sales and revenue. a banking bazooka. stockpile bigger than that of the fed, e.c.b., and bank of england combined. >> also this hour, the road ahead. china's party elite wrap up their meeting in beijing. we are expecting details of the next five-year plan. a burning issue, the smoke from the legal forest fires sees indonesia becoming the world's worst polluter. it is affecting china and the u.s. -- surpassing china and the u.s. brainstorming for baidu. we have an exclusive tour of the incubator driving innovation for china's search engine. that report and much more in today's edition of "asia edge." >> keeping an eye on the markets on a day when asian stocks are paring their biggest monthly advance in six years. the yen up-to-date on the surprise in industrial production. and the wan leading losses among emerging market currencies.

u.s. stock futures declining. here's how asia looks. you're seeing a mixed trade across the region with some southeast asian markets coming online. thailand as well as vietnam both up. shanghai unchanged but hong kong remains lower. we are following financials as well as banking and energy related shares today. remember, we have petrochina company results after the market sees the shares advancing. in the australian and new zealand markets, we are watching the currency after they left open the door for possible easing and in the wake of the federal reserve decision we see commodity currencies and higher ers falling today could the dollar advancing on the back of that fomc decision, leaving the scope for a possible rate hike in december. in japanese markets, we are seeing shares lower in the lunch break. we will be back in a few moments with the japanese movers. rishaad: one of the big movers

in tokyo, nintendo shares down the most in nine months after the company said its new smartphone game will not be released until march. we get more on this from grace. app, wehis new game or were told it was on track and it does not seem to be that way anymore. >> actually, there was a lot of expectations after yesterday's earning announcements when the new president said he will have more details for the smartphone games coming today. everyone is surprised they are going to delay it. they said they would release the new game by the end of the year and then delayed until next march. one of the reasons the president gave to reporters this morning smartphonel launch a or device-based membership

service with the timing of the smartphone game. in order to enrich the user experience, they are delaying until next march. in the new membership service, users can register using your facebook or google account as well. they are trying to draw more people online using smartphones to nintendo's games. that is one of the reasons they are saying they delayed the launch. rishaad: you mentioned the earnings. how are they? they announced earnings yesterday. they're operating profits during the past three months was below bloomberg analysts estimates. of $7.8t was a profit is what the which

first-half profits in the last five years. there are some positive signs for the market. before they announced the delay of the smartphone game, the stock price was up 2% at the opening of the market today. followingixed news the earnings announcement and today's announcement of the delayed smartphone game. rishaad: grace, we have new management. doing on shares are the announcement today, are there questions about the new management passing muster? >> yes. far, he has only been in charge for less than the year. there have not been many decisions made by him. so far, he is in fomenting the management -- implementing the management plan decided before he took over.

there is a lot we still don't know. the first thing is to see whether he can implement those management plans. grace, inhanks a lot, tokyo. dug intog electronics its deep pockets and pulled out a surprise for investors. it announced a buyback that sent shares up as much as 5%. was it enough to offset slightly disappointing results? david is on this for us. when you reported numbers this morning, it looked very disappointing until we got the surprise from sense on -- samsung. >> they came to her three minutes before the markets opened. i think it is using 30-50% of its free cash flow. i am not sure how much they are touching from what is on the bow sheet. $10 billion buyback. they will do it inasmuch as four rounds. the first round, we do know details of already.

i think they are buying back just over $3.5 billion. they will be bringing that back into treasury shares and canceling it altogether. the third point on your screen, is also in the mix. at the quarterly dividend meeting starting next year. let's get to the results you talked about. trillion based on the exchange rate when we had the graphic made. [laughter] david: it is roughly about $45 billion u.s. profit for the four businesses. net income, $4.6 billion, which i should note is less than half of what apple reported yesterday. that is a different business altogether. samsung has its hands and many other things apart from mobile phones. >> like the world biggest chipmaker. is whatle phone space we are interested in as well. david: they were able to hold

onto market share. they came in a little lower than last year. there webout 23.8 -- go. 23.8%. i made the graphic, so i should know this. apple was just over 11% this time last year. the big one year was falling. >> let's bring in the bloomberg intelligence analyst. good for you to join us. what implications does this have on samsung group's restructuring? that had been in the works for a while. this comes as a huge surprise to investors. as you mentioned, the share buyback is huge, roughly 5% of the total shares outstanding. if you look at the share price response, he came down slightly from the maximum gain this morning. that 5% is enough to push the upre price 5% up-to-dat --

today. some people question the management. are you planning to merge? that is what we talked about. they keep saying no. the suggestion they are doing this huge share buyback to boost the share price may signal they may have something else in the pipeline. a lot of people are speculating management wants to depress sense on -- electronic -- samsung electronic's share price to make the inheritance to the next generation cheaper. cheaper inheritance tax or they can have a better swap ratio. they are telling the market we are not there yet. were not trying to depress the share price for the transaction. david: near term, what can we

expect from sense on in the next quarter -- samsung in the next quarter? it may slow down in terms of earnings. we know components would be slower. applesow how competitive new iphone model is. coming out.w model , others of the specialty vendors have everything. it is very challenging indeed. >> they are trying to scramble and get back to the top. a lot of obstacles as you have outlined. thank you so much. in other news, they've beaten estimates. the operating profit topped forecasts by 2.4% at about $175

million. the company was under pressure because of lower-than-expected revenues from the messaging service. they were delaying lines saying it would wait until market conditions improved. they were looking up nearly 3% in seoul. earnings are looking more distant. international operations posting the biggest loss in four years. they put it down to a slump in trading and because of the settlement of a lawsuit with an italian bank. near for hundred $80 million loss last quarter will be putting a dent in profit from overseas this fiscal year. despite that, overall net income smashed estimates thanks to a jump in investment banking income. spendingalian group is $100 million on 20% of the high-end restaurant chain nobu. crown says it sees the brand complement thing its own luxury entertainment image.

james packer will be nominated to join the board. willemaining 80% of nobu be held by existing owners, including actor robert de niro. at the moment, we have angela merkel arriving in beijing a short time ago. she is greeted by the premier. he is coming out and talking about what china needs and what china is likely to grow like. he says china needs to grow by six .53% -- 6.53% over the next five years each year. that is for them to get up to their goal of being a medium income economy by 2020. that is what we have at the moment, coming up with the growth figure of 6.53% each year for the next five years. saying they need to do that, not saying they will get that. just saying they need that sort of growth. japano a growth story in and how to get there.

we are expecting a great decision from japan tomorrow. the bar may have been raised by today's surprise increase in factory output. industrial production jumped 1% in september. we have bloomberg news chief asia correspondent joining us from tokyo. what is the outlook for the boj? mixed because the bank of japan has been dealing with a mixed set of data in recent months. quite negative on one side. exports soft to the point where some economists say they would not be surprised if the economy slipped into recession last quarter. as you say, we have the wildcard this one which was industrial production better than expected. that is one economists feel may tip the balance in the debate. it is a close call. there is not consensus in the market on which way the bank of japan will go. one said the soft economy needs extra stimulus to wrap things up. another side says it is not down to the bank of japan.

maybe push it over to the government. it is a very mixed call on the bank of japan tomorrow. >> what are the options? array of tools in their toolbox. they could look into expanding the government bond buying program which they have been doing for some time. they have other options to expand purchases in the e.t.f.'s . according to one bank, they could buy stocks directly. if they do take action, all of that will raise concerns about continuing to swell their balance sheet which is getting bigger and bigger. that raises concerns around sustainability and the risk of losses on some securities over time. the bank of japan has options. i think they will be careful in terms of how they will proceed because they will be watching their own balance sheet. >> thank you so much for that out of tokyo today. later,: coming up

chancellor angela merkel promoting germany's industrial strength in china. among her entourage, the ties -- matisse mueller. we will look at decisions around the world of the fed to the boj. do stay with us. ♪

>> checking some stories making headlines around the world. china and the u.s. will hold talks today in the growing tensions in the south china sea. beijing was infuriated when the ship close to disputed islands. america said it was to spend -- defending freedom in international waters. china denounced the mission is a threat to peace and national sovereignty. the heads of the two navies will talk by videoconferencing later. iran has underlined its growing

influence by joining talks on the future of syria. the foreign minister will be in vienna tomorrow at the invitation of the u.s. iran has backed president bashar groups, against rebel some of which are supported by saudi arabia. years of fighting has sparked one of the biggest refugee crises in history. hundreds of thousands of people are either integrate camp's or seeking a new life elsewhere. fever president says the decision to award the world cup to russia was taken before a vote. he said a discussion took place in 2010 to give the tournament to russia and the following want to america. however, a late swing and support from europe sent the 2022 cup to qatar. he also says his suspension over irregular payments is nonsense and fifa's ethics committee has failed. athaad: we are having a look

what to do with your money. great to see you. let's kick things off at the fed. a hint it may be december they are looking at. it is not that clear cut. why move anyway? >> the fed has been telling everybody they will raise rates for 15 or 16 months. rishaad: they will have to at some stage. >> at some point. in september, they had a dovish meeting. we had a big selloff in risky assets. the following two or three weeks, we have five or six fed officials stating how the economy was ok and there was still a possibility of a rate hike before the end of the year which would stabilize markets and caused a huge rally on wall street. we the fed is again saying may raise interest rates in december. rishaad: that is no different to what they have said before.

but suddenly, everybody seems to think it is something that. >> the market is trying to look for positives which are not there. i did not see any wording which says they will definitely raise rates in december. if you look at the economic data, the data is weakening, not getting stronger. new housing starts fell to almost a 12-month low. economy is contracting in japan. all over the world, things are slowing. commenced things are getting better, they will raise rates in december. but i don't think they will. rishaad: you can talk yourself into a recession. maybe you can talk yourself out of one. >> we have been dealing with this problem for seven years. we had the global financial crisis in 2008. for the last seven years, the central banks have thrown everything but the kitchen sink at this. they have cut rates to near zero, held it at zero, stimulus on stimulus. whenever the market corrects 10%, they say they will announce

more stimulus. we have had intervention by the fed which has done a u-turn on policies since september. draghi talks from mario saying he will ease more before december. you have effort by three central banks to create this level on wall street. the market is more important. it is still very weak. i would be surprised we make new highs and go to new highs. rishaad: this is the trials interrelations of being the world's reserve currency. -- this is the trials and tribulations of being the world deserve currency. >> it is counterproductive for the multinational companies. they derive roughly 40% of revenues from overseas. i would be very surprised if they do ease -- raise in december. i still think there is too much weakness. they should have raised a while ago.

economythink the u.s. once a 0% interest rate. but we are where we are. i would be very surprised if they did increase interest rates before the end of the year. rishaad: great to see you. you will be back for our group discussion in about 20 minutes. >> indonesia struggles to get its forest fires under control as the environmental cost mounts. we have the latest on the crisis next. ♪

indonesia has leapt the top d table onluters' lea the back of choking forest fires. thoseco2 emissions exceed of china and the u.s. combined sparking angry reactions from folks next-door. live we go to our south east asia correspondent. this is unwelcome news for indonesians, certainly for neighbors ingapore. >> you back. it has been devastating. indonesia's co2 emissions exceeded china at least two weeks in the last two months. they exceeded the u.s. four weeks out of six. that is according to data bloomberg compiled from the world resources institute. fires have been raging for several months now. hectors aousands forest destroyed -- a forest destroyed not to mention the

effect on people's lives and canceled sports. adonesia is doing this at time when most countries are set to sign a new agreement to stop global warming. climate analytics call to unrestrained deforestation. indonesia is sending a bad message to the world, a signal countries can get away with it without any real constraints or consequence. >> the fires have been around for years. is this year particularly bad? >> well, somebody described it as catastrophic for the climate. recordsook at satellite that started in 1997, this would be the second worst year for indonesia. 1997 was the worst. the world resources institute says the fires could add 3% to global greenhouse emissions this year.

the smoke comes from illegal fires to clear land for farming and plantations. most fires are on the islands of sumatra. what is burning is mostly peat accumulated over thousands of years. it will not regrow. such a shame. in neighboring countries, we just want the haze to go away. >> yeah, you can say that again. breathe safe. it is hard to say that these days with the fire still breathing -- burning. thanks for that out of singapore. and tokyo, investors have been looking ahead to the boj. the latest, coming up. ♪

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