you are watching us here in asia. how much of today's action in asia is going to influence how wall street opens tomorrow? >> it seems to be in a virtuous ous circle.nvirtu you do lousy in the u.s. and asia gets it and europe gets hit and they seem to be running a negative feedback loop that not all things are the same for everyone. automakers probably sold a lot of cars -- when i was visiting china, we would go to the border across from hong kong and they were brand-new bmws and mercedes lined up like crazy at the border. i didn't see many us-made cars in that line. it looks to us like american investors are getting a haircut. they could go on for a wild but it is probably not an interruption of this secular bull market that virtually no one has loved anyway. see a we are not correction since 2011 for the s&p 500. at the end of the day, is the now,for correction right is it warranted if you take a look at the fundamentals? >> that is the one thing that was noticeable today. there were a number of things. we are not m

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. policymakers say they want to stab the stock market route. we are seeing optimism, shares shipping on the prospective deals in the space. we'll get you more details on that as we receive them. region, i doubt day across south east asia is on holiday today. they celebrate the 50th anniversary, and we wish them well in the lion city. malaysia, some challenging times. selloffl risk showing a , foreign investors get on the market. keep an eye on the market. vietnam giving us a little reason to be optimistic, and the philippines, philippine airlines is a key member, as it executes its turnaround. rishaad: thank you. policymakers to boost st

asia as well. so it's much larger than just japan, south korea and china. those three country member of all but they do very large memberships and i think that a lot of it is focused on the experience of nuclear country can tell the countries looking to the nuclear power what to do, how do we do nuclear. how do nuclear safety, how do we do nuclear security and safeguard. not necessarily cooperation among the extent nuclear countries, but also to be blunt, a lot of these i think are kind of talk shop. you come and talk about things but there is no enforcement of it or really have some sort check to make sure to talk about is going to be put in practice. so i think this kind is to the cooperation is good, talking but it is good but what does it mean in the end. so maybe that's where the napci proposal is trying to get at. on the international level, the iaea also does this. the iaea has teamed the operational safety review teams them come in and inspect reactors to look at safety practices, safety cu

in on thek asia-pacific. it has the below that 18,000 ofk and headed down three the momentum is downward. there does not seem to be a stop in asia at this moment on this global route. 3% down. cost be extending losses as to the commodity producer. equities down more than 1%. -- youining it is predicted the pboc will come in with a cut this weekend to try and stop what we are seeing as an worldwide [indiscernible] but let's focus in on the and mental's of us global out. are concerns about the slowdown in china. you take a look at the numbers. his china slowing down faster than people had originally thought? guest: definitely. china contributes the most incremental demand. the financialing crisis. tightens started to liquidity. it is in the name of deleveraging. we see the severe crackdown on the shadow banking industry in china resulting into several crises. this year we are seeing fiscal the concern ofto local government borrowing. a slowdown in chinese investment. slowdown is much faster than people expected

--david: that is asia for you across sectors. we are midday here in asia. hopefully this momentum does continue. certainly, we have seen an acceleration a little bit. futures of the dow. last i checked, they were bot

, especially east asia, economic growth has clearly peaked big-time in asia. for a number of reasons, three quick reasons, number one, demographyy. look at china, tie juan, sing powe, hong dong, south korea, japan. you hear fertility rates well below two, approaching one. compared to 2.1 in the united states. so, much of asia, especially east asia, that this phenomenal demographic dividend for three decades and is now entering a democratic deficit in the next few years. reason number two, the china story. china now accounts for 45% of asia's gdp. and its growth in china is growing -- is slowing much more than you think it is. reason number three, someone no one is talking about, especially outside of china. since 2008, much of asia, especially east asia, fell through this economic crisis. why? credit growth. debt. there's been an enormous -- and i'm not just talking about china, even outside of china, an enormous increase in credit growth. if no one really has talk about all throughout asia. in fact if you look at total debt, household, corporate, government d

we're seeing asia earned equities slightly flat. that is all next. ♪ 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. 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.

out theret is a rout across the asia-pacific. "ront and center on "asia edge today. do stay with us. ♪ let's take a look at the stories making headlines around the world. angie: singapore has been promised more editors ahead of elections. the premier announced plans to raise the employable age to 67 from the current 65. he said he would call in elections soon, which would be critical for singapore's direction over the next two decades. rishaad: the americans who helped avert a mass shooting on iteris-bound train a they acted purely on instinct. publicly foroke the first time since a heavily armed man tried to open fire in a crowded carriage. they helped subdue the attacker, who was a 25-year-old moroccan who authorities say had links to radical islam. angie: welcome back. steve, and is shery, the cohead of asian equities at mcquarrie asset management. thisad: we were looking at earlier. steve and i were messaging on friday about breaching 3500. stephen: on friday, it did that. sam: where is the support? stephen: you are saying china is losing the arm wrestling. sam

asia. hopefully this momentum does continue. certainly, we have seen an acceleration a little bit. futures of the dow. last i checked, they were both .orth of about 2% closing below 1900 on monday. that is one of the encouraging signs. asia. get you a map of these steep losses in the past two or three days has suddenly made these valuations attractive. in look at valuations back may. timese at about 15.5 earnings. , overnight -- well not overnight, three months, but somebody brought that down to 12.5 times. volatility measures, that is also taking the dow a step or two down. nowe looking at japan right . at aboutd the day out 118 -- at about 1.18 to the u.s. dollar. u.s. dollar.to the that was a q4 a lot of these investors in japan to start buying up. looking much better than at the open. 3000 level was actually under threat. have -- central called to action to offset this off -- this impact. into tuesdayrates were showing signs of stress. day.ieve 259 for the seven before i go back to hong

bringing it back to the asia-pacific. in southeast asia, watching the malaysian ringgit. this as the government releases the latest factory output numbers for june. that estimate is 14.3% for the expansion in factory output. we will be monitoring the currency amid the prospect of higher rates by the u.s. federal reserve. that is a check of the top stories driving the forex markets this monday morning. angie: foreign investors are losing confidence in malaysia, prompting the biggest fund outflows in seven years. scandal political swirling around the prime minister and growing doubts over the economy. let's go live to our southeast asia correspondent, haslinda amin. have we seen the worst? haslinda: not quite. further outflows are still possible. the sentiment is being eroded even more. let's look at the numbers. $3 billion put out by foreign funds this year alone. the klpi is slumping in that period. there is concern of a crisis. the company will focus on growth. as it is, malaysia has already had a commodities rout. the expected rate hike expected to weigh on it as well.

waves of colonial rule surged toward asia in the 19th century. there is no doubt that the resultant sense of crisis drove japan forward to achieve modernization. japan built a constitutional government earlier than any other nation in asia. the country preserved its independence throughout. the japan-russia war gave encouragement to many people under colonial rule from asia to africa. after world war i, which embroiled the world, the movement for self- determination gained momentum and put brakes on colonization that had been underway. it was a horrible war that claimed as many as ten million lives. with a strong desire for peace stirred in them, people founded the league of nations and brought forth the general treaty for renunciation of war. there emerged in the international community a new tide of outlawing war itself. at the beginning, japan, too, kept steps with other nations. however, with the great depression setting in and the western countries launching economic blocs by involving colonial economies, japan's economy suffered a major blo

that is how asia looks for you. the biggest loser, just about every single sector has been down. , 2.7%.r goods how is china looking? seng down 3.5%. shanghai is following suit, 3.8%. board, risk aversion, everybody is getting out of equities. the japanese yen. , 2.03ields, u.s. 10-year basis points. levels of us back to april. japan, 10-year yield, we are seeing red. the shanghai composite, 3500 is the line in the sand and we are clearly below that. the racing are gains -- erasing are gains for the year. -- erasing our gains for the year. market, aening in the lot of risk aversion. not good, that is the best way we can describe it. turmoil, falling currencies, slowing economies. the current chaos is starting to feel like 1994 all over again. now formlin joins us more on this. what are the similarities and differences between now and that time when china devalued? back -- back in 1994, china devalued and the fed was just about to begin a tightening cycle as well. in addition, the region, asia's biggest economy japan

asia it is reveling around -- riplpling around asia. course, vietnam responded by widening the trade demand for its currency and underpinned the blame directly on china. the weak currency will definitely pressure the exporting rivals. we might see some tit-for-tat in the coming months. could the bank of korea cut interest rates because of this move. they did not, but what kind of action are we asked acting? -- are we expecting? an interesting example. ofy have to be mindful capital outflows, otherwise the currency can get weaker. that a a balancing act lot of nations in asia have . that is why devaluation is a dangerous game. shery: what's interesting to me is that two weeks ago uber talking about currency wars because you were seeing new zealand, australia, kind of backing off. now you see all of this happening again, could there be a risk of a new currency war? revises the narrative, of course it does. if china continues down this path it will hurt rivals/ . they will want to weaken their currency. we are in a watch and wait mode. the

much of asia, especially east asia, has this phenomenal dividend. it is now entering, very rapidly, a demographic deficit. reason number two, which i will go into detail in about 60 seconds, the china story. china now accounts for about 45% of asia's gdp, and its growth is slowing much more than you think it is. reason number three, something no one is talking about, since 2008 much of asia, especially used asia, has sailed through this economic crisis. why? credit growth. debt. there has been an enormous -- even outside of china -- an enormous increase in credit growth which no one has really talked about. in fact if you look at total debt, household, corporate, government that is a share of asia's gdp, it is higher now than it was before the financial crisis in 1997. much of asia, especially east asia, has manufactured growth the past 6, 7 years, built on a surge in liquidity and death. it is a huge story. let's switch to china for a few minutes. given the recent slowdown in china the question is should the global economy be concerned? the short a

let's kick off the morning with a check of markets in asia. stocks extending gains from yesterday, down .1% against momentum for three consecutive weeks. new zealand dollar heading for a weekly loss of $.55. we are counting down to the opens in australia, japan, and south korea. japan has rebounded for two consecutive sessions. nikkei futures pointing to a lower open. at 124.71. u.s. stocks fell for a fourth time in five session, dragged down by biotech and media. su keenan is watching the action in new york. su: very big declines in the session. the thursday session was all about the drop in media. this is the fourth decline in five sessions. we are getting to the tail end of earnings seasons. earnings are driving sentiment. it looks like panic buying and selling. some of the action in these companies, dropping 9% or 10%. that type of action does not give you a warm and fuzzy feeling as an investor. let's look at media, where some of the big declines came in. disney in a second day of declines. a 9% drop for the biggest in six years. 21st cen

but the ripple effect is in asia. a lot of people seeing the signs of the financial crisis creeping up. are those concerns warranted? think what is actually going on is we are seeing exchange rates allowed to play the role in a more flexible regime. in the 1990's, the fundamentals were weaker than they are today. , that debt toures gdp, composition of external debt, which even in the case of malaysia, is less than half. thectually allowing currency to adjust for the changes in terms of trade and allow that to be a power for the economies in the region is something that should be seen as a positive. it is not necessarily a sign there is a huge crisis to come. angie: that is a great point, david mann. always a pleasure. chief asia economist of standard chartered. singapore moves closer to historic elections which the prime minister says are critical. we will have details and reaction when we return. ♪ angie: singapore has promised to tackle social issues ahead of the election that the prime minister says will be criti

gay people into its society. >> ho chi minh city is one of the largest metropolises in southeast asia and is at the heart of vietnam's economy. it beats the capital hanoi as the wealthiest city and is a magnet for workers all over the country. in the past five years alone, the population has increased by almost 800,000. the city has come a long way since the end of the vietnam war 40 years ago. we asked locals what they feel about the recent revision in the same-sex marriage law. [ speaking foreign language ] [ speaking foreign language ] >> located on the edge of ho chi minh's business and shopping district is a famous cafe and bar which is popular with the gay community. papa cafe first opened 16 years ago. at around 11:00 a.m., office workers from the area drop by. they come for the tasty and reasonably priced lunches. during the day, there are very few gay customers. it's also a favorite lunch time place for families from nearby residential areas. ♪ the cafe's owner nguyen used to be a regular customer and bought the store from the original owner. the cafe started offering lunch

"asia edge" is back in two. ♪ shery: welcome back. some shares at a low, so should we expect more defaults? owing back to the conference in kalgoorlie we are joined by a ceo. thank you so much for talking to us. you are an example of a rags to riches tale, having found one of the biggest nickel deposits. how does that excitement over that discovery change with this commodity slump? >> we have had plenty of excitement. we were a $5 million market cap company when we discovered this and there was the merger offer which is happening in a very short space of time so the situation is serious -- it is quite immune. shery: yes, you mentioned that merger offer with independent group. how is it going to change? >> well, this transaction means that independence group will merge with us, and we will essentially ceased to exist. the team that is developing the neck all mine will cross to independence and the team that was responsible for the discovery will move across to a new company called s2, which will be merged instantaneously and the busine

vietnam could lead the way as a gay friendly nation for the rest of southeast asia. police obtained anrrest warrant on wednesday for an unidentified suspect and released a sketch of the man. they say he took a motorcycle taxi from a

today. >> yes, i think the asia specific markets is reeling from what's happened on monday. of course, monday evening, where you are, but it's tuesday morning here, and the market is open within the last two hours. they have to say on everything that it's the chinese market, a globalizer is fluctuating. tes -- it's down 5-10%. what we are seeing is japan, tai yarn, south korea. they have a turn around. we are looking at their market increasing, getting back into the green by 1 foy 5%. tuesday, the market have only just opened. it's a wait and see and watch and see how it reacts. surrounding china. it's down sting, but not as bad as m it was on monday. plus what it's lost today. a lot of people in china are investing in stocks than in the past. what is the mood among the chinese. >> yes, we've been trying to gauge that mood. when we've been on the streets, many of the local people that invest are of the the middle classes. in some case, what they have done is sold property or sold assets to invest in the market, and in some places taking loans. the market has dropped, and the

policy towards asia and last year had the privilege of visiting multiple allies in east asia to highlight the importance of our partnership. the republican nominee must have a plan to correct u.s.-china relations. that is why i thank you for this opportunity to offer it before you. as president, my approach towards china will adhere to the principles of my foreign policy which i outlined at the beginning of this campaign. my goal will be to restore national security and the region interest. to protect our economic well-being and advanced because of freedom and human rights around the world. the first goal will be restoring american strength, to ensure that the united states remains a pacific power. while china has increased his defense spending by another 10% this year, the obama administration has cut defense spending by nearly $1 trillion over a decade. our navy is now smaller than any time since before world war i. our army is headed pre-world war ii levels. and our air force has the smallest and oldest combat force in its entire history. if elected, i will end defense sequestration an

we are getting some disappointing growth and asia. exports across asia have contracted, the only exception being in vietnam. they are experiencing a trade recession, in that environment it is not just dollar strength. it also suggest asian currencies need to weaken. rishaad: let's take a look at some of the winners, and losers. clearly the biggest loser has been the malaysian currency. it has been devaluing for a number of factors, including declining trade, and commodities falling, and political instability. do you see further weakness there? khoon: i do see further weakness. the fundamentals are not that bad, the problem is that the market is not paying attention to the fundamentals at all. the domestic political scandals have really taken over, and sentiment is so bad that foreign investors are having to lose some confidence. that is putting pressure on the ringgit. ofo due to the lack confidence in their own currency, they are starting to pull out as well. it comes off, the balance of flow, evenly so want an account surplus, there

angie: next, according asia. we find -- courting asia. why one nba championship has picked hong kong to launch a new energy drink. stay tuned for that. ♪ poor developments falling the most in six years as the number of victims rose again. kongs sank 14% in hong over worries the traffic through the devastated port they never cover quickly. the blast killed 114 people, many firefighters. tons of sodium cyanide were stored at the port. nothing new around reunion island after nothing new that could be found from the missing flight. malaysia says a wing part found on reunion last month is from the missing plane but investigators have not been so definite. andkorean businessman former presidential candidate says he wants the top job in world soccer. honorary vice president. he says what they need now is common sense. the current president will step down in february. miller was rookie of the year in 2001 and has won back-to-back championships with the miami heat but he is never satisfied and is building a career after basketball. his energy dr

fiftham is the eu's biggest trade partner in all of asia. in exports electronics, pharmaceuticals, and vietnamese coffee. this agreement has been reached in principle, but it's a requires more work to finalize. in late take effect 2017 or early 2018. yvonne: what about the wto than? sidestepping eu is the wto, opening trade on it's own. failedd about negotiations still deadlocked, and the transatlantic trade and investment partnership despite initial optimism it has yet to thelude, so they say national trading system is struggling. so the eu is making trade deals on it s own. you have to get cracking and be creative. yvonne: get cracking, indeed. thank you so much. let's check in on some of the stories, shares at mgm resorts rose the most since march. the casino operator revealed second-quarter earnings of $.19 a share. games in los vegas helped a slump. busy lands in hong kong and paris may not be the happiest places on earth after shortfalls of the themepark contributed to a miss on third quarter shares estimates. the company posted earnin

we should see more coordinator response in asia. china, a lot of people looking at china and pob see to be the -- pob see to be the leader. -- pobc. people are disappointed that pboc did not cut it. given the intensity all the stock market rout, a triple r is probably insufficient. i think morning's to be done in terms of easing measures and probably -- i think more needs to be done in terms of easing measures and probably opening up space. rishaad: policy responses out of that pboc. china and jetting 150 billion yuan, a reverse repo setting the reference rate higher against the dollar from yesterday close at 3.987. pererday's close at -- dollar. the pboc did not intervene late in the session yesterday, allowing the currency to weaken by 0.25%. did not intervene heavily in the last 30 minutes and that was influencing sentiments. this morning as we set the reference rate, there is an announcement there is going to be reverse repo of 150 billion yuan injection and the reference rate slightly stronger against the dollar. rishaad: getti

>> everyone was down a lot in asia. since friday, when the route began, they have lost billions of dollars. jonathan: a huge reversal in fortune. is it just the equity market at play? >> the equity market. it has seasoned everything. privately held companies as well. valued.mpanies are what happens in the public market will impact these as well. jonathan: let's talk about some other billionaires. donald trump. has his closely held and nothing is publicly held. you would not people to look at it closely on a day-to-day basis. you could say his real estate properties have possibly lost some value because it is a scared market right now. still to come, we talk mega m&a. -- haso is making increased its offer for syngenta. turnaround tuesday for european equity. no such thing in asia. japan down by 4%. the shanghai composite was hammered for the fourth straight day. we are back after this short break. ♪ jonathan: good morning. this is bloomberg tv. we are 43 minutes after the hour. european equities are bouncing back this

but you see most of the hub, the contagion is actually in asia and southeast asia. because these are the countries building the block with china over the last few years. and also japan, and the western part of the world, people are thinking about the u.s. and germany. because now the countries have the biggest links with china when you look at trade and demand and imports. not to forget that some countries are extremely linked to commodities and oil to financing. and african countries, countries like angora using that as currency. and countries like iran that have been actually trading oil in china for the past six years. it's actually not looking good when it looks to be a florida ke placebo contagion effect. it must actually be acted on. >> thank you so much for that. >>> a series of steps being taken by the people's bank of china, but when do those steps actually go into the real economy? are they actually running out of options here? just last week when you were on vacation, wilf -- >> doing research in spain. >> -- yeah, $30 billion of liquidity into the market

clearly to people who follow asia, they know right now it is the for asia. certainly has a lot of ramifications including national security interests in northeast asia. the event of a follow-on to a number of things the foundation has done. july we have the three ambassador dialogue with ambassadors from the republic of korea, japan as well as deputy assistant secretary sans kid and we thought that was a great success. following that, jim demint the heritage foundation president and i had an op-ed on south korean japanese relations so i see this at the end of the dot on an important issue. so we are very pleased we have a team of panelists today to discuss this important issue and will be focusing on prime minister abe statement as follows. reaction and to see if there is a strong possibility moving forward. i think a sign of the high caliber of our panelists as all of them could do this entire event in japanese. but because i am the weak link on the team they are kind to me and do this in english. so if you've ever had a panel that needs no introduction, th

mostly negative in asia today. the asx 200 is down. asia-pacific's cio. raymond, thank you for coming in. we have the pmi data out of china not looking great and the us stocks. before it happened, we had you a you say you were optimistic about chinese shares. how do you feel about them now? -- we had you and you said you were optimistic about chinese shares. raymond: we seeing the market will trade in the red because there will be support measures. at the upper end, more selling. if you look at the whole overall shares andt, china h they look attractive in terms of valuation per shery: we have been talking about those shares for so long and we are not that story materialized. raymond chan: people to come back to china. you need to see china's economy is stabilizing right now it is not. .he pmi is falling we need to see it to stabilize. and more measures from the government. interest rate cuts so we need to see more favorable deals. having said all of this, hong kong stock is -- [indiscernible] the corporate government and china stocks and for people who w

copper actually gained in asia. that being said though, the other side of this is that we are coming off -- and i think this happened over the last hour or so -- we are certainly coming off a high of the day. we are of as much as 2%. japan a big reason for that, as you can see here. that is what we have done so far on thursday, we are only up about 7/10 of 1%. this index was up as much as 3%. it is as if investors are saying that is it for now. seeing some we are of the futures, as well. just getting back some of those. the big market story is the shanghai composite area for the first time in six days, we are actually in the green. it did not did below where it started at trading. we're just getting underway for the afternoon. we were above 3000 one point earlier on. and we quickly came down. warning before the markets open, we heard from a trader they were again injecting $23 billion -- $123 billion. what analysts are saying, they have to keep doing that, simply because they are ascending. they are buying up a lot

angie: that was today's word from asia. rishaad: malaysia's prime minister is facing increasing pressure to step down after two days of street protests in kuala lumpur. what is it like today? how is the mood? today, it is more quiet, people are now celebrating independence day. it is actually quite significant that the rallies did not spell over into today, a very important and proud day for malaysians. but the protests over the weekend were some of the largest the country has ever seen. so if anything, the rallies did send a clear message to the prime minister. -- one protester told me he only wanted to send a clear signal to the government. the protested not draw a large number of ethnic malays who are the core base for the prime minister. the rallies were dominated by at the chinese. there is not enough ammunition for the opposition to claim that ms. is already -- that's the isority malays population against the prime minister. so we are not seeing a significant shift on the ground. but it is worth mentioning that we are

in asia, service or are reaching an 11 month high there. goodness, but not enough to boost the shanghai composite which fell 1.6% but did lose the rest of asia. and your things are looking bright in midday trading with green arrows across the board, biggest gain in the dax in germany. u.s. stock market futures build on earlier gains taking a cue from the optimism in europe and asia. dow futures up 21 points. if the work for disney earnings we would maybe be higher. oil at 4593 a barrel. gold to the downed by this morning moving closer to $1000. the yankees dropped the red sox 13 to three. brian mccann had a big mac driven in four runs with an rbi in the sixth evening on trade in maine and this in the seventh. >> haricots. it's in the second deck. a three run homerun. sandra: what a night. a three-run homer in what was a nine run second inning barrage. the mets get to hold onto first place in the national league used for yet another day. eric campbell with the tie-breaking run as new york work things out then. the four-run eighth inning agai

nicole: asia traders picked off right in that rally mode. u.s. stock index futures pointing to more game this morning. right now w u.s. stock index futures pointing to more game this morning. right now we are off the earlier hike up 194 points on the dow futures. tracking tropical storm erika with the first hurricane to hit the southern coast of florida. we will have the latest on that storm. you are watching "fbn:am." boring then i tried our best to give it a first look at morning markets and breaking news. we are here for you. lauren: for your day ahead. ♪ is a lauren: welcome back. asian markets followed the u.s. rallied yesterday with the rally of their own. shanghai up 5.3%. the hong kong and accept 3.6%. gains across the board in a shed. nicole: starting out with green this morning. right now the subset of the cac and dax all out there is up about 3%. positive territory for the week. lauren: yesterday's huge surge on wall street continues this morning topping 196 points. the nasdaq up 60. nicole: turn into a very tough story, horrific sto

it is the first nation to start trading on tuesday and stocks in asia and the asia-pacific stem the bleeding following the national selloff. ♪ >> if this volatility continues, which it will, the fed will be -- will not want to fuel further volatility. in such circumstances, it will most likely wait and not initiate the interest rate cycle in september. he is the bloomberg view columnist. the bloombergo market day, this special edition. we will take a closer look at the european market close. >> it has been a bad day for european stocks. the worst day since 2008. it is about those concerns over growth in china. that selloff in asian equity spilling over into europe. you can see the stoxx 600 down more than 5% at the close. every stock declined today except for three. if we look at the industry groups on the benchmark as well, all of them declining and it has been oil and gas stocks actually leading that drop. in a surprise given the rout commodities and the fact that brent crude dropped below $45 per barrel today for the first time since 2009. let me show you what has been happening across

the concern to spilling over from asia. let's get out to asia to see how the markets continued to deteriorate. you have bear markets across the board. great day at all in asia. this picture of red right across the region. new zealand had an ok day, australia being sold off in line with what we saw in the u.s.. on the nikkei, the index close below the 20,000 point level only one stock closed higher today. without the costly index effected by all that we've seen in emerging markets. the custom index closing at its lowest levels in two years. we are still seeing a little bit of growth for hong kong and china in the hang seng index looking that it could close in bear market territory as well, however. it has been lower than where it is at the moment down 1.8% in the late trade. anytime it gets close to that 3500 level we see some pickup and intervention. indexerall asia-pacific at its lowest level since february 2014. caroline: a dismal day to the end of trade, the worst week for stocks and nine months. it brings us to our twit

obviously that has spilled other into near asia. my question to you is the route done or do you fear that we're at a moment of reprieve? hans: what you have to think about is what has been the course for the currency decline. you look into an environment where you have high debt levels, corporate debt levels. the capacity -- the result $48% of g.d.p. in some countries have been -- for investment purposes. when you have overinvested your returns, so the question is where is the return of investment? if the return of investment is negative then actually you can cut interest rates as much as you want. you only reduce the pace of deleveraging but you are not getting a pick-up in investment. it is about where is the return of investment in these countries? the monetary e, response in the vetion going to come. i was talking about the people's bank of china, the reserve requirement cut. you have to think about in a more broader context in asia, they have to ease monetarily. that actually means that the interest rate ditch rbles are going t

"asia edge" is next. shery is with me as we recap the john: with all due respect to donald trump, two can play at that game. ♪ john: i like this bird. a good-looking bird. happy national lemonade day, sports fans. first, trump. last night the kingpin of disruption upstaged jeb bush in new hampshire, hosting a town hall meeting 20 miles away. trump treated the dual like a

bruce: clearly, two people that follow asia, they know that right now it is an issue that has a lot of ramifications, including four u.s. national security interests. follow-onis really a to a number of things the heritage foundation has done. in july, we had a three-ambassador dialogue. we thought that was a great success. , the heritage foundation president and i had a op-ed on south korean-japanese relations. i see this as the end of a trifecta on an important issue. we are pleased to have the a-team of panelists focusing on prime minister abe's statements and the south korean reaction. to see if there is a strong possibility of moving forward. i think a sign of high caliber of our panelists is not all of them could do this event in japanese. link onuse i am a weak the team, they are being kind to me and doing this in english. so we have -- if you ever have a panel that needs no introduction, this is it. sheila smith, senior fellow for japan studies at the council of relation and author of "intimate arrivals." as well as "japan's new politics." we have michael green, senior vice pre

this is asia edge. stay with us. ♪ >> japanese games producers are the best in the world making money from free apps. how are they generating profits? >> it can be mystifying for people not familiar with it as to how these companies make money on something that is available for free. live operations is pretty much the cutting edge of monetization techniques used by these publishers. it is a mix of psychology, big data, and art which the companies employ teams of game veterans as well as analysts to continuously churn out content in the form of limited time event. if you are a player of final fantasy record keeper, at any given time, the game will make available new quests and adventures offering rewards like armor, weapons, and new skills. sometimes they are available for just 20 or hours. they carefully tweaked rewards and difficulty of the request to make sure the game has come back. >> it sounds like an online retail strategy to me. >> one of the games we highlight in the tory is dna. their origins

that is essentially what you are seeing in asia. big gains coming through from the gas stocks in the oil, on the fact that we do see crude rebound. as you mentioned, they are both contracts. i also want to look at the yuan, as you mentioned, it has strengthened. it is up by 2.1% against the u.s. dollar. and it is on track for its biggest gain since april. next week, we have that military parade in china. a lot of analysts saying that the central bank really does not want anything to rain on the parade. that is why we have seen this intervention and currency markets also, efforts to try to stem the equity rout. a big comeback in emerging markets. joining in that buying that we are seeing across asia. airline question mark caroline: china stepping in. not wanting to rain on their parade. that brings us to our twitter question of the day. china, propping up the stocks , is this a good or bad thing? the move to a more open market, the more freedom, the devaluation that the yuan stated. but because of the sensational move that we see sud

so much of asia especially east asia has its phenomenal demographic dividend for about three decades. it is now entering very rapidly the demographic deficit right now over the next few years in two decades. reason number two which i'll go into detail in the 60 seconds, the china stronger china accounts for 45% of asia's gdp, and its growth in china is growing, is slowing much more than you think it is. reason number three, something no one is talking about, especially outside of china, since 2008 much of asia especially east asia sort of sailed throug to this economic . why? credit growth, debt. there's been an enormous, i'm not talking just about china and even outside of china, there's an enormous increase in credit growth. no one has we talked about all throughout asia effective look at total debt household, corporate, government debt as a share of asia gdp, unbelievably it's higher now than it was before these financial crises in 1997. so much of asia especially east asia has manufactured a growth the past six, seven years build on a surge in liquidity and debt. a huge story. let

the tuesday edition of "asia edge" is coming up. theill head over live to diggers and dealers event taking place. ♪ >> with all due respect to people who think countdown clocks are gimmicks, we've got your gimmicks right here. ♪ mark: a staged event, and hillary's mom in center stage. first, the spotlight. shining on vice president joe biden who was the subject of column over the weekend. white house spokesman josh earnest got peppered at his daily briefing today about a potential biden presidential run. but ernest squirmed away like a delaware salmon. i actually have no idea what seafood they eat in delaware. an advisor to beau biden son is

kospi became one of the best performing markets in asia. back to you. >> wow, tracy, thank you so much. lauren. >> it has been such a week. the markets are actually up this week after the dow industrials plunged on monday, plunged again on tuesday, erased losses with rallies both on wednesday and yesterday. joining us now, on the phone with a closer look where we've been and where we are going, look into your crystal bad, a market analyst at ig group in london. hi, chris. >> good morning. >> this momentum has stalled this friday morning here in europe and u.s. why do you think that is? >> i think we've seen three strong gains of in so many indices. the is friday, the news flow is thin on the ground. new month gets underway next week. all these are coming together as traders sitting on their hands rest of the day to see what next week starts to bring. >> talk about what we're seeing in commodities too. how much do you think commodities plays a role. oil had the huge jump, 10%. come on, you know oil is so volatile. you think that helps lead t

those exposed to asia, they are feeling the selloff. some of those who sell into asia. and look at the commodities. no wonder miners and oil companies are falling. $45 for thebelow first time since 2009. copper is selling golf. china, the second largest economy in the world, you see the selloff with the mining companies. copper is currently lower. if you're looking at fx, all about the recalibration of one people think the federal reserve will raise rates. it has been pushed back. if you look at the federal reserve futures, people think we were not see it in september. 28% think we will. they used to be a majority and now pushing it back to december. the dollar is falling. that means it you are seeing the euro on the rise and the dollar falling and the yen and demand. a look at some of the bond market moves. a search forg for safety. money moving into germany. 2% thely, the u.s., first time since april. meanwhile, the story in greece and the snap election being called. back to you guys. francine: thank you with the latest on this market route. a big funk. manus: we saw

let's check in on markets in asia this morning. to new zealand first where we are waiting for the commodity price numbers. we are seeing a trending down 90 after some momentum for new zealand stocks. the new zealand dollar spot at .6568. we are counting down to the openings of japan, south korea and australia. we are also waiting for data on japan's monetary base. it closed down 2/10 of a percent and now the futures pointing to a lower open. we are waiting a head for the policy statement later in the week and the dollar/yen trading at 123.98. the big news these days of course is the commodities round. mining companies and oil producers have tumbled worldwide on commodity prices. big funds heading for the exit and we are looking for prices last seen years ago. david is here with the details. the plunge continues. david: if you bought shares yesterday, you probably want to look away right now. let's start things off with base in industrial metals. we had the data coming out of china yesterday. low andcopper, six-year i believe you wi

that required defeating the soviets to win control over northeast asia. presidency,g the truman initiated an exhaustive review of the agreement fdr had made. the review to place in the context of rapidly deteriorating relations with moscow as soviet forces surge toward berlin, prod, and the enough. fdr committed the united dates with the establishment of friendly government around the border of the soviet union. according to the 1939 map, that meant only poland and romania. it is part of the general strategy to crush and occupied germany, he also agreed to shift shift: --s some -- to borders. this had the consequence of not only assuring the soviet domination of poland and romania for soviete door penetration into central europe. 1945, theing of pro-soviet czech president was convinced to transfer the eastern tip of czechoslovakia, some times called eastern riviera to the soviet union. the annexation of that small piece of turf gave the soviets a direct border on hungary for the first time and a strong position in central europe extending all the way to t

especially those in asia? the u.s. economy is and themixed signals only debate is time, it is likely to remain much of the same that we are seeing. likely to remain relatively strong. months, it has been an emerging market story. global markets will stay volatile. we have seen that more recently with equities particularly. again, the epicenter is in the of the world,rts emerging markets at the moment. angie: that is something we are watching closely with china devaluing the yuan, which some suspected was ahead of the rate hike. that china wanted to take some independence back and of the move. the currency alignment causes ripple effects. what do you think the move will be from china? >> it is a 3% currency move, not a realignment. to help exports, you are talking about currency moves of 15% or 20%. all the currency move has done is worse in the imbalance in the market. you have revealed the currency can go down, there is a case for it to depreciate. people thought it would stay stable or appreciate. that is what they n

the rest of asia is important as well. almost 40% of their sales in the previous year but no real lipservice to what is going on in china. of course the stock market route that was hitting the market throughout july, nothing. get a challenging and volatile macroeconomic environment. not much in terms of transparency. doesn't give you much of their insight as to what is happening in china. let's look what the issues are. crackdown and extravagant spending. the focus is on the middle class. maybe that is what is inciting optimism for the future. that is what we are being told the moment because they will focus on the middle-class. perhaps not so high-end anymore. jon: the slowdown in the growth economy is slowing exports in the eurozone although there are recent concerns. the greatest hit to growth may have come already. let's bring in david, which emergent market economy created the biggest threat to the euro's economy? >> currently the biggest hit has slowdown russia. the in growth has been so precipitous that despite the