remains near five-year lows. and a bumpy flight in china and hong kong. buyer is delta looking to expand its presence in the asia-pacific. follow me on twitter. and don't forget the #trendingbusiness. let's get straight to the market action to we are clawing back some of these losses. >> we are seeing a couple of the big players like petrol and china and positive territory and paring back losses on the a market. that is kind of important because the try to very much consider the state of state linked markets. it is obviously going to stop the route, but having said that we are still down 5% on the shanghai composite. as is the biggest two-day fall

since june 2009. back at the same levels on the shanghai composite and the index. it is a must as if that relief rally didn't happen. let's have a quick look inside and see some of those major movers. we are seeing quite a bit of selling coming through from some of the state players. we are down by 12% but also seeing a little bit of support which is different to what we saw during the last part of this yesterday. the selloff is really contribute into weakness across the agent region. markets in the red for a fifth session. 1% in japan and the selloff continuing. down 1.3%. australia's being hurt by the weaker commodity prices. investors are really giving that some down to that stake sale worth about $450 million, looking at china, shares down

2.4% at the moment. as i mentioned we are seeing good movement from petro china which should support the overall sentiment. shanghai, it fell by the daily limit of 10% on the shanghai composite. mining down seven point -- 7.09% today. rishaad: our top story is chaos in china or it just following up from what she has been talking about. second or state to the chinese stock market in history. regulators trying to reassure that they can maintain calm. have a backfired? yes. they are trying, you could make that conclusion.

but looking at how things are trading right now, juliet took you through some of these numbers. shanghai composite of 4.4%. you put those markets together and we're talking 2800 stocks. north of 2100 are down. 1600 are down more than 9%. futures are down 3.4%. get an update on the money market rate. as we move toward end of the month -- we're lower today at 1.36. still at the highs of early may. as we had to the end of this month you have a lot of these month-and requirements. let's bring it back to hong kong. 12.5%.

--are at 28 percent now these numbers came out earlier mostly talking about monetary policy. -- china'st the csrc version of the sec had to say yesterday. continuing efforts to stabilize the market, investor sentiment and prevent systemic risk. it doesn't look like we are getting that. compared to yesterday it is looking a little bit collar but taller, a little bit but at 3% they are looking pretty good. they are set to urge china to start exiting these stocks. we do see in the absence i guess of any support from the government that the market can

stand on its own. that is an update. another bad day here. look at that story throughout the program. oil extending declines for a fifth. no signs of the global glut easing anytime soon. ben is over and melbourne. 43.97 is the price for wti. >> you are quite right. it is all about the glut that there is too much oil. the demand is about the glut. you do not have to look too far to find out where that oil is coming from. in the u.s. they are producing at the highest rate in three decades and they are forecast for another gain and supplies and that will keep supplies

almost 100 billion barrels above the five-year average. if you look at the middle east and opec, they are at a record this month. opec is continuing to pump above its quota there did there is the great unknown of a run. -- of iran. some forecasters say it will be a gradual gain in supply but if you look at past this ructions and use libya and venezuela as a guide, looks as though the iranian oil might hit the market quicker than anticipated. oilave west texas and brent in a bear market at the moment at this point -- point doesn't look like there will be any relief for prices. rishaad: we will turn our attention now to some of the other stories we have been watching for you today and more with zed.

>> big news in the airline world today. tracking shares of china eastern more withairlines. where the delta will invest $450 million. it will give both airlines a stronger foothold in the markets to sell flights between them as well. china eastern is based in shanghai. ceo'sa city that delta has made a focal point. delta and united are competing for us here both the transpacific market. player atalso a major narita and across the pacific. it is the biggest u.s. airline across the pacific. recent delays and technology failures have hurt reputation. delta and china eastern already closely cooperate. the financial review says that westpac is losing almost $1 million a day because of a

computer glitch. the afr says the system does not allow the bank to charge different rates to property investors and owner-occupiers. onlypack is one of the australian banks not to raise rates. sources say it may take months for westpac to solve the problem. tracking shares in after-hours trade in new york. shares have been lower on the latest results of the search giant, slightly missing analyst expectations. earnings were $1.31 per share versus an estimate of $1.88. the baidu forecast trails analyst estimates. they say they will earn between 2.3 billion and 2.5 billion. the process of transforming -- transforming its business to focus on the mobile consumer in china.

it is spending more money to drive traffic during peak seasons like the new year. rival back uber's major taxi hailing rival in china. rishaad: later in the show, looking for an international weekend. indonesia set some revised foreign ownership rules. tackling modern based slavery. there. human trafficking, but is there a political inference behind it?

rishaad: let's look at some of the headlines making -- some of the stories making headlines. the greece financial shutdown enters a fifth week.

primus or alexis tsipras telling -- prime minister alexis tsipras telling ministers debt relief is being openly discussed. afterts remain on alert an attack on a police station in boone job -- punjab. pakistan's foreign ministry condemned the attack which could derail cross-border peace talks. upgraded malaysia on its list of modern slavery. tiersia moved up from three to two. 's transpacific trade deal is contingent on an improved position.

we will get more on that and we are joined now by jeremy douglass a representative of the u.n. office on drugs and crime. thank you for joining us. how much of it in your view was this upgrade for malaysia based on the tpp rather than facts on the ground? cannot honestly say why the u.s. would have upgraded malaysia for the reasons exactly but when i can say is they have a methodology to rank the countries tier one, two and three. they look to see what the countries are going to take action so when they are lowered they are saying malaysia need to improve in certain areas. over the last year they would have noticed that the country had taken certain actions. rishaad: how are you seeing the situation at the moment?

what you would have seen, it is a dire situation in parts of the region and you have a lot of movement across southeast asia, primarily from places like myanmar or m bodie a to large -- or cambodia to large labor markets like in asia. there is not really a good for migration. what you have is criminal networks facilitating the movement of these people. it is a dire situation and it requires great attention by the government. the body itself has been talking a lot about it and indeed having many meetings and summits. has anything concrete come out? there have been some good

statements made. high levely at a saying that action needs to be taken. as i said. politicians are getting together making the right statements. some of the countries are making an effort, for example, malaysia which would have made justice efforts to have the ranking raised. there is an effort for the countries to work together on this. it means they have to work together much more concretely and that will take beyond political statements. barriers will have to come down in terms of the mindset and they will have to start collaborating. rishaad: we are talking closer regional integration. how does that affect the trafficking situation?

guest: this is a pretty unique region. this is this big trade bloc that the region is becoming. what you see within that trade bloc is some of the highest gdp in the world. at the one end singapore and at aos,other end you have l myanmar, cambodia. this huge desire of people in the poor states to get to the wealthy states. this region needs to take action in terms of its ability to manage the movement of the people and to manage its labor markets. until that takes place you will have kill -- criminal markets looking to capitalize on this opportunity and movement of people. the systems in the states are not in place to deal with the criminal networks that are there. rishaad: broadly, what would you

say is the agency's recommended counter the human trafficking? really have toes start working together on this which means their law enforcement agencies have to start looking at each other as though they should be natural partners on this issue. workingd to start together to investigate the criminal networks across the region. if you would have seen this crisis coming into indonesia you would have seen the movement of people across several states at one time. the networks facilitating that movement are operating in several countries. they have no choice but to work together to counter those criminal facilitation networks. that is not easy to do because they do not have collaboration on the side of crime. rishaad: thank you so much for joining us. fromy douglass joining us

the united nations office of drugs and crime. you could call it minus. the internet giant subtracting itself from the parade of social media.

rishaad: these investors have

agreed to buy -- was only founded last year and is one of several international firms looking to expand in bermuda. chinese investors picking up more of new york properties buying six buildings in the upper east side planning to build condos. yorkse investment in new real estate has surged in the past two years. baidu shares on the way down after hours. net income up 3.3%. sales up 38%. 6% down and share price. lee will ben expanding more in the online to off-line as this is. smartphones continue to

drive internet use in china. here is a look at how online access is growing. ♪

rishaad: let's have a look at what is trending out there on social media. >> a lot is happening out there. we will be starting with the olympics. boston had been in the running for the 2024 olympic games. the people of boston and massachusetts said no. the mayor was not willing to sign the agreement because he was concerned that taxpayers would foot the bill. these games come with big costs. interestingly, the people of massachusetts saying this is something we will not take on right now. they have been speaking out on social media. locals are really voicing their opposition. could not find many people supporting it. thank god, it would

have been a total disaster. big dig 2.0. a reference to the very projected -- protracted underground highway from there was a criminal inquiry and all sorts of things. another one, i cannot even imagine how they would've pulled this off. as we look forward, not backward, there has been a lot of speculation. there is some criticism of china as typically happens in these cases. at the games, there has been a lot of comments in support of china. kazakhstanng on -- doing its part. the fresh concept. responsibility. convenience. >> the question there is oftentimes these empty stages remain empty after the games.

not sure how much of a return on your investment you can get back. they are making it easier for you to get in the other platforms. you will note longer -- longer need to sign in on google plus. it is being called the most recent online divorce. lots of comments coming in. you have users basically saying a collective sigh of relief. one user is saying, and all caps, google plus and youtube do not have to be linked anymore. yes. to the other comments, some fairly popular online personalities. this is a you tube personality -- i just heard they announced google plus and youtube split. it is like my best friend and

his terrible girlfriend just broke up. celebrating with a bottle of bubbly. others saying the same thing. finally -- all caps. rish, we will send it back to you. going back to hong kong, china and japan. hang seng is positive. we started off with losses nearing a 5%. 2.6% decline thus far.

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visit philipslifeline.com/caregiver today or call this number for your free brochure and ask about free activation. rishaad: a look at the top stories, chinese stocks that in their biggest one-day losses since 2007. under concerns that unprecedented government intervention will fail to curb the market. down 1.5% at the end of the session. shares in china eastern plunging as much as 10%. china's second-biggest airline bite market value said the

millionwould pay $450 for 3% stake. the eastern shares have been suspended for a week. at income rising 3.3% and second quarter and sales up 38%. timeounder spending more expanding to mobile services. let's have a look. but shanghaicovery remains down. we are seeing some positive movement on the hang seng. let's have a quick look at some of the movers. petro china up 3% and china resources up 5%. the fact that it is doing so well in the shanghai composite is important because it is considered a target. we are seeing some growth there and we might see a turnaround for the rest of the afternoon.

china down about 2%. as you mentioned the shanghai composite has come off the earlier lows and is now down by 3.5%. still the biggest two-day drop we have seen since late june so still a racing that recovery. we are still seeing some weakness. yesterday's gains, pretty flat. we are seeing mining stocks there. let's have a look at some of the major movers that we are watching in china and japan. you mentioned china east fell by 10% in shanghai. they're currently down by 7.5%. paring back a little. that is the petro china share up .7%.

looking at the emerging market stocks, richard is with me now, where did all begin? yesterday's move was quite staggering. because of the amount of intervention the government has taken whether it is selling -- banning selling by major shareholders, etc.. what was interesting yesterday is no one was really sure how wide that plunge occurred. what it has done is raced even more questions what the government's ability, with all of the foreign power, to support this market.

rishaad: they said they would support the real economy without saying they would support the stock market further. what do you make of this? >> everyone is looking for signs of support from the government. the securities regulator, a very late last night did come out and say, there is no truth to the rumor. there was speculation that the government is starting to withdraw these support measures. no truth to the rumor they were doing that and they will continue their so-called stabilization programs to keep stocks going. it is clear that the government is very keen to maintain this market. what is interesting is that it was a record that fell yesterday. today it is back up but still, they are selling across the board. it shows there isn't really much confidence in what the

government is saying. >> where does this leave the international investor? rishaad: heading for the door. if you look at the shanghai shares in hong kong, they fell about 8 billion u.s. dollars in the past couple of weeks. when we talk to international investors, their big concern is that there is no transparency behind with the government is doing. government funds are driving prices. no one is looking at valuations are company earning stash they are irrelevant because of -- government earnings -- they are irrelevant because of government intervention. rishaad: where do you draw the line? do you want to start -- support stocks which have multiples of 66 times earnings? >> yes, that is the median stock

on the index. the government took a big risk by stepping in when the market is still at an expensive level. clear what more the government can do apart from keeping funds flowing in. the volatility that we suddenly started seeing resume has meant that other investors have had enough and are leaving. rishaad: the latest on china. that meltdown we saw yesterday, too. look at taiwan now. the plan to turn the economy around. saying they will boost corporate credit. let's go to deborah. what is the plan? >> you mentioned a couple things

by including heavy infrastructure investment which the government has been talking about for some time. yesterday they announced a plan to get 500 billion new taiwan dollars. the government seeing itself play a role of guaranteeing some of these loans from domestic banks. they have also said that the export-import bank will raise 20 billion new taiwan dollars to build a loan platform. all of this is part of a strong desire to get industries to revitalize their technologies and to innovate, upgrade themselves so they can compete with other regional players like southeast asia and china. to prevent themselves from being replaced in the global supply chain. rishaad: the government announced this long list of measures, what were the highlights?

probablyghlight was the loans. as i said there is a strong desire by the government to seize these industries like semiconductors and light panels as well as tourism. some of these industries that taiwan sees as being strength. thank you very much for that. let's check in on some of the other stories where a following. brent crude returning to bear market losing more than 20% from a high in maine -- may. prices continuing to fall. u.s. getting their fastest rate in three decades. to maintain market share exports from southern iran.

that selloff hit interim game prices overnight we are up marginally. just near six-year lows, nevermind about being up at the moment. investor concerns about a slowdown on the mainland continuing. china accounting for about 40% of global copper consumption. 70% less gold from hong kong in june than the previous months are in imports from switzerland also fell. the route and mainland stocks may have also hurt demand and buyers maybe anticipating further price to clients. bali has claimed the title of the world's hottest island property. it is about to get even hotter because new zealand is reviewing regulations to ban foreigners from owning luxury apartments.

this could be a veritable bonanza for some of those people who want to get out and invest. how soon can we expect changes to legislation? >> if they are to be believed, pretty soon. but we have to be clear, it is limited to only luxury apartments. some say it is a great move, a potential game changer. they say that asian property buyers from singapore are like a sleeping giant for indonesia. they have lots of money but have not been keen because of the lease hold option. most prefer to buy freehold. if this gets amended you can expect them to make a beeline for luxury apartments. they no longer need to use indonesians as proxies. they no longer have to structure purchases as a long-term lease. it is important for the government to ensure its property policies are clear nothing that clarity to

instill confidence in potential foreign buyers. that policy removal is expected to boost the prices. what will they be talking to? >> let's put it this way. prime residential prices surged 15% last year. anda prices were up only 5% the price increase was the biggest among destinations even with existing property regulations. you cannot expect the price gains to continue. is one of the biggest markets and land size. there is a lot of room to grow. what is worth noting is this. the expected pickup and property can help offset the sluggish economic growth. andis that a five-year low

anything to reverse that would be welcomed. rishaad: thank you very much indeed. at what wea look have coming up on the other side of the break. record budget. a look at hsbc's take on that. after this break. ♪ >> the british prime minister

has begun a four-day visit her in $1.5 billion to finance infrastructure. david cameron met the president and jakarta where the leaders agreed to step up security cooperations. expand tradeng to

links with the region. ansident obama has had unusual companion during his visit to ethiopia. the human ancestor known as lucy. the remains were unearthed in ethiopia and 1974. rareresident was given the opportunity to touch the bones which had been brought to the state dinner. and the filipino president has delivered his last beat -- budget speech. he's making his annual state of the nation address. the economy has grown by more from junk to investment grade. guest saysr next

they have delivered on key promises. thank you so much for joining us. >> they have a lot of money to spend here. are they spending it? proposing adent is budget. the hope is to raise fiscal spending to revamp momentum in the philippines. positive ifis quite it can channel more money into fiscal funding. it is badly needed if you have theybeen to the airports. have space to do so and they want to increase it. it was only about 3% of gdp. then the fact that population is expected to grow to 150 million by 2015 from 100 million currently, there is to spend onsure

both hard and physical and for structure in the country. rishaad: they are under spending and accused of being tightfisted. >> they have the opposite problem of most countries, in particular greece. they're having a hard time spending their money. the amount per year and the actual spending is widening the gaps. they actually spent the amount that allotted gdp growth would be much higher. the reason being that part of the success of the administration. his effort is to consolidate the fiscal space. that means they want to reduce that burden and interest expense payments. while that has been successful, the policy makers been very conservative with spending. they're having a very difficult time pushing up infrastructure projects.

rishaad: the point is why? why did have this problem. part of it is the capacity of capital. they have increased the sufficiency of spending and the next question is where to spend it. to this rich person's problem that they have fiscal space. quite obvious we think that the philippines will be in the best shape, whoever takes over the home. debt is low, fiscal as well as household. they are reducing dependence on the country and coupled with this they have an easy problem of where to spend the money. as i mentioned it is obvious that they knew to spend money on airports and railways. there is one positive this morning, and announcement that japan will spend $2 million on railways.

the major organizations have said the spending are from 1.2 4 billion from now to 2020. rishaad: this is his swan song. his last budget. how is he going to be remembered after this? he is only allowed to serve one term. contribution is that he has instilled confidence and optimism. interest90's their expense him it's was more than one third of their expenditure. now we think it will be only 15% by 2016. even if they are not generating significant more revenue, the expenditure is giving them space to spend more on what is needed. in particular, airports, etc..

rishaad: he said that the next election is a referendum for the straight and righteous path, presumably he will anoint some kind of successor there. yesterday he talked a lot about his legacy. -- the viceially president and the president do not have to run on a ticket and the vice president has already resigned to pursue his goal to become president and 2016. the question is whether or not he will stand behind him. that is something that he will continue to have to wait for as he did not make that that yesterday. if they stay on the straight and righteous path, the philippines could become the first country in a generation as well.

under him, 6% average growth. this is the legacy of the previous predecessor to what the president has done is give people the hope that the government is there to serve you. that is quite important. will beuture, the norm that people are expecting more of public officials. the problem for the philippines is quite simple. they are beginning to experience this really positive demographic transition. on the financial side, the excess liquidity, the ldr ratio is very low. the regional counterparts and indonesia or malaysia, the credit cycle is maturing. in the philippines there is plenty of space for credit to grow.

really, the question is where are they going to spend it and answer is obvious. rishaad: i cannot ask you what the answer is. thank you very much for joining us. fight to. having to keep its independence. we will head to mumbai when trending business returns. ♪ [inaudible] [inaudible] [inaudible] [laughter]

rishaad: indian lawmakers are backtracking as the government faces resistance and its push to limit the central banks independence. their distance and the -- distancing themselves from a proposed bill that would give the at ministration more control. tracking this in mumbai, what is happening here exactly and what does the leader do? therter: yesterday we saw

finance ministry distance itself from a revised draft off the indian financial quarter. the ifc which is proposing to dilute the powers saying it does not reflect the views. by comparison it is been proposed on monetary policy committee with seven members from the central bank and nominated by the government. it would not get the veto right there in the government is responsible for fixing all of the rate decisions and the proposal is just a draft and is meant to unify various laws that govern the financial market. the chief economic advisor speaking yesterday saying that the report was not really from the government. at present the government confirms that that does not necessarily go by the majority opinion.

in march 2013 to have talks -- they get a pass to the chairperson to supersede the decision. is likely to fuel tensions between the central bank and the government according to experts but will bring it in line with monetary policies. comments on that are being pushed to the eighth of august but we will hear from him as he come out -- comes out with his latest monetary policy and will have to answer questions on this. rishaad: thank you for that. but still you about the market trading at the moment. shanghai recovery story. the shanghai composite hang seng putting in a spur of 2.3%, losing yesterday well over 3%. we are clawing that one back for

the time being. that is what we have at the moment. asia edge coming up, avon and i recapping the biggest -- eve o and i -- yvonne and i recapping the biggest stories of the day. ♪

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john: i'm john heilemann. mark: i'm mark halperin. and with all due respect to boston, you were never that great a sports city anyway. kidding. ♪ on the show tonight, obama, clinton, walker and obviously trump, but first, huckabee. in case you missed the news -- breitbart, interview, holocaust reference -- blowback. president obama and hillary