also coming up in the program, k.f.c. heading for the streets of myanmar. yum! brand succeeded in china. we will be asking if it still has the recipe for brand-new markets. >> i'm watching the markets for you as we kick off a new trading week. google equities, things could be better but no, fairly big sell-off today. the global sell-off we're seeing following a drop on waurlt friday. the worst weekend for stocks in the middle east in get this, four years. bargain hunting, put off jafment pan close today. that will pay catch-up tomorrow. asia pacific now in a technical correction. aggregate to everything that you see here on your boards. australia, more or less eight-month low here. south korea seven-month low. hang seng four-month low. southeast asia index seven-month

low. multimonth low for a lot of asian indices here. two things here. fist is we're seeing demand for safe havens now. a little bit picking up a little bit. yen $107.12 against the u.s. dollar and that brings up the u.s. dollar index. if we can get it up for you. one more try. here we go. it's run up over 7% over the past few months or so. again, it's being scaled back right now on expectations of the u.s. rate hike may be pushed back further. why not, comments from a number of fed official that's they may actually need to put that up a little bit given growth out and perhaps implications that may have on the u.s. economy. aussie dollar, for example, dollar index flow, aussie dollar, of course, over the course of two days you can see a spike up, .6%. but risk aversion today.

largest speaking still persisting despite surprisingly upbeat trade numbers out of china. i will leave it there. be back with more what's happening elsewhere in the markets a bit later in the show. back to you. >> indeed as well. china to some except here as well, export beating expectations. whopping 15.3% gain there. imports also, well, much more being imported than actually had been predicted by the economies we had been surveying. our china correspondent is steven engle and he's in beijing. steve, tell us. >> on the sursurface of things it looks as though global demand is picking up. that is helping chinese economy offset the prolonged weakness in the equity market. key pillar of this economy here. exports rising 15.3% in september, most since february of last year. economists expecting rise of about 12%. imports better than expected rising 7%. the most since february of this

year. the consensus estimate from economist surveyed by bloomberg was for a 2% decline in imports. trade surplus was nearly 31 billion dollars down from last month's record high of nearly $50 billion. bottom line is, rich, the economy has stabilized. pboc governor just over this weekend saying the economy will continue to exexpand at a steady pace and if we read what authorities had been saying all along, we shouldn't be looking for nager fiscal or monetary stimulus. we hord from premier scheng as well saying the quality is perhaps equally important, if not more important than necessarily the pace of growth. they're sticking to their words now. looks as though the external picture is improving and that's helping the domestic economy here. as my colleague in the beijing office had mentioned in the last hour, we are digging deeper into the export and import numbers.

trade numbers, especially across the border in hong kong where we got into some trouble in the last couple of years with some over invoicing issues which inflated numbers to chase hot money in-flows. so we will look at that again. hong kong numbers were considerable lyinger than what we have seen fleept months. >> thanks, steve. on the streets of hong kong, police are remeeving barricades it, taking back government property. we are live at the scene. roz, you have been covering this from the start. it's been something of a slow burn. and the market is different now.

>> yes. there was a bit of tension this morning as police moved in to remove barriers. they have also been reinforcing barricades and also front lines, putting more people there tents as well as physical human beings to make it better for police if they take further action. on the police front, they have said that they have no further instructions from commanders for the day. they said very clearly to clarify, they are removing -- rather removing barricades but not removing barricades but reclaiming the government property which could be the physical metal structures. they also said they're not moving actual barricades and not moving protesters. that is what they're very clear on today. so right now as it stands, there are police behind the line there, behind me of the initial barricade. and front of me there is a reinforced barricade as well.

second bar kide to stop any action if they decide to take any. right now there hasn't by any instruction. also, it's been very peaceful today. hasn't been really any clash between protesters and police for some yelling. back to you. at that's st looking well, we see they want him to resign now. the thing is you're saying there's no point in doing that because it wouldn't make any difference, right? >> yes. he says he's not going to resign because it wouldn't solve the problem for the democracy campaigners and this is why. >> we hope to negotiate to achieve universal sufffladge 2017 but if the precondition is to neglect the peaceful decision, everyone knows the chance for negotiation is close to zero.

>> so what he mentioned china's planner, he means plans to announce 31 of august to allow hong kong 5 million eligible brokers but only from a few company that's have been vetted y china. eiterating they will have this before the election here in hong kong. >> how have protesters reacted to the message coming from the chief executive? >> they hold the government

accountable. they say he should do the right thing. misspent a lot and that was in beijing as well as formulated. they say the government is accountable for this. and that's why leung should step down. the chairman has been hoping to meet with and because of the rallies have surfaced, it could ot begin and over the weekend, the number $swell. but they did -- supporters did

bring the number $swell. in the numbe weekend. >> thank you for that, rose on the streets of hong kong right now. what impact have these protests had on small businesses in this part of the world and indeed hong kong, of course, naturally. the currency of asian, how business has been hit. >> some have been about 50%. if they were stand-alone businesses, they couldn't last much more than a month. fortunately they're not. so the business goes on. but with the portfolio, they will suffer. most subsidies of hong kong, don't have more than one month of cash. can't go on much longer. people will go out of business than will have a lot of social mpact.

>> political risk advisory says the protesters and government need to rethink how they approach the standoff. >> in any democracy movement will have to keep niped how it stays relevant. to make sure it doesn't irritate the people who support its needs. china and hong kong government are appealing some heat from this because they're going to make statements saying this is bound to fail. real deloipt go out and say this if it's true. only if you fear it's not true that you say that. >> simon cox, bank of new york's investment strategist for asia pacific how the protest has really affected hong kong's reputation as a business destination. >> i think it's modest. if you think about the board complaints that surfaced, economic equality and so on, some of those are symptoms of success. money flowing into hong kong's

market, you may notice it in hong kong's shops. this sent a city struggling for demand. the city has been populating. think i think by global standards hong kong remains successful and it won't damage that reputation too much. if you talk to people in ingapore, nervous hong kong is vis-a-vis singapore. >> that's the word from asia on hong kong. coming up here on the program -- giving corporations the boost as far as the budget goes, heading to kuala lumpur to dissect details.

>> officials have been assessing weak global growth and the could affect the american recovery. they may postpone rate hikes if the world economy doesn't pick up steam. speaking at the i.m.f. annual meetings in washington, other officials echoing concerns about the economy's ability to with stand foreign weakness and strength of the dollar fpblet on the other hand, i.m.f. in beijing saying there's no need to worry about china's slowing growth and the economy. people's bank of china saying the country needs to maintain what it called prudent margin policy amid-steady growth and mild inflation. for more we are joined by the chief asia meerging market strategist of jpmorgan. nobody would advise imprudent monetary policy, would they, sir? >> i always like those statements. it does not really tell us anything, does it?

>> absolute wonderful benality. but it's true, more of a case switching to qualitative rather than quantitative growth. >> i think at the moment investors are confused about many things, including what is the balance between promoting reform in china versus going for the 7.5% growth target. and more global lynn vesters are confused when you talk about the fed making a statement that sounded more dovish. remember this market correction that started in early september what's the prospect of the fed increasing interest rates and that's when you began to see the dollar strengthen versus the euro and yen. and then you started the correction particularly in assets like emerging market equities. >> and you see that money being taken out, has it not? >> definitely seen large redemptions plarksly in the e.t.s. for emerging markets. there's been broad risk of trade going on. >> how have e.t.f.'s come to china is another story, is it not? >> we have seen out-flows from china dedicated funds as well.

>> so where do we go from here? if we look at currency play, dollar continue to strike? we have seen a bit of a pull-back against the yen at least. the expectation is you will see the dollar firming over the next couple of years as the u.s. appears to be the relatively stronger economy. although that's against a very easy bveragemark of europe and japan. but we would argue that much of the correction that needed to happen on the dollar near term has already happened in terms of its strengthening. we think the story focused next year is big inflation dividend. what we mean by that is as commodity fuel prices have fallen, we are going to see inflation undershoot next year. and that's incredibly important for our part of the world where incomes are relatively modest. o if the price of fuel comes down, price of food comes down. that frees up discretionary income and gives you a positive

surprise. >> when you talk about that as well, e.t.f.'s coming out but i think want to go nonconsensus clauses positivety when it comes to emerging market equities. >> that's right. what we think is a story people are underappreciating how arning s can do are underappreciating how earning s can do well next year. so the argument for the top line is discretionary income gets helped by inflation. if we think about this overall margin perspective and put prices are clearly falling and that will be helpful for margins. e.m., which has been disappointing in relative earns versus developed markets i think has a great chance of outperforming in terms of earnings growth and ultimately, that will drive the relative perform eaps of stock markets. >> what do you do? it's not a broad rush recovery, is it? what industry groups, et cetera? >> i think countries best placed for this are the grouping of indonesia and thailand. >> despite big rally we have seen in the countries.

>> global three countries have been doing pretty well. look, i think they're being moved on the correct fundamentals and when we look at the valuations of these countries, they still look very reasonable. and we would argue that the earnings are depressed. out with that, i think it becomes much more sector specific. we have like tech this year, clearly we're going to see a ch correction today on the back of some of the downgrades that we saw in the u.s. on friday. if you look at the detail of those, i think the market is completely overreacting to it. so i suspect it's going to give us an opportunity to add to next week or so. >> ok. thank you very much. stick around. we have a full discussion coming up in 20 minutes. up next next week or so. >> ok. thank you very much. stick around. we have a full discussion coming up in 20 minutes. up next -- president vladimir putin expecting a frank exchange f views at next month's g-20

summit. details on that.

>> let's check on some of the other stories making headlines around the world jafment pan's two biggest carriers canceled more than 150 flights today. that is storm winds disrupt travel for a second week. the typhoon made landfall but still gusting to around 180 kilometers and now 35 people

reportedly injured. the authorities have issued evacuation warnings to 200,000 people. meanwhile, another powerful storm hit india's eastern seaboard. cyclone hudhud reported to kill at least six people and causing widespread damage in arissa provinces. the system crossing the coast with winds up to 200 kilometers an hour but is expected to weaken dramatically. nearly half a million people have been move add way from the coast as the storm approached. change in weather helping to clear the skies in northern china. this was a scene saturday as pollution was 20 times the internationally recommended level. the reading for particles stopping 500 in places. world health organization safety level is 25. cooler winds have helped to improve the situation. today is the first full day of

chinese premier's three-day trip to russia. he is scheduled to meet president vladimir putin and oversee the signing of a string of bilateral agreements expected to kov energy, transport and finance. russia has been returning to them, with sanctions for the reign. and the g-20 next month taking place in brisbane and it's confirmed president putin will be there. was there ever a chance the g-20 would be able to freeze putin out here? >> it was certainly discussed here in australia and there was some political pressure applied domestically to persuade the government not to allow vladimir putin to come to brisbane for the g-20 which happens in a month's time. that wasn't just over russia's involvement in the ukraine but more importantly to due with the mh-17 disaster, when that plane

was shot out of the sky, there were 38 australians on board. so there's particular point point ansi for australia in that respect. that terrible incident also happened pretty much around the time of the g-20 trade minister's meeting in sydney and there was a lot of discussion then as well what to do with russia. there was confusion as well whether the rules even allowed the g20 to exclude anybody. there was no precedent of the g20 ever barring a leader before. but now the australian treasurer confirmed yes, vladimir putin would be allowed to contend, there was consensus he should be there with very strong views in particular being expressed by the u.s. president and the german chancellor. he also added australia did not have the unilateral power to lock anybody out. >> so vladimir putin in brisbane. he will not really be welcomed with open arms, is he?

>> no. it's certainly going to make that summit a lot more interesting. they do tend to be quite dry. on this occasion there's expected to be quite a lot of tension and a bit more color involved when subpoena vp does show up. the news -- vladimir putin does show up. the news after joe hockey met with russia's finance minister, he said he had a full and frank discussion with him and vladimir putin can expect the same in brisbane, rich. >> thank you very much indeed. paul allen there for us in sydney. let's check on what's going on as far as trading go there's for the time being. just having a look at the market which was lower along with the rest of the asian-pacific, global growth concerns partially responsible for that. we have a.s.x. 5,159. and peeking it out to what's going on in seoul, bucking the trend there. top 1.9% in this declining market. kospi down .7%. and they announce they had

invented a wi-fi system, samsung, five times faster than the current available product. that's what they have at the moment with the kospi, down at the moment. looking at what's going on in hong kong, protests continue with occupy sen thral. -- central. police on the streets removing barricades and taking back government property. that's what we have at the moment. in seng, that's the scene admiralty, slightly to the east of central district but right next to the financial district of the former british colony here as well. so we're just about 40 points elow that, 22,963. asia edges back in a couple minutes.

>> keeping it all in the family in india. enbarney. od to be and yum! brands designs on myanmar. this is the world's biggest oil refine are. it's reliance, reporting later today and we're expecting it to have the slowest growth in a year. analyst says profit would be up

about 2% because that would be the last quarter because of asia's weakening demand for fuel. chcht is spending $29 billion to expand the oil business there and starting a new telecom service next year. reports have been on changes on the reliance's board and his two children have joined. a generation next preparing to take over? >> the third generation, clearly the indication we have seen the succession that in the private sector. the youngest children, -year-old twins acache and ikish, for reliance retail. it is really interesting. reliance had been working since the 2015 launch for 4g telecom service. associated with the telecom venture and involved in the

development of products and digital ack places. similarly, reliance's retail unit which posted its first annual profit in the last fiscal focused on improving profitability now that revenue stabilized as part of its efforts to boost margins. reliance was shoved for what it calls global forming star as cross different formats and company told analysts its last quarterly earning release will continue. so they have grown 15%, an indication that seems to be working. what we know about the two children, one graduated from yale university with majors in psychology and southeastern asian studies last year and brief stint in the u.s. while acash, on the other hand, graduated from brown university with major in economics. ich? >> let's look at some of the

other stories making headlines. agriculture helping the region surge over the past decade, as industrial sector struggles. chief minister there saying india should copy china, japan and south korea and concentrate on manufacturing. they reached an accord to adopt more business-friendly policies. a warning of a crisis unless regulators focus on the structure of the market to bank dealers. he told an i.m.f. sponsored pam new capital rules have banks charging more for liquidity and use of balance sheets. the merger with rio tinto would need a big sweetener. that's according to a former executive at rival b.h.b. billiton. telling australian television the preem upwould be around 30% and he doesn't think glencore could afford that.

glencore abandoned the idea after being rebuffed by rio. a day we are seeing serious pressure on equities, taiwan taking a big hit. having a look at some of the moving parts here, david? >> in fact right now, we are looking at taiwan and breaking that market down now. technology stocks, 3.6%, that's dragging things down given how big of a portion that actually comprises the overall index in taiwan. 2.3%. this is a market which actually saw what labor let me get you that. half a billion u.s. dollars for outflow last week. we're adding to that and this comes in the back of this morning coming from microchip technology in the u.s. back on friday. warning of an industry correction given the drop in demand coming from china. we're talking about chips here, semiconductors, by the way. that being said we had traded off the world's second largest economy earlier so exports

picking up. the story there was really about the sudden pickup when it came to imports, taking surplus to $10 billion less be than expected. that's as far as benchmarks are concerned. against one factory there, what happened in september, what was different in september and perhaps august is you had the currencies of china's major trading partners with the exception of the u.s., of course. also currencies get absolutely whacked. we're talking about the euro. talking about the yen. so talking about aussie dollar and so on and so forth. look at aussie, of course, also a fairly big trading partner of china. currencies there also got whacked to some extent because of the strong u.s. dollar. that essentially made those exports cheaper into china. perhaps a lot of these buyers in china front loading some of the purchases and also perhaps a factor. that's what you have as far as indices are concerned. casino stocks in hong kong y. are we watching them? two things. moody's putting out credit

outlook here. on the industry. september. in that's not positive for obviously the credit rating, unsurprising negative credit there. it weakens their ability to service debt. fast forward to 2015. what moody's is saying you have more capacity coming online that will actually make the challenges more acute than when you look at i guess, give you a galaxy macaw,ere, 1,000 new gaming tables coming online. watch that closely. you have diwa securities clashing in a lot of major ca seen yeses. the industry putting that on hold at this point. before i go, by the way, i just want to mention, also casino stocks here, macau stock get get nice. i'm not making that up. get nice. it operates a hotel and spa and toffers investment services in hong kong, midsize company.

about $22 million in revenue last year. they are basically saying expect a significant drop in first half profit. that's here in hong kong. agile property resumed trade today after being halted for about a week. it opened about 30% lower. short of it is billionaire founder is now under -- well, under the control, quote control or house arrest, however you want to put it, of chinese prosecutors who required him to stay at a designated residence. since the evening of september 30th. pushing down the stock about 21% at this point. rich, back to you. >> thank you, david. rosa giving corporations something of a boost in his late environment budget speech, let's have a close are look bloomberg tv. sophie, very good day to you. any big surprises in this speech? >> hey, rich. there wasn't much in the way of

surprises but there was certainly something for taxpayers to cheer about. if we look at the revised tax structure here's, we will see across the categories income tax cut of about 1% to 3%. so they will get a little relief when the cap will be 20% to 19% in a full year of assessment for 2015. now, of course, this is a little bit of breathing room for taxpayers ahead of the g.s.t. being introduced in april 2015. some economists we have spoken to said the g.s.t., of course, will generate enough revenue for government to potentially shift over its revenue base towards other forms of income but there's still room for potentially more tax guts for taxpayers coming up, of course. >> there's been a lot of talk about there being more aggressive subsidy cuts. it's something a lot of people have been calling for. a lot of economists. question is, are we going to get them?

>> well, the prime minister did mention on friday that there will be a new subsidy scheme put in place for fuel. this is, of course, to ensure that the universal scheme will be transitioned into more targeted scheme so that lower income households will benefit more from the allocation to subsidies. the government is, of course, attempting to balance ahead of 2020 and part of that comes from trimming its hefty subsidy bill, which last year came down to about 15% of the budget. so when you consider the transition from universal blanket subsidies to target subsidies, this is potentially more optimistic move on the part of the government. details of this revised scheme are likely to be announced by the prime minister in the come weeks and on top of that, looking at the potential inflationary pressures on g.s.t. but central bank governor of malaysia over the weekend said he's not overly concerned considering that the central bank will monitor potential second round of specs and that

they will main entertain an accommodative monetary policy to support growth. of course, in november policy decision meeting is scheduled before the end of the year. but most observers are expecting the central bank to maintain a hold on the benchmark rate. >> thank you, sophie there. joining us from kuala lumpur. a pioneer of emerging markets. yum! brands has its sights on one of the last great frontees. talking myanmar, southeast asian competent joins us with a look -- i guess we have to find out how much we know. you're saying there's not much we know about what they're really planning? >> at this point in time you're right about that. little is known. what we know is that it's going to be a joint venture. yum! brands will tie up with a local company yoma. by the way, that company listed in singapore, they will tie up for this particular project, little else revealed so far. though having said that, there's

been tremendous speculation over the past year that yum! has been hiring in mean jahr, not surprising. -- myanmar, not surprising. massive attempt i guess to get market.t particular global players are keen to get a share of the pie in myanmar. a market that's just opened up to foreign companies. it's also increasing wealth among the people. there's a lot of potential, so much to be tapped and there have been success stories. thailand's food groups for instance, case noipt, the ice eam wednesday -- restaurant, the barbecue chicken chain is down as well. operating in five locations and as you can imagine, there's room for much more. research estimates the restaurant market is worth something like $3 billion. the growth expected to be pretty rapid. >> thing is, there have been out

now and this is a story that grabbed the attention of a lot of people who invest in emerging markets but it's a huge challenge. not exactly bed of roses actually trying to deal with infrastructure there. and that is precisely the point. >> infrastructure say huge issue. talk about keeping foods refrigerated or frozen officially is a question for restaurants. needed to transport food the roads are in its infancy. a lot needs doing. but having said that though, it's not enough to deter companies keen to tap into myanmar's growth story. per capita g.d.p. now stands at about 900, the lowest in southeast asia but we're talking about a growing middle class. we're talking g.d.p. between 6% and 7% in the last several years that.s0 will show you trickle down. higher purchasing power and people will develop a case for foreign brands as well. rich?

>> thank you very much for that. our southeast correspondent there. we will look at some of the aviation story that's will be making headlines. air bus making deeper inroads into china. curing an order for 70 a-320 jets there. list prize $7 billion. and also signed an agreement for aircraft finishing center in the country. to put this into context, in less than 10 years airbus doubled its market share in china. it is set to overtake the united states as world's biggest aircraft market in two decades. showdown looming between cafe pacific and its pilots this week. after the latest pay offer was voted down. 51% rejected cathay's offer of an increase on 1% to 4%. talks break down and pilot maze broke work to rule, which could disrupt operations over the busy part of the year-end period. air france throwing the gauntlet down to its unhappy pilots saying it will create another

low-cost carrier if they refuse to support the expansion of the budget division. air france saying a simpler option would be to expand it but a number subsidiary is a backup plan. the two-week strike estimated cost the airline 236 million dollars. and more warnings from the fed. fed officials i should say that could delay a possible interest rate hike. we have a look at the implications on markets in our group discussion. that's when "asia edge" returns.

>> this is "asia edge." joining myself and john we have sherry from jpmorgan chase. let's talk about what's going on here in hong kong. it's been simmering, change in atmosphere today with the police being very visible, taking what

they call as government property. i.e. barricades away from some of the people occupying central. how does this resolve itself now? >> i think it's very difficult for this to resolve itself. both sides have a very clear view and there doesn't seem to be a compromise between those two views. i suspect it will rebel on. from the perspective of capital market it's you look at the m.s.i. hong kong index that's gone down less than the china index. i think the falls we have seen in markets have been related to this point in chinese states issues with the brazilian election plus confusion around what's the fed going to do? fed raise rates or is it an issue still of weak economies? we had disappointing numbers out of europe. >> people keep telling us protests don't really have a big impact when it comes to the overall economy. do you agree with that, even if it drags on? >> i do agree with that.

we look at the golden weak sales in china, they were poor as well. i agree with that. also you had a guest on earlier talking about s.m.e.'s. it's clear there are small businesses here that are being significantly impacted by that. >> absolutely. john was talking to one earlier. >> yes. >> you're talking about also the asia star gentleman on the program. >> him. head of the producer of commerce investments and helps finance them. he did say, in fact, they have enough cash for months. they need rental relief, there's a strong chance they will be out of business in the next month. he was saying the leadership in the zoft is pretty dismal. that's been the issue from the beginning. in three weeks, if this would never happen in london or new york. it wouldn't go on this long.

it would be sorted out. >> i think the issue, how do you resolve this? you will not resolve it because two sides are so divided. >> government, yes. >> what happened today appears they have removed barriers where there weren't any protesters. i think there was understandable rustration last week for chase roads blocked off for no apparent reason. i think the police are certainly being prague mat nick what they're trying to do. >> they are. >> that's going to ease the pressure on some of these s.m.e.'s. >> is it a bank opportunity in hong kong then? >> i still don't think this is the issue for markets. i think it's much more what's going on with the chinese economy trying to get some idea of what's going on. are we worried about growth in the u.s. causing them to increase interest rates or worried about it disappointing japan or disappointing europe?

i think the markets are just generally confused and when that happens, volatility will rise and you will get a risk offer then. as we were talking earlier today, i'm bullish on the outlook for earnings next year in asia. like these types of events in terms of giving an opportunity to buy stock. i'm certainly in that camp, we may be getting more of a correction from this level. >> which one would you put more weight on? i mean in terms of giving advice to your clients, is it obviously at fed has to react to wh happens outside other central banks. which one is it? japan, europe? china? >> there's always the background europe is getting worse, the situation. nd that's affecting sentiment. germany, look at the p.m.i. and even now, wouldn't you say here adrian? >> this is why, european equities for dollar-base investors are down 10% to date.

i am almost tempted to say these are the issues that drive markets lower but they're not the fundamentals to focus on and i think the policy environment in asia is much more flexible than people are giving it credit for. and what we will see as inflation comes down then central bankers and ministers of finance can decide, let's be a little more pro growth. we think it will be quite good for margins. and so i think fundamentals are actual limb proving as we look into 2015. and if we have these global worries that bring markets down, let's take advantage of those. >> now, of course, all of this coming at time when we're about to see the link-up between hong kong and shanghai exchanges. protests affecting that.s0 how do you think this market volatility affects that? >> i don't think protests are affecting that. this is an incredibly pragmatic idea from the shanghai and hong kong stock exchange. it's all part of this gradual evolution of the chinese

financial market. >> the volumety -- volatility in itself. >> i suppose having volatility around that isn't too big an issue. it will generate more reasons to actually use these trading mechanisms. i don't think that's the problem. we're hoping that we will get some announcement today because remember the hong kong stock exchange said they will give us two weeks' notice and they're going to start it on a monday. >> today, was it not? >> the original. >> they just said it will start on a monday in october. but if we don't get an announcement today, you wouldn't get your two weeks lead time. i think the market will be sensitive to that, will we get a disappointing news from the hong kong stock exchange. that said, it's not like the market has been running up, discounting this is good news item. >> the stock could also affect other cities, there's been talk about that as well. how does that impact?

>> we would very much like the shenzhen included in this. that's why there's quite a few interesting growth tech companies listed. does it take away the image from hong kong, all that's going on behind the scenes. shanghai and shenzhen more of an international reputation as financial center. is it healthy, damaging? >> i think what this is is showing how shanghai and shenzhen actually need hong kong. and so hong kong provides this opportunity to bridge through capital controls in china. though it looks like a win-win situation for all of the exchanges. >> adrian, great to have you on the program as ever. from jpmorgan. up next -- taking cycling to two depths. adding variety to the daily commute.

>> if you're lucky enough to live and work by the water, there's a new way of enjoying the commute and keeping fit at the same time. forget about -- well, normal biking. think about waterbiking. >> my name is judah schiller and i'm founder and c.e.o. of schiller sports. and the crazy guy who made a waterbike. i was talking to a friend of mine who lives in oakland, avid cyclist. i asked him if he ever rode a bike from the east bay to san francisco. and his answer was no, you can't. it's either take the bart or ride the ferry with your bike, which isn't exactly biking. so in that moment the idea hit me surely someone in the world had found a way to put a bike on

the water and i got obsessed with the idea. you can't do this in a kayak. the beautiful part about the schiller x-1 is that there's no learning curve. you get on the bike and immediately you realize you're sitting on a bike saddle and there are handlebars just like the bike i have been biking since i was 6 years old. this uses twin props that are controlled at the handlebars so it really eliminates the ned for a rudder. the average person should be able to do five to six knots per hour on the water, which is about seven to eight miles per hour. the one thing you will never see riding a bike on a mountain or down the road is a sea lion or dolphin. and i found sea lions to be very curious about the bike. i have been surrounded by eight or ten of them popping their heads up. >> they like that. >> yeah. for me it's the delight and smiles that people have on their faces when they see this crazy uy on a waterbike flying past.

>> i would like to try that. before we go, east meets west, gain in shanghai. hitting the streets for the weekend, proving very

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