moving into mobile. design to help users across the spectrum. in indonesia getting underway. -- half anhe session hour of the session so far. expect the people of the bank of china are not happy with what they are seeing. it is the last trading day of the week and we're seeing losses although they are not quite as bad as they were. down by 2.7% at the moment. we have seen china plus rate -- china's rate at a decline that happened last week.

the hang seng index down by 1%. you have jakarta coming online and they are joining. good pickup in health care stocks in japan. of .61%.i 225 and quite positive sentiment about japan's economy and the overall stock market saying this is not a systemic risk. let's have a look at the aussie dollar on the back of those gdp numbers that you mentioned. they were weaker than expected. the aussie dollar has dipped briefly on the market open. and again when the numbers were released. there does seem to be some sort of support because it had an immediate [inaudible]

ashaad: growth slipping to worse than expected .2 of 1%. let's head over to sydney. tell us a little bit about what is going on here. this was not completely surprising as it seems. in grade we was were expecting a poor number but this was even worse at .2%. some pessimistic souls were expecting .1%. this is the worst quarterly growth figures in four years. it was back in 2011 that australia last recorded a rare quarter of contraction. we're not yet never territory but it was disappointing. just surprising. we got a sneak preview with the

count, much worse than expected deficit, the worst in six years indicating a drag from net exports contributing .6% reduction. this number could have been worse had it not been for better-than-expected public spending. mainly the government ordering three warships. overall a pretty poor quarter .2% of growth. rishaad: we do want your opinion. #trendingbusiness. prompting action from the central bank. grexit the same just looking at where the currency is trading

near the upper end of that range. it might's for the second action. yesterday they did confirm that they didn't intervene in the market to alleviate some of the weakness in the hong kong dollar. that is the lower end of the rate. it is traded toward that ever limit. what they did was the bottom $2 billion u.s. the strength here is down to a few things. reasons, there is a widening in the differential. not only china. everyone else's except for the u.s.. the boe maybe. worsening them to -- forcing them to adopt policy. the hong kong dollar has been high almost as a safe haven of stability. that is the value of other

currencies around the world have been falling. the other angle to the story and while it is typed hong kong dollar it is not necessarily the same, the same case with other trading partners. strengthened to before i go -- and before i go let me leave you with this. the last time they intervene a four yesterday was back in the. the last four times the currency did approach that mark. there was one link in 2012.

you have done it twice and looking at how it is trading at where it is at. back to. -- back to you. sherry: it turns out they will have to you with fewer airbags. the biggest recall in history involving the replacement of 3 million airbags down from an initial estimate of 84 million. faulty products were found to my shout -- spraying shrapnel when deployed. point 4 million enslaved --

been replaced. netflix launches in japan and in the first foray into a major asian market. two thirds of the 65 million streaming video subscribers are in the u.s. he wants to reach 150 countries by the end of next year. management is the down growth expectations in what is a rapidly aging market. [inaudible] that is a 10th of the size of the streaming market in the u.s. intouccessful expansion canada, europe and latin america has increased investor confidence in the company's went

to fill the first worldwide online television network. take a look at alibaba. the company is betting on line. they are offering robert downey its chinese to customers. this will be in a partnership with constellation brands. this starts -- featuring wineries from around the world. theutives last week toward winery and they are looking for additional partners. they are importing popular brands such as conference thinkers and levites -- levi's jeans.

u.s. winds have overshadowed by exports from france, australia, and chile. oil is taking a tumble. coming up, we are clearing the air. india backtracking on a controversial tax law. break, goldman sachs remains overweight on china. find out why. inending business" continues two.

rishaad: chinese stocks me by

what goes on. an equity strategist has been overweight china. how long have you been overweight? is important to note that couple things. one is the relative positioning in the region and of the region has in terms of what the equity markets are pricing relative to -- particularly in u.s. dollar terms that we felt that china was more attractive. net of where prices are and what weluations are think that is the case. selection --be selected.

that is perplexing a lot of people. are a variety of factors. had a strongen we run, it seems like a long time ago. a shares were up 150%. , we look at the index, that was a less than half. on the way down we have seen the offshore starts did hurt almost one-to-one. they have ratcheted down. early because you had a number of stocks suspended and so people need liquidity, they basically sold. hong kong has come out of this

for a regulatory standpoint looking very good and well managed. valuations have been beaten down. and it is a result of the premium between hong kong and ishares expanding. it is long term but it is relative toward our expectations in the near term. in terms of what is priced into the market, the offshore stuff is trading at 8.8 times earnings. it can be skeptical about their earnings and you can be skeptical about earnings elsewhere in the region. we have taken down our numbers for this year and for next. as growth expectations have changed. if you look at what is priced another market down as well. market,ation of other take malaysia relative to where

it has traded blows during periods of stress is much higher above those perspective major correction lows than chinese. we think the risk reward is china has taken a lot of the pummeling and we think six weeks or now or two months when the macro data gets better there's a chance for a decent recovery. that is the thing here. this is an economy that is evolving. you mentioned the narrative surrounding china has changed. tell us about that. narrative has changed. expectation and the consensus is we would see a sequential improvement in u.s. and china are as the effect of stimulus are beginning ticket in. when we saw the data for may and june pointed to the fact that

the stimulus which had been put in place was beginning to result in sequential growth improvement. the data in july and august was deeply disappointing. that is for a variety of reasons but the point is data is not likely to get better until mid-october, late october. in terms of when we get some actual hard release. there are some temporary dislocated aspect. i was in beijing and the air is clean. impact onhave an august data. for that reason and a few others we think that the data will be software august and soft-ish for september. ,e may get some more confirming somewhat more supportive macro

data. that is why there is a risk in the near term markets. policys not credibility effectiveness. getting back to weston in terms of the shifting narrative, the narrative has changed from a moderate acceleration and growth and the fed raising rates which basically made for a tidy north asean story. confidence intervals been changed and there is much more of a focus on policy analyst finance on what policymakers were saying so we need some concrete, tangible proof. we are about six weeks away from that. hence the vulnerability in markets. rishaad: see you back in six weeks.

juliette: thailand has arrested a second man over last month deadly bombing. the borderined near with cambodia. police say he looks similar to the sketch of a man seen leaving the shrine on august 17. the prime minister said there is evidence linking the man to the case. human rights groups have welcomed a court decision clearing a journalist accused of navy.ing the thai they were charged after republishing a paragraph of a writers -- reuters report. russia is planning to work with china to design and produce a new wide-body passenger aircraft. russian officials say the deal could he signed by the end of this year.

this could require investment in the region. russia wants to strengthen ties with china as a counterweight to u.s. and european influence. live pictures coming through from aging -- beijing. they are expecting the president of south korea to arrive for this anniversary parade we have marking the end of the second world war. he will be giant -- joining 30 heads of state commemorating that 70th anniversary of the japanese surrender and the end of the second world war. we have not got the north korean leader. he will be represented by the secretary of the korean workers party. chinese authorities have been suggesting this is a parade which has been attended by the true friends of china.

we have had months of anticipation of this event. some of the other people who will be attending, most notably the russian president. we have the pakistani president there. -- this is what we have at the moment. the scene currently. the 70thommemorating anniversary of the second world or. -- world war. ♪

the logo has been scrapped over accusations of plagiarism. this is causing quite a furor in japan. >> this was on the top of all the tv news shows last night. this is the world's biggest

newspaper. todayggest story in japan because of the shame factor in the scandal. i think the big here -- big thing here is not the logo itself. it was very opaque the head of the organizing committee said last night we are not experts on design so we are not in a position to judge. the western is why were they making that decision the first >> they may help? not have a stadium ready in time for 2020. >> this comes on the heels of a huge scandal about the stadium. build a $2.1was to billion stadium. that might have raised a red flag. it did not. they have skill that back by about 40%.

they may not make the deadline of january 2020. that stadium whispers to be used for the rugby world cup which will be in japan. that is not going to happen. that sporting event has been thrown into disarray. rishaad: the story is on social link -- media. you the let me show love those that were similar to that. very similar look. this has been scrapped. a lot of reaction some japanese people on twitter and people all over the world. one person saying the stadium get scrapped. and not entreat start. -- a great start.

this animation, changing the old one. same colors. i would not have noticed if no one had told me. let me get to one fairly amusing tweet. heineken.s from i don't think they have changed the actual logo. back to you. at luxury cark sales rates when "trending business" returns. ♪

rishaad: the china slowdown can to going to -- continuing to unsettle asian markets. futures signaling a potential rebound and a pullback in the end -- the yen. this was propped up only by government and household spending.

gdp advancing in the first quarter. the aussie dollar dipping below $.70 after the data release, the lowest level in six years. hong kong taking unprecedented steps to protect its currency. they're buying $2 billion on tuesday. all design to prevent it breaking out of the strong end of its u.s. dollar. asian currencies being pushed down. this is a rare speck of green. we have the aussie dollar. in is thising territory. up i .8 of 1%. we did hear from the economy minister. not liken selloff is

what we saw in 1997 or when lehman brothers collapsed. in health care stocks. a very different story in china. they're down by 2%. seeing a bit more on what is going on with the economy. growing and have to paste economist had been calculating here. thatg his reaction to growth slippage. see how he explains his government's stance. strong job growth is contributed to the fastest growth in household income since 2013 and it has lifted retail sales. the sales are underpinned by an investment in housing which is 7.4% higher over the past year.

inthermore, we saw a rise building approvals to near record high levels. indicating there is more construction to come in the months ahead. we saw the first overall increase in construction in last 12 months. we are building more factories and offices today which are of sitting the slowdown in mining constructions and we have experienced over the past year. away from aon reliance on mining investment is well underway. it is most encouraging that today's numbers highlight the huge potential of our services sector. services are 70% of the us trillion economy with 17% of our exports. rose veryxports strong, 7.3% over the past year on the back of the lower exchange rate and increasing demand from asia.

facilitating the growth of the services sector by reducing and abolishing taxes as well as cutting red tape is delivering a dividend. the special accounts had someone of factors that impacted on the overall growth for the quarter. 7%ing exports fell by around in the june quarter resulting in major closures including operations at the world's just coal port being disrupted for about 10 days in april. mining export our up 30% over the last four years. about alan g and .ron or resource products mining exports will continue to strengthen. looking forward we are two months into the first quarter of the new financial year and the

government's budget is adding momentum to the economy. confidence across the economy has picked it since the budget. business conditions have risen to their highest level in the most five years. we're seeing strong rises in retail sales as small businesses took advantage of the $20,000 instant asset write-off to invest in new equipment. our economic plan overall is working. it is being implemented in full. employment is growing at its fastest pace in four years. the number of job ads remains close to the three year high. we cannot be complacent. in recent weeks we have seen some degree of volatility on global equity markets. commodity-based economies have failed to come to terms with a massive decline in their terms of trade. they have failed to diversify their economies. canada overnight reported they are falling into recession.

new zealand had a growth rate of .1% in the march quarter and it is racing significant headwinds. other commodity-based economies like brazil are also facing huge challenges. that are not -- that is not to say that there are not bright spots. the u.s. is growing at an annualized rate of 3.7%. there is a major driver of global growth. we are relatively well positioned for any unexpected weakness in china. is weakness, he has already admitted to that. that is the australian treasurer. half of what economists were expecting. saying that there are signs that things are about to turn. confidence picking up just a little bit. let's get to paul allen to see

what happened with that growth report. very top half. on september 19, the government will be fighting a by election. we would have to explain what if he would mean for the treasurer and the rather unpopular prime minister. he is managing to use words encouraging despite growth coming in well below expectations at .2% for the quarter. it was mainly driven don by week .7%rts that contributed a drag to growth. this was due to the government ordering three warships during that time. the slowest rate of expansion in australia and four years, that

was back when the country recorded a rare order of contraction. we're not that in -- quite in that territory yet but today's numbers were not good despite the treasurer doing his best to put a positive spin on it. rishaad: thank you. wild swings when it comes to currency markets spurring another central bank into action. it's been to defend the currency against the u.s. dollar. the authorityht back into the market after a bit of hiatus for a full month or thereabouts. >> they came into the market yesterday for the first time since april. the intervention was worth about $2 billion area they came in at the upper end of the trading range.

hong kong dollar is allowed to trade. yesterday the currency, we saw some strengthening across the top end of the band. they stepped in and why is the hong kong dollar suddenly appreciating? yuan by alued the shade shy of 5%. that sparked a lot of flows into the hong kong dollars for its safety and stability. ,any of the investment funds the money that is destined for china now needs a parking place. the hong kong dollar because it is a beacon of stability is being taught. that is what happened yesterday.

this pops up now and again, the story of revising the currency peg. >> there is some speculation that they may do that. the hk reserves they have reserves of $340 billion. the peg has served them well for more than 30 years. it has given investors stability uncertainty. in today's world where there is a lot of uncertainty surrounding china, the are saying, i cannot overemphasize the importance of certainty for investors. i doubt very much whether the hk will do away with a peg for the reason i just mentioned. we have got to get in mind this the- they are defending currency.

rishaad: there are new requirements. what have the done here? asked a financial institution [inaudible] must be set aside as reserves. as we just discussed, they devalued again by almost 5% last month. that was -- set off a speculation in the markets that there is more depreciation that is on the cards. many analysts are thinking that they are waking -- weakening to 650 a dollar. this is aimed at using that positioning in the currency market. they basically want to make it more punitive for investors who

are long the u.s. dollar against the yuan. rishaad: thanks a lot for that. let's have a look at u.s. car sales. proving resilient despite the turmoil in the markets. lexus continued a strong year for high-end brands as well. this suv by lexus launch late last year. we talked about this earlier. -- launchedh day a couple. the important thing is the compact suv. rave reviews in terms of roominess and efficiency. they're taking market share mostly from mercedes gl k. rishaad: let's talk about that.

how does this plan to earnings? >> toyotas forecast for the fiscal year still looking for profit to grow 8%. there is some takes in terms of u.s. sales. growth rate has been trending down. ofis down 9% in the month august. on the other side, the home market seems to rate -- the recovering for them. sales have been up three out of last six months. sales are going up at the high-end. >> they are. they are trying to gain back market share they lost. months, lexus sales have been up 11%, two times more than their german rivals. rishaad: thank you very much.

next, traditional treatments. a report on why chinese medicine is becoming increasingly popular around the world. ♪

>> police in nepal have shot and killed five people during violent protests over a draft constitution. doug is -- dozens more were wounded after officers opened fire on people they said were defying curfew. has not had a constitution. vietnam has been solid -- celebrating with a military and

cultural parade in hanoi. this year also marked 40 years the war. end of the day will and with fireworks in the capital. was the stadium, now it is the logo. the design has been scrapped after allegations it -- the creator plagiarized the logo. it is the second set act after the main olympic stadium was scaled back because of ballooning costs. the designer insists the logo is original but the games organizing committee [inaudible] christine lagarde, the at thesident is talking

university of indonesia in jakarta. she is talking about the imf -- seeingl growth local growth getting weaker. asia, asia needs to curb growth. and about china, she is talking about policy tools and offers that should be there in place to manage the transition into a more consumption-based economy. asia is expected to lead global growth that are slower than expected pace. she has been talking about indonesia. indonesia needs to streamline

and harmonize its investment rules and the government must tackle unemployment and they need policies to ease labor mobility. a wide ranging speech being made by christine lagarde area let's chineseto traditional medicine. it has been around for thousands of years and now it is winning a wider audience. patients are turning to the treatments. it is becoming a big business and a windfall for practitioners. when lisa moved to hong kong, the nursing veteran of 30 years was not sure what her future held. >> finding a job that was at the level that you see back in the states with -- was virtually impossible. >> her passion for health and so-called alternative their fees propped it a study of traditional chinese medicine. something shields will give her

an advantage. >> the door is opening. people want something different. people are tired of always being given a pill. >> the school of chinese medicine at hong kong university is seeing a dramatic increase in rent -- enrollment. year our [inaudible] rapidlyest is growing in western society. industry -- increasingly restful people are looking for less invasive treatments. it is becoming big business. chinese patients spend aliens of dollars each year with more than 60,000 products approved by china's food and drug administration. global drugmakers are getting in on the act conducting 24 trials

of traditional medicine in could -- accordance with the u.s. drug standards. hong kong is a leading house. exports are up 9.3% on the year and is an annual trade fair for manufacturers to showcase their products with exhibitors attending from around the world. enough chineseen knowledge that the whole world can share. >> the hurdles are becoming -- to become mainstream are cynical attitudes. what would you say to critics that say that this has been a lot of nonsense? >> i would laugh and i would say maybe. but let me tell you about it. india seeks to sort out

a confusion over corporate tax regulations. we are live in mumbai after the break. ♪

rishaad: india has decided that foreign institutional investors will not have to pay tax before 2015. let's get the details. impactll talk about the that this will have. has a retrospective text that has affected traditional investors. confusion is [inaudible]

sentimento be a positive for the markets. the market has seen a lot of volatility. received tax notices from the government. they would be issued to field officers and the changes [indiscernible] it is [indiscernible] legal recourse is time-consuming. the government will look at pursuing. on the 29th of this [indiscernible]

be thats like this could fresh notices will be slapped on them. notice would be circulated to --se officers are ring them or bring them not to issue any fresh claims. oure waiting to see how markets react. much thise just how comes back into the markets. rishaad: thank you. let's have a look at what is trending today. local -- logo,yo organizers have not scrapped it. people have accused them of plagiarizing. the logoe saying that and the limbic sorry mess.

olympics are a mess. it for us.at is asia edge coming your way next. ♪

mike: i am mike barnicle. john: i am john heilemann. with all due respect to kanye west, maybe you should consider something more modest. and consider second billing. ♪ >> or, trump as president. john: mike barnicle is back tonight.