rashad: it's tuesday, the eighth of september, and this is "trending's nest." business."g going to be live in tokyo, israel, and singapore this hour. this is what we are watching. gathering gloom. expecting a range of data from china this week, and none of it -- expected to be

encouraging. the hits keep coming for hd, now htc, now rejected by stock exchange. china and hong kong getting underway at the bottom of the hour. kuala lumpur and singapore just online. happeningook at what with your money so far today. shares are rising marginally this morning after's heaven weeks of declines. japanese stocks were gaining earlier in the day. the economy shrank less than thought. but that is falling and changed at the moment. betweeneen swinging

loss and gains all morning. new zealand stocks rising .7%. we had second quarter manufacturing activity falling by less than expected. strongly. up we had business -- have business confidence figures out later today. the oil sector is rallying today, up more than 2.6%. the second largest producer made an $8 billion takeover bid. the largest export destination is china, of course, and we are waiting for the opening there in about half an hour. we have seen volatility and seen the market plunge in the last few minutes of trading, but at seeing gains, up

slightly overnight. i will give you the latest opening members when china starts trading in about half an hour. again's seeing thanks to the economy shrinking japanhan thought -- seeing a gain thanks to the economy shanking less than thought. had been expecting a 1.8% contraction in three months. thane doing a lot better what we saw in the second quarter. ,ompanies reduced investment which added to a drag on the overall economy. ank of japan governor corrode says this will pat -- kuroda

says this will pass. we saw private consumption decline from the previous quarter. that was compared with a preliminary .8% drop. capital investment was down against the initial estimate of a .1% decline according to d figures, so basically, we're back to where we were mentioned so i'll they took power. he is japan's -- where we were power.inzo abe took he is japan's longest serving prime minister in years. a newspaper poll said most --anese have a high opinion only a minority have a high opinion of his policies. 45% said they did not.

just reiterating, japan's economy shrinking less than first estimated, basically back to where we were when shinzo abe took power. were whene where we he came in, and we are basically back to that. rishaad: we will have more details on that story throughout the course of the show. we will be speaking to the ceo of wisdom tree in a few minutes. china out with august trade numbers today. looking at estimates, you might expect to see a hefty surplus, but her haps the wrong reasons. -- perhaps for the wrong reasons. david: midmonth was when they "

devalued" the currency. as far as the trade surplus is concerned, about $40 billion -- $48 billion is the median estimate. in china, the situation currently, the trade surplus has remained fairly hefty. equation,f the imports, have declined every single month going back to november of last year. for august, we are expect a drop of eight -- expecting a drop of 8%. we are likelyy, to see softer numbers there. take a look at growth or decline numbers. i think what you are's yang -- are seeing is fairly consistent with the big picture across age exporters.ss asian

what you alluded to earlier is the september figure. that will allow us to see how they yuan pasta valuation has really affected china's buying power. devaluationuan's has really affected china's buying power. looking at the monthly change in fx reserves, $94 billion. theffect, that means liquidity situation or monetary policy is actually tightening up , because they are buying upper be to -- buying up rmb in -- buying up currency to alleviate the situation. difference between the surplus and all of these capital outflows is what they are willing to clean up from the system. are going towe

have a look at some of the other stories we are watching for you today. sumitomo mitsui min bid to purchase london insurance company amlin. mitsui sumitomo shares are tokyoly higher in earlier trading. toshiba says it is planning a bold restructuring of its chipmaking and lifestyle division. delayed results yesterday showed lows and a restatement of six years of earnings dear to accounting irregularities. the president says he will outline the restructuring over

waysoming year and finding to deal with the scandal. htc has been booted from taiwan's benchmark stock index. environment has hurt earnings. it will be replaced by a textile manufacturer. the thai one index is made up of the top 50 large-cap stocks in taiwan. htc shares are higher by about 5%. quite a move for that stock today. rishaad: another story we are following, chewing up u.s. suppliers. still ahead, meeting a company that aims to save us lots of time with our day to day devices.

and rumors are gathering gloom. effect?t is the abe ♪

rishaad: back to square one, apparently, in japan. things are where they were when abe took all this. joining us is the ceo of wisdom tree in japan. so, we have a contraction. not a status hasn't thought. what -- not as bad as had been thought. what is your reading? the day, you've got to remember that gdp is going to become less and less meaningful for japan, and the

reason is simple. today, one in four people lives on a pension. they don't create value. rather than the gdp of session, what is important is called a prophet. gdpin the quarter, while was negative, corporate profits surged. or for rations are making lots of money. corporations are making lots of money. come to i'm going to that in a second. how useful is nominal gdp. that was white stellar in the first order -- quite stellar in the first quarter. the key issue. , andal gdp is sales companies feed off topline growth. what you are seeing in japan for

about the first time in 30 years is employment growth, wage growth, income growth. business is starting to improve. sales growth is picking up. it, isn'that is just it? as employment rises, we get to goes back to my economics.dying how low does employment have to go before it triggers wage inflation? >> this is the conundrum that of course, japan is not to the only country facing. in the united states, janet yellen has the same problem. unemployment falling, but inflation rates also falling. that's a big conundrum that academic economists, and to some

extent, bankers need to worry about. investors, what matters is nominal topline growth, nominal sales growth, and the possibility that you can eke out of that. what happens with solid topline growth in corporations? when does that stop eating into share prices once again? >> though worry that you have right now is that export cometability is going to under downward pressure if indeed the chinese slowdown and global economic slowdown becomes prolonged. of the factaware that export growth from japan -- beenery lackluster very lackluster and at times even been negative. that theey point is

domestic juices for the first time in one generation, the domestic metabolism is during. stirring. -- is housing is strong. that is a leading indicator. employment and wage data is pointed in the right direction. and lastly, you are seeing an acceleration in bank credit growth. rishaad: you say that, and you have been very up the heat, as you always are. why is everyone else so -- been very upbeat, as you always are. why is everyone else know gloomy? -- so gloomy? of people get paid to worry. there are real reasons for concern. in the relative scheme of things, the bank of japan has fallen behind the curve. is clear they will be

proactive, that they will not has a tear to do more in the ecb ecbt in japan, we -- the has been very proactive, and made it clear they will not hesitate to do more. japan has been more complacent. that is not what global markets want. global markets want active, aggressive, proactive policy making, and that is what japan has been lacking the last couple of months. of the: further weakness yen. do they expand the balance sheet? what would you do? is very clear that there is no limit to the tools the central bank has. the question is, is there a sense of urgency? this is where it's going to get interesting. i do not think it is going to be governor kuroda or the bank of japan on its own. it is going to be a whole set of

coordinated policy, with prime e having to make it clear that the focus is on the economy. that is what we need to see by the end of this month. rishaad: jesper, great talking to you. it is time now to take a look at the stories making headlines around the world. let's start things off in europe. agreed toan union has help resettle around 100 20,000 refugees. the proposal will be announced on wednesday and the aim is to spread them evenly across participating nations. refugees arrived in germany this weekend. berlin expects to see at least 800,000 applications for asylum this year.

a suspect in say last month's bombing has confessed to possessing explosives. he was paraded in front of the camera's and asked if he was bomb makingssessing materials. his translator said he said guilty. he has been formally charged. it is not clear if the apparent confession would carry any legal weight. now to japan. the arc attack -- architect has architect whose bid for the 2020 stadium caused controversy has submitted another bit. and second a -- another company has offered what they say is a more cost-effective bid. rishaad: after the break, the

struggle to survive in these older industry. industry.ar a special report when we continue. ♪

rishaad: let's have a look at some of the stories making headlines. glencore surging after announced in a debt reduction -- after

announcing a debt reduction plan. it will be selling shares and assets to cut about one third of its $30 billion debt. shares had dropped nearly 60%. a takeover bid for oil surge. woodside is offering one share for every four, which amounts to about 18% on the posing price. board of approval is reviewing the proposal. is set to leave the london metal exchange. only one of a handful of companies still involved in a practice that dates back to 1887. they say trading will not be affected by the move.

surviving in the solar industry has proven to be taught. china -- tough. china and germany's companies held the top spot and are both on their way to bankruptcy. >> people may be interested why company isy this different from others. there are three main aspects. the first is manufacturing capacity. capacity is quite normal in the industry. the company has expanded capacity across the whole valley, which are wired heavy capital invest -- required heavy capital investment and didn't when components end raw material were oversupplied.

the thing is about this company, we are seeing these others fall by the wayside. i guess it's not quite the rivalry that they had. will others survive? >> the market is increasing steadily. possibly 30% more than last year. still, the oversupply is within and that will largely restrict the selling price. likely smaller manufacturers cannot catch up to the speed of production of the larger ones. it'sad: but that is all about, isn't it, controlling costs? can find wider space.

there are three large ones. all three are switching to a downstream business. shape 90% of their 19%-20% of their models to their own downstream business. coming up next, china announcing more steps to help the market. will they be enough? we will week with the shanghai market ambassador. at -- we will speak with the shanghai market ambassador. and we will have opening numbers when we continue. ♪

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i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. rishaad: let's take a look at some of the top stories. japan slowly gained in the second quarter. gdp falling 1.2%. the bank of japan said to be losing confidence. china's foreign exchange reserves fell to a record low. 94rency stocks dropped by

billion dollars at the end of august. beijing has tried to prop up the yuan. it was once the darling of the mobile phone world, htc has been benchmark. taiwan's the stock is down 66%. it will be replaced by textiles. conditionsbusiness have risen to 11. we saw business confidence falling last month. we have business confidence on one measure, business conditions rising. business confidence falling. we are seeing further declines.

we get reaction to all of that in a moment or two. the nikkei is down. winn is back where it wants cameere it was when abe in. a bloomberg economist joins us from tokyo. great to see you. what is going on? perspectiveome about where the global economy finds itself. it is great that japan's economy sunk less than we thought, but it does speak to where we are. good news fored the global economy. we have to remember that this information is ancient history because it came before stock markets crashed. what is interesting going forward is how the negative will

affect consumer spending, sentiment, and business spending. the events of the last 30 days render the second quarter information not all of that useful. rishaad: we were talking about 15 minutes ago and our guest was fairly upbeat. we have conditions in place for wages to rise and that should engender inflation. it can help feed into the boj target for inflation. willie: conditions are set. the question is whether executives will pull the plug. investors are looking at the prime minister and saying, do your part. thatny ways, he is hoping executives do his job for him. we are waiting for these reforms that make japan more competitive

and more vibrant. once we see that, we will raise wages. rishaad: what is wrong? why isn't he getting on with it? been more or less guaranteed to be premised or because no one is running against him. he has the political mandate surely. willie: his political mandate from the very beginning was to end inflation. he has pivoted to national security. big combo smuts, secrecy bills, -- big accomplishments secrecy .ills, a lot less focus the problem is one of distraction and a bit of a bait and switch. almost three years then, we have to admit that is the case. --l the premised or focus on

will the prime minister focus on the economy? rishaad: great talking to you, as ever. let's take a quick look at the china market open. shanghai on the way down. hang seng heading in the opposite direction. chinal get data from later on. it could affect what is going on as far as the equity session. disappointing trade figures. economists we surveyed see another fall in exports and imports. what are we expecting? >> it is hard to see the catalyst that will turn around exports anytime soon. they are still contracting. -- those are internal

conditions in china. look at japanese gdp this morning. they are stuck in the doldrums. the eurozone is not buying as many chinese goods as they used to. rishaad: the yuan recent devaluation, but he does not gone down that much. enda: this is not a game changer. if they want to get an export dividend, they will have to let the currency we can a lot further. further. a lot rishaad: how long can they keep on doing that? enda: they are burning a lot of cash.

it does not do much for what it already quantified sentiment on china. they will have to make a decision on whether they want to keep supporting the yuan whether they want to let it go a bit lower. that is where it would help the exporters. we have to see how it plays out. rishaad: the car booking war is heating up in china. close to raising $3 billion in the latest financing round. sinceors who got on board .une the philippines says it will rollout nationwide free wi-fi. the government will spend $32 million annually.

the free service will be capped at 256 kilobits per second. engine biggest search planning to boost investment in india and indonesia. in the past year, baidu has spent a billion dollars on investments. let's talk about currency. indonesia.about raising concerns of a debt crisis, the currency has dropped to its lowest level since 1998. let's bring in haslinda amin.

it will take a lot more for indonesia to pay its debts. haslinda: when you have a huge amount of foreign debt, the last thing you need is a weak currency. if you take a look at how it has performed year to date, down 13%. that is not helping indonesia at the moment because it has $304 billion in foreign debt. it will take a lot more rupiah to finance that debt. speculation that indonesia could find itself in a debt crisis. will it or not? is this a time bomb or not? >> look, it is very complicated. they have 105 billion in reserves. about three times the reserves than foreign debt.

the corporations have $170 billion. that is pretty steep right now. >> it is not like 1998. >> if you look at -- what happens is since 1999, external corporate debt has not been higher than government debt. it just turned higher in 2013. it has been growing since. that is a little bit of a source of concern. linda: the risk for the government, for indonesia as a country. christopher: the government is safe because it has the reserves. the currency is floating. that is a key difference from 1998.

the trouble is a lot of researchers say once you have a problem in the corporate sector, that problem trickles down to the economy and that could be a problem for the government itself. i would not completely dismiss this becoming a bigger crisis. >> s&p down they graded -- downgraded companies, no upgrades. christopher: 24%, if i am not mistaken. we will see a lot more downgrades and a lot of restructuring. there are a few companies on the verge of restructuring. we named a couple in the story. we would benefit from lower economy prices. -- there are a few companies on the verge of breaking down and a lot that

have already broken. one of the bankers i talked to said there is an and in need in tsunami -- indonesian coming up. it is a double where me. -- it is a double whammy. you have commodity prices down, china's economy is not going any faster. a revised their economic growth. the u.s. is growing faster, but not fast enough. the currencies are depreciating. it is a little bit of a perfect storm. comparisonslot of being made between the rupiah and the ringgit.

christopher: this is not my specialty. i think in the long run, if i had to choose, i would go to indonesia because in malaysia, things seem to change a little bit slower. indonesia, how things change, it is a little bit faster. of theow, in terms current account deficit and fiscal balance sheet, malaysia is better. [laughter] >> we have to wait and see. the market is divided. news fromreaking moody's, lowering its growth forecast for asia. subdued demand. we also had other breaking news,

business conditions rising in australia, but business confidence falling. the aussie dollar moving to the upside. to reset a 120,000 refugees as the u.n. slams the current response as chaotic. it is in our report after this. ♪

rishaad: germany will boost its refugee budget to almost $7 billion next year. the leaders have struggled with the largest migrant crisis since world war ii. the u.n. says the response is chaotic and is demanding better. paul allen has the latest. paul: the tide of humanity overwhelms new the serbian

border. they vastly outnumber the authorities and they are desperate to continue their journey into europe. >> i am going to germany. example.s is an germany is leading the european response, spending $6.6 billion on expected 800,000 new arrivals this year. angela merkel warns the breathtaking flow of migrants will change the country and is urging other eu nations to do more. after meeting with the french president, slammed the response to the crisis. >> what we are witnessing today is a chaotic situation. it is not a humane situation and does not serve the interest of the european union.

i hope on september 14, fundamental decisions are made. it is not just a question of making minimal adjustments. paul: the u.n. was a well organized reception for refugees. this is a key issue in the haphazard response so far. verifympossible to whether all of these people are fleeing the war in syria. increased foreign investment along the historic silk road trading route. it grew by almost 30% to more than $8.5 billion. russian emergency services are

fighting wildfires around the world's deepest freshwater lake. there is no threat to holmes or settlements in siberia. the situation is coming under control. the fires cover more than a thousand square miles. inspecting fegun -- has begunifa inspecting stadiums in russia. they also saw the capitals old stadium that is being renovated and where the final is expected to be played. phoned: up next, has your ever run out of battery when you needed it the most? we speak to a company that says they can read charts any smart phone two 100% in just one minute. find out when "trending business" returns. ♪

rishaad: running out of battery on your phone is a common problem. the israeli startup says it can be fixed easily. joining us the a skype -- via skype is the cofounder. thank you for joining us. how does it work? >> we redesigned the structure of the battery and the charger. enablesa system that very fast charging. it requires you to have a dedicated charger and to replace the battery. we are working with the smartphone makers to make the system available commercially. rishaad: you have to use your battery? you cannot just fast charge any

battery? >> a normal battery, it would die. what we did is we redesigned all of the components of the battery. all of these components are optimized for fast charging. rishaad: tell us something. give us an example of how fast you are talking about. on anare also working electric vehicle battery that leverages on the same technology. this is similar to what tesla has been doing. this can charge the electric vehicle very fast.

five minute charging of an electric vehicle. rishaad: that five minute chart could mean you could have the car run up to 300 miles, correct? >> eventually. we are now demonstrating 150 miles in five minutes. in a few years, we will be able to charge 300 miles. rishaad: so you are talking to elon musk? >> indirectly, yes, we are. rishaad: that is one of the biggest problems, people having range anxiety. >> exactly. we are trying to give the driver and experience exactly like fueling. on the corner of the street, you will be able to car -- charger car fast and go. almost: it does sound

too good to be true. there has to be a trade-off. it is the way the batteries are being used. the structure of the battery is damaged when you are charging fast. we have managed to develop an organic compound that allows the structure to be more robust. trade-off that the batteries -- it disseminates power quicker as well. >> everything is exactly the same. it does cost a little bit more. we are working to match the price to be traditional lithium battery. that, everything will be exactly the same. rishaad: who are you partnered

with? investor -- we cannot disclose all of the others yet. rishaad: thank you so much for from israel. he is that chief executive of storedot. let's take a look at some of the markets. up -- the hang seng up .6%. shanghai composite down .2%. nikkei up a little bit. gdp in japan contracted, but not as bad as has been thought. -- coming up,eir

analyze this. we meet a company tracking more than 6 million apps. ♪

rishaad: it is tuesday, september 8. this is "trending business ." here is a look at what we are watching. 10% of workers said to be threatened. the latest trade data from china due at any moment and it is not expected to be encouraging. experts falling again nearing an unwanted record.

follow me on twitter. don't forget to include that #. we have lots of data, japan, gdp contracting. we are looking forward to trade data out of china. business confidence and business conditions numbers out of australia. data: all of that adding to the volatility today. we are expecting exports to fall again and analysts are saying the collapse in exports compounds the pressure on china's economy and threatens to bring more yuan devaluation to restore competitiveness. chinese stocks extending yesterday's losses, down half a

percent. we are hearing chinese authorities are considering a circuit breaker for stock options and futures. they will halt trading for 30 minutes when the index rises or falls 5%. kospie seeing the cos feeling the downward pressure. we have the asx 200 bucking the trend, up 1%. rallying.ctor is the oil and gas sector up almost 3%. the nikkei has been very volatile. directions, ant

.2% move. falling today, down .6%. after the report came out the economy shrank 1.2% in the second quarter. rishaad: it is about that contraction taking place. less than initially estimated. what do we have to look at in particular? >> japan second quarter data shrinking at 1.2%. recorded 1.6% drop last month. 1.8%mist expecting a contraction in the months leading up to gin. -- leading up to gin. june.ding up to

we have just been hearing from abe this morning, halfway through a speech saying that ab e-nomics halfway through its course. the governor of the drink of -- the governor of the bank of japan, japan is facing more growing risks from a slow down in china. we saw private consumption declined .7% in april to june. compared with 0.8 drop in capital investment. basically, we are back to where we were when albe took power. he is speaking at the moment saying they are only halfway through abenomics. he is on track to becoming the

longest-serving prime minister in japan. we also have a separate report showing the current account surplus was ¥1.8 trillion. just to reiterate, japan's economy shrinking less than estimated, 1.2%. we did see japanese stocks initially rise, but they are now in the red. the yen is pretty unchanged. rishaad: we will take look at some of the other stories we are watching for you today. saysuth korean newspaper samsung electronics is preparing to take the ax to workers at its headquarters. samsung will cut 10% of the workforce, including staffers in human resources, public finance., and samsung declined to comment.

it is under pressure after a lukewarm reception for the new high-end galaxy phone. and continuing sales attacks from apple. five straight months of monthly decline. the market value has fallen. htc has been booted from taiwan's benchmark stock index. a challenging sales environment has hurt earnings. the stock is down 66% this year. it will be replaced by a local textiles manufacturer. accounting for more than 70% of the local total capitalization. htc shares trading higher, up about 10%. in japan, toshiba says it is planning a bold restructuring of its chipmaking and lifestyle divisions. delayed 2014 results showed a

reinstatement of six years of earnings due to accounting irregularities. the president says he will outline the restructuring over the coming years and repeated his apologies. toshiba shares looked like this in the tokyo session. they are down 1%. rishaad: another story, an island where bitcoins are becoming accepted currency. on bloomberg.com. thousands of apps are created every day. what does it take to create a world leader? growing suspicion that china really not control the market. "trending business" returns in a minute. ♪

a suspect in last month bangkok bombing has confessed to possessing explosives. he was asked whether he was guilty of having bomb making materials. his translator said guilty. he was arrested last week near the thai-cambodia border. the architect whose controversial tokyo 2020 olympic stadium has been scrapped is to make another bid for the project. the cost of the original design balint to $2 million -- balint to $2 million. he is teaming up with japanese design and engineering company to offer what they say is a more cost-effective plan. the european union is finalizing refugees.esettle

the proposal will be announced on wednesday and will aim to spread them evenly across the 28 nations from finland to spain. germany says 4000 people arrived in munich on monday. berlin says it expects to receive at least 800,000 applications for asylum. -- yuan high commission rishaad: we will take a look at the response from european countries. the high commissioner is demanding better response. paul allen has the details. humanity, they vastly outnumber the authorities and they are desperate to

continue their journey into europe. some are turned back. their long journey into europe continues. >> i'm going to germany. >> this is an example of one of those fortunate enough to make it to germany. germany is leading the european response. merkel warnsgela the breathtaking flow of migrants will change the country and is urging other eu nations to do more. the high commissioner slammed the response to the crisis. >> what we are witnessing today is a chaotic situation. it is not a humane situation and does not serve the interest of the european union. i hope on september 14, fundamental decisions are made.

it is not just a question of making little adjustments to the policies currently in place. >> the united nations wants a well-organized reception for the refugees. this is a key issue in the haphazard response so far. it is impossible to verify whether all of these people are fleeing the war in syria. coming up, taking a look at data out of china and asking right now what next for the economy? this is "trending business." ♪

rishaad: this is "trending business." confirming its interest in buying the london-based insurer. the deal could be worth more than $4 billion and will be announced later today. at least $80 billion worth of deals have been signed this year. more than two times the amount of last year. woodside has made a takeover bid. it is offering one of its shares for every four of oil search

once. the board is reviewing the proposal. is running ait bold restructure of its chipmaking and lifestyle divisions. six years worth of earnings down to accounting irregularities. it has set aside more than $70 million to cover possible fines. the president saying he outlined this restructuring and also repeated apologies to investors for the accounting schedule -- scandal. >> the most important thing is that internal control has failed even with senior management involved. we have been discussing how to avoid such a thing happening again and we plan to create a new management system. i feel strongly this must not simply be a hollow shell.

it must in body the soul of the company. rishaad: let's take a look at the indonesian currency. , concerns ofouted a debt crisis. let's bring in our southeast asian correspondent. it will take far more for indonesia to service its debt. right, a huge is challenge. a big headache for indonesia. when you have a lot of foreign debt, the last thing you need is a weak currency. government,t by the but also by banks, companies. owe amount they oh is -- is three times the reserves.

i want to show you how the rupiah has been tumbling. year to date, down 13%. not the worst in asia. currently behind the ringgit. it means higher servicing costs. it could mean lower dividends, lower bottom line. that kind of scenario normally prompts investors to sell stocks. shrinkinghood of that --n to the bond market indonesia could end up with a debt crisis. you have to bear in mind, it is not like 1998. no asset bubble. a precursor to a crisis. it may be quite premature to be talking about a crisis at this point. so much more caution now than before.

rishaad: the ringgit is even worse off. haslinda: it is. forget the ringgit. it is the rupiah you want to worry about. that is what s&p is saying. a couple of things were highlighted, in indonesia, whether it is to inflows or outflows of capital, we do not see too much of that happening in malaysia. it has a deeper and bigger market. indonesian stocks and local currency foreign sovereign bonds, they have fallen faster than malaysia's. take a look at how fast indonesia's reserves are falling as well, 9% in the six months to august. indonesia has been propping up its currency in a big way.

they spend a lot of money trying to stabilize the country. if you have to make a bet, there is a higher risk to the rupiah slumping even more compared to the ringgit. rishaad: thank you very much. expecting august data from china any moment. we are looking at exports. it would be the second straight months. the chief china economist at standard chartered is with me now. the number is not out yet. expecting a surplus of 40 billion. that sounds healthy, but it is not. it is on the back of a retreating tide. >> it continues to weigh on china's foreign trade. exports, pmi, it continues to drop.

it has been matched by even more depreciation. moderate expect a valuation of the currency to help. as you mentioned, the trade surplus seems very sizable. not quite as large as the first seven months of last year. this has been quoted as the most fundamental factor. let's look at what this means. it is about how much money they are spending right now. supporting the yuan, not stopping it falling too far against the dollar. does that bother you? >> this is a necessary price to pay. stabilize the

expectation of the exchange rate and to break the vicious circle of depreciation, out flow, and more depreciation. the fundamental does not support large devaluation of the currency. without the central banks intervention, there is a risk of overshoot. to bash theues surplus -- the surplus could be higher than last year. recently, all of the pessimism has been caused by capital outflow. in my view, capital outflow is different. this is mainly caused by the unwinding by the chinese corporations of their short u.s. dollar positions. putting i know they are

controls there, but are they a bad thing overall? rates,erms of exchange fundamental factor is still the current account. i see it as a swing factor. china experienced a large capital inflow before 2014. outflow, if we look at what happened, chinese corporations accumulate and it affects liabilities. the positive side is reducing the fx risks by making the positions more balanced. at the, if we look international investment position, in march this year, china's corporations turned to positive.

let's talk about the reputation of the regulator here as well. how much damage has that done to the projection of competence by the po's -- pboc? >> some misstep by the government in dealing with the stock market, which caused some collateral damage in terms of public confidence in the government's ability to manage the economy in general. is trying tot rebuild the confidence. we heard about the central bank governors statement over the weekend. the interest rate cut 10 days ago, i see it as a concrete step

to increase, to in-store public confidence -- to restore public confidence. rishaad: very quickly, do we expect more interest rate cuts? does that send another signal that things are worse than first thought? >> i would expect more. we expect another 100 basis point cut. cuts in the global environment of low interest rate and negative interest rate, there is still room for further cuts. we expect another 25 basis points of a benchmark cut. --se are necessary matters it could hurt the confidence

further. rishaad: thank you very much. a quick check on the trade. we had toward the tokyo lunchtime break. shanghai and how long pretty much -- and hong kong pretty much where they were. this is the picture of singapore and taiwan. next, getting appy. we talk about tracking millions of apps. ♪

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perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. ♪ rishaad: looking at the top stories, the latest data shows japan slowed but not as much as thought. gdp falling less than analysts had been calculating. the bank of japan is said to be losing confidence in the outlook of growth. the chinese foreign reserve exchanges falling by a record last month. currency starts dropping by $94 billion. beijing has been trying to prop up.

a south korean newspaper says that samsung is preparing to wield the ax at headquarters. 10% of the workforce is under threat, including staff in public relations and finance. samsung declined to comment this morning. we have the tokyo lunchtime break on august. a plethora of economic data to be waited through. datay: we are waiting for out of china but so far it seems that emerging markets have expectation low in of the rate hike. malaysia is trading at a 17 year low, it has weakened for the last five consecutive sessions, down .3%. now they say that the

depreciation is manageable for sovereign banks. china,f that data out of we are seeing the aussie dollar and the kiwi dollar, holding two beforeefore -- to gains the trade data. australia, exports are sent to china so that is a key factor. .5%. the aussie dollar has declined for the past two months. the new zealand dollar is trading higher after declining for four months. currentlyse yen weakening slightly for the past two sessions, a little stronger than earlier in the morning after gaining for three consecutive weeks. let's take a look at what has moved in the japanese markets in the morning session, before they went on break. pioneer rising more than 11%.

the electronics maker began collaboration with a german company to develop automated driving maps. up despite a report saying that the supplier should benefit from the release of iphone models. rishaad: there is little to no doubt that china is slowing and a report says that it might be permanent. foreign business welcome talk of theym but no basic -- now say that the momentum has been lost. it feels like one step forward and one step backwards. problem that we have is the

messaging from the central government, too many conflicting messages. stephen: through this turmoil, has reform been lost? would say so.em that there must be so much pushback in the system that not only is reform that moving forward, there is resistance in the system. stephen: do you feel that a slowdown in the economy is the right time to implement reform? time tot is the best make the changes but it is painful. the problem is if the perception in the party and government wous that the slowdown will derail the reform, that is the wrong take. the slowdown is a warning shot in order to conduct the reform so do not take the can down the road. -- kick the can down the road. the reform now because it cannot -- do the reform now because it cannot wait. stephen: esther been any improvement? inrg: slight improvements

some areas and closing down in others. we have a divergent field. they were days, opening up slowly and we never had a closing. there seems to be a fear of having a competitive landscape .cross the board the systems that are closed up for -- closed up. the problem is not putting money into the economy. tohave 800 recommendations help the government contemplate where to move forward. stephen: 800 recommendations? how many will they heasd? -- heed? stephen: we will see next year -- joerg: we will see next her. stephen: increasing market access, mixed bag. committing to the roll along, that is a sticky point. joerg: the biggest one according to members.

we see laws that raise? . -- raise question marks. there are national security laws which question profitability's. what is a security issue in the economy? the role of law means that environmental law, which are good in china, are not being implemented. you have good hazardous chemical laws in china, the implementation is nonexistent because of corruption and nepotism. >> just to get to some breaking numbers out of china, we are looking at the august trade data and what we have are the numbers. we do not have the dollar terms. exports are down 6.1% year on terms. yuan a sharp drop on imports in august compared to last year, 14.3%.

we are looking at a trade surplus, 368 billion renminbi. on today's exchange rate, that is roughly 58 billion u.s. dollars. we are waiting for the dollar said,but that being looking at how these things have panned out, it seems to me that exports are falling along expectations. a little bit less compared to the previous month but you look hing, downcras 14%, which is what you have a bigger than expected surplus. that is roughly 100 billion renminbi more than we saw for july. those are the renminbi figures, we do not have the dollar figures. i will leave it there. when we get the dollar numbers we will be back. rishaad: thank you, david. what is the best way of keeping track of what is happening in

the world of apps? most leading publishers rely on analytics company appannie. cofounder bertrand smit is joining from the conference in tokyo. how does it work? bertrand: hello, it is good to be in tokyo. it is one of the key markets. actually, japan is the biggest market today. fromrms of volume coming google play and ios combined. rishaad: i was asking how app annie itself works. bertrand: the way we work is in collaboration with app publishers and customers to

better understand what is happening in the market. that means that companies are able to track the number of downloads, active usage for all of the apps across all of the stores worldwide. rishaad: what trends are you seeing? in general, what is becoming hot? what is losing ground, too? bertrand: i would say that the gaming market is still very hot. it represents 70%-80% in the app stores. r in east bigge asia and in europe it is big. there are a lot of new ideas coming to market. but are being leveraged most of it is coming from new p.s, games in the u.s. have

been doing extremely well. in japan, they are also doing extremely well in terms of revenues. outside of gaming, a lot is coming from facebook for sure. a lot are free downloads. we have social networks from 'sapp,ok, messenger, waht as well as instagram. do you see getting more popular in the future, bertrand? bertrand: i see growth in developing markets. if you look at markets like indonesia and russia and india of course, becoming the new hottest opportunities in the apps space. rishaad: let's talk a bit about the business models which are employed. free,orks best, freemium,

or premium services? definitely we have witnessed the rise of freemium in the apps space. moving to a dominant position system for apps. mostly on games but also outside of games. also, not directly monetizing themselves through user actions that they get paid for. app sales and hiin app advertising. you see the big e-commerce players investing more. rishaad: last question, what are the trends in different countries? china versus japan, what is the mix? bertrand: so, japan has less in

terms of [indiscernible] and also countries like the u.s., i would say japan and china rely less on advertising. they monetized through user action. in app payments. both markets are huge in terms of gaming. one big difference is that the google platform is not directly available in china, meaning that local chinese developers have to coming on top of the regular platform provided by apple and ios. thank you very much. bertrand: the biggest market in the world. thank you indeed.

up next, what makes a winner? that is the subject of a new book by tony blair's former so-called spin doctor. he is running as live in the studio when we are back in a -- joining us live in the studio when we are back in a couple of minutes. ♪

>> stories making headlines around the world, south korea says that it has resumed negotiations to reunite families with the north. inotiations were suspended 2008 after a tourist was shot. besides held talks at a border village and seoul says they agreed to resume the meetings. the governments ban people from communicating without consent. china has increased foreign investment along the historic silk road trading route. there are 48 countries which

grew by almost 40% to more than $8.5 billion. beijing has put money into , businesstrade services, and engineering projects. countries on the silk road include russia, singapore, and laos. russian emergency services are fires around the world's deepest freshwater lake. russian officials say there is no threat and that the fire is coming into control. the cover more than 1000 miles of the region. -- they cover more than 1000 miles of the region. likesd: everybody success, but what makes a winner? that is a question considered by tony blair's former strategist. how winners emerge in different walks of life. alastair, thank you very much for coming in. basically, what does make a

winner? business,sports, politics o. rishaad: you have done victim gamut. alastair: i do not think there is any one thing that you can point to. but i think they have an instinctive understanding of and what it is that they need to do to do the things they are trying to achieve. i think setting big goals and objectives and knowing how to meet them. rishaad: you go about objectives, strategies, and tactics. strategy and tactics, people get confused. what is the difference? it inir: you have to set context. you set an objective and work out a strategy which is how current the tactics are the details. i think you are right, a lot of businesses and organizations, they talk about strategy when in fact they are defining tactics. too many organizations into many

and too particularly -- many leaders, particularly with the pressures of 24 hour news, the need to keep focused on the big things they are doing. is,aad: the point businessmen, politicians, sportsmen, sportswomen, etc.. the winners have very different things propelling them. gym,hlete has to go to the the politician has to reach out to the wider audience. it is quite difficult to compare and contrast. alastair: the point is that i think you can learn from the others. one of my favorite chapters of the book was an argument i had with josie marini out about in football, what strategy means in football. it made me think differently about strategy. if you look at the quality of resilience, for example, how you

apply some of the lessons that people in sports and business have learned in developing resilience and how you can transfer that, i think you can. rishaad: give us a couple of examples. alastair: if you look at nicola sturgeon, the fact that she lost several elections is one of the things that makes her strong as a leader now. if you are looking at people in sport, the only person in the book why interviewed who has iver known defeat -- who interviewed who has never known defeat was floyd mayweather. everyone else has learned from defeat. that is an important lesson. rishaad: you don't about richard branson and -- talk about richard benson and the fact that they have had to endure failure and that makes them afraid of failure. alastair: for a lot of people, fear of failure is something that will hold them back. to embrace that, to embrace

failure and to say that that did not go well, what can i learn from that, it might be that you do not learn and you do not develop but i think a lot of people in this book, when i drove down, what draws them ill down,-- dr what draws them together, many of them will point to something they learned. rishaad: that is the impression i get from the book because it is not about what is driving theers, it is actually absolute hatred of losing. alastair: i think a lot of them would say, it is interesting how many of them do not enjoy the moment of winning. what they are driven by is an almost pathological fear of losing. but that can be a very powerful positive motivating force. rishaad: i want to get you one thing as well. queen elizabeth you describe as being a great winter. alastair: that surprises me.

rishaad: as a lifelong republican? brownir: i interviewed and i was going through all of the things you need to be a winner and i said i do not find anybody that takes all of the boxes and she said, what about the queen? i said, that is interesting. strategy, resilience, crisis management, focusing on the long term. she is about to become the longest-serving monarch ever. rishaad: i have to go through this. data, thatrmula one was a curious mix. alastair: it was about, in different ways, formula one, which in sports is how they use data to drive improvement, and s campaign in such a vast democracy as india was a groundbreaking use of data and technology. rishaad: let's finish off with the labour party in the u.k., the opposition labor party

selecting the leader, jeremy from the left, vilified by a bunch of people used to work with. you think it could be the worst thing that could happen to the labour party. alastair: i am very worried about it. the people to follow, in terms of prediction, then to be the bookmakers, and they have gone tom 200 to one outsider odds-on favorite. i do think that the labour party has been at its best when it is focused on representing mainstream british people. and i think that what is happening is that there is a real danger that having lost in 2010, having lost again in 2015, the jeremy corbin will take labor further -- that jeremy willn was a glider= -- take labor further to the left. rishaad: we will be heading to

mom by to find out -- mumbai. you are watching "trending business." ♪

rishaad: the indian rupee dropped to a two-year low with a feather hike. -- fed hike. we are joined from mumbai. demand forseen heavy a reaction to what is coming out from the u.s. jobs data on the weekend as well as massive selling by foreign portfolio investors. all of that pushing the ruby to fresh lows. to a levely slipping last seen before closing at a two-year low.

bloomberg is reporting that india will pay with the reduction page two $8 billion. the rupee is on a three-month incline in volatility, a gauge used to price options, climbing to a one-week high. must fall forever, however, according to the chief of and you's largest bank, the state bank of india, says that it must fall further, noting that the ruby's -- of india's largest bank, the state bank of india, says it must fall farther. it says that the real effective exchange rate, it is a sentiment which has been reflected by most experts who have been speaking .ith us the indian currency is showing relative strength. it is not just the currency, i want to mention the markets.

the index yesterday slipping 1.2%, the most since june of last year and likely to see that volatility continue today. rishaad: that is it for "trending business." it is "asia edge" next. ♪

ithaad: it is the -- angie: is the middle of the asian trading day and we are live. you are watching "asia edge." ♪ rishaad: the -- angie: the top stories this hour, more signs of stress. chinese equities slide again. warning signs that japan has slowed again, raising questions about abenomics. growth is where it was three years ago. support wanes for the beijing

trade accord but the prime minister says the fallout will be immense. rishaad: samsung reportedly swinging the accept headquarters. we look -- the acts at headquarters -- ax at headquarters. we look at the list of problems. are we looking at a ticking time bomb? europe thinks that the chinese contraction could be permanent. i am shery ahn, keeping an eye on the market. asian stocks rising for the first time in days, after seven weeks of consecutive decline. the tsx in australia leading the game. il sector is rallying after austria's second-largest oil producer made a takeover