indonesia's been presidential candidate says he will accept our economists have put together the legal ruling. the latest on this letter from jakarta. this new index starting in june. it goes all the way back 10 when a relationship sours -- years and that is what you have, tesla and toyota had big plans for the future. the china monetary condition but now they are going their separate ways. index. the inside track on where it all it is a bit of a mouthful. went wrong. three basic things go into it. and where does a economics go a -- ande -- edward is low interest rates, how low have roi cost us come down? where does abenomics go from and you have the real exchange there? >> we are coming off a two-month rate, which shows the demand for china's exports, how expensive low inequities. are the exports relative to other nations? investors going back into the equity markets. i guess it shows you that it has been relaxed. they perceive the geopolitical risks are less than last week. the fastest pace of loosening in the last two years. that is why we see gains. it is not quite as big as 2009. new zealand of the exception and the anon the exception. we get all of this data we are up .3%re and malaysia, showing on the screen. the money supply could come out as early as today. it is scheduled between today and the 15th.

the shanghai composite leading we showed the bank loans. gains. the naked 225 in the lunch break expecting there for july, now but it is our best performer in the region today. the highest amount of loans that on currencies, we see the yen the banking sector has loaned out for the month of july, which is typically very quiet. weaker, giving a lift to japanese exporters. typically, you get the massive emerging market currencies, like amounts coming online at the the malaysian ringgit, is start of january and february. higher. watch out. we see the rupiah higher. that is a preview. and the korean won higher. >> five years, a lot has airlines enjoying happened, including concerns of shadow inking and high debt load and he yells and all the rest. and all the rest. its return to trade this morning. a big jump after shares had the jump on friday. it does not put any pressure to us.inda amen is now with curb monetary easing. all of this as we prepared to if they wanted to, they could. >> things have changed. see this company go private again. >> you bet. peopler four years ago, another lifeline for malaysia are saying, oh, my god, airlines after aliens spent inflation. we have not really talked about already over the past six years. it because it has not been that

much of a problem. 3.5% is the ceiling. shares this morning up about 8%. even the biggest driver of a gained as much as 10% earlier. inflation, if you want to put it will be hard to say what it the biggest worry to the will take to revive a carrier government, which is food inflation, that has also come down. with two disasters happening in ..6% four months. new changes-- piece i think it is above 4% over the last couple of months. so you strip out food and will not work. it requires an overhaul. energy, consumer prices are just up 1.7%. producer prices, i think we got look at the gains today, up. that over the weekend, continuing to show declines. but malaysia airlines is still down year to date. the problem here is that we have paymajor shareholder will seen over two straight years of margin declines, which is a problem or will become a problem shareholders the 13% premium for the buyback. at some time, but not just yet. if you are a holder of malaysia the rising costs of living is airlines shares hoping for a higher price, you can almost forget it. second results will likely be awful. bedeviling india. 15 analysts have a -- what has he sell call on the company. been saying? you might as well accept comes gave met yesterday with the

a's offer.cept khazan r.b.i governor and has really act -- really backed the move. >> it is not just these two the r.b.i is the body which terrible tragedies, but also decides on interest-rate, years of losses, years of being keeping in mind circumstances a bloated company. and factors, and given the fact that the dr. has some issue in >> you are right about that. expect it to be leaner. the past. joining the monetary policy, the meaner? r.b.i governor had me gains probably not. status grow as far as benchmark, it will not compete in the he could in the cashiers of budget airline space. but will that be enough? some are not so convinced. issue and if it turns to really fight of flesh and. they will try to get consumer some say malaysia airlines needs to look at its business model. this is critical. inflation down to 8%. what it wants to achieve in long-term. it is not doing that, not yet last year, before three anyways. that is not to say it can't interest-rate hikes from the downnor had held inflation build a good image.

japan airlines did it. . while the government has it was bankrupt and now no more. undertaken several measures recently, including recommending swiss air did it as well. the delisting of food and in the money now with the new as the monsoonar owners. a turnaround. goes, which is about 17% from last week. accounted for the cpi fingers crossed, i guess, for that to happen. in india. >> thank you. to have the here is a quick check on some government approve. other stories making headlines. the governor also said some alibaba was not so profitable clarity on that could be had by last quarter. it fell 60%. really the end of this year. in -- a holds a stank >> thank you very much indeed. stake in alibaba. subscriberower growth. just seeing what is going on shares are now are 1.25% in here and we were higher and that tokyo. and the alibaba remains the case here in we are up by about .6%. tied, lifting all ships. let's kick it down to sydney.

why y and buy do have rallied still firmly in the green. since ali baba reported strong in -- strong results in june. we had positive cues coming out of tokyo. we also had positive cues coming out of the united it's overnight here in u.s. stocks rising. in baba's ipo is expected we also have asia-pacific as a september. result of that. if you want to sell shanghai shares through hong kong's new a look of the hang seng, we do see a rebound. change link, you will have to set your alarm. the hong kong exchange says equity, too.ghai shares need to be transferred before 7:30 a.m. allow two exchanges to settle trades per mainland rules. treasury wine is trading in in tokyo, it has been in the horse for a while, but the sydney and it looks like this. world's biggest pension fund is it is up 2.5% after it received a japanese one. there is a report that it has another bid. the author comes from an unnamed removed caps on equity ownership private equity group. . as a consequence, they can diversify out of bonds and into analysts say there may now be a equities during japan is

bidding war. expected to build on the gains for more on that story, let's after its morning session finished very positive. get to paul allen in sydney. with do we know about this rival bid? the bidder wanted to remain anonymous but the media is pretty much anonymous -- the much adamant. ppg according the matter. there is no certainty that it will result in an actual offer and the proposal is conditional on a number of other matters as well. it is exactly the same amount that kk i and run capital offered early last week. since then, the price has jumped. at fiveave it here $25, which is higher

than both bids on the table. the market seems to think it is not well valued and we may have a bidding war on our hounds. -- bidding war on our hands. >> that is great. annual,reasury wine's the price really fell off a with in january when all of this bad news came out, treasury suffering to hundred $60 million a repayments in the month of june. then you have the huge jump that coincided with the original april offer. treasury once has had a lot of trouble, dumping in the u.s. with oversupply issues. but there is still valid to be had. it is the world's largest listed one maker.

-- winemaker. wait toill sit back and see what this rival bidder and kk i can put on the table in coming weeks. white.be let's go back to zach ever -- zeb eckert. >> the market is higher modestly so. we have seen the trade lower today. we have lighter volume on the asx 200, down about 200. these are your key equity movers. --are seeing some of the >> japan is leading a market let's look at some of the commodity-related shares here we advance in asia. solve gold and other precious metals pushing back.

riskas investors put more indonesia's been presidential candidate says he will accept on the table, take a little more the legal ruling. equity risk if you will. gold is down let's take a when a relationship sours, tesla and toyota had such big lands but are now going separate ways. indonesia is highly -- hotly look at the gold miners in the sydney session. contested election. you are seeing evolution mining and new crests all declining. looks like evolution is the biggest decline or. big change of strategy for the bigger movers, let's check in on some of the miners. prabowo. >> you might be right. you -- fortescue is the court has heard testimony from as many as 25 witnesses. down .2%. prabowo demanded the court >> later, off script. immediately declare him the we look at how amazon is winner orioles hold a nationwide stepping up its battle with hollywood. revote. he claimed the victory of his

a good bedsia is illegal.o widodo was despite the rumbling of political tensions. this is "asia edge." challenge is the last chance to over turn the results. the election commission will appear at the hearing to put for its defenses. >> how big is the chance of her below winning the case here -- of prabowo winning the case here? >> not much. survey shows 78 are sent of voters are satisfied with the election process and only around 2% show their dissatisfaction on the july vote. even when the court decides a according tote,

prabowo wellther, accepted the results that you will not concede. to decide andue announced on october 5. >> thank you. >> let's check in on the other stories making headlines around the world. the state said he took 53% of the vote. that removes any need for a runoff. he wants to transform the presidency from a ceremonial role to one that combines head of state with head of government. israel and hamas have agreed to 72-hour-our small --

cease-fire. israel says at least 30 missiles were fired he had -- fired ahead of the cease-fire. bordersays it wants the equities getting a bit of a to be lifted. rebound. let's get valuable insights. food and water has been dropped of thousands of people in good of you to come on. northern iraq. islamic militants have seized let's talk about where we are right now in the whole cycle. large parts of the region. we have had a couple of weeks of aslines in was that a check many from the yazidi minority we head toward the six-year fled. highs. the hard-line sunni fighters warned the sect converted to i thin>> i think asia looks ok. be -- nin soon

southeast asia looks fine and india looks great. these geopolitical tensions have -- orities been there for quite some time. it is stranded is has taken the last two weeks to trigger >> japan may be on track to something. reach its inflation target. but it underlines the witness but some important measures, ab enter -- and equity markets as the u.s. is beginning to normalize monetary policy. enomics, still has a way to go. >> this is a case of good news being bad news, the era of cheap and he joins us from tokyo -- money, people can see the end of that. >> yeah. andy joins us from tokyo. tell us about abenomics and how perhaps some much of the far abe still needs to go. corporate that levels of the >> it is interesting are now. u.s. -- debt levels at the recess taken over the last few years. is whole plan of abenomics there is a lot of caps on the bounce sheets. but they have been borrowing to come in and reflect the company after 15 years or more very heavily.

of deflation and economic drift. and he is getting that. >> because they can because it he is getting what he wished for is so cheap. >> but they have been paying . pass inn the fastest dividends here >> is it a ponzi scheme? >> i don't think it is a ponzi years. , seeinglem is now that scheme. the rising prices, income not going up, and exports. but i think equities have more to claim as you get to the developed countries. with the weaker yen introduced >> there is bound to be some has notary policy, this time for gut check sooner or later. still thatcast is given exports the boost we had hoped. s&p will be doing 20% by the end of this year. >> let's look at the individual markets. it is hurting the cost line of many japanese companies. limits.s the so it is kind of a double-edged sword at the moment, mr. of it we are into the next phase of -- mr. abe. >> a lot of the perception of the business cycle in india. we went to a very negative the weaker yen is that it would stoke export demand and job period between 2012 and 2014.

start the economy in japan. we have not seen that. what are the indications? there is at least a five-year upswing in india. l exactly. all over -- although the exactly. equities have gone up the last few months, i think they have a they are making more money. few years yet to continue the profit line has gone up a running up. bit. the volume is not rising. to factor in an that is the issue. acceleration of indian growth, significant acceleration and real gdp. companies have a lot to do themselves a turnaround situation. to push his as companies have been repairing their balance sheet for the last circle and try to improve the structural- the two years. they have been improving their cash flow position and their debt position as well. >> an economic miracle is being environment for this company so they can compete better on the priced in right now. global stage. economic upswing thanks for joining us. let's get the latest on the asserting to take place. people were very negative on india. markets right now, zeb eckert is checking the numbers. not concentrating so much on the sunsets, but the bse by hundred >> in this monday session, japan is the best. .- bse 500, and the nikkeiix

225 advancing. >> let's move to southeast asia. there is reports that the government pension investment fund, the main government >> i think the politics of pension fund, has removed a cap improved somewhat in indonesia. on local stock investments. meaning it will invest on domestic equities and that is >> it is steady and malaysia. also giving a downside on the the trouble spot is still thailand yet, when you look japanese yen. across, beyond the politics, the shares advancing despite the 68% drop in the most recent quarter. economics of all of these countries, we start to find them -- thetracking one very attractive they are shares are down. well-managed they have never gone back to the place previous medium-termt is a the automakers are advancing. .et, three to five years we see toyota, nissan and honda are all higher.

>> this is "asia edge." attracting -- we are also tracking the airlines today. skymark, more headwinds for that company. it announced it would be pulling out of narita airport. make a news reporting that it 86l abandon plans to buy 380. we did have that they telephone -- typhoon over the weekend, on westernamppost japan and hundreds of passengers still affected. you want to make sure, if you are flying to japan or through japan, that you had checked your arrival and departure boards to -- boards.

craig has the inside line on this. how did this come about in the first place? . toyota was looking for an owner of a new plant it was closing. it ran for years with general occupant toyota said he first saw a tesla roadster in a magazine and was intrigued by the car. he wanted to find out more by elon musk and about his company and this car. this is how they knew each other. we had a mutual interest. inota said he was interested tesla cars. they still were building the model s. tesla is now

building the model s is obeying the suv. it really hasn't performed well in the marketplace whatsoever. they decided they would build about 2600 of them over three years. here we are about four years after the partnership was agreed to. asked 2000not even bills yet for this around 4 electric vehicle. >> these two companies are not cut from the same cloth, are they? >> it gets down to some pretty teslaental differences in >> china embarks on a massive lending spree in 2009 to keep is a fast-moving, on the flies style company and. toyota is about as far from it the economy afloat. as you get. five years later, policymakers are using the same trick but to there's a lot of testing, a lot of quality confirmation. it just did not work very well.

a lesser effective degree. we are talking about credit there were some specific onblems but the engineers growth, monetary policy and fiscal policy. you have the state counsel the respective teams named for basically ordering a few months us components like the battery case. pob that's thee pboc to lower costs -- asking tesla was proposed by the pboc to lower borrowing costs. not up to the standards that toyota was looking for. make sure they get the money at affordable rates. there was a desire for jesse -- four tesla to go without the we have seen a pickup in the data, exports of 14%. parking whole. in tesla's proposed design and toyota was not at all comfortable with going forward without that art. so you have those specific problems. an issue with a regenerative braking system. tesla was able to deliver on that at the last minute. that was just a series of problem xan.

>> thank you for that. the end of an affair between toyota and tesla. we will look at how tenses play out as far as the market action goes.

>> jim, we talked about india and what is going on in southeast asia. what is your view when it comes to the market perspective and your economics viewpoint? >> [indiscernible] exactly, it is like a heroin

at a facing heroin again. >> it does not boost a very efficiently. be saying tol people you want to be underway chinese equities over the next six months. >> two weeks ago, everybody was flooding into china. >> yes. kinds ofeen these things go back to the highs of this year. we are still 60% down from where china was in 2007. >> if you are under way china, where are you putting your money? philippines,india, southeast asia, taiwan. >> we have turned a corner. they have turned the taps back on. they may not have accomplished a lot in reforms, but they have been able to avert a crash which is arguably something in everyone's benefit really. >> in the short-term, the

soblem is that, when you put much debt into areas that are not making any money, you have the cash in the short term and when it it much worse comes to the medium and longer term. i don't think they have ruled out anything yet. >> is it down to property? is it really the key concern that investors should be focusing on? >> i think there is an issue that the property market is under some pressure at the moment. -- theernment same government doesn't seem to be rushing to its aid because so much has been wasted and is areas. but the problem still lies with local governments and how much they are taking in terms of the next growth phase. it seems that so much is consecrated -- concentrated in local government activity. there promotion is still

based on growth they cannot deliver. >> whatever the government wants, that is exactly right. we want them to deliver returns if we were to invest in china and that is difficult for me as an advisor. your versus them is less on economic easing and more on the political. you talk about efficiency. get out of state-owned enterprises and go private, right? >> it is with state-owned enterprises were people will get cheaper money. >> efficiency is the money. >> eight is difficult to separate the state and the private sector in china. the private sector is heavily dependent on the state. tomakes it very difficult really say these guys are safe

so let's put our money into the safe guys. not sure who the safe guys are. >> what about japan then? they are a safe haven. >> is it? >> i want to go back to a point you made about local governments. from what i have read, they are not necessarily incentivized anymore to deliver 7% or 8 percent gdp growth. they are incentivized to bring balance growth and vigor projects. if we have less of the ridiculous spending that has no return. >> i was encouraged earlier in the year with what was happening with local governments. ande was more about quality pollution control. the last month, it seems to be reversed. it happened so much in china. when the chips are down and they look at the best way to slow growth, they back away and the quality of growth disappears.

but japan -- >> yes. is it anywhere near? >> i am close to saying that failures is the weakest -- the biggest failure. inflation has gone up. that incomedea is will go up. they would actually be we -- be boosting wages. maybe they will. >> they have to put pressure on employers. >> i couldn't agree with you more. >> we have reduced profitability. that just does not work. you can boost wages you -- you can't just boost wages. >> what should they do?

consolidate the fiscal records in japan and start getting back on track in terms of the debt levels of government. we have completely reversed the that. the rift between the bank of japan and the government in japan is growing daily. you hear mr. corona saying in each hearing that the company has to asset -- that the government has to get back on track. >> the idea that growth would eventually catch up, the fiscal deficit would automatically reduce itself. >> this is what they're trying to do all around the world, nominal gdp instead of real gdp. we see that is the easy option, the easy way out. it is what politicians do. it is what central banks do. >> what they are really doing is

transferring that debt burden load and pay back to taxpayers and the corporate are off and running with the corporate tax cut. >> yes, from very high levels of corporate tax in japan. >> but the loopholes may most people don't pay it. >> that's right. stupidly, they have too many loopholes. simplify the tax code. they offset the 3% buy another 2% in government spending. talked about japan in the second quarter having a 7% drop in gdp. >> i was reading this article they are try to get women back in the workforce and there have been changes, including when you have to go

for the traditional drink with your boss, as a female, you can -- drink wine with soda water instead of beer. [laughter] >> instant hangover. >> still to calm, taking hollywood to task. >> why amazon is clashing with film studios.

orderyou are looking to the dvd of your disney favorite,

you can't because amazon won't let you. >> they basically got the market again by the throat. >> it is one of those things where the business market -- business model works against the studios. in the theaters, you have to split it with the movie theaters, the distributors. then you stream it and you charge a fee. what amazon has done is understood that they have grown quite strong. the film studios depend on them more than they depend on the film studios. what they've done recently is blocked the reorder option for dvds, not the online streaming version, but the dvds. ,"r example, "captain america you cannot get it right now. >> he is the winter soldier.

it is not like they can rely on blockbuster anymore for pre-order sales or diehard filmgoers who want a copy. bob buster does not exist anymore. -- blockbuster does not exist anymore. >> it is a bit like what the publishing houses have been complaining about. amazon will argue that the publishers get their cut. technology is getting cheaper and cheaper so there we go. >> again, the argument between the price of dvds or the price of books. how much do i buy from you as a wholesaler and how much i sell it to the public. i think the problem with the publishers is we have gone from books a bookstore to -- hard copy in the bookstore to ever back in the bookstore to paperback online to e-books online. so it has changed quite a lot.

what amazon is saying, the whater it gets -- publishers are saying is they do not want to commoditize. >> there are a lot of legos on your wish list. [laughter] >> it is a very hard thing. "teenage mutant ninja turtles" are back on top. it is $65

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