investors say here's the double in the next few days. boost, to the west for a the chairman says american small businesses will be a key part of alibaba's strategy. revenue generated from abroad are up 5%. surpass walmart this year. twitter, me on #trending business. certainlyser, investing. we've been talking to charles about it. charles: a lot of steps need to be done, in the latest review, stepping back and not including asia yet in the emerging markets index.

however, they also at knowledge they are a step closer. at least a lot closer than a year ago, when that decision was made not to include them. a few important remaining issues regarding market accessibility need to be resolved. we have three issues that charles lee, the hong kong exchange ceo told us in an interview. needs to be started, we had the shanghai connect earlier this year. the northbound daily quota, it needs to be expanded. or removed. also the rights issues have to be resolved, perhaps that will come in the appending new securities law. the bottom line, the asian harder toincreasingly ignore -- up 150%. is emerging markets index

tracked by 1.7 trillion u.s. dollars in global funds. , foreigners own about 6% of mainland asia. there's a long way to go there. >> we will have more detail later in the program. we talkingr report, about the first nuclear power in china today. thee soaring after trading, shares suspended after hitting the daily limit. popular,e company so is it just cheap? just come at a good time. the markets in china are rallying. it comes in a good time. saying, this company has a distinct advantage in the domestic power industry, as well as strong earnings potential. especially at a time when china

is hoping to expand its nuclear power industry. is showing atself presentation of china's nuclear ambitions. if you look at what they are hoping to achieve, for example, in 1558 gigawatts. 22 reactors, it has more then doubled capacity. how much money will that take to achieve that? $60 million every year to achieve that. the nuclear power firms are scrambling to get that catch out there in order to expand the resources. the red are turning to hot domestic equity market. chinese policymakers have said that would make it easier for private investors to get

involved in sectors like solar energy, we are seeing them do this. power inlisting of cgn hong kong just in december. now cnn is saying it use $2.2 to fundof the ipo fund four project. >> here is david england. david: if you missed that big ipo, given the interest and amount of money that was locked up, because of these description, you have 24 more to choose from. offerings will be split evenly between shanghai and hong kong. we have a few we will be listing on the small-cap index. what is happening across the market? very good. responding to a seven-day

decline, they were oversold in some markets. philippines, indonesia, sold off substantially -- indonesia was down some 9.5%. the philippines also getting into a technical correction. again, the story that we are way, the emerging market. across asia, just this month, only two markets have seen inflow. japan and south korea -- the two,of asia, between these i'm doing the math here -- that is about 180 million dollars. north of $300 million. better-than-expected machine orders, unemployment up to 3.9%. we had a big drop in philippine exports. the biggest drop in more than two years.

on,pens up a bit later about an hour later. we have a rate decision. surveyed, only one -- back to you. >> let's have a look at some of the other stories we're following. here is the roundup. there, we're talking about hsbc chief executives. no sacred cows in his plan to cut costs and raise profitability. plan,ors have a strategic which include flushing jobs and building businesses in turkey. they will cut up to $5 billion worth of costs. it came back down after his conference call to shareholders, we seeing extended losses and hong kong trading this morning.

possible relocation of the headquarters, it has moved up the investment in china -- paving the way for it to be back in hong kong. he says hsbc will complete the review by the end of the year. it may take another two years to eminent the move. official now, and bailout fails to meet budget targets agreed upon last week. the safety net, of course, expires three weeks from now. the prime minister will meet german chancellor angela merkel and french president is wall on hollande in brussels. ,alling the creditors deal saying that greece misrepresented the discussions. we did hear from the vice president, he is an agreement.

a lot of intensive technical work has been done, reese good find a fiscally equivalent measures to replace the demand by creditors. now, u.s. at the faa aviation authorities say no feasible way to make electronics say from sabotage. the issue was raised last year after the majo malaysian airlines flight vanished. electronic rates cannot be switched off. that pilotsblem is need to cut the power in the event of overheating or a fire. these new positions making the issue more compensated when it comes to preventing another disappearance of the plane like 370. as well as to combat intentional acts, such as the germanwings crashing into the outs earlier

this year. he rejected calls to add a video records in the cockpit, saying there is no compelling evidence it would help investigations. back to you. >> another story following on bloomberg business, president obama may send more troops to train iraqi forces -- have a look at this one. coming up later on the show, after a seven-day drop, we are headed to jakarta to figure out what is going on there. and a couple of minutes, south korea steps up sanitation on the subway as more deaths are reported. the latest, after the break. ♪

rishaad: a check of stories making headlines. u.s. secret service off icers have interrupted everything because of a bomb

threat. after bringing in dogs to check wing, president obama was at the white house of the time. officials say the threat was phoned into the washington police. chinese rescuers have failed to find any bodies during an underwater search. 13 diverse search a riverbed beneath the search for the eight people still missing. rescuers also used a 3-d imaging sonar, only 14 of the people survived the disaster. south korea has reported two more deaths from the respiratory syndrome. nine people are now known to have died since the first case on may 20. beingetro trains are disinfected daily. thenumber of people using

trains have dropped by 10%. >> this outbreak will bring down south korea. great to see you. mer-like syndrome could bring down growth. i think they are putting cautionary measures to make sure it is sooner rather than later. you might remember that last year, korea had an accident that weight on consumption for a while. the public is very careful about it. >> why isn't anyone putting this into context? 3000 people dying from

normal influenza, we're talking about 10 people dying here from mers. not literally the poor people who have it. >> it is considered a deadly virus. even though, right now, they are afraid of it. closed, obama thinks could be economic impact which is a big concern for the government. >> given that the bank of korea, of course, they have a meeting taking place. you are expecting 25 basis points, record lows of 1.5%. not due to this issue, is it? >> we are thinking about downgrading the growth forecast, given the recent economic outlook.

when you look at other countries like china, taiwan, we think there is some structural change in the way that global trade responded to global growth. therefore, we saw that korea and taiwan saw some growth. but also medium-term, as well. on top of that, we had this graded it 50downloade points. >> the future is not particularly bright. we know that. everyone is making things worse, you were saying particularly the cross. >> actually, that is the issue. that is why we think of that. we like to cover those growths. when you look at the global trade at the end of 2012, there

are differences in performance. when you take into account currency, like the japanese strengths and the taiwan dollar being stable, that affects actually about 90% so far. we see -- >> inflation is not the problem, is it? end ofared to the low the target of 2.5%, we are rightly concerned about the stability and inflation, but the financial statements, as well. issues, ite of the is more like high blood pressure rather than cancer. they should not be overly some concernere is that if you cut the rate, you

might actually encourage more. >> how do you get people to deleverage? >> some idea how to do that, but also improve the structure outside from the fixed rate. not only the interest-only payment, but the other payments, as well. given our efforts in korea and other countries, it should be dealt with other ways rather than interest-rate only. l do they continue to oosen? >> we expect one more cut, most like the tomorrow. in that case, we think it might took to do a wartime down 125. >> 50 basis points?

country, thef the level is important. 1.5%, the rate will go down , but it will have a huge impact on the psychology. given that you cannot give them anymore. >> let's look at the whole way.re in a broad is it going off the rails? >> is not that pessimistic -- >> there are some changes happening, because of the chinese slowdown. obviously, choosing manufacturing countries like taiwan, we need to think about the threat there. growth is 3.4%, trade versus

growth and including other groups. ashid: good to have you on the program. we have to take a break. next, a textbook example of how to move a mountain. it is a bit of a smash on social media. we will tell you more on "trending business." ♪

rishaad: looking at the cooperation development, new zealand's reserve bank should hold off capping the rate when it meets thursday. the rate is currently 3.5%. they see a 50-50 chance of the cut. does the bank think this is the wrong time to ease? paul: they think they need to wait for more data before they cut rates any further. observations in a two-year report which has just been released. one of the things governor graham wheeler is concerned about is near zero inflation. they see inflation rising next 1.7%, one of the

reasons they should hold off for now. they also see the economy contracting slightly, the rate of growth is slowing rather. to .3% as dairy prices fall. they would like to see a cut in the cash rate tomorrow, the new zealand dollar is still historically strong, especially concerned with australia. overall, the bank is worried that cutting rates would throw another bucket of fuel on a market rush. d: house prices, the average price in auckland is more expensive than in london. is it bubble territory? paul: nobody is calling it a bubble, but i will give you this information, the average price states dollarsed

is more than the price in sydney. sydney is down a bubble, you can run your own conclusions from that. it means that they have introduced micro-credentialed --ls, capital gains taxes they have been doing what they can to let the steam out of the bubble. not that anybody is calling it that. let's have a look at what is trending on social media. we are talking about the taiwanese textbooks. little bit of a backlash. >> there is backlash because the new curriculum in taiwan is getting a bit of heat because the textbooks are pro-china, regarded by some as pro-china. going so far as to suggest everest is inount

china, and that is what the textbooks say in geology. it is caused huge protest, students making their case to the government's education ministry. it caused a big uproar. this is what people are saying on social media. there was a big article in the chinese language daily, we translated it the of facebook. this generation of children have grown up in the internet era with free democracy. using textbooks to brainwash them will backfire. we know that textbooks issues are hotly debated. >> a simple google search could cause a lot of problems. we're talking about this sarcastic hashtag. beingawoman.te

here he is meeting with the prime minister and there. he was praising her efforts to stop terrorism. he said despite being a woman though. that is how we ended that remark. a lot of people talking about this in the last couple of days. people putting their own ironic remarks. tolerant,generally #fail. this is when to be really bad. some saying that he was not trying to be sexist, he met that with a struggle, a woman has to indoor. back to you. seeing aindonesia slump in stocks. we're live in jakarta.

♪ rishaad: our top stories, saying there is a world where beijing accounts remain excluded. the denominator stocks settling investor concerns about ownership. the chinese national nuclear powered surging 44%, on the debut in shanghai. has raised $2

billion, shares have doubled in the coming days. are trending in hong kong. shakeup,revealed a big after 25,000 jobs will go. nothing in hong kong where the bank may relocate headquarters after a year-long review. they needed to create another hong kong and shenzhen and wins . japan market just closing out this morning. it is lunch now. >> you look across these markets, obviously, let me summarize it. with theg is up exception of new zealand and the shanghai composite. we are up about one third of 1% overall. i want to look at the oil and

gas players here. you have this huge pop up in oil prices overnight. crude around 70 something. we have moved on with comes to airlines. why showed you of course is an update. again, that is down. if you look across the chinese airlines, eastern and southern -- all down as well. it really depends how long oil prices stay at this air level. while we're talking about china, transport stocks -- carmakers are down. jp morgan going the opposite direction. reversing the weakness. power, that is the other nuclear player that went public

late last year in december. now trading below five dollars. this had anistaken, ipo a little under three bucks. very substantial, i want to mention that nuclear power -- very good day, up 40%. turns out the biggest ipo in four years, if i'm not mistaken? more than 200 billion in terms of suspicions. here, i thinkmath business trading at about 24 --es the current earnings interesting there. h.ck to you, ris

rishaad: stuart gulliver saying he will decide whether to move the headquarters out of on london and moving asset management to asia. analyst is with us mme now. let's talk about the relocation. we saw that he wants to reinvent , that can mean many things. they could be political, to avoid that bank levy to stay in london. and put some pressure on george osborne, the chancellor. it could mean a spinoff. it could mean that were moved to hong kong. >> and the end of 2015, the u.k. putting the- restriction on bonuses. all, i think hsbc is among the major contributors to the

nation. the u.k. government cannot just let them go that easily. what is the difference? >> they could come to one third of what they originally are paying. hong kong has its own traction. it has a simple tax system. is asia's financial hub, etc.. rishaad: tell me something. what is the good news? will he get some other things out of that? strategy statements? >> after all, as we may have all known, there is no surprise coming out of yesterday's announcement. reiterating, one major

positive according to our group, is the confidence going forward. of course, hsbc has laid out a detailed plan, to have specific strategies and the development of china's operations. the operations in south east asia, all of these have high growth potential to become markets like the u.k. and the u.s.. . rishaad: let's look at the southeast asian shares. tuesday, but a federal rate rise in order to curb rate demand. indonesia led that route. as i was talking about, let's go to jakarta where a reporter is. how is this suspected to play out? been a morning, it has bad start.

the slump continued, we did see some rebounds earlier today. 2.3%, leading to the decline from april for record to more than 10%. asian stocks, along with southeast asian shares, we will curb demand for risk here. but apart from that, the economy is become the major concern for investors for quite some time now. as they unexpectedly contract for a second straight quarter. according to data, their contracted to three months from the previous. . put both estimates in a blue mix survey, the government's target of 5.7% would be difficult to achieve. another analyst said that marketability remains sensitive

to the momentum. , it is another challenge for the president. growth bys to revive building with infrastructure. back to you. shaad: she's in jakarta. about to split its shares. hastingscutive reed says it will make the stock more accessible. netflix shares will be boosted to about 500 billion. stockholders agree to give investors more ability to nominate directors. planning to open up at least five new outlets in hong kong, it is competent it's brand of affordable luxury to attract shoppers in the retail market. otherpansion is coming as branches are moving product and

barberry. something china has been cracking down on, extravagance and corruption. japan apparently must more than ifble its sales tax to 20% it wants to avoid a fiscal crisis. that is according to the former vice finance minister, he says it needs to happen in the next 10-15 years. , whichs to rein in debt is about 230% of gdp. there have been a plans to increase sales tax after last year's hype, but the economy into recession. china nationald nuclear power is suspended on his first day. surging to 34%. let's get more from the intelligence aneditor. if we had not had the limits,

this could have gone on. obviously, it is the shanghai market which is bringing the share prices up. knowar, in general, as you is looking very attractive. at theysts look valuations of the companies. if you look at the consensus valuations, they are quite high. relative to their peers. there seems to be something else afoot, the interdigital high composite index. reflect does this confidence in nuclear power in china? day, it seems like every ipo we have now goes through the roof there. ph: i think there is a clean energy angle. anything for the

restructuring at the going to the roof, as well. clean energy has a real tangible story there. china is putting a lot of effort in expanding. if you look at the return on the equities, it has some potential upset in the forecast. theaad: we have investments and the authorities possibly taking a 10% stake. does it signify on one level and move out of hong kong? there are lots of other things going on, buying assets and utilities in the u.k.. joseph: if you look at it from the media perspective, on the front pages, it says they are leaving hong kong all the rest. from a fundamental perspective, it is not a very attractive market right now. you have consumption which is growing very slowly. d: you don't see it at the

end of the day. joseph: it is in single digits. or you look at india ar for other markets around asia, in 2018, the government will be looking at the contracted has with hong kong electric. d: joseph, make you very much. up next, no limits -- we hear from the hong kong exchange. ♪

>> a british private investigator to time in china two years ago has a portly been freed. family friends have told british media outlets that he was

release on health charges. oncerns. working for glaxosmithkline, the head of gsk china. putinn president vladimir has met the chairman of the national people's congress on the parliamentary forum. he said the five emerging economies should move towards a $100 billion development bank and a leader summit in russia. china's foreign ministry has criticized the statement over territorial disputes in the south china sea. the g7 leaders called for the peaceful settlement of territorial issues in the region. china has been accelerating land reclamation work.

rishaad: it has been nearly three weeks since shares were losinged for nearly after value in 24 minutes. we are awaiting an explanation. they interviewed me last year. chairman was all smiles when bloomberg television met him at his headquarters last year. why not? the shares had quadrupled in value over the last two years. as he moved from wind and hydropower into the solar industry, he was gunning to be china's richest man. i ammetimes people think lucky. i always say, where dibella come from? i believe when you are doing something with a mission, god you with magic.

>> that magic was on display when he invited us aboard one of of jets to see this roots his stratospheric rise. it is truly a rags to riches story, like so many of the stories of china's newly minted billionaires. borrowed moneyhe to start a business selling everything from water to electronics. he dabbled into real estate g headlongn into energy. that heately run dam says generates him $1.5 million cash every day. this is the centerpiece of his power play in china, the largest hydroelectric dam with a capacity of some three

gigawatts. that is more than the famous hoover dam in the united states. he prides himself on never having worked for anyone else, including the state. which makes his move into power all the more incredible. 2008, he was offered money to be bought out. >> take the money and go. we knew we would all suddenly become superrich with a ¥20 billion. but it will cost us what we really believed in. >>'s net worth cap swelling. year, the19 of this shares have rocketed sixfold the market cap larger than sony. but something was amiss. few could explain the surge and what would happen next. a freefall that wiped away $19 billion in market value. hong kong regulators are

investigating possible manipulations. his words from a little more than a year ago now see more relevant than ever. >> i have never struggled with cash or capital. i have tried to keep a low profile, as i do not want people to talk about me. i have never done anything bad that would distract people from my business. talking about him now, does not in the way he envisioned. rishaad: steve is there. let's take a break on the other side of this. nding business." ♪

>> the mainland shares, before they can be added to the indices, we put up with the

exchanges. charles heard about the delay. we're asking him about the cultures on the shanghai hong kong connect. aboutdon't need to talk total illumination, we could talk about inclusion. if we are able to talk about something that we could potentially do on a major adjustment day, that would be accepted from the limitation. that is a possibility. again, we should be discussing a range from doing nothing to some sort of momentary exemption in order to allow the index action. that is a possibility. the last bit that we probably need to get more comfortable is the rights issue. ,hat issue has been clarified they have published all the rules. i think it will take time for people to adjust.

if inclusion could happen in the coming quarters, before the next lawe, the new securities could potentially be passed in china. in the new law, there would be clear definition and provision for rights. rishaad: re: talking about when it comes to timing? including them, was starting to include them win? hen? charles: i personally do not know. this is going to be a lot of work on the scenes, but the regulators in china and also the developer and a managers and the players like ourselves. we need to work together to make it happen. the thing is that this is no , howr an issue of how soon

big the initial inclusion to be, and how fast it is going to continue to ultimately achieve inclusion overtime. rishaad: what a year. incredible, isn't it? this is crazy volatility. charles: those are all the things we need to get used to. rishaad: these share plunges we hanergy in particular, people are concerned about governance here, charles. charles: i think people sometimes forget we do have strong regulatory frameworks here. the fact that regulars are not talking about it doesn't mean they're doing something about it. occasionally, they will have to talk about it. : what are they doing

here? the investigation is underway. les: i'm not part of the investigation. it is in the hands of the officials. i know everybody there. they don't tell me anything they're not supposed to tell anybody else. i'm sure i have great confidence in the regulars. you need to give them the time and space to do their jobs. if there is something wrong with the company, with the trading, trust me, they will be dealt with. rishaad: but it should not have come to this. shouldn't there have been a limit up or down? are you going to introduce that? there are ways of looking at it, most of the advanced markets -- you don't really do that. the market will do whatever it does. but we do allow the introduction of volatility control mechanisms.

mistakes,r fixing anything wild that goes wrong. the market is going to crash because of that, we will have a system to build a break in there. but that is not a suspension. there is a five-minute pause where people can continue to trade, giving people in the market the time to think. is this something we want to do? if people still want to trade, everything went wrong, it would be relieved wester, rishaad: that is it for this midweek edition of "trending business." we will recap some of the stories of the day. inclusion the gradual on the futures of asia. t to the chief market strategist at j.p. morgan.

a wide-ranging conversation talking about conversations there. what is going on with the global economy, as well. i look at what is going on with china. "asia edge" is next. ♪

john: i'm john heilemann. mark: i'm mark halperin, and mark: i'm mark halperin, and with all due respect to the newest mcdonald's employee robert gibbs, have it your way. on our dvr tonight, csi-chicago, and from germany with love, but first miami vice. marco rubio -- the $80,000 boat paid for with the republican party account, and of course, the traffic violations reported by the times a few days ago. so, the times is on it. is this legit and is it