apple has some reassurances. we will look at the claims and the denials. cleaner and greener, foxconn launches an environmentally friendly land in china and we have a special report. germany celebrates a fourth world cup with victory, beating argentina. all of that and more on this monday edition of "asia edge." >> stocks are advancing across the region. different story this week as investors look ahead to key economic data from china and the bank of japan monetary policy tomorrow. a nice advance in hong kong and shanghai. carmakers doing well today. in australia, keep your eye on commodity-related shares. we see a four-month high.

oil is holding declines despite disruptions in the middle east. agricultural commodities, corn in particular, quite active. thailand begins its trading day. the straits times declining on the back of those economic numbers. jakarta and manila among those markets also posting declines. >> david jones, shareholders supportedhelmingly the bid. >> they needed 75% to get it through. 89%.e eight -- in the end, there were a lot of abstentions, but that did not really matter.

generouswas a pretty one4 $5 billion -- generous , $2.45 million. trading has halted at $3.93. the questions during the meeting were mostly lighthearted. it was a lighthearted and good-natured meeting. a number of people wanted to ensure that the david jones name was retained. -year history here in australia. received a round of applause when asking if the in-house pianists would be retained. the press conference was so short we can bring you all 13 seconds of it. shareholdert of our vote demonstrates the overwhelming support amongst our

shareholder for the woolworth's four dollars cash offer this year. >> that was it, no further questions were taken. why heparticular reason had the shortest ever press conference? >> the matter is not over yet. it will now go before the courts. the commission has taken an interest in this deal, specifically one aspect of it. lew was offered a sweetener, $70 per share to buy out his 12% stake in country road, a clothing retailer, contingent on the david jones deal going ahead. they are worried that could be a multimillion dollar inducement

to solomon lew and possibly in breach of equality of opportunity principles. so there will be a court case on thursday. promised he would have more to say after that. a surprise contraction for singapore's economy last quarter. manufacturing slumped, hurt by a tighter labor market. few saw this coming. >> you bet. it is probably the worst case onnario, a contraction expectations of a 2.4% expansion. services really dragging down the numbers. services account for two-thirds of gdp. is it is cutting reliance on cheap overseas workers.

that means higher costs for local companies. the government has been trying to reshape the economy, diversified growth, and include d, but it has not seen the rewards yet. until then, singapore will remain susceptible to fluctuations in global demand. stocks are pretty much down on a positive day for asia, reacting to the numbers this morning. that look for the singapore economy in the quarters ahead? what do you think people are saying are the biggest risks? >> it is pretty cloudy. a lot depends on how the labor market pans out. andhe tightness or cysts growth in some labor-intensive years will be hurt. increase in the fed exit from stimulus is a risk for singapore's economy.

china is an important trading partner for singapore. its efforts to rein in credit growth is not good news for the lion ciyt. -- lion city. that would negate growth in the second half. >> thank you so much for that. softbank has reached in the greek -- an agreement with t-mobile u.s. it will pay cash on a $60 billion deal. the menu, the chinese group is buying pizza group. it hopes local knowledge will help speed up growth in the chinese market.

shanghai involved in a connection with [indiscernible] a ruptured inquiry -- a corruption inquiry. >> shares of chinese carmakers are leading here in hong kong. david atlases here with the story. when the government says you've got to buy, you got to buy. >> how do we get that contract is the question for carmakers. beijing came out with minimum purchase requirements. there is a certain percentage that have to be in alternative vehicles. for most places in china, the minimum this year is 10% of your orders.

that goes up to 20% by next year and, by 2016, about a third of your orders must be from alternative energy vehicles. after 2016, the ratio will continue to rise. they just did not specify what number that was. this year, 10% in some places for my in the big cities, beijing for example, the places where you have more urgency to bring down this pollution level. the requirement is 15%. it is just the latest step. last week, they announced the tax break or you do not have to pay the 10% when you buy what they call new energy cars. what are new energy cars in china? electric cars, plug-in hybrids, or fuel-cell vehicles. price -- oroff the you do not have to pay 10% on

top of it. >> thinking about which stocks could be poised to benefit the most, which companies in china with those big? is the obvious choice, the electric carmaker. ones inlook at the big shanghai. in some way or another, they are exposed to the electric car business. the tax break also covers imported. electric vehicles that is where your test land bmw -- where your tesla and bmws come in. we will see if this works. this is just the latest one they have actually put in place. in the past, they offered subsidies reaching $18,000 off

the price of a car. becauseot quite worked the infrastructure has yet to be put in place. part of this latest metra, you have to set aside parking spaces. you look at the ratio of your fleet. you have to have the same ratio for charging stations. >> that is really the key, those charging stations. let's get back to the markets. a look at how the chinese automakers are trading today. >> it looks like it has a larger mission, perhaps to position china as a leader in terms of green auto, green energy, and reform a government dependent on audis, for example. listed in hong kong, we have geely seeing a 3.01% advance.

focus considering it is backed by warren buffett. look at the stock continuing to move higher. saic is listed in shanghai, seeing a gain of 1.5%. this is a shares, by the way. the ticker code is up 1.3%. -- h we are off to the steps of central mongolia or a festival that has become the must see for international tourist. lots of data due out this week. looking ahead at what we can expect from china and japan with our next guest.

>> let's get to our next guest. he is chief asia-pacific economist. thank you for joining us. it is a quiet day but it is not a quiet week. what is the highlight for you? >> twofold. one is janet yellen. we have heard a lot of noises from the other members of the fomc. the china data is the absolute key. and it is not the one that is scheduled for tuesday, it's also the credit numbers. the credit numbers are a powerful lead indicator for china's economic activity. >> you forgot about boj. they are kicking off their two-day policy meeting today.

the boj has an opportunity -- if it wanted to do something in the near tuner -- near-term, it had an opportunity at the april meeting. they revisited the semiannual forecast. they did cut it significantly, the growth forecast. you would have thought they would have significantly reduced to the inflation forecast and that would have led to additional quantitative easing. but they did not do so. something significant has happened. >> do you think they should have? >> i think there was a case for it. yourdruse -- you reduce forecast to such an extent, there is a case to answer for it. i can also make the opposite case, the boj case of quantitative easing leaves anything else in the shade that any other central bank has done. they are pretty much easing a

fulltilt. some people say there is room for more easing from the boj. >> that is also our opinion. we don't think it will be delivered very soon. we think it will be less quantitative and more qualitative. the boj is already buying about 70% of new issued [indiscernible] case particularly given the relative weakness of the stock market to maybe buy more risk assets. that would be more etf's, more real estate investment vehicles to further bolster the economic -- the domestic economy. i don't think anything has emerged recently that would have really pushed the boj in either direction, not on the currency, not on the economic data, and the hit on the consumption tax hike has been about as expected.

i agree with you that is one of the keys. >> and then, janet yellen speaking tomorrow. what we have been hearing from the fed has been kind of stoking the investors into thinking it will be it for a while. >> absolutely. but there is a debate going on, it seems, that the committee is anything but united. is a well-known hawk. of the centralr cisco fed comments also -- the san francisco fed also need to

be taken seriously. the unemployment rate is declining faster than the fed thought. why they have moved away from -- one cannot say that unemployment doesn't matter. the comments that evans made a curious. until we overshoot inflation, there is no reason to change policy. i would say, when inflation starts to overshoot, the horses has already cash -- have already bolted. what will be key for the fed is what happens to a just. they probably will pick up. when they start to pick up, then inflation pressures as a whole will do for. unemployment is back to 6.1%. a percentage point in the last year and that is good news. >> inflation is something we

should be watching for ahead of overall inflation. >> absolutely. >> we still haven't talked about china but good thing we have you back in 20 minutes time. for now, thank you for joining us. we will see you again. coming up, the latest on continuing violence in gaza as israel warns of a possible ground invasion. more for you in a moment.

>> welcome back. thousands of people have fled their homes in gaza after warnings from the israeli military about more airstrikes. the bombings continue with israel ignoring international calls for a cease-fire. at least 160 people have died in six days of violence. israel says it is updating plans for a possible ground invasion. egypt and the u.s. are leading international calls to end attacks from both sides. the salvage of the crippled costa concordia cruise liner will begin today. the ship sank off of tuscany in 2012. it was set up right last autumn and will eventually be towed to genoa for scrapping. the captain is on trial for

manslaughter, causing the shipwreck, and abandoning ship. in the nba, one of the last mysteries of the free agent season has been resolved. carmelo anthony signed a deal worth $130 million after chicago, offers from houston, dallas, and l.a. lebron james has returned to ohio and the cleveland cavaliers after lee we -- four years after leaving for miami. germany beat argentina. both sides had chances but it was germany that made the crucial right through. it is the first world cup win for unified germany. lifted they last trophy 24 years ago. world watched the

the game but not everywhere. mongolia was largely indifferent to the entire drama, preferring its own sporting and cultural history. >> an escape from the urban life, demonstration of the present and a combination of the old and the young. festival isaadam high on the tourist list. >> i know it is the only month of the year when it is quite warm. >> the most number of tourists come to mongolia in the last two months of summer. that makes up one third of all tourists coming to the country all around the year. tourism has been growing at an annual rate of 10% in the last decade and the government is

planning to use chances like this to double that. the countryconomy, is looking to double the tourists to one million by 2015. visitorst possible for to explore the country with no visa. offering them facilitation and we would like to increase our nomadic cultural events and we are very optimistic that lots of people will want to see this unique culture. >> whether or not the country can keep its duty-free economy growth in a slowing mining sector, the folksongs and dances will keep conquering the vast depths of the country. australia falls today.

in south korea, markets in a slump. janet talking about jobs, inflation. hong kong seeing gains across the board. afternoonrward to the from tokyo. today is the first day of the bank of japan meeting.

rebound asia, for stocks, declines come to an end. china has security concerns that apple denies. four weeks, 64 games is all over. germany celebrates a fourth world cup. [laughter] first, let's get the latest on the markets. a lot of celebrating. >> just look at what happened

over the last week. 7, markets were on a six-year high. then they slumped to april lows but now they have rebounded. take a look at the numbers today. rising on the word that the chinese government will increase the fuel efficiency of its fleet. telecom shares, china unicom rising. mobile, the world's biggest mobile carrier, up 2% today. singapore responding to the latest gdp report, the surprise contraction, shrinking of gdp, and you see stocks declining on that. cbc and kepler corporation, they are advancing.

the taxi operator of 2% today on the straits times. the asx 200 in australia rising as well. commodity producers doing quite well. japan returning to the business from the lunch break. >> the nikkei and topix index both rebounding. theaw a significant drop, biggest weekly drop since april last week. we have weaker yen, lifting exporters. nikkei, back from the lunch break, number four percent -- 4%. let's take a look at the mining stocks. other stocks you want to watch, softbank today on reports that

it has received approval for its purchase of t-mobile. now back from the lunch break, this is what we have. softbank is up higher by 1.6%. rising .6% -- .75%. they yen is modestly weaker. india's budget disappointed some that actually pleased a few others. how should investors view india's prospects? >> india outlining its budget last week, most were expecting sweeping changes from the two-month government perhaps disappointed because they left the deficit target unchanged. how does this really affect the outlook for the stock market?

let me show you two views. positive,ket basically is it shifts the focus away to something more tangible. picksre four sector because of the potential in for structure loans. idfc, speaking of infrastructure. cigarettes, lower than expected tax from the industry. pagese properties, their dlf. they remain positive. about 26,300 by the end of this year. the other notice from morgan stanley. the key things to watch is

government spending, tax cuts, and higher fdi limits in places like insurance and defense. stock picks include two industrials marked having. idfc is in the pic coming from citi as well likely to benefit most. igc, picks include unilever, because of the cuts in customs duties, and jubilant food works because of higher -- ptions in they are saying the sensex index oss 28,800. john.you have it, back to you.

>> apple says the location tracking function on the i've known cannot -- on the iphone cannot be used for tracking activities. but that is why china cctv is claiming. apple responding on allegations that it may lead to state secrets being linked -- leaked. the trackingg that function is a concern. chinese website says it has never worked with any government agencies from any a backdoor inate any of our products or services. information is has were protected. the tracker function can be turned off on your phone.

it is needed for certain apps like maps for driving. you do need them to make the app any use at all. cctv'says we appreciate effort to educate customers on our product. we want to make feel all of our -- make sure all of our customers are clear of what we do and what we don't when it comes to privacy and your personal data. apple is not the only u.s. company here that has been targeted i state-run media recently. who else and why are they doing it? companies,ve been google, facebook, microsoft. ont last month, a commentary the people's daily newspaper says these companies cooperated on a secret program to monitor china. was -- said not to buy the

microsoft 8 operating system. these companies say they don't work with the u.s. government to allow access to their servers. apple says it does not create a back door to any of its onyx. -- its products. governments dot not have access to its servers. the is come on a background of increasing tensions between washington and beijing with allegations of cyber security, hacking into information servers, and also with allegations and revelations that edward snowden made about prism, a monitoring system that said the u.s. was apparently using to listen in and get information on various people around the world. >> a lot of finger-pointing. speaking of apple, one of its main manufacturers foxconn is

going green with a new production facility in southwest china. is aiming to produce $8 billion worth of annual are put -- annual output by 2018. >> the foxconn chairman has a vision, a bustling dynamic population of academics and engineers, another silicon valley of these. >> we sent a lot of highly skilled people here. they love this place, it's temperature, humidity, air. it is the only place besides beijing that can call itself the chinese silicon valley with the help of peking university and sing while university. an eco-friendly campus and 133 thousand with r&dre meter rmb center --

center. all three will be chipping in to build infrastructure around the area, including a fiber-optic network. by march 2015, the company projects an annual output of $5 billion from the facility with 12,000 workers on site. theonn is touting this as greenest and eventually the most high-tech industrial park. it is not just the manufacturing assess that is green. the glasses self-cleaning and even the food is tasted -- food is tested for safety. this is a big step moving forward. foxconn wants to move away from

-- he wants to service clients at every step of the chain, from components to consumers. day, they maye supply lines all the way from raw materials to final delivery of consumer products. >> once we put a foundation here, it takes time, three to and we do not want to go back to traditional, labor-intensive jobs. >> big ambitions. for a company that has 30 production locations across china and employs over a million people, it is perhaps not too high a mountain to climb. jones shareholders have overwhelmingly approved the $2 billion takeover bid.

over 90% of investors supported the offer which rates the stock at $4 a share. clean up work on the crippled fukushima nuclear plant may have contained many did rise up to 20 kilometers away -- may have contaminated rice up to 20 kilometers away. the bank of china leasing business projected to order more planes. competing boeing models will also be ordered. an announcement is expected at the air show in u.k. today. water --to come, class will be back.

>> welcome back. out the mento point are wearing socks that are almost identical to each other. [laughter] what is going on here? are we going to get the same consensus for china gdp? >> i doubt it. we think it is going to be stronger. it will probably accelerate to 7.5%. that is driven by the data we have received. two months ago, we thought it would be 7.1%. it all has to do with the selective easing policy that the government has implemented which is a compilation of monetary moreres and getting

stimulating into the economy. >> even still, you have concerns. there are still things lingering in the chinese economy that you are unhappy about. >> we just think there is a structural slowdown. .t is common knowledge the real estate sector for prices are still moving down. on friday, we get the latest official data on the 70 largest cities. it is likely to show another monthly decline, which would be the second consecutive decline in property prices. there is an adjustment going on. we don't think there's going to be a crash, but there is a sizable overhang of unsold property. >> the risk of over leveraging. all of these targeted measures they put in place, is there a

risk that they might leverage the economy again just to reach 7.5%? >> and china, i think the leverage issue is clearly not with the household sector. this housing adjustment is very different from what you saw in ireland or in spain or in the u.s. it is not an overleveraged household sector. -- wherere's tons there is concerns of over leveraging is in government with the housing sector. is there a big risk that you overleveraged them? not really. one of the measures that the isernment has implemented writing mortgages with reasonable risk.

they have allowed banks to lend a bit more because they have changed what was the key constraint on the ability of the chinese banking sector to make loans, which was not the reserve requirements, but the loan to the deposit ratio. i don't think you are risking over leveraging at this stage. they have made significant interest-rate reductions. so i don't think that is much of a risk. the other key area of risk is the connection between local government finances and real estate. >> the murky part. in the second half, they will throw everything at it to make sure it is 7.5%. >> that was a bit of a change of heart. we were a bit disappointed about that. we thought it was a good sign that this new government gets away from its focus on numbers

and that they were looking more at the quality of growth rather than this growth maximizing strategy. but it basically means they have to pump up gdp growth. we had 7.4% in the fourth order. it has to be -- in the fourth quarter. it has to be at least 7.75% in the last. >> [indiscernible] is becoming more independent. there are stories that the government leaned on the central bank to cut interest rates and make more radical easing and they resist it. i think the pboc is becoming a more independent central bank. the cctvo you think of broadcast last week highlighting bank of china, these allegations that there is an underground them be to theng

clutches of the chinese government. we have seen specific hotspots in the u.s. popping up, same with australia. >> i don't think that is a story of reject ing liberalizing capital markets, developing an opening up capital markets. i think that is very much a part of the chinese economic policy. i think it had more to do with the anticorruption drive that is being. pursued in china. . one of the hallmarks of this government that they are serious about reforming financial markets and reforming and freeing up the exchange rate. i don't think that was a rejection of moral of this -- more liberalization. . . they do have to >> revisit -- they do have to revisit. of capitalnds

restrictions over time will be looked at, no doubt about that. and china, they take one step at a time. it is a cautious path, a cautious approach. ,ut these kinds of restrictions i'm sure, over several years, are going to largely disappear. german buta proud you did not watch the match last night. >> no. [laughter] it was at a very inconvenient time. i am half spanish and i still don't watch football. it is amazing that germany one against brazil in brazil. >> against argentina. >> yes. [laughter] >> we will let you off. >> it is great for germany, i'm

sure. but i do not think it will have any they like the weight and importance to the international 2016 --hat hosting the the 2006 had. that was the big change, the international psyche. gave germany the confidence in its ability to stage something. there was a time when everybody said the german economic model is dead as a door nail. and if germany does not become the way they u.k. is and the u.s. is, germany will flounder and end up in the japanese-style deflation. >> celebrating now and it is the first winter unified germany. we will leave it there. thank you so much.

even though you did not watch the game, congratulations to everyone, really. what a next or gary world cup it was. >> up next, the world cup comes to an end with germany taking the spoils. we will have the latest from rio.

>> 64 games, one winner. >> germany. the party, tell us the atmosphere. argentinians are obviously not celebrating but germans are. brazilians are celebrating in

a way like they won the world cup themselves because they were saying that could ever happen after the humiliation of losing to germany, seven-on last week, would have been their neighbors from across the border, their footballing rivals, argentina coming to their turf and taking the 10th -- the trophy back. there were several thousand brazilians inside the stadium today cheering on germany, cheering on deutsche land as if they were born in berlin. >> that is quite extraordinary since they got thrashed 7-1. but what of the party? what are brazilians also celebrating? what an extraordinary world cup and they pulled it off. >> absolutely. we build up to this world cup with fears over infrastructure, particularly the stadiums. the stadium that hosted the opening game of month ago on

june 12 in são paulo was being readied up until the last minute. it was still being readied after the first game. there was painting going on after the first game had been played. but we had a tournament that has seen more goals than any other, with the exception of france 1998. we have seen dramatic results. we have seen some new starts. we have seen teams like costa rica, whom no one gave a prayer to before the tournament. >> very quickly, what was your personal highlight? i guessrsonal highlight is a brazil hosting everyone from all over the world without any trouble. we had 30,000 to 40,000 argentines in most cities. we were told there would be trouble if the brazilians and argentines that together.

>> extraordinary party. thank you for joining us and thank you for joining us as well. >> well done, germany.

>> hello and welcome to the smart medicine show. we have a great show today. if you have pain or know someone that has pain, joint pain, back pain, bone pain or muscle pain. or if you suffer from arthritis, osteoarthritis, rheumatoid