rishaad: i'm rishaad salamat and this is "trending business." here's a look at what we are watching. with china forging its answer to general electric, train make her are combining to make the world's second largest industrial company. crrc. it targets emerging markets in africa, latin america, and asia. japan bounces back.

the strongest economic growth since 2013. the prime minister's increased pushure on japan aims to record profits into investment at home. sporting history was made over the weekend, with a american pharoah becoming the first verse to win the triple crown in more than 40 years. novak djokovic lost the final to stan wawrinka in paris. let us know what you think of our top stories. do follow me on twitter. markets in hong kong and china getting underway in under half an hour. singapore, thai way, one of them for just coming -- taipei, kuala lumpur just coming online. angie: asian stocks holding at a low average. the nikkei not one of those decliners.

it is up 0.2%. datat coming in much stronger than expected. annualized growth of 3.9%. that is up from preliminary data that put it at 2.4%. we are seeing stocks being boosted by exporters. we also had japan's current account balance for april lower than estimates, half the level of march. it is still a surplus for the 10th consecutive month. is seeing some of the biggest moves this morning in japan. the rest of asia seeing some downward pressure. the kospi down now for the second consecutive day, down 0.3%. the declines are being led by telecoms and consumer goods. we have that bok rate decision coming later this week. another rate decision in new zealand. new zealand stocks up for the third consecutive day, up 0.2%.

let me get to the japanese yen. that has seen some interesting moves lately. it is currently trading near its weakest level against the dollar in years, perhaps 2002, 2001. the yen at 125.57. drastically on friday after that u.s. jobs report. we are seeing it up trending a little bit. back to you. the world's second-largest industrial company will begin trading today in shunk on and shanghai. crrc was forged from the merger of two state railroad equipment makers. it is being called china's answer to general electric. >> it is an industrial giant, second only to ge. $117 billion. the merger those companies

begins trading today in hong kong and shanghai. this company expected to give some of the major players a big run for their money. china now dwarfing siemens of germany and holcim of france with this rail giant that will be bidding on projects around the world. in boston, they outbid canada for a subway contract to fix the subway system there. almost 50% cheaper. that is what these industrial giants are watching closely. china has been seeking to put its rail blueprint for the future in markets around the world. offering theremier final sales pitch in many of these deals. expectompetitors now this chinese that he met to get to getgger -- behemoth even bigger. it is the world's largest high-speed rail network. last year alone, it participated in 348 overseas rail projects

and its exports of railroad equipment were more than $3 billion. japan remains a major competitor. when we break this down into the nuts and bolts, there is still a major market for the high-value equipment made outside of china. those in the market watching this very closely. china increasing its clout and its bargaining ability. they are taking that clout to markets all around the world. north america, europe, the middle east, as well as africa. shares begin trading today in hong kong and shanghai. the new name, crrc. rishaad: thanks. we want your opinion. tweet us. htc having a rough time, plunging the most since 2012. the company slashed its sales forecast by as much as a third.

it is down to falling demand in china. tim joins us now from taipei. this cut seems pretty sudden. what is going on here? just a few days before, the chairwoman and ceo spoke to investors at their annual meeting, apologizing for the poor performance. just four days later, she comes out and disappoints them with a late-night surprise, saying they are going to cut second-quarter sales estimates by a third. also a 2.9 billion right off. the blamed sales at high-end of the market, and they said china was weaker. out duringhip came the quarter. it is not doing very well. this one off right off is a big issue as well. it is double the total net income for last year. sales this year are going to be

less than last year. it is going to be hard to make net income for this year at all. it will likely be a loss for 2015. the big issue is that htc is no longer at the top of the heat as they used to be. they are facing a lot of competition from xiaomi, lenovo, samsung. iphone is always giving them trouble. they really need to turn it around. this massive cut in sales during of these quarter, all are very bad signs for htc. investors are looking at a much -- looking at it much more closely. it is going to be very hard for htc to turn it around from here. rishaad: thanks for that, tim. htc down nearly 10%. let's have a look at the other stories we are watching for you today. here's david. david: i will talk about what will likely be the biggest

market story, the inclusion of a-shares. mscitory is basically that will be announcing its decision. this will determine whether billions of dollars more will be flowing into the chinese stock market. they will need to reallocate more towards china. have a look at this. mscie the announcement, notes the initial inclusion may attract $2 billion of funds. will bey, a-shares making up less than 1%. fairly limited as far as the short-term impact is concerned. have a look at this. one of the heaviest weighted on the msci. mostly h-shares if you talk about the chinese stocks. if they do announce a-shares , adjustincluded

portfolios. msci starts another 12-month review. this is hinged on access to the chinese market, which marked a major step in integrating chinese stocks into the world of financial markets. let's talk about chow tai fook. the world's largest jewelry chain. they have stores on every street corner in the shopping district. a drop in profits, just over $700 million. that is from close to $940 million the year before. take a look at shares. we are talking about combined sales from hong kong down by about a third. china down to 16%. they are basically shopping elsewhere. they are still looking to expand in china with 160 new points of sale. have a look at this.

finally, let's talk about google. they are planning to disclose more information on a regular basis. they plan on issuing monthly reports, following two accidents within a week. the reports will include a summary of project activity. any incidents involving cars are worth noting. since the project started, there have been 13 accidents. it brings up a valid point of concern. who is ultimately responsible, should these things happen on public streets? google admits it is still learning. rish, back to you. rishaad: another story we are following, opec seems to have found the key to a happy union. that is on bloomberg.com. coming up later on the show, we are looking at important economic data coming up through the week, finding out what to expect. after a short break, japan post

gdp numbers. we are going to break those down. this is "trending business." ♪

the japanese economy grew faster than was first thought. the stock exchange did its best since 2013. our guest explains how equities build on encouraging themes for shareholders. he is with me now. thank you for coming in. talk a little bit about this number, 3.9%. 2.8% was the actual estimate. why getting it so wrong? >> the number is a good number. it was announced -- [indiscernible] it is positive for the market in general. when i look at macroeconomics in

japan, i think what is important is that the boj is sticking to its inflation target of 2%. even though the timeframe is not there, there is this strong weakness. we almost have deflation right now. boj is going to serve as a backstop for the economy. we expect by the end of the year to see some money being injected. rishaad: on top of what they've announced already? >> i think so. rishaad: when we look at it, we see what is happening in japan. to be done by corporate japan in terms of investing in the domestic market. that is something that shinzo abe is trying to encourage. how important is it? these guys are sitting on a lot of money. >> it is very important. the reason we like japan is not because of macro so much. we really like it because of earnings growth. we saw very strong earnings

growth for the last quarter. only is one of the countries with positive earnings revisions. as well, we have this focus on shareholder return. it is very positive. we really like these companies that are focusing on increasing their r.o.e. rishaad: on the backdrop of a yen which continues to depreciate, how long can that go on for? still have some time here before that. we are starting to see the exporters benefit. i heard some comments from the bank of japan, saying that the yen is not so un-competitive, so it is ok here. again, shareholder return is something very important. the market is not so much focusing on abe's phase. they are looking at what is going on. rishaad: indeed, him trying to

shake up the board rooms by having committees which represent external elements in-house. >> yes, definitely. rishaad: take a look at china as well. we've got the trait number coming through. how important is that? it is not only about what is happening internally, but the world economy. >> definitely. jpmorgan had big concerns last week in beijing, with more than 200 companies represented. almost 2000 attended. one of my takeaways was that there is not so much focus on the downside, nonperforming loans, housing market, aging population, and so on. there is more focus on earnings growth coming from the new china. seeing,rms that we are and also the opening of china to regional economies. involvement of china in

developing the regional markets. that is very positive. rishaad: when you talk about earnings growth in the new china, i don't think that is really responsible for this equity rally we've seen. >> the rally that we've seen has been mainly driven by retail. there is a downside as well. it rose very quickly. there's a risk that it could go very fast on the downside as well. this is where we look at government actions. i believe the government in inna is seeing this rally the equity market as a policy tool to help the transition. there is going to be this backstop. rishaad: how important is it that the msci include some of these a-shares in its emerging markets index? >> i think it is not a question of if.

it is a question of when. the markets will probably react very positively if tomorrow the answer is yes. that would probably be big. personally, i don't see the need to add fire at the moment. it would probably be bad to see the rally going too fast and too high. overall, it is going to happen one day. hopefully, we see this rally going slow and steady. rishaad: thank you. angie: some stories making headlines around the world now. turkish voters have rejected the president's push for greater power, with the ruling party set to lose its majority after national elections. the results raise the possibility of a coalition government. the main kurdish party is set to win seats for the first time. president erdogan has wanted

constitutional change to extend his term and concentrate more power in his office. the turkish lira fell to a record low on the prospects of a hung parliament. malaysian officials say 18 people are confirmed dead after an earthquake hit the country's highest peak on friday. two bodies are yet to be recovered. eight of the victims were from singapore, including six primary school children and one of their teachers. more than 130 people were trapped on the mountain. many who had to make their own way down have criticized rescue efforts. a fifth person in south korea has died of the mers virus. the government announced tougher measures to stem the spread of the disease. 60 people in south korea have been infected with middle east repertory system since last month. more than 2000 people are in isolation.

south korea's acting prime minister urged people not to panic. up next, g7 leaders making their feelings clear about greece and who needs to sort out the crisis. the details when "trending business" returns. ♪

you are watching

"trending business." a internal investigationn into toshiba has found no irregularities. the stock plunged last month after the company withdrew its earnings forecast. regulators have given the company an extension to refile financial statements. have a look at what is going on in tokyo, in a mildly advancing market. up by about 1%. qatar stocks slumped for a third day as investors speculate over whether the country will retain the right to host the 2022 world cup. authorities are investigating whether the bidding process for the 2018 and 2022 world cups were corrupt. qatar is spending billions on infrastructure in the lead up to the event. india has more room to cut interest rates, and according to ubs, a lot more room. kl couldral ban

resort to the biggest cuts in years. anygovernor there linking future decision to how weak the monsoon season is. ubs says the government's policies will limit any rise in prices. rbi has already reduced rates three times this year. it may slash another 70 basis points by march 2016. greece facing a week of urgent diplomacy to free up bailout aid and ever a potential default. talks resume with prime minister alexis tsipras facing g7 leaders demanding structural reforms and a return to growth. yvonne man is with me now. how high was this on the g7 agenda? yvonne: pretty high. president barack obama made sure this was at the top of the agenda. it was unanimous in the room, saying that gray's needs to do something to over the risks of economic reverberations.

the summit which was hosted by german chancellor angela merkel, she even said we aren't quite there yet. all were in the opinion that a lot of work lies ahead. this after greek prime minister tsipras spoke to parliament on friday, saying despite the huge backward move we saw last week, we are closer to a deal than we ever have been. rishaad: he always -- yvonne: he always says that. he said the offer from creditors is "a bad negotiating trick." we did hear jean-claude juncker. here is what he had to say. >> i don't have a personal problem with alexis tsipras. he is my friend. friendship has to accept some minimal rules. yvonne: juncker says very blunt what could really happen. again, this intervention really putting pressure on both sides now. you talk about structural

reforms. the italian prime minister said it would be unthinkable. rishaad: thank you very much, yvonne man with the latest on greece. alexis tsipras talking in brussels later on today. coming up next, the world's second-biggest industrial company beginning trading in hong kong and shanghai. that is coming up after the break. crrc opens. that is when "trending business" continues. it is getting going on the hong kong and shanghai markets. we've got all the numbers coming your way right after this very short break. ♪ ♪

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rail is makinge a returning debut to hong kong. china's two biggest rainmakers. the world's second biggest industrial company has more than $117 billion. they will allow china to be more aggressively to oversee rail deals. plunging the most in three years in taipei. slashing sales. 35%. putting it down to week chinese

demand. release of smartphone failing to boost sales. japan's economy is showing signs of revival with the latest data. revised gdp numbers putting gdp up 3.9% for the year, way above the analyst estimates. the preliminary 2.4% number that we got as a result because of a stronger business pickup in investment. let's have a look at what is going on in hong kong and shanghai. they should be getting underway. >> we had that strong rally in chinese stocks last week. it is extending those gains. the shanghai composite is up for tens of 1%. it is now said to read $10 trillion. the handsome index is down for

the third consecutive day, 3/10 of a percent down, at the lowest level in nearly two months. the nikkei reversing earlier gains that we saw this morning. of a now down pretense present. we had earlier gains with exporters, was the weekend helping. we are seeing the yen strengthening slightly after that. better than expected gdp data out of japan as well as trade data this morning. some companies in japan have actually talked about an overly week yen hurting their business. fuji heavy being one of them. their president is saying that it is not helpful. we are hearing that higher costs related to the weekend have actually hurt profits. is reporting that the first quarter operating profit came in below the corporate target.

retail is up a tenths of 1%. we were expecting them to open more than 200 out let's in the philippines. hsbc, we are saying that phillips capital is interested in buying the turkish unit there. securities are expected to sell. tax, ii leave chinese want to get to see rrc because it is debuting in shanghai and hong kong today. it is the world's second-largest industrial company after de. it is worth more than $117 billion, coming from the merger. that is trading today under c as ours old ticker. - csr. rishaad: let's bring in our

reporter from beijing. tell us more about the rationale behind this merger. the purpose of this merger is to make sure that the chinese rail technology exports stay competitive. what we saw previously was two companies going to a bid. it was a race to the bottom. what the chinese authorities are saying is, let's stop that and let us improve our margins. we want to provide value for money. this is also about diplomacy. it is also about extending china's influence, is it not? >> yes it is. rail was one of 10 focus industries for china, a blueprint to ramp itself up to be a more industrialized nation.

what is happening is that rail for them along with other entries like aerospace, high technologies are also a way of them -- for them to project their pride. it is going to be how they project it to people in developing countries and also they are now targeting industrializing nations. rivals: how are the going to stay competitive, that is the key question? can compete with the chinese in terms of train bodies. but what they can compete in is signaling equipment and all of the component parts. the chinese are still not quite strong in. full railny is a company, but in terms of real

signaling and components, other companies still have a stronghold in that segment. , soompete in that margin for now, that is how they are going to compete. rishaad: thank you very much indeed. get this story and others on our mobile lab. -- cap. there is a new man in charge, new chief executive. reign is over. more on the man who is set to succeed him. it came out of left field. weeks after the juergen, they had signed off and participated in a new strategy. investors were not pleased with the new strategy.

pleased with the performance. they missed profit targets in stock underperformed. june 30. next may, juergen is out and roleing to hold the co-ceo is john christ. he comes from ubs. he was cfo there. he is 54 years old. a german-speaking britain. foras been widely praised leading them through one of their darkest hours in 2008. ubs has recorded record losses. he managed the situation well. to become -- until 2013. rishaad: the deutsche bank supervisory board. let's talk more about this shakeup. shares have not done well under jane's tenure. >> mr. jain spent decades with

as a fixed income expert and bill to that business. rishaad: he has been seen as being to investment bank oriented. >> the bank is facing big issues legal, regulatory requirements, stricter rules. sales don't lie. in the past three years, stock has gained under 2%. its peers in europe have outperformed them significantly. also see hsbc which is up over 60%. we know that hsbc has significant challenges. rishaad: thank you very much. u.s. election still more than a year away, but the candidates vying for the top job are already making their mark. it shows that image is important for any campaign including one

branding expert that we spoke with. who is hitting the right target and who is missing it. i wanted to find out what separates the good campaign logos from the bad ones. designer atner and this organization. seems like a fun place to work. you haveobably seen -- probably seen some of their designs. the library of congress and many others. in general, what makes an effective logo? >> it is meant to help people remember you. will beffective logo appropriate. simple, and memorable. >> let's talk about ted cruz. looking at topography first, there is a clear not to conditions when he talks about his strengths with the far right and the religious conservatives.

there is something extremely awkward about the cropping of that start. it is a crippled start. star.ppled what we look for is the magical moment where the image and the type are merged beautifully. italics, they were able to create negative space before the best between the letter a and the letter and. between the letter a and the letter and. >> marco rubio. what you think? going all lower case is pretty smart. he is saying that he is the leader of tomorrow. a young one. however, the shape of the united states, a vast country, has been shrunk to the size of a. on the i and it looks like a little red

whale. ag h.oice of the we have seen arrows, moving forward. fedex has a narrow. -- an arrow. it is very strategic. big hillary.had a now, it is just the h. it doesn't focus on her personality or her name. next, strong job data from the u.s. but will , thislia follow the u.s. week. when trending business returns after a short break. ♪

>> headlines around the world.

a ship blared warrants for three minutes as rescuers bowed in silence to honor more than 430 victims of the gang sea river capsizing. the number of people killed rose to 431 dead. 11 people are still missing. specialists have begun working on dna samples from relatives to identify the dead. 14 people survived including three pulled by divers from the overturned hull. a german navy ship has rescued more than 500 migrants in the and drop them to shore in italy. the precarious conditions not far from libya, the german navy managed to bring them all on board safely. they are getting medical checkups, food, and water. the italian coast guard says that 3.5 thousand -- 3500 immigrants were rescued over the weekend.

highly active since last week when officials raise the alert to its highest level. they have urged anyone living within seven kilometers of the greater to leave their home as a precaution. many nearby farmers say they cannot afford to stop working. it has arrested sporadically over the last three years. its annual market classification review will be conducted on tuesday. will it partially include china's asian. the markets in asia have opened up. expecting to announce further cuts involving more job losses at the investment bank. earlier this year, it was underperforming business because of it -- extreme solutions. it was cut to record lows, one

of three quarter percentage points. there are further expectations of further reductions. what should investors be looking out for elsewhere this week. tim, great to see you. back before weok look forward. job reports are going to be making up some of the agenda in the weeks to come. the impact this morning in asia is being felt through the treasury market. the big spike in treasury yields in the u.s. on friday are wearing that are weighing on some of the more risk sensitive markets in asia. indonesia, which

has a lot of foreign ownership of their government bonds and a lot of u.s. dollar bonds issued by -- we are seeing some pressure on the rupee. i'm expecting we will see some pressure on the stock market as well. i think that is where we will be seeing the impact of friday's number. rishaad: do you think the treasury had got it -- that in ahead of itself a little bit? tim: at least on the ing forecast. is 250.-end forecast at this point, we are eight basis points away. we did not expect it to get to 250 until the end of the year. it is a little bit of ahead of itself to us. confidence around all of these were cast is a little shaky given the uncertainty about the timing of the lift off and what the and resting level of the normal fed funds target rate is going to be. on theh conviction

absolute numbers. on our forecast, it is ahead of itself. bitaad: let's talk a little about china. we are having trade numbers that could be out any minute. tell us about what is going on internally but it will also tells a lot about what is happening in the global economy. tim: i think there will not be much of a surprise there. the message from the trade data inbally is that activity 2015 slowed, asia is not an outlier here. we have the numbers from korea. the june -- the may data from korea was dismal. i don't think china will break that jen -- that trend. from china are of 2% year-to-date from april. the big story in china's trade is the trade surplus. prices, in commodity and the contagion from weak

exports spreading to the has widenednding the trade surplus. it is on track to exceed a half $1 trillion this year. , that is be something what we are seeing across the asian export powerhouses. rishaad: we have inflation numbers. you do mention domestic spending. we have retail numbers out later this week. that should give us a bit of a snapshot. as to the strength of the consumer. tim: we will get the may activity data rolling in this week. hope fromt there was the pmi numbers that the easing that has taken place since last november's beginning to bear some fruit. we are starting to see some support for economic activity. and were hopeful signs expect that those will be

reinforced by the april activity data coming out this week. -- i don'tws is think we will get big upward revision numbers to the gdp which are about at 7%. the idea that china is going to slip into a pronounced slowdown in growth will fall substantially short of that target, about 7% target, i think is rapidly fading thanks to the stimulus. rishaad: let's look elsewhere. we have questions about a currency were taking place in this part of the work. i would say it is out of their hands to a certain extent. tim: they could join in if they wished. the authorities,

the bank of thailand, has really taken up the battle. the philippines really runs a disciplined policy. they don't tend to intervene a lot to push the currency one way or another. they smooth like all of the asian central banks do. their reserve accumulation indicates that they are not active in the foreign exchange market. i think that fact keeps some speculative capital at bay. reason, in our view, the peso is going to be one of the outperforming currencies in u.s.-dollarized strength environment when other agency currencies are appreciating. the philippines are an outlier and an outperform her. rishaad: great to see you tim. thank you very much. next, happily ever after. this photographer followed his girlfriend around the world. we will check in on what is trending on social media, right

after this break. ♪

horse racing history was made in new york over the weekend with american pharoah becomes best becoming the first course to win the triple crown in at least 40 years. the win along with a victory in the kentucky derby and preakness, makes american pharoah does the 12th horse to win all three races. a lot of coverage on social media. let's find out. let's talk with david and yvonne. it was a very busy weekend as far as sports. pharoah is the first course in 37 years to win the triple crown. years back in 1978, there was

no twitter. no twitter, no social media. horse wentme of the into the public spotlight, people were confused. they were looking at the name. and said something is wrong with it. this sums it up. if you're looking to differentiate the egyptian -ao. n, it is actually yvonne: it is not a typo. david: this was meted out by twitter data. it shows -- talking about the french open and the finals this weekend. it shows you the conversations and where the conversations are happening on social media and what they are talking about. is his tweet from novak djokovic. thank you for believing in me and cheering for me. yvonne: serena also doing pretty

well. thistalking about beautiful series of pictures that have just gone viral on social media. a russian photographer. he followed his girlfriend all across the world. poses thatignature he does. he doesn't show her face and he snapped the photo while holding her hand. they got married. that was a huge hit on social media. people wanted to say congratulations. saying things like this is a couple that i want to be. we saw her face for the first time. people are talking about how beautiful her dresses. people also saying that they lived happily ever after. it has been shared more than 250,000 times. one more, a huge congratulations to the newlywed.

wed. next, indiaing up needs to make more interest rates. ♪

rishaad: it is monday, the eighth of june. this is trending business. in beijing, tokyo, and mumbai, we are watching what -- how china is forging with general electric. rrc will dwarf competitors in emerging markets like latin america, and africa. going in another

direction for the first time in three years in taipei. it is flashing its sales force. it is pointing to weak chinese demand. sporting history made over the weekend, american pharoah becoming the first horse winning the triple crown in 40 years. it was a less successful beacon for novak djokovic. he lost the french open. he congratulated his opponent on twitter. do follow me on twitter. we are following the markets in more detail. china is on the up right now. china is one of the few in positive territory this morning courtesy of red.

asian stocks are down for the sixth consecutive day. holding on a two month low. after a strong u.s. jobs report last week. bolster the case that the fed will go ahead and hike rates this year. gainskkei is reversing and is now down 3/10 of 1%. level of march. final, firstapan's quarter gdp data coming in much stronger it than expected. 3.9% from the previous quarter. downang seng index is now to tens of 1% falling for the third consecutive day. it is at the lowest level in nearly two months. a completely different story for shanghai. they are up 6/10 of 1%. shanghai composite has been on a rally. last week as you remember, it closed above 5000 for the first time since 2008. it is currently extending in 5059,gains, up at about

still above that 5000 level. china's account is now set to reach $10 trillion. is facing a week of urgent diplomacy to free up bailout reserves to prevent default. aime minister tsipras taking united front with g7 leaders. let's find out more. yvonne has been having a look at this. how high was greece on the g7 agenda? made surerack obama that it was on top of the agenda over the weekend. they did say that the opinion was unanimous in the room when it comes to greece needing to move forward to reach a deal to avert the economic reverberations that could happen across the globe. the summit was hosted i angela merkel in southern germany. she said that the opinion was the same area everyone needed to

move forward. we are not there yet she said. tsiprass come after addressed lawmakers on friday saying that despite the huge backward movement we as seen in the last few days, they are closer to reaching a goal than they ever have been before. they did talk about the deal that was offered by creditors. tsipras said it was a bad negotiating trick. the european commission's --sident, younger was jean-claude juncker said he had sleepovernce and greek. he said he doesn't have a personal problem with a separate, but tsipras has to observe some minimal rules. there is pressure building on both sides. the dispute over crucial structural reforms. italian prime minister also talking about how it was unthinkable that italians have to pay for a pension system for

greek that is better than their own. is will the deal be enough to help greece. some say it is unlikely even if greece does release and get into anche of ther bailout relief. there needs to be more cash infusion soon after because of the $8 billion in the bailout fund which will expire at the end of the month. that may only be able to cover the bond repayments for the month of july to the ecb. soon after that, we may need to see more cash infusions. greece is facing a financial shortfall of $28 billion throughout the end of 2016. some analysts say it is likely to worsen if economic recession continues in the region there. we will take a closer look at that story. please give us your thoughts.

about theen talking world's industrial company trading now. we are watching see rrc. state owned railway companies. investors have been positive with the shares up on both exchanges. what is the industrial logic behind this merger? >> the logic right there is that its railts to make technology exports more competitive. the big selling point that china wants to put out is to prevent its two previous companies from outbidding itself for the lowest price. presenting a package deal.

he will present china rail companies, bring those contracts back to china and distribute them among the companies. because of it selling point, this is the more acceptable message to developing countries who may or may not have financial muscle to go for by high end stuff offered crc's competitors like siemens. also china has put forward a plan touting israel technology as one of 10 forward industries in its plan to bring china up into the league of japan and germany as a highly industrialized nation. making sure that its technology -- israel technology is acceptable worldwide by other countries is a big goal in

itself. the big question now is how will the existence of see rrc affect its competitors and its rivals business strategy. one way people -- one way that siemens is focusing on a high margin signaling segment of the sector. new equipment -- signaling safety,t is crucial for those are where the margins are. this is where they are focus. the chinese are not fully self-sufficient. rrc rises,or see there will also be increasing demands for all of these parts and components and signaling equipment. let's have it look now at the other stories. going over to david. let's talk about what

will be the biggest market story this week. inclusion of the eight this willthe basically determine whether billions of dollars more will need to flow into the chinese stock market. msci, they will need to reallocate more. some unusual things worth noting. before the announcement. msci notes that initial inclusion may attract $2 billion from funds tracking the emerging markets. a shares will make less than 1% of the same index. currently, there are a few chinese stocks including a shares. announce that a shares will be included, then

they will wait at least 12 months to implement the change simply to allow investors time to adjust their purple allele. theiry don't make that -- portfolio, if they don't make that announcement tomorrow they will have to wait for another 12 months review. that will hinge on access to chinese markets which will mark a major step in integrating the chinese market into international markets. deutsche bank -- coming to an abrupt end. he will be stepping down. juergen will also be departing next may. between the time that mr. jain steps down and next may, the firm will be run by another, a co-ceo. highly regarded in the industry. he is the former cfo at ubs.

faces aits a bank that challenge of stricter regulatory oversight, a lack of share price , ms. profit targets, so on. he will need to come up with a credible strategy to get some return and turn things around for the bank. let's take a look at google's push into driverless cars. heading a bit of a robot. google is planning to disclose more information on a regular basis. the plan is to issue monthly reports on technology. include as will summary of the project activities, any incidents involving the cars. been 13 accidents, none of which the company says where the fault of the vehicle itself. it brings up a valid point of

concern, who is ultimately responsible when these things happen on public streets. still obviously a work in progress. google admits it is still learning. rishaad: another story on bloomberg business is how airbus sales are threatened. program, later on the ubs forecasting further easing on interest rates in india. we are asking if the slowdown and china is destabilizing. when trending business returns. ♪

rishaad: looking at what is happening market wise. we are waiting for trade data out of china.

we are looking at that as well as the japanese equity market. a bit of weakness coming in from wall street as we had a better than expected payroll number. another case of good news being bad news. bringing forward interest-rate hikes. let's have a look at what else is going on this week. annual market classification review will be on tuesday. it will decide whether to include chinese a shares as an equity benchmark. stockng kong shanghai opened up to china stock market. liver due to give an investor update in london. he is expected to announce further cost-cutting measures including job cuts. is facing extreme solutions. its latest rate decision there. a record low of one and three

quarter percent. back in march. we have further expectations of further reductions growing there. exports plunged to their lowest level last month in almost six years. we are going to have a look at what is trending at the moment on social media in the world of sports after a busy weekend. in roland garros you have the french open and of course the triple crown. i checked my phone when i got up. it is hard to watch all of that. david: let's talk about barcelona, they have a winner for the fifth time. they put up this tweak. league, a cop.

. ree trophy -- a cup there is also -- we also have serena williams. french open, serena williams one. no one gets there alone. djokovic lost in the final putting out his congratulatory note to his opponent. commenting on the amazing performance. but it was very well deserved victory. yvonne: the story of williams. how many grand slams. 20. i am talking about this social media photo. a series of photos, actually that have gone viral.

-- follow me. a russian photographer and his helfriend who basically -- follows her around the world to all of these great destinations. but her showed her face does hold her hand. signature pose. today, they announced that they were getting married. but they were followed to the altar. this has been a huge hit. people talking about how gorgeous her dress was. people are saying that this is the couple you want to be. the wife said that this is her fairytale. some saying that the most beautiful photos -- the wedding photos were beautiful. a lot of people are congratulating them. of -- thist a couple project started a couple of months ago.

they have talked about how they have collaborated with some jewelry brands as well. very interesting and beautiful photos. david: he was holding her hand. yvonne: maybe we should try that. that is a look at what is been trending on social media. don't forget, if you use twitter and it is easy to stay in touch with us on trending business. you can follow both yvonne and i. looking at stories making headlines around the world. rejecting the presidents approach to growing power. the result raises the possibility of a coalition government with a kurdish party. they have been winning seats for the first time. had wantednt constitutional change to extend his term. leader fell to

record lows in his popularity. malaysian officials saying 18 people have died when an earthquake hit on friday. many of the victims were from singapore. including two children and their teacher. many people had to make their own way down and they have criticized rescue efforts. another victim has died from the mers virus. 87 people and south korea have been infected with the syndrome. the largest outbreak outside of the middle east. 1800 schools have closed with more than 2000 people taken into isolation. the acting prime minister urged people not to panic. the trade data out of china is coming out shortly. we are, trending business.

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rishaad: let's get straight to this breaking news. trade data out of china. david: what we are getting from the customs bureau in china is numbers, we are still waiting for the u.s.

dollars, the exports have fallen 2.8%. it is a little bit better. imports really falling down. 18.1%. we were expecting a fall of about nine and half percent. the previous month it was a 60% fall. importse the considerations with the commodities falling. that is hurting imports in the following denominations. in demand is a concern in china. imports are falling. oft leaves a trade surplus 366.8 billion yuan after 245 that 210 billion the previous month. we will wait for those u.s. denominated trade numbers. they shouldn't trade much. 2.8% fall in may. fall in imports for may. rishaad: let's get more on this.

we can't look at these numbers, they do have a lot built into them. what is the impression because the numbers are slightly off? >> the most important thing is the sharp decline in the imports. china reached almost $60 billion trade surplus in terms of dollars. one of the record again. week domestic amount resulting in a sharp decline in imports. exports were also negative. the target for exports -- you are saying it represents a week picture of the domestic market but maybe it is because of the commodity side of iron ore has fallen. the commodities complex has gone down. you need to spend less to get more. >> that is one reason behind it. but also in the last few months,

if you look at the combination of the decline of volume in the --line of price, 18% regarding volume. we have not seen the breakdown yet. the reason why chinese government just announced a week ago to slash the import care of a luxury goods. that is to stimulate imports. rishaad: we are getting the figures now. steve. exports falling year-over-year in dollar terms down 2.5%. we were expecting or .5%. they have fallen. exports have fallen in china every month except for february which had those significant seasonal distortions. imports are also down significantly. 17.6%, down in may, year-over-year.

we were expecting about 10% with the consensus average. the previous month was 60.2%. imports of fallen for the last seven straight months including five months in a row in double digits if you include mays number, down 17.6%. that leaves us with a trade surplus. billion u.s. dollars. rishaad: thank you. more analysis from our guest. we will be discussing these numbers and what they mean. hdc.more discussion about and what slashing the salesforce will mean. trending business will return after a very short break. ♪

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or is it foyer [pronounced foy-yay]? fast in the hallway. i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business. rishaad: a look at our top stories. china's new rail giant begin their trading debut. the company has emerged to be one of china's two biggest rainmakers. crrc becomes the world's second-biggest industrial company. allow china to compete more aggressively for china's r ail deals. the latest data revealing the storm a stroke -- the strongest

growth since 2013. gdup up. number.iminary 2.4% the results have been driven by stronger pickup in business investment and inventory buildups. the greek government and its creditors due to resume later today. the diplomatic pressure piling up on greece. aner g-7 leaders called for end for the deadlock. we have got that trade number coming through. overall, seen as being positive. chinese trade data out this morning. point $5urplus of 59 billion but exports falling again. imports down much more than expected.

overall in asia today, we are seeing stocks falling for 60 consecutive day, holding at a two-month low. kospi down. the day down .3%. has been dragging the -asian- the numbersagging down. let's look at the australian. because australia is china's biggest trading partner. the australian dollar lot -- not much changed. it's been weakening for three days now. let me take at the japanese yen, because we are seeing the first level of strength declines webig have seen for the past three weeks. we saw three consecutive weeks of declines. level.ill above the 125 let me take you to some of th e

e movers within china. we have hsbc. look at that. above. slightly changed. they are saying that they will sell euro-denominated bonds. breaking numbers from china. i'm joined by the chief asia economist. shen jianguang. you have had time to digest it. what is your overall take? jianguang: still quite weaker external environment for china. plus weaker exports. rishaad: so the global economy is weak and the local economy is not exactly -- weak, too. jianguang: weaker. that is why more stimulus measures definitely needed. the chinese government is planning a fiscal stimulus. some monetary easing.

not soe consolidation. rishaad: which we saw with crrc coming to the markets, one of many companies which may well end up having to merge. jianguang: that's right. a lot of state asset injection. all of these measures seem to e nsure the chinese government is firmly in the camp of supporting the growth. rishaad: is stimulus actually making itself felt? jianguang: already the interest rate has declined sharply. so far, a lot of liquidity has flowed to the stock market. rishaad: that is a problem. could the stock market rally -- many people are warning there could be, an accident waiting to happen. if it did have a bursting of the bubble and not a gentle deflation, -- jianguang: this is the risk of the money stays in the stock market. speculating is a big issue.

the chinese strategist, first, you need a good stock performance. then the money will flow to the real economy. rishaad: we got a story today about a man who is going to buy carlyle. he didn't buy that car. jianguang: it is a risky strategy. the issue is that these kind of double ine lags can stock price. in less than a year. cannot sustain. we know this -- at a certain level, the price will -- rishaad: look at the recent massive uptick in the number of new accounts, stock market accounts opened up in china. what is the danger of that sucking the money in to the detriment of the real economy? jianguang: that is the real issue. either weaker investors putting money from their savings account. where this money will translate into the real economy in the later stage.

that's why they are cutting interest rates. starting with fiscal stimulus to the economy. whether this will happen is a big risk for this year's economy. rishaad: lots of stimulus measures which can be used. what do think will be the favorite tactic? jianguang: first is, you know, the monetary injection again. credit. we are seeing a lot of credit flowing again to the local government financial vehicles. they change the fiscal rules to make it easy for local entities to get money again from the banks to start infrastructure investment. i think that is the number one strategy. rishaad: thank you for sticking with this. we are going to take a look at what is coming up. htc plunging the most since 2013. slashing its sales forecast by as much as 1/3, pointing to

waning demand in china. tim is in taipei. this cut very sudden and also made it, late friday night. what is going on there? tim: late friday night. came out0 p.m. htc with may sales on schedule. at the same time, said, you know what? second quarter not as good as we hoped. when they originally forecasted sales, they were below estimates. again, even worse than expected. adding to that, they are doing a one off right off of 2.9 billion taiwan dollars. put that in context, their entire net income for last year was 1.5 billion. the secondght off, quarter loan is doubled their net income from last year amid falling sales at htc. it is going to be very difficult for them to post any kind of net income this year. as you said, china is one of the

things they mentioned being a problem there. aker high-end smart phone sales really have been looking at the high-end for a long, long time. they have been very slow to get into the low-end were companies are looking at. htc has tried to go for that sam, that iphone market. ,heir latest flagship, the m9 which came out at the same time during the quarter. it's not looking good. sales have not been going that well. reviews for the product have been less than exciting. 're understanding is their latest product has not been a hit. that was supposed to give the momentum throughout the year. it is not going to do that. bad times for htc. rishaad: it did announce it will write off assets. huge numbers there as well. i am sure what it is. is it a one-off, no big deal? for a deep-seated malaise at the company now?

well, you know, 2.9 billion is not a small amount of money. they do have a lot of cash cared $1.5 billion in cash. they have plenty of cash. and zero debt. on the balance sheet, they are looking strong. when they are doing a one-off right off, they did not elaborate too much on what that means. it does not mean that there could be things in future. they have done some m&a over the last three years. if they paid too much on what they paid is certainly more than what those mna assets are not worth. ure impairment could come down the line. there might be more one off write-offs. they have not told us anything about that. that remains to be seen. you would hope it is a one-off but it does not mean it will be. going forward in the next few quarters, in the next year or two, analysts and investors and

the company will need to look more closely at the balance sheet of the assets they got and whether or not it is justified. at this stage, analysts are turning away from a p/e ratio look at the company. and deciding to look at price to book. and so, if the book value does fall, then those price to book values follow suit. rishaad: tim, thank you for that. tim call penn joining us from taipei. htc plunging the most in two years. two extremes.e of why chinese stocks are some of the most expensive and the cheapest in the asia-pacific. ♪

rishaad: china's a share boom could be felt for driffield field from tomorrow as asia is included in the emerging market index.

it could cause a rush among investors and a shift for global tracking funds. with me now. what is the likelihood that we will first of all cds a-shares included in the mxef? tim: nobody has a definitive answer to be up front. but we do get a decision tomorrow. their efforts last year. many think it might get put off until next year. that said, i think it is fair to say when, not if. we have seen several other instances of inclusion. the ftse has moved with their emerging market index. vanguard with a $50 billion emerging market etf. has moved forward. so this is going to happen. is important because almost two dollars trillion of $2 trillion of

money are benchmarked. rishaad: the world is focused on the chinese market right now. it might not be the right time to do this. see if this froth comes off. we look at why we've seen these performances. varied performances because china is not just one market. tim: very true. we do a monthly update on what's going on from china performance and evaluation and whatnot. if you look at the market, as to, it is like a tale of two markets could you shanghaizhen and which have soared. rishaad: that premium between a-shares and 8-shares is widening. tim: if you live in the average stock that is dual listed, praying and a-shares is listed at over 100%. it's market gap weighted and

skewed towards bank. it's huge. no doubt about it. this has been spurred by chinese retail momentum investing on the north side. and more measured investment but china'sng stock as well since last october with the protests. rishaad: ok. thank you very much. next guest says hong kong stocks are likely to see more volatility thanks to this new trading link with the mainland. joining us live from turkey. the hong kong stock is change hoping them in turkey -- perform asrkey will high trading firms in the u.s. high-frequency trading is not

popular in hong kong for tax reasons. but hong kong stock exchange officials have been talking about how increased volatility, increased trading from the mainland could in many ways perform the same function that high-frequency performers -- traders performing the u.s. and europe to increase liquidity. i think it is very risky bet, because the one thing hong kong does not need is more volatility. you have seen a lot of volatility in hong kong in recent months. i am not sure to the extent that regulators are ready for this. the market in hong kong does not have a circuit breaker mechanism if you will. a cooling off pieeriod. and i think in many ways, hong kong is the china regions green zone, the financial green zone. in some ways, we're seeing this bubble infiltrating

hong kong, which is changing a lot of the fundamental reasons why investors would trade in hong kong, which is sort of price-to-earnings ratios that make sense. over time, as more of this froth comes in, it would be harder and harder to get a sense in hong kong of what companies are worse and where things are very valued. rishaad: what is hong kong welcoming more and more of this main then money? willie: it is making it self very vulnerable. we see this rally, 150% up. in shanghai. in on year. these are impossible numbers -- in one year. they are likely to increase in the months ahead. the reason is that the government is in many ways encouraging the chinese investment stocks -- the government is propping up the market, so that companies can issue shares to write down debt.

in many ways, you can argue that is a smart strategy for this short run. it is unsustainable. japan showed us that. a bet in the chinese market is a bet that china's government can be the only industrialized economy to never crash. everybody does. it happens to everyone, no matter how good, no matter how smart officials in beijing are, no matter how much money they have. everybody crashes. in some ways, hong kong is making itself more vulnerable, whether it is three months from now, three years for now, 10 years from now. hong kong is setting itself up to fall with china. rishaad: absolutely. that is just it. you are almost think it is a question of when and not if the chinese market crashes. there are a lot of commentators in that vein. so, what happens if we do see a crash? willie: think about this. china's local government debt

alone, what we know about, exceeds the size of germany's entire economy. when china's stock market does go, this is a very big problem with the global economy. china is the number two economy. and larger than a lot of these g-7 economies that met over the weekend to try to figure out what to do with china which is ironic. in many ways when china does go, and i'm not saying china will plunge 10%, but every economy has a reckoning. when that happens, i'm not sure everybody is ready for that. i am not sure south east asia and with the u.s. are ready for that because china owns a lot of u.s. treasury debt. if china needs to sell that debt, to make of margin calls, that affects u.s. interest rates. so china having even a mini crash is a very big episode to the global economy. i'm not saying it is going to happen in the next year but when you look at the way the stock

markets are exploding in china and there is no other word for it -- exploding -- you have to take a deep rough and wonder what is going on, and what might happen to the global economy when a bit of sobriety returns? rishaad: nice. in tokyo. nearby ships blared horns for three minutes and to honor 430 victims of the yangtze river capsizing or the number of people killed and last monday's overturning of the cruise ship 11 people331 with missing. specialists have begun working on dna samples to identify the debt. -- the dead. 14 people survive. rescued moreas than 500 migrants and the mediterranean and brought them to shore in italy. in precarious conditions not far navy libya, the germany managed to bring them on board

safely. the attending coast guard says 00 migrants arrested over the weekend. fears are growing of a volcanic eruption from indonesia's mt. kinabalu. they remained active last week when officials raise the alert to its highest level. they have first anyone living within seven kilometers of the crater to leave their home as a precaution. nearby farmer so they cannot afford to stop working. mt. kinabalu has interrupted over the last three years sporadically. rishaad: we are announcing this, also. how low can they go? ubs. official rates can go much lower. we are off to mumbai on the other side of this break. ♪

rishaad: despite three cuts this

year, india can go lower with interest rates. that is according to ubs. they are saying the central bank should consider the deepest cuts and seven years, despite concerns of inflation. we have more from him by. very good day to you -- from mumbia. ai. >> the central bank likely to further cut the key lending rate by 75 basis points despite the hawkish stance at its meeting. that is the headline coming in from ubs. india has tothat bring down inflation expectations. concluded a policy review meeting on the second of june. the rbi and governor rogers had cut interest rates. by .25% for the 30 time this year. -- the third time this year. the short-term lending rate has .725%.t from 7.25% to

analysts are saying this monetary tone suggests a potential fall in policy rates at the next monetary policy meeting. rishaad: thanks. as we head towards the start of the trading day in india. let's have a look at what is also on the move today. what is trending. david: a lot about sports. with a triple crown. inst horse tow i win all three 38 years. onh the name -- making it social media. interesting tweet. when you take a look at the name of the horse. o-a? a-o? there you go. if you're talking about egypt, it is a-o.

let's get to tennis. roland garros. interesting piece of twitter data. what you see. this conversation, in real-time e ishe yellow on wawrinka. we know that novak djokovic did not win. busy weekend. barcelona capturing its fifth new wave champions league title. the triple threat of barcelona and suarez. tweeting out this picture. a picture of his teammate. very interesting. there we go. very happy set of football superstars. a lot of sporting news. back to. -- to you. rishaad: stay tuned for "asia

edge." we recap the big stories of the day. asiaguest is the chief strategist for bnp paribas. "asia edge" is next. ♪

it is the middle of the asian traded. live in hong kong. this is "asia edge." is the middle of the asian trading day. a look at our top stories. china's malaise continues. numbers underscoring sluggish demand. japan looking on track for recovery. the economy growing at its fastest pace in a year. a new industrial giant is forged.

>> wrong numbers. htc shares plunged to a 10-year low. sales forecast blaming weak demand in china. crying out for change. deutsche bank installing new leadership in a bid to revive its forces. class wwaar. we meet the boss of and all business airline promising to shape a corporate -- shake up corporate travel in this monday edition of "asia edge." shery: keeping an eye on the markets. asian stocks declining today, holding added two month low. the nikkei reversed earlier gains and went on a lunch break .2% lower. balancecurrent account for april came in lower than estimates. although its final first-quarter gdp data came in lower than expected. the