lot more must be done. knowingsive issue -- about airbag flaws in 2001. the u.s. senator talks about the troubling picture of the manufacturer. to let us know what you think about today's stories, please follow us on twitter. evidence that china's economic slowdown is turning the corner. the hsbc numbers for june came in better than forecasted. steve, better but still contracting. : the preliminary number ahead of the final number coming in at 49.6. 49.4. 49.2 and it may, has been showing signs of improvement ever since that 50.7 in february.

it is getting better, it is still in contraction. there have been signs of improvement on the job front. it is still contracting however it is not contracting as fast. have been and output improving. we have been seeing signs of improvement but the chief china i caught him in the corridors here, he said he expects at least one more 25 basis points interest-rate cut from the pboc by the end of this month. that means within the next week another interest-rate cut is coming carry we are not out of the woods yet but at least things are indicating that we have reached the bottom of this current slowdown. we will have to wait and see. yvonne: thank you steve. let's get the market update from david now. trading havento you seen any reaction to those numbers? david: we are about 30 minutes.

that is just the start. it has been fairly volatile. out for outstanding margin .ebt and how it plays out that is what is happening with shanghai markets right now. which is a very good day to be honest. volumes are a little bit less. -- nikkei was up three days since friday. we are basically looking at the best three-day gain here this year. the index is up 1%. 160%.

we will figure out why it is moving the way it is. we will get you more details on that in just a minute. australia is up 1.2%. everything. . -- every single stock. it is a good day in southeast asia. malaysia and singapore getting into the game. mentioned?ave i not greece. what is happening there. long story short. we are at 239 right now. we were given to 25. - 225. there is money flowing into fixed income right now. are we seeing an improvement?

the odds that greece will be able to pay back its debt obligations at the end of the month. stick to greece now as debt negotiations going down to the wire. brussels meetings in but there were conflicting messages. the markets are optimistic a deal will be struck but some players including angela merkel say a not -- a lot more need to be done. seventh, are we on the verge of an agreement? zeb. a months, the greeks have not put forth sufficient proposal in the lives of the europeans. this latest draft looks at early , it would tie up the sales tax, and increase it and it would also raise taxes on

the wealthy to try to increase the tax base and revenue for the government. we understand one of the key sticking point is how to distribute that income from the sales tax. something they will be discussing over the next 48 hours. the greek prime minister is trying to hammer out the details with the 18 members of the eurozone. the creditors must come together and agree. he has ordained hours to do so. the goal is to find a breakthrough by wednesday that can be signed off on by thursday or friday by the european leaders summit. this is a critical week. the final week before greece ofes that june 30 deadline the fall. it is the end of the road or else the government goes bankrupt. we will be watching this closely. the markets are taking it in stride with gains for the euro and investors are optimistic that a deal will be done. contingency plans are being made and angela merkel for her part says there is still much work to

be done. she is cautiously optimistic. as for the greeks, the prime minister says the ball is now in the court of the european creditors. we will watch this drama as it continues to play out in brussels. yvonne: guarded optimism. we want your opinion. let's take a look at the other stories. here is sharing with the story. the pressure is mounting on the airbag maker. they were aware or should have known about serious safety and quality control issues as far back as 2001. he says the company even halted global safety audits to save money. the report was issued by democrats on the commerce committee and it was released and head of the tuesday senate hearing. senator bill nelson is the highest-ranking democrat on the committee said -- the more

evidence that they see, the more a troublingere is picture of a manufacturer that lacked concern. takada strongly refutes the findings. the report was based on 13,000 documents and the company says those documents had errors and some of the companies e-mails were taken out of context. at anotherake a look company who is investing in a green energy product that project in india. -- project in india. a $20 billion solar adventure. the project aims to add 20 gigawatts of power, about a fifth of india's goal. but prime minister is pushing to advance a clean energy output by fivefold in the next seven years but the challenge is finding the $94 billion needed to pay for

the clean energy overhaul. he says he will aim to invest $20 billion over the next decade with the pace depending on the cooperation he receives from india. chinese coke investor has resumed trading after being suspended earlier this month. this comes after the company says it seized talks with investors over new equity. last month, it became the second chinese company this year to default on u.s. dollar debt. a finding that the hong kong exchange of says it some parties are still assessing whether or not to invest but there is no guarantee a deal will be reached. insway has extended its packed with creditors until july 20. -- $13ed a $30 million

million deadline. another story we are following is how virtual reality may change the travel industry. check it out. coming up later, we will talk more about the $20 billion byian solar powered project unlikely compatriots. we will go live to moumbai for all of the details. the chinese economy does not seem to be contracting as expected. we will have the latest figures when trending business returns.

yvonne: welcome back. these are the stories making headlines. the yuan investigation of last year's conflict in gaza says there is evidence of war crimes on both sides. sherry: israel is accused of

failing to rein in its attacks. firing ofnate missiles by palestinian militants they also constitute a war cry. the u.n. has urged both sides to operate with an international criminal inquiry that may lead to what cases. i he played in southern pakistan has killed more than 200 people in three days as temperatures soar up to 45 degrees healthy celsius. the extreme temperatures coincide with ramadan. left supplies have also people without fans are air-conditioners. the governor of south carolina has called for the confederate flag flying in front of the state legislature to be removed. the flag is an integral part of the states passed but it does not represent the future. the white gunman who killed nine

black people in a trust in charge left week has been photographed waving the flag. president obama has announced he will attend the funeral of the emmanuel church pastor on friday. chinese manufacturing showing signs that the economy is stabilizing. pmi is coming in at 49.6. let's get reaction from stephen head of investment strategy. i am also joint by stephen engle also. the two stevens. -- theseeing more growth biggest number we have seen in four months. still in contracting territory. : that is going to have markets turn more positive in terms of the growth on china. the numbers are consistent with the set of numbers reported by the government two weeks earlier.

early signs of stabilizing. shouldnese winter stabilize for the third quarter but the overall global picture is still pretty weak meaning we do expect more stabilizing policies from beijing. : 25 basis points coming within the next week. is that along with what you're thinking? another 25 basis points taking it down to 4.85%. we do believe there will be more rrr cuts in the second half as well. the economy is still pretty weak. we should expect the deposit rates to be liberalized and the rrr cuts to go along with that to make sure that the banks are seeking proper stability. yvonne: we just got the trading starting here in the last hour. coming off of a very bad week. the worst week we have seen since 2008.

who knows what the direction is right now. do you think there is a bubble building? thaten: we are concerned it has moved about 2 trillion yuan. there are good signs in terms of the risks involved with every additional dollar built up in margin debt this year. it is better than what people are saying. collateral is used to cover the market debt. that has gone up by more than 50% so $2.85 for every market debt right now. in terms of market trading, as a percentage of daily turnover, that has come down. margin activities have been clamped down since january. these are good signs. been dropping from what we've seen in the last six months. >> how much is the risk of a

potential bursting of the stock bubble to the recovery that we are seeing in the economy? stephen: in the stock market right now we think that has not driven the affect that is triggering the consumer activity. we hope to see that move forward. we do not think that is the end of the bull market. we definitely do not see that as bursting them margin bubble. at the top, you have it still pumping money into the market. at the portfolio level, people are reinvesting in their deposits and other assets into equities. they are also focused on raising money for margin capital. >> now they are buying back. stephen: entry level for investors. yvonne: what effect are they looking at right now and where should we avoid? we do see some

encouraging signs in terms of middle-class consumptions. not luxury products. middle-class consumption has been growing positively. if you look deep into the retail luxury items have been down but a lot of the other items such as communications equipment, the iphones, the smart phones and the tablets have been growing tremendously in retail sales and that is a reflection that the middle class is really going in china. -- growing in china. ae health care industry has strong demand in china and that has been growing in the last few years. we do believe that beijing might be rolling out some tax closer to theting local meetings in october so that is another benefit for the interest sector. the discount? narrowelieve it will from where it is right now into the second half.

based on the channels we have been communicating. we believe that there has been increased awareness that hong kong shares are much cheaper than a shares. intermarket conductivity is rising and we do believe that people will be taking advantage of the discounts here. this is just a depth that will keep going up, can this uptick last until the connect extend? in?icks stephen: in three chinese equity markets, we like the a shares in shanghai, we think the of the -- the valuations are high. yvonne: moving forward, people have been talking about the a shares in shanghai, 4000, is

that the number we have to look forward to? could it possibly tumbled down to that number? the average daily move last week in shanghai was 3.5% so it doesn't take too much effort to drop down in a matter of days. is levels that we look at 3800. that is the average level that a lot of that has been soaked up in april. if it drops below that, many people will be turning into losses. that might trigger a lot more selling. >> margin calls are nasty. yvonne: watch out for that. thank you very much. next, saving lives on the roads. trending business is back in a moment. ♪

yvonne: time for a look at what is trending on social media. sherry joins us. we are talking about the olympics, 2020. surf's up. sherry: surfing is one of the sports. it is shortlisted for the tokyo olympics in 2020.

tokyo is a big baseball fan and softball fan as well. those sports have made a the 2020bid to be in tokyo olympics. as well as surfing and karate is there. surfers.t know any sherry: squash. these eight sports have made it to the short list. the ioc will decide by august 2016 right before the rio de janeiro olympics get started. let's take a look at what people are saying about those sports. beijing was in the 2008 olympics. japan is trying to get baseball back into the olympic or i don't think america cares about the great american pastime. care?re --do you surfing. thewinds are free and

seating is provided by beach chairs. i don't know what could happen with that. some people are saying that we should not test them for drugs. >> a new controversy to be had. sherry: another person says that sumo would be good. it is a great sport to watch. >> here in tokyo is really exciting. sherry: that was not on the short list of sports. >> controversial also because sumo has had its challenges. sherry: it has not been shortlisted. those eight sports now. people are going to make a presentation i think in a couple of months to the tokyo organizers to see what happens with those sports. >> hopefully, it will be a clean process. no corruption like we hear elsewhere. let's talk a little bit about sustainability because samsung is out with an interesting concept. this came from left field.

a new truck. the safety truck. here you'll have in the u.s. what we would call an 18 wheeler. samsung is equipping cameras in the front of these trucks. on the back.creens that is to help drivers behind them overtake them if they need to, if they are on country roads or narrow roads. make sure there are no animals. sherry: it is really hard to drive with those huge truck. you don't know when to overtake them. >> york the weed out and we've back in if there is not there -- you have to weave in and out. it is a good concept with great technology but a bad idea. watching the tv screen, i would have to agree. when that be a distraction -- wouldn't that be a distraction? genius but i don't think it will

be used. this person is talking about the business dynamics. spending the money on the system with no return. sherry: it benefits the people behind them. >> this is the best one of all. take a look. espn and samsung -- innovation and sports safety. thank you so much guys. taiwan's finance minister tells rise is good for asian exporters. coming up next, in trending business. ♪ ♪

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yvonne: the top stories trending the latest snapshot of manufacturing in china has beaten expectations. was 49.6.r june numbers below 50 still signal a contraction, further signs of an economic pickup could reduce pressure on policymakers. softbank is investing in a green energy project in india. the ceo will be working with

foxconn technology on a solar venture. it aims to add 20 gigawatts of power. the prime minister is pushing to expand clean energy output fivefold. greece has been given a 48 hour deadline. emergency meetings in brussels discuss new proposals from athens, but failed to produce a breakthrough. asian stocks have joined the optimistic rally. was later water down for athens demand for some type of debt relief. atit is time to look individual stories, corporate stories. composite -- was

down as much as 40% at one point. shares moving to the downside today on the back of news that -- no other details were given. shares are resuming and we are down 38%. this company and korea,orea, -- in south dabbles in renewable energy, 160% up-to-date. -- up today.

shipbuilding rising on the back t, and news, nc sof analyst putting out a rather rosy report for the company. let's shift to japan. one, over thethis past five days, on average up about 25%. the latest piece of news i can gather for this company was last week at the start of the run. an official at the trade ministry in japan said it will kimonoosing establishing day. officials would go to work in kimonos. that was after the last meeting of may 19. toshiba raising their -- erasing

their earlier losses. there has been an accounting investigation going on. nikkei is reporting that it may include not only chips and we may see a further reduction in profit. ¥55 billion is the amount flagged from the nikkei newspaper. i will leave it there. yvonne: we will return to our top story, greece, the markets are optimistic a deal will be struck. some players, including chancellor merkel, say a lot more needs to be done. clive, qa for joining us. i was reading your column. the only thing to rule out here is a happy ending. deadline,is 48 hour

are we finally going to see a resolution this week? clive: it is looking very -- like they will do some kind of deal. another sort of compromise, they call it extend and pretend. they will come up with something. it is not going to be a definitive solution to the problem. i think this thing will just go on and on. yvonne: the available choices run from bad to terrible. what you think will happen? clive: my guess is that they will come up with enough to roll over the existing bailout money and to begin talking about a third bailout program. there is sufficient will on both sides to do that. it does not actually definitively solve the problem. i think even on this scenario, which is the optimistic

scenario, the whole thing can still go pear-shaped. i am assuming they come up with something that lets the process continue. because there is no definitive resolution, i do not think the clouds have lifted from the greek economy. i do not think greek investors can plan in a stable sense for the future. say thethat is why i range of possible outcomes is bad to terrible. if they avoid grexit, that is good. but just continuing this endless process, this war of attrition, that is not a good outcome for anyone. , note: kicking the can going to be helping at all. how this all came about, did it have to be this way? dispute thatsonous

has gone on for years. at the end of the day, it is an easily solvable problem. clive: if you look at the numbers, they are not arguing about big differences. fractions of a percentage point in terms of the fiscal targets. an argument about timing, how quickly greece addresses the fiscal problem. the differences are not that big. the problem is a complete breakdown of trust. are they going to make these promises and the europeans, you know, they just don't believe saygreeks will do what they they will do. you have to have some sympathy. the offers coming from the greek side, it has been a shambles. people don't know what they are actually saying. they do not seem themselves to know.

on sunday night, sending a plan and withdrawing it the following morning. it is ridiculous. the substance here is small. that is why i am a bit pessimistic about the larger process. what has happened is a collapse of trust. this is not an argument about economic policy. neither side can stand the other and they just cannot get on and that problem will not be solved this week. yvonne: quickly, clive, if a default and a grexit happens, it can the eurozone cope? , at leasthink it can in the short term. that is why these negotiations have dragged on. a lot of people in europe saying a grexit should be allowed. the longer term,

though, the eu would regret it. it sends a message that the system can be dismantled. it is not irrevocable. in the next crisis, people will remember that. yvonne: we will see how things turn out. thank you for joining us live from singapore. troubled airbag maker facing more pressure, employees knew about quality control issues as long ago as 2001. up -- takata will have a chance to respond to claims at a hearing later on today in washington. the issue has led to the biggest product recall in history. some good news for samsung, the trade commission is recommending that it and qualcomm be cleared of patent infringement charges.

the case involves graphic processors found in samsung galaxy devices. goldman sachs says iron ore is heading back below $50 this year. rising supply in roselle in australia and lower demand in china -- brazil and australia and lower demand in china. central banks have been something on an easing spree as the fed is on the verge of raising u.s. rates. that is according to taiwan's finance minister. deborah, thank you for joining us this morning. you spoke to the finance minister, why isn't he worried?

>> i think minister chang is focused on the positive that a .ed right -- fed rate hike let's listen to what he had to say. if the u.s. raises interest u.s. economyns the is recovering at a faster pace. this would be helpful to taiwan week of the u.s. is one of our big export destinations. it would also be beneficial to other asian economies. facts,re short-term the but only short-term because long-term, the benefits to our exports will help boost our economy. minister also refers to the fact that a lot of capital has already been leaving taiwan and asia, starting from two years ago.

it is something he believes is manageable and the benefits would far outweigh the downside. yvonne: the taiwan central-bank meets this thursday. did he give any clues as to what the outcome might be? debra: the minister did not reveal what he is going to be saying at the meeting. we did talk about taiwan's economic outlook. and the relationship with china. let's have a listen again at what he had to say. >> the economies of taiwan and china are closely linked because china is our largest export destination. china's slowdown has a big impact on taiwan. in addition to that, in the past, taiwan was part of china's supply chains, china is trying to create a so-called red supply

chain. this will affect taiwan's exports. the red supply chain, taiwan's industries have to transform themselves and raise their competitiveness. : he is really talking about in addition to some of china's policy initiatives to change the supply chain, that would be in addition to any negative effects on taiwan's exports as a result of a slowdown in demand from china. all of these things on his mind as he heads into the rate decision meeting this week. yvonne: all eyes on thursday. thank you for joining us. australia wants to resume trade talks with indonesia after some high-profile diplomatic disputes left negotiations in limbo. thank you so much for joining us. how likely is this going to happen?

australia is seeking to revive trade talks. minister --ade there was a dispute over indonesia's use of the death penalty over drug crimes. a potential stepping stone to a free-trade path initiated back in september 2012. the relationship has frictions which include the disagreement over the execution of australian citizens and the latest claims that people smugglers were paid to turn back asylum-seekers. despite the ups and downs and political ties, they reached --

australia is looking to expand. indonesia is australia's largest export market for wheat and live cattle animals. australia purchases its petroleum. we might likely have a positive response in the near future. back onhope things get the table. coming up next, the art and science of coding. we are from facebook's head of display technology about her introduction to the digital language. you are watching "trending business." ♪

>> japan and the u.s. have begun separate military drills near disputed islands in the south china sea. china has been building on reclaimed reefs in the region. the philippines president has asked his neighbors to respond more aggressively to china's strategic80% of the waterway. taliban attack on the afghan parliament is being seen as the death knell for tentative peace moves. lawmakers escaped unhurt, but five civilian workers were hurt and 20 others were wounded. the al jazeera journalist arrested in germany has been

released. portland prosecutors confirmed -- berlin prosecutors confirmed he has been freed and did not provide any details. he has been convicted in absentia and germany has rejected egypt's extradition demands. yvonne: the ability to write computer code is a skill possessed by only a few. but it should not be that way. coding is easier than reading. >> what excites me about the future of technology? i am really excited about getting rid of the devices and communicating directly with human thought alone. i have done some work in this area and i think it is closer than many people believe it is.

and ie is mary lee jepson am known for my hardware design, 3-d design. i am best known for cofounding one laptop for child -- one laptop per child. computer was an apple 2 was 14ey came out when i years old. your smart phone is more powerful. it was so cool because you could slide the cover off and you could figure it out why breaking stuff and putting it back together. it was my parents very expensive computer so i was not supposed to be touching it. sometimes they were not around. my first line of code was hacking a version of pong and

changing the balls into smiley faces. when i got that to happen, i was so excited. the eyeball was in the wrong place and then it was over there. it was fun. a friend of mine said, when you look at somebody's code, it is like looking at the inside of their head. sometimes it is scary how messy it is. people think it is this hard thing. writing is harder, reading is harder. i think everybody should learn how to code. we have computers. you can do so much more if you use computers if you learn how to write programs, what you can do is profound.

yvonne: up next, solar potential, we take a look at why softbank is putting its money in india's green energy. live from mumbai after the break. ♪

yvonne: you are watching "trending business." softbank is investing $20 billion to boost solar energy in india. say it is about a fifth of the prime minister's goal, tell us more about this deal. one of the prime minister's pet projects.

they are keen to develop their renewable energy sector. the announcement by softbank, a joint venture in india for solar energy. with this ambitious target, the coming one of the largest green energy producers. manufacturem to solar panels in india. softbank bringing expertise in energy industry in japan to india. japan is the second-largest market for solar panels, after china. the solar ambitions, rooftop

projects. a large part of that target well be achieved by -- will be achieved by private participation. yvonne: thank you so much for that. let's go back to shery. the eight eyes on sports shortlisted for the tokyo olympics. baseball and softball shortlisted as well as karate and squash and surfing. given how popular baseball is in japan, it just seems right. another person commenting on surfing. -- a fan of harry potter, for sure. yvonne: we will see how it goes. edge."ned for "asia

-- greek government government is incompetent and failing its mandate. "asia edge" is next. ♪

>> with all due respect to apple, shake it off, shake it off. john: core lineup tonight, a poll, a paul, and a podcast. in the wake of the charleston church shootings, widespread calls for south carolina to cease flying the confederate flag.