silicon valley during his recent trip to the united states. many getting risks is a big piece of this. is something that investors will be watching very closely. the case for additional stimulus

intensifying in the wake of the market rout. certainly the volatility that we see increasing with the yuan has a place a bigger role in international markets. yvonne: we'll take a more detailed look at that story later in the show. juliet: toshiba shares are falling for a second session and i have plunged in new york after they forecast a huge loss. 8% after a near 10% fall in tokyo on monday. around $9y has lost billion. almost half its market value.

record loss is more than double toshiba's total net income for the previous two decades. outlined further job cuts and plans to sell assets as it tries to recover from this long-running accounting scandal. the company is also selling off more businesses to raise capital. such as the medical equipment unit. south korea may be about to see its biggest ipo in recent memory. group is seeking to sell a stake for almost $6 billion. times its entire 2014 profits.

hotelparison, a similar times 20144 earnings. the last time a korean ipo in 2010 this level was was when samsung life insurance raised billions of dollars. another stock under pressure in tokyo is mcdonald's japan. its parent company may sell a stake in the japanese unit. it had been down as much as 7.8%. is reportingws that mcdonald's is looking to upload as much as 33% of its stake in mcdonald's japan. it seeks to gain a hundred billion yen. shares in the japanese unit of the fast food chain have

underperformed the broader market this year. they are just 3% versus a near 8% gain. quite a few companies are falling in tokyo. yvonne: japan's second-largest brewery is falling after forecasting its first loss ever. ros: kirin is forecasting a loss of $461 million. its first loss ever. largely because of its brazilian operations. at a time of optimism for the brazilian economy. thatirin is saying

consumption is stagnating there. they are facing economic difficulties. this is why it is not doing so well in brazil. can be expected to result in losses of about 940 million dollars after accounting for some goodwill. kirin had said was optimistic about its chances in brazil. move forwardked to on this. its senior executives will take a pay cut. it will look at rebuilding its brazilian it so can start making profits in a few years from now. it does not exclude the option of selling it. has been called the pillar of its overseas operations. it is also facing slumping sales in japan itself.

aging population so kirin has been looking overseas for growth. unit will be an exciting market because of its expected high growth and increasing consumption. yvonne: another story we are looking at. why oil's road to rebalancing will take at the core -- a detour next year. india's finance minister is in the spotlight again. accusations of financial wrongdoing at the new delhi cricket club. we speak to bank of singapore's strategist about his topics for next year. you are watching trending business. ♪

yvonne: the dollar is set for its first monthly decline since august. it is no longer simply a buy and hold trade against the euro and the yen. here's the strategist at the bank of singapore. are we talking about this dollar rallied fading in 2016? >> not quite yet. last rally for the dollar against the other currencies. we start to look for a turning point next year. the dollar is in the mature phase of the game against the euro and the yen.

yvonne: do you think it will not break parity? we are calling for a move toward 1.02 in six months time. we might come close to parity. yvonne: it weaken 10% this year already. we recently saw the bank of japan announcement that whipsawed the yen. do you think this will not do much for the end next year? does this wiki ends seem to be bottoming out now? most of the dollar's strength against the yen will have to come from the united states side asked year.

much of it is result of bank of japan easing. those looking for further easing from the bank will be disappointed. we look for some upside on the yen. the fed is hiking rates supporting the u.s. dollar. the market still looks a bit complacent in terms of that rate hike. yvonne: we are seeing one on the dollar to the yen. it would probably go up to 127 before it starts to turn around. yvonne: can china live with higher u.s. interest rates? we continue to see that more , forceful ands

flexible policies underway in china. they did strengthen the reference rate for their currency over the past two days. we could be seeing further depreciation. how far? we could see further depreciation of the yuan. we do see further upside for the dollar against the emerging asian currencies. that given the likely move in the management of the , and the potential for dollar strength, there is therefore wrong for moving the

dollar against the chinese currency. yvonne: what does this mean for other asian currencies. your forecast for the ruppiah is expected to be one of the worst performers next year. it creates a competitive pressure on the asian currencies. trade links between china and the rest of asia. for commodity exporters like pressure, this is more on these two currencies as a result of the weakness of the yen. the weaker yen will mean that china could import fewer , giventies as a result

that the weaker yen itself would lead to a rise in commodity prices. this is a negative for commodity prices. yvonne: we continue to see central banks give up control of the currencies? we've seen that in argentina. now we have the azerbaijan action. in the wake of oil's collapse. is this a reminder of the 1997 asian financial crisis? sim: this is the repercussions from lower commodity prices. it is idiosyncratic. asia itself this is not a 1997 situation.

the financial conditions in asia by and large are still relatively stable. we really appreciate your insights. joining us from the bank of singapore. >> the initial reports into the deadly landslide in china said it was caused by construction debris. rubble had been piled up to steeply. destroyed andere a pipe carrying gas to hong kong. 91 people are still unaccounted for. seems to have its program back on track. the new rocket successfully deployed 11 satellites.

this could increase the launches for nasa in february. staying in space, astronauts on the international space station are fixing a stalled transporter. rail car is used to move people and equipment around the orbiting lab. a ship carrying food and supplies is due there on wednesday. yvonne: destroy the government -- the australian government has set the scene for a battle over the great barrier reef. ♪

australia's environment minister has given the go-ahead for the expansion of a terminal near the great barrier reef. it involves the dredging of more than a million cubic meters of the seafloor near the marine park. paul, clearly this is very controversial. development near the great barrier reef is a was s always controversial. commitments were made to environmentalists. dredging is taking place 20 kilometers away from the nearest

part of the reason so the impact should be minimal. not enough to satisfy environmental groups. if you disturb the seafloor, things don't stay in one place. they will drift around. it still has a very strong possibility of affecting it. the world's largest coal terminal will obviously create an increase in shipping through the area. that also concerns the environmentalists. yvonne: why is the coal terminal being expanded? land isrther west in unexploitedat is an coal resource. a number of companies are looking at developing operations in that area. they want to build a giant coal mine there. cattle grazing is currently in the area.

it is a very dry part of the country. there are issues over access to water. the price of coal has been going through the floor. the banks in australia said they would not finance the project. yvonne: thank you. the atlanta fed president says gradual tightening means rates could be raised at alternate meetings next year. that would mean about four hikes over the next year. lockhart reiterated that the pace of tightening will depend on how the economy is performing. higher rates will be gradual depending on the numbers. has suffered another setback. the issue with plain

indigo is looking at options to cover the shortfall in capacity. the latest star wars film has beaten the global record for its weekend's debut and that is before it opens in china. in $529 million over the weekend. breaking the record set by jurassic world by $3 million. saidy ceo bob iger expectations are high for the chinese market. iger: it is the number two movie market in the world, china is, and it will be the number one market in a few years. that is a huge opportunity they did not exist a few years ago. not much happening in the asian markets as we count

down to 2016. in the south korea index are down slightly. we will get back to singapore after this short break. singapore and greece are thousands of miles apart but their stock markets you have something in common. ♪

♪ yvonne: a top stories defending this hour. china's leaders have signaled they will do more to boost talks with theng president and premier. officials say the fiscal deficit ratio must erased gradually and monetary policy must more flexible, and fiscal policy more forcible. they pledged help for the property market, especially in rural areas. -- pushingres shares, after the confirmation of a record or .5 alien dollar loss. almost 7000 job cuts.

this development and sales of tvs outside japan, reduced costs consideredes, and third-party appliances. toshiba stock has lost a lot of stuff. japan had the biggest one-day decline in almost four years on reports the u.s.. third.l up to a mcdonald's holds about 50% of the stock in the japanese arm. the nikkei news says an unnamed u.s. executive recently traveled talking about buying potential buyer is. david is here with more on that and other movers are not a happy meal for mcdonald's event. good one. it will take me a few seconds to recover. mcdonald's, 5%. , the parent company, 50% stake looking to sell a portion of that.

shares.% of outstanding as much as 33% of 15%. the shares will take a tumble on that. kirin brewery, a complete about-face from their profit margins in october. they are forecasting their first ever loss. a big chunk of that has to do with the right down there having in brazil. aregood example, you looking at special losses. after you take out this impairment of 27 billion yell -- ¥27 billion from goodwill. 5%, shares will take a tumble on that. speaking about deals, confirming

which willger with -- have an april 2017. shares are down 20 -- 10%. that is toshiba. share.r we are looking at a record loss. that is confirmed. they are selling assets. they are shedding jobs. that is not the end. the important thing to note is that we could still see it -- see more losses for the company. when you look at the 4.5 billion u.s. dollar loss forecast, including taxes of $2 billion, and it is still not including possible impairment. we talked about the brewery for example. that could actually still take a hit. billionalue is down 1.7

u.s. dollars over two days. down $10, that is billion. at the moment, shares cannot find the floor. back to you. yvonne: thank you. returning to our stop -- top story. china's elite decision makers up their annual planning session. they have a message to tear up investors at home and abroad. with thek to event latest. >> forceful and flexible. the best of both worlds. communist party working in tandem with the people's bank of china. economic work conference which just wrapped up, we got further clues on how the stimulus effort may play

out. the government is saying monetary policy needs to be flexible, but it has to be combined with reform. owned reform, bringing down debt levels on the municipal level, and making sure the property market is calibrated ever so carefully, so that people's wealth does not depreciate, and also so that bubbles do not increase in china. yvonne: they are trying to help the homebuyers also. zeb: absolutely. and in rural areas, we talk so much about the first and second tier cities like beijing and shanghai. let's not forget the inner parts of the country, many people depend on that housing wealth for their soul existence. the government is trying to pay attention to those rural areas, they will support rural home buyers as they raise fiscal

spending. expanding the fiscal deficit ratio is one of the things that economists are talking about here. they can do that if they have more flexibility in monetary policy. they will print note -- promote entrepreneurship as well. that is critical in terms of an overall strategy. xi jinping has made clear he wants technology to factor prominently into that. if you look at china in general, there are many young entrepreneurs with smart ideas. it remains to be seen whether china has that inflection point, whether the technology industry becomes one of innovation rather than simple manufacturing. it appears that they are on that track. we will see how that translates into overall economic growth. yvonne: thank you so much. toshiba is slumping for a second day after forecasting a record loss. thousands of upsets -- jobs less.

bloomberg tech reporter joins us from tokyo. this is a long-running tale of woe here. that's right. it is now culminating in ¥550 billion loss, not only a record, also more than doubled the net income of the company over the past two decades. much of that is coming from a down, but the other half is restructuring efforts. they will sell the tv sector in indonesia, close another research center, and layoff 10,000 people by march 2016, many of them coming from the struggling laptop and tv divisions. yvonne: sounds like the reforms are going beyond the businesses that were responsible for the accounting scandal. why such a drastic move? pc was one of the main

culprits behind the accounting scandal. the consumer electronic divisions were more or less less unscathed. it is more helpful to think of it as another chapter in their long-running identity crisis. this is a company that made the first dvd player, the world's first laptop, that brought you vhs. it is about a trillion yen worth of revenue. most of the prophet is coming from semiconductors and industrial regulations. a hint that the president is using the accounting scandal to push reforms that cut the decor of what toshiba is as a company. yvonne: take a look at the shares today, down 7.7%, a six year low. we can't find the floor on the shares right now. what can we expect next from toshiba then? reporter: it may not be the end

of the bad news. there is still the outstanding issue of the nuclear power unit, westinghouse. in november and they wrote down about $1.3 billion worth of profit, but did not reflect as an impairment on the balance sheets. that is hanging over the company and might come out later. in the meantime, the company will look to shore up the balance sheet. the president said yesterday that he might be forced to sell assets that they would like to hold onto like medical and business stakes. yvonne: more reforms to come. thank you so much. tokyo to talkm about toshiba. let's talk about other stories. a biggest overseas acquisition in about eight years. it is buying a 41% stake in u.s. money manager american centuries for about $1 billion. the deal is expected to become

-- completed in the first half of next year. they have been looking to expand but imgsf japan, and taiwanese expansion unit. has agreed to pay $1.5 billion to buy u.s. fridge maker hussman. it is private thing to move away from consumer electronics and bolster the housing operation. the president wants to spend about $8 billion this fiscal year to reach the goal of $80 billion in revenue by 2018. right now, shares of panasonic in tokyo, down close to 9/10 of 1%. alibaba taking steps to counter counterfeit goods on its side. -- itghest investigator has hired and investigator to get rid of the third class. they helped apple deal with eight iphones and copyright infringement. alibaba has an unwanted

reputation for a haven of counterfeit products. regulators have warned it will be blacklisted if it does not take action. investors have been selling off singapore stock this year, making them the second-worst performer among developed markets. the benchmark is set for a 15% plunge, and only greece is faring worse. let's ring in haslinda amin. a disappointing year for singapore stocks. disappointing, depressing, distressing. -- reasons whyy singapore stocks are down. rising,he commodity slumps in property prices. they prompted investors to dump singapore shares. three times the drop across asia. among the biggest losers include the big boys, their shares have

plunged 30%. even with that huge drop, valuations are not low enough. , they say theyps shares must follow even more before they consider buying. one manager said values could emerge if singapore could drop another 10%. really little to be expected is not goodolation enough, because the growth outlook for next year is still quite soft. when you're stocks are in the same category as greece, it is best to exercise caution. yvonne: they are only better than greece. how concerned is the market about singaporean banks? there is great concern. the singapore banks have exposure to southeast asia. thailand, malaysia, indonesia, they are not doing very well.

investors have pulled out. $6.7 billion worth from equity markets alone this year. also not helping, expectations that weaker earnings, not to mention market volatility, all that is a risk to singapore lenders. investors are selling on the pessimism. these stocks account for more than a third of the index. they will likely be a key drag. loan growth is already weak, and there's no indication it will get better. disappointing indeed. haslinda amin, thank you. coming up next, on a shopping spree. finding their korean counterpart. more attracting that ever. "trending business," will be back. ♪

yvonne: let's do a quick check

of the markets around the region. in tokyo, the nikkei falling 1/10 of 1%. toshiba, the biggest decline are on the index, falling more than 10%. fifth and a than a half year low after the company is forecasting a 4.5 ilion dollar loss, announcing plans for more job cuts and restructuring of the businesses. let's get back to sydney. to see volumes into the holiday weekend, but city shares looking good. up about one quarter of 1%. to singapore. we talked about how singapore stocks are not looking pretty good this year. here in hong kong, here is how things are looking. the hang seng looking pretty much flat, not much activity today.

more forceful and flexible policies ahead. as we look ahead to the new year, our colleagues at bloomberg intelligence have given us their view of the key themes in the financial sense. take a listen. to terms with their plan. they face prospects of -- more competition. , fresh fromchina imf reserve currency growth, will continue to open up equity, and credit to outside investors. andglobal traders, high-frequency traders, will see a cut down, which may cause them to question. market liquidity especially in

bonds and equities may dry up as a result. >> due to the following interest rate in asia, people macy's to go overseas while engaging in m&a. insurance premiums growth is accelerating as the government rules income and addressing the asian populations needs. chinese companies are throwing money at south korea at a record pace. president xi jinping dream to make the economy more tech and consumer dependent. let's bring in stocks editor richard frost. why korea? reporter: one very simple thing is the proximity to china, and similarity of culture. 20 yearsea is maybe down the path of what china is trying to achieve, moving away

from factories in other things come into a much more high value added industry like technology, consumer led growth. leapfrog into that, one way to do that is to buy into korean companies that already have that technological know-how, and use that as a shortcut to try to raise themselves up. yvonne: as the president called it, a creative economy. what types of companies are being targeted by china right now? reporter: one of the major ones there are about $119 billion worth of investment. anost half of that was insurance company. also there is because medics companies, technology companies -- cosmetics companies, technology companies. in general the shift is they are looking towards games, and those types of companies. if you look at korea, bloomberg

did this. innovation index, korea came first in the world, leading the u.s., germany and japan. china was 22nd. you can see why korean companies would be attractive. has really been trying to push smaller companies and break the stranglehold they have had over the economy. yvonne: the investment in korea still remains comparatively small. how do you compare this and the action to the global context, or china's context? reporter: korea is definitely pretty small tear it when you look at some of the massive that chinese companies have done over the past year. one of the difficulties of course, is most of korea's largest companies are controlled. it is pretty unlikely we will see any takeovers by chinese

companies are any other national companies in that process. still, what we are being told is we are expecting the trend to the risings we see affluence amongst the middle class in china. we know there are already a lot of tourists going to korea to buy cosmetics, and other companies are familiar with those products. it will not be a hard sell to persuade mainland customers to buy those. yvonne: the kapok -- kpop sensation really has gotten to a big draw for chinese. in that way, it does filter through the markets as well. reporter: they has been using kpop as a strong marketing tool, whether it is cosmetics, facemasks. we know they have been using stars of some of the shows. impact isral

certainly helping. it is much easier to market north asian customers, as opposed to western and european companies. marketing to mainland customers may be a very different type of customer to what they are used to. yvonne: closer to home. thank you so much. let's check on headlines around the world. court in the bangladesh has ordered the arrest of 24 people over the deadly collapse of a factory two years ago. -- many accused of people were killed when it fell in april 2013. they have been charged with culpable homicide. the russian military says it cannot retrieve information from the war plane down by turkey because the flight recorder was damaged.

of 16 data said 13 chips were destroyed and the other three are impossible to read. russia hoped the data would disprove the claim that the plane entered turkish airspace and was warned to leave before being shot down. the japanese government had decided on plan a the new olympic stadium. prime minister shinzo abe says the council has recognized -- recommended the design for the centerpiece of the design. it was one of two designs before it when the first one was deemed too expensive. -- ultimate cost had lint ballooned to more than $200 billion. yvonne: the opposition calling for his head. but the finance minister of india is adamant he did nothing wrong. live in mumbai with the details of the cricket corruption crimes -- claims. after this break, stay with us. ♪

yvonne: you are watching "trending business." i'm yvonne man. welcome back. the opening of the mumbai session, a few minutes away. india's reform plans have hit the brakes and made a stalemate in parliament, blocking the government's key bills. the latest involves the finance minister. let's go to mumbai for more. what is going on here? members of parliament and layers, we saw the finance minister filing a criminal defamation case in a city court against the chief. as well as five other senior leaders of his party. the finance minister filing a great similar -- separate similar suit seeking damages before the high court for statementsamatory

against him and his family members. this marks a personal appearance in the court, saying he did not take a single penny for the company. others -- he says they make baseless allegations. this comes on the backdrop of a tax of him. the move relating to a contract handed over to a company called 21st century media. the government not surprisingly saying that they are framing him over issues and trying to deflect concerns and questions of corruption in his own party to the government. yvonne: drama. thank you so much. that is it for us here on

"trending business." staging for the big stories so far, including china's fight for more sin -- stimulus. ♪

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♪ watching in a winter watchlist land! ♪ xfinity's winter watchlist. watch now with xfinity on demand- your home for the best entertainment this holiday season. >> from our studios in new york city, this is "charlie rose." charlie: bruce riedel is here. he served in the cia for 30 years and was also national security advisor to four presidents. his new book is called "jfk's forgotten crisis." the financial times calls it a minor gem of elegant history writing. i'm pleased to have him back at this table. welcome. i assume you love the idea of