anchor: asian futures, good game today on the bad of positives. -- back of positives. anchor: losses for toshiba could reach into the billions. hackersalleged saudi trading on stolen information. respect but no apologies. abe visits pearl harbor. this is the second hour of

daybreak asia. i am yvonne man in hong kong where it is just past 8:00 a.m.. liu.r: i am betty we have come back from hour-long christmas break on the markets are delivering a little bit of a gift to the bowls. we saw technology stairs -- shares giving their list, but no cigar on that doubt 20,000. yvonne: industrial outlook looking pretty healthy right now. close to two years. we will see how this plays in the japan open. david buss has more. gles has more. trade to bexpect thin. we are looking at gains as we

wrap up this year. let me give you an indication of what is happening in australia. australia is very much a risk appetite sort of story. if you look at the things that have been bought up in this market, six out of the last is the mining stocks and energy, to a lesser extent. some group right here is really leading the gains basically. some of these at names, 2.7%. you go through the list, these are the biggest mining companies . some of these guys basically, in the world. gold also in play, very much. $11.40 an ounce. where we are for dollar yen, have a look at the open in japan, not much reaction to the data, but again, very positive. be tell trade, highest since october 2015 and industrial production, preliminary highest since march 20 14.

nikkei 225, here we go. that is the open. at one point, i don't remember exactly when it was this year, or the year ago, we were talking about 20,000 here for the nikkei. we'll have to talk about more. we are looking at a little bit of weakness there. have a look at the south korean .arkets, just a reminder every single market in asia is open today. 2024, a little bit of weakness. of the top currency trades are that you can make. on as weon dollar w get into next year. the south korean currency against the u.s. dollar. the big picture, talked about australia, japan, and south korea is getting sold off as well. ethics 200 seems to be doing the heavy lifting. let us wait and see how hong kong opens up and tilts the tide

, the beat. yvonne. ingles, thank you. a pretty tough day on tuesday. the most in 18 months. they write down at its west in-house unit in the u.s.. the reports about the sizable with onell vary putting it as high as $4.3 billion. let us bring in -- good morning to you. what led up to this. ? while, you know, 10 years ago, nuclear would looking a lot better than it is looking today. inushima disaster happened 2011, and since then, toshiba's nuclear unit has been going down the gutter, basically, but also, last year.look at ye

this is just adding more insult to injury. the reason behind this charge is a little bit complicated, but you put it simply, it is because westinghouse's nuclear units being built in the united states are just costing more money than they thought they would. they bought the construction unit last year that were building the westinghouse units to get them just to go forward getstop this delay and to these overcharges, which were on top of almost $2 billion through, but now, it is looking like toshiba will have to bear some of those costs. it is definitely going to hurt their bottom line. anchor: ok, so what does this charge mean? it is a big charge. what does this mean for their balance sheet, then, steve? what all the is investors are worried about. they said the charge will be in the billions of dollars.

according to the analysts i have talked to, there is a big difference between $1 billion and $4.3 billion, so if it is $1 billion, they have enough cash on hand to survive this and get through and their nuclear business might be able to increase or do better, but if it 4.3 billion dollars, they might have to go to a bank, get more money, rethink their entire strategy, you know, it is a lot of money to deal with, so there is a big spectrum of different outcomes, but we are not going to know. toshiba does not yet know how much it will cost and they might not know until february, so there will be a lot of guessing in the market, and it will definitely push the shares down in the near term. anchor: for their nuclear ambitions, i mean this is a huge write-down. what does this mean for their ambitions going forward in the nuclear space? well, it is going to have two effects. first, of course, their reputation is going to go down.

the reason they are taking this charge is because westinghouse reactors are over cost and take a lot of time to build. if you are india or china or any other market that is building nuclear reactors right now, you have to look and say, "why would we buy a westinghouse nuclear reactor that is causing all these massive write-downs on their parent company when we come by a chinese nuclear reactor that it's 50% the price or a russian reactor where we know the russian government will back us up with financing?" toshiba, by taking this write-down, will have less cash, less ability for them to finance the deal. it hurts them from both sides. we will not know the full brunt added upil they have the full cost of the write-down in the next few months. anchor: so much more will be cleared ahead. thank you, so much, steve. let us get to first word news with sophie kamaruddin. tesla is teaming up with

panasonic to make solar cells in new york state. production is set to begin in the summer and may bring 1400 jobs to the buffalo area. says it isasonic footing re than $250 million into the project. tesla is extending its manufacturing base in the u.s. and the lawn elon musk -- prime minister shinzo abe visited pearl harbor, the first japanese to two or the site of the attack -- japanese prime minister to tour the site. his visit matched president obama's trip to hiroshima earlier in the year when he of adopting an atomic bomb on a city. the u.s. says it is not object to -- 19 not a call miles south of the island on monday in a routine training exercise. washington responded by saying the u.s. recognizes lawful use

of international waters and the same freedom of navigation right to play to china, and other nations. carrie fisher, best known as her has diedprincess leia, at age 60. she suffered a heart of hack on a flight. in addition to a role in star wars, she appeared in films including the blues brothers. she is survived by her daughter and mother. 24 hours a day, powered by more than 2600 thomas and analyst -- journalists and analysts, in one and 120 countries. has charged three alleged hackers for breaking into servers of top law firms in new york, trading on stolen information from these firms. one of the accused has been arrested in hong kong. my joins us. >> first, you think it is that

enough people will be insider trading, but now it is a stealing and insider trading. they are basically being charged for two things. one, for hacking, two, for insider trading. ramy: $4 million is what they got an illicit profits by breaking into corporate law for -- law firms. seven law firms are involved here. what was unveiled was at least three hacks against three public companies. one was with intel. another is with intermune, a buy biofarmompany -- company. those hackers in 2015 bought shares and another company called altera. law firmhacked into a before that and this law firm forbeen retained by intel

acquisitions services as they looked into a possibility to acquire altera. they made $1.4 million as that share price rose on media reports of air and they sold the shares before the deal was announced. another company with pitney bowes, hacked before it was publiclyd in at least announcing it wanted shares in an e-commerce site border free. those hackers made about $800,000 in 2015. that deal did not close, but they still profited from the share price moves that happened off of that. anchor: we have learned these three alleged hackers worked together in the companies. how did they pull the selloff? -- pull this off? ramy: they worked in macau and hong kong and they got together and they were looking for holes in these law firms, and all it took was for one person to be breached in terms of their login

credentials and their password. after that happened, then these folks placed malware onto the server of that law firm which let them access the emails and server itself through other companies executives. he looked over the data for useful info and extracted that and said this company is interested in doing this, let us uy that company -- b company and profit off of that. in some ways, they were successful. in other ways, they were not successful. in 2014, in just one day, they apparently made off with 10 gigabytes of confidential data, but in another six-month timeframe, they did not make any success whatsoever, but we know they have been identified, charged with hacking as well as insider trading. yvonne. yvne: ramy inocencio, thank you. shinzo abe makes an historic trip to pearl harbor. , on thehave details

first visit of the japanese leader in more than 50 years. bva, this is bloomberg. ♪

betty: this is daybreak asia. i'm betty liu in new york. yvonne: woolworth jumped at the open in sydney. gaining about 1.5% after agreeing to sell its gas stations to bp in a deal worth 1.2 billion u.s. dollars. bp will take on 500 woolworth branded outlets. the funds will shore up will worth's balance -- woolworth's balance sheet. betty: they are deepening with deliveries to top customers over

the next two years. handovers originally planned for shipped --18 will be 2018 will be shifted to a year later. the airbus still plans to deliver about 12a380's through 2018. innne: economic improvement the quarter with gains across all industries in the beige book. at the new york private survey found revenue profits, jobs, and capital expenditures rose for the third period on new orders for stable. growth metrics in the world number two economy gained virtually across the board with on your improvement described as dramatic. let us assess all of that right now and with china's challenges as well, carlo casanova. good to have you. we already see the economists raising their forecast for china 2017.

you are not as optimistic. i want to get your take on that. why? >> we feel like it will shift away from long-term reforms and words stability in the short term. the authorities have been very good at engineering a recovery in 2016, as we have seen, and growth will be you way above theet, 6.5%, however, policy levers they have used to growth have been asked. they will have a harder time balancing between growth and stability. anchor: we already read from the president last week saying he is willing to assess a little but the flow of growth below that target of 6.5%, so how much lower could they tolerate, do you think? carlos: they already cannot expressing that he would be willing to tolerate growth beneath 6.5%. seems to be target

6% to six point 5%. the economy will grow by 5.8 percent in 2017. we have seen a lot of movement on it comes to volume. let us throw up the chart. $34 billion worth of average transactions that we have seen of late, so it is suggesting that the outflows are speeng up. how significant is this? the x factor for 2017 china? carlos: we believe this is one of the factors that we have to keep an eye on in 2017, together with the housing bubble and the .moreg corporate debt pressure in the u.n., particularly if the fed is more aggressive in 2017. we expect it to converge for 7.10 by the end of the year. anchor: it seemed like that is the case for everybody, that they see us to be above seven against the dollar. how significant is breaking that seven? what does that signal for china? carlos: it is bad news for china

in that it could trigger more capital outflows. we have seen over the past couple of months that the authorities have implemented capital controls, tightened the screws on the capital account. we think that they will have to do this going forward or they will risk increasing amounts of capital outflows and have already burned through about 1000 billion in fx reserves since august 2014, so they have to be very careful or that will be depleted very quickly. anchor: may have typed in capital controls already, had the stronger than expected fixings for the yuan as well. moving forward, do you think they will respond more towards liquidity or about the devaluing of the currency? carlos: the u.n. has tually been stable against e currencies, so there is speculation now that perhaps it might of a stronger u.s. dollar, the authorities might move basket, targeting

that basket and trying to move the discourse away from dollar course,tion, and of they have to be very careful about engineering that liquidity in the system. too much and some bubbles could become toxic. too little, and it could be a crash. that is the challenge next year. anchor: let's talk a little bit about the housing market. you are downgrading your growth for next year in china, and i am wondering how that is going to affect the residential housing market where some people say it is looking very much like a bubble, and i wanted to pull up this chart that we have here on the bloomberg that shows in certain areas in beijing, in tangent, in shenzhen, -- tanjin, shenzhen, in shanghai, all of over 25%, more than they were a year ago. that is a real huge mountain that we have seen this year. bubblew, is that

territory, and is that going to pop in 2017? carlos: yes, that is a very good point. again, we saw an update in real estate activity in the second half of 2016, and i was one of the large contributors to growth in 2016. we have asset bubbles in first and second tier cities like you have mentioned and the authorities have actually moved in to implement regulations that try to curb the rising housing prices. this means that real estate avestment will not be such significant growth factor in 2017 and growth, it remains to be seen whether the housing bubbles will burst as a result of these measures. the authorities are much more comfortable letting that sort of happened because they needed more growth momentum, which now is tolerating slower growth in 2017 read it is most likely they will continue to implement further controls. anchor: all right.

we will certainly watch for the impact overall on the economy. carlos casanova, thank you so much. in economist at bbva on the outlook in china. upla and panasonic teaming in a deal that is expected to create more than 1000 jobs in the u.s.. details, straight ahead. this is bloomberg. ♪

yvonne: this is daybreak asia. i am yvonne man in hong kong. betty: i'm betty liu in new york. productions that he began in the summer and may bring 1400 jobs to the buffalo area. here is our reporter, down a dana.-- why did the stock react? notice.d it was first announced in october. the deal has been finalized. the statement said that

panasonic is actually investing in a capital cost of the buffalo facility and then tesla will buy the cells from panasonic. we are seeing movement upward in the stock based on the fact it is de-risking it a bit of panasonic investment. thatr: this this signal may be perhaps this relationship is also deepening between tesla and panasonic? carlos: -- i think so -- you i think so.> they are building batteries for both upcoming model three and the storage devices. the tie up is also around the think thats, so i you are seeing a deepening of the relationship between these very different companies. what is the product roadmap looking like for 2017? busy year have a very ahead. the big thing everyone will be focusing on is the model three, which is the more affordable, late intric sedan, due

2017. they are planning on building a solar roof and panasonic's technology will he part of that. they are working on a semi truck and transit us as well. about tesla'ss ambition and solar. we have been talking about all year, his acquisition of solarcity now and learning more about the relationship with panasonic. what is ahead for tesla when it comes to this field? is a solarcity installer. they were primarily in the residential do not make the solar panels themselves. solarcity had acquired another company called stalevo to work on solar technology. it seems like with panasonic in part of the deal, it is come of like the technology working with panasonic to actually manufacture the panels in buffalo, new york, and this gives tesla a broader manufacturing footprint in the united states, so they have the auto plant in fremont, california, the giga factory in nevada, and the solar facility in upstate new york.

it is interesting as we are coming to a political year where donald trump is talking about manufacturing jobs where you have tesla with three fairly large many fretted -- many capturing facilities. anchor: thank you, dan a hall, joining us live. .arkets trading we are seeing the japanese stocks as well as korea selling off. the kospi down 0.7%. production, the highest and close to two years. that is reflected in the stocks today. take a look at solid gains up 1% on the asx 200 right now. betty: of course, watching toshiba shares as they come online. meanwhile, condolences, but no apology. japanese prime minister shinzo abe pays his respects at the pearl harbor memorial.

this is bloomberg. ♪

anchor: a beautiful day in tokyo. breaking news. toshiba trading. it is falling. 20% right now after the company said on tuesday it may have to write down billions of dollars of worth related to acquisitions made by its u.s. unit, westinghouse electric. this was geared toward completing the newest iteration of reactors at two u.s. facilities. these projects are years behind. billions of dollars over budget. more woes when it comes to the accounting problems for toshiba. shares down close to 20.5%.

i am yvonne man in hong kong. betty: it throws a wrench in any inns on nuclear expansion the u.s. given the meltdown in the stock price and also this deal. i'm betty liu in new york and you are watching daybreak asia. let us get to the first word news with sophie kamaruddin. u.s. authorities have announced the arrest of a suspected chinese hacker who allegedly attacks top new york law firms. onwas detained and macau sunday and is awaiting extradition. the indictment says he and two others targeted seven major law firms, making $7 million in risk profits. hong kong being sued by the fcc for seeking an asset freeze. producer toest zinc cut output. it's planned for february will be adjusted according to market conditions. zinc has rallied. morgan stanley has flagged

potentially for production cuts in china due to the lack of materials. raised at the pressure on -- h ofg him for a breec confidentiality. business strategies related to india's biggest conglomerates. he violated his responsibility. toshiba is plunging for a second day after forecasting a loss at t billions ofhhe bigges dollars. arguments over any nuclear projects in the u.s., which are years behind schedule and over budget. determine theto final write-down amount, but it could be as much as billions of dollars. many affect our earnings. we apologize to all of our stakeholders on this matter and i would like to ask your

continuous support for us. news, 24 hours a day, powered by more than 2600 journalists and analysts in more than one hundred 20 countries. i'm sophie kamaruddin. this is bloomberg. marketsa check on the trading on this wednesday morning. here is david ingles. it may affect our earnings. ok. have a look at markets right now. 1% gains in australia. mining stocks getting a bit up at the moment. up 2.5% as a group so that is a fairly heavily weighted group in sydney. flats in new zealand. pushing towards extremes for that market at least, i mean, as far as the magnitude of the amount of time it took us to get here, seven days of straight gains for new zealand. japan turned lower at the moment. it could be down to the fact that toshiba is down, pulling the index down. points are waiting when it comes

to how big that drais, but that being said, that started trading and then the markets flips. zero .9% down for south korea. a quick check on the bond market in japan. you have a quote right now on the 10 year treasury and 10 year jgb. let me get this up and reflecting 56 should be here. 2.88%lia on the way up at . illustrated at .21%. when you look at the spread are looking at 235 basis points, record. have a look at this bloomberg chart to illustrate how quickly this gap actually widened. both sides of your screen take you all the way back to the last five. that is the spread between tenure treasuries and 10 year bondyields.- all these extreme play out

into 2017. at some point, does something keep market honest? as we look ahead to the next few months. anchor: we are watching toshiba and how it continues to react to this news, but what other big stocks are you following today? absolutely, betty. toshiba is down. the only reason that would move, ifomeone tries to buy it up from these levels, so that will be interting tsee. we will talk more about that later on. woolworth's is up a little bit today with more on that deal it did confirm that was looking to solve gas stations to bp, in australia. $1.2 billion, and when china opens up, this is one-stop i will be watching very closely. producer,biggest coal one of the biggest energy producers on the chinese mainland. this comes in the back of news

this morning that china is looking to limit output, coal year., substantially next that has really been a substantial story as far as how it has really moved the whole price -- the coal price. it was a spike when china was limiting the number of these days the coal mines could operate in china. they are looking to take that further into next year and obviously what analysts have been saying is you look at the benefits from more output cuts in the coy industry. betty. betty: david, thank you so much. as you saw earlier, japan output up. rosalind chin is watching the latest reaction to these numbers slewt is the latest in a of data that will be coming out this week in japan, right? rosalind: that's right. a lot of data coming out of japan. we saw industrial production rise month on month.

slightly missing estimates. year on year, an increase of 4.6 percent against estimates of 4.7%. that is monthly increases, the most in five months, and if you look at this chart, that will show you the yearly increase and 6%t is in fact this 4.6 to rise in nearly two years. as you can see towards the end of this year, some green coming in there in terms of factory output year on year. what we're looking at is japanese ministry forecasting andut rising 2% in december 2.2% in january. exports are doing better so that should help production. in december, the export figures, volumes jumping by 7.4% in november year on year. exports to china rising for the first time since february.

sense of, in that things, exports should help production. also of course, the weaker yen, the stronger dollar after donald trump's win as president-elect, all of this coming together to help fuel industrial production exports, all coming together. 7%ail sales gained one point in november year on year. that is the first gain since february. anchor: metta stick a look at the japan data. it has been quite mixed. at theus take a look japan data. it has been quite mixed. are we still think optimism? rosalind: if you look at the numbers on their own, you would say yes. for japan was actually down 0.4% in november from a month earlier. stripped of your prices and that is on the boj takes as it a key measure. spending down by 1.5% from a year earlier in the jobless rate remaining tight.

up very slightly from the percent. where is the japanese going? is it coming or going? that is stronger consumer sentiment. recent survey shows increasing optimism as well looking at the futures. it looks like there is increasing optimism in japan, even though these numbers that are coming in may not immediately look fantastic, but economists are saying as we go along, core inflation coming in in the months to come. anchor: thank you for the wrap up of the japanese data. prime minister shinzo abe has visited pearl harbor, the first japanese leader in that it to tour the site. he paid his respects but did not apologize for the strike. president obama, the people

of the united states of america, on the people around the world -- and the people around the world, as prime minister of japan, i offer my sincere and everlasting condolences to all the brave men and women whose that were taken by a war commenced in this very place. also the souls of the countless people who became victims of the war. anchor: all right, let's get more now from tokyo. good to see you. tell us about the significance of this visit from shinzo abe and how is it being received in japan? sure, well, initially, when this visit was first announced, we thought that abe was going to be the first sitting prime minister to visit pearl harbor. subsequently, we found out, that was not true. several other ministers visited, but it is a significant move for the japan u.s. alliance to go and give a speech at the

memorial site. in some respects, he is the only person who could carry out this move, given his very high popularity and given his relationship with obama, and also his strong nationalist tendencies. gearoid: the move has been very well received in japan. polls are trying more than 80% approve of the move and it obviously follows obama's visit to hiroshima earlier this year, which was also extremely well veryved, so it is a significant step, and a think ultimately, what is going on here, is you're trying to see abe draw a line under some of these historical issues and move forward to bolster the japan-u.s. alliance. anchor: what did the japan prime minister say today? gearoid: at the top of the segment, he did not directly apologize. that was well expected.

that was not the kind of language he would use. he did, however, offers sincere, lasting condolences. he gave a speech as well. he vowed never to repeat the homers of war again, -- horrors of war again, i typical statement given in the kind of speeches, but it was quite an elegant step to draw the line under this issue and to offer condolences in the best way that he possibly could. anchor: and where do ties between the u.s. and japan go from here, particularly with the next president? exactly. as with so much else in the world, it all depends on what the trump administration chooses to do. abe had a fairly solid relationship but not exactly, you know,ery warm relationshi with president obama.

with president-elect trump, he moved very quickly to meet with trump after his election victory , obviously, because there was no relationship there. the report right now saying he is going to go visit him again after the inauguration. abe seemed to take pride in being the first international leader to meet with trump after but itction victory, totally depends on where trump chooses to take the japan-u.s. alliance and i think abe will do his best to secure it and keep moving forward. anchor: all right, thank you so visit to pearl harbor. up next, hong kong was the number one venue for share sales and like 16. will the city be able to keep that title next year? we'll discuss some of those challenges, next. this is bloomberg. ♪

anchor: this is "daybreak asia," on betty liu in new york. yvonne: i'm yvonne in hong kong. fitbit gained the most in three month after becoming the most downloaded free app in the apple store. shares jumped more than 7% purity mobile app topped the charts over the holiday. a wearable health tracker was a popular gift. last month, fitbit was downgraded after cutting its sales forecast for the season, but it's latest success may ease worries about its growth. anchor: delta airlines and boeing had canceled a contract. 780 seven model. it was taken on by delta when it bought northwest three years later. details on the cancellation have not been released, however delta said it will take delivery of new boeing 737 900 jets through

2019. yvonne: no asian billionaire has done better in 2016. has risen 4.9 billion dollars, a jump of 52%. soaredfited as mittal along with the price of steel. alibaba jack ma is worth more than twice that. betty: a good year for the billionaires in 2016. [laughter] anchor: there is a lot of billionaires in hong kong and saudi arabia. saudiong set to host the aramco ipo. the city should keep the title as the number one venue for share sales in 2017 however, with limited tech deals coming up, investors should not be getting too excited in hong kong. bloomberg gadfly columnist -- is that surprising?

>> in a way, yes. when you look at it, hong kong raised around 25 billion dollars, and new york, just 14 billion, so it is a big difference, but at the same time, hong kong is home to a lot of company listings from china, and these listings are huge. for instance, postal savings bank of china rates all went $8 billion, so that is a lot of money. you don't see a lot of those big listings in new york. betty: but what about the tech companies? china has produced loads of them, so why aren't they listing in hong kong? nisha: i think part of the reason is that hong kong does not have that investor base of tech investors but part of the reason also is that hong kong offerings.low share an owner can on a small state and still control the company. if you do not have a profit top record and you're not big

enough, you cannot list in hong kong, whereas new york except those kind of companies. anchor: what about aramco? you have a lot trying to get in on this, new york, hong kong, japan. how are they going to try to fight for this? beha: there is a case to made for hong kong more than japan. japan has seen lots of companies leave the exchange there in recent years, such as citigroup, listed until this year. but hong kong, i mean, has also seen a lot of companies do badly, for instance party a was listed -- pardia was listed here. the case is not that strong for aramco. nisha: great to have you, joining us from bloomberg gadfly. consumers finally saw some highend hardware. a special report, next. this is limited. -- this is bloomberg. ♪

anchor: this is daybreak asia. i'm yvonne man in hong kong. in newand betty liu york. singapore could turn out to be a bellwether for distress across all of asia. more companies throughout the region are expected to face growing debt problems as the new year unfolds. here is sophie kamaruddin. this sounds pretty gloomy. why is it so dire next year? sophie: betty, it would seem

singapore has claimed the role of canary in the mine. they have defaulted on bonds and this could be a hint as to what may face asian corporate next year. taking a look at this chart, $76.4 billion of bonds are maturing. that is 24% more than this year. think verse in asia, so we are looking at of course, an increase given the commodity price downturn, so that is impacting sectors like inergy. we are expecting the drug to white into the property sector. inking at economies particular, indonesia will be one of the top markets that will face restructuring next year. more distress likely out of china. too pretty,looking especially when it comes to singapore, given that it is most affected to the downturn in trade.

sophie: we are expecting the economy to post the fullest growth of any southeast asian economy and it is grappling with its weakest growth since 2009. the onus has been on other economic drivers, which is pushing them, authorities in singapore, to help defend its reputation as a hub. not only doesnne, it represent a string of defaults when it comes to the commodities space, it is also putting pressure on what we are seeing in financial space. the monetary authority of singapore, setting up its efforts to clamp down on irregularities. this earmarking the busiest year -- this year marking the busiest. some of the world's biggest lenders. it has seized assets. these are some of the actions being taken by singapore's authorities.

there will not be any letup in 2017 as authorities there are intense to follow through on pledges they made in the middle of this year given the scandal around it. loomingmore dark clouds for singapore next year. thank you. 2016 can be seen as the year that virtual reality turns a corner. that is because long-awaited high-end hardware from oculus, acc, and sony finally hit the store shelves. debutsf a w -- have the lived up to the hype? >> the year the big three vr headsets hit the market. a surprise tor billion-dollar acquisition by facebook, oculus delivered its long-awaited high-end headset, the rift. the hype around this product was intense, some calling this the best new device since the iphone. >> this is a magical moment to see this much content at launch. it was one of the strongest

launch lineup of any platform ever. >> the price was quickly cited as an issue. it required a powerful pc to run, vaulting the total price well into the $1000 range. debuted the $800 -- who is selling point is an extensive software partnership. >> we built this in partnership with valve, who own steam. customers,5 million really hard-core gamers. people that already have that high-end pc you were talking about, that will actually use the vive without doing any kind of upgrade. ware could generate sales in 2016, running up the 2016 launches, the sony's playstation vr with what b might be the best market advantage. at 400 dollars, it is much cheaper than the others, and

instead of a pc, a can run on a ps4, which already has any all days of 50 million. one thing all three products have in common, they are all still waiting for market demand to catch up. >> we have yet to develop the vocabulary to describe it, the syntax and grammar. we are trying to design a environment where the idea of narrative, not so much linear, but all around you, creates a whole new experience and our designers are just starting to get their head around what sort of special features that allows. >> industry heavyweights are still in wait and see mode. all of the productions i have seen for vr continue to come down. >> in the end, and we have learned this through our own business. in the end, it is about providing consumers with that compelling experience that brings a particular form of technology to life. and i do not believe we have seen that yet from the are. >> while 2016 might not have been the year of the article, there is always hope for next year.

sales are projected to hit $4.8 billion in 2017. very cool. that is it from us. plenty more still to come. yvonne, we thought it was going to be kind of a quiet trade in asia, but not for toshiba, which is down 20% on that news about the big write-down on their nuclear acquisition. yvonne: it is really quite incredible, the news we have seen. it is adding onto the losses we saw yesterday, which fell 11% after that they meant was released. -- after that statement was released. it could affect their earnings. betty: that is all you need to hear. billions. yvonne: probably the most since 1974, i last check -- at last check. ♪

rishaad: this is bloomberg markets asia. write down all down, toshiba losing a third of its value. u.s. losses could be in the billions of dollars.