>> it's monday, the 20th of july. this is "trending business." ♪ >> this is what we're watching. the rate cuts and the relaxed regulations seems to be working. lawmakers debate rea -- bailout reforms.

and losing luster. is sending to at least bullish on record. follow me on twitter. that is my handle. china and the hong kong markets are underway. kuala lumpur to starting off this week. >> a bit of a quite start this week. it is a little bit better compared to a while back. this one is what you want to watch for from the chinese market. .nd it is up 1%

it is a bit of a mixed act there. -- bag there. stocks on there way up. japan is shut for marine day. when i see marine day, when i talking about -- were talking finding nemo. ok. down.are on their way it is more toward six dollars. gold is down. 1,132.

this one is a big market story for the day. here is the two-year chart. that is really pulling down the aussie mining stocks. >> we begin with china. favorite of local investors. swings, they to be back on firmer foundations. >> that is certainly something to watch as the market gets underway. property prices are posting a rebound. that is positive news for the market. it underscores the effort to do -- the fact that prices are rising should generate confidence and translate that into stocks as well. the latest numbers show 33 out of 70 chinese city saw price

declines in june. it is significant in the context of how many saw price declines the month before. 41 in may. rising prices is an indication of a stronger market. third tier cities are seeing strength as well. it is encouraging across the board. start mouth it -- stock market route -- we do have some new developments from the chinese governments try to clamp down on this road of lending if you will. they had contributed to the stock plunge. it was doled out to ordinary investment. that led to that gain in chinese

stocks. and the government tightening control of online financing, there are 2000 of these in china. the security regulator will look to regulate these. they will be regulated by ciber czars in beijing. >> we will get a better look into that later in the program. greece has reached a make or break deadline. it has some money to pay the bill after a new bailout was approved. things could get better later this year -- or could they? >> it is july, 20. to adeadline was crucial default would have led to cooling support from greek lenders making a grexit a sure

thing you are should not have the funds to make that payment. the ecb last week increased emergency liquidity assistance. banks are set to reopen today. that is three weeks after they were set to prevent a collapse. capital controls are in place. limits on withdrawals are still in place. things might get that are for greece later this year. merkel told local media she's prepared to discuss a debt relief. take a listen. >> greece has been granted relief. private creditors were allowed a voluntary debt cap and extended credit terms. we could consider such measures again as part of the mandate. once reviewed successfully, we will discuss that very question. >> this signals the topic of

debt relief could be considered by the end of this year. it is not affected to come in the form of a haircut. the reduction in the nominal value is not compatible with european law. rates.d lower interest in greece, the prime minister is trying to consolidate his power after half of the austerity votes came from his own party. he reshuffled his cabinet. this raises the probability of snap elections in early fall. back to you. >> let's take a look at other stories we're watching for you today. here is the round up. >> good morning. the ceo has appointed a new management team to deliver a performance by the end of the year. the new team needs to kickstart performance and speed up decision making.

the 13 member panel will include the head of corporate commercial and retail banking, as well as regional and operational chief. it will be formalized by october. they will take responsibility from greece. peter stansfield to reverse the drop in earnings. barclays also reportedly ramping up the cost-cutting move. because more than 30,000 jobs over two years. let's go to the world trade organization. a major agreement over the weekend. on a list ofrorist products. a trillion dollars worth of global commerce here it will be the first significant deal at years. in 18

for the past week, members took on the question of various tariffs. chips, andclude beaded to game consoles, and magnetic resonance imaging machines would be cut to zero. we will know why friday if ministers will ok the agreement. finally, billionaires. remember the google stocks surge? investors sure enjoyed the weekend. larry page and survey brynn each sergeyd $4 billion -- $4 billion.cketed speaking of billionaires, lloyd link find has now joined the club. his network surged to about $1.1 billion. the bank has could drupal its

ipo in 1999. inquadrupled since its ipo 1999. it's real estate investment -- it at more than $600 million to the pile. back to you. are analyst to pessimistic about iran? that is on bloomberg.com. later on the program, a preview np key indicators with b& paribas. you are watching "trending business." ♪

>> a new week of trading gets underway. let's see what is on investors minds. let's art with a broad brush's strokes. it looks like the fed is moving to the front page. >> i think moving back to the front page. greece has definitely dominated the headlines. they're looking toward the u.s. economy. how strong is the u.s. economy went to be in the second half of the year? >> the look at the data. it is very mixed. what are you seeing so far? far --

far, where we will focus primarily is where we see revenue growth as opposed to earnings. as for what investors are looking for, the underlying economy. we focus back on the u.s.. investors switching back to another look at u.s. stock. there. -- there might still be some value there. >> we have noticed this wording of cash. arding of cash. >> it has a was been an issue.

there is a demand in the economy. if cash is not being used effectively, of course they will not get the growth they are looking for. the secondl see over half i think is a slightly better performance. therefore the lifting of rates and the acceleration of unity and good gdp and good turnover. china.e talking there have been wild gyrations. wild movements last week. re: over that worse when it comes to equities there? it the worst when it comes to equities there? >> i don't know what particularly is going on. the equity market has been a driver for them to try to get theirompanies to service

equities. i think volatility really spooked them. turn, we had a look at the chinese economy as one that would slow moderately. it is something investors should not be frightened about. new growth under the chinese economy is ago through their massive reform process. >> it is very muddy are clumsy as you put it. a created a moral hazard. >> it is a question going around. plan tried to

inform capital markets such that everything capital also through equity. from an outsider looking in, it does look -- what they have been doing is no different. lot of authorities have a different way of doing it. maybe a bit more clumsy in its approach. try to correct stability in the market. >> i'm wondering where you are -- he moment, >> oil prices are coming out to 12 month lows. prices.'t so strong for

i think it has been well priced into the market. we need to over will see the term in markets. we are not so bearish. it really comes down to a demand scenario to see if they could moderate at a reasonable pace. >> thank you for joining us. >> these are the stories making headlines from around the world. has triggered a 60 day review and intense .obbying by advocates they will me and vote on lifting sanctions that were aimed at forcing iran to reduce its nuclear program. the catholics expect it to talk about the move, but it will come into -- if they meet their

commitments. taiwan has its first e-mail leader after they nominated a woman to run for president. will face and upon it -- face an opponent from the democratic party. fifa ball layout plans for the governing party leader today. meanwhile, former vice president has pleaded not guilty to corruption charges in new york. he is one of seven senior officials being indicted for corruption and world soccer. -- in world soccer. >> new regulations for australian banks when we return

after this short break. ♪

rishaad: all speculation the least bullish on record -- gold

speculation the least bullish on record. put them together. they are after lowest. tables may be turning for russia and china. the russian economy struggled in , investorshere today , rush appeared that is not far behind the benchmark. risk-adjusted returns in russia have been outpacing those of china. with indian prime minister is turn to overhaul labor laws. they're calling for a nationwide strike. they oppose plans to merge laws into four. it would simplify the hiring and

firing process to make it easier for openings to do is this. they are requiring that countries told williams of capital as of july next year. it is meant to protect them from future shocks and make them one of the most secure in the world. what did this change is actually mean? >> in a nutshell it means the themour banks -- five of -- the regulator wants to increase the risk waiting on mortgages from 16 up to 25%. the amount varies from bank to bank. they would probably have to to raise about 3 billion each. shelley and banks got a hit on the eight ball on this.

we see a lot of the banks of positive territory despite this announcement. it was shadowed -- foreshadowed way back. the regular has been talking about it since. it is no huge's shock -- it is no huge shock. that to make it one of the safest in the world. after the soaring highs -- a housing oversupply on the horizon now. >> yes. it is often the reason, but it really depends on where you are. d.ere has been a record perio

they say it gradually slowing down over the coming years. be will have a housing surplus. in sydney, unlikely to be as much really for the economy growing strongly and the housing undersupplied likely to remain. it is a geographical question really. thanks a lot for that. china has been criticized for having an overbearing influence. .t is responding we bring you details as well as what is happening in shanghai as they get underway. ♪

rishaad: china tightening its grip on online lenders for criticism they may have contributed to the recent stock market row. internet finance lenders will need approval for both financial and cyberspace regulators. greek banks have reopened after being closed or three weeks to prevent a -- closed for three weeks to prevent a run.

the daily limit will be replaced by a $450 weekly maximum. prime minister alexis tsipras announced a new cabinet. the imf says repeated calls for imf issues -- the repeated calls for debt relief. "the times" pointing to people familiar with plans, saying that more than 30,000 staff are due to be cut over the next two years at barclays, after the chief executive was forced out. hong kong and shanghai about to get into the starting gate. the 3.5% pop off on friday for the shanghai composite. we are seeing a bit of weakness at the start of trade. checking in on property shares.

zeb will talk about this in just a few moments. it is worth noting -- some great day to hear from our great data here from our colleagues. you have a lot of inventory there that these developers will have to go through. real estate up 4/10 of 1%. earnings unsurprising, 255% pop year-on-year. first-half net income, down. an upgrade from ubs to neutral. macau casino share expecting a first-half net loss. the stock is suspended. it.let's mention

it's a bit funny. there was a declaration of a dividend. it was 100 times more than it should have been. kong.hong spot 80d have been 1 hong kong cents. do they have to stick to it? ise, they would have wiped away every single piece of retained earnings if they had stuck by it. the stock is suspended today. rish, back to you. rishaad: our top story, china's improving property market has been a longtime favorite of local investors, one of the few ways people could get some big returns. with the recent stock market

swing, property seems to be making a slight recovery. zeb eckert here to explain more. it's on perhaps firmer foundations? yes, irmer foundations, like that. the structure of the market is improving. the numbers there this out. thishe numbers thebear out. cities surveyed in china sawof june in price declines. that's fewer cities seeing falling prices. more are seeing prices rise. rishaad: what more was said? biggest strength -- they see the biggest strength in shenzhen and shanghai. the second-tier cities have

rebounded in the property market, which shows the government's stimulus efforts appear to be working. rishaad: there is huge volatility. easy cash, margin lending. the regulator needed to do the second-tier cities have rebounded in the property market,something. zeb: that's right. bubble territory, if you will. $350 trillion of margin lending at one stage. run.tock increased, 150% it was built on the back of margin lending. investors didn't necessarily know where they were getting the money or the risk involved. rishaad: a lot more challenges ahead here. >> there are. shall we build on -- rishaad: let's get some background. a year ago, we were talking about shadow financing. mysterious ring -- thing this was. you kind of wish that shadow financing was back. >> taking off on what zeb said in terms of the margin debt, back 2 1/2 weeks or so ago, we were at $364 billion in margin debt outstanding. now we are down to about $230

billion. it has dropped a chunk. 2.5% of market cap. you still have to keep in mind it is 6.5% of free flows. most stocks are freely trading again. it's about 7.5% of actively traded. rishaad: we so big moves -- ew we saw big moves. is it sustainable? we just don't know, do we? tim: there are couple things that strike us. small-cap continue to be at the forefront. they led on the way up and on the way down. now they are leading on the way up again, up 24%. you can see the shanghai 380, up 180, larger cap, only 12%. there is a small-cap skew that plays in performance as well as evaluation. rishaad: it was a disappointment

to begin with. we saw the northbound train together a bit of speed. gather a bit train of speed. a huge discount still. tim: still a huge discount. it narrowed somewhat, but not to a huge extent. the average premium now of the tradingting, a and h, on both sides of the border, is 110% now to the a. translate that into an earnings multiple for valuation. basically, you are talking double the multiple, about 25 times -- rishaad: h is decidedly cheap. tim: it's much more of a disconnect than a connect, if you want to think about it in that context. we've looked at 10 bellwethers

that trade on both sides. 10.5 times earnings versus 18 times earnings, icbc's, the petrochina's of the world. think about it, state support has been propping up a's. there has been no equivalent support here. the divergence since these measures went into place has taken off. time, has not lasted long, but there still is not a direct arbitrage mechanism. it will take some time, in some form of another, and history report -- repeats, this won't be there. rishaad: thank you very much. if you want to look at that story anytime, anywhere, have a look at the bloomberg plus mobile at -- bloomberg+ mobile app. we have a check of some other stories we are watching for you. a drop in sales, the first in a

decade. china sales have slowed this year as the economic deceleration continues. more cities have put a cap on the number of new cars. diverting funds from major purchases, like motor vehicles. four -- first report from the accounting review may suggest the irregularities may have been intentional. it has lost billions since it's withdrew -- since it withdrew its earnings forecast. toshiba will offer a summary vision -- version of the report at a news conference this evening and will publicize the full resort -- report tomorrow. stake is being spun off into a new company. the move was first announced in january. the company will be

independently traded and will hold about 15% of alibaba's shares. yahoo!'s small business division will also be part of that new entity. english football's top teams have been in singapore for the annual barclays asia trophy. correspondentasia talks about how important the asia-pacific is to the club. >> for us to reach out and connect with that enormous fan base we have in asia is an absolute priority. it's a priority for our growth as a football club. we would be very foolish if we ignore that. we need to be at the top level. we have to continue to encourage and grow the fan base that we have out here. right to sayi there is greater pressure to feed the frenzy, so to speak? maybe more international

tourists, including asia? ivan: we have limited resources. the way the football schedule works, it is getting tighter and tighter. this summer window gets shorter and shorter. for us to find the windows in which to come to visit all the locations we would love to visit is a real challenge. haslinda: it's become a very expensive business. you need deep pockets to sustain a successful football club. new income streams are needed. do you see any new income streams coming your way? ivan: arsenal has always been a club that looks ahead. we did that when we developed our new stadium. we were at the top of the game when we started that project, which we knew was going to be a very difficult project. it was an incredibly ambitious and forward-looking move. we need to do to be relevant and at the top of the world's game 10, 15, 20 years from now, and a critical part of that is how we

engage with the global audience that we have. is challenging for us -- it is challenging for us. 350re going to be around million pounds, 400 million pounds, and most of that money is used on our players, on our squad. the resources we have to really connect out here -- it is impossible in a region of this size for us to be able to do that on our own. it is critical for us in that mission, the partnerships we develop with people like emirates or puma. we did a launch in singapore the other day. these types of ways of connecting with the fan base, which are mutually beneficial, going to be the way forward for us. rishaad: we've been talking about gold having the least bullish calls on it for -- since 2006, when records began. david is having a look at --

we are under serious pressure again. david: owner -- over the last few minutes, the gold price did this, about a $30 per ounce drop. lower,ted out the day and now we are trading around 1100. we broke below some very key support levels. i was going to go through what we were supposed to be watching this week, but we blew past that. the next one you should be watching, 1084. 1084, that takes us all the way back to march 24, 2010. we are basically at the lowest level right now from march 20 5, 2010. as -- march 25, 2010. as rish pointed out, speculators gold, sincellish on

they started keeping records about nine years ago. people were positioning -- they started buying these prices that would actually give out money when you saw declines. 1100 right now for gold prices, down 3%. we will continue to follow this. let me show you what's happening with these mining stocks in australia, under pressure this morning. they started keeping records about nine years ago. people were positioning -- they started buying these prices that that's how the asx 200 looks. let's get in there. one more. one more. there we go. suffice to say, it's not good. down 7.5%. the drop in bling. rishaad: up next, going to get a head start on what to watch this week with the risk imposed by both greece and china seemingly reduced for the time being. ♪

shery: welcome back. these are the stories making headlines. it's a be she has become the first japanese -- mitsubishi has become the first japanese company to apologize for using pows for forced labor during world war ii. there is a statement of regret. anpaigners say it is important gesture ahead of the 70th anniversary of the end of the war next month. hadns of cuban protesters been arrested ahead of monday's reopening of the u.s. embassy -- have been arrested ahead of monday's reopening of the u.s. embassy. the office known as the u.s. interests section will be the first american diplomatic presence in havana in 54 years. stars won't be flown officially until august.

a surfer has survived a terrifying encounter with a sharp and lived to tell the tale -- a shark and lived to tell the tale. closeark came too for comfort. the server was knocked from his board -- the surfer was knocked from his board before he was pulled to safety. rishaad: let's have a look at what to expect during the week ahead. richard is the chief emerging markets economist at bnp paribas. after the three works -- weeks that were, last week was a bit calmer. are we going to see further calm? >> i think that's right. slightly better news out of greece and china. i don't think the problems in either of those situations are necessarily fixed for good, but i think we have seen risk

truncated. that's the key dynamic that the markets are trading off. the mix index, the measure of -- the vix index fell to its lowest level this year on a friday, under 12. that's consistent with greater risk appetite in markets and more of renewed focus back on the u.s. and the u.s.'s superior fundamentals. rishaad: not that much in the way of data from the u.s. >> we think we will get liftoff this year by the federal reserve. i think that was the key message from fed chair janet yellen in last week's testimony on capitol hill. the date remains uncertain. i think our take is now that the anway for the fed tofor september hike is maybe a little too short. probably december now. rishaad: i'm going to put it to

you that that's not going to happen because she would be scrooge then, wouldn't she? >> is certainly not the person -- it is certainly not the perfect time to deliver a rate hike in more than a decade. but if not december, then i think we are really talking march next year, which is a very long time away. given the pretty healthy fundamentals of the u.s. economy. rishaad: let's get back to china. i think the big east pmi coming out as well. this is the flash pmi number we are likely to get. on manufacturing, i should say. >> that's right, the flash pmi manufacturing data on friday, right at the end of the week, but that's going to be the first guide to how things are panning out at the start of the third quarter. data we got last week for q2 in china was ok. the bottom being put into the economy, some pickup on infrastructure. concern is that a lot of the improvement was driven by the stock market bubble, which was a

big contribution to gdp growth from financial services output. will that last going into the second half? probably not. probably on the back foot again moving into the second half. rishaad: which we keep looking at, the pmi, the manufacturing, but the service half of the economy has grown so much now. by some measures, and a lot bigger than manufacturing -- by some measures, quite a lot bigger than manufacturing. don't you think we should be looking at those numbers more than we used to? richard: absolutely. growing pretty strongly on the back of the stock market bubble. the problem is that china, historically, the service sector has just been too small. the economy has been dominated by industry and investment. changing very slowly, which is the good news on china. but it probably could be changing more quickly. rishaad: just before the break, we had david looking at oil prices -- gold prices, plenty --

plummeting 3%. it wasn't a gradual move down, it was a cliff. what does that tell us about the dollar and why people are getting out of gold? richard: it's back to that point we were making at the start of the segment. some of the risks for the world economy, the meltdown in the chinese stock market, the grexit -- those risks have significantly attenuated over the last week or so. finally like we will get the normalization of u.s. monetary policy this year, which is feeding a stronger dollar. that's a key theme in dollars -- in the dollar right now. negative in gold price, downward pressure on commodity prices in general. heavy pressure once again on the oil price, hugely significant to the asia region. rishaad: richard, thank you so much. up next, going viral. prompted accusations of a publicity stunt. "trending business" back in a

couple of minutes. ♪

rishaad: we look at what's trending on social media. a bizarre story here coming out of this. a sex tape shot inside a beijing store. this video has been shared millions of times. at least seven out of 10 top 10 lists were about this this past week. the internet figured out who it was, where it was shot. a very popular place in beijing. it became a tourist attraction. a lot of folks going there and taking selfies. there are people on internet o of using this as

a publicity stunt, that it was staged. at the end of the video, people were talking on loudspeakers. they said it looked too staged. uniqlo put out this statement. the brand is saying -- denying all of this. a are highly concerned about the information circulating -- they are highly concerned about the information circulating online. in regard of the online discussion that it is a marketing strategy, they firmly issue a denial. five people, including the couple, have been arrested, according to some reports. very interesting and bizarre. shery: these ghost airports in spain. a chinese investment firm has brought the airport, don quix ote. this is a symbol of spain's boom and bust. this is now being sold for only 10,000 euros, $11,000, when it

cost $1 billion to build. yvonne: i wonder what they are going to do with it. rish, back to you. rishaad: remaining cautious on mainland stocks. expecting more selling ahead. that's next. ♪

rishaad: it is monday, the 20th of july. i am her shouts along it. am rishaadching -- i salaam it. you are watching "trending business." here is a look at what we are watching. that's a relief. greek debt restructuring is in the headlines as the german chancellor things can be discussed in the future. the banks are set to reopen, though capital controls will stay in place. china's property market has seen gains in more than half the cities monitored in june.

to rate cuts and relaxed regulations. the glow is fading. likelihood of a rate rise this year, sending gold bullish. do follow me on twitter. i am @rishaadtv. about gold. this in the last 15, 20 minutes, price a 3% fall for the of the spot precious metal. a slight recovery. david: a little bit of a recovery. we are down under 2.5%. at one point, 3%. it took us below $1100 an ounce for the first time, going all the way back to march 25, 2010. let's see how long these support hold. look at the silver, for example. platinum is getting whacked, as well.

i believe it was down almost as much as 4.8 percent. we can talk about these macro reasons people don't need gold. you have housing starts. plus, you had the china data, which came out friday afternoon. the pboc, surprising just about every single analyst with a very small -- it was the first time in six years they updated the amount of gold they had, as far as orders were concerned. up 57%. about 100 metric tons per year. people were expecting doubling, even tripling of that amount. it is certainly an underwhelming amount from the pboc. there we go, gold prices. silver is also down. i think we are firmly below $15. what is the spill on the fact? this is how asia is looking. basic materials -- those are the the aussie stocks --

miners lift. you have the chinese names in the mix. .ew crist there's your chinese name, as well. don 1%. that's the story so far in the markets. rishaad: two greece where there is a glimmer of hope as banks reopened three weeks after they were shut for fear of a collapse. things might get even better later in the year. germany has hinted debt relief might be in the cards, as sher : explains. shery: banks are set to reopen, and today, capital controls and withdrawal limits remain in place on greece. life is nowhere near to coming back to normal. the daily cash withdrawal of the equivalent of $60 will be replaced by a weekly limit of $455. a little bit of a boost, but transfers abroad from greek accounts are still banned.

the athens stock exchange will also remain closed. as you said, there is a glimmer of hope. things might get better for greece later this year. said she iserkel prepared to discuss debt relief once athens successfully completes the first round of the new bailout. that is a hint that the topic might be considered by the end of the year. debt relief is not expected to come in the form of a haircut. european leaders say a reduction in the nominal value of greek debt would not be compatible with european law. other options could be lower expansion.tes or an in greece, the prime minister is trying to consolidate his power after half the anti-austerity votes came from his own party. alexis tsipras reshuffled his cabinet, and analysts say this raises the probability of snap elections in the fall. back to you. rishaad: we will have more on this story later. we want your opinions. tweet us your thoughts.

let's get to china. the government appears to be succeeding at stimulating its property market. that's coming at the same time they've taken swift steps to limit excessive learning. the regulators in china, both the cyberspace regulator as well as the financial regulator, taking a close look at these online lenders, the lenders that provided the margins financing to finance the recent stock market rally, the blockbuster, world-beating rally that led to a $3 trillion rout. it was managed by local toestors, borrowing speculate. now the government, trying to tighten controls of online financing. it says it is looking to develop healthy industry growth, but it wants to protect consumers. there are 2000 such platforms like that in china.

tighter regulation ahead, that may include monitoring, oversight, as well as disclosure, making sure consumers using these online platforms know what they are getting into and know what will happen when the loans are called in. we had news this morning that stock trading suspensions, they are totaling about 22% of total listings. 633 company suspended from trading just after the open of exchanges today. that is down from 635 at the close friday. we know this all of course is part of the government's effort to prevent a significant dislocation in the market given the fact that this margin lending has been so excessive. one final note. the property market, despite concerns, is showing signs of progress. the government has been very clear in stimulating the chinese property market, because it has been the key way chinese investors seek yield absent other opportunities. the property market is posting

price gains in certain cities. shanghai and shenzhen, leading the nation in terms of price gains, and shenyang, among the second tier cities doing well. 33 out of 70 chinese cities saw price to clients. that is down from the month of may when 41 saw prices decline. it signals, according to a sustained market trend. take a closer look at property developers. they go hand in hand. we know property is so popular in the chinese mainland. rishaad: let's have a look at some of the other stories we are watching for you. yvonne: here is you've on. yvonne:yvonne: good morning. bill winters has appointed a new management team to deliver a performance plan by the end of the year. in a statement, winter says the new team will kickstart performance. the 13-member panel will also include the head of corporate,

commercial, and retail banking, as well as regional and operational chiefs. winters will take responsibility of all three of the firm's client businesses from rees. his predecessor peter sands failed to reduce a drop in earnings and a stock slide that wiped out one third of sandro's market valley. barclays will be ramping up its cost-cutting moves, sources telling us the bank may cut more than 30,000 jobs over two years. that would shrink the workforce by 25%. switching gears to the world trade organization -- major breakthrough agreement over the weekend. trade negotiators have tentatively agreed to eliminate tariffs on a draft list of technology products. we are talking $1 trillion worth of global commerce. u.s. officials say this would be the first significant tariff-cutting deal at the wto in 18 years, opening overseas markets for some of america's most competitive companies and workers. for the past week, members took

on the question of various tariffs, notably lcd see -- screens, which were contested by china. chips, video game consoles, and magnetic residents imaging machines would be cut to zero. we will know friday if trade ministers will ok the agreement. let's talk about google. investors enjoyed the weekend. surge, $65 billion in market cap. cofounder larry page and sergey brin each pocketed $4 billion. there fortunes have grown -- their fortunes have grown 21%. google beat earnings estimates and is the biggest one-day gain for a u.s. company. speaking of billionaires, lloyd blankfein has joined the club. the goldman sachs ceo has seen his net worth surge to about $1.1 billion as the bank has quadrupled since the ipo in 1999. blankfein has a stake in the

company worth nearly $500 million. his real estate investment that as more than $600 million to the pile. back to you. 'sming up later, volkswagen china sales have fallen for the first time in a decade. rishaad: we will take a look at the road ahead for foreign carmakers. up next, the lsa taking a cautious of by on mainland stocks. here from the head of china and hong kong strategy. stay with us. ♪

rishaad: let's get you back to our top stories. china's home prices are continuing to show signs of a pickup in june. the improvement comes after several interest rate cuts and the relaxation of property curbs. joan,joined by francis the head of lsa is china's hong

kong and china strategy. >> i think the property market is doing better, because government has promoted it. even though it's doing better now, it needs to do a lot better. what they are trying to do is boost property investments, which has been a drag on the economy. rishaad: that may also take money out of the stock market, couldn't it, and lead to that situation we have where people are getting into stocks because they can't make any money made on property. >> that's very prospal. >>it wouldn't necessarily be a bad thing. supporting a market around 40 times pe. you want the market to rally. rishaad: it's the moral hazard, isn't it? they've drawn a line under where the market effectively is. where is the line on the upside? >> that is going to be very difficult. thate end of the day, issue cannot be at such an elevated level. rishaad: your contention right now is, you've got a be cautious

on what is going on in the a sharemarket. if you had to be invested, what do you look at? inre are some many things the structural reform pipeline, and we haven't seen it. >> one good way of looking at it is it's the bad stuff that is slowing down. the good stuff, like the consumers and the property fighting, the internet space, i think these have good things and reasonable valuation, but it's much more bottoms up. you have to avoid these hyped up, somatic stocks. rishaad: what do you think of banks? >> banks are relatively cheap. the one good thing the government did was the pboc coming in and backing up the local governments. rishaad: you talked about some of these companies have in reasonable valuation. could find one in the hr market but at a significant discount. , theep talking about this

idea about connectedness. if anything, we've gotten wider. the a sharemarket, the government is buying. a lot of people want to follow the government. more -- if have much you are a fundamentally long-term investor, i think you would be much better on the issue market. rishaad: how important is shenzhen? >> very important. it's part of the capital opening. this will lead to more reasonable valuations on the mainland market. rishaad: you saw the growth number last week. bang on 7%. everybody went, really? what did you make of it? >> i don't think people really dug into the numbers. if you dig into it, a lot of it was boosted by net exports, which is weak imports. is what giverts you a bump in the numbers.

that was one of the biggest drivers. rishaad: you look at leak at chang. about 3%, 3.5%. >> i think you can get somewhere around there. there was a big pickup in june. we do our own proprietary index, which says about 6% in june, but it was week in may and april. rishaad: we have had a significant loosening of monetary policy, and many people saying it's going to continue. is that where we might see more stability looking forward to the second half? >> exactly. all the government is trying to do is cushioned the slowdown. there's no way the government can re-accelerate the economy. that is hoping for too much. the economy was really weak, especially in april and may. we are only seeing that bottom out. rishaad: in the absence of data, how would we know that things are going deeply wrong in the chinese economy?

>> i think you saw anecdotal data or data like the physical data, which looks at cargo growth, electricity production. these are supply-side indicators. it gives you a correlation of what is happening in the real economy. rishaad: that index takes into account things like that, and railroad freight numbers, as well. >> those won't give you a number anywhere close to 7%. the service sector is less common in terms of the industrial indicators, and that is the biggest contributor to growth. it's actually creating a lot of jobs. maybe that's the good part about this, the adjustment. rishaad: great to have you on the program. zeb: time for a check on stories making headlines around the world. president obama has sent the iran nuclear deal to congress, triggering a 60-day review and intense lobbying by advocates and critics. the un security council will meet later today to vote on lifting sanctions aimed at

forcing iran to reduce its nuclear program. the council is expected to approve the move, but it will only come into force when inspections confirmed tehran is meeting its commitments. to have its first female leader after both major parties nominated women to run for president. the nomination follows novembers record election defeat when the kmt handed over half of its municipal and county seats to the dpp. mitsubishi has become the first japanese company to formally apologize for using pows as forced labor during world war ii. speaking in los angeles, senior executive heck karo tempora offered a statement of regret to a former american prisoner, 94-year-old james murphy. campaigners say it's an important gesture ahead of the 70th anniversary of the end of the war .

-- end of the war next month. whoe recognize that pows worked at mitsubishi mining came not just from the united states but britain, the netherlands, australia, and other countries. i had an opportunity to meet with the son of a former british pow here. we want to extend our apologies to others, as well, when the opportunity allows us. next, we are finding out how a ghost airport in spain is about to come back to life as a european hub. ♪

you are watching business." the indian prime minister is facing new dissent as he tries to overhaul labor laws. the country's biggest union is among other groups calling for a nationwide strike in september. they oppose his plan to merge 44 labor laws into just four. he says it would signify the strict hiring and firing press and make it easier for companies to do business. the tables may have turned for russia and china. china seemed a better investment choice earlier in the year as russia struggled with a fall in currency. say,, investors from gan by russia pure the moscow index, gaining 18% so far this year,

not so far behind the benchmark index in shanghai. risk-adjusted returns in russia have been outpacing china. off its vacantn alibaba into a new company or the move was first announced in january and is expected to happen in the fourth quarter. the company will hold about 15% of alibaba's shares. yahoos small business unit will also be part of the new entity. let's have a look at what is trending. here is yvonne and sherry. yvonne: we are talking about that bizarre story coming out of unico -- uniqlo invasion. a sex tape was shot. we aren't sure who distributed this video, but it was shared millions of times on wechat. it became the top trending topic on weibo.

it's also become a tourist attraction, people going to the store and a popular area just to take selfies. shery: who are those people? yvonne: they figured out who this couple was, where it was shot. at the end of the video, you can hear the speaker, someone talking. there are people accusing uniqlo of staging this, saying this was a publicity stunt. niqlo has said, no, absolutely not. it was also uniqlo, those three characters, censored on weibo. say they are highly concerned about the incident and has reported the incident. regarding the online discussion where the incident is, one of uniqlo's marketing strategies, we firmly issue a denial. beijing police have started an investigation, and we've heard five people, including the couple, have been arrested. shery: i'm not sure if you would

want to be linked to a sex tape. [laughter] yvonne: we are talking about a ghost airport. quixote, in the middle of europe. this could become a hub for chinese firms in the heart of europe. ciudad real. in it was shutdown three years ago. it's a symbol of spain's construction boom and bust. it cost $1 billion to build. do you know how much a chinese investment firm is buying it for? 10,000 euros. that is around $11,000. that is less than 100,000 times than it cost to build the airport. there has been a lot of buzz about this airport. chinese firms, gaining ground in europe, in spain. not the only airport being bought there in spain. yvonne: i read they are still looking for bidders if you can do 70%. shery: 70% or something like that. yvonne: that was a look at what is trending on social media.

if you use twitter, it's easy to stay in touch with us on "trending business." rish? rishaad: before we take a short break, we've got a chinese superhero making big news when it comes to cinema. yeah, there may go. marvel's new film is called taking $58 million. the movie features actor paul rudd who plays a master thief. he discovers a soup that allows people to shrink and tries to protect it from getting into the wrong hands. it learned less than movies such as "captain america" and "thor." let's have a look at what is happening market-wise. let's have a look at the asia-pacific, hong kong, shanghai. the shanghai composite, building on the gains we saw through the course of last week, which helped to erase some of the losses we saw previously.

just above that psychologically important 4000 handled by a couple points. hang seng, just a gain. the premium is getting higher between h and a shares. 25,493. that is the seoul kospi. aboutgapore, a gain of 0.5%. coming up, china responding to criticism that it has too much control over the markets by introducing even more controls. the details, right after this very short break. ♪

rishaad: a look at our top stories. greek banks will reopen today three weeks after being closed. return --ervices will basic services will return. 60 euros will be replaced by a weekly one. tsipras announcing a new cabinet. -- germany says it might

be possible. china is tightening its grip on online lender's. on pboc introduced new rules saturday aimed at promoting healthy industry growth. the wto has stepped closer to a deal on cutting tariffs on tech. technology agreement will go back to member countries for approval with u.s. officials . tokyo not trading today, of course. it is a holiday there. shut today. is also tokyo is closed. marine day.

ok. the market story, precious metals, gold, silver. let me show you what the fallout has been. 14% drop, some of the big mining names in australia. it depends how low and how long we stay at these levels. platinum.er, and these are the prices. these are in ounce. silver, platinum, and gold. we are down 2%. at one point.% that is your sudden drop. that is about 86. we started at about 32.

that is a $45 per ounce drop. about 110. to even before today, the trend has been clear. that is your two-year chart. lower and lower and lower and lower. story, the stock traded in hong kong. it is extended today. the company also correcting. i do not know how to explain this in a diplomatic way. there was a typo error, they declared a dividend which should have been -- it was 100 times more than it should have been. they are saying, it is not that

big. do not get your hopes up. shares suspended today. rishaad: quite a big mistake to make. let's get back to greece. make or break reimbursement deadline finally coming. some money to pay the bill. some of the bill, i should say. a new bailout approved last week. the latest on the country, what have we learned? angela merkel softening? reliefng hints debt could be in the cards. she is still saying, not now. she is prepared to discuss the topic once athens success it -- completes the first round of the new bailout. chancellor merkel: greece has

been granted relief, private creditors were allowed a voluntary debt cut. we can consider such managers -- measures again. we will discuss the very question. shery: relief talks could come by the end of the. haircuts, debt relief. shery: exactly. not a reduction. , writing down about 30 to 40% of the debt, that would go against european law. not just her, but other leaders saying that would not be compatible with european law. other options on the table are just lower interest rates or immaturity extension.

-- or a maturity extension. handlinghow is tsipras that? shery: half of 64 lawmakers voted no on that bailout package. faces the risk of losing control of his own party. what he did was to reshuffle his cabinet and people are saying, he will try to cement and consolidate his power in the coalition. the reshuffling of his cabinet races the probability we could see some elections in early fall. rishaad: ok, let's move to china. tightening its grip on online lenders. pboc introducing a number of new rules on saturday. aimed at promoting healthy industry growth. let's bring in the director of

research. more than a few challenges ahead, let's put it that way. >> it seems like we are getting right back to where we were, only several weeks ago. the state of play where we are getting multiple chinas within a context of the market, with small caps going crazy relative to large caps. , it is upai 380 index more than 24%. the shanghai 180 index up a healthy 12%. i was looking just before we came on, they are -- there are a dozen stocks above a billion dollars in market cap in the shanghai 380 now up more than 60%. rishaad: it is deja vu, isn't

it? tim: if you break down the shanghai composite between the top 100 and the other thousand, it is trading at 17.5 times earnings. there are three sectors that are trading below on a median basis. the rest are trading at a multiple of over 33 times forward earnings and you have tech and health care and consumer staples trading at 35 to 45 times. it is crazy. rishaad: talk about these games we have seen -- gains we have seen, is this a trend in place? it could just go the other way. moodovernment certainly no to let it.

see they would love to a transition from a retail friendly market to a sustainable global institutional market where people have options for real savings and investment. we are not seeing that dynamic at this point with these types of frenzied markets. it has chilled out a little bit. that would make me feel a little better than the frenzied rally. somead: let's check in on of the other stories we are following. lockheed martin agreeing to buy the world's biggest maker of military helicopters. the price tag, north of $8 billion apparently. expected to announce the buyout today. it would be the biggest-- aerospace acquisition in years.

toshiba said to release the first report from its accounting review today. local media says initial findings may suggest that irregularities may have been intentional. forecast in may. nikkei news says the president may step down in december to take responsibility. deliveries way down by nearly 4%. china sales slowing the sheer as the economic continues. more cities but a cap on the number of new cars on the road.

let's take a look at what is going on with the recent stock market swings. lossesdence that the are playing out when it comes to people and these big-ticket items? steve: the stock market has very little to do with auto sales slowing down. down since the beginning of the year. year to date sales are only of 5.5% compared to last year up 10%. if the consensus thinks for the full year, sales will be up 5%, what we are looking at in the next six months is pretty flat sales. rishaad: if we just look at june 4%, one of the biggest carmakers in china.

only one? steve: it does not look like vw is the only one. gm's sales only up 4% year to date. rishaad: still up. steve: but slowing down. sales only flat year on year. if you look at domestic automakers, they are the story. all kinds of new products coming out, especially the suv segment. rishaad: what about -- what do we expect from these carmakers? steve: the profitability of these automakers will suffer this year. as you know, sales have been

slowing down. inventory has been rising. what automakers have to do is cut production. that will drive unit costs higher. increasing incentives. profitability will have to come down. if you look towards -- i would not be surprised if they continue to come down. rishaad: we are going to hear from the man behind one of england's top football teams. ♪

cuban protesters have been arrested in havana ahead of monday's reopening of the u.s. embassy.

office will be the first american diplomatic presence in havana and 54 years. the stars & stripes will not be flown at the building until an official ceremony in august. an australian pro surfer has survived the terrifying encounter with a shark. he was competing in the final of an event on south africa's eastern cape. he was knocked from his board, but was not hurt. he was pulled to safety. >> it just kept coming at my board. i was kicking and screaming. fins.t saw i was waiting for the teeth to come at me. i plunged it.

-- punched it. he may also announce a date for the election of his successor. jeffrey webb has pleaded not guilty to corruption charges in new york. he was released on a $10 million bond and will live under house arrest. he is one of seven senior officials indicted for corruption and bribery in world soccer. rishaad: english football teams -- the annual barclays asia trophy. southeast asia correspondent haslinda amin asked the chief executive how important asia is. >> for us to reach out and connect with that in norman fan base in asia -- in norman fan fan base inmous

asia is a priority. we need to be a club that competes at the top level of world football. we need to grow the fan base we have. become a very expensive business. you need deep pockets to sustain a successful football club. needed.me streams are do you see any coming your way? >> we have always been a club that looks ahead. we were at the top of the game when we started the project, which we knew would be a difficult project. what we are doing now is looking at what we will need to do to be relevant and at the top of the world's game 10, 15, 20 years from now. a critical part of that is how we engage with the global -- it is challenging for us because as a football club, our revenues

are relatively meager. we will be at 400 million pounds. most of that money is used on our players, on our squad. the resources we have to really connect, it is impossible in a region of this size for us to be able to do that on our own. critical for us are the partnerships we can develop with people like emirates or puma. these types of ways of connecting with the fan base, which are mutually beneficial, will be the way forward. you moreadium made competitive. pressure?eling the awaye pressure never goes

and it never will. that is the beauty of the premier league. i am glad other clubs are building their stadiums. it is on the cusp of an unprecedented opportunity to become the world's sport leak. -- sports league. we can engage globally and connect with people personally. >> you spent a lot on your players. goalkeeper, three-time golden glove winner. is he going to be a game changer for arsenal? know-hows experience, to the squad. he is a leader, a winner. you can see that the moment he walks into the dressing room. everybody stands a little taller. our philosophy is around giving young players a chance and having these young players come

through for us has been the story for the last two years. >> you were outstanding yourself. privilege to play in the old wembley stadium couple of times. >> did you ever imagine you would be the ceo of an outstanding football club? >> i really didn't. joy andeen a fantastic privilege. working at this club, with a set of values i believe in, a way of acting, doing the right thing and also always looking forward. these are things that connect with me very deeply. i believe in what this club does covet giving and people a chance -- what this club does, giving young people a chance.

earning success, not just buying it. rishaad: up next, we check out the housing market in greece to find out how realtors are coping with the economic crisis. ♪

the real estate market in greece has collapsed over the years. we spoke to one real estate agent.

>> very nice property. i don't remember the quote. this house has been six years on the market.

rishaad: take a look at hong kong, shanghai, south korea. it is a holiday in japan. nikkei closed. shanghai composite slipping below that psychologically important for thousand handle. handle. gold having a bit of a knock. the least number of bullish calls since 2006. that is sydney.

the new zealand market slightly higher as we look forward to the interest rate hike. that is it for this edition of "trending business." ♪

mom has always been one of those people who needs to keep busy. if she's not working in her garden, she's probably on one of her long walks with bailey. she was recently diagnosed with a heart condition. i know she's okay, but it concerned me she's alone so often. so i encouraged her to get a medical alert button. philips lifeline offers the best options to keep her doing the things she loves in the home she loves. if she ever falls, or needs help, i know we can get to her quickly, and with her condition that can be critical. and even though she doesn't typically go far from home, the button always goes with her. these days, she's still as busy as ever. just the way she likes it. innovation and you. philips lifeline. lifeline is america's #1 medical alert service.

visit philipslifeline.com/caregiver today or call this number for your free brochure and ask about free activation. rishaad: a grizzly day out there, middle of the asian trading day. we are live in hong kong and this is "asia edge." our top stories, another wild ride, buckle up. aboveai briefly moving 4000. the golden glow is fading. speculators least bullish on record.

some relief for greece. the banks are opening today. determining -- germany is hinting at some restructuring. angie: vw china sales fall for the first time since 2005. $4 billion, that is how much the google cofounders personal whelp increased in -- personal wealth increased in just one day. we will talk to the arsenal ceo. all that and more. >> the quest for silverware. a frustrating week is ahead of us. equity markets, with the exception of gold, which we will flesh out for you in just a moment. indonesia, japan. we