freshwater victory over apple sloot launching a clothing line for chinese fashionistas. -- tyler swift launching a line for chinese fashionistas. what is going on. we are used to equity markets of volatility. right across of the board pretty here is david. we are seeing the spillover of crossroads spotted -- pockets of the market because of the drop in commodity prices and look across the currencies and not so much in brazil. taking a bit of a hit. the aftereffects of this commodity price. equities, very nice today. games across the board.

one of two markets, the other singapore. a spike in trading volume. what is interesting, foreign money pulled out. we are seeing in outflows roughly about $800 million. you put two and two together and up a lotgains, buying of blue chips. a series of minutes, central-bank ministers out. boj is one of them. nothing new to say. the yen seems well against at this level. analysts say the risks more because the strong dollar, more easing coming from the boj. trading at fairly weak levels. rba coming out with their minutes in about 30 minutes. takeaway there, decline and exchange rate likely and necessary.

u.s. dollars. ,nother big decision is rb widely expected to bring the cash rate down. the argument a you look at the rates and what they are doing, we will see the cash rate brought down to 3%. looking that the cash rate may be brought further down. andre holding onto gains coming off the comments this time yesterday from the prime minister. he was describing this decline in the exchange rate let me get to this faster than anticipated. amateur short covering. big one. ursday, expected to boring the

cash rate down to at least 3%. beijing, theof latest numbers concerning investment. the numbers for june. 0.7% from theup year before. that is down from that of .8% in may. expecting 0.5%. money leaving the country as well. up 29%. $56 billion is what we have coming through according to markets international. there we go. fdi is up .7% year over year. china -- let's go to greece area it has taken more small steps toward putting its finances in order sprint athens paying off some of its arrears on wednesday. the government could receive new

cash from the bail out as soon as next month. here in shery ahn. we have agreece, timeline afford that the bail out. a source telling us creditors plan to wrap of talks by august 6 and disperse the first batch of the new $94 billion bailout by august 17. the key would have the bail out package approved by national parliament by august 13 so funds can be dispersed in time of the bond reduction to the ecb. keep in mind that source telling us that this schedule is very tentative and opinions on progress in negotiations. greece is slowly putting its finances and orders. athens repaid several $.5 billion to creditors including the ecb. -- $7.5 billion to several creditors including the ecb.

banks are finally open. capital controls and withdrawal greek still in place a financial markets will remain closed at least through wednesday. zach is will probably vote on a second wave of prior action commanded by creditors before the bail out is dispersed. fromes these efforts greece and creditors, a majority of 34 economist surveyed believe a grexit will be back on the table next year. they say the third bail out is good for this year but too small overall and greece will struggle to implement the three-year program. back to you. rishaad: a look at toshiba, shares on the way up. they would reinstate more than $1 billion in earnings and news the cochairman is to quit the board in all public posts as well. correspondent joins us.

what more can you tell us? reporter: good morning. all theer read third-party panel with that came out last night concludes three months of suspense a you see the markets welcome the relief and ¥150 billion over the past six years is somewhat less than going forward. it is still three times a more than toshiba's own forecast. investors are welcoming some clarity on how much of a hit toshiba will take. the question remains our responsibility at the top management. the report was careful not to place it on any specific person but we had ministry economy -- the minister of economy say he has heard vice-chairman will resign. and it has been widely presented that another person will resign. they will get a chance to a

dress these allegations later today when the company holds a briefing at 5:00. but the markets are looking forward to having closure on this scandal that has been going on since april. rishaad: thank you for that. joining us and a look at other stories making headlines out there. reporter: we are talking about china ipo's and no end to the ipo party. slammed the brakes with the dozens of sales suspended by the government. nearly $900 billion in fees have evaporated for now. more than 500 companies on waiting approval by regulators additionally adding $5.7 billion in fees lost. the biggest potential he lost the floor andund

brokerages have had to pay for the national service of these government led efforts. investors seem to have priced in weaker growth. for the first half, a record. up 340% year on year in the profitability may weaken next year. let's switch gears to paypal. shares surge on the debut as investors spin off from ebay will pay off. it open trade with the market value of 1.4 times that of ebay. big returns from the digital payment business. the ceo tells us going solo will help pay low -- paypal expand and add users. that is up 27% from a year ago. picked upketplace investment despite a slowdown tied to a data breach and changes to google search engine. ebay is more profitable than

paypal. helping brick-and-mortar retells develop smart phone apps to place orders and make payments will be important in maintaining growth. finally, space x. elon musk said of the explosion of data stored the fountain nine rockets last month was probably -- said the explosion of data stored on the falcon nine rocket last month and all failed part was from the supplier and not made by space x. yunnan must said -- musk said theelon company may have become complacent. demise sincery october and is likely to reshuffle space x's launch schedule. three originally planned for next year has yet to be rescheduled.

rishaad: another story, how doctors may be a step closer to finding a cure for a. check into that. -- find a cure for aids. a health check on corporate india. crisis as anancial threat of cyber security. "trending business" is back in a couple of minutes. ♪

rishaad: banks in greece we opened doors on monday. our next guest said at a real challenge for greece could it be in the information technology fallout. government systems left of honorable to hack -- of le toable -- left vulnerab

hackers. thank you for joining us. now, theave seen right systems may not have intellectual capability behind them to cope with a cyber attack. guest: high, were shot. thank you for having me. -- hik, rishaad. economics,cus on the how long shall we open veins and allow people to get out of atms. -- how long shall we open and how much should we allow people to get out of atms? most of that is technology. it was not designed for those sudden point loads of lots of people doing online banking. lots of people want to the atm. and also causes confusion on behalf of those customers and users and confusion is a breeding ground for hackers.

rishaad: absolutely. the thing is, i want to know what the connection, how this could provide a gateway into the european union's financial system and perhaps even the world's? hugh thompson: absolutely. what is happening in a greece is a huge time of uncertainty for great greek account holders. whenever you face uncertainty out the money, you start people behave differently than they would normally behave. that kind of behavior leads to people being prone to phishing attacks, folks sending e-mails to those people saying, hey, i think you should check your account and go and move some money around. and people are more susceptible to those messages. not just to a greek account

holders but that same uncertainty because of the issues in greece affects people in europe, in the united states, a very credible claim if you get an e-mail that looks like it is coming from your bank that says, high, account holder, wanted to let you know because of that activity in greece, we recommend you do x. it may take them to website that is not normally their banking side and trick them into doing something is a what not normally do. a huge human element of security here. another infrastructure element of security so there is a thebone that connects banking centers of greece with banking centers all over the world. as a strain gets put on the backbone network, i think were at a time when we do not know exactly what would happen if exact strain is coupled with a

distributed in service attacks for example. we are in a time of great volatility. fromad: just want to move the dangers that degrees provides to the global financial system. like asia, we have a of penetration of the smartphones area smartphones, how good are they in preventing cyberattacks? how good is your cyber security? hugh thompson: asia is ground zero for smart phone users. the greater penetration of smartphones here per person almost anywhere in the world. to thinkesting thing about smartphones and security is we designed many of our security systems at a time when we never imagined so many people would be using smartphones.

you an example. right now, most people have a pretty good sense if they are what a dangerous neighborhood online. if the url looks like www. imgoingtohackyou, you might be hesitant. usually the url's are truncated. abbreviated form where people cannot even make the choices. the other thing that is challenging is when people install mobile apps on their phone, they are often asked for broad access to and thecards, gps average person like my mom does not understand the implications of allowing an application to access a resource. to the: i want to do story on social media very quickly. to thisyour reaction report a hack in dollar madison?

i think this is a very interesting one and the dates of their is confidential to a lot of folks. it's difficult from the credit card hacks. financial and medical hacks we have seen in the past. you will see a lot around some and extortion on their users as a result. rishaad: thank you. hugh thompson from blue coat, joining us from singapore. suicide: as suspected bomber has killed at least 30 people in southern turkey. it happened at a cultural center near the syrian border. police say the target may have been a group a young activists preparing to head across the border to help her borough did -- revealed. more than 100 people were wounded.

no claim of responsibility for the attack. 54 years of estrangement that outlasted the cold war has come to an end as the u.s. and cuba reopened embassies. stay of kerry -- secretary of state kerry will travel to a van an month. it does not hide the many problems on both sides. nextll travel to havana month. as a news conference to announce the date of a new election disrupted by a british comedian. him with fake money saying it was payment for warning north korea of the world cup. blatter returns to his seat and said his successor would be elected next year. he confirmed he would not run. be present for the

election in 26 team. i have -- in 2016. there is a new election for a new president. -- a newt only president. i cannot be the new president will i am an old president. rishaad: apple got over taylor swift. singer has an even more ambitious plan. that is coming up. ♪

rishaad: here is what is trending on social media. yvonne: of course were talking about taylor swift. she took on spotify and apple and won and now trying to conquer china. with the e-commerce site, the second biggest one in the country at launching a fashion line exclusively to chinese shoppers. the t-shirts and authentic merchandise she wants to sell. her tour hit shanghai. this is launching about three months before so. great marketing. a lot of mixed reviews about

some of the t-shirts. she did say -- massive it news. buy, buy, buy. another user saying they are not sure. obviously -- i would like to see more. dresses, sweatshirts, and t-shirts. i am open to it. a look at ashley madison, very interesting site. zeb: diplomatic. affair and use ashley madison -- you probably very concerned right now. it has been hacked. 37 million user accounts, that the data is going to be released . your wife or husband can look it up. that is not going to be good. it has promised and had the highest standards of safety off protecting data and clearly it

did not. it shows other dating sites, if you want to call this a dating ways,adult recite in many they cannot accurately provide -- protected data. the safety concerns out there. people are having a field day on twitter. -- is aople saying great reminder why i use my father-in-law's name. some of this you have to laugh. if youare not involved, are involved, good luck. got a good lawyer. yes, that works as well. a lot of people talking about the privacy concerns. this as well. and in fact, this data hacked, it could be. devonte interest -- yvonne: interesting the line is life is

too short, have an affair. zeb: i did not realize it was so pervasive. maybe i am old school. get married. yvonne: a lot of headlines. a look of what is trending on social media. if you use twitter, easy to stay in touch with us on "trending business." the yuannext -- china to the dollar and a journey so far and where it goes from here. you are watching "trending business." ♪

♪ ♪ ♪ get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift.

rishaad: a look at our top stories. chinese stocks had a bit of a drop. as much as 2.8%. it has reversed early losses area -- early losses area slightly better than it has been thought by the economist. commodities, golden dropping to the lowest level since 2010 in oil falling below 50 bucks.

miners are the worst hit. expectations of the fed raising rates in the dollar and more on the pressure of yen. afternoons to of go -- after news to correct more than $1 billion. the first right down in may. a third-party investigation says executive systematically involved in improper calculating four years and came from the top. a look of what is going on market a wise area -- market wise. david: we are coming off of marine day. indonesia is still shots. it is not trading. that said, a good day in the markets. sanganctioning index -- heng index and china mobile and china telecom adding to the

gains. developing story here is china -- a firm that is umbrellato act as an of wireless. that is what is happening with the hang seng composite. hmm, topsy-turvy and now down 0.3%. .inancials are up banks are seeing a lot of weakness. banks are flat. what else are we watching? casinos. gains in the the stock market but a lot a are saying despite the rally, it is temporary and look at the underlying fundamentals.

how bad their earnings can against. a note yesterday that basically revised their forecast for july gaming. that is what is happening in that space. over to japan, the four report of how much to digest earnings -- and just earnings but -- adjust earnings because of impropriety, to put it diplomatically. shipping stocks up substantially. it is all for a 12th session. shipping rates and to highest level this year. downgrading 3000 is what they are saying. a lot of pressure on raw materials and metal producers in japan. the commodities space, the latest here on oil. not oil prices, gold, my

mistake. just three bucks above $1100. recovering a little bit. visit big, big drop. this time yesterday. a lot of people do not know why as some traitors are saying -- traders are saying we do not have a floor. it was that we are stable as of now. i will send it to you, were shot. rishaad: other stories. , eightata for an ipo years after taken private by kkr. using the money to repay debts, more than 2300 bank card transactions per second last year. billion.ted over $11 it has not turned in annual profit. took offravel website

in new york as a surgeon passengers tuesday the outlook for profit. the number of travelers on the three biggest airlines jumped the most in 2 years especially on international routes to fuel second-quarter profits. online store in china despite strong sells, it was not in line with its strategy predicted doubled sells on the site in the first month. uniqlo operates is on site on alibaba. the china made of the historic announcement it was removing long time currency been to the u.s. dollar. the journey over the decade and where it goes from here. reporter: the chinese which literally means the people's has a relatively short yet interesting history alongside

changes in china economy over the last 35 years. as china transitions from central planning in the late 1970's, it was devalue several times leading to the peak in 1994. over the following decade, the currency was packed as -- china entered in 2001, the economy flourish and sports and grew in the current account balance group. and then it happened. peg was 2005 abolished. the next two years start strengthening gradually about 50% in nominal terms area the global crisis hit and unofficial 0 two the dollar. the government but again the push to institute -- internationalized the currency

to one with elite reserve status. over the last 10 years, the trading ban was widened allowed it to move further from .3% in 2005 it became 0.5% and five years later it was widened to 1% and last year, 2%. hasing ahead, beijing flexibility and analysts say the most crucial of which is the mechanism to determine that the daily rate. this year, investors focus on the imf's pricey decade review of reserve currency and that will determine whether the renminbi is large enough to be classified with the big boys. the euro, the panel, and the u.s. dollar. rishaad: let's bring in chief

economic strategist and an editor we are talking about it earlier. it is a different country from where it was and not just the sheer size and squirrel -- and scale. guest: it was five times bigger. biggeste world's exporter. gdp is almost and of -- and more topanies are using the yuan trade him pay for invoices and central banks are buying yuan. a sign that strong economic reforms go, the move 10 years ago on the peg was successful. it can succeed. rishaad: that is what we want to with the yuan. what happens now with the yuan itself? where is it headed?

it is still overvalued or should i say undervalued and some say it overvalued. guest: the direction of the yuan is a tough call to take. but if you look at the currency over the past couple of months it has stayed around 6.2 to the dollar. the market consensus at that level but well into the second quarter of 2016. that said, much will depend on what the i am of says when weiews area rishaad: what were talking about earlier, will it get in or wait? bye say it will deftly be in 2020. robin ganguly: it is a difficult currency to ignore. global trade finance and china

has been making efforts to ease capital controls which one the basic things as for the yuan to be a friendly use currency. not sure it is there yet. of therran: part problem, their credibility has been dented. they were pursuing reforms and talked about internationalizing the currency and was seen them go backwards. were shot of thing, isn't it? the reaction. -- rishaad: that is the thing, isn't it? it has had to damage the reputation -- reputation to some extent. enda curran: it has pretty they say they want to play by the rules but saying something different. even though they want to open markets, the invisible hand of the party is lingering in the background. they have to reestablish their reputation and

more than that. cap controls is one thing. a long, long path to the full a convertible. it is not quite freely usable as of yet. central banks [indiscernible] can only move 2% on either side. it has taken steps to adopt accounting standards for reporting data and yuan carrying banks in 17 cities around the world. what can it do now? it can probably ease a little bit further. anhad report yesterday that institute that advises the government suggesting that it would scrap. a pretty radical move. but not saying it is likely what people are thinking about. enda curran: china has come a long way in a reforms. as of the moment, they are

spending. they do not want to divide. people who say they are still mapulating their currency and at the same time, their exports are hurting because of the yuan strength. china's exports are hurting because of their policies. it goes to show you when china wants to be committed to reforms , they can do it and push and take the pain. that's probably for the decade ahead, more flexibility in the yuan. rishaad: we have countries around the world, biggest reserves in u.s. dollars here. , theen japan and china most u.s. debt. amongst the highest top 2. robin ganguly: yeah, if they want to defend their currency, they can. this is like a rocket the hard place. -- if they allow the dollar to weaken, the value

of foreign currency goes down. but we are not quite sure what will happen. at the moment, it looks like they will keep stable at least until november. after november -- be having a would fully open capital account of this year but that noise has died down. enda curran: and probably set to back. people are saying we need to keep control on our capital borders. these reforms will happen. maybe at a slower pays, or gradual pace and then some people expected. we had a mapped out where the economy would go. rishaad: robin ganguly and enda curran from bloomberg news. we will take a break. corruption. china cracks down on to another political tiger. ♪

shery: the headlines around the world. space ask bo -- space ask -- musk said itelon was probably the failure inside of the engine. about 70 centimeters long and three centimeters wide. he says the company may have become complacent because it has a times more staff. that's eight times more staff than when he last launched. hawkins is looking for alien life. will be runough from the university of california berkeley in use powerful telescopes in the u.s. and australia and backed by a russian alternet billionaire -- internet billionaire.

>> it will be implemented. , the galactic center and the entire plan of the milky way and hundreds nearby galaxies. china's crackdown on high-level corruption has claimed another senior figure. a former top aide to the retired president. the former chief of staff is accused of taking bribes of keeping secrets and violating communist party discipline, a code word for corruption. he is going to face prosecution and including former chief and forparty regional chief both serving licenses. this andto talk about so-called new gang.

what more do we know about this? zeb: he was very powerful and a top aide. he was chief of staff. he had access to the highest levels of government and communist party and according to the news, except a huge rise in the context of the job. powerful members of the government with members of the business community no one with ink it would keep secrets and violated party discipline. he also citing the policy carried on sexual relations with a whole host of women which violated party disciplinary rules. he is the latest tiger to be brought down. rishaad: tigers and flies as they call them. where are we as president xi jinping has the anticorruption drive? a lot of people caught. head of security.

where do we stand overall? zeb: senior officials. you mentioned the former party boss, hugely powerful and well-liked. in 2013, sent to jail for life. the executor to chief. rishaad: it wasn't matters that were different. party chieformer sent to prison for life area -- life. stood trial.re he very powerful members three a of -- powerful members. gang of 4. whether they have counterrevolutionary tendencies seen in the previous case, but the they reviewed as somewhat as a blockade to achieve japan. rishaad: is that a really accurate description of the gang of four?

of four was gang highly political. zeb: absolutely. the distinction. not historically accurate to compare the 2 but resonates clearly in china and won the chinese people and media have been using to describe this latest top official to be brought down. .ishaad: zeb eckert get more on that story anywhere, just download bloomberg plus to your tablet or phone. -- a check on corporate india. a preview of the results coming out of this company. ♪

rishaad: some of the corporate results. earnings season. morgan stanley beating estimates and reporting a jump in trading at $9.5oming in billion. the biggest revenue rise among the six biggest u.s. banks. record profits and wealth management sector and the only increase in bond trading on among the big six. shares off by 5%. 13 straight quarter revenue declined with the company changing strategies. second quarter declining across all makes and businesses and divisions. the ceo has been trying to shift from hardware toward cloud computing and data analytics. ibm said it would hinge on software about 10% in

the second quarter. its time of day, counting down to the session in india. mumbai getting underway in 50 minutes. , expected to release ladle -- late quarterly. what are we looking at? reporter: it is going to be a very important day and very busy day in india. that will be getting numbers and the big one is a crucial quarter as of the previous missed estimates a badly. and the nextecline revenue to grow 5%. about 2.7% in dollar terms. theill be watching [indiscernible]

that may affect margins and we heard warnings earlier in the quarter. .ikely to have the dollar revenue is something we watch for. while it mayined be volatile, it will have an especiallyhe target 12% for fy 16. also in fy 17, go back. it has been quite high. it is something we will continue to watch for. commentsso seeing yesterday. and for the first time ever issuing a profit warning. saying lots of costs incurred on what has happened in the quarter and they expect that to die down. also sent concerned from the

u.s. and plans have not reached out. rishaad: sunanda jayaseelan, thank you. what has been trending on social media. yvonne: seven-time grammy award winner taylor swift took on spotify and apple and won and now trying to conquer china. announcing she is teaming up with an e-commerce site is selling a new fashion line exclusive to chinese shoppers. it will start selling in august i had of her 1989 world tour that will hit shanghai. some mixed reviews on the merchandise. some saying a is nice. -- some saying it is nice. becauseashley madison 37 million people, users out there might have explaining to do. the infidelity website was hacked leaking data of cheating

the users. social media having a lot of fun. some saying it will be great for divorce lawyers and some said it should come with a bucket of popcorn. edge"d: up next is "asia and will recap the top stories. ♪

mark: i am mark halperin. john: i am john heilemann. "with all due respect" to donald trump, with bone spurs in your feet, it -- you wouldn't think it would be so easy to plant both of them firmly in your mouth. ♪ happy national lollipop day, sports fans. on the show, some candidates chat, and the new economy stat. donald trump -- over the weekend, mark asked trump about his suggestion that john mccain is no war hero and whether trump might be his own worst enemy. mark: do you think your