shaping the next generation of leaders. content control of censorship. web searches and great expectations. wine cellars are charming. trying to create more full-bodied sales. asia. let's go to wall street also points that is right will stop we continue the longest streak in weekly gains since 2012. remarkable performance of wall street gives a lift to investors today. the stocks are rising. we saw the dow jones industrial closing at 17,000. the first time ever. the s&p 500 is at record highs. today, the exception is

shanghai. it continue. quite active today. some of theina and property developers that we want to watch. corporations down 1.1%. we are seeing china moving the margin. of gains. a modest one, at that. we are watching the composite. about .3%. we see precious metals and a demand for debates. currencies have been active today. particularly emerging currencies. we are seeing a move rising the most in seven months. watch currency in southeast asia. them on the same page

when it comes to talks on the denuclearization of the peninsula. are talkingarts about a revival of the talks with north korea. let's continue from beijing. give us the idea of what they are talking about. >> they want to get the talks. they did not have a lot of progress prior to 2008 and they want to get it back to the table. korea, china,outh and the u.s.. there are a lot of political differences that have come. easy andmic stuff is they will have a greater direct exchange. they are going to complete a free-trade agreement this year. the issue is the sea boundary.

they have table that for next year. northg issue is getting korea back to the table and getting all the parties to talk. >> it seems like they are all added. we have merkel this week. you will be there. what is she there to tap into? >> obviously, more investment. that is what it would be in china. this is the seventh visit as chancellor to china. she took over in 2005. seven visits. she will be down. she will be with the volkswagen chairman. she is bringing a list of german enterprise. airbus, love todd's a -- louis vuitton's a -- l ufthansa. heinrich.e head and

a factory opening up later on this year. auto parts and there was an interesting stat. installede elevators a going into china. not surprising. there is a lot of investment opportunity. >> thank you very much. >> you bet. 's corruptionent crackdown may be about killing two birds with one stone and maybe more birds than that. it may be doing more than consolidating power. the china correspondent joins us for a closer look. welcome. what have we seen from the initiative in the campaign? >> as you know, he launched a

campaign after- becoming the chief in november of 2012. so far, there are more than 40 officials. they are called tigers and there are more than 400 captured. you are right that there are several drivers behind the initiative. one that is mentioned is the upcoming party and the consolidation. position to be in a send his supporters and allies to the bureau. that is a powerful part. congressit in the next and three-year cost time in 2017. >> this was a committee.

>> downsized to seven members. >> one of the most powerful. >> the second most powerful. agency hasof that pretty much been settled after the previous congress. showill has opportunity to membersup that has 25 that haveant matters to be discussed and approved. it is powerful and he has power to do that. >> is this worthy objectives of the campaign, as you said? there are many tigers. >> it may not be the only objective. i would say that he would not have launched a campaign if it

will not enhance his power. that is a major one. >> how else can he consolidate power here. -- here? what is the message he is trying to send? >> trying to show determination to clean up the system to the there is a huge amount of popular resentment of corruption. he is trying to show that they have the ability to do so and create deterrence. he is going to win a lot of allegiance from his supporters. >> all right. thank you for that insight. but seven look at some of the other stories making headlines.

beijing is blocked and he has not been able to access the company. they say the crackdown may be connected to the protests this week. a digital privacy group has filed a complaint against facebook. information center is asking regulators to investigate psychological it. experiments -- psychological experiments. >> the move may be a blow. we talked about the sales from qualcomm. >> shares of htc are having the best day in about a month because of something that has become quite rare. what is it?

is that. this is operating losses. it was not in the black. that they are in the black. here isw, what is key looking at the core business and operating profits. that was back in the black. -- two point -- $2.81 billion. they have mentioned that they want to cut down on the cost on marketing. downll, the expenses gone and they did not release any

figures on that. you do the math and it did hit the target. the revenue side had a good month in april. they released the cell phone and it did well. those things helped. it was not expected. it was expected. they were expected to be closer. one-off.ion is a >> is it a one-off deutsche mark is it a turnaround? -- is it a one-off? is it a turnaround? >> you look at the sales and they were 61 billion. they are on their way down. they are at the lower end of the forecast and you see what analysts are saying. they are saying it was the best. the net income and sales will continue to fall throughout the

course of the year. if you do not have them, do not. they are planning on coming up with a device and a tablet later on in the year. we will see if that helps. they are having a difficult time keeping market shares. >> and rivals are coming up with devices later this year and it will be competitive. later, firing up the grove. why the fourth could see americans with a mighty needy bill. >> a big boost. it is coming up next.

andhe advance in the u.s. right here. lebanon is on the conference board. the economy has turned a corner. >> a fantastic number and a good report. the growth rate and unemployment is high. unemployment is in decline. a 1.4 decline in the past months. what is not to cheer about? the job numbers are one thing. it will be interesting to know whether they will go up. we will be looking out for is on july. we get a compensation index and last quarter, that came out at

1.8%. pickup,e get a nice that should be interesting. and haseen washing up not been followed by wages will stop you will look at that --. -- wages. we will look at that. yeah, there are causes for concern. we are seeing a good read across the globe. we will talk in the coming months. momentum.ositive the markets will be higher. they could get carried away at this point. private wealth advisory. norman. this a bolstering of

optimism? should we be concerned? >> we must be optimistic. we have seen momentum. we said the u.s. would approach full-scale recovery in the year or next year. it is strong. the recovery is gaining momentum. corporate are sitting on cash. what will they do with it? paying high wages? tothey could return cash shareholders and now, they are hiring. it will pick up. it is waiting to happen. it has not. i look at the numbers and there is a chance that it happens. >> it all depends on the

consumer. at housing and the recovery. we are seeing it flat line. >> looking at the market, it has been affected by a few months ago and has recovered. growo not expect them to 10% and there is a chance to be higher every year or two. >> one in five americans are underwater and they owe more with their mortgages. the housing has improved a lot. there was a legacy problem. and jobhas done well

security and pay rise. >> a big if. >> yes. looking at the number and the jobs, although the unemployment is a focus of that and will make sure that they do not raise too early, the job market is doing well. >> again, house prices. andlook at the house prices the economic model for britain. less so for the united states. it was meant to be fundamental. we have in -- revived american manufacturing. >> yes. a little bit. strong at the moment. it has been about 60 or 55. going back to real estate

questions, it has more balance than london or hong kong. in russia or china, it has further room to grow. >> are right. we are going to leave it there for now. we will get it back. >> let's take a break. warning from the outgoing president. >> deciding a replacement. we will be live with details.

>> less than a week i'd sell the election. the leader has issued a warning. let's go right now to bloomberg. what is the warning? >> two presidential candidates. up as thee is election grows near. he issued orders to the authorities to take precaution --sures before and after of

the election. here is more. >> i heard reactions from various local and foreign parties who worry about the presidential contest because of power. it could lead to a dispute. one of them defeated. they ordered police and the military to stay on high alert and responding. national security related to the election. security personnel is expected to be deployed. they have. sure that theg vote is free. review, it is rising on the campaign trail.

they are protesting outside. the support and the office was infuriated by the statement. it links the party to a communist group. that they announced new policies to encourage foreign investors to buy property. the campaign has been seen as disorganized and he lost a wide lead in the polls. he has gained significantly and is 4% behind. back to you. >> a true race is happening. next week, we will know the results. do not miss the live coverage next week. including, a special show with our correspondent on thursday.

>> we will have a look at headlines from around the world. palestinians and israeli security forces clash over the death of an air of boy who was killed by extremist. israel says that they unequivocally condemn the killing of the palestinian boy. >> we do not know the motives or the identities of the perpetrators will stop we will. -- perpetrators. we will. we will bring the people to justice, whoever they may be. , riot incitement, , they have no place in our democracy. military has deployed

forces to the southern border. they say they are aimed at pulling off the mortar fire from the palestinian terror tory. they say the militants have launched 130 rockets in recent weeks and the air force responded. hamas-controlled part of gaza. >> and offensive to retake the north. militants have been involved in skirmishes. that is one of two major urban centers. it has been swept across the north and west.

>> moving on. boosted by jobs. surprise in the u.s.. going beyond. how they are trying to on court thepotential -- uncork potential of millions. of teams battling it out for the final war. -- four.

let's get things started. america is ready to start independence day. record gains there. here is the latest. >> that is right. a good time. what iske a look at happening. there is optimism from the stock rally through the markets here, as well. dow above 17,000, the first time that happened. and moves for indices european stocks do well. today,a look at markets we have a little bit of pressure continuing. .3%. going in the opposite direction in hong kong. underperformance to peers in the region. singapore. gains. let's take a look at the jakarta movers.

you have some of the big property shares in focus today. following property shares and stock moving. look at the shares. we are seeing declines in the markets today. this is a move from the australian dollar. >> that move is very interesting there. at the moverslook in japan and australia? >> take a look. 6% higher. what you want to watch are banks focusing. a couple to take note of. and takeover

approaches. we are following that and the commonwealth. open to compensation claims. and, quickly checking in on japanese markets, this is what we are seeing. a list of exporters today. it looks like utilities are following -- falling. the best performers right now are intact. there are technology equipment makers. it will come back from a lunch break there. the old standard. >> thank you. results --sort

search results. the european union ruled that certain type of data must be deleted. what is going on here, exactly? .e have robert 2007, i believe. >> that's right. towrote in 2007 and referred the ceo of merrill lynch. bbc thatformed the some search links to this article were removed. it was not mentioned and they did not tell the bbc who requested it. >> who could it be? that is the big question. >> they are not revealing that kind of information. privacy or freedom of information that is more

important? >> it is hard to know some time. >> it is a quagmire. which one is it? a report aboutis a soccer referee called mcdonald who lied about a penalty he gained. removed. >> i will look for him. >> driving someone. >> couldn't it peaks your interest? are millions of searches -- tens of thousands of searches out there that you may not know about. you would never go looking for it. case, the original entry is there and the bbc has it on the website of stop the biggest search engine no longer has links to it. oryou search other words

other combinations of words, it may come up. this is a gray area and the details surrounding the ruling have yet to be found out. it was supposed to protect privacy. under circumstance conditions, they removed links and the information is inadequate or no longer relevant. seeing an embarrassing picture, maybe you can ask. >> how many requests have they had? >> more than 70,000. more than 70,000. some people have been quite busy. they look at what is on the internet about them. google headache for because of compliance issues and it is a new law that they have to wade through mountains, literally, of links. they do not have any cases to go

by. they are making this up as they go along. it may not just be google. of the data. it may not just be google. >> he retired back in 2010. an interesting story. >> know all about him now. in other corporate headlines today, a management rejigging in china. it will leave the integration of energy. they are acquiring a gas and turbine unit. will be rachel, the head of the company in the region. nearing a deal. rival.at out a japanese

it may be announced soon. the acquisition spree made by assets in southeast asia for $10 billion. he is not elaborating here. a billiony has spent dollars in takeovers. isindependence day weekend where most of america kicks back and celebrates. bill that will be the most expensive on record and we are here with this issue. is expensive. we have ground beef and tomatoes. these are increases in prices. with other together

things. you have other staples here. what you get is the barbecue index. what you tells you is that we are basically double the price from 1996 up until where we are today. food prices. let's bring it back to asia. even if inflation is benign. the reality is that any small causes problems, especially lower income countries. take the philippines. garlic, that is a staple in local cuisine. have become much more expensive beef onhicken, pork or a per kilo basis. president has weighed in on the issue and he is saying that they're watching prices and they will be strictly implementing suggested retail prices. go to india. because it is onions in india.

from 2005 2 today, the prices of onions have gone up 183%. what they have done to make sure that there is enough onion, authorities have made onions more expensive to export. this is where we are as far as minimum price is concerned. whatever the headlines may say, food just seems to always be getting more expensive. yes, everyone in the u.s. and theamerican friends around world enjoy the july 4 celebration. it is time to celebrate. let's not forget to count and be thankful for your blessings. back to you. come, lots more delicious things on the menu. private wealth advisor will tell us what he sees china outperforming in the second half. this is "asia edge." ♪

>> you are with "asia edge." th us.norman chan wi three banks yesterday that looked at what is going on in the equity markets when it comes to chinese stocks. the torrid time they have had a bit of late. thinking there was going to be a recovery in the second half of this year. >> in the china stocks we have been positive for a long time. the first half, they have done nothing. just like the world cup, sometimes the second half is better than the first half. there has been more stimulus and it started to work. you've seen preliminary success in the numbers. now there are more people becoming confident that china will be able to stock land. the short-term money is to bet on the second half. >> we have got boots on the

ground in our man in beijing. >> in the second half, what are the biggest risks? because there are trust funds that have quadrupled over the last four years. there are a lot of interest payments due. if they are not going to be rolled over, who will be stuck with those liabilities, the municipal government or the banks? is there going to be a contagion. a shock from this? >> i think the approach by the mainland chinese government is going to reduce it slowly. i think so far the government has -- noticed the problem is substantial but it is manageable. if they can try to support that and also defuse the problems gradually, i think they will be able to do it. >> do you allow default? >> i think default will happen. but they are going to try to manufacture a gradual and orderly default. risk is going to be realized.

the market will see some volatility, but i think the approach is still trying to make a stable -- it stable as possible. >> who is going to be the poster child? >> some of the major banks. and the government is going to send a signal that the trust funds are not -- >> is going to be one of the major banks. >> i think so. >> shake up the markets and trust amongst the chinese people a little bit. >> for a long time, the government does not want to make it a risk. that has been the case because of misconceptions. the concept has to be changed. >> a lot of these trust funds had guarantees. i was there. i was doing research back then. you speak to a lot of these private bankers and what they say is that here's your return, 14% a year.

>> compared to the bank deposits below inflation. >> that is the problem of mis- selling. it happens anywhere in the world. china, the financial market is less developed. kong, london, new york. we should not see surprised to see that happen in china. china has been lucky to have it early. i think they will handle it nicely now. of course, like i said before, the problem is substantial but to the chinese government with it isfinancial strength, manageable. >> is the property market slump a possible trigger, given the liabilities in that sector? >> first of all, certain property players who have been aggressive would be affected. before that, we have to acknowledge the fact that many developers have been lucky in the past two years to have their good business and also to have very good chances to refinance the debt.

of them, especially the big ones, have long-term debt. financialntime, the liquidity problem is not going to be substantial. yes, the problem is going to correct. it has started already. the market will correct 20% in different cities. but that is manageable. the want to take opportunity to ask you this. we talk about the slowdown in china. when you're in beijing and doing travels around the country, do you see tangible signs of it? do you see it being worse than indicators suggest? >> i think there is a confidence in china, but there is concern. i bring up property because that is where a lot of people put their money or have the avenue to put their money. nobody trusts the stock market anymore. and there have been a lot of whispers about the wealthy in china or beijing have decided now is a good time for to get out. we are getting a few calls to

our plays about selling or buying, but the activity has dipped. >> but there is no sense of being forlorn and the economy has not done well. >> they have not had a crisis in the last 30 years. you have optimism until -- >> aren't people worried about it? is there something in the air that people are nervous about where to put -- >> beijing is a naturally nervous and paranoid to start with. everybody is pretty much worried about their next paycheck and their next job. their next car. i think there is a natural inclination to be worried and pessimistic, but i have not seen it translating into a potential crash. >> well, what is interesting is alibaba is very much part of this burgeoning online cyber financial -- somewhat colored shadow banking. call itsome would

shadow banking. it is facing oversight from the government. is this the next danger, or could this actually be the answer to shaking out the concerns about shadow banking? >> i think the whole financial market is in the early stage. the market is going to change a lot. alibaba and other internet giants are going to try to participate. but the government paused them at a beginning stage. they know that they should regulate them and they should make sure they have proper regulations, i think in the long run that will help the internet giants to perform even better in the financial area. there is a good chance they will have a reasonable market share in the financial markets. that would also help them grow further. they are now saying, slow down. similare -- the

regulations of other banks and financial companies. >> i think they do not take deposits. that me switch to this through train between the shanghai exchange and the hong kong exchange. are we looking at more money flowing backwards from hong kong into the mainland chinese exchanges? >> it is both ways. in foreignhina -- funds -- investors would be able to access the chinese stock market for the first time through the hong kong exchange. in the long run, that will be a huge change. so the chinese chuck stock market is unofficially opening up. and maybe even semi-officially. i think that is going to benefit hong kong as the financial center, especially if they can hold onto that monopoly for as long as they can. if six months later, singapore and london and new york joins, then the benefit will be lower.

i expect it will be able to benefit the shanghai stock market. by attracting foreign investment funds. moreke the market efficient and rational. >>. definitely >> a little bit more professional investors? >> yes. investors in china are very momentum-based. >> the mentality. >> we are more and more -- foreign investors going into the stock market. the stock market will adapt to foreign investments. once they have the right incentive, the chinese company can change quickly. >> ok, thank you very much for joining us. right. we have got loads more on the way. including a small matter of a small sporting contest. far away. >> a little thing called the world cup. going head-to-head. france and germany prepares to battle it out for a place in the semi finals.

>> a look ahead to the weekend's in brazil. in looking at that certain little world london hosting the tennis tournament as well. ♪

fo latin american teamsur, four europeans battle it out later today. >> do they? right. we have got france fighting it out with germany and columbia taking on the host. result looking to win it six times now. >> john joining us with a preview. brazil is going to take it, right? one latin american team will go through, brazil or colombia or france or germany. that is tonight. tomorrow we have holland against costa rica. argentina against belgium. >> costa rica has been the surprise package. the fairytale.

costa rica is the only country in the world that does not have an armed forces. >> brazil, of course, you are watching -- colomba have been playing welli. but for me it is france and germany. germany has a problem. the flu has hit the team. seven players are down with flu symptoms in the last 24 hours. one could be the striker. that is a bit of a setback for germany. >> are they allowed to take some medicine? >> they have a whole medical team on it. >> the best doctors around. london.ve to sw19 in >> o, canada! >> must be very pleased about this. >> do you want to know why she bouchard.eugenie >> her parents have named her

after princess beatrice and eugenie. >> who are the brothers called, take a guess. >> harry. >> it is the first canadian to ever be in a grand slam final. you might see the second if raonic beats roger federer. there can be two canadians, the first two ever in the grand slam finals. >> it is shaping up to be a novak versus roger final. >> dmitrov is fantastic. aces., 147 phenomenal serve. dmitrov. share up over' -- sharapova's boyfriend. a fantastic coach. okovic is the favorite to win this. >> all of the top seeds knocked

out in the early rounds. >> nadal, andy murray. 18th grander his slam. i hope he wins. he is the father of four now. he is above 30. the young ones coming through. >> a changing of the guard. >> kourious, 19. raonic is 23 years old. it is a bit of the changing of the guard. a lot of experience. roger fed, i mentioned before, 18th grand slam if he wins and eight wimbledon title. >> sports like in business, if you think you can you can. >> it could be canadian doubles. >> could be. that would please you. >> certainly. thanks, john. >> wimbledon taking place. and we have got the world cup on

the road to the quarterfinals. of course, we have the results of that coming up on monday. i'm sure you know about them before that. that is it for us. >> >> the following is a paid

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