♪ rishaad: it is monday the 14th of september. visitors "trending business -- this news "trending business -- this is "trending business." ♪ we are going to be having a lot of to sydney and singapore. there is a look at what we are watching. volatility with the start of the week. economists are split on if the fed will move. bets are at 28%. spur for stimulus.

china's numbers disappoint raising the prospect for intervention. we are failing to fire up the economy mired in a property slump. the next generation. the singapore prime minister's young the focus to people after the election. let us know what you think of the top stories. htag asforget the well. we will coming online and be trying to markets in hong kong cominghave kuala lumpur online and the china market in hong kong. as they interpret the latest economic numbers, they are questionsing, raising about whether policymakers are

using the right tools or have the right tools to deal with the slowdown.which a look at the mortgage early going -- let's take a look at the early going. with theaustralia index rising despite the concern in china. ie's study and currency is in focus with high-yielding currency in focus because investors are betting that china will deliver renewed stimulus to counter the situation with economic data that does not seem to be turning around. as the markets to underway in southeast asia and taiwan, in malaysia, modestly advancing and in singapore, as they digest the results, pretty much unchanged. we are watching the nikkei 225. it has been down pretty much all morning. you're watching the japanese yen. -- we are watching the japanese yen.

keep your heart on the oil majors. your eye on the oil majors, down 6%. big movers in japan driving the index lower after lawmakers indicated it would look at the issue of cell phone fees. that might be good for customers the phone companies themselves. we will be checking in on hong kong and china in just under half an hour as investors feared i just the news. investors digest the news. rishaad: we await the open. a lot on investors plates this monday. a long list of economic news. david has been following this and is making sense of this. david: at least we are trying to make sense of it. have a whole list of data. -- we had a whole list of data.

the national bureau of statistics was working overtime over the weekend. mostly pointing to a slowdown. we have talked about all of these other aspects and i will get to that but in the meantime let me flesh out these things. let's talk about debt and credit. yuanment loans -- new loans. this is in redmond m -- rem enmi. june was a unique time so a lot of these spiked to a six-year high. it was classified under this. financing, some would

like to call it that way, back to about a trillion renminbi. this looks at other sources of financing. picking up the slack from the drop. that means that this is about 50 billion u.s. dollars from july. this includes off-balance-sheet loans and stock sales. in the month before we did not have the stock sales for obvious reasons because we wanted to stabilize the markets. money supply, this is what matters. july, thehanged from highest level from this time last year, reflecting a lot of easing measures on top of cash injections which have become more regular. i just want to show the viewers what this looks like. this is over the course of three months. , holes a seven day rate

in, whatever you want to call it. -- wholesale rate, whatever you want to call it. they have been buying up the capital giving outflows to the country so as far as this is concerned, the liquidity situation looks fairly contained at the moment or fairly monday if you want to look at that. atmonday if you want to look -- -- mundane at the moment. rishaad: taking a look at bides in china after the was rejected. let's get over to sydney because it would have been the biggest energy take over but i guess it is not a huge surprise that this was turned down. paul: not, really. there was already speculation

that it would struggle to get over the line and on sunday oil search was supposed to have a meeting to discuss this soviet writing was on the wall. -- this so the writing was on the wall. shares,lved, it was all cash was involved, it was all shares. fromearch was far impressed. they have this to say. "the proposal was highly opportunistic and undervalues the company. has little merit." a fairly comprehensive dismissal of that offer. the whole takeover deal did not do anybody any favors. the cost of insuring woodside's debt spikes last week, shares are down. rishaad: that is paul allen in sydney. let's look at the stories we are

watching today. one company has been rarely out of the headlines in the last few. it was founded -- last few weeks. and was called tokyo electric power. yvonne: we are watching toshiba with first-quarter earnings after the company posted an annual loss for 2014 last week. restating six years worth of earnings. the president, who was appointed after his predecessor quit during the accounting scandal, is seeking to regain investor trust after disclosing accounting problems. adjustments have wiped out gross income from businesses that spam from nuclear reactors to memory chips and laptop computers, and prompted a board restructured. it is unclear how toshiba will change in the long run.

is a neutral rating and shareprice forecast of ¥380. ¥650red to a target of before it suspended recommendation in may. let's switch gears to softbank 5%ause shares are tumbling of this morning, the most in a year, giving them another reason to consider a management buyout again. he shall to the plan months ago -- shelved the plan months ago but scherzer -- shares are cheaper.making it they say that the shares are cheap compared to the stock that it owns. there is a $13 billion difference between the value of the bike and its investment in companies -- bank and its investment in healthways like alibaba -- companies like

alibaba. the stage anding sprint. part of it comes from concerns about the american carrier, sprint, which only recently turned around performance. let's talk about their blitz, tz,icially -- airbli officially opening up a plant and america -- in america. they are hoping to increase profile against boeing. jets will be delivered to north american customers and they say in the move, the company controls 20% of the u.s. market. that sure will double when carriers like american airlines take delivery of airlines on order. airbus has a backlog of orders to fill totaling more than 5000 robot rejects. jets.ries -- narrowbody

increasingtebow is to four aircraft a month by early 2016. rishaad: bringing you live most activejapan's and largest active earthquake. though smoke -- the smoke plume at 1000 meters. this happened in the morning according to the japanese meteorological agency. the smoking raises -- smoke rising 1000 meters. one of the largest active earthquakes -- what am i talking about, volcanic eruptions, and the biggest active volcano that is in japan. theng up later on in program, looking at the economy through rose-colored glasses.

jester says that the fed is overestimating the recovery in the u.s.. singapore, what is next for the city state after a sweeping victory for the ruling party. ♪

rishaad: we're back with "trending business to ago the singapore government -- business." the prime minister plans to give singapore government a youthful makeover. the question has to be what is next for the government. the first thing the government will have to do is put a cabinet in place. the prime minister has said that he will not do that within the

first two weeks and he will put meetace leaders who will the changing aspirations of the younger generation, in particular. have an aging population and high cost of living and an uncertain external environment so what will you do? -- he do? it was a member of parliament and served four terms. it is good to have you with us. what is your take on what happened? an astonishing victory for the ruling party. >> it was a surprise for everybody. they want a national suite. -- won a national suite. -- sweep. it was a pleasant surprise. haslinda: most people say that .a.p. learned from their

have been done to rectify the mistakes that they made. jit: i think that we got the signal very clearly although we did a white paper on the population. we had to correct that. we have put in many more policies even before about that issues many of these with the aging population and the cost of living. we addressed many of those things and people are happy that the government delivered. the prime minister talked about fourth-generation leadership. how will that be different? should bei think we prepared that the future prime minister can be any of those that came into the party, putting those that came in with this election. there is a core group and they will choose a leader among themselves. although i think it is too early for a prime minister to emerge in this term, i hope that a prime minister extends his term

longer so that it happens after the next election. haslinda: is he likely to expand his term? is he considering another term in office? inderjit: for the sake of a smooth transition and to also give the newer ministers and opportunity to understand singapore better before they assume the full leadership position, it is good that they have a transition. i think this time round, it is too late. leaders came in in the 2006. haslinda: is there a sense that they understand? most are from the military or the civil service, the leak. inderjit: -- the elite. is a risk ofre quick transition. i would like to see any of the ministers spending five years as an mp to understand.

they become ministers there is no time so they will have to learn fast because they will be in the future. they have to learn and if they do so the p.a.p. will be in good shape. haslinda: it says regardless of race and religion. are we ready for a non-chinese prime minister? inderjit: in my opinion, singaporeans are ready from the reactions we are seeing right now. napoleons are ready. -- singaporeans are ready. if we think that somebody should be the prime minister, it will be the right decision because they will have a solid mandate for fourth-generation leadership. before theership transition happens. it is not good to have a transition. haslinda: thanks. there you have it.

singapore in the midst of putting in place a new cabinet after the ruling people's action party won by a landslide party with 70% of the vote. rishaad: absolutely. haslinda amin. return true stories making headlines. japanese officials say that radioactive waste was washed away in heavy flooding. the environmental ministry says that many bags were retrieved but some were empty. another 127 bags were on sandbars and riverbanks and could not be collected until the water levels fall. the king of thailand is suffering a fever brought on by a lung infection according to a media release from the royal household. it is the second statement of the week about the health of the 87-year-old, the world's longest reigning monarch. the statement says that the king nutrition.ntravenous

he last of your two weeks ago in public at the bangkok hospital lasth is that his -- appeared in two weeks ago in public at the bangkok hospital which has been his home for the last couple of years. creams between germany and austria have been suspended till between. -- trains germany and austria have been suspended until 6:00 a.m. local time. ministers meet in brussels today to discuss eu proposals for resettling refugees. tot, the internet according jon's biggest search engine which has a vision of what use and is ready to take a big gamble. more when "trending business" returns. ♪

line rishaad: -- rishaad: we take a look at these images from the largest active volcano in japan sending a plume of smoke above 1000 meters. it is of course a mountain situated in the southern most main island. what is it doing in terms of flight? often when we see air travel and volcanic smoke, they do not get on. to japan airlines which is

saying that one flight has been delayed. which is near to the scene of the volcanic eruption. we are looking at further impacts to flights as we see coming towants more life, an active for cano. -- an active volcano. surf ridert active changing focus. baidu says the future is in service and not search and they are betting billions. tell me something, peter, why the shift? peter: it is interesting. baidu, as you say, is the leading provider of search and china. it is sort of the google in china. it makes virtually all of it's revenue from search. a funny thing happened at the big conference. on stage and he began with an focused on a new initiative which is losing a ton

of money and not making much revenue a this point. he is aiming at trying to connect people through mobile phones and pcs tumorigenesis entrepreneurs in the real world. mobile phones and pcs to merchants and entrepreneurs in the real world. it is trying to stitch together services so you cannot just earch for information but get services through technology. rishaad: the question is whether it will pay off or not. is costing a lot of baidu baidu. search advertising is very lucrative. the operating margins at baidu have been at 30%. as he has put billions of dollars into it, margins have gone down although revenue continues to grow. this year they will be below 20%. it is costing a lot today. he thinks it is going to pay off

so he is willing to put the money and now but investors are skeptical. stock is down by a third. rishaad: peter, thank you. peter joining us from singapore to have a look at baidu which is switching focus, betting on search not being the future but services instead. we are going to take a break but coming up, grappling with the slowdown. you're why the germans as it is time for a reality check when it hear why the chair ram says it is time for a reality check when it comes to china -- chairman says it is time for a reality check when it comes to china. this is "trending business." ♪

♪ rishaad: a look at the top stories so far, china might have to do more to rescue the slowing economy if the data is anything to go by. the gdp tracker is putting last month's growth that 6.2%. investment in the first eight months rose at the slowest rates in 15 years. billion just will not cut it. we'll search rejecting a takeover bid by a rival. oil search rejecting a

takeover bid by a rival. offeting was call at will surge's request. abe promised to tackle cell phone fees. he said that the government telephoneaddress costs. mobile is down by 8%, the most since 2008. without further reduce, was have a look at what is happening -- further ado, let's have a look at what is happening in the markets. unders we get the markets way, let's take a look at the numbers because with the dismal economic reports on economic output and urban fixed asset we are surprisingly seeing gains in the open at hong kong and china. the markets are going in tandem at the moment and all of this contributing to the gains on the

.3%.index about the numbers over the weekend which we will get details on in a moment raising concern that the stimulus so far end of the rate cut might not be going far enough -- and the rate jets might not be going far enough. industrial production is trailing estimates. we will get you more on that in a moment. first, the opening indications. following the likes of new zealand as well as australia and taiwan and the philippines and malaysia, all posting games. northeast asia not necessarily seeing positivity. these are the movers at the open. new world development up nearly 2%. tingyi, the cayman islands-based make your is up nearly 4% -- islands-based google maker is up

nearly 4%. notice that japan is down so keep your eye on that. we have seen gold pulling back about a moverried from the fed an additional stimulus in china. likelymulus is what is driving trading in china. these are your heirs shares -- a sure movers today. -- a share movers today. we want to give you a sense of what is happening in the currency market, a bet that the chinese policymakers will come ammunition to arrest the slowdown as well as the overall structural reform. this is where we have the japanese yen, you are seeing a bit of weakness versus the dollar, having an impact on stocks. in japan, the aussie is up. we will be watching this

closely. we will get the latest rba meetings from september and the federal reserve meeting later this week. all of this factoring into the currency markets in asia. we are watching the high-yield is. a quick check on the korean won. all about the ramping up of support. the course ofer the weekend, causing consternation. we look at production and fixed asset investment. we's find out more because have the details. david: it will raft of data pointing to a deepening slowdown. -- a whole raft of data pointing to a deepening slowdown. we know that. out with factory output. long-term metrics that show

problems in industrial activity. here is your chart going back 25 years. it cancels out all of the noise and all of the shift from the traditional capital incentive industry in august, the industrial output, 6.1% growth with a spike. that is when the renminbi was at a week level. this is where we are at the moment. .ied to that is investment or we talked about a government led economy. this is one of the key areas. a 15 year low. 98 andes back to 99 or it is still going in double digits. but this underscores the chinese need to find new sources of growth long-term. short-term they are saying that china will likely get a no drop. redoubling -- nudge up.

redoubling infrastructure projects. last but not least, retail sales, a bright spot. part of the reason it came in higher at 10.8% is that inflation picked up so you have higher value transactions. that is something you can see in every august going back to 2010, 18 .4% five years ago and we are now at 10.8%. consumer spending in china. back to you. turmoil in the chinese market ripples beyond the border and everybody from world leaders to people in bob's what -- pubs want to know how the country really works. searches have surged. our she's asia correspondent with a look at all of this new interest in china. i will she's asia correspondent with a look at all of this new interest in china. chief asia

correspondent with a look at all of this new interest in china. a big change with the currency exchange around the world. tryingda: is happening in a: everybody wants to understand what is happening in china. rishaad: google is reporting that searches of increased. what are people looking for? enda: it is interesting because google is a strong benchmark. searcheseen a spike in for the people's bank of china and currency and the shanghai composite. these are items that were not being surged in recent years at a notable level that are seeing a pickup. rishaad: and the thing is with all of this interest, people looking for all sorts of things, do we know anything, does it serve the country better? a point we made

writing the article, people want to know more about it is getting confusing. singles out of china -- signals out of china are always complicated. on the one hand, give the market a freer hand. on the other hand, they intervene, even on the yuan. the intervene to keep it at a certain level so it is still a black box. even though the interest is there. rishaad: thank you very much indeed. let's go straight to you on. -- yvonne. maybe we will see more figures to paint a better picture of china but it remains one of the biggest concerns on social media after the sluggish china output and investment. those figures are really disappointing. there is how one user put it, saying "where are all of the investments going? we are living in poverty. is it what they call the chinese dream?"

finale calling it the stage of correction, this person say "it is a rational reshuffle, they are going through a restructuring process, we just have to check out all of the incompetent industries." here is how one strategist sees it. "there will be arbitrage opportunities. we are waiting. we have been through three cycles." that,d: get more on download the bloomberg at your mobile or tablet -- app to your mobile or tablet. no sign of the rebound for china leading to speculation there could be a round of stimulus only way. that is something that is -- on the way. that is something that is front and center. we talked about jonathan lucy's support on the way down -- who sees support on the way down. global financial crisis, china mobilized a lot of

capital. we are being more cautious this time. what is interesting is that they could put more money into the economy but they do not want to do what they have done before, make the same mistake twice. the have a lot of powder if they allowing theey are economy to slow and of the restructuring to take place but they are not panicking at this point. angie: some would disagree with you. they might not be making the same mistake twice in terms of investment led economy growth but they are intervening in the markets at a pace that is really surprising for a lot of global investors and really chilling people out of the chinese market. : there is no doubt that there is systemic risk. governments do not react well to quick moving events. they are pulling back now and saying, were these smart? should we be repeating them?

i think that governments, at first, reactive a way that is unplanned. now they are thinking a little more about the problem and will have different approaches to it. no doubt that i think that a lot of investors were concerned with what china did. he looked back at 2007 and 2008, doing -- you look back in 2007 2008, the west was doing similar things. that in the same way but they were buying companies in the into putting money bankrupt investment banks, let's say, and they were marrying companies together to prevent them from collapsing. i think that chinese intervention was more naked but that jpmorgan got together the new york banks to intervene in the market. china is an emerging market and will take time to mature. rishaad: the federal reserve could be days away from the first rate hike in decades.

we will be asking economists their predictions. "trending business" returns of a couple of minutes. ♪

rishaad: jeremy corbyn has began his first -- begun his first week as labour party leader by renewing attacks on the cameron era cuts. he says that britain cannot cut its way to prosperity. give one almost 60% of party member votes in saturday -- he of party member votes on saturday but you may struggle to unite the party. hong kong says that the notion of separation of powers does not exist in the territory. they say that the chief executive has authority over the

legislative and judicial branches. and democratic lawmakers criticized, saying that it elevates the chief executive to emperor status. little reform set up three months of protests last year. a chinese -- political reform set of three months of protests last year. a chinese naval contingent long for the first -- launched for the first dr between the rill between the nations. just days before the federal reserve's most critical decision in years, opinion makers are divided on what will happen. su keenan takes a look at the week ahead. the week ahead on wall street will be all about the fat fed and fedicy --

policy which will meet to decide whether to raise interest rates. based on last week, it appears much of the market is in wait and see. trading was marked by light volume and confusion around what the fed will do. this is clearly one of the first fed decisions in which there is no consensus among the professionals. rayave hedge fund titan saying that it could prove to be an epic blunder. selloff in theet increase in costs as well as the rise in the dollar is already tighten financial market conditions, the equivalent of 3.25 basis point hikes in the fed right. if you look at where the traders are putting futures, there is a 20% chance the fed will hike

rates. the currency -- down 40% from right before the currency devaluation. on thursday we will get the latest retail sales data which economists say probably gained in august while consumer prices are expected to be little changed. in new york, su keenan, bloomberg news. ♪ startd: let's get a head on upcoming events. our next guest is the chief - economists. if they move, do you think that the markets will not get as far but you are also saying if you look at the data, may have been overestimating the strength of >> everybody has been overestimating it for years. at the end of the year, the fed and other analysts say this is

the year we willet 3% gdp growth and we have been wrong five years in a row. the fact, they want to get off notground but the data is there. we have to percent gdp growth, 2% gdpent has not -- growth, investment has not gone anywhere. inflation, the favorite index has been falling for 3.5 years. three and a half years, a little down in a little down. if this continues, september or not, september does not look likely for me. if inflation continues to trickle-down, december is off as well. rishaad: october with the press conference. david: they could do it in october, just to do it. there is no data rationale to be doing this. the economy is weak, we have a householdck in balance sheets and home equity, slot all over the place, and

inflation has been trickling all over theack place, and inflation has been trickling down. rishaad: a lot of talk about further stimulus from the government because of the weakness. avid: i do not call that critical juncture. i am surprised people are surprised. the plan all along was to cut ownedment and cut state enterprises and industrial production is the flipside. the plan was to get investment down and consumption up. the short-term risk was always that consumption was never going to step up and take over for the investment that the government was taking out of the picture. that was never going to happen. now the government will have to than theyin, more planned for. they will have to kick up the ante. not a big deal. rishaad: we got a story today with a listing of state owned companies. david: this is far more important than any of this

takedown. -- tick down. short-term, cyclical things that we should not pay attention to and the government is not the you can do. isy are focused on the -- that they are focused on the long term. this is what investors be talking about. this is where the risks and benefits are. we have lost our focus. we are on the short-term, cyclical stocks, where we might be . irrelevant. is thetters restructuring of the state owned enterprises, making sure that the debt problem does not happen again. this is what we are to be focusing on. it is good to hear that they are doing it. rishaad: thank you so much indeed. david carbon. next, she doesn't exactly blend into the background about a messaging app helps people

keep a low profile. meet the cofounder of wicker after a short break. ♪

encryptedt is highly messaging app used by journalists and even spies that wickr wants to be more than a communication tool for the secretive. securender says that technology is ideal for financial transactions and it is easy to monetize on social media. we caught up with them as the world economic forum wrapped up. >> the worker cofounder does not do things like you and i. she motors around on the electric skateboard and came to china without a single phone or cellular gadgets.

she was so off grid we had a hard time finding her. the skateboard kind of gave her away. >> i have been lucky enough to be educated by the best hackers in the world. any database will be breached. she takes being incognito seriously and claims for wickr er wickr app is the most secure. she has thousands of users in china but does not know who they are. messages are instantly deleted and cannot be traced. nico: why don't about is the idea of escaping the internet. what i talk about is the idea of escaping the internet. when you send a message to me, the only place the photo comes up is on your device because you are the only one with that you. worlder it is around the you are the only one seeing it. when does it become

paranoia? you are wearing sunglasses because of retinal scans? nico: no. the fewer information online the better. stephen: would you hand over any information the government asks? nico: weekend. it does not exist -- we cannot. it does not exist. we knew that we would be approached by law enforcement not only from the u.s. but other nationstates. we are the only app where users are truly anonymous which makes it tougher for us to grow because we are not downloading your address book and spamming your friends. human rights activists, to be anonymous is important when you are fighting dictators and we activists fighting dictators. stephen: the next step is this gross, i am sure that companies -- as this rose, i am sure that companies will be approaching you. is that we are

hoping to secure financial transactions which right now in a million holes, hundreds of holes. but you also think of the attacks that happened every year, your heart monitor or your skateboard. these are bluetooth connections. stephen: or ashley madison. amazing toate was see a billion-dollar company go to zero. i do not think it is the first one we will see. that is why the business model will that will succeed does not hold all of the data. hold yourut she will hand and educate you on the risks, on her skateboard or on the web. kyushu, theges from southernmost island of japan, where mount aso is located. volcanic from the --

sing from japan's largest active volcano. airlines are considering canceling flights with one at least being delayed. ♪

rishaad: it is monday the 14th of september and this is "trending business" with me, -- with me, rishaad salamat. this is a look at what we are watching, ups and downs. watchwords for the start of the week. economists are split on whether the fed will move. on crude.ing mood hedge funds adding the most bullish will best since april -- bullish oil bets since april.

the international energy agency saying that u.s. and other non-opec nations will reduce since next year, the most 1992. singapore is reelected prime singapore's reelected prime minister. follow me on twitter. that's my handle. include the all important hashtag as well. let's have a look at what's happening in the trading day. in jakarta -- david: kids again so far -- it is again so far for the msci is a gain so-- it far for the msci asia-pacific. the key monthly metric did not

come in as expected. it came in weaker than expected. it underscores the story that china's economy continues to sputter along. let's take a look at what's happening, this stimulus bet filtering through. you have a mix of central bank mentalities here. some believe the fed will not take any action. some believe the fed will move ahead with the right type -- the rate hike. there's quite a bit happening. the reserve bank in sydney coming out with its latest meeting minutes tomorrow. watch all of this. singapore, japan, korea -- the only markets that look to be declining. singapore, it looks like commodities are the key focus. check out what's happening in the equity space in australia. energy-related stocks.

alumina advancing. ten network up. crude oil's rebound has had an impact on the market. watch woodside petroleum, down nearly 3%. -- oil surge rejecting the $8 billion takeover offer. a 1% decline for that stock. for oil, west texas intermediate, traded in new barrel --88 per $44.88 per barrel. dropone-week basis, a 2.5% for wti. have, here is what you $48.20, up 1% over the week. an interesting convergence

between european and middle eastern benchmark and the west texas trading in the united states. that's a check of the commodity and equity markets. rishaad: investors have a lot on their plate this monday. we have a long list of key economic data points released over the weekend. david has been trying to make sense of them. david: debt and credit out late on friday. whatlarge extent, look at the pboc released. we are essentially back to normal for lending growth. saw showedhat we some distortion. a lot of these funds were funneled into prop of the stock market. the stockrop up market. u.s.is about 127 billion

dollars. this was a drop from july. that's when they stepped in to stabilize the stock market. bank loans five at a six-year at a-- bank loans spiked six-year high. aggregate finances. this puts together what we just saw, bank loans and other forms of debt creation. all the way back to march, matching estimates. back about one trillion renminbi. it looks like other sources of financing to pick up the slack. about 46slates to million, 47 billion u.s. dollars. --july, we did not money supply, fairly unchanged. 13.3%. that was the same level of growth in july. just to put this into context, highest levels, going all the

way back to this time last year, does it reflect a lot of the cash injections? the previous reductions in rate requirements for banks, plus these regular cash injections from the central bank. if you look at money market rates, which is also engage here of liquidity conditions on the chinese mainland, -- also a gauge here of liquidity conditions on the chinese mainland -- fairly subdued, fairly manageable here, especially if you consider china has been buying up renminbi and considering the outflows. it's a very delicate balancing act happening right now in china. rishaad: have a look at woodside petroleum in sydney. let's find out more as we head over to sydney. biggest have been the energy takeover in asia-pacific,

wouldn't it? what went wrong? aul: essentially, woodside did not offer enough. that's the basic analysis. that was the analysis late last week after the deal was first tabled, that it was unlikely to get over the line. sunday,s a meeting on but it was called off. the proposal was highly opportunistic, grossly undervalued the company, they said. the overwhelming feedback from investors was the proposal had little merit. woodside said they were surprised and disappointed. the offer from woodside was around $8 billion u.s. in shares. premium at the time it was made. the papua new guinea government -- this offer was less than what they paid for their stake, so it was very unlikely they were

going to go for it. the announcement this morning that the deal is not going to go ahead, but nobody has come out of this looking particularly good. oil search shares down about 1% this morning. rishaad: paul allenrishaad: 4s in sydney -- us ind: paul allen for sydney. we have a look at the renewed interest in the price of crude . u.s. drillers idled rigs for a second week amid a global glut . the number of rigs fell to the lowest level in two months. goldman sachs critics prices could drop as low as $20 -- goldman sachs predicts prices could drop as low as $20 per barrel. the oil bulls see a more

optimistic view. hedge funds, in fact, added the most bullish oil that's since april -- oil bets since april. some believe the supply will disappear as producers slow output. switching gears to toshiba. we are going to watch this closely. first-quarter earnings coming out from the company today after 70shiba posted an annual $3 million loss for 2014 last week. company,dent of the who was appointed after his predecessor quick during the -- quit during the accounting scandal, is seeking to regain investors. adjustments have wiped out that income andut net profit a complete board

restructuring -- and prompted a complete board restructuring. nomura resumed-- coverage of the stock. yen beforey of 650 it suspended its recommendation in may. software shares tumbling, down about 5.5% right now. another reason to consider a management buyout again. they shelled the plan months ago they shelved the plan months ago. softbank shares are relatively cheap, considering the stocks it owns. a $13 billion difference between softbank and its investment in companies like alibaba and sp

rint. they plan to buy back 120 billion in stock. part of the softbank drop comes from concerned about sprint, which only recently started to turn around its performance. rishaad: another story i'm the chinese internet boom. opposition party needs to do some serious soul-searching after a disappointing election performance. we will be live in the city state when we return. ♪

rishaad: this is "trending business." we have a volcanic eruption in japan. live images.

the volcano is on the southernmost main island >>. -- island. authorities have raised the alert level from three to five. it has been dormant for more than two decades. the last interruption was just over a month ago -- last eruption was just over a month ago. largest of the volcanoes in japan. -- environment empty.re torn and bags could not be collected until water levels fell. an official in hong kong says the notion of separation of hours -- powers does not exist in the territory.

the chief executive has authority over the executive, legislative, and judicial branches. some lawmakers say it elevates the chief executive to have her status. -- to emperor status. differences over political reform set up almost three months of protest last year. getting you back to our post-singapore coverage -- post-singapore election coverage. haslinda amin is in the city state. has? haslinda: the focus right now is the new cabinet. over the next week, the prime minister is expected to name is fourth generation of leaders. he says his team will consist of people who can lead the country 5, 10, 20 years. as much as the country wants to

move forward, many in the city state still wonder what happened those that happened at the polls -- wonder what happened the at the polls. let's get an assessment from a professor. he was my professor in school. good to have you with us. some people say the results show how risk-averse the singaporean people are. >> i think one has to admit it is so, seems to be. you know, as you rightly pointed their were predictions for a very good win or the opposition -- win for the opposition. [indiscernible] it did not happen. the shocke surprise,

on the ground is highly representative of the general mood of the country. analysts, even bookies have been saying be prepared for this. and the prime minister himself admitted the results were, in his words, "exceeded our expectations." too many opposition members will make it to parliament? it deserves to be further considered as a major factor. so far, it has zeroed in on non-factors, goodies and incentives. also, the new tactics and strategy and the softness of the pap approach.

there are some other factors which need more reflection, trying to make sense of something which is totally unexpected. the first thing is what you are alluding to. you have a lot of singaporeans, i feel, and this is being analyzed now, who actually wanted to see two things happen concurrently. they want the pap government to continue because it has done a good job, and they want checks and balances. thatnda: isn't it true this win puts a lot of pressure on the pap? them it be difficult for to maintain 70% of the next election? >> the ball is now in the court more of the pap government than the losing side, i.e., the opposition. the expectation is that you maintain that 70% is highly

unrealistic. and also, you can reach a oftain level, the peak your electoral mandate. -- the only way is to maintain it or go down. the pendulum could swing again on the other side. it depends on the feelings of singaporeans. nda: and the political maturity of singaporeans, is this one step or were, two steps -- step forward, two steps back? >> inasmuch as you have been wanting aatements of lot more voices in parliament to try to make things better -- [no audio] they were prepared to change their mind. haslinda: is this concern among

singaporeans real? >> i think yes. in a sense. they want their views and grievances to be given additional attention, and they want the government to be more inclusive than it has been so far. the government has been doing a good job, but the government will consider that a lot more can be done to get singaporeans into the same boat. [indiscernible] think new citizens -- there must be a discussion about how the new citizens play a role in shaping the future destiny of singapore. haslinda: the new citizens accounted for only 4% of the election. >> you talk about new citizens. 4% would be in the last five

years. you have roughly 20,000 per year of new citizens. as time goes by [indiscernible] but new citizens will continue to be old, non-citizens. they see they hype about anti-foreign sentiment. think they decided to band together to indicate, "enough." our future is at stake. we are now also citizens. an entourage to support the pap government. haslinda: hussin giving us his perspective on the results we saw on friday. a crossroads. rishaad: thank you, has.

up next, the great divide. will the fed hike interest rates just a few days from now? ♪

rishaad: the reserve bank of india is expecting another benign inflation report for august when figures are released

later on. inflation expected to slow for a second month. was 3.7%, nearly 3.8%. in february, the central bank adopted an explicit consumer price index target of 6% by january, 2016. that's coming just days before the federal reserve's most critical policy decision in years. opinions are divided about what the fallout might be or will it even happen. su keenan has a look. su: the week ahead on wall street will be all about the fed needed policy members, who midweek to decide whether to raise u.s. interest rates for the first time since june, 2006. based on last week's trading, it appears much of the market is in a wait and see mode. --ding was like in volume

was light in volume, which may signal confusion over what the fed will do. there is no consensus, particularly among the professionals. one hedge fund titan said a rate increase could prove "an epic blunder at this point." one researcher said the market may take a pass on raising rates. the rise in the dollar has already tightened financial market conditions. basisuivalent of three 25 point rate hikes in the federal funds rate -- chance ofght now, 28% a hike. there is a 59% chance that they will raise rates by december. on tuesday ahead of the meeting, we will get the latest retail says data, which economists

probably gained in august while consumer prices are expected to be little changed. su keenan, bloomberg news. interest rates cut to 6%, looking to counteract low oil prices. the drop in crude oil prices have seen pakistan's export earnings fall again. the lowest rate in something like seven years. singapore's future. we'll hear from one of the reelected members of the ruling party. " returns business right after this short break. ♪

rishaad: a look at our top stories. china may have to do more to rest -- arrest its slowing economy. 6.6%,onth gdp growth at below the 7% target. forecasts -- the slowest pace in years. oil search rejecting a takeover bid from rival woodside. they said the data undervalued

their assets -- the bid undervalued their assets. shares dropping in sydney. germany reinstating controls on its border with austria for the first time in years, trying to cope with the influx of tens of thousands of asylum-seekers. the european ministers are meeting in brussels later today to discuss proposals for resettling refugees. seeing japan close up this morning. it's on lunch now. let's have a look at the performance for the asia-pacific. zeb: we are closely watching the correlation between the yen and the japanese equity markets. we are seeing safe haven buying and many investors tried to take protection head of the federal reserve decision -- protection head of the federal reserve decision -- protection ahead of the federal reserve decision. let's take aasia,

look at what we have we have again for the msci asia-pacific have.-- a look at what we the msci gain for asia-pacific index. .oncerning for the markets you see this divergence between shanghai and hong kong. shares trading lower by about 1/2 of 1%. lingering concerns about the economy. the hang seng advancing, leading the way in terms of markets across the asia-pacific. what'smulus, that's driving investor sentiment. lenovo, property developers doing well. china overseas land among those advancing. down nearly 3%.

ongoing about the strength of gambling receipts and how quickly they can transform macau into a venue not only for high net worth gamblers but for families as well. singapore has been a persistent , down 3/10 of 1%. but jakarta is coming on strong now. japan today, the telecom stocks. some big moves here. the prime minister of japan says he wants to do something about the high phone rates. that has investors on edge. it would impact telecom shares. i want to give you a different look at how this is impacting the index. this is a chart with the broader topix. oil and gas are lower. telecom is down nearly 6%, the

biggest subgroup drag on the topix index. check out the mobile players. seven falling, only one advancing. japan.gest carriers in japan communications, some of the smaller names -- all of these shares. who is advancing? mti limited. a down day for the telco shares in japan. a developing story we will continue to watch. rishaad: they could soon be ramping up support measures. this is what investors are thinking at the moment. data over the weekend shows the economy is sinking deeper into a rough patch, or is it? david has the details. david: we have been talking about fixed asset investment. before i get to those numbers, the state council announced some

changes to what they call capital restrictions when it comes to fixed asset investment in a lot of these projects. we don't know a lot of details. we are still waiting on that. we will be getting you those details once they come through. in any case, perhaps a measure to shore up activity. you are looking at this on your screens right now. it is at a 10 year low. nowhere near the levels of the mid-2000's. for some economists, it may be a positive thing. it shows china is moving away from that fueled growth -- from debt-fueled growth. chartered doard expect beijing to accelerate approval of these infrastructure projects. a good example would be -- china railway construction.

up?we get those shares ndrc approved the billions in improvement projects. this, moreles like else. push than anything factory output, industrial production missing estimates. this goes back to 1990, 25 years. it helps you understand producer prices. prices have been falling consistently do to overcapacity or underutilized assets created during the credit boom of 2009. just that peak before the down arrow starts. 6.1%. let's leave it there for now. one bright spot, 10.8% retail sales growth. rishaad: those measures all declining. .e have crude trading up

u.s. drillers idled rakes for a second week -- idled rigs for a second week. week thatid last crude will fall another 50%. they were talking about $20 per barrel. what prompted this bearish prediction? ben: it is essentially all about the glut. what is bigger than what goldman igger thanhe glut is b what goldman first thought. persistence of life from non-opec nations -- persistent supply from non-opec nations and they are saying that prices -- if output is not reduced fast enough, prices may need to default to that level for oversupply to clear fairly quickly. thee in the u.s. is

near-term place for supply. that has been really resistant over the past few months. there have been many forecasts about what level it may need to reach before cuts are enacted. in june, the conoco ceo said at $40 shale still makes a profit. it looks like the glut might persist for a lot longer. rishaad: why is there a black -- a glut here? is there anything more you know about the time it diminishes? ben: i mean, the source of the glut is essentially the surge in u.s. shale and poen -- opec's desire to maintain market share. they are pumping above their quota. any supply cut from there does

not look likely. you also have u.s. shale, u.s. crude stockpiles around 100 million barrels above their five-year average. we are moving away from the summer drive time into a period of slower demand. the outlook for production cuts does not look like it's going to happen anytime soon. rishaad: thank you very much, ben sharples. we check in on some of the other stories making the headlines. subaru may be selling more than 600,000 cars in north america this year. that would put it five years ahead of its mid-term plan. subaru is cutting exports to china. the slowdown is hitting vehicle sales. they are shipping more vehicles to the u.s. for 45 straight months. the u.s. workers union

negotiates the new contract with autoworkers, looking for the first increase in about a decade when the contract expires. workers accepted cuts to help automakers recover from the financial crisis. they say strong sales means companies can now make concessions. the deal will set the templates for deals with gm and ford. factory is then second asset opened outside of europe. they hope to raise their profile in the u.s., where they lag behind boeing. ofbus has a huge backlog, around more than 5000 narrowbody jets. ♪ let's get you back to our singapore election coverage and our southeast asia correspondent, haslinda amin, standing by.

minister is part of the nucleus of next-generation leaders, isn't that right? haslinda: absolutely. it was a landslide victory. people'se ruling action party -- it exceeded their expectations. it was a huge margin. it could lead to complacency. congratulations on the significant win. the concern right now is whether the transformation of the ruling pap will continue. dowe looked at what we could to recruit, the way we govern. it is a work in progress. we put in a lot of effort. , it isth this election

quite overwhelming. it is important to look at what went well, what we did right, what people were looking for, and we should keep at it. ,aslinda: the last four years the government tried to address the concerns of singaporeans, like foreign workers, for instance. >> they were pressing issues. [indiscernible] something we also aggressively addressed. transport remains an issue. that slowly is coming online in a significant way. as we go through the next couple of years, towards 2020, we will keep at it. there are policies in place. the way we engage and communicate is important. we've put in a lot of effort on

that front. haslinda: how will the current government, the next government address such issues? >> it is a very natural desire. it is important to have a good opposition. it is always useful. from the checks and balance perspective -- the question is credibility of the opposition. the people have to decide every four or five years during the selectingin terms of alternatives, who they would like to see in parliament, providing that check. i think the need for opposition and the desire for people remains. for us, the focus is on what we can do to make sure we serve our

people better. the opposition will have to do their own review as well. you have been identified by the prime minister as one of the leaders that will be key to the next government. what is a key issue that needs addressing straightaway? >> we have been reviewing the issues. the g.e. is one point in time. you can't start taking stock of issues only when the g.e. arrives. there were concerns highlighted in the last election. have we been successful? there are some offsets. there are no solutions. how do we stay relevant? it is critical. demographically, we are changing. how do we transform ourselves economically, socially? linda: we will continue this

conversation right after the break. we are going for a very short break. stay with us. ♪

rishaad: germany reinstating controls on its border with austere for the first time in 20 years. the influx of tens of thousands of asylum-seekers. minister saysrior the temporary border controls are needed to ensure an orderly process for entering the country. ministers meeting in brussels to discuss proposals for resettling the refugees. has begunabor leader by -- labour leader has begun by

attacking. corbyn says britain cannot cut its way to prosperity. the left-winger won almost 60% of party members' votes, but he may struggle to unite the party with several senior leaders immediately resigning from his friend -- front bench. a chinese contingent may be headed for malaysian waters. it's a military exercise. the first joint drills between the two nations and the biggest bilateral exercise between china and an asean nation. tensions have been strained in the south china sea. southeast asia correspondent haslinda amin is in singapore. we will continue her discussion with one of the young members of the ruling party. was the family and

social development minister before parliament was dissolved. we have been talking about the new leadership. the prime minister said he wanted a strong mandate to usher in a fourth generation of leaders. will it be any different from the previous generation? what can we expect? .> it is the entire team any government will be formed by leaders from different generations. i think all of us need to look at the way we leave -- lead. that's really important. people are much more informed. people want to be part of the process. in the way wethat carry out our duties? it is not just the new generation leaders. haslinda: isn't that more pressure on the ruling party?

it will be difficult to better the 70% margin that you got. some say it is only downhill from here. >> every election, you want to do better than the last one. it would seem that way. , not onoaches to focus the general election, but on the process. what is it we got right? what do we need to strengthen, change, adjust? i think the same process needs to take place now and ultimately people decide what the outcomes will be. prior to the focus elections was the young voters, accounting for more than half of the electorate. from what you've gone through, are their any different, harder to meet? >> in some sense, yes. many of the young people grew up in a singapore that has already been transforming your we've had a good -- transforming.

we have had a good run for many years. downturnmajor economic . we have been able to navigate that. growing up in an environment where the functioning opportunities are there, we cannot just assume these things will go on. it is natural. it happens in any society. we have to continue to work hard . we have to keep the engagement. hopefully, singaporeans can be circumspect in their aspirations . is it realistic? it is reflected in some degree to the export -- the support. you need to keep at it. haslinda: the php used to say that the people with half -- the

pap used to say that the people would have to live with the people they voted for. it is no longer the case. is it fair to say that the pap is willing to be more inclusive and its approach? have thatpast, we did approach. we have walked away from that. we carry on national programs. whether you are opposition or not opposition, these were put in place. local problems -- programs depend on the local mp. we have moved beyond that. that's not an issue this round or the last round. the main thing is reach out to people. engage focus groups, dialogue. establish a connection. get feedback very directly from the people. conversation.ore

that must continue. i find it really useful. [indiscernible] i think it is a great thing. people want to be part of something. haslinda: thank you for joining us. you know what they say. looking at the next five years, the government will have to be accountable. rishaad: thank you very much, haslinda amin. up next, india releasing inflation figures. it remains off target. we have a preview. ♪

rishaad: india is expected to release a benign inflation figure later. what's the forecast here? industry production in the

month of july beating street estimates. it was propelled by manufacturing. the manufacturing output has been up 4%. the deficit has widened on a quarter over quarter basis. today, we are watching out for the consumer price inflation and wpi. with the monsoon indicating a deficiency since june of about 18%, it is likely the picture could get worse going forward. unlikely [indiscernible] it has been in deflation mode for about seven months now. they are in waiting mode for the fed meeting. rishaad: thank you. that's it for this monday edition of "trending business." "asia edge" is coming up. and a recap of the day's

stories. investmenty mellon management for the asia-pacific, coming up.

shery: it's the middle of the asian trading day. that's a beautiful, sunny look at hong kong on this first trading day of the week. we are live in hong kong. this is "asia edge." on stimulus. asian stocks gain on speculation china will do more to bolster flagging growth. mountains of debt -- china's corporate borrowing is

soaring as banks struggle with the most loans since 2008 -- most bad loans since 2008. a u.s. rate hike could be a boost for asia as the chinese economy struggles. rishaad: the singapore government getting back to work after a resounding election victory. japanese mobile covers -- carriers plunge. and privacy for profits. to the talk about -- chief executive of a company that vows to keep your communication safe. all that and more on this monday edition of "asia edge." : we are seeing again across the asia-pacific. hong kong is leading the way. --t is due to the investor the sentiment that china will come up with additional stimulus. everyone watching very closely.