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tv   Trending Business  Bloomberg  August 9, 2015 9:00pm-11:01pm EDT

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>> stimulating the indian economy. jobs at risk in the robot age? see if that strategy could succeed. follow me on twitter. there is the hash tag as well. this is a look at what is coming online. holiday.have a public we will be watching malaysia closely. .e're closely tracking let's get to the indications as trade begins. it is a down day. stocks are falling. currency is under pressure as well.
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five times worse than expected. it is driving stocks lower. australia seeing a modest again despite the moose today. let's check out some of the -- despite the moose today. let's check out some of the -- jpmorgan cutting its target for crude oil. we will watch the commodity markets. no surprise. it is energy related. down 6.6. one of the winners in the city market. watch that stock as concessions continue. we will be watching that very closely and certainly watching the market to see how those move with the china data. big names there.
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this seems to be across the region. a broad base decline. this is what we have got right now. it is a snapshot of trade. a sick materials. no surprise given the pullback in commodities. there is downward pressure. >> pressure is mounting on chinese policy makers. producer prices have gained. the steepest decline in nearly six years. are things getting worse? we get a look at the evidence. >> that stock market bubble we had the reading a bit of attention from the underlying weakness in the chinese economy. they are suggesting those
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interest rates cuts that we had it is failing to spark a recovery in the chinese economy as witnessed by the july numbers. again for a consecutive month. octoberest fall since 2009. down 5.4%. it issuing a continuing weakness demand. inflation is up. pork pricet was inflation. nonfood prices continued to remain fairly tame. exports were out over the weekend. significantly weaker than analysts had forecast it.
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we came in minus 8.3%. shipments were down 2.5%. some of the regional economies as well as a eurozone has been weakening their currency while the yuan has remained fairly flat. that has weekend china's export. imports, ninth month in a row. what can policymakers do? another interest rate hike? back to you. >> qe with chinese characteristics. we want your opinion. #trendingbusiness. both of those are missed estimates. >> good morning.
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the current account has managed to remain in the black. they are missing estimates. japan posted its biggest current account surplus in seven years. expert volumes have not significantly recovered. abroad.s being earned japan posted a trade surplus on a payment basis of $825 million in june. it missed estimates. it is a second time this year we are seeing a surplus. japanese companies have shown renewed drive overseas. it has been helping bank's. mr. revenue profited -- it
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helped by a boy it market. up market. boosting revenues 31%. back to you. >> let's have a look at other stories we're covering for you today. here is a roundup. >> we are talking earnings. prada, not the best. sales were up a little bit. look at the euros. slightly short of estimates. there is waning demand for
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handbags and wallets, especially in hong kong and macau. asia is the biggest market for the company. introducing handbags. they are refocusing, i think is a proper speak for that one. listing a look at how they have done. those are the shares listed here in hong kong. that feedback in 2013. down.s the break there you go. not very bullish. missing estimates there in the process. where ithe measure
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will affect some of the results. estimates on the streets, just over 3000. it is due to two these as it's not performing as well. though partlyk up 7cause it will include billion u.s. dollars from a merger of course. talks tosaid to be in buy company that makes equipment for the aerospace and energy industries. a huge, huge deal. watch out for an update on that one. twitter.k about we are getting the lowdown. departure ofe the the former ceo.
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they may expand or get reshuffled. e-commerce or advertising. are three former ceos on the company board right now. wrap of what we are watching. back to you. >> thanks, david. property.lian you could take a look on coming up, the latest data. we give you a head start about 30 minutes from now. and mainland markets. no worries. ♪
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>> on this side of the world at the moment. indicating a slowdown deepening their. let's get some insights. good to see you. what did you make of it? i think the trade was the most interesting aspect. >> good morning. it has been a bit of a global phenomenon. obviously we're watching 30 closely. we are not overly concerned -- china closely. we're not overly concerned. we are looking for a rebound.
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likely going to cut the preserve ratio again. we will start the edge up just a little. we are seeing a slight improvement in property in china. model -- modest stuff here. >> exactly. minor looking at the market in when we are looking at the market in china, does that mean you don't see a further down low? >> we think a lot has been factored in. that.k at what is behind we don't think it will have a huge impact.
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the number of households participating in the share is less than a percent of total households. the way,at the end of the market was looking over the value. those participants were benefiting from that rise. outperforming sectors with -- thats and consumer is the place we want to be in. >> you could argue. >> we could argue, but they are maintaining their stances. the payroll data on
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friday will reflect on it. seems we had a slight miss. interesting. they did revise upwards. i think what is interesting is we are forecasting a rate rise by the fed in september. 90rill lynch up about points. it is not a done deal as far as future markets are concerned. we think it will be justifying the starting of this right is. what we're not concerned is -- it is our view that this cycle is likely to see rates peak at 2%. that is compared to long-term rates.
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has given us language in terms of a measured move. they won't want to disturb all of the hard work they have put in place and getting this upward momentum in the u.s. economy by raising rates quickly and harshly. >> that is the thing. how closely do we look at corporate earnings? there are some big names that didn't shine, didn't they? >> groups like caterpillar on the capital group side no. . no, groups like caterpillar on the capital group side.
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some 50 odd percent. it is still reasonably intact. the inflation it is continuing to soften a little that. it may not be such a surprise. >> great talking to you. have a great week. now to the stories making headlines around the world. storm -- at least 14 people were killed in provinces it with more still missing. earlier, five people died and five more unaccounted for in taiwan.
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99 people have died and almost one million more displaced by the worst floods in decades. but two ofcted all the country's 14 states. the government admits its response was slow. it is appealing for international help. it was worst hit were several large rivers converged. japan has marked its 70th anniversary of the bombings of hiroshima with calls for a ban on nuclear weapons and a halt on a more proactive military. survivors of the bomb ended world war ii and announce new defense for legislation. 70,000 people died in the attack . up next, troubled times for
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malaysia. fleeing in droves. and worries about the economy. we look at the grave concerns in a couple of minutes. ♪
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>> we are back. we take a look at the stories
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making headlines. 9%.its rising more than to lower bad debt charges. well.ark is up 1% as it creates a glut on world market. there is falling domestic demand. overseas sales surged in july. reducedss leading to earnings and trade disputes. and due to make -- iceberg research began to publish criticism.
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stock is down by more than 50% since then. foreign investors are losing confidence in malaysia international stock is. amid political scandal involving the prime minister and great concerns about the state of the economy. looks like -- any positives? the underlying fundamentals are malaysia's economy have not then lost. -- there arecerns still concerns. we could expect a selloff. it is shaky and tentative. it is down 4% in that time. it has left to do with the debt
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ridden state. the concern is they will be instructed. has had the commodities route. they had to they make -- he has to make the economy and his priority. instead he is fighting off allegations. now they are saying malaysia risk losing its status as a safe haven. this political crisis is undoing all of that. to,s you have been alluding the central bank has been ramping it up to some extent. it has ratcheted down its reserves. where are we with this? >> it is hard for them to continue to prop up the
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currency. it is getting harder and harder. less ammunition. it is the lowest level since 2008. it is enough to pay for only 7.5 months of imports. he have the commodities route. there's the major export in oil. that together would make it hard for the bank. >> thanks. thank you for looking into the deepening crisis in malaysia. coming up, pressure on chinese pilot makers -- policymakers. we get the session underway in shanghai. ♪
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>> we're looking at our top stories. narrower than anticipated. stocks down in tokyo. china out with unexpectedly large drop in exports.
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they could do more stimulus. prada sales missing estimates. the company cutting down on stores and trying to reignite demand for the product. hearing opening bells ringing in shanghai. we look for the chinese economic data. is.t certainly we will see how shanghai and hong kong fair.
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they're underscoring concerns about the health of the chinese economy. it is perhaps the veer in the trade sector. that is happening all across the region today. thereoader copper index heading for the first loss there. this is what we have. finishing this session higher. looks like we start the day modestly higher. check out the honda saying -- hansing.
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a broad range. the flagship companies are down. .nd energy related shares the secondargets for half. the little maker advancing today. we will talk about shipping coming up in a little while. we will tell you why when i see you again. back to those economic bits in bob's of data. it does paint a pretty dismal
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picture. >> definitely. there was a stabilize asian. overhang.t the >> that is thing here. >> perhaps it has become too strong. exports.ting they might try to weaken it. chinanot a good thing for . it is a bit of a conundrum and
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balancing act. >> it hasn't done anything recent weeks. >> you can see that is light is having a break on trade. it does not just simply weakening the currency. much.nk you so industryot the car there. they are trying to drum up sales. is this the right way? we're talking 25 or 35% in some cases. is there a right way to go about it? luree other ways to
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customers back to the dealerships. one is lower financing cost. there isn't a lot of people. they are offering 0% financing. automakers have to do this. the costs are so high. they have to build mark cars to offset the cost. what to do that is bring in more customers. get more people to buy cars. island. known as an you have got all of the supply chains. what are we seeing their >> it is upstream and downstream guys. they're probably been asked to cut prices. down, new car sale margins are very into start with.
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.> even before this if you're getting double-digit margins, you are doing something nobody else is doing. >> 11 dealers want to sell cars to get a year and or quarterly rebates. bladealmost like a razor where you trying to sell a lot a razor's. something. what are the rate cuts expect to hear? do you think it will help? >> it is interesting. we consumer confidence. we take it all together. they will inject some kind of demand back into the economy.
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up. want consumers to step it is not a great sign for their a -- for their confidence in the economy. >> let's check in on some of the other stories we are following. the chinese car is attracting more backing. as uber's rival in china. its're looking to expand shuttle bust and carpooling services in china. this time targeting the travel industry. it processes reservations for airlines and hotels. american airlines also investigating possible hackers. it is part of the recent attacks on the u.s. military. tesla says it has employed a
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fixed to stop remote factors from being able to shut down its engine. it does come after cyber security researchers exposed key weaknesses in the electric car. they will work to minimize the risk. something of a rock and a hard place. there is some competitiveness. he doesn't want the automation to destroyed jobs. there are two conflicting aims at work. it seems to be irreconcilable really. >> that is the thing. it does look like a contradiction. it doesn't necessarily have to be.
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when you have a skilled workforce, it does not quite as start. robots do create new jobs. you need a guide to maintain the robot and and nearest to integrate them into the production lines. it has a largely uneducated workforce. there are 287 million people in india that are illiterate. that is larger than the national population of every other country in the world except u.s. in china. and his challenge is to get those people educated in time so that they are able to take advantage of the new types of jobs that are being created. those are the higher skilled jobs. they do actually lead to more jobs being created and not necessarily taking away jobs. why give robots and not
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training some of these people? >> that is a good question. the assumption is that companies are buying robots to save costs. you hire less laborers and you have them working 24 hours a day. that is only partially true. the primary driver at the beginning is to achieve a certain standard cut a certain quality in your output. that iorcycle factory visited, they need to make sure that every single motorcycle that comes out of the factory is painted the same. you don't paint too much of the same place twice. . robot is able to do that they were telling me a robot is so precise, it won't repaint more than a two millimeters area on the bike. human workers will sometimes missed a spot in that later
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leads to corrosion on the bike. they might just waive their paint around and waste a lot of paint. there is a way companies at the beginning deployed robots is to in indiaat a factory or china produces the same quality of output as say a german factory or japanese fact three. later on, it is also the costs. it has to be cost effective. the feedback trade is about two years. for robots could do the work of essentially maybe 50 people. isis only later on that it not just the quality game, but other things like it is cheaper to have robots. those are the reasons maybe they are deploying a lot a robots. right now it is primarily quality game. >> thank you very much we will take a break.
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on the other side, we look at china's challenges. more on the disappointing data. ♪
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>> the stories making headlines around the world. the malaysia regulators are investigating an incident at kuala lumpur's new terminal airport. last month, the airline said the lia terminal is sinking. they claim the airport operators say it is a swiss. and a birthday -- it is baseless. and a birthday party
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celebration. the festivities included a tribute to the city state founding father who died in march. his son is the current prime minister. and protests have been held at a japanese nuclear bank. the first to come back since the fukushima disaster. once final inspections are , some reactors have applied to restart permits. >> let's have a look at what is going on this week. see
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dreadful data over the weekend. we get all of these bits and bobs of data. it shows you it is not all bad is that. it is worse. how do you know if there is a slowdown in china? >> you look at pieces. forget about official data. we have had some official that that shows the pmi. it is slowly -- slowly and steadily approaching the massive slowdown, unfortunately. just about manufacturing. it is slightly recovery. exactly. as has the reason is
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always happened in china, it is issively influenced, which coming to the forefront. international reserves coming down in china for the first time. exports are being under moist. maybe they are not as bad as we see. the slowdown is even faster than what we have seen in the data. >> this is exactly it. we have a lot to cover. you mentioned the data there. it is important to look at how much money the bank has in foreign reserves. that is approaching 100 alien billion. dollars -- euros u.s. dollars.
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malaysia is dangerously approaching a potential crisis -- potential crisis should >> it is never a crisis. >> what is going on there? >> there is a key data point in malaysia. that is the difference. therefore reserves are extremely important. it is about what we have. means they have to be very careful. they have to be in the right
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spot for the fed hike. we have these fragile five, you remember? >> yes. fragile -- you end up there with very few reserves. >> let's just mentioned this. people say they have been drawn down these reserves. how much of that is true? people look at the political situation. let's get out of here. >> i agree. the situation could be worse. otherwise the minute the fed hikes, much more money will play out. >> and underlying it are the
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fundamentals. we talked about the political situations. what about the weakness and the commodities complex? thatthink the truth is people are starting to see which countries are relying on commodity prices? it is already an oil exporter. really malaysia come a country in asia, that is dependent on oil. as soon as hurting the economy even further. much.nks very we will take a break. we take a look at some of the dramatic pictures being shared
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on social media. the damage that has been left behind. we return after this. ♪
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>> eight minutes to the top of the hour. what is going on? >> obviously one of the trending was this twitter massive typhoon. it hit the eastern coast of china. we're looking at teachers here out of taiwan. it is the pictures that came out of here. it was something we haven't seen in a long time.
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we are still without power. >> people are staying in touch through social media? are you seeing that? >> updates of people missing. there is a lot of confusion on the number of fatalities. life is a life, right? incredible before and after here. you have the before which are here. >> yeah. mine is more update. it is exciting.
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this is called the perseid meteor shower. that is that nasa says. the best time to view it will be on wednesday and thursday nights this week. from the northern hemisphere is the best. it will be quite a spectacular show. the canadian space agency to make a- tweeting wish. make a wish. we had another twitter user , the rest of you are out of luck. >> it only happens once every few years. leslie -- let's take a look at what is trending. , the worst is over for china and the recovery is underway.
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details from the chinese economy. ♪
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>> it's monday. the 10th of august. this is "trending business." ♪ here is what we are watching. losing steam. narrower than expected. the yen also down. but it has been good for goldman sachs. boosting revenue and the number of staff.
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and in unaffected -- unexpected fall in a sports. that exports. all adding to the case for more stimulus to support growth. find me on twitter. jakarta is one of the many markets across southeast asia just about to start trading. certainly.ay investors across the region taking a closer look at that disappointing data out of china taking many by surprise. at thelet's take a look reaction. there is not a lot of movement to the upside. the only market that is advancing measurably in shanghai. it is a different story in japan. we are closely watching japanese stocks today.
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we look at the current the clout -- the current account surpluses lower than what we expected. take a look at what is happening. these are your movers in shanghai. susan -- you do see the desert -- you do suge knight divergence. .- you do see the divergence shipping stocks in the age and markets are big, -- in the asian markets are big movers. we see shipping shares moving on speculation. china cosco holdings pending an announcement by the controlling shareholder over a significant transaction. china shipping container line suspended. .atch cosco pacific let's take a look at what is happening elsewhere in the region. shares in jakarta starting the
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day lower. if we look across the asia-pacific, this is how the industry groups are shaping up. this is the msci asia-pacific index. looks like the only games we are seeing today are in telecoms. looks like we all need to keep in touch. certainly in china they are adding more people every day in mobile. these are your key movers across the telecom industry. star hub as we look farther afield. unicom, a major player. that is a small snapshot. a.'t forget, commodities -- commodities lower today. rishaad: data showing weaker showingicipated demand
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the steepest incline in nearly six years. stephen engle is having a look at this. slowdown seemingly gathering pace. stephen: the weekend data suggesting weakening demand at home and abroad. efforts to try and stimulate growth, they haven't sparked a recovery in the chinese economy just yet. producer prices seeing their biggest fall since october of 2009. last month, factory prices falling another 5.4%, the 41st consecutive month of ppi deflation. consumer price inflation inched up slightly to 1.6%, well below the government's target of 3% full-year. most of that 1.6% was due to a sharp rise in meat prices. nonfood prices are subdued. we had worse than expected trade
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numbers. exports in july falling 8.3%. the consensus forecast was for a 1.35% drop. a stable you want versus depriest -- a stable yuan is hurting exports. the u.s. was a lone bright spot. imports also falling more than , the ninth month in a row of weakening demand. what can policymakers do? economists say they expect another interest rate cut this quarter as well as a 50 basis point reduction in reserve ratio requirement that banks. this is on top of a reported one reportedyou want -- one trillion yuan. rishaad: we will have a look at that story across the course of the program. thoughts and
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business.hat #trending banks have been clear winners. headcount on the way up there last year. goldman was the standout but tell me about the others. >> goldman was the standout but we also saw other banks such as citigroup also improving results from their japanese operations. there were a few factors for this. market optimism in japan helping to boost a profit from equities trading. japanese companies advertise for mergers and overseas expansions. if you look at the goldman sachs 'svenue gaining 31%, citigroup japanese subsidiary also gained 31%.
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that help them return to a profit. gaining 21% higher profit for the year to march. while citigroup and bnp paribas reduce the headcount in japan, goldman sachs increase their staff by 6%. they were done 12 transactions including a $5 billion acquisition. those transaction fees helping fees,n sachs boosts commissions, especially from its investment banking and brokerage businesses which include merger advisory. i jumped to a four-year high. profit also from fixed income rising 10%. rishaad: let's have a look at some other stories we are watching today.
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david: japan released its latest current-account eta of june -- current-account data of june. about $2 billion short of estimates and less than one third the surplus of back in may. this is the broadest measure of trade. in a tenure look, japan's current-account -- japan typically runs a trade deficit overall. if you go back all the way to 2011. this figure also includes income from abroad. that has really been what is keeping current-account a float. isuick check, how this affecting markets there. that is the current account surplus over 10 years. pulling back from an eight year high.
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let's switch things around and take a look at earnings. not the best set of results. certainly the latest luxury goods maker to report a weakening in the business because i guess, to put this simply, chinese are not buying up as many handbags. short of estimates, and those estimates have already been ratcheted down from analysts. one of the problems is slowdown crackdown ony, a the lavish lifestyles of public officials. asia is the biggest market for the company. it has actually trimmed its network of distributors. it is also introducing cheaper products. i think you can find one for 1000 euros.
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shares are up a little bit. confusion -- the -- avoid conclusion the confusion, these are in hong kong. -- just under 40 analysts recommend buying the stock is still don't have any in your portfolio. last but least, let's turn to berkshire hathaway. profits fell 37% in the second quarter. if you look at earnings per share, if you strip out the ad itof investment results, came in at under 2400 u.s. dollars. over $ at it is the insurance side posting losses mainly because of higher costs.
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third quarter, things could actually pick up partly because of that set of results including pretax gains of about 7 billion. before i go, let me just mention, berkshire said to be in talks to buy a company that makes equipment for the aerospace and energy industries. huge deal when it gets announced or if it gets announced. 30 billion u.s. dollars. do watch out for updates on that potentially huge deal. back to you. this other story we're following him bloomberg business is that donald trump remains defiant following criticism of his reported -- of his performance in last week's republican debate. , howg up later on the show india's decision to freeze the new trade talks is being backed by its drug industry.
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find out the details as we had to mumbai. hsbc is very short break, says the worst is over for china and the recovery is underway for the third quarter. but to the details. ♪
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rishaad: the weekend brought us more evidence that china's economic slowdown is deepening. exports fell last month and factories are seeing their steepest decline in almost six years. joining us is julia from hsbc. julia:ngs getting worse? the numbers over the weekend certainly a mixed bag.
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down. growth is but i do think this is somewhat not only a china problem but more than asia problem. you can look at numbers in korea, taiwan. the conclusion here is that there probably isn't much they can do on the export side of things. they will have to look to the domestic economy. but then you are looking at the numbers over the weekend, the conclusion here is that challenges are still remaining with policymakers. i think they have done quite a lot in there are some positive signs, but i think it is still quite fragile, looking at the state of investment for example. i think that there is still a lot more they can do. rishaad: when we look at the inventory buildup, the inventory overhang, you would have thought this would be already drawn down.
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julia: is a very difficult process, because i think that trying to redeem the amount of inventory well growing the overall economy will be difficult. i don't think it is something that will happen very quickly. infrastructure is one of them. recently it has been getting morettention, but if you look back historical, has been very much concentrated in the manufacturing sector. urbanization, a lot of urban infrastructure. railway is still lacking very much behind not only developed markets, but also some emerging markets. there is a lot more investment in china can make.
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the right price for the government to be able to spearhead this infrastructure. it will look hopefully to be a good enough countercyclical policy. rishaad: 8% is a big drop. the global economy, doesn't mean there is a problem with the value of the currency? julia: i think the bigger factor here is that the world recovery is quite slow. you go across to asia and manufacturing powerhouses, korea and taiwan. i don't think it is so much of a china problem, but i think maybe something is adding to challenges of the exports. i don't think it is something that can change very quickly. this is going to be a disappointing sector going forward. rishaad: what is the policy response?
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julia: i think they have a lot of ammunition. it has been a shame that they have been so far behind the curve alone deflationary pressures to build up. to stabilize sentiment. that is the only thing that can help the economy to rebuild investment growth. rishaad: what is the real rate of growth in china? it is better to look at nominal gdp growth at about 6.5%. you cannot really grow the economy with disinflation or deflation. it is better to focus on underlying growth. i think that is something that is weighing on labor markets. there is a real danger here that the inflationary pressure could get even worse. policymakers do have to come in and do some are easing as
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quickly as possible. ♪ >> now to the stories making headlines around the world. typhoon soudelor as we get into a tropical storm. media says at least 14 people were killed with more still missing. earlier, five people died and five more were unaccounted for in taiwan, including eight-year-old twin girls and their mother who was swept out to sea, and a firefighter that was hit by a drunken driver. japan has marked the 70th anniversary of the bombings at not a sake and hiroshima with calls for a ban on nuclear weapons and a halt on a more proactive military. -- speeches announcing new defense force.
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isaysia's aviation regulator going to inspect an incident in which an air asia plane reportedly rolled backwards. last month, the airline said the klia terminal is sinking. thansia is demanding more $100 million for the loss of its plane. next, look up and make a wish. where the skies are set for some dazzling displays this week. ♪
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♪ rishaad: we have a look at national australia bank. profit rising more than 9% last quarter. shares have dropped about 1% so far this year. against the background of the benchmark. the car listing website lost more than half its value. down 56% so far this year.
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22% on fears of chinese auto sales slowdown. keeping the automotive theme going, the chinese car booking service is said to have attracted more backing. investors -- is seen as uber's rival in china. it is also looking to expand its shuttle and carpooling services. let's have a look at what is going on social media wise. >> a lot happening on social media. i am looking at stargazing. the meteor is one of the
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brightest shows of the year. you can see up to 100 meteors in our if you are looking at the right spot. we're going to see the best meet your's on wednesday -- the best on wednesday. of course, everyone has been tweeting in this space world. the canadian space agency has put out a tweet: we also had a quite interesting one coming in from a twitter user saying: i guess she has a good point, this is an annual event, we should turn off our phones and have a look up there. amazing sky. this meteor is named after the consolation persueus.
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quite a spectacular light show. we all know about this massive typhoon. you are seeing pictures of the cleanup that happened in the eastern coast of china. following that, it went into china as well. they are still doing the cleanup there. hundreds of thousands are evacuated on the eastern coast of china. but it is some tweaks here. -- some tweets here. -- actually took a look at very early in the morning. he's been there for about 16 years and have never seen anything like this. tweet out of the u.s. navy. the typhoon also hit the island of taipan. this is a picture of one of their vessels unloading
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supplies. ,lso making some news on weibo the typhoon this time was a huge one. i think we do have one more. close your eyes and hope for the best. >> it is quite scary what is going on there. rishaad: up next, a political cash scandal and is struggling currency. the increasingly bleak future facing malaysia. ♪ ♪
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♪ rishaad: china reported it unexpectedly large drop in exports. exports shrinking more than 8% from a year ago. pressure on chinese policymakers to do more. have yet to spark a recovery gre.
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economist's are expecting a $6.5 billion surplus. global banks seeing improvements in japan, but large foreign-based investment banks boosting revenue and profit. boosted stock, by 6%. particularly broad-based disc line in the commodities -- decline in the commodities. --pressure metals precious metals falling and crude oil falling. risk alsong bonds moving, and a lot of concern
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about the slowdown in china. will it continue? well it's stupid? steepen?t and just look ahead anticipate additional stimulus. it is lifting the shanghai composite. you can see the benchmark at the bottom of your screen. it is down so far on this. in japan, the topic index heading for its first drop in nine days. share are falling. type stocks are active. we are watching bank earnings and we'll get to that in a moment. these are your movers in the sydney market right now. dollar movers among the energy and commodity related shares in jakarta and malaysia fairly lower. malaysia, the big concern is political risk and the economic
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strength of the country. in a lot of uncertainty that has led many foreign investors to pull their money out. these stocks are moving in kuala lumpur right now. the modern metropolis, telecom asia, the major telecom operator there. , thef the main financials only loan stock that seems to be doing well right now. quickly checking in on what is happening in hong kong. many of the main shipping lines are extended. there is deal news of flight. many names are suspended right now. there are shares in the hr market that are rallying. it is pending possible deal news , and what we heard today is that china costco has been halted pending an announcement, with the shipping container line suspended as well.
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mergingid to consider china shipping as well as costco. watch that very closely. china merchants among the financials, telecom is doing well, and china rising versus the pur huge powerhouse gaming on the strip. walmart has one of its biggest customers, not a lot of investors in the stock today. sense oflet's get a enterprises index, the chinese companies listed here. , oil and gasg really leaving on the downside. financials are not far behind. major chinesehe names you want to be watching, petro china, down in the session, dragging the broader hong kong market down as well.
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firmly lower as we start out this monday. story,: more on our top deepening exports tumbling. chief correspondent is here. >> soft numbers all around. a big reality check when you look at the exports. the ongoing economy itself, you remove the stock market boom in the second quarter, and you have an effect on gdp. soft real estate sector, struggling factory space. the question people are asking, is as this too strong? >> policymakers are very tempted ak.tweet
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they want to alleviate pressure on exporters. it is hurting them against and give it is hurting them and shipping to europe. the problem, to weaken the trigger, it might capital outflow. it is a bit of a balancing act. rishaad: what are policymakers doing? proper interest rate cuts, there is a lot more they could do. >> it is going to get more interesting and more complicated. watch what they are doing on the policy banks. are trying to drive projects in the regions. they will recapitalize the policy banks and use them more and more is going forward. the policy banks can be an interesting weapons. rishaad: we're going to have a look at is going on in steel. china produces half of the world steel, but the slowing economy
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means lower demand. disputes are up. is this all going, martin, and what does it indicate? martin: china produces half of the world's exports. we have seen a really strong acceleration. in his exporting the same volume as all the u.s. reduces in a year. this is causing disruption to world markets. it is hurting earnings of companies. rishaad: are there any positives out of this? what you are starting to see in china in china and that is some production discipline. there are some mills that are starting to close. aices are starting to go up little bit. the real estate is coming back
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and limited. that might spark support construction activity in the next six to 12 months. hits one of the biggest have been commodity slowdown. the july data saw a big uptick in iron ore. i think australia and china may give them more steel. rishaad: how much of this is sitting on the sides of the knock? -- dock? martin: you have seen prices, is a bit recently. there was some restocking activity. there is not going to be a big rally in the prices, i'm afraid, because the steelworkers is really under pressure. rishaad: thank you. let's check in with some of the other stories we are following for you as well. twitter can see a shakeup in the boardroom. the company is considering adding more diversity to its directors.
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some may be appointed from minority groups. adjacentperience from industries, three of the four main make life for the new executive. hector links to china may have struck again. sabr processes airline lines,tions for major and may have been hacked. also, due to make public the price of the cooper's review. that is something that was toered after a firm began publish criticism of nobles practices in february. the stock is dropped by more than 50% since then. companieshat foreign
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are heading for the doors in asia. --'s talk to our selfies and let's talk to our south asian correspondent. >> it is about deabt. how this long-standing scandal is spooking investors in a long $3 billion was withdrawn this year. can't look, down 4% year to date. the key concern is we taking attention away from the economy. him toted by calls for step down. allegations that 700 million dollars made its way to a personal bank account. investors do not like that. economy isendent already hurting from a commodities route, which could get worse with expected fed rate hike. the political crisis is making
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investors very uneasy. having said that, the market drop has been so's the. more than 10% since back in april. we may just see some correction in the coming days. rishaad: as you have been mentioning, the currency has had one of the worst performances in this part of the world. are they doing anything to prop it up? billionthat magical five u.s. dollars in reserves. the sense of the market is that it has been propping it up, but it up again. there is less ammunition. nowlowest level since 2008, $96 billion in the $100 billion mark that you talked about you pay for only 7.5 months of imports. we also have the commodities route. malaysia highly dependent on
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oil. plunge, revenues are being sliced. needed, watchs this space. rishaad: thank you. spenttwo preachers that two years trying to hack into the world's most connected car. we will tell you what they found. ♪
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having seen. stocks their longest slide since 2011 with the, duty producers leading the way down. what may be moving the market. >> in the week ahead on wall
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street, a big question for investors will be can the market break gets seven-week losing streak? figures on friday raise the likelihood that the federal reserve will raise rates as early as next month friday's data gave for further compilation -- confirmation that is was on course. this was after exceeding expectations in the prior month by futures. bond futures showing 56% chance that they will raise in september. we are nearing the end of earnings is an with 85% of companies already reporting. in the coming week investors will be pouring over profit results from kraft, heinz, noble group news corp., cisco systems, and alibaba. labor costs on tuesday, retail sales on thursday, and industrial production on friday.
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investors more than ever are focused on this as a debate over the rate hike continues. commodities will be a focus after the new york traded oil continues to slump on friday, calling for a six straight week down. in new york, i'm su keenan, bloomberg news. not to the stories making headlines around the world. 99 people have died and more have been displaced by the worst flooding decades. june monsoon rains since have affected all but two of the country 14 states. the government admits its response was low, and is appealing for international help. several large rivers converge into the scene. protests have been held at a japanese nuclear plant that is due to be restarted this week.
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the first to come back online since the fukushima disaster. once final inspections are completed, it will come online wednesday. they were shut down following meltdowns of the fukushima in 2011, caused by the massive earthquake and tsunami. singapore is ramping up its 50th they party celebration with fireworks hundred parade, attended by tens of thousands of people. the festivities included a tribute to the founding father who died in march. his son, the current prime minister, urged the people of singapore to press ahead and an aging population. as isd: the tesla model billed as the world's most connected car and one of the most secure. to cyber security experts have managed to hack the cars on the computer. how they did it.
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? >> i'm a principal security researcher. i am a hacker in my spare time. >> i've founder and ceo of lookout. because we had tesla to build super cars in the future. >> elon musk is a real visionary. andants to look at a car say how good was it, was in the benchmark for the industry, was there any issues, and if so what was the? iphone, i have googled less, but the tesla took a little bit of time. >> it wasn't just in case of hacking the car, we had to attack one system, gather some information, use that to get a axis to another system, get us and finally is that you get more information and we were able to get full control over the vehicle.
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you can do everything that the touchscreen ui can do. pop the trunk, unlock the car. switch it off and on. >> the biggest take away is that cars are computers. your car has more in common with the laptop rather than the model t rate we do think about sarah security issues just as we do safety. ? >> i am a hacker. if i'm not hacking it, someone else is going to be. someone will be doing a maliciously. vulnerabilities will be found. what you want is to be found by the good guys. this is the software update that we worked with tesla to prepare to identify as part of our research. all you have to do is choose install noun or install overnight.
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they can push this out very quickly. >> the vast majority of tesla's were already be safe. hacking the tesla. and its the drug ban background as we head over to mumbai.
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freead: india has created trade talks that have dragged on for eight years. we go to mumbai. what is going on? just a perspective on how large trade between india and the u.s. is and why these
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equation is not looking good, they sported former products in 2014, and like accounts for $3 billion off of that. that is $3 million of generic medicines contribution. the recession in the eu, and its focus on concluding the transatlantic trade, and investment partnership with agreement with united hates has degraded investment talks with the eu. in both sides, they have missed for deadlines to try and clinch a free-trade accord, even after 16 rounds of talks. the leaders say that the eu has upheld the ban on certain types of drugs. they're hoping that it way out could be found for restarting a effort to try to drive out the free trade negotiations.
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it is based on scientific and not create considerations it was confident that the solution would be found at the earliest. but the conditions that they are already doing by the concerned authorities. the eu continues to remain committed to the train work. rishaad: thank you. let's take a look at the other stories we're following for you. quartery, second earnings. this is of course, the chinese one of the giants of developing mobile game, travel, and location-based security. it does not have any ads on it, the messaging or like we chat -- chat which wii reaches one billion people.
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the newxpecting to see galaxy note five and six and plus tablet, but there is talk of a third device. shares have been falling after that lackluster response to the galaxy six. latest gdp numbers. struggling with debt ridden fund. potentially divisive date for japan. make aghbors to statement marking 70 years since the end of the second world war. he's expected to address defense start relations of asia and outline his view of the future. to apologize for japan's militarism in the 20th century.
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look at the proof of interest here too. -- nature's beauty. the meteor shower, one of the best and brightest could be especially good this year. this, therek at should be little or no moonlight. the event will be visible across the northern hemisphere. it's brightest is expected to be wednesday, august the 12th. the sky-mobi just before dawn. -- the best time will be just before dawn. that is it for trending business. eming up next, it is asia dge. looking at those numbers coming out of china. getting slow in the country.
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a sign that the japan recovery remains exactly that. a fragile one. we're seeing asia earned equities slightly flat. that is all next. ♪
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that is victoria harbour, that is monday, and it is the middle of the trading day. this is asia edge. ♪ a look at our top stories. the stock reaction responding to the u.s. jobs report with a shrug and a yawn. markets are called at the beginning of a new week. drop in next boards, all adding to calls for more stimulus. go with the flow.
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japan's recent or you see has been good for goldman sachs. >> coming up this hour, a rush to the exit. investors are increasingly losing trust in asia. then, and is prime minister is caught between a robot revolution, undercutting his job creations game. control, all that and more on this monday edition edge.a chinese export numbers not engendering confidence among investors. it has been a volatile run for markets in the past few weeks. the index down by 1.2%. look at the shanghai composite. 2% higher.


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