straight monthly drop. it is epitomized the problems facing japan. low prices, reluctant and consumers, and an aging demographic. do let us know what you think by following me on twitter. some, well, we have interviews to get that inflation read out of china. indeed, we are getting an interpretation of what that jobs report in australia is telling us, here is sherry. shery: markets are digesting a lot of economic data out of asia. the nikkei is leading the decline down more than 3% after that historic rally we saw yesterday. we have disappointing data out of japan showing machine orders rising much less than economists had expected. we also have data out of china

showing prices still rising. composite is halting two days of offenses 8% --ing -- falling at .8%. employers added more jobs than expected in august. zealand stocks are unchanged at the moment, but take a look at the currency because the kiwi dollar is dropping after the rate cut by the central bank -- cutting the rate by 25 basis points. the kiwi dollar trading around down 2%. rishaad: david, having a look through what that data is

telling us about the state of the economy. david: it is a fairly complicated picture that these two sets of data are painting at the moment. consumer prices, believe it or not, are on their way up. it is not a lot, but that being said it is not at a level that would merit panic. at this point, you see this rise from may, it is fairly important to break this down and really look at the core drivers of inflation. is it core, nonfood, or food? the data is pointing to pork prices, so we are talking about pigs again. a supply crunch when it comes to prices of work -- pork. we don't know the exact breakdown when it comes to china, but that being said it is a fairly big amount. pork is a stable across the

country. let me just break it down for you, nonfood prices are down but .1%. it is really a no-brainer what is pushing prices up. quickly, let me just wrap things up with produce prices showing further deflation. this is the 42nd straight month, in fact this charts doesn't do it justice. if we can get the longer-term chart up to show how much pressure this has really been under -- there we go. have back to 2009, we do this a little bit above zero, and then 2012, every single month it has been below zero. it is currently falling at its fastest rate. to ausly, that pushes up

larger extent borrowing costs. a lot of these factories in the industrial sector in china are affected. rishaad: we will look at that story later on. do tweet us your thoughts. had australia unemployment dropping last month. they created three times more jobs than expected. paul allen is there, pretty strong results there. paul: it was an excellent result, considering the context. it were 17,000 full-time jobs created in the month of august. reducingthe effect of the unemployment rate to 6.2%, much better than economists had predicted. now the context of all of this was that the country was warned

that the numbers could been a lot worse than expected. he was really softening us up for a bad read. have had the net effect headding 40,000 extra jobs, was expecting a boost to the unemployment rate. neither of those things happened, we are back at 6.2% which leads us to draw a huge conclusion about the jobs market -- much stronger than anyone expected. thiswould it been if number had not been impacted, it probably would've been even better. unemployment could also have peaked. thank you very much. right, let's have a look at some of the other stories, certainly taking the knife to some ratings. indeed, ithe knife

is about china's market stability. it has had an impact around the asian region. it is cutting it's growth forecast. gdp growth predictions are unchanged. the 2016 production has been cut. japan have for been cut for this year, while south korea projections are down. thenew this was coming, s&p has cut brazil's rating to junk. it is adding pressure to governments by cutting spending or raising taxes. there is new bad news ahead. pension funds can't invest in securities, that can meet with sell off a brazilian assets.

some good news for investors have been a long in bombarding a ink. amid growing optimism over the potential value of its rail unit and failed prospects, it is being reported that bombardier could jump. that would give them a value of dollars --a billion $8 billion. that could reduce it's debt. the company says interest in those jets has been overwhelming. of course, the other big story -- apple has shown off a wide range of other products. this includes two new iphone

models and a new 3-d touch feature. these could help ease the concern about a slowodwdown in sales. after steve jobs has criticized the stylus, the apple pen will be one of those. has its own app store now. rishaad: you can find out how the 3-d touch was built. do read that it is in bloomberg business on bloomberg.com. looking ahead, china's premier reassuring delegates the world economic forum of have his views on the economy. barclays disagrees saying

china is not on solid footing. this is "trending business." ♪

rishaad: china released its latest information data about 45 minutes ago. consumer prices unexpectedly up, while producer prices fell. let's dig deeper with this. areks for coming in, you saying that all this data we are seeing is proving that china is not on solid footing. felt withly, the pmi three-year low. other indicators were disappointing. double likely show for their

moderation in q3. it has clearly dropped. rishaad: it is extraordinary, but i get such diametrically opposed views with what is going on with the chinese economy. jian: one thing is clear, economyss, the chinese is structurally heading downward. we have growth likely to slow further towards the 5% in the coming years. that is what we should always keep in mind. then in a cyclical way, at the moment the economy is on a downturn when you look at the ppi it has been widened further. quited: that was extraordinary, 42 months of it. this is 42 months of an overhang. is it being addressed? it needs to be addressed. we talked to people in the

steel mills when we go to china, i think the access capacity in many industries will continue to weigh on growth in the coming years, alongside the property investments. we have you know, this uptake on the consumer prices, and that can be put down to a shortage of pork. if we see that take up further, the people's bank of china may say hold on, we can't cut rates anymore. jian: it used to be called the china's pork index. there are concerns about upward trends -- inflation, which could lead to further towards year's end. they have already made a statement, they will not change

their management policy. thethat being said, we know pboc has been more reactive rather than preemptive. i think there been very cautious in terms of flooding the economy with more liquidity. rishaad: what does this mean, then, when we see a slowing economy for the yuan, for instance? will they allow it to depreciate after the initial shock? jian: if you look at 12 months from now, our view is that the yuan is overvalued by 5%-10%. especially they could go down another the pboc announced a new regime to allow the currency to be more market-driven. priority ist, their to stabilize expectations and

stabilize the global market. if we look at the latest g-20 communications, that was something of the concern among the major global economies. they said they vowed to refrain from competitive devaluation. officials probably were freaking out at the global market response after the surprise devaluation. at the moment, in the near term, i think it is their priority. down the road, clearly the are expecting more interest rate cuts because the downside leads to growth. we see that the pboc will market-driven formation. that's commitment, at some point, maybe after the fed decision. that could help settle the market. rishaad: if it happens next week, a lot of people are banking on it. jian: we look for a further

delay of the fed. rishaad: how did the market rout play into this? we haven't seen the $5 trillion worth wiped off the equity markets in china. jian: i don't want to speak with hindsight, but i think most observers, especially from the outside, she did the chinese equity market was a bubble. it was clearly deviating from economic fundamentals. it was driven by liquidity, and had high leverage. it was partly the government for the purpose of boosting the equity market, that help to deleverage the economy. based on that, the market can only go up. at the moment, only the government really can intimate meaningful reform. recently we have started to hear about reform again. rishaad: we hear about it but -- jian: that republicans the

market going -- that will help to keep the market going. rishaad: does this have any consequence for the broader economy? jian: in terms of the impact of the stock market? um, well, clearly it would not be positive. i think it is negative, particularly in the financial sector. added gdp growth on basis points to the last year, i think that will be wiped out. it is less dramatic compared to the u.s. or hong kong. this is partly because the chinese have high savings which help to smooth out in the near term. still, we allow a slowing economy, and increasing stress in the labor markets. somewhat, also, be negative to consumption in the near term.

even the right now conception has been the bright spot. -- consumption has been the bright spot. rishaad: becky so much. juliette: stories making headlines around the world, officials from both countries bornhis system was really and belongs to a separatist group. they are said to pass the bomb to the man who robbed that there. retaliation toin thailand's forced repatriation. haveovernment of myanmar agreed to sign a nationwide cease-fire in the first week of october. negotiations had stalled over how many of the 21 ethnic groups would be included. 17 are expected to sign. groups have been fighting since myanmar gained independence from britain.

dear rp and commission has called on the eu to accept 160,000 refugees from areas of the middle east and africa. tens of thousands of people are on the move after moving to greece, italy, and hungary. based on a are country size, and strength. the eu governments are expected to meet next week. rishaad: up next, economics and the rough. a report on how golf at the demises the problems facing japan. you're watching "trending business." ♪

♪ this is "trending business," welcome back. a new stimulus package was announced to stop the slowdown in southeast asia's biggest economy. it will provide dozens of regulations. it's also introduced electronic systems to simplify business permits. business is growing at the slowest rate since 2009, and it is the second worst performer falling 13% this year.

a fourth consecutive year of strike action adding to the pressure of falling sales. 48,000 labor guild members voted in favor of a walkout stop they want better pay and conditions. and-- sales slump in china the u.s. period ofe the fourth industrial action. competed service to with netflix. the operation could be renounced -- announced within days. and has 7.5 million subscribers. the vast majority of them are in india. it is a familiar story in japan -- low prices, reluctant consumers, and a lack of female dissipation.

we're talking about not economy, but golf. this rather fascinating story, craig, tell us more. we aren'tare and talking about the economy will be talk about golf. when japan was at peak position of economic might on the global stage, it was really evident from the perspective of inside the country clubs. feesyalk about membership north of ¥400 million to join some of the most exclusive clubs. those same courses are charging more or less ¥40 million. that is the most extreme example but a number of players and the amount they are playing is dropping by roughly a third. that is spelling huge trouble for golf courses here in japan. you actually have dozens that are closing down and turning into a solar farm, actually.

about 200 over the course of the last couple decades have closed, many of them went bankrupt. even foreign investors swoop -- goldman sachs, lone star, buying out from the u.s.. for a brief time those companies were the biggest owners of golf courses in japan. inis really a sport that is decline and representative of this fall from grace for japan's economy. rishaad: it was ubiquitous, even when you are a graduate trainee it used to be part of your training to learn golf. i'm sure it isn't anymore, but what is the industry trying to do to turn things around? are they taking a leaf out of the economics playbook? criag: right, well, you are right. it was very much a business activity, you conducted clients, anded

this was something that was very common as the bubble burst. a lot of companies would take heat for annual meetings and spending on golf and continuing to spend as business went sour. you are seeing a sort of shift where the golf industry has had to become a family-friendly and appeal to women as opposed to a stuffy, male-dominated sport. rishaad: thanks for that. up next, upgrades, are they enough to help apples a sliding share prices? ♪ we live in a pick and choose world.

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♪ rishaad: a look at our top stories, asia-pacific stocks on the retreat after the global stock rebound. that was on the outlook for a rate hike ahead of next week's fed meeting. with's nikkei plunging weaker than expected machine orders. australia's unemployment rate dropping, they created three times more jobs than anticipated. meanwhile, the kiwi dollar fell by more than 2%. signs that yet more easing may

be needed. china's delegate to the world economic forum say things are in reasonable shape and growth is stabilizing. the government has no intention of devaluing the yuan further, and set it would be kept at a reasonable level. hedoesn't undersea -- doesn't see a currency war about to be underway. here is shery. shery: thanks. markets reacting to that on the back of data out of china. declining for more than 40 months. the shanghai composite is down .3%. lead bywn, and declines the nikkei after that historic

rally it tumbled about 3%. we are seeing declines across the sector. we also have disappointing data out of japan showing that machine orders, and also the cpi data are disappointing economists. other topics we are seeing oil stocks leading to declines, falling more as we get into the lunch break in japan. oil has been trading below $45 a barrel ahead that u.s. government data shoving stockpiles have expanded. suzuki motor down 4% after its rating was cut. mitsubishi is rising by more than 3%. we are expecting a deal on the development of a new drug. they are said to be the most hurt by the government intervention.

these securities are down today, we have seen reports that hong ong is starting to probe some china product. back to you. rishaad: we get more on those inflation numbers with a look at what they tell us about the economy itself. diverging, consumer prices -- we saw it 2% highest of the year. it is not exactly a lock that merits panic. that being said, it is important right now to break it down. it has been on the way up since may, if you go all the way back, we were more or less at these levels. you break this down, you look at food and nonfood. nonfood was up barely, and you look at this, it is a no-brainer what is pushing up prices, 3.7% for food prices.

if you break this down further, pork prices and vegetables, there you go. she said he used to be called the china pork index, not the price index. thing that we one haven't really talked about is when you have food prices pushing up in china -- one with the last time, two or three years ago? that you start digging about social stability. it looks like, though, it is temporary. pbi?aad: what about the they areyou wonder if getting rid of this overhang, are they getting rid of excess capacity that is really causing china many problems? david: it is exhilarating, isn't it -- accelerating, isn't it?

them, heit will sway said what is pushing up consumer prices is a supply side temporary side the demand-side. a very good quote, he says it cpi real problem, because represent your cost but ppi represents your revenue. rishaad: the recent stock selloff weakening enthusiasm for the brokerage industry. shares are tumbling twice as fast as the benchmark over the last two months. what's going on? have already suffered

from the recent drop in the china stock market. now, oythey are asking regulatos to contribute to a rescue fund. it is basically adding salt to the wound because that isn't a commercial interest. rishaad: what are investors actually saying about this? kana: fund manager say this heavy intervention is making them less attractive because it is exposing them to uncontrollable risks. acting in the interest of the minority shareholders. rishaad: i guess they have a few thoughts of their own, these brokerages themselves. kana: yeah, in terms of thier share prices they have plunged quite a bit. twice as much as the overall stock market. analysts say the downside may be

limited, but is hard to see any upside. rishaad: thank you very much for that. let's get a check on some of the other stories, growth forecasts cut for asian economies after what it calls abysmal trade data. a similar call being made earlier this week. this is being driven by indonesia, the philippines, and thailand. the new zealand dollar is dipping, the benchmark rate was 2.3% to try to boost inflation. they're looking very carefully at that news coming out of china, and having a look at the new zealand dollar there. sonic and toshiba winning

their lawsuit against an eu antitrust case. panasonic, toshiba was $31 million, although that was wiped out altogether. several other companies included in the case were samson and phillips, but they lost their appeal. apple's new products, will they help to turn around the slumping sales? something like 17% since february. brian stone gets hands-on. brian: remember that old iphone 6 you bought a year ago? well that is now the old outdated model. apple just introduced the new iphone 6s. the phones look familiar, the

design is unchanged, but there is a new engine. 70%s running a new chip, faster than the iphone 6. iphone is heavily touting a new feature called 3-d touch. happens, like right clicking on a mouse, you get a series of shortcuts. touch does other things as well, press hard on a photo and it gives you a video. apple calls it live a photo. the iphone cameras are getting an upgrade. fromhave 12 megapixels, up 8. the selfie generation can rejoice, the front side cameras getting a huge boost. the new iphones come in silver, gray, and gold in addition to a new color called the rose gold

-- but let's just agree it is think -- pink. sale septembern 25 in the u.s. and 15 other countries. rishaad: singapore getting ready to vote for new parliament. and the debates, plus hearing from the chinese premier as well. ♪

shery: stories making headlines around the world, iran's supreme leader has ruled out any talks be on the current scope of the negotiations. the hit america remains the great satan -- he says america remains the great satan.

conservatives are happy i -- unhappy over the deal that limits iran's nuclear activity. coastal areas of japan were hard hit with localized flooding and mudslides. the tropical storm caused the cancellation of dozens of flights and more than half a million people were advised to seek shelter in tokyo. it will weaken as it moves north. malaysia's former prime minister says he is ready to face police questioning over his involvement with the antigovernment protest. he spoke at the rallies accusing some members of the ruling coalition of taking bribes. he is called for the estimation of the prime minister, and is accused of taking more than $700 million from a development fund.

rishaad: well, singapore faces a crucial election on friday with one eye on the next prime minister. the challenges for all parties will be to stay relevant. >> it is like elections everywhere. arguments over a redraw electoral boundaries, new andidates trying to be had criticism being hurled at each side. the influx of overseas talent is one of several hot button issues at this election. we considered see the day when singaporeans become the minority.

>> foreigners now account for one third of the population, fighting for the same jobs as native singaporeans. >> still, some say the timing for this election is right. the ruling people's action party wants to capitalize on the feel-good atmosphere and legacy of the late father of the nation. last election, four years ago, the party took its slimmest majority in history. it has been in power sent independence and it needs to win back support. for first-time voter, this election is about change. >> youngest generation once change. they want to have their voices result, it can't be the same. you can to a singapore that is run by an older generation. >> you must be really excited you are able to vote for the

first time. >> i am. >> he represents the new generation in singapore's rapidly evolving politics. for the first time, more than half of the voters were born after independence. openness,want is more more checks and balances, and more civil liberties. the prime minister is pitching stability. >> this election would be critical, you would be deciding who is governing singapore for the next five years. much more than that, you will be choosing the team who will be working with you for the next 15-20 years. >> singapore is truly at the crossroads, the election will show which road the people want to follow. and don't miss our extensive coverage on the

elections tomorrow. nda brought to that report. consultant services a new strategies to win businesses from largely untapped state earned enterprises. stephen engle caught up with them in the asia-pacific. >> we do a lot of business now for global customers in china. that business is doing well. we need to get a more into the chinese market. that will support the next phase of our goal. stephen: what is keeping you from going this amount of revenue every year to this? there is a lot of chinese

state owned enterprises. that being said, we have not gone and pushed after this market. the last couple of quarters now we're trying to make it push. we see positive indications of what we can settle on. we started to work with a few chinese companies. it is not on a large scale, but i believe we are on the right track. how will you change the perception in china of indian companies? you had to border, high-level meetings with the president. is it warming? >> from a business point of view, business and both sides are extremely positive about each of them. and about what one can me to another, it is externally, the mentoring. one is very adept in manufacturing, the other is a

very good service economy. if they work together, they can only do well. action on the ground. we need to see the perception change. needs to be more openness to working with one another. i don't see huge hurdles to this. i see -- if you look at the number of chinese -- phenomenal. we talk of a bewildered and him and for this is the scene at the moment. they've already been talking about the yuan and how they don't want to have a currency war. bey say a currency war would ill, and is not china's purpose. more of that when "trending business" returns. ♪

♪ rishaad: let's have a look at what is going on market wise. we just got breaking news coming from china, direct investment up 22%. huas is according to the xin news agency. that is all they have at the moment. this is the big picture when it comes to equities, 1% down when it comes the shanghai composite. up hong kong, it is hedge fund night with the gloves are almost off. bankers, and traders, and pundits taking a beating. david takes a look ahead to the actor. david: hedge fund fight nights, when the most anticipated nights

on the hong kong financial calendar. expect it to be epic. with bookies making bets, edible more than willing to shell out big bucks to see familiar faces get rearranged. all in the name of competition and charity. >> start of the event we felt it was important to have a sporting element to be. you're asking professionals to give up six months of their lives to learn how to ox -- box. david: it is supposed to be a bit of fun. and getcuse to start up rid of some stress. a lot of these guys are training like absolute beasts.

basically, since may 1, there been training 3-4 times a week. training at work 60 hours a week. i think a lot about trading. it is hard to find time, but in the past couple of weeks, i've been doing it 4-5 times a week. >> i do most of my training in the morning. that peoplething the job understand. we do work in finance. our jobs are very demanding. david: striking that balance between demand and finance was something these sides just had to do. after all, it is time to move test prove you're made of sterling stuff. just going to the live

pictures, it is amazing how you came out of that. the world economic forum is expecting a speech from the chinese. with the chinese economy saying growth there is stabilizing, they are also talking about the currency there as well and the structure of the economy. china could accept the kind of growth seen in the first half of the year as long as there is sufficient employment and incomes keep growing. and the environment improves. they also talking about the yuan stabilizing, saying a currency war was in nobody's interest, particularly not in china's. of course, fdi numbers. just camese numbers out, up 22% for august. that comes about an hour and a half after inflation data.

are we getting back to the point of 2-3 years back? mr. talking about that, than the conversation shifts to social stability. rishaad: there is huge factory overhang, it is a headache for when it comes to producer price index. it is on the doesn't seem to be addressed. david: back in 2009, when they spend their way out to save the global economy from a crisis, a lot of that money went into questionable.re now they are trying to work through that excess capacity. not nearly the end of

that. rishaad: thank you was a bad is it for this thursday edition of "trending business." we will recap the big stories of the day. china making a keynote address. ♪

john: i'm john heilemann. mark: and i'm mark halperin. and all due respect to hillary clintonm you seem to have learn from a master. >> literallym it was like a pledging conference. we literally had to break into a meeting. literally. >> literally. >> literally. john: on the show tonight, the former maryland governor martin o'malley. but first, the rally. some sort of vote is going to happen on the house of representatives on the iran nuclear deal, but first