ahead ofome in expectations. tell us what you think about our top stories. follow me on twitter. believeu would not this, but we have more shanghai swings. juliette: you would not expect anything less from the shanghai composite. let's look about -- how it has .erformed we have had one of china's most famous short-sellers tell us he has gone bullish on the market. it seems imf manager christine lagarde also came at as bullish. thisll withstand all

volatility. the hong kong market looking more stable. we had some news from the casinos this morning. all looking quite positive. jakarta coming online this morning. which of the positive movement in global equities. japan is looking quite good. than forecast. the weakness from shipbuilders and south korea. down .75%. australia being helped by the rebounded commodities. actually leading the game in australia. that sentiment is flowing through into new zealand.

markets in general looking pretty good. rishaad: you know what happens with that. well, smartes as sales leading to another profit miss. shery has been looking to the numbers. a couple of things one-run % this time around. the latter is more worrying % the first. enough foro produce the popular edge model while the traditional model struggled to challenge apple's bigger iphone. at the same time, samsung has to struggle with slowing demand in china. symptoms market share is falling

to 8.6% in china. net income coming in at $4.9 billion in the three months ending in june. falling below analysts estimates. 2.obile unit slumping 37% to 4 billion dollars. mobileght spot was the profit business. expect to have orders for the main processors in the next iphone. a key challenge remains for samsung, that being the strengthen the korean won -- now we're seeing sam son stock taking a hit down 2.7% after those results. will have a more detailed look at that story later in the program.

over to davidget inglis because he is having a look at the stories we're watching for you today. been: we will, and it has a difficult year for the south korean economy. things enough been this bad in many years. about half of the economy relies on off-season shipment. it is slumped for six months now. it is really worked its way into the credit of these korean companies. the first half of 2014, cut the credit scores of 40 south korean companies, raising only five. it is they were situation since befrore the global financial crisis. incluides -- includes

shipbuilding and steel. cyclical sectors. let's get to these comments not from the imf's christine lagarde. she wants regulators to step in with the stock market, which got a lot of people talking outside of china. it criticized the government of over meddling. she said it is a young market, alearning curve, and no one should be surprised that china moved into maintain order. it is misguided if you want to put china side-by-side with the u.s. which is more established. whether these wild swings will affect the real economy, listen to what you say here. christine lagarde: we believe

the chinese economy is resilient. and strong enough to withstand that kind of significant variation in the markets. asid: finally, she sees this to bet term intervention included in the imf's basket of reserve currencies. ok, last, let's take a look at facebook. shares fell in after hours trading. investingsurge in that pushed income. million, andg 719 rose by almost 14%. that is for the world's largest social media company. other metrics, mainly as a

spending,f increased willook warned that this be an investment. margins did fall. monthly active users. , 1.3illion active users billion of which logged in at least once using a mobile device. i mean, this explains why facebook is hiring in this and other business lines. you a reality, artificial intelligence, basically getting more people around the world access to the internet. investigators are trying to work out whether a debris found on the indian ocean may be the missing malaysia airlines flight. we can find out more from paul

allen. it appears to be part of a plane wing. paul: that's right. australian investigators think we could have a warrant and 24 hours if this is a piece of the missing flight. it is certainly the most encouraging lead in the search since the plane disappeared 16 months ago. this appears to be part of a weighing just over three meters long -- wing just over three meters long. airbus went down back in 2009. sevenis a boeing triple and is heavy serial number on it -- it does have a serial number on it. say that ifearches

it does turn out to be the plane, it could are drifted far. the transfer minister agrees that if it is identified as the plane it would be consistent with the modeling that it did go down somewhere in the southern indian ocean. that is where the australian research has been taking place. and want up investigators pinpoint the cause of the crash, but at least it would give some closure to the friends and relatives of those who lost people on board that plane that it did indeed crash. as for the reasons, those are still under speculation. rishaad: thank you, paul allen in sydney. we will learn more about that plane crash. up, the inflation conundrum in india. it is clout in the outlook for

interest rates. we find that why as we head over to mumbai later. selling sri lanka to foreign investors. in a couplehim why of minutes. ♪

rishaad: sri lanka's stock exchange that 15% today. public parliamentary elections coming up, what are investors his sentiments? let's get a look. thank you for joining us. let's start up with its election. what sort of questions are you having to field from foreign investors? the potential for foreign investors is looking for

stability and tranquility. owerourse, the regime in p c -- facinged and election again is the synod andght in the law in 1978 prior to the region india and bangladesh and someone. rishaad -- no question about it. -- theykland policy have an open policy. ofy are meeting with a lot economists. they will instill more confidence with the outcome of the election. rishaad: it depends on who was going to win. who would be negative or

positive? the negative attitude by any investment because indications are such that the government in power will get reelected. be not so seems to much getting far as far as the activism is concerned. hope for areate more better tranquility in the state power. we have to hope that we've been given particularly with the things before the people in sri lanka by the ruling party. with so many zones that will be , and we have an emphasis are giving some kind of unfair

without incentives -- .nparalleled incentives look at let's take a what it is looking like since the january presidential election. have you seen a big take up? is china negligible at the moment? upul: china has been blowing up in the last year. en from thebe approaches to us as far as china is concerned -- friendly approaches to us as far as china is concerned. a couple of projections in the oft city, and a couple

things have been looked at later. hopeful that it will be smooth after the elections. rishaad: just very quickly, any big projects people should be interested in? one part of my question, and apart from china, what are other countries that are investing heavily in sri lanka? sector, theropean british, the german, they are very good to be involved with sri lanka. we'll to meet with them sometime next week. rishaad: from the sri lanka

board of investment joining us from singapore. it is time now to take a look at what is making headlines around the world. of thenal on the downing flight over eastern ukraine. it was the only known vote to support the call. russian ambassadors of the one justice which may not be impartial. everyone on board was killed. senior officials from pacific countries have launched four days of talks to hammer out an elusive deal that is been in the work for years now. the u.s. the delegates had to resolve what he called tough political issue standing in the way of an agreement.

, -- thatexports includes exports. the hunter who helps an american tourist kill a lien has been charged in zimbabwe. lion was protected by law and that was backlash after bait was used to lord him out of his safe area -- lure him out of his safe area. the man believed the hunt was legal and not no sense soul was protected -- cecil was protected. rishaad: ranking of the world's strongest banks. what a global view is not necessarily a good idea. ♪

♪ hang seng bank has retained its title as the world strongest lender. let's start off with what makes them number one? >> they have a very strong

historical track record. they. they're very safe and stable over ration -- operation. it allows them to expand businesses. rishaad: they're fairly conservative, they have a lot of capital adequacy ratios. what are the challenges for this bank ahead? >> like all the other hong kong banks, it is facing challenges. during the slowdown, and also they are under modern pressure because of the low interest rate environment. i think they're doing very well with the brokerage. well, what is, next for them? >> i think the outlook is very

promising. they have locked in 4 billion hong kong dollars. bank toysts expect the distribute more dividends to the shareholders. rishaad: uber talking to him earlier said it was a masterstroke. alfred: that's why we can have that idea. what about some of the lessons that -- rishaad: what about some of the lessons the big boys could learn? is, you thinking about when is a good time to be a global conglomerate. there are so many around the world, and operators are asking the banks to increase their capital requirements. maybe now was a good time to

focus on areas that you are more familiar with. rishaad: why are so many asian banks in the top 10? the reason is simple, they know what they are doing. three singaporean banks in the top 10. they are all spending outside of singapore. they're very focused on markets in asia. compared to europe and the u.s. rishaad: thank you very much. let's turn to some of the other stories. we take a look at wind resources. a drop in profits the last quarter. down?s it done on the way that was a miss, but the

analysts have been calculating. casino revenue left out a loan. this extends to things we have seen. indeed, the authorities at the moment trying to stamp out the excess. .4%. have a look of it up falling share price in recent months there. statement released a decrying the cruel way of crocodiles to make the banks. to penalize any violators. to $68,000 pera -- they cost as much as $68,000 per bag.

they're debuting a tv musical that features the offspring of correlative ill -- cruelle deville. it is in stark contrast to the princesses that are recently made money. up next, looking at that on the slide, underestimated the bonds. edge.ularly, the f6 let's you would is doing well in the business. ♪ ♪

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♪ rishaad: a look at our top stories, shares lower coming under estimates in the second quarter. it misfired, and lost ground to chinese rivals. a sixth consecutive decline, the phone was released in april, but samsung misread the demand. shares and other folder soaring

come up almost 9% the most in almost four months. that compares with a loss of 80 million in the same. a year ago. malaysia airlines definitely in government says it is too early to know if they found a wing from the missing plane. this trillion team-leading the search is examining photos. a 777, theld be from kind of plane that vanished. japanese close to the break. markets are faring quite nicely. are following on from the positivity we saw in the u.s. and european markets overnight. that theyxpecting now will be red hot in the u.s. by the end of the year. the shanghai composite has just

turned positive. speaking wildly once again today, more stability coming from hong kong. a little bit of weakness coming through in singapore and in south korea. i will tell you why in a moment. japan has gone to the lunch break. some good movement going through in australia and new zealand up by 4/10 of 1%. , quickly mention samsung, but we're been watching other players. these of the world's three biggest shipbuilders. you can see why, the three of them have announced $4.1 billion operating loss. that pressure is coming through especially the one down by 5%. then me looking at the mining

stocks in australia they're all looking good there. up by 4%. they're beating the straight with its earnings in japan. looking even better up by 2.7%. a little bit of positivity coming through on the asian markets for a second straight session. we will continue to watch what happens on the shanghai composite. rishaad: now focusing on our top stories, the slide, misreading demand for that galaxy s six. particularly the edge series. you could blame them for some of this, but some of the was out of their hands. >> one thing with him is speculation for the edge. -- stop it would have greater demand, and they did not. they failed to compete with the

iphone. all in all, the market law sharing in china is folly to 8.6% from 9.8%. you can see the net income falling to $4.9 billion. hit was in the to $2.4nits down 37% billion. rishaad: that has been a stalwart is in it. shery: the bright spot for samsung at this point. their semiconductor business is rising over 40%. that was helped by the management of the f6 and samsung providing their own chips for those smartphones. not to mention we are getting new orders for processes for the next iphone. rishaad: tell me about some that we have a dimension. secondly havoc with the companies.

companiest the only theing the heat from that self great -- the south korean products are losing ground. that is one thing samsung has also dealt with as well. we are seeing korean firms in battling not only on the korean won but slowing in china, not to mention that outbreak dampening demand at home. we are hearing from the local affiliate that they just cut the credit scores of 40 firms in korea. they raised the ratings of only five in company. that's the worst ratio we have seen since 1999. shipbuilding and oil refining of the hardest hit sectors along with steel. we take a look at and of the technology company going in the other direction.

we're talking about nintendo. surprisingly good profits there. >> good morning. for thetheir profit first quarter took the market by surprise. the weaker yen is the main driver. this is a coveted against gets three quarters of its revenue overseas. quarter,ril to june that is a ¥10 billion windfall in those three months. when you look at the unit sale numbers, the picture is finally less encouraging. the sales for the platform still fell, and the wiu continues its slump. rishaad:tell me about it. coming about's platoon --

splatoon and the effect that that has. >> it is one bright spot. it is a very friendly game despite being a multiple shooter. the first one for nintendo. the gamers a spray ink instead of bullets. it got rave critic reviews. fell. wiiu sales most investors looking at nintendo enough focusing on their entry into the smartphone market. rishaad: they changed strategy, any news about further plans for nintendo on the smartphone side of things? el: there were no new announcements yesterday. but, all indications are that the company is on track to release their first mobile app as early as september. investor confidence

which is driven their shares in the past four months. another possible catalyst for share gains could be that partnership with universal. a lot of investors see this as a sign that the company is more willing to take a broader look at its intellectual property and maybe have a more disney like approach to the iconic characters like mario and zelda. rishaad: good stuff. we will check on some of the other stories we're following. their profit more than tripled. 550 is coming in more than million dollars. that was ahead of expectations. drop.lping to upset a spree haspending

overshadowed better than anticipated sales. however, increased hiring and investment a mobile apps and add features send costs surging more than 80%. investors are seemingly unimpressed. the executive the singapore exchange has big plans for southeast asia. he is confirming his opening two new acquisitions to help with growth. reporting profit up 24%. is struggling with stagnant's trading volumes. it is attracting few new listings. today.down 1.8% to want to have his cake and eat it. to cut its ownk.

duties on indonesian goods. in the report saying this is a rising trend. can you tell us more about that? >> that's right. world,een all over the and indonesia in recent years. it does seem to be increasing. they're facing a current account deficit. it just won't go away stop exports are struggling because of weak commodity prices. the strategy has been to limit they wants to develop local industries. the problem is, some of those industries are not there yet. what we see is less choice for consumers. rishaad: can you give me a couple of examples? for example, they

cut cattle imports from australia. they're trying to develop a local beef industry. that is a country that is not so much spaced for herds of cattle. seeing is higher beef prices. he raised import tariffs for lots of goods including cars and plastics. these are industries that are trying to develop. joke is hypocrisy because owi is asking for lower tariffs to indonesian exports to places like britain. to restricty a push imports coming in while trying wto limits on that. rishaad: very quickly, is there

any need for foreign companies generally in indonesia? get: there is a push to foreign companies to manufacture here. of course, they will be subject to import tariffs. that has worked for some industries, particularly car manufacturing. phonetarting on manufacturing. a lot of automakers now manufacture here. if companies don't, maybe there isn't quite the sales to justify that. they will see those products more expensive in indonesia. it could it harder playing field for them to tap into. rishaad: thank you very much. the bureau chief is joining us there from the indonesian capital. thailand is cutting its growth. it is the third time they've done that and is putting pressure on the government. let's get over to southeast asia

, when can we expect a reshuffle? is it moving the deck chairs more than anything else? : always the skeptic. it is tough, we don't know. the prime minister said he may reshuffle, but won't be pressured to do it. there are many reasons why he should. it will have build confidence. the economy is in a bad state. it is not the powerhouse it used to be. not too long ago, now it is been down every month cents march two years ago. exports down every month this year. estimates cuts three times, consumer confidence is dwindling. you don't need anymore reason. some say even if that is no theer -- long-term plan,

government needs short-term measures to stop the bleeding. it is bleeding. take a look at the markets. the only market in asia to post a lows this year. theworst performer in region. the economy needs immediate help stop. rishaad: you have to also give them a bit of slack because that drop in thailand is one of the worst in history making things even worse. haslinda: the drought is the worst in almost 30 years. soldiers are on patrol to stop people from using water. agriculture has been hit. rice exports will drop even more and it is already at a record low. agriculture accounts for 7% of gdp. from a political perspective, a prolonged drought may lead to military sentiment.

the government has promised to spend. it wants to help lift a growth. it set aside the highest ittion, the problem is that is not succeeding in spending it. planned investment, just not working out. thailand is not in a pretty spot. rishaad: thank you very much. joining us something about. boomext, japan's tourism is causing transport problems. how the country says automakers are responding. ♪

rishaad: here is the situation with the australian dollar. it is below that handle. there we go, let's have a look

at the korean won. it is tempering some of the recent strength we have seen not by much just a .5%. the japanese yen, take a look at what is happening. currently in tokyo. japan's tour bus industry is booming. it is because of tourists from china. let's go to the capital itself and joined craig our auto news reporter. what are they saying about all this? mitsubishi,ames, and he no -- a toyota company. make tourcompanies buses. they are seeing huge orders. that in theaying

first half the size many orders as they typically do in a year. dust the last three months at sales have been up 60%. , certificate amount of demand no wonder when you look at the month of in japan, largely driven by visitors from asia. the weekend is really jarring andists who can come over buy tickets cheaply. leading the charge is chinese they doubled the amount that they were last year. more than 2 million visits by chinese nationals of the first six months of this year. rishaad: craig, it is a bright spot for the automotive side of things in the country is it not? craig: you are starting to see some movement of the auto makers bringing some production back to japan. this is a slow-moving thing.

bute he came into office, in additionare weak to production. you are not seeing substantial production coming back right away. you are really seeing a difficult time for the japanese auto market. this is a lonely bright spot this time in the year. craig,? between beijing and -- is this sustainable? have another spat in beijing and tokyo could this all go away? craig: i don't think it will have much of an effect of price of goods. you also have the olympics to think about. that is one of the things these bus and defectors are talking about. -- manufacturers are talking

about. economy, andng the you can see a lot of activity in the leader of the olympics to really change japan and open it up to more tourism. that means more buses, and more demand from domestic tourism as folks move into cities and want to go back into visit areas that can't easily be accessible without buses. rishaad: thank you. let's have a look at the stories making headlines around the world. you have the leader of the taliban is dead. he is said to have died in pakistan more than two years ago. it is not known how he died, or why the capital has released this information now.

it further complicates peace talks with the taliban which us to be split as to whether to talk or to walk away. a man will face court in sydney today after a deadly bombing in the early 1980's. you was arrested yesterday in connection with the attacks, their families a lawyer and members of the public died. by the time the allegedly had a long-standing dispute over a custody battle with his ex-wife. boy has been -- 8- boy has become the first child to receive a successful double hand transplant. doctors spent 11 hours on this complex procedure in philadelphia.

the hospital staff praised him for his bravery and said he should be home in a few weeks. rishaad: up next, which price is right? where -- we're headed to mumbai to have a real look at the inflation rates. ♪

rishaad: mixed messages coming from india. he has been looking into this, it is a very different readings are they? that hass something been discussed. they are not all pointing in one direction. on one hand you prices that are

falling, on the other hand you have consumer prices and retail prices which have been rising and climbing more than 1% than the end of last year. that the governor is keeping his eye on it. we are just days away from that. he has indicated that his decision will watch very keenly what is happening on global factors. as well as inflationary pressure, we have some from the fed earlier indicating being pushed for the first fed rate hike in the decade, you had a good monsoon time. and the growth is not quite picked up as everyone hoped it would. the governor has a benchmark repurchase and 2015 to 7.25%.

it is still amongst asia's highest. they expect he would give it unchanged. rishaad: thank you. that is it for "trending business." we focus on the indonesian airline talks. ♪

>> i am john halperin. if you are thinking about lying, you may want to think about running for public office. on the show tonight, two candidates in one advisor. first, donald trump in the news again today defending it past comments about breast-feeding in a deposition. now his remarks famous mexican immigrants and prisoners of war. there is a new flat over his divorce.