rishaad: it's monday, the 21st of september. i'm rishaad salamat and you are watching "trending business." we are going to be live in athens. china optimism. no collapse is nine. that according to a private survey. despite the stock market plunge and currency devaluation, capital expenditure has rebounded and services are selling -- are showing strength. new mandate.

alexis tsipras sweeping back to power in greece. the syriza party will again seek to form a coalition to push through the spending cuts he once opposed. plus, the lockup on 63% of alibaba shares as been raised. investors battered by a market slump are bracing for the worst. yahoo! hasn't pledged not to sell. do follow me on twitter. ishout further undo, it about the trading day. first trading day of the week. singapore, taipei, and kuala lumpur. stocks trackeeing those losses from wall street on

friday as investors continue to see the federal reserve decision , and perhaps the indication from the decision that things are worse in the global economy than many think. all the markets trading in the region right now are trading lower. singapore, malaysia, and taiwan. you're seeing about 1% on the taiex index. the kospi trading lower today. closedwe should note, is , on holiday until wednesday. no trade there until thursday. as a matter of fact. asx 200 down by 2.5%. we're watching commodities today. even though gold futures are rising, the iron ore benchmark of for a second day, it is not helping stocks in that market. we got is appointing consumer confidence figures today in new zealand. the index of wellington is trending lower. the kiwi is down on the session.

china coming online in 30 minutes. rishaad: absolutely. one survey that's not jumping on the china bashing bandwagon is the latest china beijing findings. stephen engle has got more on that. what did the survey say? stephen: the china beijing book counters a lot of that noise. that noise is concerned about the health of the chinese economy, as well as criticism of the way chinese policymakers have responded to the turmoil. lloyd blankfein said the handling of the market rout was awfully messy. the china beijing book described a mix, rather than a disastrous picture of the chinese economy and says global sentiment on china has veered too bearish. perceptions may be more thoroughly diverse -- divorced

from facts on the ground than any time in the last five years. the survey points to a rebound in capital spending and strength in the services sector that contrasts with deepening skepticism from abroad on the economy and authorities' ability to steer appropriate policy. bloomberg sat down with the chinese state counselor. he said the stock market rout does not affect the health of the economy. >> china is not free from its own set of challenges and problems on the economic front. of course, there have been some ups and downs in the stock exchange market, but given givens economic china's economic development, given the fact that china is a developing country, some movement on the stock exchange equal thehould not whole picture of the chinese

economy. stephen: no skepticism. back to you. rishaad: you can watch more of that exclusive interview with chi later on bloomberg. greek voters have embraced the man who took them closer than ever to being forced out of the eurozone. alexis tsipras winning his second election in eight months. let's get over to athens. anthony joins us. the outcome wasn't expected to be this clear-cut, was it? was it a surprise to you? >> absolutely. pollsters appear to have been horrifically wrong throughout these five weeks of campaigning. to have aas expected

syriza victory, but not of this size and scope. even alexis tsipras himself was caught behind camera telling journalists that he himself also didn't expect such a strong reelection. he's expecting to get about 33%. 36%.come back with almost back as an almost invincible force here in greece. of course, he has enormous challenges ahead and he has a steep mountain to climb, given the fact that he has a coalition seats if hef 155 cobbled together a majority in parliament. we've seen bigger coalitions with greater majorities

collapse. he has a lot of work before him. rishaad: he did cave in to the creditors, or someone described it as that. how do you explain how he got roughly the same amount of votes , the same level of support, compared to what he had in january? reasonsnk there are two here. supporters,, his despite the disillusionment, despite the anger, wanted to see the government be given a second chance. the second reason is that they have simply been fed up with mainstream, the other mainstream political parties, the old political guard. his fresh face and his determination to crack down on cronyism and corruption led a lot of voters here to give him that second chance.

rishaad: so what next for greece? for risks are there ahead this third bailout package? it's -- i mean, there are a lot of challenges that lie ahead. you have to, literally as he put it, roll up his sleeves and get to work as soon as possible. he has to complete more than 120 prior actions which creditors want completed by the end of the month. he also has to recapitalize the banks here. he has to lift these capital controls by the end of the year, and he has to start these negotiations on debt relief, and he has to win over this approval by the creditors. he's saying at the same time that he wants to make tweaks to the agreement that he's already clinched with creditors.

that could put him in a difficult situation yet again with creditors. he has this fresh mandate, but it remains to be seen how creditors will sit down and deal with him and his designs to kind of ease and soften the rough sell this dealn to the electorate here. rishaad: thank you very much indeed. right, let's turn our attention to some of the other stories making headlines today. let's do that with shery. shery: good morning, rish. volkswagen says customer trust is key after it was exposed for cheating on u.s. air pollution tests for years. the german carmaker admitted fitting diesel vehicles with software that turns on full pollution control only when the car is undergoing official emissions testing. the environmental protection agency estimates during normal

driving the cars produce 10 to 40 times the legal limit. the violations could add up to $18 billion in fines. the justice department could pursue criminal publication -- criminal prosecution. vw has said that regaining customer trust is key. this affects almost half a million cars sold between 2009 and this year. the revelation hit just days before the board meets to renew the ceo's contract through 2018. three business units are filing for bankruptcy. this comes five months after the maker of electrical transformers became the first state owned chinese company to default on sn onshore bond. it says it cannot pay its debt and plans to discuss bankruptcy. drew attention in april when it failed to pay bond

interest and didn't get a government bailout. tianwei suffered huge losses last year. e. is also likely to be the second to default after a local report in china said it plans to accept a restructuring request from one of its creditors. china has had three domestic bond defaults this year. fed officials say they see a chance for a 2015 rate hike despite rising sentiment that it may not happen until next year. three policymakers say the fall in u.s. unemployment would outweigh headwinds from the global market. san francisco fed president john williams said the fomc decision this month to delay a rate rise was a close call. the celebration was framed by yellen in a post meeting press conference, interpreted by many as a sign that the central bank might not raise rates this year. investors will hear from yellen

again on thursday when she delivers a speech in massachusetts. rishaad: coming up later on the program, we are going to be talking to -- [indiscernible] it's a good bet that china's stock market will rebound. after this short break, alexis tsipras winning support from great voters. he faces a tough road ahead. more on his challenges, next. ♪

rishaad: we moved back to one of our top stories, the return to power of the former great run minister, alexis tsipras. 36% of the vote in general elections. our next guest says syriza lacks the technical and financial know-how. he's chief executive of cognos is advisory.

an even bigger mandate, you could argue, this time around. >> that's not true, actually. last time, he had a majority of 12. now he has a majority of five. he got 35% versus 28% of new democracy with an abstention of literally 45%. 55% of voters voted. in other words, he has a clear if oney, doesn't matter person burden that voted, but it is not clear that this was a landslide election. rishaad: the thing is, what does he do next? what are the hurdles he faces? you're saying he has a lack of technical know-how. >> there are two things. there are about 110 actions that have to be taken. these require -- [indiscernible] , then you have

implementation of the law. the minister has to act within the range of the law. difficult bylaying saying, we have 110 things to do and the ministers will take care of that. by the sixth of october, the european union should say, we can't. but by the end of the year, they .ave to have signed off and much more importantly, if that happens, then the imf will consider whether they are going to join. the imf said, we are not joining until the greek debt is renegotiated. rishaad: perhaps smoke and mirrors. >> that can happen. but in technical terms, there is a hurdle to the past by

implementing the reform actions. then the european union gives it a papal blessing at the end of the year hopefully. then they take out the checkbooks and look at the imf. the imf might say, we will join in. for this to happen, they have to start renegotiating the debt. the european union has said, yes, we will consider it. rishaad: because they can't pay it back ever. >> exactly. to implement it, because tsipras tried in july to put a gun to their head, and they put a canon to his head. he knows that he cannot go back. he knows they mean it. greece is not in a negotiating position anymore. rishaad: ok, that's greece.

the fed is not done. fed votedber of the for an increase in interest rates in 17. i like that. rishaad: somebody wanted to have negative interest rates. on the 29th ofe december, i will still stand correct, because they did raise it in year 16. there is no fed meeting in november. rishaad: octobers press conference -- >> the fed can raise interest rate anytime. they don't need to have a meeting. i don't think they are going to raise interest rates until the end of the year. if they will, i think there will be a good possibility it will be the middle or the end of the first order. rishaad: did janet yellen blink? >> yes.

blinked to the extent that initially, the notion was, we are looking after the american economy. we don't give a hoot what happens to the european economy. that's their problem. stopped by saying, if we do that, the whole thing is a double-sided bazooka. they had to say, we will look at what happens to the rest of the world. they didn't say that. i'm saying it. not that we care what happens to the rest of the world, but if we pretend we don't, all this is going to be negative for the american economy. frankly, i don't care. all i care is they are not going to increase interest rates. i think it is foolish. rishaad: always a pleasure having you on the program.

yvonne: checking some stories around the world now. --na has pledged to come out japan has pledged to promote peace. a bill was pushed by prime minister shinzo of a to allow japanese troops to fight in foreign wars for the first time since world war ii. china's foreign ministry says japan must learn from history. south korea also called on japanese leaders to focus on regional peace. croatia believes almost 30,000 migrants have entered the country since a surge started several days ago. the influx happened after hungary shut its borders with serbia. speaking in berlin, u.s. secretary of state john kerry said there could be no solution to the problem as long as syria's president bashar al-assad remains in power. paul has adopted a new

secular constitution, almost 10 years after the end of a long-running civil war. the president made the proclamation announcement, setting off a roar of applause from members of parliament in kathmandu. thousands of people who had gathered outside the assembly building cheered and waved the national flag. some religious and ethnic groups opposed the new document and protests in recently cap left dozens dead. rishaad: here's where we are going next. changes at the top. looking at the challenges facing australia's new treasurer. we are headed to sydney when "trending business" returns in a couple minutes. ♪

rishaad: we've got the new cabinet of the australian prime minister being sworn in. live images coming through from our camera here. we've got a new face in the treasury. intt morrison is the man charge of the australian economy. we can now speak to michael heath in sydney. mainel, what are the challenges facing the new treasurer? >> well, his challenges are. . myriad.re

he's got week, the prices. he's got a pretty big budget deficit and a central bank with relatively limited policy ammunition. a range of challenges against him. on the positive side, australian dollar has dropped quite a lot, which is going to provide some stimulus to the economy. there's been 24 years without a technical recession in australia. he does have a couple things going in his favor. but he really has to craft a narrative. morrison's never had the economic portfolio. what are the pundits saying about how he's likely to perform? >> it's really up in the air. he's been a standout minister, i think it's fair to say, under tony abbott. he deserved promotion. but he made his name as the

heart man on immigration, turning back asylum-seekers trying to get to australia by boat, and being quite callous. he is capable of getting across his brief. he's going to need to do that. this is a lot more of a nuanced portfolio than just turning back boats. he's going to have to boost confidence in the economy and put together a plan that he can sell to the nation. rishaad: michael heath joining us from sydney. the australian government general swearing-in those new ministers. coming up next, alibaba investors preparing for the worst. a lockout is snapped on almost two thirds of the company's shares. ♪ 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. things aren't as bad as they look for the chinese economy according to a new poll. capitalige book saying expenditure rebounded slightly in the first quarter and the services sector showed strength. fed officials say they still see a chance for a 2015 fed rate hike, three policymakers saying falling u.s. unemployment would

outweigh headwinds from the global market. they say the decision to delay a rate rise was a close call. alexis tsipras will return to power in greece following another emphatic election victory. his party receiving 36% of the vote. tsipras now must implement the further sharp spending cuts and tax increases he ended up agreeing to in exchange for fresh european eight. we are about to get to the start of the session in hong kong and shanghai. how's a look at the overall your money is doing. zeb: wish i had better news. stocks around the region seem to be trending lower. certainly, that's what we are seeing in many of these markets. japan is closed until thursday because of a public holiday. the kospi index is down 1.5%.

some heavy industries may be offering buyout offers. check out the msci asian-pacific index, right now trending lower as well. as hong kong and shanghai, online, stocks trending lower. elsewhere across the region, pressure in asia, singapore. the "singapore sessions, looks like noble group down about 2%. 2.6% drop for the afx. let's look at the currencies as well. we have the great election this weekend. alexis tsipras catapulting back into power with syriza. generally, that seems positive for the market. one of the reasons why the euro is trending higher. the kiwi is down today. consumer confidence numbers in the latest quarter, and the aussie dollar is flat.

here are some movers in the sydney market. coca-cola today in focus. there are rumors of an sab miller possible bid for the company as a defensive move according to "the times." we also have sydney airport. we told you early in the broadcast about this walkout by some customs and border patrol staff. that's happening today and for the next 10 days. watch that if you write flying -- if you're right flying through sydney. shares falling 2.5% in sydney. china's xi jinping telling rupert murdoch that china is open to foreign media. we will take a look at china to see what you're getting on the opening numbers. if we look at the hong kong market, a decline of 1.5%, 1.3% now. henderson land down in the session. look at the oil related shares. watch that. it is an important week for

china. xi jinping headed to washington for his first state visit. rish. rishaad: thanks. china's top foreign affairs official says the decision to delay the inclusion in the basket of reserve currencies has nothing to do with the government devaluation of the yuan. in an exclusive interview with betty liu, yang says that market forces determined the value of the currency. >> we let supply and demand determine the value. imb generally speaking is quite steady in value. we will of course continue to do reform in china in various sectors, including the financial sector. when people look back 10 years or 15 years from now, they will

see that the market reform is really good not only for china, but for the rest of the world. betty: 12 months from now, will the rmb be lower in value? >> i think it's natural for the currency to move either way, yet it is reliable currency, and more and more people actually do their trade in rmb. willure that the rmb continue to play a very healthy role in promoting not only china's economy, but the international trade and investment. betty: some have expected that the valuation happened after the decision by the imf not to include a recent delay in the rm's inclusion in the basket of currencies. did that influence the government's decision? >> i think these are two

separate things. of course, we have had good cooperation with the imf, with world bank, and for that matter, with abb and so on. we will like this cooperation to continue. i don't think there's any connection about the sdr thing and the currency situation here in china. betty: were you surprised by how the markets reacted to the devaluation of the renminbi? >> let me say this. every country has its own challenges and problems. and every country should do a better job of their own economy. betty: they should mind their own business? >> i don't mean that. what i mean is the chinese economy is a big one, but not that big.

there are many players in the field. their economic performance fundamentally has an impact on the behavior of the financial markets. china,ference between andchinese stock exchange the stock exchange of many western countries, is there are far more institutional investors in the west. and of course there's always room for improvement for anybody. willdo hope that people take an appropriate and calibrated approach to what happens in the financial market, wherever it might be. people should be respectful to facts and to be fair. china is a positive force for

world economic growth and will continue to the. rishaad: more of that interview later on. for our viewers in the u.s., it is airing monday at 9:00 eastern time. watchedinvestors have their new york listed shares fall by more than 40% from the november the, bracing for the worst to come. on saturday, the lockout of alibaba's stock and it. bloomberg news' asia technology editor is with me now. are we expecting a plunge? some people are predicting that. >> i think we've known this was coming. it is priced in. we can expect a little bit of volatility, but in terms of what happens to alibaba stock, the bigger question is the longer-term. rishaad: yahoo!, what is the status here with their holdings?

>> yahoo! is trying to spin off their stake in alibaba, has been trying for some time. it says it is confident in doing so. this is despite some irs scrutiny. i guess we have to wait and see. rishaad: what about alibaba's prospects longer-term here? i think a lot of people got confused by the strategy that's been employed. >> it is trying to expand into internet services, beyond e-commerce. it has a lot of competition. the other thing is, it is trying to expand globally, which is somewhat outside of its comfort zone. i think those two things are more important in the longer term. rishaad: backing their clicks with bricks to some extent as well. thank you very much indeed. let's check in on some of the other stories we are following for you. it helped open the stock market

in china to foreign investors. now, morgan stanley's china asia fund has fallen on hard times, slumping some 13% this year. that compares to 6% decline in the benchmark. luck doesn't look like it is going to change anytime soon. analysts cutting their estimates for how 2015 will turn out, forecasting a fall in revenue. in january, they predicted a slight overall increase. population decline is now such a serious problem in japan that in some cases, entire neighborhoods are being left abandoned. 8 million homes are believed to the left unclaimed and unwanted across the country. that number could rise to 20 million. as shery ahn reports, that's one

third of the country's total housing stock. shery: now we're outside tokyo. this part of the city is a microcosm of the japanese housing market and the problems it's facing. about one in every five homes here is empty and unused as a result of japan's rapidly aging population. young people have moved on, searching for a better life in the big city. the city decided to fight back, launching an initiative to offer vacant homes a new life. >> since we started in april, we have managed to arrange for rentals and one sale. although the actual number of deals is small, the interest in the program is massive. shery: easier said than done in japan, where only 15% of home sales occur on the secondary market. that's partly because of tax regulations. the value of a wooden home depreciates to nothing after 20

years. homes aren't built to last because there's almost no resale value. >> the issue of abandoned houses cannot be solved without appropriate tax reform. shery: a key part of prime minister shinzo on base recovery plan was to encourage new building. it's a plan that many says ignores the realities of japan's demographics. every year since 2008, more than half a million homes have been left empty or abandoned. while many aren't in the best shape, at least they are available for use, and for some, affordable. >> it's only ¥10,000 a month. i wanted to live somewhere i can afford with my part-time job. shery: it will take more than a few students to give japan's secondary properties the boost they so desperately need. shery ahn, bloomberg. investorsust ahead,

need to be increasingly inventive. we're going to hear from the swiss bank when "trending business" returns. ♪

yvonne: alexis tsipras will return to power in greece, following another emphatic election victory. he managed to secure a new mandate despite a party rebellion over acceptance of european demands for more austerity. the syriza party received just under 36% of the vote. its main rival, the center-right new democracy, is expected to get 28%. with syriza falling short of majority, tsipras will try to build a government with a coalition partner. china and malaysia have carried out joint military drills in a

strategic waterway through which 80% of chinese oil imports pass. a chinese destroyer and guided missile frigate took part, along with 1000 chinese troops. it's the largest ever drill involving china in the country and comes amid disputes of territorial claims in the south china sea. pope francis has met with fidel castro on the first day of his cuba trip. the vatican described the 40 minute meeting as informal and familiar, with discussion about big issues facing humanity. pope francis took a subtle job at the communist system by urging cubans to serve one another and not an ideology. let's have a look at some of the stories making headlines. week, xi jinping's

visit to the u.s. is his first state visit as a chinese president. it goes on for seven days. he will travel to washington and head over to new york where he's expected to address the u.n. general assembly. the latest economic indicators from china coming out wednesday when tyson releases sectors -- figures. att month's figure came in 47.3. will the glass be half-empty or half-full for the world's biggest dairy exporter? new zealand reisinger earnings. a global glut and weak demand from china. prices are now rising on increase milk production. friday, we see how far off the bank of japan is from reaching its 2% inflation target. economists we talked to say it probably felt by 0.1% from a

year ago. the s&p downgraded its outlook for japan's recovery. concerns continue to dog financial markets. asian shares have started the week with a bit of a tumble. where is the smart money going next? our next guest is cio in singapore, here to answer that question. brian, where is the smart money going indeed? i think the u.s. economy is in pretty good shape. i think we're more confident about the u.s. economy than the fed. as a result, we are investing in leveraged loans. but no duration. these are floating rate securities. also in the u.s., we are securities. visa

they represent very good value when you compare them with high yield or any other kind of investment in the u.s. are too.s., equities psychologically and sentiment-driven. despite a strong economy, we tend to evil equities -- to avoid equities. rishaad: what about equities away from the u.s. as well? if we look at europe, some valuations are very attractive. >> indeed. we like european equities. the financial sector will do particularly well. but again, equities are very psychologically and sentiment-driven as a class because they are precisely of that large retail participation. if there is a way we can replicate equity exposure, but participate in a more

institutionally driven market, we will try to do that. in europe, that market is a high-yield bond market. risk, we can buy corporate as well as duration. we are happy with the base curbs in the periphery and in most of europe. we by european high-yield bonds. also, in the same sort of arena, financial capital securities. capital securities that are issued by banks and represent regulatory capital. attractivet's a very asset class for a number of reasons. for most of all being regulation. we like event-driven trades. european banking regulation is forcing that on the banks, a deleveraging, which benefits slightly more senior securities right next to equity. rishaad: when you talk about event-driven securities, when

you mentioned high-yield and the fixed income space, what about government debt, what about the prospect of the yield curve in the u.s. flattening out a bit after the recent steepening after they decided not to do anything and move in september? now, we've some time been very comfortable with the u.s. yield curve, particularly at the 30-year end where we think the supply and how the u.s. treasury funds itself creates undersupply. we've been very comfortable with that. given that the fed has now delayed its action, we need to consider more carefully what's going to happen to that curve. principal among those concerns is the plumbing of the fed. the fed's rate is 25 basis points. the effective rate is 14 basis points. if the fed were to move to 50 basis points, how is the fed

going to get the effective rate beyond 25? i'm not quite sure. i don't think anyone is quite sure what the implications of getting the effective rate of towards 51 b. it could lead to a selloff in the treasury market and a steepening of curves if the fed is not careful. however, in europe, i think it's very clear with what the ecb is doing with qe in its early stages. we are comfortable with buying duration there. however, there's a more interesting trade. that has to do with the plumbing of the european payment system. effectively, sovereign risk across the region. i think one of the more attractive trades from the rest perspective is to be long periphery and short bonds. rishaad: great to talk to you, brian.

brian joining us from singapore. we have to take a break. japan celebrating a historic victory of a traditional powerhouse in world rugby. we will get the reaction on social media next. ♪

rishaad: you are back with "trending business" as we look at what's trending on social media. shery: i'm here with yvonne and we are looking at the rugby world cup. over the weekend, we had a stunning victory. look at those fans. they must have been really excited. 34-32. against a two-time world champ, south africa. this has been trending on social media. #gojapan. people tweeting about this. even harry potter author jk rolling saying, you can't write

this. this is an incredible victory. some people calling it the biggest upset in the history of the sport. this is english rugby star jonny wilkinson saying, brilliant performance by japan. no one is safe. shery: -- yvonne: i'm taking a look at burberry. they are really doing this digital push. you can actually check out its new spring-summer collection on snapchat. i think it started sunday evening in london. you might be still able to see it. they are doing this for 24 hours until it debuts on the runway. in true snapchat fashion, it is going to vanish after that. pretty cool stuff here. you can check out their latest designs. they are putting a lot of money into digital and social media. shery: not just burberry, everyone these days. back to you, rish. rishaad: coming up, we speak to

the man test with implementing india's wide-ranging economic reforms. the indian finance minister joining us live right here on bloomberg. ♪

it's monday, the 21st of september. i'm rishaad salamat and you're "trending business watching "trending business." we are live in athens later this hour. global angst. asia markets starting the week on a slide, sparked by concern as the global economy looks at u.s. interest rates. regional stocks tracking friday's losses on wall street. investors digesting that fed decision to stay on rates. officials say a 2015 lift is

still on the cards. china's foreign policy chief says the shanghai stock rout is not the whole picture. we also hear why beijing's market reforms will be good for the rest of the world, and growing pains. say as finance ministers jump in gdp this year is not enough. arun jatiley saying the hard work is being done to make doing business easier. we are talking to him live later this hour. let us know what you think of today's top stories. the session getting underway in jakarta. we are having a look at what is trending at the moment. findingific equities themselves under a bit of pressure. zeb: they certainly are. this following that move on friday on wall street, overall concerns about the strength of the global economy weighing on investors' minds. that is why you see them taking

risk off the table. let's look at the jakarta composite. we do have some headlines coming from the government, that the government there seeking infrastructure projects across indonesia by easing rules. it will be interesting to see how that plays out and who gets the bid. also across south east, it is a day of declines. singapore down by 0.3%. we've seen the philippines moving lower 0.75%. theippine stocks having largest weekly outflow in two years. in malaysia, we are tracking the ringgit. the ringgit today snapping the longest run of weekly losses since 1971. shanghai composite seeing low turnover, still trading lower today, and the hang seng down by about 1%. certainly a much bigger move here. check out the movers to the upside. modest gains.

banks as well as oil companies leading. watch utilities as well. closely watching currencies today of course. we have the moves in the euro given the greek elections. we are tracking the yen as well. there is no train today in japan. trading will resume on thursday. rishaad: one survey that's not jumping on the china bashing bandwagon is the latest china beijing. it says the criticism is thoroughly divorced from the facts. what else did the survey find? booke: the china beige saying no collapse is eminent. the economy not as weak as they look. that may be just a myth. the new york-based survey counters a lot of noise we've been having about the health of the economy and criticism of how

policymakers responded to the turmoil. lloyd blankfein even called the handling of the market rout messy. beige book for the third quarter describes a mixed rather than disastrous picture and says, global sentiment on china has beer sharply bearish, too bearish. bloomberg sat down with the chinese state counselor. he says the stock market route does not reflect the health of the economy. here's his take on the yen devaluation. >> i think it's natural for the currency to move either way, yet it is a reliable currency, and more people actually do their trades in rmb, and i'm sure that the rmb will continue to play a very healthy role in promoting not only china's economy but the international trade.

we let supply and demand determine the value of rmb, and i think rmb generally speaking is quite steady in that. continue to dose reform in china in various sectors, including the financial sector. when people look back 10 years or 15 years from now and see that the market reform is really good not only for china, but for the rest of the world -- yvonne: china beige book points to a rebound in capital spending and strength in the services sector in china. that's very different in contrast with deepening skepticism on the economy and authorities' ability to steer appropriate policy. rishaad: we will have more on

that later in the show. do tweet us your thoughts. embracedk voters have the man who took them closer than ever to being forced out of the eurozone. alexis tsipras winning his second election in eight months. over to athens, where we are joined by a professor of law and economics at university of athens. thank you for joining us. let's start off with your view. how surprised were you by the victory here? surprised,very because after all, alexis tsipras won a landslide election in january. the momentum from this referendum was quite strong. rishaad: one of the things about this election was, after this profound tussle that we had with european union partners, why was

there such a degree of apathy when it came to actually voting? people, orthe greek at least something like 45% of them, see this like a scenario that has already been written. there's no difference in whether they are going to vote. actually, the only choice was for the person responsible to implement this kind of agreement, to implement this kind of scenario. that is why a lot of people feel disillusioned and decided to stay in their apartments and homes. rishaad: it would seem on the face of it that alexis tsipras has virtually paid no political price for him really having an about-face on austerity in essence. yes.tually,

because he's politically dominant. he's dominant internally, but he's mostce july, important. the big advantage that he has is that the old political system is totally discredited. actually, he leveled the playing field. he doesn't have any credible opponent. even the major party of the center-right, the conservatives, the new democracy party, there was no alternative to tsipras. for a lot of great people, alexis tsipras is the one who's going to implement this bailout touch,nt with a softer we say. his implementation will be lighter than the one that conservatives might have done. professor, can he

deliver? that's the thing. can he deliver to the satisfaction of his european union partners? that's going to be key here. actually, there's many doubts. wereirst seven months seven months of almost economic catastrophe, with a high level of incompetence in his government. however, he has to deliver as soon as possible. this october, we're going to have the first evaluation of this government. this evaluation is very crucial. money. a displacement of time, this evaluation will be crucial for the beginning of negotiations about some better deal. since this debt relief is really government has to deliver and has to deliver by

implementing some of the someday,measures, and one or two weeks after this landslide victory. rishaad: that is his challenge. thank you so much for joining us. just talking about the indian finance minister. he's joining us from the india summit. these are live pictures coming through. he's been talking about india having a large number of taxation reforms in the pipeline. a lot of people have been criticizing china for having retrospective taxation. he is one considered to be actually going to reverse. we are going to be talking to him live at 10:40 hong kong singapore time. decision onhe fed whether or not to raise interest rates this year is in the

balance. what does this all mean for gold? have a look at that when "trending business" returns in a couple minutes. ♪

are the stories making headlines around the world. croatian police say almost 30,000 migrants have entered the country since a surge started several days ago after hungary shut its borders with serbia, closing the northern route for migrants. u.s. secretary of state john kerry said there could be no solution to the problem as long as syrian president bashar al-assad remains in power. today pleased to announce that the united states will significantly increase our numbers for refugee resettlement in the course of this next year and the year after. to 85,000,g to go up

-- it is not a ceiling, it is a floor -- 10,000 over the next year from syria specifically, even as we receive more refugees from other areas. and in the next fiscal year, we will target 100,000. shery: china has urged japan to promote regional peace and stability after japanese

+++ widening the role of its military. the bill pushed by prime minister shinzo of a will allow troops to fight in foreign wars for the first time since world war ii. china's foreign ministry says japan must learn from history while south korea also called on japanese leaders to focus on regional peace. china and malaysia have carried out joint military drones in the streets of malacca, a strategic waterway through which 80% of chinese oil imports pass. a chinese destroyer and guided missile frigate took part, along with 1000 chinese troops. it's the largest ever drill in the country and comes despite tensions between the two nations over competing territorial claims in the south china sea. some fed officials are arguing that an interest rate increase is still warranted this year. what does this mean for commodities? a globals take is commodities editor. let's start off with gold. you've just come back from europe and they are saying, -- [indiscernible] >> what they were looking for is, should we start to buy gold now as a safe haven or diversify or? are we near a bottom? the same thing with oil. i think at the moment with the interest rates being on hold, it's probably a little more bullish on gold coming into

christmas than it was last time we were chatting. rishaad: the indian wedding season upon us as well very soon. >> seasonally, that is where characteristic -- from a chinese perspective, they are also buying gold. they need a bracelet, a wedding ring, a brooch, and a necklace. the chinese are starting to take the same path as the indians. not a bad time to be buying, i think. rishaad: does it have implications for the dollar? >> the other way around. rishaad: which one affects the other? >> if anything, the u.s. dollar should be probably sitting around current levels for now. nothing really to prompted higher, not a lot to prompted lower. if anything, we are probably seeing a tight trading range until further into the christmas season. --anything, it's probably

the seasonal perspective for gold, u.s. dollar, probably around tight trading rates until christmas. rishaad: [indiscernible] oil. we got this report from goldman, barrelit could hit $20 a and we could be seeing lower oil prices for the next 15 years. >> what ever was on, i'd like to be on it. a call of $20 is lala land. at the end of the day, you've got cost of production. if you think cost of production is going to continue to decline through technology that rapidly, i don't see it. even $42, $45 a barrel is a goodbye. what you saw a couple weeks ago, where in three weeks, it dropped 20%, in three days, it was up

24%. people are looking to buy it and looking for any excuse. rishaad: is it down to speculation? >> i think first up, it was a crowded trade. there's a lot of paper money short. on the other side of the coin, i think the physical purchases are building up. to be able to buy these levels is a once-in-a-lifetime thing for a lot of guys. look at the chinese. they will take whatever they can and put it in storage. rishaad: china is dictating what is happening with the commodities boom, which has turned into something quite different for australia in particular. >> it has. unfortunately, there's not a lot of good news in the economy aussies. for every fellow working on a mine, extracting either natural gas or iron ore, there's another four or five auxiliary businesses. if you lose one guy in mining,

you lose another four or five associated with that. that's not really helping. we tidy it up? it's going to be a big call. buying the china base metals in particular any time soon. they've still got plenty in stock. rishaad: so than what do you buy, if anything? >> i think gold is always a good buy. this time of year, maybe natural gas. as i said last time i was with you, sugar and coffee are still a good one. rishaad: the breakfast trade. >> i still like that. the prices are being pushed down far too much, particularly for coffee, considering what we're consuming. they are expecting a deficit coming into the end of the year. i think coffee probably looks the best. rishaad: you've got el niño. you've got also what some are

saying is one of the hottest summers ever, or hottest years ever recorded. >> that was on bloomberg recently. that's another reason why you don't want to be shorting food. thatare telling you weather is becoming extreme. i think you're better off looking to buy something with a relatively tight stock weather-related as opposed to trying to sell to those levels. rishaad: what do you avoid absolutely? >> what would i avoid absolutely? i'm always an optimist. ore, thenk coal, iron base metals -- rishaad: iron ore can't go down any more than this. it is absolutely pummeled. >> i'm always looking for something that's going to have that knee-jerk reaction, to attract people to buy. i always like, like i said,

coffee and natural gas. you can make a very good return very quickly on that, or you can lose very quickly on that. rishaad: thank you very much indeed, greg from global commodities. this is bloomberg. this is "trending business." ♪

>> we could have taken three and got a draw, but to have the win is just a fantastic result.

shery: these are the stories we are watching today. tianwei filing for bankruptcy. this comes five months after the maker of electrical transformers became the first state owned chinese company to default on an onshore bond. it cannot pay its debt and plans to meet bankers to discuss bankruptcy. tianwei drew global attention in april when it failed to pay bond interest and didn't get a government bailout. the company suffered huge losses last year, reflecting broader struggles in the solar and wind industries. another state owned esther prize -- enterprise is also likely to be the second the default after a local report said it plans to accept a restructuring request

from one of its creditors. china has had three domestic bond defaults this year. volkswagen u.s., says customer trust is key after it was exposed for cheating on u.s. air pollution tests for years. the german carmaker admitted fitting u.s. diesel vehicles with software that turns on full pollution controls only when the car is undergoing official emissions testing. the environmental protection agency estimates that during normal driving, the cars would pollute 10 to 40 times the legal limit. the violations could add up to $18 billion in fines, not to mention the justice department could pursue criminal prosecution. vw says it has ordered an external investigation, saying that regaining customer trust is key. there has been an offer for sharp's lcd business. that's according to the nikkei

newspaper, which says apple will also invest. sharp is forecasting is fourth loss in five years. it previously sought investment talkson hai in 2012, but broke down. sharp announced a recovery plan in may, including cutting its workforce. back to you, rish. rishaad: china's top diplomat. resident xi jinping's first state visit to the u.s. what will likely be achieved. we are seeing equities under pressure across the asia-pacific. 1.2% down on the hang seng. no trading in japan today. there we go. ♪ ♪

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rishaad: a look at our top stories. things are not as bad as they look for the chinese economy. it is a myth the country slow down is intensifying -- the country's slow down is intensifying. services showed strength. china's top foreign affairs official, all in the run-up to the president's state visit to the u.s.

he has told bloomberg the trip would bolster a relationship that has weathered disagreements in the past decades. policymakers argued over the weekend that higher borrowing costs are still warranted. normally, we would have the japanese lunchtime break. not today, there is a public holiday. onjapan returns to business thursday as they celebrate the national holiday. let's take a look at what is happening in south korea today. -- china andown korea trading partners. these are your movers. you have some significant share

moves in this market today. some of the other movers we are watching, samsung said to be offering a voluntary retirement program. let's take a look at that stock. kospi down about one point 5%. this is the intraday move. company.moves for that hyundai motors, concern about a worker walkout. they are planning limited strikes and wage talks. the stock down about 2%. hong kong and china, this is what we have. generally, a down day. index,g seng enterprises looks like industrials doing well. we have financials leading on the downside.

oil and gas stocks are the biggest decliners. take a look at some of these names. declining.3% we will keep an eye on the commodity space. the bigger picture, growth in china, the president's visit to the u.s. and the overall global story in terms of the fed interest rates. rishaad: betty liu sat down with china's top diplomat. president ist the hoping to achieve during the course of that trip. >> a lot can be accomplished during the visit. i believe a lot has been achieved in the china-u.s. relationship and we are building process of building this new model. visitill be a first state

by the president to the united states at the invitation of president barack obama. i believe the following three areas are very important. for the two leaders to have in-depth discussions following -- about the international situation, about our respective countries policies and about the future of our cooperation. to chart a way forward. be quite ahere will practical cooperation from the visit, what people call the deliverables. the president will reach out to the american society to build a

friendship between our two peoples. betty: the american public still has a mistrust of the chinese. a poll recently said 54% of americans view china unfavorably. how does the president plan to change that perception? the results of opinion polls very from time to time and from place to place. my understanding of american society is that there is a deep awareness of the importance of nurturing better relationships between our two countries. i believe that the american people attach a great 11 portents to the visit -- a great 11 portents to the visit -- a great deal of importance to the visit. the trade between the two countries has grown quite a bit

and there are more student exchanges between us. on the international scene, good coordination between china and united states from the middle east to some parts of africa, from afghanistan to the korean peninsula. a better relationship is in the interest of both of our peoples and the world. of course, a relationship cannot be free from any problems. even people sometimes don't see things in a common way. i think for countries, sometimes, they might have some divergence of views. differences in proper perspective, what we should try to do is to further enhance mutual strategy of trust

and to tap into the potential for collaboration between the two sides, be it the bilateral region or global. that is the purpose of the visit, to serve the interest of building a better future for mankind. rishaad: many other things that betty liu discussed with yang, from the situation in the south china sea to cyber espionage. you can watch the full interview on monday at 9:00 eastern time. tsipras will return to power in greece following victory in the elections. mackenzie reports on the challenges ahead. for alexisght

tsipras, tomorrow morning, he will be appointed prime minister for the second time. surprise. a big the polls got it wrong. a very low voter turnout. the implementation of the reforms must go hand-in-hand with the bailout. says he wills deliver a more fair and just way. assured, will be stability in greece. can he hold it together?

can he put through these reforms? there is a celebration here and a site of relief -- sigh of relief as they look to the future. australia's new cabinet has been sworn in with alcan -- malcolm turnbull making sweeping changes. scott morrison becoming treasurer. the 47-year-old fostered a immigration policy. china is making further efforts to shore up growth, calling for reforms to state owned enterprises. they need to increase efficiency and competitiveness by promoting mergers. china is still set to record its lowest growth in 25 years. isgapore commodity trader

ready to push the button on almost $2 billion of acquisitions. the chief executive saying slumping agricultural prices and a weakness in emerging market currencies, opportunities for investment. growth in as a sign the region will spur demand for higher quality food. more than $100 billion worth of alibaba shares have been freed up. shareholders will be allowed to sell the stock as of today. slumpeds market value 100 $30 billion since its peak in november. yahoo! is the biggest investor that has not pledged to keep its holdings. this is "trending business." we will be back in a couple of minutes. ♪

alexis tsipras will return to power in greece following another election victory. he managed to secure a new mandate despite a party rebellion. his party received just under 36% of the vote. is expected to get 28% of the vote. he will try to build the government with the same coalition partner as before. adopted a new secular constitution almost 10 years after the end of a long-running civil war. the president made the proclamation announcement setting off a roar of applause from members of parliament in kathmandu. thousands of people who gathered outside the assembly building cheered and waved the national

flag. some religious groups protest the document. pope francis has met with fidel castro on the first day of his cuba trip. the vatican described the meeting as informal and familial. an exchange of books and a discussion of issues facing humanity. he urged cubans to serve one another and not an ideology. rishaad: another look at volkswagen. they are winning back customers trust, and that is key. what do we know? shery: new challenges. rishaad: it is about the, software. shery: the software, vw has

admitted it turns on full port pollution -- full pollution controls when they are undergoing emissions testing. conditions, driving it could pollute 10 to 40 times more than the legal limit. these violations could add up to $18 billion for vw. the justice department could seek criminal prosecution. vw is saying they are launching this external investigation to see what the case is really about. rishaad: what about the drivers? they were meant to be environmentally friendly. shery: they were meant to be clean diesel engines that were not so. used inne is commonly models such as the gulf, jeddah, -- golf, jetta.

you know, he is taking this all very personally. fresh out of this bored room bust up with his former chairman. this one seems a bit of a tougher not to crack. shery: you have to convince u.s. consumers you did not do anything wrong. it is a pretty messy situation. he is coming out of this fresh battle with the former chairman and this scandal hitting days before vw's board meets in order through his contract 2018. analysts saying, he was the ceo and he is in charge of development. either he knew about it and he hid it or he did not know about it. rishaad: did not know what his

developers were doing. that is grounds for any politician -- shery: he is saying he is personally sorry and he just released a statement saying he will do everything necessary in order to reverse the damage this has caused. this is a first priority for him. no way to putis an optimistic spin on this. rishaad: a multibillion-dollar payment in fines, damage to the diesel market share, and pariah status in the u.s. with the government as well as customers. rishaad: audi has had a rough time of it. anyway. thank you very much. chatng up, burberry snap

campaign. ♪

rishaad: we do not have inequities session in tokyo. ¥119. cve a look at the 71 u.s. ent level. a little strength coming into the dollar. singapore, let's look at their dollar. skies and the singapore dollar, one dollar 40 cents.

let's take a look at what is moving when it comes to these markets. >> a downward move for the asia-pacific index following on that lower move on friday. tradingmost markets lower. sydni down by 2.5%. that is the market you want to watch today. we are tracking sydney airports. a strike by border staff. shares, media related seven groups moving today. bariumcommodities space, limited.- arrium macau casino analyst capitulating on the idea of a second act recovery. take a look at some of these

names in the hong kong market. galaxy entertainment, down by 1%. lower.holdings trading sydney, we are tracking news corp.. there is an interesting report that the president of china tells rupert murdoch that china is open to media. let's take a quick look at what else is moving. i mentioned sydney airport is down in this session. thoseina holdings among macau casino shares. that is a snapshot of australia and hong kong. the shanghai composite is down as well. right now, it looks like we have

some rotation in the shanghai composite. this market often goes against what we see in hong kong. shanghai is up and hong kong is down. we know that all too well. rishaad: china's top foreign affairs official saying the decision has nothing to do with the government's devaluation of the yuan. the state counselor said market forces determined the value of the currency. >> we let supply and demand determine the value. it is quite steady and value -- in value and we will continue to do reform in china. including factors,

the financial sector. when people look back 15 years from now, they will see the market reform is really good not only for china, but for the rest of the world. now -- fromnths for now, will the rmb be lower in value? natural for the currency to move either way. it is a reliable currency. i am sure it will continue to play a healthy role in promoting china's economy and the international trade and investment and so on and so forth. eddie: some have speculation -- y: someve -- bett have speculated -- does that

influence the government's decision on the rmb? >> these are two separate things. of course, we have had good imf, andon with the for that matter, with 80 be. -- adb. this cooperation to continue. i do not think there is any connection between the current situation in china. betty: were you surprised by how the markets reacted to the devaluation of the rmb? >> every country has its own challenges and problems. every country should do a better job of their economy. their ownuld mind business. >> i do not mean that. the chinese economy is a big

one, but it is not that big. there are many players in the field. their economic performance fundamentally has an impact on the behavior of the financial market and the difference between china -- the chinese stock exchange and the stock exchange of many western countries, there are far more institutional investors in the west and of course, there is always room for improvement for anybody. will takethat people a calibrated approach to what happens in the financial market, wherever it might be. people should be respectful to facts and to be fair.

china is a positive force for economic growth and will continue to be. rishaad: that is it for "trending business." ♪

"asia edge." is a look at our top stories, asian shares following -- falling along u.s. equity futures. divorced from the facts, a private survey says china's worsening slow down is a myth despite the share market plunge and the currency devaluation. china'she wall with

foreign policy chief. comeback, all is forgiven. greece reelects alexis tsipras. india's spot for asia, finance minister says new reforms will make india a beacon of economic growth in the region. we are going to speak live this hour to arun jaitley. japan's growing problem with ghost towns. it could leave up to 20 million homes vacant. all that and much more on "asia edge." a down day across the asia-pacific, stocks trending lower in most of the major markets. isnghai the only market that posting some upsides. some