tv First Up With Angie Lau Bloomberg August 2, 2015 7:00pm-9:01pm EDT
visit philipslifeline.com/caregiver today or call this number for your free brochure and ask about free activation. >> action is expected. the pressure is on china. back to business. grease stock exchange opens after a shutdown to protect the economy. reece stock exchange opens after a shutdowndown to protecte economy. welcome to "firstup." -- live fromr from
bloomberg asia. checking on markets, let's head to new zealand new zealand to be gainingen for three consecutive weeks. the kiwi dollar has seen a falling for the last three consecutive sessions. down to thecounting opening in australia. japan's nikkei ending 3% higher. futuresand make a pointing to slightly higher -- futures pointing to slightly higher. manufacturing data coming out later today. an economic slowdown. the gauge slipped to a five-month low.
yvonne has been taking a look at this. it may be time to take more action. that it justsigns was not stable. market juste stock makes things more obligated. in july.pmi 50 anything above 50 indicates expansion. there are talk of fresh fiscal spending in the picture just to make sure china can reach that growth target by the end of the year. continuing pressure for the second half. numbers tosimilar the 50.
deterioration. it is facing more difficulties there. there is a measure of services and construction that turned out better than expected. the national statistics bureau saying they are seeing internal an extra not demand really not picking up. we saw some storms and commodity prices as well. >> it is quite interesting. easing is not really getting to them. we know that has been in contraction for quite some time. how is that looking? x we got eliminate the years.
better than what we saw. we are expecting 48.3 today. not that much improvement. still seeing a bit of a bum. >> thanks a lot. you can get more on the day's top stories at our digital destination. get more on bloomberg television. , going bloomberg.com after missing riches. less, struggling to survive -- plus, struggling to survive. that is on bloomberg.com. check it out. the greece stock exchange opened after a five-week suspension.
it was imposed to shield the economy from ruin. a little bit of a normalcy back in athens. what are we expecting? >> there will be a lot of restrictions. for any fivehold days. that is the longest time they have been on hold since the 1970's. there will be quite a lot of restrictions. .as been a bit of a slump i guess it hasn't been that bad. the restrictions will be on greek buyers and not bestsellers. stocksthat wants to buy are derivatives or warrants could use so-called new money. they really don't want the market to be manipulated.
halted. be certainly it is going to be interesting to watch. we're talking about the markets and the economy. let's talk about politics. >> 12 hours of talks. like they have staved off an immediate push for him to be removed from that position. the left-wing part is really upset with the fact that he took on this debt deal with
restrictions they didn't want to have. congress will be held in september. >> a tricky situation there. they are word about greece missing another one. >> yes. greece has to pay two point -- 3.2 billion euros by august 20. consider having another talk with greece. they might have to push that out once again. >> it continues. thanks a lot. we will be talking to the ceo of the athens stock exchange.
let's check in on the other stories making headlines. profits.an expected and shares surging on friday. to $1.5come arising .illion in the quarter of june it was propelled by the introduction of models. our profit gains progress at a faster pace than we had expected in the first quarter. we not revising the full-year outlook. that are uncertainties cost related to quality issues. >> for asia is asking for more .han $100 million in damages
the carrier claims problems at the new budget terminal has hurt its reputation and could cause delays and pose a safety risk. sayssia airports holding the claims are baseless and said it will challenge them. pimco once india to ease restrictions said it could buy more the country's fonts. rbi governor targeted inflation i raising interest rates could overseas holding of sovereign debt is capped at $30 billion. they asked them to raise the limit. ♪ australian city is
the center of attention this week. the mining industry meets for its annual conference now in its 23rd year. paul allen is there for us. almost 2000 mining industries make that trip. the sister old mining town -- historic mining town is one of the most isolated cities in the world. >> surely it would have been much more convenient. >> people like to visit the operations.
>> it is not just the delegates. industrial kitchens, food, and audio vision equipment come and the venue itself in the southern hemisphere. >> i'm also feeling the economic impact. good.is very we have delegates coming. we have several thousand people coming. most of the family are names -- some companies have stopped coming due to the after-hours entertainment. it is not reflective of our
values. >> i think the issue is just a side issue. >> it is an economic indicator. us live.oins you have a busy day ahead of you. this is australia. what is the mood light? >> it depends very much on who you talk to. one thing all those guys have in common is they have been having a pretty rough ride over the
past 12 months. perhaps it is the largest coal mine in australia. you might think the gold miners would be feeling pretty downbeat continuing -- considering what has been happening in australia. it has fallen at just the right moment. isn't too bad. they will be in a pretty good mood this week. >> inks a lot. we'll have more from the conference later on bloomberg. we will be to one of the a guess goal miners.
and the director of the national economic counselor in the clinton and obama administrations. one of thet miss biggest nickel deposits. a busy morning indeed. let's go ahead to south korea. $12.2 billion in june to see how markets react. coming up next come disappointing data out of china. we look at whether they will be able to fuel growth once again when "first up" returns. ♪
agreement in hawaii. they managed to overcome differences, but not a long-running sticky points. they're confident a deal will be reached at the next meeting. exchange -- detained in tokyo and accused of assessing the exchanges of computers in 2013 and inflating his accounts. a good face five years in jail. thousands of dollars were unaccounted for. beijing could unlock potential markets of 300 million people.
first to host the both summer and winter events. the city remains host despite concerns about conditions. most of the snow will have to be artificial. let's take a look at the week ahead. let me get started with china. pmi falling to a five-month low in july. do you think manufacturing could bottom out soon? i guess that is a tough call. we had some hard numbers. that long ago that production was growing. i guess there have been conditions now.
i daresay we would probably settle here. it would be fairly accepted by the markets. >> the u.s. banks and more government action from china. with this have any impact on the small companies? the numbers were not good at all. call.is a tough the outcomes. it is still not a great correlation between the pmi and actual activity. sometimes it doesn't really give us too much information.
i don't think it is as bad as it could have been. i wouldn't have been surprised to see a small contraction. it was particularly dire and 48.2. a suspect the markets have opened today fairly comfortably. the bigger news was the week wages report out of the u.s. on friday. news.k that is a bigger we have the rate decision tomorrow in australia. there's overheating property markets. >> it is facing what the
currencies are facing. they are struggling with the collapse in oil. they're looking at us chillier. it is your turn to cut interest rates further. we do know that it is very reluctant and taking a long time to come down. i think the bars are very high. whether it is -- i think it will mention two things. ofhink we'll get an update the growth and inflation projections.
>> the wings that washed up on the beach have arrived in france for testing. the missing malaysia airlines flight is the only such play known to be missing. p at joined by professor his team used settling data to predict where debris from the missing plane may wash up. thank you for joining us. if the debris is confirmed to be , would beh-370 certain the search efforts are concentrated in the right area? will this help and mapping out where the final resting place of the plane is? data that we know from computer models and the current see that's currency of the indian ocean is finding this wreckage is completely consistent with the existing
search sites in that eastern india ocean. if it is can start best forirmed, they're looking it -- we could confirm that they're looking for the wreckage in the right place paid we are using reverse tracking to locate where it may have originated from. it has been more than 500 days since the crash. large error in a the system. there is an uncertainty when that debris washed up on the beach as well. all of that makes it quite hard. it doesn't allow us to do anything accurately. >> the debris could not help
pinpoint the location of the plane. what can you tell us? >> it gives us confidence that we are in the right place of where we're looking for the wreckage. we are hoping that we find it. i will be asking that question when we come back after the short break. do stay with us. coming up next, beating slowing sales in japan. details when "first up" continues after the short break. ♪
coming in at exactly 50 last month. the weaker than expected number puts pressure on the government to take further action. tenet leadership has pledged what it calls preemptive policy adjustment in the second half and is preparing fresh fiscal spending. we will keep a close eye on honda later. friday.urging on the net income rising to $1.5 billion. 30%.and sales rose by the greek stock exchange opens after a five-week shutdown to shield the economy. talks it broke down in june. they won a third bail out.
they dropped 18% over the previous month. , werer in the program talking with the missing malaysia airlines jet. guest.et back to our thank you for holding on with us . i was asking about the search area. do you think it should be expanded? you to realize we have a single piece of debris. this enhances the evidence for moving toward. >> how good the debris have gone to reunion island?
>> the currency in the indian ocean forms and anti-clockwise direction. bass -- this is a very common feature in oceans. this is the center of the indian ocean. it is an area of [indiscernible] it is what we know about the system and all of the information and our knowledge. >> you mentioned the 2011 tsunami in japan. it is hard to rely on the current models in order to pinpoint the location on where the degree might have
originated. be tofficult will that retrace in order to get an approximation of where the plane is? very difficult with a single piece of debris. we don't know the actual time where it arrived at reunion island. modeling.o reverse in that case, it does not really going to help to pinpoint the area where it may have originated from. >> thank you so much for joining us. it is time now to buckle up again. chinese markets will be kicking off what analysts predict will be another roller coaster week.
here is a preview of what we should be watching. another violent we? >> something to talk about. we are at 3600 more or less in the shanghai composite. note.ailed out a it is a battleground over the short term. i'm starting to get very technical. were we were -- as you can see we were stuck in that range. look at the current levels right now. it is more than upside is what they are saying.
defend that level at all costs. now.right there we go. just do the math. these are the rules of engagement right now. >> we are hearing of these new rules that would be put in place starting today. >> yes. that is something to watch, the futures markets. tradingl be lowering fees. it will squeeze out speculators. mass incentives. .hat is something to watch >> thanks a lot. let's stay in china.
data, are we expecting more traction from china? thane economy is softer one people saw. peopleore than anticipated. it will not take away the core strength. lot.anks a is a different story for honda. thes are surging 30% in first half. here's the background to all of that. what an interesting development here. quarter.difficult
it beat estimates. it moved forward in china. will it last? that is the big question. and you saw the reaction. how far will it last? that is something that honda and remember. they have repaired their expectations among chinese consumers. >> and you keep asking, will it last? they don't think it will continue.
the slump in oil is heating some of the industry's biggest names. they saw profits plunged to its lowest in 2009. that is despite both companies cutting costs. forecast anded its pushed oil to a bear market says the middle of last year. and offering to help the mining industry. they're searching for elements that could showed new discoveries. last year, mining companies uncovered the lowest number of major discoveries in 20 years as a titan exploration budgets to cut costs. that is a look at some of the top headlines this hour.
>> welcome back. let's check on some of the stories making headlines around the world. at least 47 people are known to have died after unusually heavy monsoon rains. look immediate says 20,000 homes have been destroyed at least 200,000 people directly affected. the government has been criticized for reacting to slowly. at least 1% has been killed and 12,000 evacuated as wildfires rage across northern california.
buildingsand other have been destroyed. a state of emergency has been declared. firefighters are trying to detain the flames. fires are burning out of control in oregon and washington state. a second american tourist has been approved of you legally hunting a line in zimbabwe. they killed a line with a high-powered bow and arrow. transpacific partnership negotiators wrapped up talks in hawaii last week without reaching an agreement. there are remaining sticking points for the 12 nation deal.
you. so great to see let me get started with this meeting. how disappointed are you? that trade is politics and all politics are local. that became glaringly obvious. if you other issues really came down to not getting an agreement before the meetings adjournment. we were disappointed. .ut it is still alive we hope everything could be worked out. >> why were these issues dealt with earlier? ask that is a good question. greement across 12 very dynamic economies. we were is appointed, but i
think it is still alive. there is determination among these ministers to overcome in figure out what they can do and come back around the table hopefully by the end of august and solve these remaining details. time to gete them this task? right.are the more we push us into the presidential cycle. there are very interesting dynamic there. and it had elections. for thet just turkey u.s., but several members of the negotiations. >> how determined that would this be for the obama administration given this is a key in their policy towards asia? >> it would be very distant pointing for the region.
we support american commerce. school. it is a level the playing field. it would be disappointing. >> we are hearing when it comes to auto parts -- still the deal didn't happen. what led to the complication? >> this was never owing to be easy. there have been negotiations going on for quite some time. i think some worse of rise -- were surprised. there was disappointment that are is more work to be done. the japanese
minister that he does have to come back around the table and the end of the month. >> u.s. drugmakers one 12 your yearction -- 12 protection. we will see -- >> we will see. this is a big issue for some of the countries around that table. give in maui.any we will see what happens the next few weeks. >> what did they tell you that even hillary clinton is moving away from any responsibility on this deal? it isis concerning getting into the presidential cycle. she should be supporting this agreement. the fact that she has been challenged on the left in her primary shows it will be tricky politically. us.hank you for joining
>> welcome back. it will be a big week on wall street. the earning season continues in the u.s. lawmakers debate the nuclear deal. we see what we're watching from new york. >> the week ahead on wall street will bring another round of earnings and economic reports that will be closely watched and a good chance we will see lower volume. many traders typically take off for vacation in the final weeks of summer. survey says a report on jobs will likely show the players in the u.s. at it more than 200,000
jobs. a separate report will likely show reduced spending in june. that is after the biggest gain. manufacturing data also on tap for the coming weeks. the auto industry will be in the spotlight. that is for july. in washington, it will be a quieter week than normal. they are continuing to scrutinize the iran nuclear deal. secretary john kerry will be traveling to the middle east and asia. on the earnings front, cbs health, walt disney, and others are month the company's two bring in earnings.
>> welcome to the stock exchange. i take you had to the open thing in australia, japan, and south korea. we see which stocks we are keeping an eye on. welcome back. >> thank you. [laughter] >> winning strategy. >> i know. there is an australian mining company. project.ld its it did quite well on australia rather. it has been quite a volatile month. it could be potentially a little bit overboard.
>> we do have that huge mining conference. we will see what happens with that. what can you show us? >> we're talking mitsubishi heavy industries. they make regional aircraft and also a top defense maker in japan. they make tanks for example. the defense ministry will up its spend on defense to as much as $40 billion. this is all consistent with the prime minister's push there to be more independent when it comes to defense. on the year, it is down. >> what the you think? will you see some upside? [laughter] >> their graphic is down. >> that is true. in.ou are eager to get back
>> looking good. >> switching gears to cosmetics. looking very good for the first quarter. they cannot higher than what we saw a year ago. we were very surprised. sales up 20%. the stock is up 77% for this year. on friday. >> ooh, now we have that coming in. thank you so much. he will be back in an hour to see how the three stocks have done. theing at the next hour of show, strong china sales help on
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in the asia-pacific. slightlys opening lower 0.2%. of course, we have those manufacturing pmi data out of japan in an hour or so. we have the asx in australia unchanged. it is ahead of the rba rate decision we have tomorrow. at 0.72ralian dollar u.s. dollar. the kospi is just getting underway. down 0.2%. manufacturing for pmi out of south korea as well. we have that in a couple of hours. it was below 50 showing contraction in the past watcher consecutive months. one --ly trading at
1000. let's go to china. the economic slow down there. official pmi numbers over the weekend shows of the gauge slipped to a five-month low. the month of easing had the desired effect. let's bring in correspondent and occur in. curran. enda: a disappointing read. new orders and new sales under pressure. if you strip away the impact in the second quarter, china is quite slow. will be disappointing for policymakers who have taken so many steps. shery: does this mean that not only because of car sales but manufacturing data and the economic data and today the official pmi it means we could see more stimulus from the government? :en: pointing -- enda curran
pointing toward easing growth on track for the 7% growth target. lower thel-bank could reserve rate requirement if it they need to. and lending to get credit into the economy. the government may want to watch more on the fiscal side and where they ramp up spending to get gdp. shery: car sells are slow in china right now. what does it tell us about the sometime indicators are not indicative about the real stay? enda curran: sales are down in the big group is warning they could fall for the first time in cap.ars and and a new all told, it shows the chinese consumer is -- it does not bode well.
they want consumers to play a bigger part. shery: enda curran, thank you. let's head over to greece. the greek stock exchange reopens after five we of suspension to shield the economy. looking at it this for us. reporter:e expect? the first time since june 26 of $41 billion will be open. the longest suspension since the 1970's and a lot of restrictions when it reopens today. expect, the restrictions on the by and not the sales. only for the greek traitor enough for foreign invest your's area -- and not investors. traders will be able to buy stock bonds and derivatives but only if they use money, from a broad, cash deposits or money
they may earn for future self with greek brokerages. not using loans. also a halt for any stock that holds more than evident percent -- 7% gain or fall. at first, it was a 10%. there will be a lot of restrictions on the buy side and not the sell side. shery: what about prime minister singh first -- right mr. sippers -- prime minister tsipras? juliette saly: he is safer now. they had talks and they brought it up on friday. 12 hours of talks. talks in september. the left-leaning side opposing this strings attached bail out deal that private sector tsipras
signed -- prime minister tsipras signed with the ecb. they wanted to have a few more controls in place instead of what the ecb wanted. they said the talks will continue. they will reconvene in september for emergency congress. shery: and germany, a key player. and now we're hearing they are worried about greece missing another payment. juliette saly: on august 20, greece have to pay the central-bank 3.2 billion euros. a lot of concern it will not happen unless agrees that's a -- greece gets up third bailout package pretty we could see more of what we saw a month ago. the greek economy has shrugged for the past two quarters. the german parliament making plans to meet and it may have to be postponed because it is
saying it is too tight to talk about greece's future when they may not be able to make the payments. shery: juliette saly, thank you. the director of the greek foreign-exchange. it will be past 10:00 in london. checking in on some of the other stories this morning. up wing section washed arrived in france for testing. investigators have identified it as flaperon from a boeing 777. image 370 is the only air -- m h 370 is the only plane known to be missing. another debris -- another piece of debris is rolled out. and has nothing to do with the airplane. airasia is asking for damages from the operator of kuala
lumpor. they are saying problems have heard their reputation. ingbillion terminal is sink with water on the tax ways. airasia's claims are baseless according to the airport and they will challenge them. mitsubishi is leading the gains for japanese banks. for a long health first-quarter revenue jumped -- the first quarter revenues health t -- revenue jump. combined profits as the three lenders hit nearly $6 billion, which is 30% of the full-year profit. as staying in japan, honda has the five down turning china with
defied the downturn in china with surging sales. honda not trading yet but what are we expecting? zeb: on friday with the adr, with a gain. gains at the japanese open. given the fact its net income beating expectation. salesal story is chinese towering ahead despite a challenging environment. honda leading the pack. let's not forget two or three years ago honda, toyota, and nissan were universally disliked by chinese customers because the diplomatic route. things have changed. 30% in theales up
chinese market will it be sustainable? shery: three years ago people not want to tell by buyese -- -- not wanting to japanese cars because they could be damaged. we are hearing from honda's top management. zeb: we saw it in the chinese stock markets and automobile sales, a stellar time. who alsoman of honda chairs the national auto dealers association in japan last month said it could lead to a downward spiral. it is showing signs of a downward spiral and some concern in the market there's is a price war underway in china and cannot continue to offer this level of discounting in addition to products recalled that honda will way of the prophet market. andthe -- profits market
environmental differences but not sticking points like automobiles. japan's economy minister said his confidence a deal will be reached at the next meeting. the united nations has warned the number of victims of flooding and myanmar is likely to rise at least 47 people are known to have died after unusually heavy monsoonal rain. 20,000 homes have then destroyed and 200,000 people directly affected. disaster zones declared in a 4 counties. the government has been criticized for reacting to slowly. china said by hosting the winter olympics, beijing officials can unlock a market of 300 million people. they won the 2020 gains. they are the first to host a summer and winter event. -- they won the 2020 games.
events the snow for the will have to be artificial. let's get our check of honda shares up currently. that is after sales surged 30% in the first half. we have honda shares up more than 8% after the profit surged more than 30% beating estimates held by sales in china. othertake a look at markets trading and the asia-pacific. japan's nikkei to 25 is down. -- 225 is down. the kospi is down 0.4%. mostly negative in asia today. the asx 200 is down. asia-pacific's cio. raymond, thank you for coming in.
we have the pmi data out of china not looking great and the us stocks. before it happened, we had you a you say you were optimistic about chinese shares. how do you feel about them now? -- we had you and you said you were optimistic about chinese shares. raymond: we seeing the market will trade in the red because there will be support measures. at the upper end, more selling. if you look at the whole overall shares andt, china h they look attractive in terms of valuation per shery: we have been talking about those shares for so long and we are not that story materialized. raymond chan: people to come back to china. you need to see china's economy is stabilizing right now it is not. .he pmi is falling
we need to see it to stabilize. and more measures from the government. interest rate cuts so we need to see more favorable deals. having said all of this, hong kong stock is -- [indiscernible] the corporate government and china stocks and for people who want to get exposure to the china market, the first thing they will look at is home called -- hong kong's stocks. shery: the latest intervention in the market, do you think it hurts investors' sentiment? raymond chan: no doubt. the question is it is the right thing. not comeill probably back in until they are sure they were formed? -- they have reformed. shery: will there be other markets benefiting from the selloff? the money has to go somewhere.
true.d chan: the rest of the market should not be too worried. the rest of the asian region should be worried about the strength of the chinese economy. and china's economy is awakening and that has a ripple effect on the rest of asian economies and the rest of the world. what is really happening is a strong u.s. dollar. raising -- rising the u.s. interest rates. out of the emerging markets. shery: where you see emerging markets ago? will be more it difficult. more challenging conditions. if you look around the world, brazil and russia and south africa in decline. china structural slow down. all of the possibilities. shery: last time you were positive on long term. are you still sticking to that?
longer time, they look attractive in terms of valuation. , short too come back medium-term, we need to see the dollar stabilize. u.s. interest rates more concerned. not going to see that. shery: could india be the neck china? raymond chan: we like china. we have been overweight in china. we like the central bank, a strong central bank government. their earnings not as good. shery: disappointing. raymond chan: indeed. look out, it may be the bottom other earnings cycle. shery: the indian rate decision coming up this week. what are you expecting? raymond chan: it will be more relaxed and loosening monetary policy. shery: has all of the positive
that could have come out of india and some are saying it is overvalued? where would you find opportunities? raymond chan tsipras: -- raymond their earnings cycles a it is not overvalued. the market will see more and that impression. modi is doing the right thing. companies want to invest and in the next 12-24 months we will see. shery: just briefly, your positive on japan a. pastels boosted. we are seeing the maybe they have reached their target. -- past profits have been boosted. raymond chan: i think the market has not seen the peak yet. a lot of investors putting money into but not all. still underweight on japan. as long as it is a corporate be more exciting.
shery: when do you expect more monetary easing? in japan, they need more monetary easing. shery: even without more easing, you are seeing upside? it is much bigger and stronger. shery: it has surprise. raymond, thank you. chief investment officer. coming up next -- korean won marks six week of declines. what is behind it? that is when "first up" returns. ♪
welcomenk -- david: back. south korea, reported another massive, i'm talking massive surplus reaching over $4 billion. the biggest. data,also reported trade it came out over the weekend. fellts fell but imports much further. you have to add in income. that being said, the south korean won. one of the biggest traders. hard to deal with your currency.
a fourth month of decline against the u.s. dollar. 3.5 year low more or less. $1.7 billion in july. for the currency, it is a record -- record foreign currency. main engine of growth has fallen every single month this year. staying here, busier data usual for data releases. in a few minutes, inflation data out of australia and similar reasons in thailand and indonesia later. pmiood of manufacturing data out of japan, taiwan, india, south korea, a vietnam. that is in 15 minutes after the markets open up on the chinese mailing. -- mainland. u.s.ussie dollar, 73 cents. holding and as.
inflation data after the break. -- holding. 69 u.s. cents. south korean won has been sold off really. the dollar has gained from the bottom back in may. 1166 is your level. stronger a quarter. the stories driving -- driving your foreign fx market. of thetime for a look stories will will be following in asia this week. on tuesday, secretary of state john kerry in asia and he will travel for the 22nd regional forum before ending the week and -- in hanoi. we will see how the commodities slumped have affected rio tinto. prices have fallen on more than
20% this year. rio is expanding low-cost iron ore despite stagnant demand in china. next monetary policy statement on friday morning before a news conference with governor corona -- kuroda. boj to findall for a way to spark growth. a drop in household spending. happy birthday, singapore. it turns 50. we will have a series of special reports looking at how this tiny city state transformed itself into the economic powerhouse it is today. chinesep next -- visitors flocking when bloomberg -- "first up" returns. ♪ ♪
shery: welcome back. it is 8:30 a.m. a beautiful warm and sunny day. an hour away from trading. you are watching "first up." ♪ shery: the top stories. china's official rating of the factory has fallen to a five-year low at 50 last month from 50.2 in june. weaker than expected numbers put pressure on the government to take further action. china's leadership has already
pledged preemptive policy adjustments in the second half and preparing fiscal spending. exchange reopens later after five weeks shut down to shield of the economy after talks with creditors broke down in june. they accept austerity demands to get a third bailout. the stock market surged before the closure and dropping 18% over the previous months. surged 8% at the opening in tokyo after better-than-expected profits managing to about the slow down in china within the income rising. andquarters through june mainland sales rose by 30% because of new cars and models. and breaking news out of australia this morning -- we are
getting pd securities inflation data for july. we are hearing the index rose .2% month to month and on a .early basis 1.6% the july figure rising 0.2% beating the previous number in general of the report were percent rise and higher year on year basis, rising 1.6%. following the numbers out of australia, over to david was watching how markets are trading this morning. david: thank you. a look at the aussie dollar. that inflation, more or less in line with -- a little higher. just a little bit compared to five minutes. the thinking more inflation falls, the more to ease. certainly the difference between aussie inflation rates and
nominal is very technical. 73 u.s. cents is your level. the current equity market in australia. asx is down. from the consistent with was would've seen wall street on friday. nothing to get excited about. broadly speaking, across the region. a day of defiance. a look at japan. similar losses in south korea. we're started though week on weaker footing. new zealand is spiking up and utilities department. willurse, the big one it be the chinese markets in about one hour's time. a lot of brokerages have told us that, you know, the policy makers have drawn this line in the sand they will be suspended
at all calls. that is the line you see in yellow. .et me skip to note that was sunday. that is what they are saying. considering where we are at the moment. a fairly tight trading range. they are saying there is more upside to be gained. thatand you break above and are able to maintain that for several days, that for several days, the next target is 4500. it is debatable if he is the right thing. thing.t is the right afterai, 15 minutes ending we have china pmi, another look at the different part of the economy. let's leave it there.
shery: thank you, david. the other stories. here is anne. anne: pam cole wants china to ease restrictions to buy more of china to easeants restrictions to mbuy more bonds. sovereign debt overseas cap at $30 billion. asked them to raise the limit. the slump in oil is hitting some of the industries of big names like exxon with the worst profits in years. since 2009.e worst chevron, the worst since 2012. they have taken right down in -- right down in the billions. tinto is offering to
help the mining industry spot missed opportunities. rio will allow rivals to access to look for trace elements to spur new discoveries for you in return, rio wants to become a partner. least amount of discoveries last year in 20 years. of the a look at some top corporate stories. i am anne kruger. shery: tourist from shanghai are leading us urge of chinese visitors -- are leading a surge of chinese visitors to japan. what is the forecast for tourism this year? reporter: more than 4 million chinese visitors expected and that would present an increase compared to last year. and according to the last few figures, more than 40% will be from the british area.
compared to 25% from beijing area. shery: why shanghai? a couple of reasons prehistoric reasons. it was colonialism. other imperial powers and as a result, shanghai has been deeply --luenced and a very deep 1980's, century, shanghai student among the first batch to pursue higher education. that continues today. shery: if you look at the history of not only shanghai, we are seeing a bigger sticking point between china and japan. we had diplomatic ties strained for a couple of years now for -- a couple of years now. could a surgeon tourism help the
relationship -- a surge in tourism help the relationship? ting shi: it could. it could help to know more about japanese people and coulter and the perception might shift. shery: -- and culture and the position -- perception might shift. shery: ting shi on tourism. a big week on wall street as the innings season continues u.s. and lawmakers debate the iran. su keenan with more. another round of earnings at economic reports closely watched and a good volumewe will see lower as many professional traders typically take off for vacation. economists surveyed by bloomberg said reporter on jobs will likely show employers in the u.s. added more than 200,000 jobs and that will hold the
jobless rate at a seven year low. personal spending likely shows that there is reduced thinking in june after the biggest gain in six years. july manufacturing services this week. and the auto industry will be in the spotlight. forward and right -- ford and what sales. in washington, a quieter week. house members gone for recess. senators scrutinizing the nuclear deal. secretary stay john kerry will go to the middle ease and asia about concerns on the deal. hsbc areey and cbs and among companies reporting earnings. su keenan. --ry: coming up next australians biggest -- one of
shery: welcome back. some of the stories making headlines. of bitcoin has been arrested. he is accused of accessing the exchange's computers and inflating his accounts. if convicted, he could face five years. it went online earlier last year. wereands of bitcoins unaccounted for and suggested they were stolen. at least one person has been killed and 12,000 evacuated after wildfires rush across california. the worst affected area is in for cisco where 50 houses -- is san francisco where 50 houses
have been destroyed. a state of emergency is declared. fires burning out of control in oregon and in washington state. a second american tourists has been accused of illegally hunting a lion in zimbabwe. a pennsylvania dr. killed a lion with a high-powered ball in and arrow.ow it is said to have taken place in an area where the animals are protected. he has been seen in many pictures with game. ♪ shery: remote australian city is the center of tensions as the mining industry meets with a conference. in the 2030 year, it is for social -- 2030 year, it is for
socializing. paul allen is there for us. -- 23rd year. paul: it is not the easiest place to get to. townhistoric gold-mining is inland from the state capital of perth, one of the most isolated cities in the world. a lot effort to attend the conference. why had it here? kalgoorie is perfect for this conference. it is probably the -- what of the best in the world. people like to clone my here and visit. here and visit. it is much better here. paul: not just the delegates that make the trip will pretty
much everything else. industrial kitchens, food, audiovisual, and the largest marquee in the southern hemisphere full hotels are booked solid and many locals cash in a fling the town ever -- many locals cash and fleeing town and renting out their homes. nightting almost $200 a for me to stay in this caravan. that get about 1800 people we have several thousand people hotels,, iturants, is very good for kalgoorlie. paul: there are a few notable the tech -- absentees. the nightlife is not reflective of our values said one person and goldman sachs has stopped coming but has not said why. nobody was to talk about it
could do they? >> a side issue. paul: kalgoorlie is infamous for clothed, the barely waitresses who serve the drinks. i am not allowed to film them. paul allen. shery: our next guest runs australia's second largest gold mine. joining us from kalgoorlie with the outlook is evolution's executive chairman jake klein. thank you for your time. losses and gold are down for six consecutive weeks around a five year low. you are not sweating get because it you said were not talking about aussie dollar gold. tell us about this. jake klein: that is right shery ahn. andconference is being held
commodity prices are multiyear lows. the difference has been the u.s. dollar gold price and australian dollar denominated gold price has changed since november last year. since november, 6% fall in the u.s. dollar. up 15% againstis the background of lower-cost and australia. australian gold producers in a good space. shery: they'll great a thing for you but when you look at global producers, they are feeling the pressure of pricing. how will this affect the industry overall? well, i think the industry is in a tough phase. if you look at gold from the high in august of 2011 one gold reached 19 -- 1900 u.s. dollars an ounce, it is down.
and australian dollar terms, multiyear low. it is down only 15%. u.s. dollar denominated producer, things are still tough at 1100 u.s. dollars, you are not making very much money. some balance sheets had high gearing levels, they are looking at investment and that is what evolution has been opportunistic about. and high quality assets. i think you are talking about gold mine in australian operation. tell us about those projects and how it will help your business overall? : what has been a really interesting is since gold has started falling in april of 2013 when people started looking at the negative outlook for
gold, almost 23% off australia's gold production, 2 million .unces has changed hands at evolution, we have been incredibly lucky and fortunate to pick up 2 high quality assets. us 760 -- 760,000 ounces amex is the second largest gold producer in australia. times like this where significant ice rink ships and ownership -- seismic shifts in ownership. getting from am you are there are more acquisitions for evolution. what can you tell us? jake klein: well, we have always said we will look at value created acquisitions and through the lens to improve the quality.
if you look at the journey of evolution four years ago, it had five reminds in producing 300,000 ounces when sure mine lives. and transformed. with improvement to operations witht was issued -- improvement operations and acquisitions. it is below cost gold. we are now moving ourselves down the cost curve. .old prices going up from an evolution perspective, we are in sound a good shape. we will look at additional acquisitions if they make sense to us. shery: very briefly, despite the positive environment for evolution, how problematic is it gold is out of fashion? what can you tell us? thatklein: yeah, i think
is the reality and investors have lost a lot of money in the gold actor. the gtx index is down some 80% over the last four years. that is painful for investors. thele have moved away from bullish outlook in gold and saying no inflation in the u.s. economy. that is not good for gold. the near-term catalyst for the macro environment of gold. within that, evolution is looking at the opportunity. that's when divestments occur out of necessity by the bigger companies. you have seen a lot of that into the advantage of companies like evolution which never would have been able to afford assets like mongari. shery: jake klein, thank you for
your time. of course, lots more from the diggers and dealers conference on bloomberg. .ene sperling will join us she was director of the national economic council and the clinton and obama administrations. later, the ceo of serious resources which owns one of the biggest nickel deposits. coming up next -- one of japan's biggest defense companies it did not get the boost as the government looks to increase defense spending. we will look to early market movers after the break. ♪
>> me. >> wow. >> the big one. it was overboard. australian mining companies. for $80 million. that is amount henry. shery: how was miss a bit she doing? -- mitsubishi doing? zeb: nobody can agree. it may be advancing is self according to a report. among other things. shery: and cosmetics. yvonne: one of the steady as you go. watch it all day. first quarter looking good. profit wasperating nine times higher than a year ago sales up 20%. people are buying the cosmetics.
shery: i like the pic. one is down 8.5%, panoramic. thank you. that is the verdict from the stock exchange. our reporters on the events. ♪ business is next and rishaad salamat with what is next. rishaad: the pmi data. the pmi indicator. that would indicate contraction after disappointing of official numbers over the weekend. shery: it has been disappointing over the weeks. australia, western what is going on there? what does the mining community thing elmore bloodletting there -- and more load letting their?
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rishaad: it is a monday and this is "trending business." i am rishaad salamat. ♪ rishaad: and singapore and kalgoorlie, what we are watching. the latest reading at a five-month a low. the government said it is ready to act again. shares jumping in tokyo. strong sales in china helping. and back in business.