the price of playstation's cut. the war with xbox. sony sees it as a centerpiece of its profit revival plan. isking smoker, thick haze illegalng caused by burning in indonesia. it has prompted help alerts. -- health alerts. the grand prix is still set to go ahead. follow me on twitter. the #as well. way-pacific stocks on the down with crude futures moving to the outsiders, investors awaiting the fed decision. >> asian markets follow the u.s. ahead of the fed decision. we have seen positive momentum in the region this morning, although the shanghai market

once again doing its own thing, down by a half of 1% despite a positive start. that is adding to what we have seen in china. yesterday, the shanghai composite down by three point 5%. hong kong has come up a little bit from earlier gains. , big pickup in pradesh shares its first-half net profit, good , up by one and a half percent. in australia, all sectors moving higher with petroleum surging. this after the bid was rejected by the oil search board. s&p eas x 200 up 1.3 percent. the topics bracing a losing streak, up by 1%. south korea looking pretty strong. malaysia is closed today for a public holiday. gains coming through from

emerging-market currencies, particularly the malaysian ringgit. it was under a lot of pressure by around 2/10 of 1%, it rose against the greenback. up by another half of 1%. look at the quick australian dollar. it has been at a two and a half week high. a new prime minister, higher commodity prices, all helping the australian dollar a little bit. weaker in the morning. rishaad: we have another big fish being caught up in china's market manipulation dragnet. authorities investigated the president of china's largest roca ridge. has more on the rooting out and idtifying scapegoats. stephen: police are investigating the president and others, two other executives of

china's biggest rock ridge. this is for allegedly insider trading as the government hunts for culprits in this $5 trillion stock market rout. civiconth, four other securities executives admitted to insider trading. the government has been going after so-called schulte -- short-sellers. also, the spreading of false rumors. authorities want to purify the market. tony hahn at asset management says there seems to be a bit of a witchhunt for a scapegoat. other media report, among new investment products promoted by civic were cross-border equities swaps popular with global hedge funds. they allow investors outside china to place bets on stocks or indices in china without actually being there. as the middleman brokerage in this case, civic, -- citic handles this.

foreigners can sidestep quotas as the transactions were initiated in hong kong. the mart -- the market collapse .as put an end to citic's rise its stock is down again today, both a and eight shares. it has lost 60% since april. rishaad: let's have a look at some of the other stories we are following for you today, including downsizing at hp. that's right. hp expects to/as many 30,000 jobs. rick up looms as part of a $7 billion restructuring that will split the tech giant into two separate entities in november. hp enterprise will supply business is with high-end technology. hp ink will sell personal computers and printers. the job cuts are 10% of the company's workforce, and will

mainly affect the company's enterprise services group, which has been struggling for years. the ceo likens this to water draining from a bathtub. before you can grow, you have to fill the bathtub up. the recent cuts will add to the 50 4000 that have already taken place. they are the most among u.s. companies this year. china pointing a gambling outsider to turn around its macau casinos. the unit cost new president and ceo will begin effective november 1. he has advised the beijing government and run property developments in china. he has challenges ahead. he will have to find a way to stem declines in macau amid tightening government restrictions. not to mention, china opening a 2.7 billion parisian macau project next year. operators ain't to draw mainland

tourists to offset a drop in vip gamblers. profits plunged 30%. we are talking about yahoo! this spinng, it's efforts to off its stake in alibaba without paying a hefty tax bill. the irs outlined new concerns over transactions that mostly are intended to cut tax obligations. there,g up to scrutiny the agency says it has misgivings about these types of deals in which the business being spun off contains mainly investment assets, or when the active business is small. yahoo! spinning off its 15% stake in alibaba could potentially save it $9 billion. early the -- earlier this month, the irs declined to grant yahoo! in advance ruling. this is a critical step for

marissa mayer, who has come under pressure for investors to return cash to shareholders, find ways to cut taxes, and avoid major acquisitions. yahoo! shares down 39% this year. back to top stories, sony ratcheting up the competition with its gain can't -- game console rivals. let's find out more. grace, what is about -- behind the price cut? behind the price cut is a compared to japan other parts of the world. this is for the playstation 4 console. so far, estimates are that playstation 4 sales in japan is 1.5 million units. that is less than 10% of its

global sales so far. this price cut may boost its japan sales. it will actually make its, maybe a good thing for travelers from japan to hong kong. behind this, one thing to note, it may also trigger a , a price war between between microsoft and sony. as the holidays approach, there are a lot of new titles coming out. it will be interesting to see. rishaad: thank you, grace. console the ante in the rivalry. coming up later, point of promise. where to find asia's most promising startups. after this break, the decision that sprint -- split traders and economists. will the federal raise rates?

rishaad: we are back with "trending business." two days away from the most important in ninereserve decision years. is the american economy robust enough? ofef economist and head currency strategy at world first, jeremy, thanks for joining us. let's talk about the pros and cons. why go now, and not later? i think as far as the mandate of the federal reserve, the data, they say they have always, the -- they are data dependent. look at the normalization policy of the federal reserve and the timeline they are

attempting to set up to get to a new normal as the new car lots , holdingarlisle's goes off on additional rate rises for six months is like taking off a plaster. you have to rip it off quickly. get through the pain, then you can start repairing them there, tearing it off slowly. that increases+++

that, haven't we? we had the so-called tapering off itself, then the end of that. it has been a slow process. the sooner they move, perhaps as you are suggesting may have to do less work in the future. >> absolutely. we have seen previously, obviously in the late 80's and 90's, that the federal reserve height -- hiked rates and had to rein it back. that is obviously a concern coming out of very, ultralow for anterest rate policy long time. it is an obvious concern. the fed doesn't have its timing right at the moment. the economic indicators say, headline inflation, we know from a commodity point of view where that is coming from. we saw in the mid-80's, we didn't see inflation bounceback 412-15 months. falls iner the initial oil prices. that is coming up soon. if they want to get ahead of the curve, hiking rates now is the likely scenario. rishaad: with that in mind, you mentioned the data. they will be data determined, they said. the thing is, if we look at their preferred gauges, that has been falling. growth doesn't seem to be robust or indeed, all-encompassing for the whole country.

there are, this is what has led to doubts. >> absolutely. there will always be doubts around whether it is the right time. we have seen interruptions in emerging markets over the course of the past couple months. there is also that added negativity. all policy makers, regardless of their stripes or their social bank, there has never really been a great time to start hiking rates. looking back over the past 30 years or so, there has never really been a time when every indicator has gone in exactly the right direction, or the markets say, ok, you are in the right position to start hiking rates. they have to take the plunge sooner, rather than later. they have markets all hopped up, they have taken on a stronger dollar. in the the conditions u.s. by 75 basis points in the

past couple months. if they hold back for now, what has that all been for? forpain it may have caused exporters in the u.s., the industrial production figures we saw over the past 24 hours, if they don't hike rates sooner rather than later, it has all been for nothing. rishaad: that's the thing, isn't it? transmission methods in the global economy? people say china is in some ways kind of sealed off given the fact that it still has a closed capital account. the thing is, if we see a much worse slowdown in china, with the rate height look foolish by janet yellen? >> absolutely. i still think we will continue to see weakness in china. i think the fed hikes this year are not advocating a september rate hike. i am expecting them to do it in december, to see how the next couple of data releases out of

china really start to paint a picture. rishaad: commodity currencies into canada, australia, new zealand, then it affects -- it affects you europe and the united states. a couple steps to spread through before we start to really see an impact on the u.s. economy. i think that would become clear by the end of the year. holding off for now, but keeping something for the december meeting at the press conference. it is a bifurcated world. china is having more loose economic policy. plus, the eurozone. on the other hand, you have mr.

connie -- yellen, who is going in the opposite direction. is that have a material impact in their thinking? >> i think, if they are holding off, if mark carney or janet yellen, they are obviously taking cues at the moment from market movements and what is going on in these emerging markets. they cannot ignore them. the latest we have heard from mark carney is, it is not having a material effect on the u.k. economy at the moment. the federal reserve said similar things. in the bank of canada, which has seen a dramatic falloff coming in the fall in oil prices, says the news out of emerging markets have not impacted the canadian economy yet. there is a side to the argument that says, if we see continual monetary policy stimulus from the chinese, the japanese, and the europeans moving forward, then maybe that, obviously,

quells market your options if we start to see a policy from the bank of england. while the central banks are off doing it, the additional liquidity, those other central banks are providing, may help. rishaad: thanks indeed for that. >> these are the stories making headlines around the world. smoke haze coming set -- has madesoutheast asia schools close. indonesia's president ordered troops to join the fight against the fires that are producing the haze. most are set illegally by farmers clearing land for palm oil plantations. organizers of this weekend's singapore grand prix are keeping a close watch on the situation to decide whether it will be safe to race. north korea says its main nuclear facility is back in full

operation, allowing it to improve both the quality and quantity of its atomic weapons. the plant was restarted in 2013 ofer the collapse of six -- disarmament talks. ofyears since the founding the ruling workers party. china is pushing to revive the nuclear talks, and officials from the six nations will meet later this week. the u.s. will not impose sanctions on china before the visit of president xi jinping next week. that is according to the washington post, which cites a senior white house official. the u.s. considered sanctions against chinese have an easy it feels have a defendant from cyber espionage. officials from both countries reached a substantial agreement and an all-night meeting on friday. sanctions are not off the table, according to the reports. up next, china costs

stock marketit hard. more pain to come. this is "trending business." ♪

rishaad: it's about to get ugly for china's fledgling hedge funds, which are short on ways

to protect themselves during a stock market route. what are the majority of these hedge funds exposed to? what are they looking at? shery: one of the big problems for hedge funds, domestic china hedge funds, is that the markets have been going up. it is not a problem per se, but when markets have been going up, hedge funds have very little incentive to go short the market. -- the majority of the hedge funds and china were actually started in the past couple years, many of these hedge funds haven't lived through a bear market. what we are seeing is, a whole lot of new hedge funds, which don't have the expertise for techniques such a shorting. rishaad: they're hedge funds, after all. >> that is what one would think. if you are familiar with the product in the u.s. or the u.k.,

or hong kong. hedge funds are precisely what they are called, hedge-based hedge. one of the rude wake-up calls here is that many of these hedge funds in china didn't actually hedge. rishaad: what about the domestic funds in a falling market? what do they do? >> one part that they don't have the expertise, the other part, the government is clamping down hard on any techniques that might protect hedge funds from a down market. the only option is that we will see more liquidation between come on one hand you have a falling market. on the other hand, you have a government that is cracking down against shortselling. it will get very ugly from here on out. rishaad: those restrictions are in place for the moment. performance of the

hedge funds outside china? >> we are seeing the hedge funds in hong kong, for instance, there have been quite a few hedge funds that have done very well in august. mainly because they have the flexibility to invest in , and goes, and other short by using futures. array ofa whole instruments not available for players there in china itself. >> that's right. we have written about some of these. pine river is a hedge fund in that has done well in august. they were up 1% in august as everyone else was falling. another hedge fund has done very well. these are hedge funds that have, as you said, the whole array of financial instruments available to invest. so much.thank you a look at hedge funds and particularly, some of these fledgling hedge funds in china. speaking of china, racing for ,ts second onshore bond default according to a statement on the website "china money."

missed equipment maker an interest payment after its creditors filed a restructuring request. it is unclear whether the court will accept the restructuring plan or whether the company can make the payments if it is rejected. .fter the break, a hazy outlook singapore's pollution index at unhealthy levels, and it is been that way for a third day running. we will head over to the city-state to take a look at hazeis half -- causing the and what can be done about it. the details, coming up right after this very short break. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20.

it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. rishaad: a look at our top stories, american consumers showing no signs of shopping fatigue. asian companies supply them and -- read the benefits. consumer and industrial shares up. china continues to fall. amid uncertainty over what the fed will do with rates thursday. china's biggest rock ridge, the head of the company was linked to the stock market route. staffesident and three are suspected of police -- by

police of insider trading. athorities are investigating number of people for allegedly causing panic in the market. 30,000 jobs at hewlett-packard because of restructuring in november. 54,000 jobse -- would go. it is a third more savings than it previously announced. shares on the way down in the extended session. generally speaking, the china markets are down, they are not, they are up. asia-pacific stocks moving up. wall street, well, providing a bit of tailwind year as well. here is juliet. lowerwere seeing china for a third session, but it jumped back into the black. the shanghai composite up by two -- two tempests of a percent -- 2/10 of a percent. citic shares coming of -- under pressure. general positivity across the

rest of the region, although a little bit of flat movement coming in in malaysia. for a publiced holiday. some of the companies we are watching closely, particularly in korea, a lot of vocus on samsung engineering. south korea's biggest engineering firm jumped the most in 18 years unexpected and that it could try to merge with samsung. also getting a good lift, samsung heavy. 2% inonic shares up korea. in hong kong, product with a solid rise coming through in european trade as well. prada's first -- half estimates, securities in hong kong weaker. the new president has to do with that. consumer socks -- stocks doing well in japan.

toyota doing well. oil search in focus in australia. speaking, good to see asian stocks rebounding on that positive sentiment coming through from the u.s. rishaad: australian prime minister tony abbott's climate change policy has been criticized at home and abroad. early indications suggest his replacement may be sticking with them. let's bring in james payton, who -- james, is the reason to think things will be different under malcolm turnbull? in the short-term, probably not. malcolm turnbull has come out and quickly defended the climate policy of his predecessor, tony abbott. he has said that australia's emissions are

substantial and comparable to what other countries are doing. he is essentially saying the current plan is working. he has been prime minister for a matter of hours. is not going to risk alienating his own party was who support the policy. he has pledged to consult abbott. anyone who thought he would come out immediately and take a more ambitious or aggressive position in fighting climate change and reducing emissions i think will sorely disappointed. turnbull essentially is saying, let's maintain the current course. rishaad: what about longer-term? is there a puzzle -- a policy of ?educing emissions will it be more pragmatic? story. is a different there is no question the malcolm turnbull is regarded as a more climate-friendly politician. tony abbott is the one who for humanity.od

he has been an ally of the coal industry when the renewable energy sector is under siege with abbott bashing windfarms and killing the carbon tax, replacing it with a voluntary fund to pay polluters to reduce their emissions. turnbull, by contrast, is someone analysts say can modernize the australian economy. when it comes to ironing out details of australia's current climate change policy, or down the track, introducing new measures, you can expect australia, under malcolm turnbull, is going to look a lot different than it did with tony abbott. rishaad: thank you very much indeed. james payton joining us, looking at climate policy in australia. indonesia have been blanketing southeast asia in a choking haze. it is getting worse.

haslinda amin is in singapore. the trouble is, we were talking about all of this. fires? causing these we don't know who's doing it. there are so many questions yet to be answered. fire's,he cause of the in sumatra, it has to do with a method called slash and burn adopted by the farmers, mainly palm oil plantation farmers who cleared the land using slash and burn. that is in a legal method of clearing land. it is causing the wind to blow northwards to singapore, to malaysia, and the cities here, takeding kuala lumpur, and a look. it has been shredded in haze. this morning in particular, because of this, it is not so bad. the pollution index is 80 compared to 249 a couple days

ago. that was the peak this year. versus the peak of all-time, which is exceeding 400. in comparison to earlier dates and years, it is not so bad. that is pretty much good news for singapore, which will be ushering in the weekend. hamilton, the f1 driver, is in town. singapore has made contingency plans to ensure that the race goes on. it says, not to worry. should the haze situation worsen, there are plans in place. it has been difficult fighting the haze problem. the question, like you pointed out, is, who are the culprits? until now, indonesia has been reluctant to share the list of companies responsible for the slash and burn. it really is about cooperation, and we need indonesia to share that information before this problem can be resolved. rishaad: thank you for that. fromnda amin joining us

singapore, shrouded in haze. what is the solution to a perennial problem? officials have begun investigating. joining us from jakarta is the director general, peter holmgren. of the problemut is, we don't know who the culprits are. >> i think first of all, we need to recognize that what is causing the haze is agriculture practices. the cost effective methods of clearing the land had been used for many years in many regions, not just in sumatra. what we should be doing is referred to these buyers is agriculture fires if we want to start looking at the solutions. areaad: we know they agriculture fires. we have to go beyond that? we have to find out loans the land and who is behind it. land and who is

beyond that. ask there are issues related to spatial planning and jurisdictions that are causing some of the issues. there are opportunistic investments going on to clear land and bring the money to agriculture. this is the root of the problem. it is exacerbated by the fact that all of this is happening at this time, which is causing more smoke and haze. if these were done early, they can be fundamentally good investments in development. rishaad: what we need is education here. education, wethe need the political will. are you seeing evidence of political will? >> there is clear political will, and we see increased ,ctivities to find the culprits as you call them, and bring them to justice. there is clear science that this is -- clear signs that this is

on the increase. whether it has gone far enough, we will see. fires have been coming back every year for decades. rishaad: what should be the next step, peter? >> there are several things that need to be done. one is, recognize that fire prevention is actually much more effective than trying to put out the fire, as long as they have started. as you say, education, awareness. but also, a strong move to make sure these practices are being turned around. coupled with the longer-term improvements of the spatial planning to make sure the land is actually used in appropriate ways, and the reconsidering of how these areas, we have thick . te -- peat rishaad: you were talking a few weeks about -- a few weeks ago about, we have to identify the problem and make sure we are not fooling ourselves when we look

for solutions. that is the challenge, isn't it? >> yes. i think we need to look at this with open eyes. there are many different actors on many different levels. farms, middle scale investors, and large-scale actors. there are governments on different layers, and we need to accept that this is a complex situation. we need to not accuse certain parties unnecessarily. complex situation. it is not just about the formula one race in singapore. we now have people evacuating their local areas, and we have what i would call haze refugees. rishaad: thanks, peter. holmgren is the director general for the center of international forest research.

we will take a break. after that, southeast asia's most promising new enterprises. from a venture capital fund. ♪

>> welcome back. making headlines around the world, a makeshift migrant camp is growing of the serbian side of the hungarian border after hungary tilled it off with a razor wire fence. people fleeing middle east conflict and africa have been using the border can't -- crossing as an entry to the european union. angela merkel has suspended her decision to allow tens of thousands of refugees into germany, only to reimpose border control once the numbers became overwhelming. she calls for an emergency eu leaders summit next week. vladimir putin has told the world to lay off syrian president and concentrate on

defeating isis. the russian president says a coalition is needed to combat the terrorist group, and the syrian army should be part of it. russia has continued to supply arms to the syrian regime, even as civil war has killed thousands and prompted a refugee crisis. a speech by robert bugatti at the opening of parliament tuesday sounded strangely familiar. that is because it was the exact same address he delivered on the state of the nation a few weeks earlier. an administrative mixup meant he was given the wrong script to read. the 91-year-old read the 25 minute speech through to the end. apparently, he was unaware he was repeating himself. the lure of korea advancement, per cd, -- prestige, and other things are

joinng chinese bankers to entrepreneurship's. ,he other startup opportunities a venture partner at 500 startup , a seed fund in silicon valley. at the moment? >> we see the excitement. people used was so see if the excitement to silicon valley, but so many parts of the world have this excitement as well. rishaad: we will go through the individual countries in a moment. the business models are evolving. a room rental place with no rooms. is this the future? >> the future, people think of it as some kind of technology -- technologically advanced place. but most of the billion dollar companies are solving problems that are traditional.

or, not hot. they are doing it in ways that require much less capital of run. there -- they can be in multiple cities at the same time. we have a gym service with no gyms. it is across a zone -- asia-pacific. they have launched in 16 cities in eight weeks, offering a one-time fee where you can workout from any jim anytime you want. rishaad: how does that model work? >> they actually use existing gyms and studios. if you are a gym owner, there is space. you still have to pay rent. but what we do is, it allows gym owners to give the other people to sample and try. rishaad: at certain times. low peak, high peak.

we were talking about in bangkok having restaurants were you would -- where he would get a discount on your meal. companies, they are usually compared with over. they areber. delivering services as well. you can get a motorcycle, if you are to -- in jakarta, it you can get a motorcycle that will take you to your meeting. innovation is happening all over the world in all different industries. how did you identify a proposition? >> right now, the easiest way to identify one is to how much -- how much traction it is getting in the early stages. thousands upon thousands of customers, they keep coming back. the southeast asia portfolio, we have 50 companies. we have 1200 companies globally in 50 countries.

after seed stage, they may not have a large and profitable business, but they have customers who keep coming back. what we do is, follow the customers, what they want. usually, it leads to a good place. rishaad: what is phase.com? -- it is anine online news company in malaysia. this was one of the early waves of malaysian entrepreneurship. malaysia is one country. where else are you finding the excitement? you are moving into vietnam. came back from vietnam. --re are a lot of company countries with young populations congregating in cities with a huge demand for products and services to make life easier. however, these countries are not typical places that you associate with high-tech startup

innovation. vietnam, the philippines, these are some of the countries. rishaad: people have ideas all over the world. capital is however, not readily available in every part of the world. rishaad: that is why you are here. with the penetration of smart phones and mobile devices and how intrinsic it is, how important it is in the startups in this part of the world particularly -- >> the next billion internet users will start with desktops.s, not all kinds of business models which are dominant today, if you invent them with mobile first, you have a shot at taking down incumbents. anywhere else here in hong kong? younge here for the china entrepreneur event. will you be looking for new ideas?

>> i can tell you, i am looking leadersthe key startup and key talents who want to launch venture capital funds. we have launched six new funds in the past six months. we have one in korea, one in thailand, and we are always looking for great talent who has an eye for the best is mrs. and the right talent. we want to launch new funds all around the world. rishaad: great to meet you. >> thanks for your time. india,: air travel in among the cheapest in the world. the government wanted to become cheaper. we are headed to mumbai for the details. ♪

rishaad: air travel in india is among the cheapest in the world. airlines are being told to cut

fares. let's go over to among by -- to mumbai. >> there is only one airline at the moment that is profitable, and that is indigo. it is not a listed company. it is a low-cost carrier that has managed to hold onto profits. it is interesting. on one hand, you have airlines offering very low ticket prices. on the other hand, they are being forced to hire stakes, higher taxes as far as the atf goes. cost that anyal airline has to pay, and that is ensuring they are not able to bring down the costs. long resisted government interference when it comes to fixing ticketing prices, and they say that if the

government wants them to reduce fares, they will have to do so by bringing them multiple airports. --h prices falling, that is that cost is being passed to consumers. there -- the government says there is no reason why fares couldn't go down. thank you for that. let's turn our attention to what is going on on social media. if on and sherry are looking at jeff bezos and his plans to emulate elon musk. exciting news. bezos announced that their exploration company, blue origin, announcing they will put $200 million into the new facility at cape canaveral. we are looking at the flagship rocket called shepherd that they

test launched back in april. stephen: they are facing competition. we have boeing as well. they opened a facility in cape canaveral two weeks ago. today -- two doors down from elon musk. one person commented on twitter, entrepreneurs. origin seen #321 blue trending on social media. user is talking about the excitement. happy to see another rocket company is making its way out to space. shery: #jobs because they will create 130 jobs. yvonne: back to you. rishaad: stay tuned, asia edge is coming up.

,ur guest on today's show regional chief investment officer for ubs wealth management for the southern asia pacific.

mark: i am mark halperin. john: i'm john heilemann. "with all due respect" to mark cuban, you are no longer the biggest character in dallas. ♪ >> good boy. happy belated rosh hashanah. the incredible, bilingual trump and the $18 trillion man. the first anti-trump tv ad has been unveiled by the club, and they plan to spend more than a airing it in iowa. million dollars but if you don't live in the hawkeye state, this is what that particular 1% wil