imports and exports surging in the united states. and location and surging has never been truer. we have a special report from perth. >> coming up this hour, mixed messages from greece. one minister says the money's gone and creditors won't get paid next week. his poss insists commitment will be honored. short circuit. the chairman who bet against his own company before the shares crash. we're going to look at the goings on. plus gains an gadgets galor. we're in asia's first ever consumer electronic show all this in "asia edge." >> asia stocks pretty much on the green today. we sthaw lying by shanghai up about 2% right now. and about .7%. we got that coming out of china last week. so it is fueling speculation the

government going to snep to do some escalated measures to stimulate the economy. last week 8% growth in the shanghai composite. those gains up to 10%. let's do a little bit of a microscope here. we saw in the u.s. on friday there they're ending things in the red despite that we saw those record highs on thursday. the shanghai composite year to date surging. and we have see the any kay 22 as well. it has been seven straight days of gains. year to day about 17%. 20,407. that's the 15-year high. back to you guys. rishaad: surging exports to the u.s., a trade deficit and the news providing some evidence that the economy is continuing to recover after last year's recession. willie, on the economy is there

any real grounds for optimism? >> well, yes. happy birthday buda from japan. this is some of the best news we've had in a few months. you know, there are caveats gallonor. -- galor. the u.s. is recovering certainly that's good news for japan thsm's certainly the back grop that we're moving into. there are a lot of head winds that are affecting the u.s. economy. sales are up last week and are still affecting consumer spending. big exporters which are shipping more and more to the u.s. and even in china they're not sharing those spoils with workers just yet the kind of wage increases that we've seen in japan have been quite disappointing. you weaken the end. you give companies bigger profits. the first half of that matrix is working pretty well. the second half is not working

out yet. there's a lot of questions they send the matters to the broader economy. >> sit like perhaps your time will return to surplus perhaps in the last 1 years. how does it feel on the streets of japan there as well? >> well, that's an interesting question. the first part of your question, yeah i think we probably will return to a trade surplus which is a bit odd because doesn't that mean the yen will have to rise. you look at the d.o.j. policies the thing about the buzz on the street there is a little more a by. but most of the optimism is external. when i travel outside this country and talk to bankers and economists there's a lot more excitement about abimomics. a lot of investors are thinking

when it is going to work for me? there are a lot of economic and security looking forward. so people here are save mrg and spending less. that's a lot of the problem. there's a lot of it missing because the prime minister is saying and doing some of the right things but here in japan there is a lot of skeptism a lot of concern. opinion polls do show the extent where there is this dichotomy. wages are not rising. rishaad: we were talking about abinomics being hollow. does that still resonate with you? >> it does unfortunately because abinomics has three arrows monetarily policies and monetarily policy. the fiscal policy went to the ground because we raised taxes.

deregulation is reforming the labor market. it's making the economy for innovative. we haven't seen any of that just yet. we've seen steps to improve the corporate government but even those steps are watered down. the third arrow, the most important bit if you will, thatcher nomics and reagan nomics we haven't seen that just yet. we're seeing companies doing what toyota does. and even sony got profitable because the weak yen but the average japanese is not benefits from abinomics the way you would hope. rishaad: thank you very much. >> another page turned and the senior minister says there's no money. next month's payments to creditors won't go ahead. the prime minister insists athens will honor its

commitment. sheri has the latest. to say that there is mixed messages would be an understatement. there are way tam characters in this greek drama. >> it just illustrates the complicated situation in greece. the prime minister saying that greece couldn't and wouldn't be able to pay the i.m.s. in june without a deal with creditors. the -- he does give you a glimpse of the rather dire situation in greece that they struggle to break the impasse in order to able to receive the bailout funds which they haven't gotten since august. this is also the most explicit remark about a likelihoods. the greeks won't be defaulting monetarily. we know that the central economy has rejected a proposal from a hard left, the hard liner who

wanted to actually see greece defaulting on its lones on the i.m.s. lones. they wanted to miss the payments. they will try to make those payments. the greek government of course has about $330 million to pay to the i.m.s. next week. all in all in june it has more than $1.7 million due to the i.m.s. and many more deadlines coming up in july and august. >> what are the prospects of deal in the days ahead? >> right now it looks a bit tricky the german chance lorks the french president they have made it clear to the greek that they have until the end of this month to reach an agreement on the aid program which would include economic policy changes. he said it's up to the creditors because the greeks have met them 3/3 of the way. still reaching a deal looks

challenging. the german chancellor said there's not much wiggle room as they are committed to policy changes in a deal back in february. some members of the syriza party as we saw earlier backing down from a loan. >> thanks so much for that. rishaad: now the australia golden nickel producer independence group has been sold for about $3.8 billion in stock. they are the second largest development of nickel. independence stock is down about 8%. the regulators are keeping their feet on the ground. authorities there say they're going to take a tougher line on market manipulation by marketing information disclosure and look

at abnormal trading activity. they have exceeded triple digits since the beginning of year. the value of the economy would fall last week. 5.8% to 7.7%. that was of the issue. the share capital has had. hanergy plunge and the stock was suspended. there's a new hurd until the way of indian coal minor. he locked himself in his office. what is actually going on here precisely? >> well, rish you can call ate management tussle in amir sombodo. he's refusing to leave his

position. he's digging his heels. has locked himself in burel in jakarta on the 15th floor an has mobilized more than 100 guards to i insure he's not effected. in the meantime he takes control of berau i.t. systems along with the bankingings in. -- banksing -- bankings. bureau has submitted a restructure plan to gain control of the company. as of now nothing were not closed to any resolution. rish? rishaad: what now? how do you get to berau? how do you sort this mess out? what are people telling you. >> asia resource says it will

remove somodo. it's taking steps for a star that's begun court proceedings against him. the main claim are various agreements which sombodo made. injunctions are restraining sombodo. not surprising despite all the efforts, moody's the ratings agency is concerned. the situation is complicated. so it's downgrade berau with a negative outlook. the shares have been suspended at the beginning of the month. it's been action by the stock exchange in indonesia. they said it didn't know who was responsible for the company. imagine that, rish. >> let's go to singapore. >> coming up later in the show. we're going to be live for the

latest and the greatest. our report from the consumer electronic show. we're going to be checking in on the u.s. economy with our next guests to believe a presemp active rate rise could be on the card.

>> contained the remains of hundreds of muslims from myanmar. this month's police found dozens more body at an abandoned trafficking camp. southeast asia struggling with immigration. many took to wooden boats with thousands stranded at sea. torrential storms in the weekend in southern and central china have broke an 40-year record in rainfall for may.

57 people have died since the bad weather arrived last week mainly in car crashes. a report of a million others have sought shelter. some dams could collapse. the forecast is for more storms this week. thousands of people have fled villages along the river in northwest nepal after a landslide and cause flash floods. and authorities fear that the water could breakthrough at any time. nepal has been devastated with two powerful earthquakes along with dozens of aftershocks. >> the first quarter slowdown in the u.s. the feds say it's still on course to raise the rate this year. for more on the asian market outlook we are joined by our correspondent, an investment strategist with capital. >> greece, we know that this is really driving markets today. but of course, the fed as well -- we'll save that for later.

but i want to tarkt on the fed. because janet yellin is looking at it. and inflation are looking up. all in all things are looking up for a september rate raise. >> the core has risen by 2.6% for the past three months which is a very, very strong figure. it's a four-year high. on top of which of course, you do have some tighting of the labor markets. because the terrible educational system continues heading south. and so i'm of the view that the third point would be that the line defects of the policy in the u.s. are going to start hitting and that's what dr. yell in pointed out that there are many lag policies. just because you change the

policy doesn't mean that it changes. >> policy being in affect of education. no doubt there are a lot of challenges when it comes to public education in the united states. believe me, i've reported from some of those inner city schools. >> and i'm a product of it. >> but at the end of the day it's when companies let's do more with less because of the global financial crisis and extending the workforce that they have but giving them much more to do. at some point it's got to give. >> i hope so. but the simple fact is that the americans are not training people vocationally. and that's something they went through eugene, oregon but just a very, very bazically poor system of normal public education. forget the harvards and the yails and -- yales and a princeton, not a bad cool but

certainly not of the standard of asia or europe. i can't say. but yes, you keep on -- they keep on coming because the multinationals are diversing abroad more and more. but the key culprit has to be the government which keeps on putting more and more and more regulations particularly in europe and also the u.s. making it not worth people's while to keep on hiring because they're going to keep on paying huge taxes and are basically being punished for the effort. look at all these factory rules coming in. that's going to hurt the factories just from the regulatory angle also. >> all right. so what do you think needs to happen for fear of getting into policy. let's talk about the economic recovery that is the u.s. right now we are seeing green shoots turning into a bugs of spring. do you think third quarter,

fourth quarter g.d.p. is going to reflect that? >> it will be better than the fourth quarter. it was meyered by both those strikes in the u.s. so it's kind of a slam dunk. the two, three and four will be in the region of 2.5%. i'm of the view that we have to get used to secular growth stagnation which goes toe say that we're not going -- which goes to say that we're not going to see those inflation. a lot of the inflation is not demand pull. it's cost push. it's costs rising. we get back to the argument cost rising commodity prices rising, yes, not falling. yet some of those are rising rather strongly. and that's going to be slowing growth. >> you're saying it's still at an age of falling oil prices? >> absolutely.

the oil prices are up 50%. >> but a year ago they were much higher. so relatively speaking -- we are still until an age of low oil prices. >> we're still in the age of low oil prices. we're still in the age of low gold prices but take some of the metals like iron-ore that's been going up strongly. once china does rekind the economy the commodity markets will go much much more strongly on the metal side and certainly on the soft side with el nino coming in and la nina coming back it seems to me it's of especially easy rubber prices and especially the prices will take another rise up. >> ok. let's see what con trarne views you can give us on greece appear -- and japan. stick with us. thanks enzio. >> find out why the australia's market is turning into a post

code lottery.

rishaad: this is "asia edge." sydney's red-hot property market is a different story as the end of the long mining boom is

dragging house prices down. ryan reports from perth. >> it's too bad this townhouse is not in sydney. if it was it would have most likely sold by now and for a princely summit then. it is in western australia. what do you think of this place? >> it's one of the best areas of perth. at the peak of the growth it would be worth $1.5 million. today under a million. >> it hasn't attracted a sidge offer. property prices across australia rose 6.8% in the year to december in sydney the growth was a staggering 12.2. but in perth it was just 1.2% and trending down. >> they're seeing a boom in sydney and probably a downturn in perth. they are reacting on the down side in perth.

interesting thing is that we probably needed straight drops in perth which is what we're getting probably in sydney as the interest rate rises. australia's most isolated city changes quickly and more dramatically. perth is at the front here in front of a mining boom not seen in australia since the 1850's gold rush. at its peak real estate sored but the prices have fallen. new mines are not being built and real estate is now a tough sell. >> hay street in downtown perth was once the home of many western australia's small cap mining companies. today they announced a doubling of the deficit as tax revenues decline. >> the 2016 budget has been declared. >> the last echos of the

resources boom in perth can still be heard where a gleaming new $800 million stadium. the big earning big spending days are almost done as the boom fades into something unfamiliar, maybe it's called normality. paul allen, bloomberg, perth, western australia. rishaad: australianer quities doing well today. as business gets urn the way. trade data which is not a very positive morning session.

♪ >> the stop stories this hour. greece says its creditors must compromise. it does not have the money to pay other creditors next week. however the prime minister said greece will honor its commitment. australian gold and nickel producer independence group has agreed to pay syrius resources for $4 billion.

it will give control of us a trailees second undeveloped nickel. independence stock is down more than 10%. japan's trade balance went back into deficit in april but not as badly as forecast. ex-pors to asia and the united states surge. it was a $40 million deficit. in march, japan registered its first trade surplus since 2012. >> april ex-pors rose more than analyst forecast. but japan still has some way to go. >> the way japan is falling short is really the inflation numbers. it's up by 2%. but at this juncture the coin inflation numbers rung at about 0.2%. if you exclude the sales tax

hike impact. japan is falling short. you can see that down the road because of the debt. the o.j.k. can see it a bit further. but japan is one of the markets in the global arena. rishaad: he thinks their turnaround strategy is paying off. >> we do believe that japan is starting to show signs of life. they are feeling deflation but growth is definitely picking up. we do believe there's an upside in the japanese market probably relative to another market. when you look at the japanese bonds there's an interesting statistic that they are trading it in the lowest level of japanese government bons in the last 20 years. >> by japan? >> by japan.

>> there's no end in sie -- sight in easing if the jerram bounce in inflation. >> you expect to see wages rising. you expect to see wages rising over the next 12 to six months. that's the core of their strategy. but you will get close to the inflation target within a year, year and a half and they won't need to do any policy easing. >> and that was the word on japan from asia. >> hello, let's go to some markets. send it over to yvonne. >> japaneseer quities leading the way this monday morning. let's talk about some the marks.

yamada up close to 2%. after the any kay >>ing that they're going to -- after the any kay reporting that they're going to cut down most of these stores. the power company regulators of proven construction plant of the sendai two reactors. eisai, the pharmaceutical company their drug back by the e.m.a. it's a drug for adolescent especial lep -- epilepsy. the nick ay coming back from that lunch break. we're continuing that seventh straight day of gains here.

up in the 20,000 market as we try to hit that number. er quity is up .7%. we're seeing shares climb. for today the weaker yen. talk about the reaction of yellin is set on court despite the weak that we saw in the first quarter. but we saw the inflation numbers being up in estimates in the u.s. the weaker yen could be helping the japaneseer quities at 14 402 right now. let's go back right now. reporting says that they're going to start the production of the a-9 chips according to resources telling reports and apple set to increase the 59-chips. according to reports may give all orders of next generation processes the a-10.

air china up about 1%. pacific insurance, some news on friday after trading here saying that the vice chairman has quit and left the board. his name is yan schenn hai. he was quitting "due to other business commitments." shares up 2% right now. rishaad: the chairman of hanergy. -- made a bet against his economy. this happened on monday. 47% decline took place on wednesday the. last month he bought 24.6 million on hanergy.

the shares issued from 5.18%. a few days later the stock falls. so far many questions right now. but also on monday last week many -- rishaad: questions about how the company has -- managed to keep it going. where the revenue has been coming to make the stock increase sod much to raise the value of the company so much and more questions raised about the increasing of the short position where other sellers were already closing -- closing out their holdings and the company all along has denied that there's been any sort of manipulation

and also said that there hasn't been any suggestion of anything going on. rishaad: with the energy there's a lot of partnerships have these been jeopardized right now? >> ikea and this company work together for solar panels. hanergy is working with ikea to roll it out. it has 35 stores across the u.k. switzerland and the netherlands. ikea has told them that they don't know if they're going to continue with this partnership. the head of sustainbility at ikea is saying no decision has been made about whether they will continue to partner with handergy. >> ros lynch with us.

>> in other news. -- u.s. judge rules that the court has jurisdiction over the case allowing steven jacobs to continue his claim saying he was wrongfully fire in 2010. sheldon adelson required him to collect compromising information. jacobs was fired as sands china c.e.o. for working on unauthorized deal. japan's nick kay -- nikkae and the sal nation plant in qatar. the sal nation deal would see mitsubishi and tepco taking a 30% state. construction of this facility is

to begin in 2010. they will invest over $110 million. the sheng -- the report says ferrero isn't planning to reduce its activities at home. rishaad: the consumer electronic show kick off its first event in asia. and it's also a global showcase for those up and coming chinese ones too. the event organizers forecasting that the chinese market will reach $155 billion this year. steven engel takes us now for a spin. steven: this car is the major theme of this first c.e.s..

this show in shanghai will get about 20,000 participants. unlike my ford >> i chule driving capabilities the market potential in china is huge. it simply will not let me crash this thing. in new category gadgets products that were not even in the market a year ago will see a doubling of sales. like aerial cram ra drones. 3-d printing. one way for china to mass produce cars and two wearing de vices television and video devies. this is the only time in china where i can really stick in someone's face like this. hi zach. how you doing? and there's poor old twitter. they are blocked in china relegated to the back of the hall. they have an inbox and they have mail. you better be care nfl opening those attachments. steven engel, bloomberg news at

the c.e.s. in asia. >> steve get always the fun jobs, doesn't he. you're watching "asia edge." after this short break, stay with us.

rishaad: welcome back to "asian edge." >> britain's labor party has opposition going into the election. interim leader harriet harmon told bbc that an in-out vote is almost likely to happen and labor will be unlikely to stop it. the u.k. is better off inside she says and vote on the referendum on that basis. rishaad: the iraqi army has no will to fight when ramadi fell earlier this month. ashton carter saying that iraqis vast number the militants yet

they simply withdraw. anbar province being attacked from the air. and the strategy is effective. nothing can substitute for an army fighting on the ground. >> there is growing public unhappiness at japan's plant to beef up its military. and a tokyo survey over the weekend found opposition has rins three months to 55% since april while support dropped four points to 25%. the prime minister wants to allow japanese forces to play a wider role abroad and defend its allies. the session beyond june 24th to drive the legislation through. rishaad: i'm joined by sheri ross. let's start with greece.

you would say that the g.r. is good riddance? >> yes, because it's the greeks are playing one huge game of chicken and they know that they will not be asked to leave the euro. they will not be asked to leave the euro for geopolitical rens. there's this smith that if they were to leave it would fall in the hands of russia. so we've got to keep greece in at all costs. they are willing to play in game of chicken. it's going to be an and-and which is default and stay in the euro. >> why not stay in it right now? alexis said wait a minute, we have enough money. >> because the greeks never intended to repay. already le creesha said we were of greek sparing gifts oosm.

i'm very critical. you see the behavior of the greeks. this prime minister doesn't even dress properly when he sees his bank crews. he doesn't even show up for dinner when the bankers are showing up. this is sort of juvenile behavior in my books for someone who serious about repaying debts. >> they need to push for having a more hard line stance. it seems that many e.u. prime minister have some kind of agreement. >> if the i.m.s. were to give in and every other country could say by the way if you gave in with greece then give in with us too. in other words it's the precedent part. they're spoiled little brat who keeps being in the fold because the minorities are willing to

rule the majority greece. look at what they started. >> but whatever happens in greece you're still very favorable towards europe. >> not to the euro. european stocks are definite -- yes, absolutely because precisely because they're not reforming in europe. it's a welfare museum. they will continue pumping money into the system. it can only go into stocks. >> when you talk about -- i'm going to move it because we can talk about europe and have your controversial cause -- what about your controversial thoughts when it comes to japan? what is this thing about inflation? why does anybody think that inflation will lead to growth? >> absolutely. i don't believe growth and inflation have a lieutenant to do with one another especially in this era of rising technology productivity. so you can't in the case of

japan in particular when they say that private con surpgs is pick up and that pushes growth. if it were then why aren't inventories rising? >> yeah, that's an interesting point. inventories rising. does that mean they have so much to work through in the second quarter growth could be affected? >> you picked it up. they're obviously overproducing. there's an excess supply of goods, money, and that means that the economy will continue rattling off. they said we have too much money. where are we going to put it? we're going to put it in stocks. it has to be a mutual rattling on. it will do what china will do 20 years down the road which it will implode off the back of its domestic debt. it wants to increase the taxes,

spending that's the fiscal policy. the fiscal policies don't work in a highly drillized economy because none of us would want to build a road and a bridge. and that's what it's about basically. >> well, it is also about the trickle down economics, if you will. it's the concept of if you create the demand on the ground that it will be flood with people who are seeking jobs because at the end of the day. everybody needs two things food and shelter. >> but the company also needs profits. if they can't make the profits unsure and they're not going to informs and that means you're absolutely right that they're going to be no more jobs created. and that's my concern with japan. with the aging society it's just going to be this giant chucking sound. >> will you tell people put your money in japanese stocks for the

time being? >> absolutely. absolutely. because it's one of these same situations where just in the welfare museum you have all this excess money, it has to go into assets. the only name of the game in japan has to be stocks. >> the tax hike it was a ridiculous thing, wasn't it? >> terrible. >> why is there so much pressure for them to have another one? >> because their fiss -- fiscal -- >> it's junk. >> and that's why the i.n.f. was saying they have to keep reflating monetarily and they have to get their fiscal house in order. >> they do. debt ratio to g.d.p. was 1500%. >> at least. >> but at least china has money in the cofers. >> japan has a lot of money but it has less money to increase its defense spending. >> and they have the whole

treasuries. >> and that have fabulous companies operating well across. >> it's just doom and gloom there. >> we are still seeing household spending gaining for a third consecutive month or so. i mean, things seem to be looking up slightly for japan. also exports came in better than expected today. >> still not enough. because i.m.f. was saying they didn't think japan was doing enough. >> yeah, and the rising -- the improved consumer -- well, i'm not sure about the consumer sentiment certainly not on the job creation front, i done think a lieutenant is happening -- a lieutenant is happening there. >> hay they -- they have a historical gain. >> it's a very small.

just with the oil price cut where i was also wrong. they readdressing the balance sheets and that's what we're going to see in japan with the consumer. >> always great to see you. enzio. a bit contarian view. >> hollywood expecting a record summer at the box office. >> the films on the way. we take a sneak peek when "asia edge" returns.

>> memorial day weekend in the u.s. marking the traditional start of the summer box office season in north america. >> right. there was a big movie ing including disney's "tomorrowland." we have a run through the listings. >> that's right. but i think it will be in hong kong and overseas. because we will be disappointed

what happened in the u.s. >> $151 million. >> we are being a bit negative. $151 million over three days a long weekend. this is summer. this is when everyone's out. >> how much did it cost the studio to make that "tomorrowland" film. >> think you're looking at $380 million. >> it's all about momentum. if you're not going to get blockbuster return and people start going, that's not so great. >> there are not many more to go. >> it still didn't -- shouldn't wow anyone. people want sequels now. they want things that they are comfortable. the new content is not doing so well. although "tomorrow land" does use of the theme park to its

service. >> honestly, it's a little confusing. "tomorrowland" evokes that disney land theme park but it's completely nothing of the sort. this is sci-fi distop irv c action -- distopic action film. george clooney meets the daughter of an engineer. and they find his pin and this pin leads him to another world. but i don't know if people are completely buying i. >> it's full of sequels. prequels. >> sequels perhaps a prequel. but sequels are the way to go. sequels seems to be the winning formula for hollywood at the moment. >> ok. good stuff. see you at the movie guys. >> a date for your diary. tomorrow marks one year since romodi took pow tpwher india. >> we have a special show and going over the hits and misses of the past show.

we have this analyst doing out of mumbai. so come

>> the following is a paid presentation for p90x3 brought to you by beachbody. >> do you wonder what it would be like to be in amazing shape? do you look in the mirror and wish you had a sixpack? you want a body that performs like this and looks like this at least once in your life. now you can get that body.