taking hold, and he is confident in remaking a global growth engine. some beg to differ. a hard landing is not just unavoidable, it is already happening. let us know what you think of our top stories. just follow me on twitter. that is my handle, a #is there -- a hashtag is there as well. greece has a second attempt of a relief rally. perhaps it is happening better today, heidi? yeah, hopefully we can hang onto these gains, because right about this time yesterday was when things started turning foul. the aussieare seeing and the kiwi extending gains, hanging on to pretty healthy gains there. falling, but5

recovered. shanghai is coming off of again, trading up by about a quarter of 1%. we are seeing some witness across some of these internet tech names, amidst all this uncertainty when it comes to reform, but on the outside, some of these property names are starting to gain. we are also seeing a little bit of a recovery for singapore after a couple of horrible -- the fti up by one point 5%, and hong kong is up 2%. having said that, chinese companies trading in hong kong are still under pressure. it has been said that things could turn south quite quickly, and we could see decline of of those5%, about 18% a shares are an oversold territory at the moment. isit of a recovery rally coming through from the philippines as well. i will take you through some of

the movers and hong kong. this property story is really emerging because they were so badly beaten down yesterday. a property company fell to a record low at yesterday's session, coming back a little bit today. we are seeing gains. some hog-tied is up by almost -- kai is up by almost 3%. now is time to buy. this route is really overdone. a rally across those developers and hong kong today. rish. rishaad: china is putting a positive spin on the economy. the vice president is looking to look after many of china's small investments. steve engle cover this one. what is the clocks -- the crux of his statement? the vice president clearly had marching orders from beijing for davos to put on a

allof a show, divesting those fears of the global investment community that we talk about everyday over china's slowdown and the government's perceived policy missteps. he said that china would be willing to intervene in the stock market, despite criticism for doing so. he wants to make sure a few speculators don't benefit at the expense of regular investors in china. he says that china's market is, quote, not yet matured in needs tougher regulation to limit volatility. lee is the most senior chinese official to underline the governments intervening should market turmoil prevail. in the shanghai composite index, you can see the ups and downs. this was the big rise and of the theequent fall, down 1% in first three weeks of this year. meanwhile, on the yuan, we can see the yuan there. ins is a sudden devaluation

august, and a continued depreciation trend over the last few months. lee says the government has no intention to continue to lead the currency devalued, he says the fluctuations are a result of, quote, market forces that he says started with the raising of interest rates by the u.s. fed. blame, othersted seemed that guard. it was said that the big issue of china was communication, or lack thereof. on the overall health of the economy, lee says that china's role has remained unchanged. he says that the economy will continue to expand between 6% to 7% over the next five years. billion air investor joe's -- george for us -- george soros said that a hard landing in china is practically unavoidable, as china waited too long to push the current rebalancing effort. in japan, they kick off their two policy meeting next week.

stimulus expand their bill? joining us is jodi schneider. what can we expect here in terms , are they going to try to make revisions to this 2% inflation target? reporter: right, those are the two questions. the first, there seems to be a greater task then there was earlier. j.p. morgan chase this week said that they are not ruling out using this meeting, although they have advanced their april,ion for easing to and others are saying that there is a greater chance that they would have said just a month ago about easing, but the real question is also the 2% inflation target and moving it. it was already moved twice this in 2015, and if it was to be moved again, that would be three times in a year. the board is really faced with a confluence of factors right now

in terms of the strengthening yen and the stock market rout, subdued wage raises, and also the questions about inflation and how are they going to be able to get that kind of inflation, both on the consumer and investor side, that they have not been able to do, so there is a lot of talk that at some point we will see that target moved again, the question is whether it is at this meeting were a subsequent one. -- or a subsequent one. rishaad: jodi schneider joining us from tokyo. let's go to other stories. another central contemplating an increase in stimulus. here is sherry bank -- here is shery. a month and a half to convince investors to do what is needed to reunite consumer prices. the ecb president hinted that

policy makers will go through stimulus on march 10, which raises the prospect of the government council delivering another expansion to its bond buying program, including potentially taking it to the u.s. at classes. draghi says there are no limits to how far u.s. officials will go to support their inflation goal. recovery hasnks been on track. take a listen. >> the most recent survey indicators available up until december point two ongoing real gdp growth, momentum in the fourth quarter of last year. expect ahead, we economic recovery to proceed. analysts are calling this a bit like a groundhog day, with the only question seeing whether or not the ecb will meet market expectations or disappoint again. policymakers have worked hard to manage expectations.

while draghi did not elaborate on how we plans to better explain things this time around, he also did not identify that officials had a role in how markets reacted, but the challenge for the governing council has become tougher. inflation rates have not been under the goal of 2% in over three years. google's android operating system has generated $31 billion in revenue, and $22 billion in profit. the financial figures were disclosed to a court by oracle in san francisco, which accused google of using its java software without paying. google says the figure should have never been made public and has urged a san francisco judge to seize portions of the public transcript of last week's hearing. oracle will now seek more than $1 billion in damages after it expanded its claims to cover new android versions. this showdown has been ongoing for five years and has returned

to a district court in san francisco after google lost a bid in the u.s. supreme court. boeing says it has halved production of the jumbo jet and charge as69 million it struggles with twiddling sales. the company says it will reduce output of the 747 two just a six year fromt six per september. this is the latest in a series of reductions made. nicknamed "this queen -- the wasn of the skies," the 747 introduced in 1970, but sales have faltered over the past decade, with aircraft such as the triple seven becoming more popular. boeing had just 40 unfilled orders for the 747 since

december. u.s.ad: on our website, a ship has broken down in singapore. have a look at that one. coming up later, online trolls invade beijing to deliver a nationalistic message to taiwan's new president. and just ahead, things may feel volatile for investments right now, but are next guest says things are not actually as bad as they seem. details will only come back. ♪

rishaad: we are getting some relief from investors with stocks rallying. part of that is oil prices coming back, emerging $30 per barrel. joining us from singapore is the

pacific managing director of the risk consulting firm. it is great to talk to you. you are suggesting that things are not as bad as they seem, but a lot of people out there think that things are worse than it seems. takehing is, why do you the air off full blast version? guest: good morning. thanks for having me. the return picture looks a lot worse than the risk picture, and we tend to look at the risk which are a lot because it is part of our business. you go in since november, since the fed ruled that 2016 would be more volatile than 2015, you have geopolitical risks that you do not have in 2015, you have the dispersion across central bank monetary policy, you have oil prices that are falling again and worries about china's slowdown, all of these things are impounding to make 2016 a risk year. a lot of people wanted to do risk their portfolios since november, and that kind of tilted the balance between risk investors -- risk in burst --

risk in verse investors and risk tolerant investors. the thing is, has the risk cycle essentially. ? -- essentially peaked? actually, no. when we look at the volatility numbers of the last week or so, they are not as high as we saw in late august or early september. correlation around assets is around .3 or .4, it was around .5 4.7 in august. only china, which is horribly at .8, isnow almost as bad as it was in late august, but the rest of the world shows relatively midway kind of volatilities, and we still have some pockets of negative correlation. if you would get gold, it is heavily negatively correlated with equity markets. it is a good place to go and put

your money. oil, on the other hand, is positively correlated with equity markets, so that is a bad place to put your money because you are doubling on the same bets. be negativelyto correlated, it is very positively correlated today, so it is no longer asking --no longer acting as a hedge. you need to change that. rishaad: and how do you change that? and how did the currency markets play into this? many people talk about the yuan depreciating. currency hashe been the biggest driver of volatility in any kind of portfolio, especially a multi-country or multiethnic portfolio, and that is strengthened by the rise in volatility in the interest rate markets, which did not exist for all of the past seven years when all central banks had a qe program going in the same direction. now that they don't, you have

volatility and interest rates, driving volatility in all other asset classes. on top of that, you have regulatory messages that are mixed and become less and less believable. after seven years of people saying we are going to do qe and it is going to work, investors want to see proof now, and it is not coming. they will be looking at earnings and try to figure out whether ceos have a positive or negative outlook, given the situation. rishaad: that's the point. we had a survey from pwc the other day that made for some grim reading. they are not optimistic. yeah, that's what we hear. investors went into 2016 a bit bearish week is about. that is a big -- a bit terrorist because of that. -- bearish because of that. they would into the new year optimistic. this time, they want to see

proof. we have not started the earnings season yet, so there is no earnings announcement to look at and analyze. it is only macro use, and that has been negative, but that has been driving people out of the markets so quickly. the tell me something, from all the different financial data that you analyze, how would you know -- is there any way of knowing that we are actually near or at the bottom? the one thing that we look at is indicators of where the returns on the volatility we see in the market is way above what the model tells us it should be, so the fundamental use models that we build fundamental information to forecast the volatility that should be in the market at any time. when that volatility is much higher, we know that there is more of a sentiment or than theal risk 5

data that exists. for the month of january and the month of december, risk is been much higher than models predicted, and we know there is a little but of overreaction there. rishaad: great talking to you. he is joining us from singapore. time now to take a look at the stories making headlines. china is playing wargames. tv says that a pla exercise imposed vehicles, spider jets, and long-range rockets. the exact time and location of the drills was not being clear, but china is saying they were launched after the vote in taiwan last saturday. a british judge has ruled that president clinton probably -- putin probably approved the 2006 murder of a russian spy in london. the spy became a critic of moscow, and the judge said

forensic evidence indicates that hisrussian agents despite drink with radioactive planarian -- linoleum. he said it was politically driven and went further damage relations between britain and russia. act of congress, but children in washington are finally able to play in the snow on capitol hill, with a blizzard heading straight for the city. the capital's police force say they will not be enforcing a long-standing ban on sledding. it is a potentially paralyzing storm, the lawmakers are telling the cops do, and we are not making this up, chillout. global news 24 hours a day, hour by 2400 journalists in more than 150 bureaus around the world.

next, billionaire investor george sowers giving his jake on the chinese -- george soros giving his take on the chinese slowdown. how worried should we be? ♪

namesd: lots of big giving their views at the world economic forum in davos. they are saying china is still contributing to global growth, and is no way in danger of falling on -- falling off a cliff. >> in terms of the quantity of growth, there is still a lot coming from china in terms of dollars. percentages are falling over time, naturally to expected -- naturally to be expected of an economy that is growing richer, so i am not excessively worried about chinese growth. gin saying that

the fundamentals should be based on the chinese economy, and not what is going on in the markets. >> the stock market is extremely volatile from the summer to now, and so people, the media, investors, and the public are very focused on the volatility of the market. something as inevitable, and the volatility seems to be grappling the attention rather than the fundamentals of the economy. meanwhile, this ceo insisting his company can weather the current storm. >> if you look at china, 1% of our assets are in china. if you look at energy, 3% of our total loan exposure is an energy. are exposure to our clients

largely investment-grade, multinational oil companies, so the markets have tried to punish us for that, and we've got to prove them wrong. rishaad: the chinese vice president be portraying an error of confidence, -- air of confidence, but what do investors make of it? george soros says the country simply cannot avoid a hard landing. itrge: if the chinese left too long to address the in the growth model ,hat they have to adopt from investment and export led to domestic led. a hard landing is unavoidable. at a you're looking financial crisis that would start in china, when authorities also could not deal with that? basically, the key issue is deflation.

it is a condition that we are not used to. none of us have lived in a deflationary environment. the last time we had that was in the 1930's. while i was around, i was not yet engaged in the markets. [laughter] we just don't know how to handle it. it is a different environment. but now, we have to face it. next but on china, do you expect -- >> but on china, do you expect a hard landing? i am merely not expecting it, i am just observing it. but china can manage it. , a greaterurces

in choosing policies than most other countries because it has over $3 trillion in reserves and so on. , they have a way of inflicting their problem to the rest of the world. theycan handle it, even if don't get the transition right. they can certainly continue for two or three years on their own course. rishaad: that was george soros. francine, a quick look at the markets in tokyo. seeing gains across the board. we are seeing that bank -- we

might see the bank of japan next week widen its stimulus program. after this break, we will have a look at the challenges and opportunities facing vietnam's next generation of leaders. the latest on the communist party's congress, that's next on "trending business." ♪ 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.

♪ rishaad: chinese equities trading in hong kong rebounding from six-year lows. oilgy is rallying on high prices. shares are up thanks to that bounce in oil, and optimism on further stimulus. the chinese are promising beijing that they will look up to chinese investors. chimed in on that particular economy, saying that

a hard landing is inevitable. while china has the resources to manage the situation, he says it has to spillover effects on the rest of the world. he short of s&p 500, down more than a percent. up,bank shares are on the but still worth less than its stake in alibaba. dropped tocap has $49 million, compared to a $55 billion interest in alibaba. it has been quite a week for asian equity investors for asian markets, but are we seeing a rally that can be sustained? aidi.s he

are seeing the oil price hang onto upward momentum, and as a result that is translating to energy producers around the region. the asa's is up by 2/10 of 1%, a lot of games coming through from southeast asia as well, in particular these oil reliant economies, malaysia and indonesia. malaysia up by 1/10 and 1%. offshore oileeing producers, services, companies up. tokyo, we are back in the money after tokyo stocks really tanked and sank further into a bear market yesterday. , the have this report nikkei is saying that they are going to fall even further because of these oil prices. they are keeping prices close to looks like a target

for inflation will not be met without further stimulus efforts from the doj. that is the sentiment when it .omes to -- boj that is the sentiment when it comes to japan. rish? thank you very much. that is heidi lynn. let's have a look at what they are trying to do in beijing. a lot of the conversations at that economic forum in davos are focusing on how the situation is there, as well. the vice president has been --aking up, taking a look at they are actually looking after the small investors. reporter: the people's republic of china, after all. it is good that he is talking, because the communication has been the issue. senior guard said that there is basically a communication issue, the understatement of the year. he is the vice president, but he is not all-powerful. been led fromly

beijing with marching orders to dissuade the fears of the global investment community. swap -- is with carl klaus schwab of the world economic forum. he said that china would still be willing to intervene if necessary to make sure that the speculators in the market would not be dominating and making a bad party for these small mom and pop investors. but there have been a lot of these steps in the market, with the circuit breakers and forced iservention, or whether it crackdown on shortselling, or a which funds towards hedge funds in china. there is a lot of uncertainty outside of china, and this guy was trying to as wage those fears. assuage those

fears. rishaad: are there any crack in his view about the chinese economy? reporter: everyone knows there are headwinds in the chinese economy. he tried to paint a broader picture, saying they are blowing it between 6% and 7% annually, and they will for the next five years, he says. they will continue to be an engine of growth. here is what he had to say. translator: the world economy is now at a crucial stage in the shift of the force that drives -- that drives growth, and the chinese economy has entered a new normal. out thatg has pointed the chinese economy will grow more steadily and be more diversified. stephen: even he, the vice president, is quoting the president. we know the sentiment. but again, we heard from george soros a few minutes ago, and throughout the morning. he said there is a hard landing going on. what do you believe? rishaad: thank you.

investors have not been exactly what you call 50 when it has picky when it-- comes to the selloff. tim cricket has more from steve engle. he is right here with me. where we stand across asia? it is interesting from the discretion/indiscretion perspective. everything has been hit. asia is down more than other markets, but clearly the contagion effect from china to asia and beyond is there. clearly china is leading the parade on the way down. rishaad: is it doing so in a systemic sense, or securely sentiment? is clearly lot of it sentiment driven. it goes back to china specifically, down almost 20% or more, depending on which index you want to look at.

it is disconnected on a long-term basis from economic .eality in good times, the market crap, in bads times it can sometimes be huge. in this time around, the thetrend is different from volatility we saw last year. last year, it was the new economy, health care consumer stuff that let on the way up and got hit on the way down. of a speculative excess. the one thing that is fundamentally true this time is the worst-performing sectors in asia, or you look across many specific countries, are the cyclicals. it is a good old-fashioned micro cyclical concern -- macro cyclical concern. everything is down, but the least down are the consumer staples. rishaad: for the valuation in

growth, how does that play out? reporter: it is critical to think about all this dislocation. asia, at this point, is trading at 1.2 times pe to 2016 expected growth. times, sois at two better, higher expected growth now being discounted. china, korea, and japan are now at about one or below. they showed the lowest on that measure. health care, consumer, tnt show a list -- show lowest. it is a rebounding economy. where is the growth that has gotten hit? it is interesting at that particular measure. rishaad: thank you very much. quick look at other stories, softbank is now worth less than the stake it holds in alibaba. its market cap dropped to $49 billion, compared to a $55

billion interest in alibaba. this was triggered by concern about its stake in lossmaking sprint, plus the concern that it was not able to pay down its debt. the ceo is counting sprint's role in its 300 year plan, but softbank might now take a dive index monthly earnings report. stock is down in recent days, but having a fine time today in a rising market. dropping oil prices. third-quarter profit for indigo up 24%, about $97 million. the price of crude is helping. byhelping cut jet fuel costs about 20%, helping lure people onto the plains with cheaper fares. these are the first results since indigo listed in november. the u.s. department of agriculture saying that the world has been working less

orange juice in the last decade, and for -- and consumption will fall almost 5% in the current crop year. americans are drinking the least horseshoes since 1996. they have more to choose from -- orange juice since 1996. they have more to choose from now. economic growth makes it one of the fastest expanding markets in the world, but there are problems. timothy from bloomberg he was with me. good to see you. reporter: ask for happening me -- thanks for having me. rishaad: what are we talking about here? guest: i think there are a lot of reasons to be optimistic about vietnam, but there are also structural challenges to the economy. one is that the economy is still heavily dependent on chief exports and cheap labor. is still anem efficient. the biggest challenge is that the government is still heavily involved in a lot of industries, which leads to a lot of distortions.

rishaad: like china. guest: correct. rishaad: tell me something, why are investors so bullish? guest: there are plenty of reasons for optimism. the economy is going quickly and steadily. exports are surging. there is a lot of foreign direct investment. i think there are some interesting new startups, particularly in technology, so i think there are a lot of strong advantages. rishaad: it has not been immune to this selloff we have seen, but 10 years since its return. a newe something, we have leader coming in, what kind of economic landscape are we looking at? guest: i think they have two major advantages. one is demographics. fiannang like 60% of the mise population is still under 35, a major advantage -- vietnamese population is still under 35, a major advantage. second, the trade deal will

benefit the amount usually in the next few years. the world bank believes it will increase exports by 30%, economic growth by 10%. i think both of those are set to put vietnam's economy on a stable trajectory for growth in the next few years. rishaad: timothy, thank you very much. details, afx's multicolor deal to speed up settlements. this is "trending business -- multi-dollar deal to spend up -- speed up settlements. ♪

reporter: china and egypt have --ned investment the work investment deals worth up to $18 billion. the projects include development of the suez canal, as well as egyptian transport and infrastructure. -- support was also

repeated for the chinese palestinian state. the chief flies to iran today on the final leg of his middle east to her. visa rules have taken effect in the u.s., restricting dual nationals of iran, iraq, syria, and sudan, and anybody who has visited them in the last five years. the rules are part of a new anti-terrorism law. people from 38 countries are currently given visa waivers. the state department says that people -- exceptions will be offered on a case-by-case basis, including for diplomats, journalists, and humanitarian workers. south africa has reported a small drop in rhinoceros poaching for the first time in a decade. the government says 1175 runners were killed last year -- right knows were killed last year, fewer than in 2014. demand for a ride aboard continues to climb in asia, where it is worth as much as

$95,000 a kilo. south africa has the world's biggest population of black-and-white rhinos, estimated at around 25,000. global news 24 hours a day, powered by 2500 journalists in more than 150 bureaus around the world. the bloomberg news room, i be yvonne man. -- i am yvonne man. rishaad: a $2 million deal was signed. -- $10 billion deal was signed. this uses the same technology as the coin, to allow real-time speeding up of settlements. is the first to agree to run the system. >> the process between now and next six to 12 months working with afx and others is going to be used to take what are currently prototype concepts you exist, technology that can play with and see, but convert those into something

that is production ready in a real-world environment. let's get more from the chief executive, joining us exclusively on the line. tell us how this would work. guest: for us, it is an opportunity to work with our clients, investors, and intermediaries to bring in our bring enormous efficiencies to the market. as was said, it is an opportunity to bring a single source of truth. enormousd move onto amount of time, risk, and costs. the system is currently very fragmented. rishaad: that's the point here, isn't it? who with the counterparties be? about the nice thing australian environment news is that we have exchanged providers.

that means between 100 and 150 counterparties are connected to us already, so that is very important because all of these technology developers are not just about technology, which in some ways is very straightforward, it is about bringing regulators and clients along so that you can actually something in a very large financial market today. rishaad: big lots chain needs all those counterparties to sign things. -- the glut chain needs all these counterparties to sign things off. a lot of transactions, surely? -- a lot of the counterparties have committed to us already. that this is a 20-year-old way of doing things. what we will do together is collapse a lot of the cost and risk today.

the example aortic gave you is, today we can trace down in microseconds, but it takes three days for an equity trade to settle. that should be near time if that is what the investor wants. .his creates a promise but how close can you really did it in real-time? guest: the purpose is to give investors choice. if you and i are just retail investors, i would like to be able to share set -- sell shares and walk to the nearest atm for money. if you are a day trader, you want to settle at the end of the day. here is that we have smart algorithms, as opposed to a 20-year-old convention that

took three days for everyone. rishaad: of course, one of the big concerns these days is the threat coming from cyberspace. tell us about the security measures you are going to have to put in place will stop with the block chain -- put in place. with the block chain, which will have counterparties getting involved, how do you protect them? guest: the beauty of the technology in many ways is much more secure than the way markets operate today. the reason that is the case is that each individual transaction is highly encrypted. the database itself is highly encrypted. but more importantly, the only way you could alter the database ,s by trading new transactions a new train of transactions, because the database itself, the history of the database can never be altered, and that is quite different from a database today. if you make a mistake today, you can change it, which means a

hacker can change it too. under a book chain, a new transaction undoes the mistake. means records forever shared by others and entirely encrypted. it is more secure than just about anything today. rishaad: thank you so much for joining us. afternoon your time, morning here in hong kong. the ceo of a sx -- asx talking about block chain. is china deliberately devaluing its currency? some don't think so. we will get back to the economic forum in davos. ♪

♪

rishaad: we are back. tona is still contributing global growth and not falling off a chris -- off a cliff, but we talked to someone who gave his take on china's role in the current volatility when it comes to international markets. >> the markets had reached a level where people were asking, when is the correction coming, and on what basis? i think china is a trigger. oil prices are a trigger. trying to find on appropriate level. they have been inflated. we did have volatility. a lot of people are expecting volatility. the question is, at what level does it settle? i think that news coming out from china has not changed significantly over the last few weeks, because there was a certain change in the renminbi fix, but authorities have gone

out to explain that this is not about deliberately depreciating the renminbi, but really about adjusting to the new basket. prices is another ,ssue that, with the low prices who are the players that are exposed? what happens to the countries that are exposed because we know that countries like venezuela already have problems. there are these uncertainties, but i think they are a trigger of already high levels to asset prices. rishaad: can i ask you about china? what can of numbers do you expect china to grow at back of -- grow at? what is the sort of number you are looking at? the question is, do you focus on the official numbers or what people are putting together? my sense is that there is underlying growth in china. it is not falling off a cliff. rates of 6%ficial

to 7% -- >> i would go with that, but the real question is, what does this imply for the paris -- for the various commodity markets? in terms of the quantity of still a lot ofs growth coming from china in terms of dollars. of course, percentages are falling over time, nationally to be expected of an economy that is growing richer and will therefore slow, so i am not excessively worried about chinese growth. the big question is, how does this play with leverage? the facebook page of taiwan's president-elect has been flooded with tens of thousands of pro-china comments. atry ahn is having a look this. what is going on? it is coming out of china itself. shery: it is, they are bypassing those well-known internet controls. the president-elect is well known from being a member of the

opposition party, less friendly toward china, and chinese people are not happy, so they organized a campaign to bypass these internet controls and get into these normally for bid and overseas sites, such as facebook -- for bid and overseas websites, such as facebook. overseas websites, such as facebook. population oftire taiwan? 23 million, so you can about it -- you can imagine how huge this attack was. one post had more than 2000 replies. rishaad: thanks. what specifically have they said? shery: they are expressing displeasure. honor the motherland, love the motherland, and shame on those that don't. liberal views, then. thank you very much indeed. that is "trending business." stay tuned. "asia edge" is coming up. what do we make of it all?

we will discuss with andrew suarez. bloomberg "asia edge" coming your way after this very short break. ♪

>> from our studios in new york, this is charlie rose. rose: we begin with wall street and global markets. another volatile day for global markets. points.jones down 249 the index has a ready retreated more than 9% this year.