and demand is falling in china. talks of iran injuring the freight. -- entering the fray. told that the nikkei has been tracing the newspaper for years. hashtag.rget the have, 48 pointwe two and expectations were for 48.7. gainingion that is pace. >> the deeper contraction looking at the number. what is happening across markets and it is shaping up to be a rare day where there is a lot of telling momentum. ling momentum. that is playing out as far as equity markets are concerned. i will give you the effect on the currency markets.

it is getting active in the space. back to the data, china's preliminary. minutes, the last 25 the nikkei coming up, that was encouraging. that aside you take the data from japan. it has been a series of bad economic kids in asia. it -- it's in asia. hits in asia. the biggest drop in imports: old -- imports going back to 2009. we have the china data and later on we get data from singapore, factory output. industrial production at 1:00 p.m. that is what is happening as far as equity markets are concerned. take a look at south korea, down. on top of the commodity run with

gold above 1080. currency markets, that is what you have. aussie dollar on a six-year low. it is falling against the kiwi dollar. go.e we southwest asia, pushing to extreme levels. indonesian of the highest level -- indonesia at the highest level. similar at malaysia. philippians falling to a six-year low. philippians falling 26 year low. lanka's monetary policy, keeping interest rates unchanged for a third straight meeting. the central governor joins us on the line.

a very good day to you. we kept you on hold, you were telling us last time that you did see actually a cut in the pipeline in the future? >> hello, good morning. yes, we are obviously driven by political events at the moment. we have a general election coming up on the 17th of august and clearly that has an impact on the economy to the extent that there are expectations that you will have a new stable government. strongercould drive inflows of foreign investment, etc., which we think will improve the supply side of the economy. rishaad: what is it actually a factor? well, in emerging markets as you know, policy has an impact on the economy.

a change in terms of the political landscape in sri lanka with the election of the president in january of this year. you know, the markets were getting used to the new policy of the government which emphasized transparency and good governance. translate think will into a new economic structure which is left based -- large capital infrastructure and more on consumption close. -- less based on large capital infrastructure and more on consumption slows. -- flows. rishaad: however all of these things contrived to affect howrest in sri lanka -- will have all of these things contrived to affect interest in toronto? -- sri lanka? arjuna: it has to do with the

sri lanka foreign policy focused on the bilateral relationship with china. stronger unders the previous regime is now there is a balance with policy with the west. we had the secretary of state john kerry visiting the island. that signified better relationships with western countries which has been neglected in the past. this will lead to flows from the west end of the western -- in -- -- and the opening of the western import market in sri lanka. rishaad: how does the following equity affect the economy? arjuna: it is a double-edged sword. on the one hand, we have seen tea producers and rubber producers affected by lower

prices but on the other textiles has managed to grow strongly and that has offset some of these lowdown. exports are keeping up with the growth rate from last year. but of course we expect them to grow even faster as we approach the pre-christmas production season. fromad: arjuna joining us colombo. we have been talking about commodities and we will look at oil back in the bear market. investors are walking away. ben joins us from melbourne. it seems there is no end in sight. ben: good morning. the story is all about the glut. more oil than the market needs. if you look across the region, countries are pumping at furious

rates. at the u.s., production is near the highest in three decades. last week we saw an unexpected increase in supply. brings total proven stockpiles above the seasonal average. the highestucing rate since 2012 if you look at the quarter of a have been above that for a year now -- quota they have better y -- have been about that for a year now. and then there is iran. shutdowns in libya and venezuela. the market could see iranian oil faster than anticipated. at the moment it is a glut story and it looks as if it will persist. rishaad: measurable running us sharples joining

us from melbourne. we are talking about the nikkei, with japan's biggest newsgroup buying the financial times. sources are telling us it took years of preparation. the nikkei finally got a chance to diversify outside of the home market and gain gravitas in the english-speaking world. it was a tight race with other suitors vying for the company. in fact the competition was so close that the home page was reporting the german group as the leading bidder after nikkei announced the deal. pearson fired the starting gun when the ceo believed a long, ittly project to transform into a digital first platform was beginning to bear fruit. as toave raised questions whether japanese companies pay too much for overseas acquisitions. nikkei is paying five times what the "washington post"

fetched. with insurance has agreed to by the american insurer -- life insurance has agreed to buy the american insurer. the company is running other japanese insurers that are spending abroad to counter the shrinking domestic market and spread risk and increase revenue with an aging population sapping demand for policy and natural disasters leading to higher payouts. butits have declined benefited from higher premiums in the employer benefit unit. as well as in the individual business. they posted earnings with net income rising 58% from a year ago to $54.3 million. let's talk about the imf which is sounding the alarm in japan. reload, theeds a

imf saying that the ballooning debt is unsustainable. it could be three times gdp by 2030 if the government does not lower budget. the imf says that the boj should be ready to increase stimulus and provide a stronger guidance to markets and that inflation is unlikely to reach the 2% target in the medium-term. in the long term the imf says the government needs to reduce the structural primary ballots by 4.5% of gdp -- balance by 4.5% of gdp. they say it does not affect the possibility of getting reserve currency status. china, notfforts in short-term market movement. rishaad: coming up later on the show, getting on board. lies in mumbai to find out why the airlines might be interested in an indian carrier. after the short break,

destination japan. a chief executive about what they are doing to attract travelers. taking a plunge. $22, over 2%. details later on in the program. ♪

secretary of state john kerry is defending the accord with iran, saying it is fantasy that the u.s. could hold out for a better deal. he says that rejecting it would not bring iran back to the negotiating table but instead accelerate the atomic program. which would leave america isolated as sanctions collapsed. >> the choice we face is between an agreement that would ensure the nuclear program is limited, rigorously scrutinized, and peaceful.

or no deal at all. that is the choice. >> representatives of the greek creditors returned to athens today after lawmakers approved a batch of austerity measures. the imf and the commission, known as the troika, have not been in town since january when the finance minister said he would not cooperate with them. voted to support reforms that will lead to a new bailout. he voted against it in the first debate. ash from an asian volcano has shrouded these guys of the eastern part of the country -- the skies of the eastern part of indonesia. the uptick in activity has 430,000 people from their homes. 30,000 people from their homes. it also has close down airports. -- closed down airports.

rishaad: asia is a world leader in travel. this airline is joining forces with yahoo! japan. scanner ceo.he sky thank you for joining us. you have been growing 40% in japan. why did you need yahoo! japan? japan are yahoo! and they havekers huge market share so we are delighted to work with them for the benefit of the japanese traveler. it is a massive market, isn't it? gareth: it is a huge market but every time that we do something works for the japanese market, the third biggest in the world, we are also benefiting from alert around the world.

travelers around the world. i think travel is one of the original network effects. it what the market is like and what it tells us about what is going on in the global economy. we travel market is strong and resistant to booms.on and travel is just an embedded part. it is incredibly important. and all aspects of travel up to 10% of the world gdp. we are seeing strong growth internally. if we are to win we must win in asia and countries in asia. rishaad: let's go back to the yahoo! japan joint venture.

work?ll that actually gives me an idea of the business model. me an idea ofe the business model. gareth: it is a classic joint venture with shared interest and we will be looking for this to accelerate previous growth in the market. essentially we will be integrating initially with the yahoos search engine to give japanese travelers results after they switched their phone or desktop on -- switch their phone or desktop on and use the yahoo! search engine which the majority of japanese do. limitedhave functionality and expand over time and limited trials have been promising. rishaad: do you use this type of v, will you be employing it

in different parts and if so where else have you done this? gareth: this is the only joint venture we are operating. and madeet up offices acquisitions. it really varies on the market. there are a few markets around the world that are so enormous that they work best with people dedicated, software engineers at the start and product people and marketing, etc., and commercial people, build up dedicated to that market. we essentially have a global platform and that is part of the strengths that one action in one country will actually benefit travelers all across the world. rishaad: you say that it is fairly robust, the travel market , and recession proof. thes going through passenger numbers and one thing

that struck me is on the first business class numbers there is a massive fall off in travel between africa and the 40's. -- far east. i was wondering if that would reflect, say, a waiting investment. gareth: i think that is -- waning investment. gareth: i think that is quite possible. we have offices in the fourth would be africa and the middle east. that is a sign of prioritization. to say that online travel is a bust, i am not sure. is difficult to be profitable in the airline business and digital companies are at risk of being the profit extraction engines of the real world. they represent 1.5% of ticket value.

my contribution to that debate. flows show upobal in our data and we do do analysis of that. areth, thank you so much for joining us and thank you for talking about this jv with yahoo! japan. these skyscanner chief executive. up next, take two. -- earth takes to. nasa's latest discovery trends on social media. ♪

do turmoil in the chinese stock markets is a blessing for india -- the turmoil in the japanese stock market is a blessing for india. more than 700 million into the mumbai market. while investors are worried governmentffect of reforms the imf for next that the indian growth will surpass china this year. surging -- project that the indian growth will surpass china this year. amazon shares surging after-hours. asf bezos is expanding competition intensifies. sales of the cloud computing division rose.

the jump means that they have surpassed walmart as the biggest retailer in market value but in sales it lags behind. mcdonald's reporting a disappointing quarter and global sales declining. particularly poor in asia after a safety scandal in china. second-quarter profit down 13%. mcdonald's expecting sales to rebound led by growth overseas and a pickup in china. they say that food safety shoes -- issues have been overcome. let's take a look at what is popular on social media. high, we are talking about nasa. the discovered what is known to be earth to or the closest children -- present. . -- closest cousin. fascinating pictures.

i am going to go more scientific. it has a store that is like the starhat it orbits of -- that is like the sun that it orbits around. the year is a little bit longer. juliet: hopefully a better climate than we have seen in hong kong. luke leavitt has plenty of time to prevent living things. the planetlion -- has plenty of times to living things. it is 6 billion years old. the older cousin. a distant planet near the sun. yvonne: people are talking about when we will get there and when we will have contact with the planet. one user say how long does it take to get there. juliet: a couple of million years. yvonne: to a half-million times twother away than pluto -- and a half million times farther

away than pluto. juliet: we are looking at mongolia. we all have google are. -- earth. this is a horse-drawn carriage and mongolia. -- in mongolia. they are trying to get tourists involved in the economy. and we have people saying that it was the coolest street view ever. yvonne: we send it back to you. rishaad: up next is the name and shame game. live in hanoi to find out more about the crackdown on tax evaders. this is "trending business." ♪

♪ emily: it has changed the way we watch video, redefined going viral, challenged governments, and even launched the career of justin bieber. today, youtube, now owned by google has more than 1 billion users, uploading 300 hours of video every minute. it all started a decade ago with a trip to the zoo. and one of the founders says he is not quite done changing the way we are entertained. joining me today on "studio 1.0," youtube cofounder and former ceo, chad hurley.