angie: cleanup plans. bw says no china made cars are involved. germany demand they fix it strategy next week. attacking the hackers, washington and beijing a great and new tactics. obama says sanctions are still a possibility. made in india. zuckerberg reveals facebook's history. welcome to "first up," i am angie lau coming from hong kong,

streaming on mobile and bloomberg.com. markets in asia, the first trading day in the week. new zealand climbs actually higher. the new zealand dollar is at $.63 u.s. cents. let's go over to japan. 225y 225 last -- nikkei closed up. futures in chicago point to a lower open this morning in asia. dollar-yen, a few markets closed. no training in hong kong after the mid autumn festival celebration. south korea is closed for harvest moon day. to the top story, reports from been given 10 has days to come up with a plan to fix it's in missions scandal. new details about the global scale of the issue. vw says no cars made in china

were affected. shery ahn has the latest. shery: it continues to expand. the deadline is nearing. told vw car regulator to have a plan for if and when their cars will meet national emissions standards. that deadline is october 7. that is next week, wednesday. that deadline is coming up. vw says they will present a plan in the coming days, but carsber, it is 11 million globally. vw says they will notify customers. still, it's a big issue here. both incars globally, china, saying 1900 volkswagen vehicles could be affected by this diesel engine issue. -- the w already bw has had to bang recalls.

they risk losing consumer trust in their largest market. they have been struggling in china. dropping 5% through august. angie: how are they fixing this? shery: they're trying to do everything they can to vw,amline decisions within for example on friday, they had a board meeting that cap data capped a tumultuous week. they were trying to figure of whom know what and when. a source says documents from four years ago flagging illegal software that was installed in vw the soul cars was never sent off the chain -- up the chain of command, underscoring the need for an external investigation. vwther or not that is true, will give more authority to separate brands and regions trying to decentralize the organization. outw ceo will carry

streamlining plans that he devised with his predecessor. scandals affecting major players in the auto industry. suzuki dodged a bullet. shery: they just ended a four year dispute with bw over failed agreement, a cooperation agreement. they ended up offloading all their shares in vw to porsche. a one-time gain from the sale. the shares, this is a clear commitment to their core investment. hit,ares have taken a huge wiping out more than $20 billion in a week. suzuki starts trading in an hour. we will see what they do. you.: thank

checking other headlines, china's slowdown ways on commercial rental prices in hong kong. kinetic retailer color makes -- color mix. prices for prime kong are expected to drop 15-20% this year. china's growth could be stabilizing. the monetary conditions index improved for a second bump in august -- a second month in august. china has been on a ten-month campaign to relax monetary policy as the country looks towards reining in consumer spending -- gains in consumer spending to boost the economy. boost the economy in northern regions. the state council wants provisional governments to

attract foreign investment, speed up infrastructure construction, and strengthen environmental protection. the program covers beijing and northeastern provinces. china and the u.s. announced an agreement to crack down on corporate hacking. the pledge to tackle the theft of corporate trade secrets. the president barack obama says he has not ruled out sanctions for violators. we have a correspondent joining us from washington. how significant is this? tothe agreement they came up , was sort of a compromise. there wasn't a big major nuclear type arms treaty, but they agreed not to hack each other's companies and citizens, and not to steal each other's intellectual property. happenshand him what from here, whether the u.s.

government and chinese government can continue the dialogue and president obama did say sanctions remain on the table, that he will use that tool to protect american businesses and companies. angie: what else did they discuss? there were several issues they talked about. they did not resolve many things. the top thing they were able to talk about was climate change. china at -- agreed to combat climate change, which the u.s. had called for. there were other issues they talked about. china's economic activity, but they did not resolve many things. things like the asia infrastructure bank, which the china has looked to the u.s. to endorse or join. that is still not resolved. human rights issues in the south china sea, those issues were left unresolved. you might even say the division between china and the u.s.

increased, even, during this. angie: really. it shows just how many obstacles still remain here. been tot xi jinping has the u.n.. what was his message? was cochairinge an event about gender equality, which talked about the divisions between the u.s. and china, because the u.s. is calling on china to increase actions on women's rights. china has failed a few women activists. he talked about that yesterday. tomorrow, he will give a speech in front of the u.n. and he will talk about everything from woman's rights to china's economic activity and growth. he recently pledged to billion billionto add -- $2 towards global poverty. he will talk about that, as well. angie: thank you. indian prime minister has been a busy man in the past couple days.

taking to wall street to talk finance, and in silicon valley. he is looking to drum up investment. us,ing into this visit for he surely made the rounds, didn't he? >> he is looking at the fortune 500 comedies -- companies. investments u.s. into india up 90% since the prime minister took office. there are many countries in the world who don't know where to place their money. here is the address. call me. maybe. he is looking to court investment. he visited a tesla factory and talked with elon musk about how battery technology can help. he met with tim cook and invited apple to set up a manufacturing base in emea. looking at his goals, it is a $2 trillion economy.

he hopes to grow that 10 times. he will need the investment technology, the expertise, and again, the technology transfer, to upgrade or bump india up the value chain. that being said, google in india is a good example. they are looking to bring high-speed wireless internet to 400 railway stations. at the townlooking hall he held with mark zuckerberg. they looked at how social media, and keeping in mind that the primus are as active in social media, they looked at how social media has changed accountability dynamics. strengths of social media today is that it can tell government where they are going wrong, it can stop them from moving in the wrong direction. --can make them aware, and

about going in the wrong direction, and give them opportunities to do corrections. elections every five years, but now we have them after every five minutes. connectinglanned on 600,000 indian villages via fiber-optic cables, which is a daunting task. angie: part of his reform mandate. david: bypassing the middleman, connecting the infrastructure across india. angie: infrastructure is a serious issue in real life and in the digital space. he is scheduled to miss -- meet with barack obama today. what kind of business will this drum up? david: we talked about tech. defense spending is one of the key things on the agenda. there has been a surge in the amount of money that india has actually funneled towards u.s.

defense contractors. it was a most nothing five years ago. last year, the u.s. over to russia, which held the top spot for six -- 60 or 70 years. is thecan see, india second largest buyer of u.s. weapons. the latest transaction announced last week was the biggest contract since the priming is looking truck into power, $3 billion. thanks, david. you can get more on that story and today's top story as our digital destination. the best of bloomberg news, digital contact, and television, all in one address. on bloomberg.com, how the fed delay is buying an indian billionaire a few more months of cheap loans. plus, why the biggest you want reforms in a yuan decade. all of that on bloomberg.com.

coming up next, we take a look abe'sllenges under shinzo economic policy. what will drive the market this week. you are watching "first up." back in two. ♪

angie: checking the stories making headlines, thai police say two men they arrested a month ago were responsible for the bangkok shrine bombing in august. identified as the suspect in a yellow shirt, seen planting the backpack bomb. another man is accused of detonating the device. officers say the men have confessed and face multiple murder charges. police believe the attack was for them breaking up a people smuggling operation. indonesian authorities arrested the tight captain of a cargo

ship on suspicion of illegal fishing and human trafficking. the ship was carrying $2 million worth of frozen seafood. it was stolen from indonesian waters. the fisheries minister says investigations will be carried out into allegations the ship's crew were slave laborers. the owners said the ship -- the owners of the ship and i run doing. -- deny wrongdoing. and an enormous sinkhole sectiond up an suv as a of sand a way. the whole build with water is 150 meters long by 50 meters wide. around 140 people had to evacuate the area. there were no reports of injuries. big eventsome of the this week, will india's central bank cut interest rates for the fourth time? we will find out on tuesday when

it releases its rate decision. economists surveyed estimate a 25 basis point reduction. the governor has been under pressure to lower rates because of the drop in inflation. he said, further easing will depend him a strength of the monsoon. shareholders of troubled giant toshiba meet in tokyo on wednesday. their investment dropped 40% of value this year. that, following the accounting scandal that forced the firm to rescind year of earnings. a panel is investigating whether her current board members failed in their duties. on thursday, china's national day. they are celebrated the 66th anniversary of the founding of the people's republic on october 1, 1949. president xi jinping will be back from his u.s. visit and is expected to make a televised address. we will find out how close korea's central bank is to its

inflation goal on friday. economists surveyed riddick the seat -- predict the cpi rose. its goal is up to three and a half percent. it has missed its target for almost three years. for more on the week ahead, we are joined by the chief market strategist at ij. seemed like a quiet week on the domestic side for australia. i think china will drive the wave there. we have pmi figures coming out from china. it is a shortened market week for them. what you think? is: everyone is supersensitive to china. the world banks, the federal reserve. it will be interesting to what sees -- what happens of a larger manufacturing numbers, whether there will be any impact from the stimulus and easing.

it will be a surprise -- it will be a surprise to see improvements and get revisions to the numbers. we are supersensitive there. the biggest impact this week is really going to be coming from the u.s. data. we have a number of spaces, including bill dudley from the new york fed. it will be interesting to see if he can show his hand in terms of where he still stands. janet yellen is in the defender campaign -- cap. angie: it seems that the federal reserve is streamlining that --sage that continued for after four fed presidents and continued this week. what strategy should investors employ? chris: the spot dollar interest -- index looks interesting. a nice break from the recent

heights. the long dollar story is one that is very much intact over multiple time frames. against the u.s. dollar commodity currencies, and the australian dollar as well. we wouldo reaction, as expect, from the elections on sunday. the dollar continues to be a dip. the market is under-pricing a december rate hike. i think that should be much higher than where it is at the moment. if we get a good number, if we get a good number in the payrolls thomas specifically the look of the average hourly earnings, expected to be a 2.4%, he comes out of the number, that would be the highest since 2009. the market get excited about the earnings, evenf though by long-term averages, they are lackluster. you can accumulate dollars this week on dips and hope we get a

2.4% number. the dollar should do well. angie: are there opportunities in japan? boj has to take a look at the data. they may be concerned, they are not only not even close to 2%, they are in contraction mode. how would pricing in any potential moves there, in terms of market? s: there seems to be a bit of an extrapolation going on between what is happening in the yen and certain companies, certain equity within japan. i still think if you are looking for -- earnings growth, japan is one market will you will get it. see further easing from the bank of japan. everyone is getting excited to hear more on the 30th of october. to understand what an extra 10 trillion to the asset purchase program, will do to inflation, exploitor inflation

tatian's -- expectations. it will benefit individual and -- equities. it will be much more on the fiscal level. he program. the qqq quickly, talk about the decision that the governor has to make. in india. obviously, the monsoon 15% under expectations. the prices have been high. they will downgrade their growth forecast. inflation is lower than the target. .e has to make a decision i personally sent in the cap that the market is overpricing the risk of 25 basis points. i think they will, but if you were looking for a risk-reward rate. angie: chris weston, thanks for

joining us. the first trading day of the week, ig market live from melbourne. crunch time. do or die for england, after the .hock the world cup report and the news, coming up next. ♪

at thea big weekend

rugby world cup. england blitz the trophy on home soil. -- lifts the trophy on home soil. penalty to steal the win. and sunday's games, ireland beat scotland led after winning over the usa. australia posted the biggest win, beating uruguay 65 points -three. completely overwhelming the player hadcans, the a record score. teamlancaster knows the must be the wallabies to keep their hope alive. >> teams in the past have lost

the game, got to the final, we have seen it before. i sent the boys in the changing room, everything has to go now. angie: sony's hotel transylvania to set a box office record for september weekend debut. the cartoon, which features the voices of adam sandler and selena gomez, brought in $47.5 million in north america. it repeated the success of the original film come would set a record when it came out in 2012. the

>> it is; 30 here in hong kong on a monday morning. a beautiful live look. expected to be very hot. we are 30 minutes away from the open of trading in australia and japan. you are watching "first up." the top story this hour. vw says nearly 2000 vehicles in

china could be affected by the widening scandal. no cars produced by shanghai volkswagen are involved. newspaper says the federal motor regulator is ordered the w on how they will fix the cars involved. china has made an agreement with the united states to curb commercial hacking. the two sides said they had taken the first step since resolving one of their biggest disputes. they include broad anti-hacking principles. president obama pointedly said that he has not ruled out sanctions for violators. facebook boss mark zuckerberg has revealed -- has revealed success in his company. speaking at a q and a in silicon valley, zuckerberg said he was

sent to india by apple's steve jobs to clear his mind and solidify his vision of the social networks future. >> a loud people want to buy facebook in some -- and thought we should sell the company. and i saw one of my mentors, steve jobs, and he told me that in order to reconnect with what i believed does the mission of the company, i should visit this temple that he had gone to in india. early on in his evolution of thinking about what he wanted apple and his vision of the future to be. angie: let's check in on markets in asia. to new zealand, where we are seeing fractional gains. where also counting down to the opens in australia and japan. nikkei japan on friday, 225 closing the green.

in chicago over the weekend, after some clarity from janet yellen, still pointing to a slightly lower open this morning. dollar-yan is strengthening. global stocks are on track to post their worse quarter in court for years. -- in four years. julia is here. is this the corner that many would like to forget? grexit has been a pretty bad summer in the northern hemisphere. global markets on track for their worst-performing corner since 2011. we saw the s&p 500 down 6.4% this quarter. the regional benchmark index is down 13.7%. investors have been spooked by these slowdowns in china. also, these really mixed messages from the fed. janet yellen throwing something into it last week.

chinese stocks down 23.7% over the last three months. we will watching those manufacturing numbers this wek for clues and how the chinese economy is going. for u.s. manufacturing, equipment also fell last week, so really playing into that global picture. the nikkei is also weaker, down about 11% to. we will be watching how it all pans out today. later in the week, we have china on holiday for a whole week. angie: a bit of a quiet weekend asia to be sure. a roller coaster ride. volatility is back. how about safe havens? >> back in vote. the japanese yen, that has been one of the biggest winners.

by 1.6% across these parts. it is on track for it best performance. pern could rise to 115 dollar. some analysts saying it is really undervalued. this is really undermining shinzo abe's plan. it is really underdeveloped -- really undervaluing his whole premise. angie: the yen making it stronger and also cheaper oil. let's take a look at some of the key events that will drive markets in the u.s. this week.

street,eekend on wall we will likely to continue to see investors here bracing for more volatility. that is likely to dominate the headlines and all of this as the earnings season lies ahead. the latest on the labor market will be out. employers in the u.s. likely added more jobs than a month earlier. a separate report is expected to see spending and incomes probably advance in august fueled by the stronger labor market. another report likely shows that whole markets increased at a faster pace. deadline toes a reach a measure to fund the u.s. government beyond the end of the

fiscal year on wednesday, september 30. there is always a flurry of last-minute activity. finally, investors will be as federallosely reserve officials including bank chair janet yellen invites chairs stanley fischer, speak out in various forms. this, after yellen made clear this week that the fed doesn't plan to raise rates by the end of the year. york, bloomberg news. angie: time for a look at some .f the top corporate stories >> german chancellor angela merkel has confronted facebook's ceo over their efforts to curtail a racist post on the site. committed to

working with a nonprofit internet watchdog to monitor suspected hate postings. the thai have with disney will help the company expand in china. the overseas market could boost demand. uniqlo as added openings in its chinese store. does the will of its $5.5 million shanghai theme park next year. -- man in charge of demand in charge of japan's biggest ipo in recent memory says he is not worried about the volatility. company's $11.5 billion public offering will succeed as planned. the ipo is set to be japan's biggest since 1998.

it is also the largest sale of a government entity since 1987. those of the top corporate headlines this hour. the choking haze across southeast asia is now forced malaysia to close schools. singapore said the eris cleared enough to allow its schools to reopen. it has prompted singapore to take legal action now. today?ut of things >> malaysia's air quality worsened to a very on quality .evel , the airng the capital quality has been improved. take a look at the visuals behind me.

having said that, the equality still remains in the unhealthy range. as you mentioned, singapore has taken action. it has named five companies it says may have contributed to the haze. asia pulp and paper has been the government wants information on what has been done by suppliers. finally, pressure on companies which may be responsible for the haze. angie: thank you so much for that. coming up next, it is crunch time for the tpp. get it overed to the line.

angie: disgraced cyclist lance armstrong has settled a 10 year dispute over bonuses he was paid during his tour de france career. he earned more than $10 million for his apparent success and sudan after they demanded repayment. armstrong was ordered to hand over a 10 million are penalty for of growth. -- for lying under oh. new clashes at jerusalem's most sensitive holy site. flashpoint was the mosque on the last day of the holiday. the mosque is the third holy site in islam. is also seen as the

most sacred place in judaism. parties have won a , settingvote in spain the scene for the country's richest region to pay -- region to break away. catalonia's various pro-independence groups. has been saying there are a silent majority want to remain. the long-running transpacific partnership talks are resuming in atlanta ahead of a meeting later this week which may finally clinch a deal. our next guest says the tpp is a game changer. alan oxley is the former gatt.lian ambassador to isn't going to happen this week, this month?

grexit looks like it. -- >> it looks like it. president obama wouldn't have gone to the likes that he was. i think that explains the timing. angie: politics is certainly at play. there is a huge swath of americans who are starting to wake up to what tpp is politically. joseph stiglitz, very interestingly, has now said that this is too secret of a process. does this week in any possibility of a tpp deal. >> that is not going to be a factor. the u.s. government does console industry people on these measures, but it doesn't consult the wider groups. unions, coalition

health activists. angie: those groups of interested parties, and at the end of the day it is a democracy there and we're looking ahead to the 26 elections. current tpp be one of the issues that are being made as something to see. so. don't think the interesting thing about this is the congress. the up-and-down yes or no vote required a great deal of work and had to be put in place before. while the activists are very noisy, i don't think there is a general attitude in the community at large against this. interestingnt is an one because what it actually lays out is a future.

most trade agreements are about the past. at times past, tariffs were quite low. growth now depends on governments willing to open their services market, open for investments, and have a high standard of intellectual property. is this an economic threat to china? how are these asian nations doing this? this?wing >> i think you put your finger on an interesting point. most of the parties negotiating already had fta's with the u.s.. when change the game was when japan joined. certainly you have 40% of world gdp. that is when china started showing some interest.

china was basically told that they weren't ready to join this negotiation. right now, there is discussion developing about a bigger trade chinaent among all apec -- apec countries including china. angie: it would be incredible to see. let's see if they can get it done. thank you so much for joining us as we watch this deal five years in the making. sushi up next, the art of and demand for the best catch around the world. how japan is looking to hook new markets.

angie: we're taking a look ahead

to the openings in australia and japan. our reporters are here to tell us what they are keeping an eye on. a public holiday in hong kong. >> mountain bike racing. first-half operating profit of 18%. sales up 7%. quit if you buy recommendations. we are expecting it to do quite well today. david.right, you have your marching orders. nikkei newspaper reporting that the company may miss its first half operating profits.

you can't cut trees in japan this week. it should be reporting a gain when it comes to net income, a one-time gain there. jean's pipes to paper to . a retailer in japan hasn't had a great month. their first-half operating loss widened 11 times two $2 million. this is in line with the preliminaries take your given last week. i am, let's see what happens. angie: that is the verdict on the stock exchange. all right, well the country that gave the world sushi now finds itself with an oversupply of fish. more people choose to eat meat.

that is forcing fishermen to take a look at their neighbors for new markets. cut, tog the perfect deliver that delicate piece of sushi. it looks easy but it is a that chefs take years to master, and it all starts right here with the right selection of fish. global competition over who has the best catch. lifeline forbeen a industry that still work around $12 million per year. the number of fishermen has almost have in 20 years. 30%, held largely by a weakening yen. >> we have been trying to export more fresh fish to japanese restaurants in asia.

they have been on the rise globally so we expect the demand to grow rapidly. we have recently opened a restaurant in singapore where we serve our products that cater to the taste of local. japan toen goes from singapore. it opened earlier this year in singapore's business district, hoping to attract the working class with its variety of japanese fish. tokyo'sport fish from market twice a week and also in various ports across japan. we provide not just popular fish like tuna and salmon, but also different kind of fish only available in certain seasons. we try to explain to the customers of the type of fish we provide and where they come from. seven remainia,

the top choice for sushi and sushi me. away, so000 kilometers japanese fish supplies are promoting their proximity. but for some customers, it doesn't quite matter whether a fish is strong -- where a fish is from. >> as long as the food is good, i will be there. >> all that matters is the taste. angie: i am salivating right now because the pantry is closed -- the bloomberg pantry. i wonder why more people are eating meat. ?s it the paleo diet isn't the paleo diet about

what you can hunt? you could hunt the fish. >> maybe westernization. >> we do eat more meat in western countries i think. >> what about, since fukushima. >> i think it did for the first year. at least, i didn't go eat sushi after that. not anymore. i think we have our own fish.

>> should be put in an order for sushi? good story there. taking a look at the next hour of the show. we'll a look

angie: vw says no china made cars are involved. behind the numbers. global stocks enter their worst quarter in years. sending a message. a head with the idea of saying it is time to focus on the bigger picture. to "first up." coming to you live from our headquarters in hong kong and

streaming on bloomberg.com. say vw hasm germany been given 10 days to come up with a plan to fix its growing scandal. there are also new details about its global scale of the issue, with vw saying that no cars in china are affected. we had our shery ahn with the latest details. >> the deadline is october 7, that would be next week on wednesday. will has said that they present the plan in the coming days. what we're hearing now from german media is that vw was warned years ago about this illegal trick. when news outlet reporting that a vw technician raised concerns about illegal practices in 2011. this scandal is just

snowballing. 11 million cars globally. venture,se joint volkswagen t1 vehicles in the country may be affected by this diesel engine. they had two vehicles in china in the past two years. >> how was the cleanup coming along? >> it is happening. on friday, they have a board meeting. they went four hours into the evening trying to find out who knew what. a source said that documents from years ago that flag the software was never sent up the chain of command. that shows that they do need some internal -- some external

investigators to find out what really happened. but they are trying to implement some sweeping changes at the country. first of all, they said that they would give more authority brands andal regions, trying to decentralize the country. the former porsche boss is now the head of vw and he will be streamlining the company. he will be implementing a plan that he devised with his predecessor. of course, all of this after that huge plunge of vw stock. angie: it has shaken the auto industry. it seems that suzuki has dodged a bullet. >> their failed partnership is now settled. will be booking a $300 million one-time gain. angie: not bad in terms of

timing. let's take a look at how markets are trading. 200ustralia, where the asx is just fractionally lower. 70 year. 225 has been pointing to fractional losses this morning. let's see where it is right now. juliet because global stocks are on track to post their worst quarter in four years. much of that is due to the slowdown in china and uncertainty over rate rise in the u.s.. how many of us would like to forget this quarter even exists. >> it hasn't been a quarter investments would like to remember. we saw the s&p 500 finished last week down 1.4% in the u.s.. quarter in6.4% this

global markets. regionalee the benchmark index has had an even worse quarter. a number of factors really weighing into this. we have at the slowdown, the equity route in china, and of course makes messages from the fed. we are going to hear from six separate fed officials this week. the shanghai composite over the past three months, down 23.7%. of course, we had that big slide coming through. the last three months has been quite disastrous for chinese investment. also, japan hasn't had a good quarter either. it will be interesting to see how it all plays out into the last few days of the quarter. today, hong kong, korea, antiwar markets. nikkei 225 down 1/5 of 1%

, so extending the losses of this quarter. it has been very volatile, a roller coaster ride. where are people park their money now? the gold and also the japanese yen have been that if this year is. that has just been over the past three months. 1.8% against the u.s. dollar. so the u.s. dollar has been weakening. we have been seeing people slide to this safe haven. over the year, it is actually the best-performing major currency. 115 against the dollar by the end of the year. all of this is not great use for shinzo abe. , what is theis

bank of japan and the prime minister going to do now? they are running out of ammunition. the opposites what we've seen in global equity. opting -- necessarily not necessarily abe-nomics. the man in charge of the largest ipo in recent japanese history says he's not worried about volatility. he says the $11.5 billion public offering will proceed as planned. it is that to be the biggest in japan since 1998. it is also the largest sale of a government entity since 1987. china's growth rate could be stabilizing. conditionsonetary improved for a second month in august.

that is the first back-to-back games since 2013. the country looks toward consumer spending to balance the slump in exports and an investment downturn. china has approved a plan to boost economic growth in cities and provinces linked to coastal regions. the state council wants provincial governments to coordinate efforts to attract foreign investment, speed up infrastructure investment, and the program covers the northeastern provinces. china and the u.s. announced an agreement to crackdown on corporate hacking. they pledged to tackle the theft of corporate trade secrets, but president obama says he is not ruled out sanctions for violators. white house correspondent joining us from washington by phone. how significant is this?

>> they came into this meeting hoping to have sort of a major cyber deal and they came away with something more than minor compromise. they both agreed to continue dialogue on this issue and they agreed that both governments will not target the citizens of the companies in u.s. or china. they have sort of a minor agreement and president obama made sure that sanctions are still on the table so if things don't go well the future, the u.s. could levy sanctions against chinese companies or individuals. angie: is a -- this is a big issue, minor agreement. what else do they discuss? >> ciber was the main issue but there were several other things. were some discussions about climate change. probably the biggest agreement

was on climate change. china agreed to institute a new system for curbing emissions. now, china is on board in it seems they may have an agreement in december. wasn't ases there much agreement on, things like the asian infrastructure bank, human rights and the south china sea. those continue to be sticking points against the two countries. angie: busy week for obama their hosting world leaders. what was the press -- was message? xi jinping's >> he has been talking about gender equality, another sticking point. the u.s. has called on china to increase its actions on gender issues.

china has jailed a few women activists. that is one thing president xi was talking about the u.n.. he also great to get about 2 billion more in funding for poverty relief. the u.s. is called on china to do more for poverty relief. angie: joining us from washington, thank you so much for that. coming up just ahead, our next guest says don't hold your breath for more stimulus in china. we find out why after this short break. ♪

angie: if you don't like roller coaster rides, you certainly got used to it this past quarter. joining us now in studio to talk more about the market is mark

matthews, head of that research at julius there. china starting to create the dips and valleys for us roller coaster riders? that the market is bottoming. so, that big down move that we have had since june is largely completed but we are building a base which is also a sloppy base bradley 2802 -- from broadly 2800 to 3200. around twice -- around 12 times next year's earnings. companies clash -- companies cash flows are increasing. they given rising for five consecutive quarters in corporate china. there is less than a trillion

renminbi which puts it at about 7% of market cap, which is in line with the u.s. and europe. angie: we heard from xi jinping during the u.s. visit that medium to high growth is still on the table. do you think stimulus will be part of that equation? >> nothing more than they have done so far. if you look at the ways the markets have reacted to stimulus , i wouldn't say it has been in any way a driver of share prices. when they cut the reserve requirement ratio, markets still went down. reform. market likes is that, i do believe we will get more of. generally, over the next few years.

every money manager that i have talked to, there would -- they are having a wait and see approach. i think that china is very cheap, particularly here in hong kong. angie: what are you buying? >> the banks, to me, are a standout in valuation terms. in my own career, i have health -- i hardly see this. it's you can ever find a company whose price-earnings ratio is below its dividend yield, you should close your eyes and by. i have only seen it myself in extremely cyclical industries but the strategy does work. i would say that chinese banks are trading on five times pe here in hong kong. angie: so you are closing your eyes and buying chinese banks?

>> i think they will be up 12 months from now. asset class entire should be higher than it is now 12 months from now. angie: mark matthews, always good to welcome you in our studio. checking some of the stories making headlines around the world now. thai police say two men they arrested almost a month ago are the ones responsible for the bombing in august. the yellow shirt seen planting the backpack bomb. another man is accused of detonating the device. the men now face multiple murder charges. an indonesian authority --

indonesian authorities have arrested the thai captain of a ship on suspicion of illegal fishing and human trafficking. ship was carrying seafood stolen from indonesian waters. further investigations will be carried out into allegations that the ships crew were held as slaves. australia hase in swallowed an suv and two caravans. awake as a shaken section of the beach fell away. the whole, now filled with water , is 150 meters long by 50 meters wide and up to three meters deep. there are no reports of injuries. coming up next, the popularity poison pill from traders fleeing to the yen is bad news for abe. ♪

>> is monday, the 28th of september. investorsisk-averse are becoming the nemesis of japanese prime minister shinzo oblique. e. shinzo ab prompting traders and investors to flee to safety than assets. the yen has arisen each corner

and research suggests there is a chance it could gain to 113 per dollar. the u.s. has taken a step toward backing china to have the juan recognized as a global reserve currency. the two sides issuing a statement saying the u.s. will u.n. meetsna if the the criteria. the executive board is expected to make a decision on the reserve currency as early as november. the dulles has held -- the dollar has helped games for the first week since july. the greenback bounced against all of its 16 major counterparts last week. the dollar will be in focus this as investors will hear from no less than six federal reserve

officials. let's get a check on the yen and also the commodity charts. we are seeing the japanese yen once again rise against the u.s. dollar this morning, up by about one quarter of 1%. -- if you lookad at the aussie dollar, it is a little weaker against the greenback this morning. still holding about that 70 mark. investors will be pretty happy with that level. . quick check the greenback still in focus as we had been mentioning. a little bit weaker there, but certainly there has been a lot of focus on the greenback. it will be the one to watch this week.

angie: thank you. the countries that -- the country that leads in the world series she now has an oversupply of fish. more people choose to eat meat. that is forcing fishermen to look to their neighbors for new markets. >> making the perfect cut to deliver a delicate piece of sushi. it looks easy, but it is a culinary skill that chefs take years to master. it all starts right here at the port. with the right selection of fish. competition global over who has the best catch. exports have been a lifeline for an industry that is still worth around $12 billion per year but the number of fishermen has almost half in 20 years.

japanese seafood exports rose 30% in the first half of this year alone, have largely by a weakening yen. >> we have been trying to export more fresh fish. they have been on the rise globally so we have seen a demand for fresh fresh to rise globally. we have recently opened a restaurant in singapore where we serve our products that cater to the tastes of locals. jan --it goes, some from some from japan to singapore. hoping to attract a working crowd with its variety of japanese dish from different tree six. >> we import fish from tokyo's week and also directly from various ports across japan. we provide not just popular fish like to do and salmon, but also different kinds of fish

unavailable in different seasons such as the rainbow trout. we tried to explain to customers about the type of fish we provided where they come from. sushi remainsa, the top choice and fish from norway seem to be the most popular. japanese suppliers are promoting their proximity. but with some customers, it doesn't quite matter where the fishes from. >> as long as the food is good, i'll be there. >> all that matters is the taste. angie: "hotel transylvania 2" has set a box office record.

it brought in $47.5 million in north america and repeated the success of the original film, which also did a record when it came out in 2012. we want to get you some live pictures right now out of lisbon where stargazers are about to get a double celeste teal treat. super moon, also known as the blood moon. last time this occurred was back in 1982. coming up next, no smoke without fire. singapore turned to the law to clear up the air.

angie: it is 8:30 in singapore. the hayes continues to envelop the city. it is extending from indonesia to malaysia and the rest. we are about 30 minutes from the open of trading there. the top stories this hour. asian stock markets start the week lower as equities had for their worst quarter in years. iner $5 trillion selloff

august. , the s&p 500 is down 6.4% this quarter, dragged down by biotechnology stocks. volkswagen says nearly 2000 vehicles in china may be affected by the widening scandal. no cars produced by shanghai volkswagen are involved they say. 's bild newspaper says they have issued a binding from vw ona timeline how they will fix the cars involved. china has entered an agreement with the united states to curb commercial hacking. the first steps toward resolving one of their biggest disputes. they include broad anti-hacking .rinciples

although president obama pointedly said that he has not outd out in oak -- ruled invoking sanctions. today, but how is some of the rest of the region faring in early trades? >> a little bit of a mixed picture but it hasn't been a great quarter for investors. three more days left of this quarter, and it is one that investors will be hoping to forget. down by 1.3%, adding to that 11% loss of her the last three months. korea is closed today. taiwan will also be closed. it will be a bit of a quiet week because later in the week, china will be closed for golden week. really the were

losers coming through on the nasdaq. suppliers underpinning that rally we saw in the u.s. biotech stock. toshiba down by 1%. over in australia, despite the pickup,t we have seen a down by 1.5%. it is going to be a pretty quiet week. we have to remember that we have chinese manufacturing data coming through and also the u.s. jobs report. certainly, september is shaping up to be one of the worst quarters for global markets we have seen. thanks.

a choking haze across parts of southeast asia has now forced malaysia to close schools around kuala lumpur. indonesia fires in have blighted the region for weeks, prompting singapore to take legal action. let's get the very latest from our southeast asia correspondent. how bad are things today? >> we are breathing slightly easier. , an improvement in air quality after hitting unhealthy levels yesterday. that led to the call to shut schools in five areas around the capital. here in singapore, the air is also better today but it still remains in the unhealthy range. you are seeing live pictures right behind me. singapore has taken action. five companies have been named

that are seen as contributing to the fires. asia pulp and paper is based here in singapore. the government is looking for information on what has done by suppliers. as you can imagine, the hayes is putting a strain on bilateral particular over a comment made by indonesia's vice president. he has said that indonesia's neighbors should be grateful about good air quality most of the year and that your car not apologize for the crisis. angie: how significant is the move taken by singapore? time that the first any action has been taken by , companies identified as the start of the legal action. they say parent companies must note that there is a price to be

paid for damaging our health, environment, economy. singapore adopted a legislation here. those found guilty can be fined at $2$100,000 a day, cap million in total. some experts say that is not enough. they are calling for stiffer fines, more policing, even rewards for whistleblowers. the biggest challenge is identifying who started the fire. angie: thank you so much. time for our look at some of the top corporate stories on the bloomberg terminal. >> cosmetics retailer color less when it will pay it moved to hong kong. china's economic slowdown continues to weigh on commercial rent in hong kong.

prices for prime space in hong kong are expected to drop 15% to 20% this year. disneys tie up with will help expand its growth in china. uniqlo has promoted an entire floor with products designed with disney in its store. its $5.5ll open million -- $5.5 billion shanghai theme park next year. german chancellor angela merkel -- confronted volkswagen ceo facebook ceo. mark zuckerberg says his company needs to do more on the issue during a u.n. development summit. facebook has committed to working with a nonprofit internet watchdog for internet

hate posting. india's a central bank gets ready to make a decision on race tomorrow, the country's biggest lender says it has seen inflation go below the r.b.i.'s target. they say that leaves room for a rate cut. how fbi cancussed compete with more nimble financial startups. >> we need to be able to digitize our processes and also be ready with the kind of offerings that young india tends to need. we have today, customers who are global citizens. we also have customers who cannot even read or write. we have customers who are senior citizens and a whole lot of

young customers. we need to be able to position ourselves. >> the growth seen in the last decade has been a lot through new branches. what should a branch look like in the future? you talk about moving on to mobile platforms. what is the value of a branch? >> we still have a large number of people who want to come to the branch. you have a large number of older people who still find it comfortable to walk into a branch and interact. -- youconsider the fact have to have a very high amount of visible security for people four people to feel comfortable interacting.

>> people need to feel psychologically that their money is literally safe. inthey have a place to go case they really want to inquire what is happening to their money. angie: coming up next, occupy with the biggest street protest ever seen in hong kong. when you're on, what did it achieve? ♪

angie: the nuclear deal iran agreed to with world powers main sections may soon be lifted allowing the country to rejoin the international community. many parts of the economy have been badly hurt by the sanctions , including the world famous persian carpet trade. bloomberg spoke to one run the ruger -- spoke to one

trader. >> people are making money in this business. >> i have been in this business almost 40 years. sell.not france, the united states, canada. the prices are increasing. month.eek, every this is a tribal made carpet.

i have enough money for the rest of my life. it is not so important. carpets, forke then it -- for them it is difficult. enough.i have checking some of the stories making headlines around the world. disgraced cyclist lance armstrong has settled a 10 years food -- 10 year dispute over bonuses he earned during his tour de france career. million andan $10 soon after they demanded repayment. no details of the settlement have been released but armstrong says he is pleased to put the matter behind him.

new clashes have broken out at jerusalem's most scented holy site -- most sensitive holy site. the situation was quickly have a control. on the lastnt was day of the holiday. it is the third holiest site in islam, but the temple is also seen as the most sacred place in judaism. proceeds session parties have 18 ccession parties in spain have won a landmark vote. catalonia's various pro-independence groups say there is a chance of majority reaching an assembly. the dread has been betting there was a silent majority of catalog . -- majority of catalans. today marks the one-year anniversary of occupy hong kong,

which also became known as the umbrella movement. activist groups have called for a rally outside of government headquarters this afternoon. last year, protesters battled tear gas and pepper spray as they thought for free elections. they ended up occupying the streets for 79 days. so what has changed and what is next for hong kong's democracy movement? joining us now is alan long, the leader of the civic party. how much remains the same? how much is changed? far, it is beijing's position on giving hong kong the promise as far as universal suffrage is concerned. i don't think it has moved an iota. but the occupation has changed hong kong. it has moved the world because other demonstrated to

david's of the world how you can face up to this goliath and can preserve your right to tell what is right and what is wrong and the dignity to call a spade a space. i think this is very important for hong kong to continue with this fight for a truly accountable government, without which, we cannot hope to sustain the rule of law as an institution and also continue to enjoy our freedoms. so i would say that the 79 days of occupation being the first wave of the about -- the first wave of the umbrella movement, has certainly changed hong kong. changed, june, that and defeated that china backed voting plan that was put forth.

they did not get the two thirds a 2017y to provide universal suffrage platform for voting. what now? it was a take it or leave an ultimatum. where do you hope things will go? china has shown very clearly that there is no plan in place. president xi jinping has been visiting the united states of america and he was trying very thatto tell the americans china was not a threat to the americans. but what better could it be to honor the basic law and give ,ong kong universal suffrage fully accountable government? that would deliver a strong and loud message to not only americans but the world, that

member of trustworthy the international community. i urge the president to really go back to the basics, not try -- confront the hong kong people desire. we have been promised universal suffrage, without which we could not hope to continue to enjoy our freedoms and to sustain the rule of law as an institution. right now, student leaders are being arrested over the past couple of months. we also have officials from thatng basically saying laung is above the powers.

would you make of that? >> my advice for president xi jinping is to come out as soon as possible to correct all of these unwanted and uncalled for , from either serving officials or x officials that presented themselves as mouthpieces for the central people's government. beijingally no good for to continue to tell hong kong that you can forget about what beijing promised you 30 years ago. this is a very, very hard message to swallow.

people will not swallow it. -- judge on tell us the appeal that come from other common law jurisdictions. the three powers, the legislature, the executive, and the judiciary. don't tell us that and don't try to suggest that by decolonizing hong kong, you can render hong kong once again governable. cost of our not forgetting about the colonial days, it is because beijing has not delivered the promises that made hong kong reverted to chinese sovereignty. angie: we have run out of time.

party withthe civic those tents behind him as protesters are being called to converge on the anniversary of occupy hong kong. coming up next, a prop -- a profit boost. ♪

welcome to the stock exchange. 7.4%. first-half operating profit of 18%. regular biplane and children's bicycling as well. an increase in operating profit. buy today on a selloff,

generally speaking. i didn't check the stocks before coming up here, so congratulations. the nikkei newspaper reporting that the company had a 30% drop in profit expected. lossrst-half operating widened 11 times. this pulmonary figure last week and i expected it to fall further because last week and didn't move that much. maybe when they really get it officially they would move. i am happy as long as david doesn't win. the verdict from the stock exchange.

trending business coming up next. we are going to be looking ahead to the r.b.i. policy decision happening tomorrow. the chairwoman of the bank of india will be talking to us. she says inflation below the charter right now given the window for the governor to cut interest rates again. we are also talking about xi's trip in the u.s.. kerry brown from the university of sydney talking about this, saying that his message in the u.s. is going to be a tough one to sell. we will also find out what beijing thinks about the movement -- about the occupy hong kong movement one year on. also, we will talk about the yen.

the architect of the hong kong currency peg to u.s. dollars says it has not appeared to be any more market-driven today than it was. angie: thank you for watching.

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>> it's monday, the 28th of>> december. i'm yvonne man, and this is ."rending business ♪ rish: we are going to be in tokyo, singapore, and beijing, but first, here is what we're watching. a global gloom. stocks had for their worst quarter in four years, markets hit by the slowdown in china and uncertainty about a rate rise in the u.s. vw