the latest literary disappearance of the city. us know you think of our top stories. system in jakarta is just getting underway. needed losses turning a corner. >> a quite interesting time release for jakarta. market seem to be stabilizing. have a look at what's happening with the nikkei. aboveo to five back 18,000. 21,404. a third of 1% has recovered. 3300.

psalm, i will be surprised as it's more the handful, yesterday did demonstrate one of those risks. perhaps a sentiment being held by the pboc. injecting liquidity into the system or before markets open. at the same time weakening the currency's reference rate. we are still seeing the onshore and offshore work -- rates diverge. futures up about five and a quarter point.

japan and hong kong. i will a. dollar-yen fairly straightforward. rishaad: after one of the worst starts of the year in decades, the government hopes lines will work to improve market mechanisms. what are they doing exactly? there pretty critical when it comes to what can happen. most indices have reversed early losses. the chinese securities regulator

trying to reassure investors this morning they will fine-tune the circuit breaker system as it serves an important role in stabilizing markets. goldman sachs says it is too early to turn bullish. suggestions that the index will be negative in the first quarter. the bank maintains its target at 4000. it doesn't change anything theamentally because investor makes is still dominated by retail. circuit breakers, the threshold in china is low enough that it would've kicked in 20 times last summer alone.

they are studying ways to control the pace of sales when the limit is lifted. rishaad: we do want your opinion. a new legal battle over the emissions scandal. in case it could lead to billions of dollars. this is gone through all sorts of twists and turns. now the first lawsuit by the u.s. government trying to bring together all of the involved parties. this complaint was filed monday in federal court.

a civil case that seeks unspecified damages. each vehicle involved could face three to four different penalties each. the department of justice alleges that they rigged admissions tests. about 600,000 cars allegedly had a defeat device. the judge will be taking a look at this. for its part, volkswagen says it will continue to work with the government. it was in september when these revelations came to light. the company did admit that it emissions some

controls that only came on during testing. air act is only one element of this case. it's share price has fallen precipitously. if you look at the epa element of all of this, there is still not an agreement between that agency and volkswagen on the recalls necessary. it is a complicated case and will be a long case. the impact on the stock price has been a very challenging time for volkswagen. u.s. civil lawyers for the governments are looking into it. it will be very interesting to watch.

let's have a look at some other stories. >> china real estate group hopes to buy a majority stake in american television company. they are buying off legendary entertainment valuing the company at $4 billion. alreadyire chairman controls the u.s. sentiment chain amc. reports, it these owns a little more than half of the burbank california based legendary. under an agreement that could be signed and an announcement made early next week according to boards. a representative declined to comment. legendary has also declined.

the auto industry. toyota following has resisted the idea to offer apple's car play. safety and security concerns for resisting the devices. ford's platform is open to all of its peers. other companies have expressed interest. they remain wary of giving apple and google too much control toyota already offers another system which competes with apple and google systems. bets in theing its

ever grown ever-growing car business. for honggood new year kong retailers. the city is suffering the effects of the slowdown in china. kongl sales and hong slumped 7.8% in november. i was the ninth straight month of decline. hong kong could be on stratford's biggest annual decline since sars. the value of sales and luxury goods down more than 20%. there was a mere 6% drop in newspaper stationary. seeing more aspects of the slowdown in china is really hitting here in hong kong. rishaad: thanks juliet.

we'll have a look at this. hour, up later this coming to new delhi to meet the man with a not insignificant charge of opening up india's economy. china of boomed and bust. he has another warning. ♪

rishaad: missed opportunity. we look at asian stocks. rishaad: loosely with the

doing of the moment. flyfishing high. let's have a look at what all of this -- how this all plays out into the investing landscape. chief china strategists. what you make of yesterday's move? the whole notion of circuit breakers? they can magnify the market outlet. once you have a very narrow stock, for your circuit

when the market partitions the decelerated price, if you try to get out the door at the same time as had.one creates what we what would you do? >> that's a good question. -- 10% say they should maybe 15 even. it's what the other markets are doing. rishaad: volatility tends to be serially correlated. tell me about that. the chinese markets tend to be very momentum driven. so honestly to even more selloffs.

yet to actually change the trading psychology of the market. whatever you did your historical analysis, it's not there anymore. going forward we will see more market volatility. and as a result more momentum driven traits as well. you are quite negative when you come on this program. are you becoming slightly more optimistic? year when the market was making its way to 5000. for 2016, there been some very strong worded editorials. they continue to push.

to liberalize the exchange rate system. tell me about the liberalization crisis. some are talking about perhaps seven by the end of the year. you are even more bullish on the dollar. >> i see continuing weakness in the chinese yen. it continues to get weaker. money is moving out of the country. given that the central bank has as a result i would be surprised to see if it continues to weaken from here. rishaad: indecision now leads to trouble later.

that is the actual wording from the editorial. it's a result of the top management. rishaad: get the message right the first time. in 2016 the five top capacity ande d some other reforms. have market movement. that's what we've seen. we had a very sharp deceleration in 1998. to 15% down equity market. rishaad: what does that mean between the eight shares.

we see that valuation gap actually narrow? what to going to take to make it happen? >> we're raising interest rates. it's a weakening environment. currency, we have to follow the u.s. money share policy. much forthank you very that. will be up or down this year? we're getting there very soon. thank you very much. hong kong is growing literary brand. ♪

rishaad: president obama is to tighten gun rules. he will take executive action to require dealers to report lost or stolen weapons and broaden the definition of who is a dealer. saudi arabia has joined the campaign against iran. more countries cutting or refusing diplomatic ties. protests continued. sudan cap ties with iran as the uae downloaded -- downgraded relations.

india's national disaster response has been sent to the northeastern state of manipur where a powerful earthquake killed at least eight people. struck magnitude quake 16.7 kilometers below the surface. five deaths were reported in bartlett --. rishaad: hong kong has expressed concern about a missing publisher. reporter isvernment here. toshe decided she was going a draw. i not sure whether she got a phone call from them that prompted that withdrawal, she

did head off to northpoint police station yesterday and asked to withdraw the report. then he was on the television this morning saying the police would continue. thing is interesting they've gotten hold of the facts that were reportedly sent by lee to one of his colleagues in the where he said he would make his own way to china and assisting in their investigation for quite some time. the speculation is that the -- mighttions are into be trying to get information on the sources that are being used for some of these salacious books that are being written

about the communist party elite. without the chief executive come out and talk about hong kong's integrity. it does have huge wider implications with the notion of one country to assistance. hashinese law enforcement's been coming across the border in apprehending people in hong kong and taking them back to china. that's a complete infringement on hong kong's own sovereignty which is supposed to be guarded under this one country to systems. it's only the hong kong authorities that can actually enforce that here in hong kong. and to that freedom of the press and publication and speech, absolutely guaranteed under hong kong's constitution.

that this isut true, it has massive implications. there were three others apprehended. inre's the reports coming thailand who disappeared. he has disappeared under extremely suspicious circumstances. himwife is not heard from she is in germany apparently. axis -- assisting in investigations. authorities something to be that enthusiastic about following up on the missing persons report. thank you very much for that.

next up lunch to fight pollution in china. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. 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.

made --: chinese stocks relatively stable. security was still proves assistance. asian benchmark slightly higher. stabilizing after yesterday's huge volatility. the biggest reverse retail offers in september.

that after money market rates hit a day highs. bank of china had suspended such operations after last year. a new lawsuits in america over the fallout from its omissions. possible criminal misconduct related to so-called defeat devices. what a relief today. 50% batting average. things do look a bit more normal. opening day for 2016. it's looking a little better.

as expected, things open lower. think of the last 10 minutes or so it's been frightening again. religious shift focus here. a few groups are watching. theannounced yesterday that minister for transport and housing said it's too early to even consider lifting the measures. that means that real estate is flat at the moment.

sales figures were out yesterday after watching market explode. they're expected to come in lower anyway. that being said there is a relief. before i go, let me wrap things up. calm allowssense of for some of these good moves over in tokyo. what's the story? profit forecast 28%. up 4%. that's japanese stocks.

one other stock and want to mention. it looks like a japanese stock. the largest restaurants in japan. good news. as we look a chinese currency biggest disruption since august. in the third quarter these most reasons. they're greater than the greek economy. let's get more from enda curran. useful anow how comparison it is to talk about the size of the greek economy. it's a good example of how

fragile the sentiment is in china right now. they really don't need to see capital leaving the country at record amounts. that of course i forced him to intervene and use up their reserves. it's a sign that confidence in china remains quite fragile. itsost likely grow at lowest in 25 years last year. year it'st off the not a great space to be in. rishaad: he's talking about the rmp weakening to about seven. quite a few people with outlook and focus here. what does that tell us about this? >> this of the debates that going on right now.

ignore the stock exchanges all you want run your own economy. save lives. it shows two times the stabilization. separate from that, they say the stock market is disconnected from the real economy. since strong for a number of years now. it's disconnected from the economy. rishaad: thank you for that. but cigna look at alibaba. it's apparently seeking one half billion dollars in funding. it's the second round of fundraising for the company

which runs china's biggest online payment service. general motors investing $500 million to develop a network of self driving cars which writers can do someone on demand. it's part of financing. investors received one for ari share for every 10 million of chrysler. it traded at 43 euros. it does have 8.6 billion euros. chrysler says the spinoff will be just as good. it's the seventh largest

carmaker. it has a very ambitious plan ahead. china,: getting back to their plan to deal of pollution may have a silver lining for foreign carmakers. subsidies for clean technology are likely to raise the popularity of electric vehicles. steve lavin is here. sales quadrupled last year. that's only 1% of the total auto sales in china. that's going to rise. of that not only is china trying to reduce omissions, the carmakers are forced to sell more.

the fuel efficiency standards are getting more stringent. they're asked to cut pollution as well. consumers are hesitating buying them. there a lot of incentives in place. there are certain things such as the biggest problem is range anxiety. >> and the industry needs to tackle that. one thing the government is doing is trying to push more charging stations. so consumers have more places to recharge their vehicles. the other thing is battery prices are coming down. you can fit more batteries in the vehicle so they don't have the range anxiety. deskakers are putting pushing more and more. mostly their domestic brands.

but foreign brands are starting to make headway. rishaad: faraday is trying to change things. be a very to interesting development. you see this company out there already introducing giving you had to foxconn. they will change not only the way we drive but the way we share a vehicle in terms of car sharing earlier. years from now, rishaad: -- we don't actually know yet. >> we don't.

tesla, years from now will be credited as a company that brought's electricity mainstream. the effort a future coming out with new vehicles. yet traditional makers like porsche coming out with new versions. it's going to get really crowded. they will see a lot of competition. get a look in electronic retailer deck smith. it's a spectacular fall from grace for my company the just two years ago was at more than two dollars a share. the question of what happened here is a deep and broad one. the alarm bells really started

ringing towards the end of november when they could not affirm the proper guidance. beside fivere falling earnings. they deeply discounted much of their line and attracted huge crowds. the heavy discounting plan obviously did not work. they were unable to pay a loan facility. they rather optimistically hope to resume trade tomorrow. rishaad: it's virtually worthless. >> it seems extraordinary in retrospect. there was sold to a private equity firm in 2013 for 115

million the. afterwards, it was floated it to 20 a share valuing company at 520 million. here we are two years on and it's $.35 trading suspended. there is likely to be a fair bit of commentary in the coming days about exactly what anchorage did. there are a few blog posts floating around of the moment the guinness interesting clues. rishaad: thanks for that. break,other side of the

a big rise in foreign investment. were back in two minutes. ♪

rishaad: denmark sweden and norway enforcing border control. denmark from what only accredited visitors for at least the next 10 days. as of monday more than a million asylum-seekers have entered europe.

the prime minister confirmed the offer as part of a three-year war on separatism. the human says war crimes were committed by both sides. the army says one attack one monday. drink the number of deaths to 12. -- brings the number of deaths to 12. narendra modi took power in india. our next guest is at the sharp

end of that program. he joins us now from new delhi. your point held a job the new. pretty tough, but exciting. when do you expect to actually achieve the --? integrated about 4.7% gdp growth. fdi has grown by about 35%. we've opened up our economy very radically. we've opened up our railway sector. our constructive -- construction

sector. we've opened just about everything that there is to open in india. our fuel is that in the muslim real part of a globalize world. we have taken a series of measures to make sure that they are extremely predictable and consistent. rishaad: since the most open economy and the world. that's a big claim. would point to things like regressive taxation. can you actually guarantee this is something in the past and not the future? >> the retrospective tax the

prime minister himself is undergone. in fact in the last 17 months, they've taken a series of to bring clarity to our tax policies. that's why india has grown consistently. we have attracted a vast number of companies. today, in terms of the mobile man. we are determined to creates the size and scale of manufacturing which will make india a menu -- a great manufacturing nation. rishaad: we have other countries

moving more toward service industries. it's interesting that india wants to go the other direction. what are your views on that? think. nobody manufacturers only for the domestic market. you use it as a springboard to export. challenge for india is that almost 75% of manufacturing if you want a that youuntry, for need the size and scale of manufacturing. therefore, the make and india is not just about manufacturing for india, but also catering to the

domestic market. rishaad: what measures would you like to see to further your cause? the government has initiated a vast number of unique policy measures. in his push for innovative and sustainable innovation. these hundreds of cities. the focus on digitization and manufacturing. the government is making structural changes. what you will see is an approach to drive india's growth. you will a lot of

inconsistencies unpredictability. you'll see a very rationalized tax policy. rishaad: last question. how long will this program take? the important thing to my mind is that in the overlap 65 years made itself complex. it's important that india scraps a lot of its rules regularly. this is just one of the simplest and easiest. the government's entire focus is on making india one of the easiest places to do business.

to stern change. it has pushed for the national >> it is bottom a huge number of measures. rishaad: great talking to you. we have to take a break. on the other side more on india.

-- we're talking about indian markets. india has turned out to be one of the most -- one of the worst performers. policy reform has done favorable. inflation was headed south, but some a few quarters investors have seen fidgeting. investment something close to $1.8 billion.

emerging markets have -- with you look at brazil or russia as conserve, that has taken that's it forad: trending business. asia edge is next.

♪ announcer: from our studios in new york city, this is "charlie rose." charlie: he is a wide-ranging voice with the force of an entire brass section, or possibly windtunnel, distilled into a single instrument. book that written a chronicles his legendary career. it is called "over the top and back." he has just released his 41st studio album. here is tom jones in our studio performing "elvis presley blues" from his album "long-lost suitcase." ♪