have cause lasting damage. predictive text. they look at words like bullish and bearish to see how it mirrors market moves. getting to greek lawmakers, a second wave of austerity measures. these are the last reforms demanded before a third bailout can be launched. the prime minister urged this result but he doesn't like what it means. rishaad: he certainly doesn't. he made it clear the government something they don't even believe in because they limited the options. batch ofudes a second

prior actions demanded by creditors and will simplify porti poor decisions. they discussed reforms overnight and the vote was set for midnight, delayed several times, finally passing around 4:00 a.m. in athens. there has been intense opposition. sampras was abandoned. he has to rely on his political opponents to pass the bill. out of 139 there is a party, 31 voted against the bill and five abstained. when lawmakers passed the first bundle more than one quarter of lawmakers rebelled. governmenttted his has made some mistakes in the past six months but he

emphasized today's bill would be the last wave of prior actions before they can see some of that bailout money. we will get that through the course of the show. david: we opened the day with a bit of losses. we did a spike of. perhaps a lot of that down to short covering. , early into the morning. 1%.fth of not a law in that. outher piece of news came 7:00 a.m. hong kong time. the south korean gdp. sluggish growth.

the reason we are looking at it mers see whether the outbreak had an impact. also something to mention when you look at south korea, household debt and the economy. that has been on the way. that has consistently been among the highest and why they can ease their way out of this slow down. they have an extra budget that they have approved. spending their way out. connected to the dead issue and south korea you take a look at how things are trading across the index, materials are down because of this. down 1.5%. construction companies down over 3% as a group.

sharp losses. the financial regulator starting next year. it will be imposing stricter credit standards for people who want to take out loans. if they are changing the mechanism used to assess the ability we repay their debts. it is not just entrance -- interest payments. in on the outlook for south korean industrials. let me just and on this topic. 1098 now, 1200 jpmorgan. below which a lot of these companies will be operating at a loss. i will leave it there for now. rishaad: earlier japan's recovery stuck in stall mode as far as trade continues to drag on growth in june.

confounded expectations of a seems exports are struggling. the back end of this week. guests: they were expecting a surplus in the mountains they. if you strip out the seasonal factors they are looking at the adjusted number. these numbers certainly aren't well we were looking for. it is the third straight deficit we have seen. we are seeing the impact of that on the current economy. and the currency fluctuation as well masking the underlying figure. ,e are the wider trade deficit limiting growth coming through. rishaad: yet a strong rise in exports. juliet: we did see some good games there.

since for the best level january. if you look at that game we saw in the month of january experts -- been analysts were looking for a rise of 10%. it has been boosted by growth in automobile and electronic parts. imports weaker. that is contributing to the trade deficit of ¥69 billion. when you look at the import export factor it is the fact that japan is facing a lot of competition from china as well. all of that goes away on the overall economy. japanese economy is going to slow further. he forecast growth will be lower to 1.7% down from 2%. these numbers signaling that is the case.

rishaad: let's have a look at the other stories. yvonne: a second reduction in just six weeks. economist predicted the move against a backdrop of weak inflation and following dairy prices. graham wheeler sent a statement seemsr easing likely. they returned the benchmark to a record low of 2.5%. it has helped engineering. it should stem inflation by pushing up prices on imported goods. it came in well below the 2% midpoint of the target.

let's talk about chipmakers. over weakeninges demand for pcs and smart phones. especially in china. millioname in at $962 in this comes as we saw tech stocks take a hit after apple missed estimates. qualcomm following after hours. the company will be cutting jobs and reviewing strategy after posting its worst sales decline in six years. as of the workforce will go part of a plan to lower costs by $1.4 billion. it will shake up the board and may consider breaking up business. while, investors have been calling for cost got's and the return of more capital. let's talk about nestlé. the noodle controversy in india has wiped out $2 billion in

shareholder wealth and sparked a nationwide discussion on food safety. regulators remain split on how safe they are. it is with thing up business for insurers. alliance says they have seen a sixfold jump in an inquiries. india regulators have widened bans on products that have not been approved. noodledominates the market in india with 63% market share. the stock has taken a tumble, down 15% in two months. the company reports earnings next week. rishaad: coming up, winning support from here. ♪

rishaad: greece passing a second bundle of austerity measures as demanded by creditors. of europeans ronan studies at the university of hong kong. said he did not like this. negotiations are exhausted, which he was given an ultimatum to get this legislation through. he has to clear publicly he is not a supporter of this deal but given the alternatives -- [indiscernible] what is remarkable is that he has emerged more strong than expected. he is now one of the most .opular figures in greece

something we are saying throughout the referendum where he got a high degree of support. he is being seen by many greek as the only viable candidate who can negotiate a least worst deal in the short term. even though he has people from his own party voting against him, the other opposition parties are also voting for him and they don't present a better alternative. rishaad: he got this three with the help of the end of the day of the mainstream parties and the opposition. guest: the parties in government before, they have supported his measures. this is something that is likely to continue. tothe moment he needs prepare. is aad: the coalition radical left, is it not?

>> what you will need to do in the next few months is not only negotiate with the european creditors but keep support going. this is only the start of another round of negotiations. negotiations going down. in august. the next big one is the 20th of august where payments have to be made to the european central bank. the first of september to the imf. the time frame is short again. what we are seeing is that he needs to negotiate at the same time and keep his own coalition together. he needs to give them something. there is some thorny issues coming up like tax breaks for farmers. ifis actually a costly id. we look at the overall budget planning. i'm sure this is something the creditors will insist on and he will have to swallow it. rishaad: there is a heavy price

being exacted to stay in the euro, is there not? what are the things people are saying? they can't pay this back. -- amount of money has to they have to have relief on some of this debt. aybe now, they were saying flatly know before. guest: there has always been an argument about debt relief. germany has never been what hundred percent opposed to debt thought it it always was a combination of a process. hey wanted to do reforms first. the problem is germany believes once they get debt relief they are not going to make reforms. rishaad: they have form on that. that is the thing. guest: there will be some negotiation on this happening. be,ever the outcome will

some of the debt will have to be written off. even the german finance minister has admitted to that. that will aless thorny issue. the deal as it sounds now is not financially sustainable. we have yet seen greece being kept in the euro by political will. we talked about this before. you can have monetary union without fiscal union. that is something the french president alluded to when he said this whole greece crisis indicates that we need more europe, not less. guest: i think that is an interesting proposition by francois hollande. it is indicative of the french weakness vis-à-vis germany. they feel they are using the argument in the eurozone and france's concern about its own financial situation and its economic prospects.

want germany alone to set the standards and norms within the eurozone. that is why as a potential compromise that would give france the privilege -- they have been advocating this. alliancefranco german running the show. paris and berlin, they are loggerheads. guest: they are not even at loggerheads. it is an issue, the relative weakness of the french economy that has undermined the foundations of the franco german partnership that have kept costs for going such a long time. this is not going to be solved any time soon. the french are increasingly worried about the eu being dominated. rishaad: thank you for joining us. next, driven down.

we are going to head over there and find out what is going on as we get live in sydney. ♪

rishaad: dramatic pictures from space. this is the scene of the international space station. we are expecting a russian spacecraft.

this is after blasting off and cause it's down. -- kazakhstan. it has russian and japanese crew members that will begin a five-month stay on the iss. they launched resupply missions. unionhave the russian about to dock with the international space station. -- id a space we had an orbital crashing after launch. these are the images coming in from space. >> other stories around the world. ending six days of armed

arrests, representatives of a matt amidrities warnings of value to reach agreement could trigger fresh fighting. leader soo chi barred from abstaining. president obama's first executive order was to shut it down by 2010 but he faced political and legal obstacles preventing inmates have been sent home or to third countries eut others cannot b transferred prete 800 prisoners have been held there since 2002. bali airport has reopened after a third closure in two weeks caused by a volcano. flights began operating after the wind direction changed.

the latest disruption came during holiday peak seasons and stranded visitors heading home from festivals. rishaad: australia is having a tough day of it. it is down 5-6%. this is despite good news on third-quarter shipments. what is going on? case -- good morning to you -- despite the shipments being above estimates in fortis skew, 1-2 million tons of iron exported per year, while you have so much volatility in the market, they have a bit of a debt pile around, down from what it was.

is a cause of concern. the situation is one that it is you -- that is what we are at despite strong shipments. you are looking at a situation we have volatility playing havoc with these mines. it is not just fortis skew -- it is down around $25. the dividend yield is 8.3%. they are really channeling that same. and they are not rocking all over the world. you have to look at it across not just iron ore oil there is copper or, coffee, in

the commodity you would like has been heard this year. , if you are a status quo then you would be down, down with commodities. it is not going to pick up any time soon until we see robust reports coming out from gdp's. particularly the united states and china. rishaad: a quick word on oil. up a few dollars. when we are seeing iranians coming back into the international space that would be a good thing but we're edging into a market that has huge oversupply at the moment. , depending on how much we drive by and large oil continuing it six weeks of soft and anemic performance. rishaad: thank you.

data editor from bloomberg news. markets turning across asia-pacific, let's have a look. shanghai on the way up again. three quarters of 1%. break,to tokyo lunchtime looking positive across the board. also showing a little bit of strength for the singapore market. in a southerly direction. next, the trading rule that is trouncing china stock market turning business -- back in two minutes. ♪

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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: the euro jumping after lawmakers passed the second bundle of policymakers amended by creditors. prime minister alexis tsipras urging lawmakers to approve the bill, even though he opposes the policies it demands. the bill would simplify court decisions and imposed eu rules. japan's exports increasing the most in five months in june. shipmentsas value of

rising from a year ago. export volumes unchanged. limited foreign support for industrial production that has been pressuring economic growth. mining stocks taking a big hit. the selloff extending to every part of the metals sector. ore heads back to $50. shipments rose some 10%. going to get you out to space and have a look at the international space station. these are live images coming through at the moment as we prepare for this soyuz spacecraft to indeed dock with international space station. three astronauts on board planning a visit over some five months. that's what we have at the moment. this spacecraft did last off

from kazakhstan. we are anticipating that docking any moment. before they do, let's get to david who is having a look at the markets. david: back on earth, let's take a look under the ground. that is one sector moving a lot of these mining stocks. fortis you metals, they are still in the mining. looking at the bottom of your screen, hyundai motor up nearly 4%. that is sending the stock higher. right now, that is a habit you do not want to break if you are a big company. once you start breaking these habits on dividends, you get punished. look at the shanghai composite, up 0.9%. there only number six on streak of games.

also worth noting here, we have seen a move up on the shanghai composite. a few movers we are following in hong kong, let me flip the board. insurance, some very good profit guidance. first-half profit, they see it up over 6%. solar also updated their first half estimates. they are saying 180% to 210% improvement. and we all know about sands. sluggish policy trades. over to japan, some big moves here as well. nydek first-quarter net income up. price target raised to 10,650. very quickly, i want to mention eisai. results less than ideal.

you have a big drop in the stock. down 7%. back to you, rish. rishaad: a shocking thought from tokyo as the bank of japan considers changes to its inflation strategy for the first time, reporting using an alternative gauge that makes it appear closer to the 2% target. let's bring in aaron scott. to make sense of things, how are we supposed to read this. is, it is bottom line a reminder that there are different ways of looking at prices and trying to determine what is happening with inflation. this shows that inflation is much higher than the boj's target. touched zero in february. this shows around 0.7. the difference is that this strips out energy costs.

as you know, oil prices have fallen sharply and this has pushed the boj target way down. despite these headwinds that the central bank has faced, the governor, mr. kuroda, has insisted that inflation trends are improving. he stuck by his guns. that inflation is definitely going to pick up to the boj target. it might take a little bit longer, but it is heading that way. what is the takeaway? need tothe boj does not add stimulus at this point. by at stimulus if inflation this measure is doing much better? argument,here's been counter argument, a very heated debate about how to measure prices accurately. one side saying if it ain't broke, why fix it.

the other side saying it is broken. arran: i guess we have to assume that the ultimate aim is to get an accurate reading on the cost of living and changes in the cost of living. the boj is targeting 2% increase in the cost of living each year. so yes, there is a lot of debate. it is a huge task to try to grasp what prices are doing in an economy. they have to measure products, changes in quality of products. it would take into account how people's spending patterns are changing. what the government does is, every five years, they take a look at what they are measuring and try to improve their measures in revisions. they are doing that now. they aim to get this done by about august next year. it all sounds kind of technical,

a bit arcane, but it is very significant, especially for a central bank. five years ago, the revisions resulted in a large cut to the inflation rate. five years before that, a big cut. this was really significant because the changes were made after the boj ended its previous quantitative easing and raised interest rates. a few months later, the government comes out and says prices were actually falling. this was pretty embarrassing for the central bank. it is known here as the cpi shock. next august, there are going to the revisions. this happens to coincide with the boj targeted timing for hitting 2%. it is significant, whether revisions result in upward or downward revision. rishaad: thank you. arran scott in tokyo.

buy at the open, sell at the close. let's have a look at what is going on here with bloomberg news' asian markets stocks editor. what is the theory here? >> the question is, how do you play a market that we know is heavily manipulated by the government? there is a very simple strategy which is to buy at the open and sell at the close. if you look at the returns -- rishaad: you are talking about the overall it next or individual stocks? funds tend to favor large-cap stocks. if you look at april, if you bought and sold petro china every day, you would have made about 43% as opposed to just 1% if you bought and held. there is a catch. china's markets, you can't buy and sell in the same day.

what you can buy is futures contracts. better than ifch you did it and just held. rishaad: some analysts predicting that equities, the h shares, they are going to rise in the next 12 months. is that credible? they have been wrong so many times. what turned out when we looked into it is that analysts have remained very bullish on the a share markets. we've actually had the h share index as the world's biggest decline or in the past 12 months. that has widened this gap. among global markets, the average is around 11%. whether this is credible, we know that the market is very cheap, but the big concern is that government intervention is

going to prevent these reforms to overhaul the economy, so that is something that is going to hold back. rishaad: thank you very much indeed, richard frost. going to just check in with some of the other stories we are following. casino operators plunging in new york. that is on news that they may be forced into international concessions to avoid bankruptcy. that whileurt ruled its main operation is shielded, the parent one must face its lawsuit. it could cost billions of dollars. caesars has been pushing investors to restructure its debt. slow down in credit card spending growth hitting american express in its second quarter. income was down nearly 40%. the results still ahead of expectations. people were looking for 1.32 there.

amex is investing in tech. it is trying to overcome the end of its partnership with costco. rising prices offsetting the strength of the dollar. that is helping coca-cola profit beat estimates. cut $3ults come as they billion in annual expenses in the face of declining soda sales in the u.s. shares down about 3% so far this year. the tech industry continues to --appoint through outlook v throughout the course of this year. su keenan wrap this up for us from new york. su: two big tech reports. qualcomm was an eiffel. the company is in need of restructuring. it posted its worst sales decline since 2009, said it will

cut its workforce, and review strategic alternatives. the job cuts will impact roughly 4500 positions and are part of an effort to reduce cost by a total of $1.4 billion, including changes to executive pay and even a shakeup of its board. the ceo is leading the largest job reduction in the country's history. this is happening as its chip unit loses orders. -- this is aing big part of the change -- to pressure activist partners which have been pushing for cost cuts and more capital return to investors. will the company consider a breakup? there was a recent $10 billion bond sale. a lot of investors perhaps are now nervous. some on the street saying, "the wall street journal" reporting, the company could split into two

divisions. texas instruments came in line with $.65 earnings-per-share. they say there is quite a bit of money to be made in pc and the industry is a growth market. however, their forecast points to week electronics demand. they are predicting sales and profit may fall short of estimates on weaker orders from communication and pc equipment makers. they gave a range of $.62 to $.72 a share on sales of $3.1 billion. that compares to analyst estimates of $.75 a share on $3.45 billion. shares have been slightly higher in extended trading. su keenan, bloomberg news. rishaad: today, we kick off a new season of high flyers. when austin cogan left belarus for a new life, he understood

the only way he could have something was to earn it. >> when the social network movie came out, i think that it made entrepreneurship more glamorous. everybody watched it and said, hang on a second. two hours ago, mark zuckerberg had zero. now he has tens of billions of dollars. everybody wanted to be an african or after that movie. anddn't watch spiderman decide i wanted to be a spider. rishaad: catch the full interview this evening. high flyers season for at 6:00 this evening. up next, tensions rising in japan. beijing is building its presence in the south china sea. more on that when "trending business" returns. ♪

new zealand, the second reduction in a mere six weeks. it seems unlikely it is done -- there. let's get over to paul allen. collecting dairy prices at the moment helping to force the governor's hand. what did he have to say about it? well, it seems it is very unlikely he's done. he said this decision was warranted and the softening economic outlook and low inflation. we will deal with inflation first. it has been sitting below the 2% midpoint for about four years now. he is very keen to stimulate a little inflation. as far as going goes -- growth goes, it is not what new zealand

has been used to more recently. theam wheeler saying outlook is softer since the june statement, when they also cut rates by a quarter of a percentage point. milk prices have been falling steadily and dairy exports are critical to new zealand's economy. there is a widely expected decision to cut rates. the new zealand dollar however rising on the news. possibly because it was so widely expected. also, it was something they didn't say. it has taken out language referring to the new zealand dollar and replacing it with, appreciation is necessary and further cuts are likely down the track. rishaad: thank you very much, paul allen. checking some stories making headlines around the world now. live pictures of a soyuz capsule carrying astronauts has arrived

at the international space station. the crew took off from kazakhstan earlier and will spend five months on the iss. the launch follows the failure of two private unmanned missions. in june, the spacex falcon blew up while last october, an orbital on terry's crashed after launch. hasese artist ai weiwei had his passport returned four years after it was consecrated. -- after it was confiscated. he was secretly detained for 81 days. the artist says he now wants to visit his son in germany and the royal academy hopes he will be in london for a major exhibition of his work. japan has released photos and a map showing what it says are chinese maritime platforms in the disputed east china sea. tokyo says the constructions could be used to siphon gas from

the japan side of the line. the claim comes days after the passage of security bills to widen the role of the japanese military, something china says may unsettle regional security. rishaad: our reporter can tell you about that story of rising tensions between the two neighbors. we've seen a bit of a cooling off lately. david: there has been a cooling off. we saw one of these envoys just last week. there's talk that there might be a formal summit between abe and xi jinping. we already had a couple handshakes. that is why this is such a curious thing. they have decided to talk about -- rishaad: this is what it is about. it is about these gas rigs. line at theis the moment. it is another area of dispute in

the east china sea. we always talk about the islands , but this is also under dispute. there's something like 16 rigs on the chinese side which the japanese are saying could be sucking gas from the gas structures on the japanese side. rishaad: why? we've had of course shinzo of a trying toshinzo abe change the constitution. since 2013, the japanese have said they've knownbout it. it does make it curious why they are doing it now. there's a couple theories. japaneseat the are trying to get support. wasn'td be nice if there all that protest about those bills when they are going through, like we already saw. given the fact that they are going through anyway, regardless of what happens, i think maybe

-- i'm laying on the other theory. that is that this is part of this complex interplay between china and japan over how they are going to establish their wartions post-abe statement of mid august. it looks like they've decided they are going to play this particular card. rishaad: david tweed, our reporter at large. next, twitter. we look at a new report that says social media can be pretty accurate about predicting market moves. ♪

rishaad: having a look at what is trending on social media. yvonne and sherry having a look at central banks unusual tactics. shery: a study showing that

twitter has predictive powers. here's what the ecb says. daily twitter bullishness is found to be useful. a useful investor sentiment indicator. it has significant predictive value. not so much in china. they say you should take a look at weibo. what they do is go through daily tweets with the words "bullish" and "bearish" and then map it on the stock market. this tweet from tony fernandes, he says oil down again. my bearish sentiment from a few years ago coming right. yvonne: example of a bullish tone is something like this. this tweet saying that analysts expect profit to the about $1.8 billion. the company had just got more bullish about its results. it seems like they've compared

it with google. twitter still seems to win. in terms of the daily sentiment index, what we currently look at, one point move there at 2.26 basis points better rise in the dow daily returns. if you look at the ecb market sentiments on twitter, the same amount of point change what have 12 basis point returns on the dow. shery: pretty strong, especially compared to base indicators. this could be the economic indicator of the future. yvonne: but a pretty blunt move. you can't really gauge gut feelings. again, only for short terms. shery: back to you, rish. rishaad: that's it for this thursday edition of "trending business." stay tuned. we will be recapping the big stories of the day. we are looking at what has been going on with these wild market

generations we've seen of late. taking a look at economic policy too. waya edge" coming your after this very short break. ♪

mark: i'm mark halperin. john: i'm john heilemann, and with all due respect to "sharknado 3," we think a better name would have been "trumpnado." in our throwback movies list tonight, forest trump, saving private rick santorum, and first, hillary clinton is behind jeb bush and marco rubio in head to head matchups in three key states, colorado, iowa, and virginia. here is how bad things seem to