shares soar after the long delayed result of irregularities, colleges, and top-level sackings. angie: also coming up this hour, and owed to coal. boost australian miners is being dismissed as ludicrous by environmental groups. the pain of parking. aboutkorea starts talks families divided by the 1950's war. we have reaction live from seoul . and great expectations. taking on china with big names and an ambitious plan. keeping an eye on the markets, the regional indexes -- failing to keep hold of the earlier gains. the nikkei down 4/10 of a

percent, of course that index declined for the past month. pulling the most funds out of japan in a decade. we are seeing profit-taking after a whole year of gains. cross, that bearish indicator, suggesting the index will see a further downside. in theeing a decline afx. the aussie dollar still trading at 70 u.s. cents. shanghai failing to hold on to earlier gains. g down 10%.n after falling up to a two-year low. let's look at the shanghai composite and what is being done this morning. it's losing momentum from the storage we saw earlier in the day. we had news saying that

regulators -- assigning regulators saying that it made a cost of assigning risk. 10 minutes into training, we saw it rise, but it has been losing momentum. also, china rewinding its 2014 gdp growth to 7.3% from 7.4%, and we are still looking for an update. angie: can you give us an idea -- for an update. to give us an idea on how much they are shoring up local markets. the recent selloff was high on the agenda when the g-20 met in ankara, the turkish capital. at china and india the global economy here. i guess there was a lot of noise being made there, but, you know, heat as well is like? or was there like as well as heat?

how you lookends at the situation. china moving, trying to reassure its g-20 partners that the significant volatility has seen its worst days. better days are ahead. that was the message of the ministry and finance officials. this was reflected in the statement the g-20 put out. the communiqué at the end of the weekend. they know that global growth fall short. engine ofinto the growth in key economies. they agreed to avoid competitive devaluation -- that is currency war -- and they talked about monetary tightening. and advanced economy. to the a reference united states. that is more likely. we may see a glimpse of that as early as next week in the fomc statement. competitive devaluation is happening and has been happening. that is done and dusted.

g-20 would likely not acknowledge our currency war underway. it happens are various reasons for various economies. obviously china fell devaluation to prop up the economy and we saw similar moves and companies across the region. rishaad: this is happily families. families. happy i think we have to mention the japanese. zeb: rishaad: the finance minister was not white playing ball, was he -- was not quite playing ball, was he? zeb: he was crabby or he was ready to go around. he said we need a better explanation from china about how they plan to manage through this very volatile period. ants ande, japan w asked when nation because their economy is very affected, as our once around the world. rishaad: thank you.

angie: the turmoil has been a subject for our guest all morning on bloomberg. the government is taking steps to ensure stability, but there are dangers ahead. >> at the current pace, the burned through the reserves by 15% at the year's and. at this point, the unemployment situation is beginning to take up, reserves are coming down, and while the fifth plenum in october is going to stall these decisions, the lesser of two evils is to allow a little more debt growth and get the infrastructure programs running. by the end of the year we would imagine that things would be firmer. angie: what does china's slowdown mean fork he'd trading partners -- japan, the u.s., and europe? in markets where we see gradual growth improving -- we actually do believe a coordinated effort will actually

recover,a gradually to but also because economies are recovering. we think they will manage that flow now. it will be bumpy. angie: china also revised its 7.4% to 7.3%.from the significance of that means end of your targets may become more attainable. guest: there's a very good reason why china would have revised. we are waiting for the third international senses. there may be some legitimacy behind it. and that is the word on china. right, we are looking at toshiba shares, on the way up today.

up nearly 5%. really up for a year it would rather forget. it has been struggling with an accounting scandal that has seen corporate apologies and senior heads on the block and today finally reported a $318 million loss from last year after delaying that twice. grace joins us from france. what does this scandal say about to shiva? what does it say about the state of corporate japan, too? i, rish. events a very difficult for to sheba. to sheba.four it is a company representing japan and they released their earnings results for more and we know that the final result was more than $300 million loss for

the last fiscal year, and they actually amended the amount dollars --.3 million $1.3 billion for the past six years results. i would say it's a pretty big accounting scandal. today theyounced will come up with restructuring. aty will look that there their performance, especially flow perspective. rishaad: have investors moved past the accounting scandal? is it too precious for management to -- are there pressures for management to deal with now? grace: yes, they were to finish result, but they missed

it by a week because they had more than 300 auxiliary subsidiaries. they found 10 more cases to investigate. so, that kind of reflects a difficult it is to manage a big toshiba.ike i think there will be more pressure for management of withe, and they will, better management -- they will come up with better management, especially for control. about to sheba looking ahead here? they have a general meeting at the end of the month. do you think we will know more by the end of the month? grace: i think maybe the situation will be more about the current situation, maybe the management going forward or the corporate structure going forward. .t might take more time

obviously the accounting scandal reveals some troubles inside to oshiba.- t so the management will definitely need to look into that and probably some investors are expecting more structural reforms if they come, and that may affect this year's forecast as well. rishaad: grace, thank you. ang there in tokyo. angie: other stories we are watching for you -- an investigation into the recent volatility in the chinese market, chairwoman lui is said is said-- chairwoman li to have been detained to help with an official inquiry. that though.

she said that she had meetings of a short vacation. there is no been that there is not been a suggestion she did anything wrong. man group has declined to comment. christine lagarde said policymakers must a certain that u.s. inflation and jobs are strong enough to justify a rise in interest rates. she spoke as ministers discussed the pressures that such a hike may place on a fragile global recovery. rise of come, it must be for good and not followed by a u-turn in strategy. in a $50 million investment artificial intelligence. they will establish joint centers. the plan is for toyota to develop vehicles that can recognize objects and interact with other road users. coming up -- migrants dreaming

big as they try to carve out and france. here's some of their stories later in the program. hikead: and a fed rate will still hit the markets hard. "asia edge" returns in a couple of minutes. ♪

storiesecond look at making of lines run the world. week,d: man arrested last and police found bomb making materials in his apartment. police are hunting another man who showed that apartment. 20 people were killed in the attacks on the shrine and more than 120 wounded. angie: north and south korea are due to hold talks on reuniting families separated during the war in the 1950's. it follows an agreement by soul

and pyongyang to improve relations through civilian exchanges. thousands were separated during the fighting. the two governments have occasionally permitted brief reunions at the border. rishaad: the international space station is preparing for a leadership handover. the current commands are well return to earth on saturday, kelly in charge. they are studying the effects of long-term weightlessness in preparation for a possible future trip to mars. back toll right, markets now. the turmoil in china is actually not a problem, our next guest says. joining us now, richard harris, the ceo of tort shelter porttments management -- shelter investment management. i guess we're trying to find shelter in many ports. you do not think it is a problem? you have seen

recently, the u.s. and european markets have become decoupled from what is happening. a week or so ago, everyone was taking a collapse in china means a collapse everywhere else. it does not. all have a relatively closed currency. we still have a relatively closed economy. anhink it is not really impact on what we would like to see on overall global growth. count thisyou do not most gracious appetite of 40% of the world commodities is having an impact? if china is slowing down -- if china slows down, resource countries around the world have been hurt, but what about india? india is an importer. or luxurymports goods. bmws. they will still buy ipads. i think there will be an impact on the margins in countries like korea and japan and of course,

commodity countries. key markets are europe and the u.s. and i think they will be relatively unaffected. rishaad: what did mario draghi have to say perhaps expand the balance sheet? richard: he has been doing that, hasn't he, for years and years? if you look at the lowest unemployment rate in a decade -- rishaad: we're still talking almost double digit unemployment. richard: yes, but coming into single digit. who knows where this migration thing is going to end up. migration is one of the most fascinating rings that is happened recently, because one implications -- they say it is good. they say it is bad. typically it is good. i guess currently though it's a drain on resources. there's a lot of concern about what this might mean for everything from security to the adaptation of migration, but how

long will this be filtered through to the, to the system before we see an uptick? richard: an economic terms, it will take a wild. i do not think we will likely see much impact on overall country growth. looking further up, it's an issue, one we will be talking about more and more areas -- more and more. we are talking about migrants from syria. a month ago we were talking about migrants from africa. they have not stopped. the economic impact on your, i'm not sure is going to be negative. europe, i'm not sure, is going to be negative. rishaad: you're confident europe is coming back? richard: when the u.s. was in its early stages of recovery, and of course, going back 2010, 2011, you can just see things are getting better. confidence is getting better areas the manufacturing reports

in germany. all of these things are on an upside bias. i take that to be positive rather than negative. and if draghi turns around and puts more liquidity in the economy, that will help as well. but didn't germany also come out with disappointing data that shows that perhaps things are not what everyone hopes? richard: of course the data before was quite positive. it's a little bit like the jobs numbers on friday. are they good? are they bad? on a one-month view, their terrible. on a three month view, they are great. it's not too shabby. angie: not too shabby. does that mean christine lagarde has a point, or she should just sit down? ishard: i think christine fantastic, but she has to toe the party line. says what shehe thinks. occasionally she cannot say what she thinks. if you look at what she was saying last weekend about china being fine, everybody should not

well i thinkff, china is a problem, it is likely workex as to how it will out, i do not see this as being completely negative to growth. rishaad: getting back to the jobs report, there was something for those who say they are going to go in september. there was something for those who say they will go next year. wonderfult was a report, actually. there was a bit for everyone. angie: [laughter] people sayingee that 2016 is an option. they may well bottle september. i think it's a possibility they may have a rise in october. but there's a lot of positive data out there. if they are just holding back because they are not really sure and many of the governors have doubts, then i think we will see them holding back. i think they have lost their bottle, but i think they go in december. can we get a sense as to

whether you think the discipline at the federal reserve -- but let's save that for the all in about 20 minutes from now. further talks, reuniting war-torn families. angie: we have the details after the short break. you are watching "asia edge." ♪

angie: indonesia's central bank says it will focus on inflation before other movements. the deputy governor says the of sevenenchmarks point 5% was consistent with achieving his inflation target. >> it is consistent to maintaining the inflation within our target this year, and also our target next year, and it will be maintained, you know, fundamentally. reporter: you are effectively saying if you had to make the call now -- though you don't. you don't have to make it until december, the call would be not -- guest: i do not want to speculate. we are data-driven. we will get next month. we will receive the following month. reporter: it is too early. the central bank will

follow always, seeing the data. and we will continue to make improvements and improve policies to make them consistent and ensure the stability of the country will be in fact and also consistent. guest: is the central bank -- reporter: is the central bank independent? guest: yes. reporter: do you find yourself facing pressure from the government? guest: we ordinate closely in this context. but views are being heard, and also eating professionally discussed. with -- being professionally discussed. with respect. reporter: regarding the rate cut, final question -- what do you need to see before you are prepared to cut rates? guest: based on our policy, you

-- thisant to make sure year and next year. this is the basic framework of the policy. this is. and we are seeing now an increase. the end of this year will be within target. next year will be within target. on ae will see month-to-month basis, to make sure the balance always continues that way. looking forward to the afternoon pro-business in tokyo. the morning and did with the loss of one third of 1%. will we see the same? the open is next. ♪

this is a great place to work. not because they have yoga meetings and a juice bar. because they're getting comcast business internet. comcast business offers convenient installation appointments that work around your schedule. and it takes- done. - about an hour. get reliable internet that's up to five times faster than dsl from the phone company. call 800-501-6000 to switch today.

perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. hour: the top stories this -- smaller companies led chinese to get days. after an initial enthusiasm drained away. mark mobius expects the government to wind back intervention, saying the strategy is clearly not working. imf managing director shot a warning to the fed. christine lagarde says that housing makers "must be certain"

that there are conditions to justify and a rise in interest rates. a whenever a rise comes, it must be for good and not followed by u-turn in strategy. up after a year .any would rather forget there have been accounting irregularities, corporate firings, and apologies. it included a loss of three to $20 million -- $320 million. they failed to offer a forecast for this current year. let's get the latest from the markets. shery ahn is standing by. shery: thanks, angie. we are seeing volatility, which is not surprising, given that chinese markets have come back

online. in positiveck territory, rising 9/10 of a percent. they were at the weakest level from february, but they are managing to gain again in the afternoon. in china, look at the shanghai composite, rising, being led by small caps, but it has lost a lot of momentum since the early surge in trading. ng, again after falling to a two-year low on friday. remember -- they have formed a bearish indicator, the death cross, which indicates we may see a further downside. they are being led by energy stocks. in a straley a, we are seeing in australia. energy stocks leading the decline there. in australia, do keep an eye on

financials, because the four biggest names are massey capital, meeting stricter regulations. they will be modifying operations by 20% to cut costs. we are seeing interesting moves in currencies. for the korean won, it fell to the weakest level in almost four almost below point 1200. there is growing concern the country's export outlook is worsening. of course, we have the u.s. moving to raise rates very soon. shipments in august fell the most since 2009. a different story for the aussie dollar though. it has been gaining. moving almost in line with china's tumbling shanghai composite.

although last week it fell, today it has regained some momentum after reopening trade, so we are seeing it again for tenths of a percent, but still under's seven d u.s. cents. back to you. -- still under 70 u.s. cents. rishaad: now that campaign for coal. australia hope to talk the benefits of coal as an energy source. it has thehashtag #c oalisamazing. what on earth was the minerals council thinking here, paul? tol: i think they are joined point out that they are not evil, just misunderstood. has been an, coal important part of australia pro economy. it is the second most exported, 71% of australia

pro energy. predictably it did meet with ridicule on social media, one saying that doctors once promoted smoking cigarettes. theher that it is glad that industry is realizing the 18th-century potential of the energy source. another said that it's amazing at blogging moms, landscapes, and. another example --coal raises temperatures, destroys lungs. #bestprfailever. rishaad: a grubby image for coal . is its prices collapsing, too. like at does rather look cry for help. the forecast is below $50 per time and there are projects in australia that have had a lot of trouble getting off the ground as well. is a piece ofmine

is being eyedhat for development. there's a lot of opposition to that. in queensland,on there is also some questions about the impact on water. and the national australia bank mind,out funding that never asked for funding. obviously seeing the potential, they rejected before they were even asked. not consider the impact on a skank and an ornamental snake. kink and an ornamental snake. rishaad: paul allen their joining us from sydney. reigniteore talks to -- more talks to reunite

families separated by the war of the 1960's. what does this mean in terms of inter-korean relations? it obviously means that leaders of these two countries want the tensions not to be revived for some time, and they want to pivot from tension to dialogue, because they have seen the crisis that basically happened on the korean peninsula last month. it was not really good for the markets, for kim jong-un maintaining his grip on power. to kim jong-un, he needs concentrate on the month's 70th anniversary of the founding of the workers party. he wants to do a big military parade and he wants to make that a highlight of his leadership, which is about four years young. south korean president, the economy is growing at the

slowest pace in two years and she needs to concentrate on reviving the economy and its growth. angie: certainly there are political benefits to this, but how would family reunions then help reduce tension and the peninsula? historyyou look at the of dialogue and policy between theyeeth of countries, have always started official talks. know, people of north korea and south korea are fans for contacting one another across the border. but when the families are reunited, there's a lot of crying, a lot of emotions gets a pushnd it for the governments to start

talks again officially. therovides an incentive for people to ask the governments to start talking again, and that what the government is, talking. it's a series of steps that would show to the world what they can do to control the tensions. angie: why now? we have only seen military standoff between the two nations. sam: kim jong-un as having an issue with the stability of his grip on power. he's only 32, 33 years old. at he is feeling insecure about the way things stand for him. wants to help- he

grip on power, but as of now the propaganda broadcasts south korea began last month, those propaganda broadcasts really blair a lot of critical information across the re a lot of critical information across the dmz. he needs tensions to subside so he can continue with the propaganda that helps bolster his grip on power. park, the economy is not doing as well as she wanted to do. she wants those profits to begin with north korea. sam kim their life for us in seoul. thanks for that. refugees to flow of

the border shows no sign of letting up. germany gave refuge to thousands of refugees stranded for days in hungary. more needs to be done. --f but i think we should guest: [indiscernible] we should have the same application, the same rules. at the moment, you have widely different percentages coming through the adjudication process in one country as opposed to another, and some countries, it's virtually impossible to prove you were a refugee. i mean, this is another way of blocking refugees. rishaad: the former british foreign secretary david miliband says the british decision to accept more refugees is a good start, but it needs to be tackled at its source. todavid cameron was saying

hundred 17 was an -- the fact that he has moved is a good thing. but the problem has to be attacked at its source. there's the lakh of diplomatic progress, and it has to be tackled in europe where there are hundreds of refugees already. to come to migrants europe see britain as their ultimate goal, but some prefer to avoid the danger of crossing the channel and in their journey instead in france. met with teacup of them. here are their stories. -- i am sudanese. i was a student in sudan. [indiscernible]

studies. complete my -- to be a teacher in college. i want to be a good part of french society. >> my name is abdul. i am 18 years old. september 2014. i live here every night. bad.nk it is really as you see, the room, it is full i ink thereand are many insects and i think there is no electricity. it is empty. it is also empty. i think it is really bad.

we really need help, just like you see. i am confused. ande i shall go to calais try to make it to england. shall go to england -- to germany. i don't know. i prefer to stay in france because i want to study medicine. in the medicine here in france is stronger and better than in other countries. up -- confusing messages from the fed. our next guest says the markets have a single clear decision, not a chorus of opinions. that is ahead on "asia edge." ♪

rishaad: checking some of these

stories making headlines. rescue workers have found the bodies of more victims from last week's migrant boat seeking off the coast of malaysia. 20 people survive to the accident and are suspected of being undocumented migrants from indonesia. the boat is thought to have been carrying about 70 people when it sank on thursday. panelmilitary backed rejected a new constitution. it was criticized by all sides. the opposition democrats said it would deepen thailand's divide and spur violence. the decision means a new constitution must be written. elections pushed back now until at least 2017. the former greek prime minister has told reporters the upcoming dinner election is a fight between his honorable government and the corruption and cronyism of previous administrations.

syriza is that connect with the opposition party. sippers described the deal as being open-ended. ande: thank you, joining me , juliet and richard ports asset management. ok, stanley fischer at jackson hole was saying, or suggesting we could see a rate hike and we heard from others. is this good for us? is this good for you? richard: we really do not know where we are, do we? wheres why no one knows we are going. no one knows is he a dove? then we had a flurry of other fed governors, saying out --

coming out saying, things are not quite done yet. you would think they would have some element of cabinet responsibility. rishaad: responsibility, yes. inhard: fight it out private, but don't fight in public or don't go on television. angie: but isn't this about transparency? england has bank of transparency. why can't we put interest rates up in november? maybe that is the -- what the economy needs? angie: not loving janet yellen for leadership. i could criticize the sexism, which is completely untrue. i quite wanted to believe in her area one has to wonder, while top,s in control the whether she is in control of the governors and what they are thinking.

>> in their defense, they have throughthrough -- pore a ton of economic data. how does any central bank or make sense of it? richard: it's what you do. it's one of the problems of leadership. if you have too much information, you can make a decision areas someone has to stand up and be accountable. decision by committee. [laughter] juliet: there's a lot for investors to go through. what you liking? seemsd: at the moment, it europe has the most upsides. green shoots of growth. the markets have been quite hard hit. what i think maybe that is where it could be. it has gone down today, hasn't it? quite substantially. richard: well, of course, the

ftse is moving on a different train to europe and we may see interest rates go up higher in europe earlier than the u.s.. angie: where is the true value? in china? think so. don't try 100, i think that is where it will bottom out, but too much leverage, too much debt in that market to see a recovery. we are talking about europe, i would you go back for a moment. this migrant crisis we see on television, does this have any significant impact on economic fundamentals for the country's absorbing these families? honestly welfare bills are going to up. social issues down the line are interesting, but i'm not so sure it will be overwhelmingly negative. if you look at migrants, particularly america, being a positive thing. i think the migrant issue is mind blowing. moving throughe

europe. and we have not forgotten the mass of people moving from africa press the mediterranean. these are massive moves national borders do not seem to be able to affect. lot, richardks a harris, there from port shelter investment. up, under armour is an acquisition target for china. rishaad: this is "asia edge." we will return in a couple of minutes. ♪

rishaad: the sportswear industry has many big players in under armour is determined to prove it deserves a seat of the table. its revenues have more than doubled. its biggest growth areas international. under armour has teamed up with big names including andy murray stephenan curry --

curry. they say it's only a matter of time before china all rooms 18. our correspondent was there and was joined by the spokesman. here for 15ve been years, making things, opening offices, etc. today we have a little more over 75 stores in china. roughly a storage day will be opening. -- a store a day will be opening. but going about the way we did it in the past is not the right thing. e-commerce plays a different role. we will see a different tack. this market is incredibly hungry for the under armour brand and bringing stephen curry here is a pretty big deal. reporter: how did they get it wrong, the competitors that you will do better? kevin: they do a lot of things wrong.

but we are more focused on what we do right. you hope that you see this as the base of our growth, the acceleration of our business. 96% growth last year at international. our goal is to be a global brand with just about 90% of our business coming from north america today, we've got a lot of room for the growth areas on a relatively small bases, international growth, but china will lead the way, second to japan today as our largest market. at but china is not far behind it all and growing fast. aboutn: are you concerned the slowing economy in this country? a discretionary spending is down. noin: i coined a phrase -- loser talk. whether the market is shrugging or expanding has no impact. if it is shrink, we see ourselves building new markets and we have no problem taking share from our competitors.

i think we will continue to see us do that. stephen: is it an impact at all on depreciating currencies in emerging markets? is the storyk that of the first half of 2015. fx.we do not lead with last country we grew 29%. if you have a three handle on it, you would be looking at our growth in the second quarter of 2015. but again, no loser talk. edephen: you kind of a luck out with mr. kerry, silent -- mr. curry, signing him away from nike a couple years ago. you would not say it is luck. kevin: he is one of the most people in the world. jordan spieth winning two majors. stephen curry. you know, look gets us and we are very -- luck gets us and we

are very aware of it. when you get it, you better double down a bit heavy. that is it from us here in asia. rishaad:

announcer: the following is a paid advertisement for time life's video collection. carol burnett: well, hello, i'm carol burnett. and i am here at cbs in los angeles, at studio 33. come on in. ♪ announcer: from television city in hollywood, it's "the carol burnett show." carol burnett: this is the stage where it all began. we shot all 11 seasons of our