have -- china. nike's new-- playbook, it is their best year ever. you can always check me out on twitter. and across the board -- >> indonesia is not helping things. starting things down. in the jakarta composite. ending the week on a sour note, but we did see good stuff for equities. this signals a more clear sign that the december rate hike is in the cards. volume down 30%. not looking at too much activity on friday. we are looking at gains --

shanghai stock up a third of a percent. it said it would start to lower down short-term borrowing costs for banks, this is the latest step in preventing sharp fluctuations that we see in the money market. also, the bank of japan, the governor speaking later on this afternoon. malaysia's expecting cpi and malan's export orders to come out. and we did see overnight in the u.s., united health threatening to exit the affordable care act. that was a big hit. this is for primary health care. and the australia stock down, this is due to margin compression and revenue environment. this is a japanese company down about 1%. tellas is down.

continued uncertainty is seen in clinical trials for that pharmaceutical company. and it talking about the ipo watch in hong kong, talking about them not having a good trading debut. i have them placed on the low end. i think it is 4% down. another ipo we are watching today, a hospital in hong kong, .hat is up 21% this morning that is china's largest psychological -- psychiatric group. rishaad: police have smashed down some baking schemes -- banking schemes. this includes money laundering. steve engels looking at this

story, what do we know? authorities say that they busted china's largest underground banking case, that has involved transactions worth $410 billion -- 64 billion u.s. dollars. they are reporting a joint forces involving police, the central bank and the foreign exchange administration have crackdown on several underground laundering cases since april, 125 involved more than billion u.s. dollars in transactions. some underground banks made a profit from transactions on short and others assisted transferred from accounts for clients. they also report that police in fujin province have broken up thee underground rings.

ministry of public security saying that some $3 million was transferred to china from saudi arabia, in a case involving $15.5 million embezzled by an unidentified executive at an enterprise. this is under investigation. these are some of the facts that we got on the daily report, saying that 100 suspects so far have been detained since last year. some of these, according to the police, some of these are tied to a ringleader that they just named, jao. we need to find out who this mr. jao is. rishaad: ok, a look at that story throughout the course of the program. we want your opinion. nike has a multibillion-dollar buyback scheme, looking at

stocks, what is their master plan? >> it is a four-year plan, $12 billion stock to repurchase. they say it will come into effect when the current buybacks are done. that is likely to be at the end of the current fiscal year, around the end of may. it will be in coming months in 2016. of the company announced that it onl be at 100% dividend april 23. stocks are becoming rare these trying to make it more affordable. these days, above $100. stocks are rare, but nike has been decided to do this this time. it has been a very profitable year. the net income rose at 22% to

$3.2 billion. add $5.9 billion in cash and short-term investments at the end of the last financial year. they say that they will continue doing well, forecasting an increase of 16% in annual sales to $50 billion by 2012. that is because the women lines are doing very well and also doing well in leisure wear. rishaad: thank you. and other stories. heidi has a roundup beginning with events in france. that is right. the paris prosecutor says the alleged leader of the terrorist attacks last week was killed on wednesday. his body was found in an apartment and he was identified using skin samples. he was belgian and was linked to a failed attack on a high-speed

train in august. and new antiterrorism measures by belgium to secure -- in security agencies. they briefed parliament. and the french president has ordered more airstrikes against the islamic state in syria and iraq. they also cemented a resolution to un security council's to condemn terrorism and hold better efforts against militants. w has beenand -- v told by the u.s. to make sure that cars meet standards. state regulation in california and federal watchdogs will be beating with vw over the recalls. several lawmakers have called on vw to buy back the models that need recalled. elsewhere, they are pushing back inns to a joint venture

china by 2-3 years. it has been in talks to raise the stakes in china for more than -- for a more balanced 50-50 structure, but because of this scandal, they could run into the billions and it could force of the w-2 delay the expansion. they have spent over $7 billion to fix these engines. they expect that to rise. and shares of new kids on the block surging. this is causing something of a shutter in the public offering market. both going on the high-end of estimates. close.was up 45% by the weak initial pricing's, especially for square, shows more evidence that investors are questioning these unicorns, , money intoluations

technology companies that are still private at the moment. back to you. rishaad: a look at what is happening on the website. looking at morgan stanley's view on growth in china. you can go to bloomberg.com for more. gloves are off, looking at the business of mixed martial arts in the asia-pacific. we have a report from uncle leo later. and sentiments, how the changing behavior of chinese investors is moving global markets. we will hear from an asset manager: back in two minutes. ♪

rishaad: our next guest is one of the largest asset managers in

china. he focuses on high network clients. kenny lang.ome we will start with is underground banking scam, being busted their according to state-run news agencies, what do you know about that? change in the approach of the chinese government. they are trying to be more stringent in repertory approaches, trying to be more constrained. the same thing, coming in to look at what we do. i think it is a great thing for the economy. the great thing for the markets, for them to understand that markets can grow and for them to understand that you need to have rules. rishaad: there are some rules, you cannot buy, you cannot short them, what are you going to do?

this is an environment that you have to deal with, so how do you get there these muddy waters? >> it is a learning process. at first, we were trying to understand what the record was to do. you know, over all, it is going in a positive direction. rishaad: talk to me about how the chinese customer, the high network customer that you have is you've all been. -- evolving. >> two things are happening, the and chineseation investors are shifting out of china. they are looking for global underlying assets, u.s. exposure. and it is changing. they are looking to preserve flow, they're not looking to grow as much. rishaad: protecting what they have. >> they want to make sure it is protected and they want to make sure that they have a diverse kind of asset. deleveraging, and they are

trying to understand that beyond the secondary market, there is an interesting market out there good for investments. rishaad: this is the reason why you are growing the business in hong kong, as you mentioned, the dollar is underlying assets, that is why the business has grown fivefold. i have to ask, this is one dollar to five dollars? >> we started with 25 people, now around 85. business is growing for two reasons, one is that the chinese are moving assets outside, and now there is a lot more opportunities. they are trying to attract money from china, so i think those two things match. rishaad: do you think that chinese brokerages are feeling a void as a lot of european banks retrenched.l

>> i think that there are chinese managers who would be better, in terms of providing proper investment opportunities. i think that the european and american players are doing well in the offshore markets, but i -- but i think there needs to be a network in china to understand them properly and that is why we see outgrowth. rishaad: where are people looking, what is attracting? people many in america think that next year will be great, but still looking for dividend plays, a search for yield and private equity as well. >> basically if you ask me the same question three years ago, they're looking for double-digit returns. in this environment, they're looking for stability, liquidity and a mix of secondary markets. you have clients seeking primary

markets in u.s. and enterprise software sectors. in europe as well. there are a lot more -- they are a lot more selective, but are willing to be exposed to wide-ranging assets. rishaad: what is it the mandate that you usually get, single-digit, where? you want to be diversified, you want to be in dollar-based assets as well. >> we usually get about 5-10,000,000 dollars and each of that mandate is unique. usually, that is around the exposure to a truer market, naturally the u.s. and europe. also some seek pan asia on the pared it maykets tend to be a lot more sophisticated, willing to take risk under a cost. --haad: you have $83,000 82,000 investments from these in the books. how much more mature is your

individual investor? >> one is they would not even talk about the u.s. dollar five years ago, they would be focused on the domestic market, the return is that much higher. and there's a lot more seeking in terms of education. they are looking for education on investment philosophies, they to school, to understand how to invest. and i think there is a lot more interest in other classes, not market. secondary they are a lot more open now to global markets. question,inal everybody thought that the shanghai stock connection in hong kong would reduce the premium between asia and --, that has not happened, it has gone wider. what will it take to bring those two together? >> you need more participants.

currently the chinese stock market is very retail driven and for that to happen, you need to have a lot more institutions from china investing in the hong kong market, that will take time. rishaad: thank you very much, kenny lam. >> the stories making headlines. in australia, assessing damage after a powerful bush fire. and for people, including a local farmer were killed. media reports saying that two young women from norway were victims. and another fire in victoria as the heat wave moves ease. temperatures in sydni will reach 41 degrees celsius. died chinese stock broker when he crashed, causing a dramatic explosion and fire ball. at the chemical tanker managed

to escape, but it took 60 firefighters to extinguish the fire. traffic deaths are falling in china. unearthing the largest diamond in more than a century. this is about the size of a tennis ball, wayne 1100 carats, second only to the centerpiece of british crown jewels. in july, a stone about a quarter of the size fetched $20 million. rishaad: up next, a new day and a new summit. we will be looking at the conference in kuala lumpur. stay with us.

♪ you are watching "trending business" and here is a look at headlines. with a raising dividend by two cents a share, they say that the business does not depend on pcs for growth. the biggest semi-conduct or maker is losing money, however the entry into new markets will make up for that. they are growing in the low single digits. bonuses for branch staff,

wanting to rebuild the banks at rbs. they will be scrapped. salaries it will be raised by 5%. singapore airlines winning approval for a $20 million -- already earning more than 55%. they wanted the least listed -- de-list. current shareers price. the -- concluded in manila and it looks like summits never stop. it is now the asean summit as leaders head to malaysia, taking stock of the progress toward greater economic integration or lack of it. inwill take a look at this singapore, looking at the

significance of the summit. >> believe it or not, it is significant, it comes just before the launch of the aec. we are talking about a single market for the asian economy, effective december 31. it brings with it lower trade barriers, better mobility across borders, all with the hope of competing better with larger india.rs, like china and hopefully, this will boost the drive to put the final touches, a great deal of negotiations and there is a lot of skepticism. cimb and the chief are frustrated, they say that there is a lot of fencing around capital, data, people and technology. and they are not happy. having said that, whatever the

flights, many agree that this is a step in the right are compared a single market, 600 million people, a rising middle class. prosper thy neighbor. rishaad: ok. some of the trading partners will be there, what is on their minds? obama,names, president other prime ministers, they will be flying in, most of them already. they will be focused on security issues, the korean peninsula, the threat of terrorism. they will be talking about fighting terrorism together, how they can share information. this has become more urgent after-tax in paris -- attacks in paris. talkrs have pledged to more about how finances go to

terrorist groups. they talk about local fighters returning from syria and iraq, terrorism. rishaad: that is what will be on the agenda as the leaders embarked on another summit, the asean summit. next, we are going to be looking at what they want for wages in taiwan. mrs. one trending business returned -- this is when "trending business" returns.

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the bankers joined forces for the crackdown. legal --part of a illegal transfer of funds into account. and nike announcing a $12 billion buyback scheme that will take effect after their current buyback is complete. they will be boosting their dividend by 14%. they are up 30% so far this year. a look at the market. just closingpan out in about an hour. we will be looking at the appetite of investors. >> i think they have more of an appetite for lunch. they are down a half percent, they are posting losses all morning. toexpect the bank of japan

be speaking later today about the prospects so far. and keeping policy unchanged. overall, things look like a mixed bag. the benchmark is down, overall, the equities have been positive. we will end chinese stocks on a good note. a 1.4% climb this week. and text stocks really pumping. the taiwan market is up. seen in the china market, they are holding well with volatility declining, rising margin in debt. that is what the government measures. the equity market is paying off somewhat. there was concern about those markets being introduced. this could help with valuation. going through some movers. about the merchant

marine, this is the biggest mover on the asia-pacific index, -- 17% up. talks that north korea is proposing a meeting with south korea. a jointchant marine has operator, giving towards in north korea. tours in north korea. and the tv operation unit sharp is looking profitable. share saleoking at a offer. a lot of pressure. and with santos, down 4.62%. rishaad: and police have smashed an anonymous underground banking -- enormous underground banking scheme, steve, what do we know?

>> the news agencies have reported this, authorities there say that they have busted this largest underground banking case involving transactions worth dollars,billion u.s. about 100 suspects detained since september last year. all tied to this ringleader name zhao. we don't know anything about him, just his surname. rishaad: probably a lot of them with the that surname. >> this involved the central bank and the foreign exchange administration, they have crackdown on several money laundering cases since april, billion inbout $125 transactions, basically a legal profits -- illegal profits, on shore and those involved with

money transfers. we have a separate story, probably part of the same crackdown, saying that police have cracked a banking ring with transactions at about $2.5 billion, involving $3 million of illegal transfers from china -- to china from saudi arabia. it is starting to get detailed. an --ney embezzled by unidentified executive, this is definitely a case under investigation by the communist party investigating body. this is interesting. rishaad: we are talking about the possibility of a ponzi scheme that kind of links into this. >> yes, in a way, this is how companies use borrowed money to pay off interest on debt and we are looking at as the slowing economy and china increases, companies have diminished

profitability, they cannot pay interest, we have seen six defaults already. some economists call this ponzi finance because they are dipping into pools like shadow banking, to borrow to pay all short-term liabilities. we have a chart. loans, the amount of bonds, shadow finances arra nged. they believe these will rise. it could go to record highs. rishaad: as the economy goes down, cash flow goes down as well, so you need to get more money and borrow it to pay off existing liabilities and that is the problem. >> that is the problem, no matter what the financing, borrowing, corporate barring, -- borrowing that is down.

just this week, a steel company is postponing their interest payment, so there is pressure on particular companies that are overcapacity and do not have cash flow. rishaad: this is a developing story. this is that underground banking system under investigation, being smashed. and checking on other stores. the bank of japan talking about high wages, the governor said that inflation will not rise unless salaries do as well. they are stressing the need for japanese companies to raise spending. >> i am aware that capital spending fell in the third quarter and machine orders turned negative, however, that fall came after four consecutive quarters of growth, so we can still say the leading indicator is on a moderate recovery trend.

many companies should have revised plans, pain close attention to risk factors. even if we see in the late, i expect -- the way, i expect that capital spending should grow strongly. rishaad: and wages on the agenda for taiwan, the president, ma ying-jeou, looking at raising salaries. are shifting back into china there, but talking about devaluing the currency to help the economy. and it never is there with us in taipei, the president pushing down the currency, even though the data shows exports are not going well. why not? says it is nott the preferred policy and much more preferable would be upgrading domestic industries

and making sure that they are moving up the value chain. lowing at models and margins, this has been a centerpiece of his presidency so far, he only has about x month 6 months left, he cannot run again. and he spoke to us in a sitdown interview about why that was such an important part of his trade with china and his term. more and more people understand that while china is not very friendly to us politically, the economic one is not something we can end when we want. globally, no country can ignore china. you may not like their roles or support their undemocratic

practices, but with economics, this is a very real reality. we should not put all eggs in one basket, but we cannot not put any eggs in the china basket. cruel reality he calls it. the interaction with china, the idea that is taken for granted everywhere else, except for here in taiwan. rishaad: deborah, the question is, we have the president with ,is historic meeting with ping he is making some progress you could argue. submitertainly wanted to the progress he has made in the last eight years in terms of trade, he did receive, believe it or not, international response to this meeting and even the u.s. praised it as a

positive step. he received domestic criticism for not emphasizing democracy enough to the chinese. here is what he said. in my meeting with mr. xi, i had the opportunity, i would remind him that this is what the taiwanese value and hopefully it would close the gap tween us. with 6 months to go, the president was sitting down with us and remaining hopeful that china can change and they can take steps towards a more democratic future. rishaad: deborah, thank you very much. up next, follow the money. week special,ness

when we return.

♪ >> stories making headlines. the u.s. regulated -- regulators have approved the first genetically modified animals for human consumption, salmon. aqua bounty technologies have fought for years for approval. the sammons -- salmon will be grown in cities, reducing cost. they will not be labeled. the fda says if consumers want to avoid it, they should choose wild caught salmon. despite being barred from the presidency, -- has begun talks about the transition of how were after a landslide victory. she believes a former general

with which she had had close ties -- the head of the army. and the apex summit has wrapped up in manila after talks about trade and terrorism. in their final day, they denounced attacks in paris. they vowed to stop terrorists. they also say that economic growth and opportunity are powerful tools. rishaad: the attacks in paris have raised questions about the west and what they can do against of the islamic state, one of the richest groups in the world able to fund their own operations. we see exactly where the money comes from. >> obviously we talk about oil, when we talk about how isis gets money, they have resources beyond oil, it is staggering.

the taxes they collect, they put taxes on everything. >> how? >> they collect from the millions of people in their territory. this is the problem. you cannot stop them from generating money on their own territory that they control, they control 8 million people, it is impossible to keep them from raising funds. he cannot starve the obama -- the islamic state without starving the residence who lived there, so it is difficult for policymakers to take a stand in the money machine. i think one thing people are focused on, the oil, where we could have probably made a better difference, we have seen since the attacks in paris that the obama administration miscalculated the damage we did a year ago during airstrikes against the oil infrastructure, by $400 million. >> so the u.s. said we did a lot

more than we actually did? >> they said a year ago that we bombed the oil infrastructure down to about a $100 million operation a year, but after a againstmay, this is isis in deep enemy territory, they got records and found out that they were wrong. not only was the revenue so much higher than what they had dreamed of, we had done very little if any permanent damage to the structure. now they say quietly, after the paris terrorist attacks that isis is making $500 million a year from oil alone. that is a $400 million miscalculation in favor of isis balance sheets. one thing we saw, the pentagon line of tanker a

trucks, that was the headline. it could have been, why are the 116 tanker trucks lined up to buy oil from isis? we have done so little damage, because it is so hard. >> what is the next step? if forces want to take this matter into their own hands, what, do you look at money through banks? do we know how it is -- is a transparent? >> it is almost impossible. i think that they sold this politically as a war on isis finances, because nobody has the ability to conduct a real war on isis, sending in ground troops. so they have to attack it from the edges, they do not need the international banking system. they have 90 banks in iraq, they got cash out when they took them

over. if you look at the defense tank innt and the think the united states, they know that they are running at a surplus right now. they have virtually no expenses, virtually. they have to pay fighters and that is the primary thing they care about. they are not building infrastructure for the long term. they don't really need long-term infrastructure for the apocalypse. i do not mean to make light of that. we need to stop looking at this issue through our eyes, look at it through their eyes. they are so well-funded it is like asking, why have we not stopped the drug trade in the u.s. and europe? that is territory we control. there is so much money at stake, when there's so much involved, so many players, it is really difficult to even make a dent in let out what alone -- in,

alone, choke it off. rishaad: we will get -- you can get all of the top headlines on bloomberg.com/asia. next, a brutal business and it is booming. looking at the popularity of mixed martial arts. this is "trending business". ♪

♪ you are watching "trending business". of the topme stories, square, this is the payment company cofounded by jack dorsey. it made a strong debut on wall

street, closing 45% higher, giving it a valuation of $4 billion. they are going to use proceeds for corporate purposes. square should continue to grow. dating services, ok cupid, match.com, strong debuts. they are raising almost $400 million in the ipo, selling millions of shares at $12 apiece. have staying power, even if people do not meet their match. a sports, business is money. mixed martial arts is booming with sponsors clamoring. this is a spore admired for its athleticism, but usually criticized for its brutality. tomorrow night, beijing will host the featherweight world championship.

in mongolia, we have a preview between the bout with a mug olein champion and a russian contender. >> this sport is not for the faint hearted. allolia's fighter will need his skills and experience when he defends his crown against an undefeated russian. >> this is my first opportunity for me to defend my title as the world champion since i got the title last year. i want to defend my title and be a real champion. ♪ >> extremely crafty. >> the event is sold out. this will be broadcast in a billion homes across the world. among and budweiser are sponsors. now, it wants to bring martial arts back onto asia, signing a bill to organize 22 events in

china over the next couple of years. >> we will take las vegas style entertainment into asia, we will sell out arenas, we will put on a world-class show both in-house and live around the world, we are broadcast in 70 countries. and sponsors see that as a major opportunity and there are not many other asian sporting events that do what we do. >> one championship has been permitting -- promoting the fighter -- the defending champion, by promoting his mongolian heritage. >> i am proud, because thinking of my warrior heritage supports me emotionally before a fight, but i do not believe it is all about bloodline. any person can reach success if they work hard. >> one championship hopes it can channel that fighting to boost

mixed martial arts across the region. rishaad: and before we leave, breaking up is hard, but it could be easier on face look -- facebook. they have a feature that will allow users to take a break from a relationship without actually cutting ties. when using this, you will see posts without's unfriending them. they added a mute button as well. that is it for "trending business". edge.uned for asia we will be speaking to the u.s. secretary of commerce, talking about partnerships and the business outlook here.

we will pick it up as we head to the top of the hour. theill be looking on indexes. ♪

>> our world today is wealthier than ever, but not everyone shares in this wealth. today's young business leaders are challenging this, changing the way we think about money, power, and its purpose. this is a new generation. this is the new philanthropy.