♪ angie: it is monday, the 11th of july. i am angie lau. this is "trending business". ♪ will be live in tokyo, singapore, and sydney. we are watching. asian stocks make a positive start to the week after a strong jobs report in the u.s. nintendo touching the 25% limit on the strength of the pokémon go game.

go, go, go pokémon. line pricing its ipo at the top of the range, just under $33 each. billionuld raise $1.1 as trading begins later this week. fresh from a resounding upper house election win, shinzo abe putting his focus on the economy, promising swift stimulus measures. you can let us know what you think of today's top stories by following me on twitter. don't forget to include #trendingbusiness. asan markets tracking higher we see a decline in crude prices. the marketook at action in singapore, taiwan, and malaysia. juliette: good morning. joining in that positive sentiment across the region. malaysia slightly higher, a 10th of 1% higher. 1.2%, no stocks

in the red on the open. taiwan adding 1.5%. , onlykkei 225 up over 3% one stock in the red. we had that convincing win from shinzo abe prime minister over the weekend. overme minister shinzo abe the weekend. gains, hold onto these the best we have seen in three months. panasonic leading the nikkei 225, up by over it 6%. j. front retailing up by 6%. korea, andmove in some gains in australia. confirmation that them up in turnbull coalition will remain in power. by materialup, led players. most of the oil players looking good despite the fact that crude

has started to fall as drilling picked up in the u.s. a quick look at some of these movers, 23% for nintendo. these are the energy players i was talking about. space, up by 3%, so certainly more movement back into gold. the fact we are still seeing investors a little bit on the intoines showing a move the safe havens, have a look at the yields on the 10 year note, the australian yield higher, up by 1.9%. japan still and negative territory, even though the arrow is pointing higher. angie: thanks. china's deflation threat is subsiding as factory gate deflation eased again last

month. we are crunching the numbers right now. ppi fell 2.6 in june, meaning inflation has persisted for 52 consecutive months at the factory gate, but that does not tell the real story. ppi deflation has eased for six consecutive months, represent the smalling drop in prices since late 2014, the recovery driven by a firming of oil prices and other commodities and a rebound in property sales. less negative producer prices profitsonger corporate potentially, and that means more pays to repay loans, salaries, and fund capital spending. it means lower real lowering costs. themberg intelligence said 3.3% increase in ppi year to date has done more to lower real borrowing costs than the entire pboc's easing regime of six interest rate cut so far. as for consumer prices, cpi

remained benign in june as prices rose 1.9% on cheaper vegetables, fruits, and eggs, but food prices are expected to rise again after i about of extreme weather that hit china, severe flooding and the typhoon this weekend could damage crops and disrupt transportation. second-quarter gdp numbers are due out this friday for china, expecting growth to have slowed to 6.6% from 6.7% in the first quarter. expect and easing buys to remain, but authorities are unlikely to unleash new stimulus with the inflationary pressures i spoke about. bloomberg intelligence says the easing of deflation at the factory gates is doing the job for the pboc. angie: thanks. the wait is over for australia after a tight election with malcolm turnbull to be officially sworn in as prime minister next week.

malcolm turnbull claimed victory eight days after the polls closed despite both still being counted. more, let's get over to paul allen in sydney. how clear does that do the election results look? paul: it is unlikely to change dramatically. votes will continue to be counted for a few more days, but the coalition has 76 seats. 77, whichet up to would give them a two seat majority in the new parliament. it is not much, but it is enough. they also have the support of independents if they need it. bill shorten called malcolm turnbull on sunday to concede to over.so it is however, we will have a weaker government and australia, so the concern remains that it will mean not a lot of action on the policy front and could mean the deficits just keep on getting wider. s&pe: what about this

putting australia on negative credit watch last week? it made headlines, but it seems the markets are shrugging it off. paul: no, they didn't blink, did they? we see all strays bond yields continued to slide, so there is still the man there. if we look at the asx, positive territory as well, up more than 1.6%, although less to do with the end of political uncertainty dan the first opportunity to react to that u.s. jobs report. no, not a huge amount of concern over whether -- where australia will be headed politically. the markets are shrugging it off. angie: thank you for that. paul allen live in sydney. let's look at some other stories. line had set its ipo pricing at the top of the range, shares offered at ¥3300, $32.84.

that would see the most popular instant messaging service raise $1.3 billion for its dual listing in tokyo and new york. last week, line raised its price range despite the brexit vote. warn globalinisters cross-border investment may fall 10% to 15% this year. the ministers met to discuss bowls efforts to facilitate world trade. they also talked about overcapacity and steel and other industries, saying it is causing a negative impact on trade and workers, but also an issue that requires a response. china has said it has taken steps to cut excess steel capacity. the g-20 ministers also said the impact of the uk's decision to leave the european union would be short term. ministervoters gave by --prime minister shinzo abe a

convincing election. his coalition partner had 13. theould look at revising pacifist constitutn if he gets a two thirds majority. he has been an advocate of constitutional change, but has avoided the issue, saying the economy remains a top priority. he said the party will be to push ahead with economic policy and indicated he will try to boost economic growth through spending. let's take a look at how shares of nintendo are doing right now, up 23%, rising for a second session. they jumped as much as 25% today, hitting the daily limit. biggest gainpanies since its listing in 1983. it's pokémon go mobile app has climbed to the top of charts in the u.s. and australia. later and theup

show, getting in the game. chinese firms are putting billions into soccer. we will break down the record deals next. a vision for water, live in singapore as the city hosts international water week. this is bloomberg. ♪

,ngie: 9:12 a.m. in hong kong these are the latest first word headlines. president obama has warned that americans protesting against police violence remain respectful or risk undermining their message. to spain,n his visit the president said rallies in many u.s. cities were legitimate, but called on any violence against officers, calling it a reprehensible crime. last week's police killing of

two black men were followed by the murder of five dallas police micah johnson. truthful andg a isious and respectful tone americanhelp mobilize society to bring about real change, and that is our ultimate objective. angela merkel says she firmly expects the next uk prime minister will honor the brexit vote. the chancellor told a network that she is dealing with reality and expects the withdrawal application under article 50 to be filed once the new prime minister is chosen.

she says there is no a urgent need for eu reaffirm, saying it was a british decision to leave. india's top test deal searching for a partner after the brexit vote. firms over as with possible joint venture. ta is reviewing after four companies pulled out after the referendum. the u.k. government says it will help with the sale as it looks to protect 15,000 jobs at stake. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. angie: more than 600 million people around the world lack access to save drinking water according to the world bank. this and other issues are being discussed at the singapore international water week right now. we are there. it.ou said

water, water everywhere, yet half the world's population faces water shortages, and they say the war of the future will be overwater, not oil. good to have you with us. how quickly is the situation deteriorating? we talk about climate change and talk about the co2 problem and increasing temperatures and things that are going to happen in 100 years, but the matter of the fact is that countries most vulnerable are facing already very severe problems be a drought's, lack of water, and also flooding. have beene experiencing in southeast asia and china, flooding problems. two years ago, we had severe problems. >> you're saying it's making it

worse for the water situation? >> absolutely. we are already facing the problem and have to tackle it. yes, we need to become more resilient. the poor countries of the world are the most vulnerable. they have to increase their capacity to cope with these problems. >> you touched on china, the water pollution in china is at toxic levels across the country. the government has said it will name and shame. is that a good enough initiative or does more need to be done? china has that followed the process that most of the developed countries that have their rivers very clean did. you take for example england or the u.s. or france. they started by giving audible water to the citizens and collecting sewage, then treating the sewage.

this is basically what china is going through, a process that all these developed countries went through, so i think the chinese government should certainly be investing now in treating the sewage using more efficient technology than these other countries used 30-40 years ago. that it is more difficult to track the quality of water as opposed to the quality of air? that makes the situation even more complicated. is not and the treatment an inexpensive process, so a lot of financial resources have to be devoted to controlling water timetion, and at the same the emerging economies, they

have other important investments , in education,ke and health, energy, so on and so forth, so it is a very complicated problem in deed. us to the issue of funding, crucial to solve the water issue. you are suggesting that the green fund, which is used for environmental issues, should be used for water as well, that water should be included in it. >> absolutely, and when we talk about climate change, we are saying the impact of climate is not a matter of temperature. higher temperatures are more amenable for those who live in cold places, but the problem is water, so the fun has to be -- fund has to allocate some part two society to become -- to society to become more

resilient. they have to freeze their capacity of storing water in order to face this longer drought, and also they have to be more resilient to flooding by constructing dikes that would protect the population. so the time is now that the climate fund thinks about adaptation. i'm not saying we should not be concerned with mitigation. that is the long-term. in the short-term, we have have to do something about adaptation. >> having the fund is one thing. how the fund is spent is another. innovation seems to be the way to go. if you look at countries like no proper water supply, now close to being secure in its water supply, and that is through innovation. we have not seen enough of that. >> i think you have an excellent point. i think technology and innovation are fundamental to

of waterhese problems supply, sanitation, so on and so forth, but at the same time as you mentioned, we have to be sustainable in the long term, so we have to have in place the proper governance, the institutions, and the capacity of the technicians to maintain and to operate properly the system. of course, if there is no money, there is no music, so you have to have the financing. ar singapore, that is well-established economy. thatave the funds southeast asia, africa, and latin america and will need. innovation, technology, and governance are the three most important. saide egyptian president

water is the issue that will make egypt go to war. of wars the risk happening overwater? >> if we do not have the proper management, yes, we have a risk, but what we are doing here through meetings like this one, through the world water forum's the council organizes every three years, is to motivate the politicians, those who make the decisions about the importance of water and its proper management. there is enough water for everybody. it's just that you have to manage it wisely and efficiently. >> we thank you for your insight. you heard it. there is enough water, but we have to manage it. angie: absolutely. coming up, a vote of confidence, live in tokyo as the focus turns 's stimulus plan

after his upper house election. this is bloomberg. ♪

"trendings is business". has promised within bold economic measures after winning a convincing victory. britt miller is joining us live from tokyo. put this election win shinzo abe in a stronger position to move forthwith his stimulus plans? >> it certainly does. it looks like he is heading for a two thirds majority in the upper house, but the question remains, how will he use that majority. has been in power since december 2012, so he has had ample opportunity to implement his policy.

the question is will he use this majority in terms of changing the constitution for defense issues or whether it be for abenomics and furthering his reforms? a halfe past three and years, we have seen a lot of action in terms of monetary policy. the bank of japan has spent a lot of money and bought a lot of assets and government bonds to help stimulate the economy. the government has spent quite a lot. ofcome to that third arrow economic reform, and that is the question that we will have to see in the months and weeks ahead, whether he will knuckle down and do more in terms of economic reforms. thing.that is the there are a lot of calls for fiscal stimulus from shinzo abe, including one of his closer advisers calling for a ¥20 trillion boost. are we going to get it? >> we will certainly get more stimulus. will we get ¥20 trillion?

i'm not quite sure about that. estimates for tax revenue have gone down. the government has spent a great deal of money, or at least earmarked a great deal of money for the areackage in southern japan struck by earthquakes a few months ago, so where will the money come from? is ¥20 trillion realistic? i'm not sure about that, but there will be a large package. we certainly will see more spending. the question remains how much that will be. this is still an economy that has contracted in five consecutive quarters. what are the challenges that remain? >> i would say the list. with the yen being quite weak in the early years of abenomics, that gave headwinds to the economy and government, but with the yen around 100 to the

dollar, we see a lot of pressure on exporters and see a lot of pressures on business sentiment. angie: thanks for that. live from tokyo. more from tokyo coming up next. why american investors are losing faith in abenomics. this is bloomberg. ♪

♪ angie: the top stories trending this hour. bouncetocks tracking a on wall street after strong u.s. jobs report. japanese shares surging, led by industrial and mining shares after shinzo abe hinted at further fiscal stimulus. crude has swung back to losses. nintendo shares, check it out, they had their best day. it went public in 1983. , shares touched the

daily limit of a 25% gain as a result of the augmented reality game, rocketing to the top of the mobile app store, although there are reports that some players are suffering real life injuries. we have messaging app line setting its ipo, pricing at the top of the range, shares offered at ¥3300, the equivalent of $32. that would see japan's most popular instant messaging service raise more than $1.3 billion. juliette: a very busy day in japan, that very solid game and the nikkei. let's get to these opens in hong kong and shanghai. the hang seng up by 1.8% on the

open, only to stocks out of 50 in the red at the moment. the shanghai composite up by a third of 1%. we had that ppi number come through over the weekend, sing factory gate prices ease a little bit, deflationary pressures easing, some good movement on the open with a third of a percent gain, a number of stocks hitting the daily 10% limit on the open. the philippines coming up online , risk on in terms of equities. said the bulls are taking charge, which you can see they very much our. korea up by 1.3%. austria up by 1.8%. that is as we see weakness in the crude price. i want to show you what the crude prices doing at the moment, down the 7/10 of 1%.

inhave seen drilling pick up the u.s., so that is putting downward pressure on that price. , up bya look at gold around a third of 1%, or a 10th of 1%, i should say, at the moment as we see money still coming through into safe havens. , want to show you the yuan goldman sachs saying there will be quite a few beneficiaries as they see the yen weaken to 6.8 against the dollar in 2016. they're saying every 10% change could translate into corporate profits. a number of stocks will benefit, including cte. at the moment, solid movement across all asian equities to kickstart the week. speculation on further stimulus from japan. also, some consolidation in

australia and japan, and the very solid job number from the u.s., so i great start to the trading week. angie: let's talk about line, which is one of the leaders in tokyo right now. , i was thinking of nintendo. i'm sorry. line is the largest tech ipo this year. the offering is as big as it can possibly be after it priced at the top end of the range. david is here. it priced at the top end of the range. you have to have guts, obviously. that said, that is what has apiece, 333300 million shares, top of the range.

u.s., $32.84, the 25 million shares there. $1.3are looking to raise billion. they begin trading in new york on july 14, in tokyo the next day, and you put all this together and it would value line at $6.9 billion, which would be the biggest tech ipo. angie: 218 million users thus and some keyolid markets in asia, not all of them. where is the growth going to come from? david: it is solid in japan, taiwan also fairly solid, taiwan, indonesia to a certain extent, but when you look to the west, it is almost winner takes the most. you can't be second fiddle. these are the biggest markets of

line. if you look at the u.s., it only has 12% market share if you want to use a metric similar to that. u.k., 3%. south africa, 6%. it is looking perhaps to , 218ize its other services million users, one of the first pioneer monetizing services. of lastin revenue as year, although still reporting a loss, which is typical. angie: it originally failed to go public two years ago. david: it was hoping for a ¥1 trillion valuation back then. between the time they shelled it and this week that they would have garnered enough momentum. by the pricing, it looks they are confident it will fly. angie: all right, thank you so much for that.

theite currency anes from surging yen, american investors -- gains fromt of the surging yen, and american investors are pulling out of japan. they have shed a must $10 billion this year. let's get more. what has been happening here? as you say, we were looking at the data for japan's stocks, etf's, and what we have seen is a huge exodus over the past year. the two biggest funds, one is from black rock, one is from wisdom tree, they have seen him was $10 billion pulled this year alone. to put that into context, there are more than 1300 etf's listed in the u.s., and both of those funds are in the top five in terms of money pull this year. angie: even with the currency play?

it is surprising that some of the outflows are have appeared. , so the big characteristics of japanese stocks this year is that they are falling, huge declines, 20% , largely because of the big gain in the yen. 19% at the end of the friday. the wisdom tree fund's heads, and the others black rocks fund, unhedged. when the yen is gaining so much, edged fundged -- unh gives you the benefit of the gain. we are seeing outflows from both of them roughly the same. the exodus is happening regardless of whether you can get it if it's from currency or not. angie: that is really interesting. what are investors saying about this trend? they're sayingat

is, ok, one of these funds is doing relatively better than the other one, but at the end of the day, they are both doing badly. if you compare them to u.s. stock etf's, there is really no comparison. u.s. stocks are up on the year this year, so investors we have spoken to are saying they are not that surprised. --y basically have a lot lost confidence in japanese policymakers to really turn this around in japan, so they have decided to get out. angie: tom redman, thank you for that live out of tokyo. checking in on some other stories, south korea is planning a range of penalties on volkswagen over its emissions scandal. a newspaper says the punishment is to include fines, recall orders, and a withdrawal of certification. korean prosecutors made the request, accusing volkswagen of

fabricating reports on noise and pollution emissions up to 150,000 vehicles since 2007. sources have told bloomberg that takata may be reaching out to 20 possible buyers. buyout firms are said to have expressed interest, along with china. working on restructuring as it faces billions of dollars of cost to do recalls. be set to airbus may win multibillion-dollar deals. aircraft makers are gathering for the u.k. airshow, hoping for orders from europe to india as they look to ease concerns about a slowdown. we are tracking the story. the industry is expecting fewer orders. >> that's right. wider bodyfor planes. the industry has been concerned there is a slowdown coming,

essentially global economies are not doing too well, also more pressure on bigger airlines. bloomberg intelligent saying long haul and fares are under extreme pressure. a lot of pressure on prices in southeast asia, latin america, and the middle east. that is expected to intensify global competition and the economic environment. larger wide-body planes are likely to slow. bank of america merrill lynch expect an "quite airshow and expect to see more orders deferred and the next six months or so." angie: what is on the cards? >> there are still strong orders , single aisleanes planes. apparently going

to order 20 planes from boeing, according to bloomberg sources. a german company looking at orting $1.3 billion of planes, including a 787 dreamliner. india's goalking to airlines about nearly 70 planes, worth $7.5ets, billion if the order goes through. these smaller jets look like their performance is strong, orders coming in for those. wider, bigger planes, the growth not as strong in the coming months, and that is what industry sources will be looking at when they look at the orders this week. angie: thank you for that. coming up next, how has the world's energy giants change your views on combating climate change? hosts international water week.

this is bloomberg. ♪

angie: 9:43 a.m. in hong kong. the latest first word headlines. standard chartered has started its first brokerage business in japan with 100 employees. 20 will sell in emerging market to brokerages, banks, and asset managers. the move comes as the ceo cuts costs and sales businesses, trying to turn around the bank, which last year posted its first loss since 1989. deutsche boers may lower the threshold for its london stock exchange acquisition. on decision will be reached monday after parties involved examine technical issues. deutsche boers investors will have until tuesday to tender their shares.

north korea test fired a missile on saturday, one day after south korea and the u.s. agreed to deploy a missile system and the korean peninsula by the end of the year. north korea has described new u.s. sanctions targeting the leader as an "declaration of war." the missile was launched off the country's east coast. sources say it appears to a field early and its flight. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. carbon markets, the solution to tackle global warming, now in danger themselves. competing policies are hurting the market, and analysts are warning that this will undermine the fight against climate change. let's head back to singapore, our next guest.

water a huge issue for the 21st century. >> that's right. , a giant a whole energy companies have said they want to be part of the green agenda, not because of the problem. the question is how far will they go, how far can they go? joining us this morning, good to have you with us. giant energy companies who want to make a difference in the green agenda, how far do you think they will go to mitigate climate change? >> i think different companies have different agendas, but i think many of the companies will go as far as the competition will let them go, if i can put it that way. in general, moving to a green agenda is more expensive, and all of these companies have shareholders who are looking for dividends. it is not really feasible for

one company to go way out on a limb and make its products more expensive at the others don't have to, so governments have an important role to play here in terms of keeping a level playing field and making sure that all of these companies are basically following the same kind of rules. given the right regulatory environment, i think you'll find that the majority of the big oil majors are happy to go along, certainly my company shell. they have to do that. >> it also comes down to renewables. when you look at the market, it's not growing all that much. it has been pretty stagnant. what incentive are therefore those energy companies? is theincentive long-term outlook. undoubtedly, we will not stay with fossil fuels forever. basically, i think all of them see the need for a gradual transition between renewables

and fossil fuels, with fossil fuels taking a lesser and lesser part. but also, i think we probably are going to see an increased use of nuclear and also technologies we have not even dreamt of yet, which will come in as well. >> can emerging markets adopt nuclear energy when there have been accidents in developed countries like japan? >> fundamentally, the number of deaths and serious injuries associated with nuclear globally is really very small by comparison with the fossil fuel industries, but the answer is, yes. the new generation of nuclear reactors are likely to be much smaller than the traditional giant plans. -- plants. they will be based on small, marginal or reactors that can be

factory produced in large numbers. and there are now what is called a failsafe design. if something goes wrong, they shut down automatically. as a is no such thing danger-free industrial operation of any kind, but these are pretty good. i think we will find that a combination of these reactors decreasingssively thes portion of fossil fuels, plus ways of storing energy. >> you talk about costs. pricing is essential. fossil feels are the cheapest -- fuels are the cheapest form of energy we can have. >> absolutely right. burning dirty coal is the cheapest way of generating power. this indeed is what has been

happening in northwest china for a number of years. i think one of the obligations of the developed world is to help developing countries do this much more cleanly, and the group of technologies known together as carbon capital and storage can actually do this and allow you to burn fossil fuels without putting dangerous greenhouse gases into the atmosphere. is a step incing the right direction, but not a game changer. >> carbon pricing is fine, but only works if it is adopted globally. we are quite a long way from that, so it has to be done country by country. >> i just want to touch on brexit. >> yes? >> what implications are there for the u.k.? >> let me start by saying i was against brexit.

i was surprised by the result and disappointed. we are where we are, and we now have to make the best of this. spendingof finance and theenewable energy and environment, certainly a lot of money we paid into the eu came back, and there is nothing to stop us in the future of pursuing the same and for mental objectives as vigorously as we were before. >> isn't it true that for the medium term that those objectives may not be met? >> not necessarily. not necessarily. it is fairly early days. we really haven't got an effective government at the moment. we are waiting for a new prime minister, a new government under that prime minister. we can't really say how things will turn out. >> we have to leave it there. back to you. angie: political murkiness out

of brexit, thank you for that. pilingup, chinese firms billions into soccer. find out why, next. this is bloomberg. ♪

angie: andy murray has claimed his second wimbledon title with a win. the 29-year-old is the first british man since fred perry to win the all england club title more than once. murray has now won three grand slam finals. crowdd the centre court that those losses make the win more special. portugal are the football champions of europe after defeating france 1-0 in extra time in paris.

had to overcome the loss of cristiano ronaldo from a first-half injury. on to win their first major men's title. it is their first win over france since 1975. world ofto the business, chinese companies on a spending spree and everything from health care, hotels, to technology. many are also making a massive play for soccer, pumping $1.7 billion into the sport that until recently attracted zero investment. rachel chang joins us from shanghai, why the sudden surge of investment? investmente serve of has only been happening the last few years. it all dates back to a master

plan from the chinese government see014 which wanted to 5,000,000,000,001 invested and sports related assets in the last 18 months. we are seeing a surge of investment from the richest men in china to small companies. i was speaking recently to a toy car manufacturer. surge in been a huge interest to fulfill this. what behind it is -- goie: very quickly before we , where is this trend headed? this trend is not slowing

down anytime soon. angie: got it. all right. rachel, thank you so much for that. i'm sorry. we have run out of time. more on lines high-priced ipo. this is bloomberg. ♪

♪ angie: it is monday, the 11th of july, i and you -- i'm angie lau. this "trending business." ♪ we are going to be live for you in singapore, shanghai and tokyo this hour. first, here is what we are watching. asian shares jumping the most since mid-march, after wall street flirted with a record close on strong jobs data, the weakening yen happening -- helping japanese stocks. nintendo touching the limits on

the success of the pokemon go game. the very top of the range, offering shares just under $33 u.s. session raised at least $1.1 billion for trading later this week. plus, getting in the game. on a sportingsses spending spree. we will take a look at why their investment in soccer has gone from zero, to $1.7 million this decade -- $1.7 billion this decade. let me know what you think of our stories. don't forget to include #trend ingbusiness. asian stocks are having their best rallies in almost four months. the positive jobs report out of the u.s. helping keep things along. we also have the prospect of more stimulus coming out of japan, primus -- stocks highest

since april. coming to in australia as well. finally, we have a clear outcome from the federal election of -- the asx 200 up by 1.7%. jakarta has just come online. it is up by 1.3%. solid moves coming through in hong kong. the hang seng is at 1.5%. only a couple of stocks and -- in the rented a. -- in the red today. in over thecoming weekend. we do see a little bit of deflationary easing. a little more economic data that has come through, approvals in australia falling by 1%. we have had solid movement coming through as well on the back of those stimulus measures, coming through from japan.

having a look at the index as a whole, is up by over 2%. the index has now actually recovered about half of what it lost last week. on thelion shares regional index of for this morning, raised. that is about 75% of the three-month average. a lot of players getting into the market. a little weakness coming through players. aussie oil contracts have come under a little bit of pressure in the early morning. crude is down by about 8/10 of 1%. generally, positive movement across asia markets. angie: thank you. later this week, the world's biggest tech ipo this year makes its trading debut. we are talking about line, which is the top end of the range in price. we have david taking a look at the pricing. they seem confident. david: they priced at the top end of the range, as you

mentioned. it does seem based on what we understand, they're exercising the green option. they are raising a little bit more than if they didn't. we are looking at ¥3300 apiece. if you look at the partial listing in new york, we are looking at just over 25 million $32.84 u.s. taking a look at the green shares, we are looking at a total of $1.3 billion. they begin trading july 14, following in tokyo the next day. aliens valued at 6.9 dollars -- $6.9 billion. it is really impressive. if you consider that no technology company has raised more than $150 million this year, it shows you they are

confident this will fly at the open. have a look at some of the big markets. of course, we know it has cornered the market in japan. thailand, taiwan, indonesia, that is what they are setting their eyes on. looking at the graphic, some of the numbers, it is tailored to services to emerging asia and the middle east. when you look at the developed market, it has not done quite well as well. keep in mind, this is a tech company, where it either you it is winner take all. just a few things to keep in mind. the list is thursday in new york and friday in asia. angie: thank you. you can get more on the line listing at bloomberg.com/asia. from line, to nintendo. let's take a look at the other stories we are watching. a little yellow guy called pokemon is shaking things up. rosalind: let's look at shares

in nintendo.they are searching for a second session . twicewere up as much as 5% today. right now, up about 23%. second,the company's the biggest since the tokyo listing in 1983. the rally has lifted the market value of nintendo by more than $7 billion. the jump in shares is because of the augmented reality pokemon go app. the game allows players to use a smart phone to track down virtual characters in real locations. nintendo is an investor in the games developer. japanese voters have given the prime minister shinzo abe a convincing is victory -- victory. if he gets a two thirds could look at abe

revising the pacifist constitution. he has been adamant unconstitutional change, but mostly avoided the issue, in the campaign saying the economy remains the top priority. he says the theme is to push ahead with economic, policy speed up away from deflation, and increase economic growth through spending. g-20 ministers warned that global shares may fall 10%-15% this year. they discussed bolstering efforts to facilitate world trade. they also talked about the overcapacity in steel and other industries, saying it is causing a negative impact on trade and workers, and that it is a global issue that needs collective responses. china is the world biggest steel producer and it says it has already taken steps to cut excesses steel capacity. the impact of the uk's decision would angie: be

short-term. china's deflation threat is subsiding as factory gate east again lest month. crunching theis numbers. what are the implications? stephen: you have to look wide and far to find all the implications. producer price index falling 2.6% in june, meaning deflation has consisted of 52 -- consecutive months. that is more than four years. that does not tell the real story. pbi deflation has eased for six consecutive months, representing the smallest drop in prices since late 2014. the recovery is being driven by affirming of oil prices and high commodities and a rebound in property sales in china. prices means stronger corporate profits and more funds to repay loans, pay salaries and fund capital spending. it means the work real borrowing costs for chinese corporate. bloomberg intelligence says 3.3 percentage points increase at

ppi year to date has done more to lower borrowing costs than of entire pboc regime easing. as for consumer prices, cpi remains benign, as prices rose 1.9% on cheaper vegetables, fruits, and eggs. food prices are expected to rise again after a bout of extreme weather across china. severe flooding as well as the typhoon that it this weekend could damage crops and disrupt transportation. second-quarter gdp numbers are due out friday from beijing, we are expecting growth to have slowed to 6.6% year-over-year, from 6.7% in the first quarter. economists expect and easing remain, butpboc to authorities are likely to release new stimulus with underlying inflationary pressures. the easing of deflation of the factory gate is kind of doing the job for the pboc, according to bloomberg intelligence. angie: thank you for that. coming up, making a place with

the beautiful game. by chinese firms are spending big on soccer. coming up next. staying stable. my most currencies managed to shrug off the decision to leave the eu. this is bloomberg. ♪

angie: the yen is weakening this morning, as investors turned their attention to shinzo abe's plans for fiscal stimulus. the prime minister's party won the election in the upper house sunday. now to singapore, where the isrency economist philip lee standing by. you revised your call for the yen after brexit. but judging from this weekend's win for shinzo abe where do you see it going,? the dollar yen is stuck in the range between 97 and

105.previously, we were looking at a depreciation in the yen but that was based on the expectation of the u.s. rate hikes, which at this point has been dampened by brexit. but we have not given up our hope that the fed may consider hiking again in september. that means that the market may have gone too far in pricing all the hikes for this year. yen is concerned that the pattern is consistent in the sense that it's been a sk andon of global ri expectations. angie: where do you forecast the young to go by the end of the year? betweenange is really 97 and 105. 101.t the cost around say, the risk in terms of currency fluctuation

really also is on what the fed is going to do, except a lot of your colleagues are saying, with macro global pressures, that conversation is off the table. but you still think there's a likelihood in september. why? the main thing -- i think the main thing is we have been tracking the fed hike expectation for some time already. we believe the framework is really to return real interest rates back above where the be,-term inflation will between 2%-two .5%. unfortunately at the start of the year, we had the chinese yuan risk, and now there's a brexit risk. i think the brexit risk is much milder compared to what we saw at the start of the year. primarily, because most central banks know what to do. i think it will ease investor concerns.

bond and tellhe you that the central banks are against anych fallout from thirds it -- brexit. but once -- just like the chinese risk, once the initial fears rollback, than the fed will start sounding less cautious. which is why this week, we have a number of presidents -- precedents. they have pulled back because of the shock. -- that we have 200 and 8 287 k non-fund payroll, we will see whether they will start becoming more confident about u.s., and less concerned about brexit, and start thinking about normalizing monetary policy again. angie: are we focusing on the wrong thing here, though?

brexit fears of aging, but the italian banks in default, likely insolvent, possible global contagion. is that something that is on the minds of investors right now? >> i think when it comes to don'tan risk, while we want to play down the significance, but i think if you look at what happened last year in regard to brexit, we had similar concerns rising again in with greece. but eventually what really brought the euro down was the ecb policy to fight deflation. i think it is very important to be clear in terms of the drivers and pushers at every currency. i think for the euro, we are watching it quite closely. we know it has been in the range between 105-115 since they

started qe in march last year. worried whether brexit risks will spill over. that said, europe has come a long way from the prices. -- crisis. the ecb has not held back as in terms ofost policy responses. i think other central banks in the world are also collaborating with each other. i don't think we are in the same world that we were in 2012 and 2013. angie: quickly, before you go, goldman sachs thinks china will weaken to 6.8. a lot of people directing it to the seven handle. what are your thoughts by the end of the year? >> we are looking at dollar china as a fresh handle. the 6.8 is within our target by the end of the year. but i think in the short-term, hoprisk is that we have to

up the channel we are tracking. if we do not get a pullback from here, which means that the depreciation pace is likely to be much deeper than what we originally thought. i think longer-term is that the trend is clear for the dollar china to hit up. the are seeing at the end of every five-year plan, there's always a significant shift in , ins of the exchange rate 2005 with the impact, in 2010 with the resume, and last year in august. that sets the tone for the next two or three years. angie: it seems like investors buying it. we will leave it there. the senior currency economist from dbs group. headlinesthe latest are president obama has white americans protecting against police violence to -- warned americans against police

violence to remain respectful. he called any violence against officers a reprehensible crime. last week's killings of two black men were followed by the murder of five dollars please bite an army militant, mica johnson. obama: maintaining a andhful and serious respectful tone is going to help society toerican bring about real change, and that is our ultimate objective. reporter: she firmly expects the next u.k. prime minister will honor the brexit vote. sayshancellor for germany she is dealing with realities and expects to withdraw the

application under article 50 to be filed once the new pm is chosen. merkel says there's no urgent need for eu reform, saying it was purely a british decision to leave. india's steel is certified partner in europe, after the brexit vote. they are reviewing their u.k. assets after sources say at least four companies pulled out after the referendum. the u.k.. -- government says it will help with the sale. day,l news 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries. i'm rosalind chin. this is bloomberg. angie: coming up next. seizing the moment. australia's prime minister declares victory in the country's elections, but does he have the votes? live in sydney, with the latest. this is bloomberg. ♪

angie: a look at some of the big events we will be following for you this week. tuesday will bring arbitration on disputed waters in the south china sea. an international court in the hague is to rule on philippines claims to the islands also claimed by china. also, leaders for the eu and china me for the 18th bilateral summit. the two-day talks will focus on political and economic relations, and fallout from the brexit decision. the bank of korea announces the latest rate decision on thursday, and the five -- economist expected to hold at the record low, and that is after a surprise cut last month with the central bank governor signaling the chance of further easing to come. angie on friday, latest economic

data chinese growth slowing even further. economists expect gdp to have risen 6.6% last quarter compared with 6.7% in the previous three months. the wait is over for australia, after a tight election with malcolm turnbull to be officially sworn in as prime minister next week. he claimed victory eight days after the polls closed, despite those still being counted. let's go over to paul allen in sydney. is it clear that the election results are in?the votes are still being counted . reporter: they are still being counted, but there is not expected to be a great deal of change now. the opposition leader has conceded. he spoke to prime minister malcolm turnbull on the phone sunday and, turnbull was quick to claim victory. here is where we still stand. the count is not finished, but

76 seats in the 100 fifties feet parliament -- 150 seat parliament is the majority. there's a possibility that the numbers may change but they will probably change, in the coalition's favor. there was a feeling that the coalition could get to 77 feet -- seats. that happens now is turnbull will renegotiate the coalition agreement with the national party. they may have another seat around the cabinet table. next week, he will go to visit the governor general, and there will be all the pageantry being sworn in as prime minister again. that is the slimmest of majorities, and as we have been discussing in the past week, that means a weak government and probably why deficits going forward. angie: and also challenges with australia being put on negative credit watch last week. though, it doesn't seem that the market cared about it too much. reporter: no, the story on the

bloomberg about this today about the s&p negative watch was greeted with a jan by the markets, particularly bond market, dipping into the australian yield, continuing to slip. the equity market merely blinked. today, it is up almost 1.75%. probably nothing at all to do with the election result being firmed up, more to do with what was happening in the u.s. on friday. the market is pretty much untroubled by what is going on, and the wider deficits that are likely on the s&p negative watch are getting a bit of a pass. angie: paul allen, thanks for that out of sydney. had --r news, chinese hedge funds are turning more bullish after the brexit vote. according to the survey, 76% of funds plan to add stockholding this month, which is a jump from

50% in june. the manager cited a tract valuations which, -- with from the 2016. hewlett-packard enterprises considering a sale of some of its software assets as part of a plan to streamline operations. its acquisitions made in the .ast decade sale process said to be in the early stages may not result in any deals. has stoppedsays it a threat to lock workers in a dispute over pay and pensions. no lockout means no interruption to mail services, as talks continue. that's take a look at market trading here in the asia-pacific, climbing after u.s. payrolls came in better than expected, and japan leading

advances. plenty more to come on bloomberg television. you are watching "trending business." ♪

angie: top stories training this hour. report, u.s. jobs japanese shares surging, led by materials and financial shares shinzo abe hinted at additional stimulus. line setting its ipo pricing at the top of the range, shares offered at ¥3300, that is the

top of the range and would be more than $1.3 billion for its dual listing in tokyo and new york. raised the price range despite the brexit vote. .intendo shares this is on the strength of pokémon go, shares touching the daily limit. the augmented reality game rocketed to the top of the apple store and the first days of release. there are some reports of players in this augmented reality suffering real life injuries.

>> a 3.5% pop on the nikkei 225, the biggest gain in three months. very solid movement coming on that index. only one stock is in the red. region, af the positive sentiment coming through from that jobs report .ut of the u.s. on friday there is speculation of further stimulus. helping, also an election victory out of australia. in hong kong, a solid session, only to stocks in the red. ppi numbers coming through out of china over the weekend, a pickup in the shanghai composite. we did see some easing coming through in those. the rest of the region looking

solid today. there are no sectors in the red on the regional index, which has more than half of what it lost last week. items in terms of the three-month moving average. basic materials leading gains, up by 2.9%. some stocks we have been watching in particular, nintendo .ising 23% the bank of kyoto also having a strong session, leading the banking index in tokyo following its upgrade to outperform buy --credit suisse. goldman sachs is predicting will was see the chinese renminbi week into the u.s. dollar by the

end of the year. having a look at the offshore weakness inlittle the japanese yen. helping those equities, a solid rally in japan. angie: thank you for that. global growth has endured plenty of hazards and hurdles since 2010, but expansion between 2% not a disaster, is by no means spectacular. it looks like that modest growth continue. this is very underwhelming. >> underwhelming is the word. even in the year since the global financial crisis, central banks have taken these

unorthodox policy steps that come part of mainstream jargon. they are not working the way they had hoped. governments taking some steps on the fiscal side as well. thise still stuck in bracket of 2% to 3%. american underlying indicators look ok there. it is testing assumptions and growth models and export models and parts of asia. all of these assumptions are now on the table and policy makers trying to figure out how you revive the global economy. angie: is this also an indictment on central-bank action? >> it does not say much for what qe has achieved. central banks would argue that it put off a slower recession, again, it becomes

jargon, but structural reforms, productivity, they require political backing. we don't see a lot of political backing. jobs, laborto market reforms, salaries, and all the rest. you have to go beyond monetary and fiscal and make these kinds of changes to ramp up the economy again. angie: what about asia? , nonee talk about reform comes to mind more than japan. >> and that is a good case of disappointment, ok central bank, ok fiscal side, but difficult reforms are required to move things to the next level. it is mixed onay what prime minister shinzo abe has achieved there. asia still is the bright spot, but it has been hurt by falling

export prices, falling commodity prices, by what is happening in china. where we once had asia that held up so much promise, we're finding out asia is having a slower year as well. angie: gdp figures to confirm that likely this week. we will leave it there. thank you so much there. modest growth to continue. checking in on some other borse's deutsche decision will be reached on monday after parties involved examine a technical issue. they have until tuesday to tender their shares. shareholders approved the merger last week and a near unanimous vote. south korea planning penalties on volkswagen according to sources. the paper says the punishments

include fines, recall orders, and withdrawal of certification. korean prosecutors made the request of the environment industry, accusing volkswagen of fabricating reports. up to 150,000 vehicles sold since 2007 could be affected. sources have told bloomberg that takata may be reaching out to 20 possible buyers. all buyout firms are said to have expressed interest along with china. working on restructuring as it faces billions of dollars in costs due to recalls. speaking of billions, boeing and airbus may both be set to win multibillion-dollar deals. aircraft makers gathering in the u.k., hoping for orders from

europe to india as they look to ease concerns about a slowdown. we are tracking the story. the global slowdown, people are buying fewer planes. rosalind: that is the concern. industry analysts consider this one of the biggest events in the industry, so you will see where orders will come in or be slower. economicconcerned the slowdown will impact future orders for some of the bigger planes. bloomberg intelligence, triple , bigger planes may see a slowdown in orders because there is a lot of pressure on airfare prices to particular regions, south america, asia, the middle east. there is a lot of intensifying competition in those areas. airfare prices as well. carriers seem to be ordering fewer widebodied aircraft.

this is one of the aries people will be looking at to see whether there will be fewer orders coming in. angie: also, how far people are willing to travel, does that affect the orders coming in? the strength is the smaller planes, workforce planes -- workforce planes, so they have been in talks with airlines ,egarding sales of the a-320 .he neo-plane, a new model it is talking to india's go airlines about that. boeing is talking to other carriers in spain, looking at possibly ordering max planes, ata $2.2 billion -- valued

$2.2 billion. are according to bloomberg sources, so we will have to see at the air sure -- air sure whether these orders come in. it is one of the biggest offense on the industry, but does focus on defense. angie: thank you for watching that. coming up next, support measures, an election win for shinzo abe after promises of bold economic action, but can the japanese prime minister deliver? this is bloomberg. ♪

angie: let's do a quick check of the markets around the region. 2%, thisins close to after we got prime minister

malcolm turnbull taking the election despite votes still being counted. in singapore, we are taking a across the broadly board the better than expected jobs report coming out of the u.s. is helping tailwinds and asia. in hong kong, this is the picture right now. it is a beautiful day outside. it just rain, so clearing out the small. tokyo, aning gains in election victory as well for shinzo abe. there is talk of likely fiscal stimulus driving optimism. has promised swift and bold economic measures after winning a convincing victory in the upper house election. our economy editor is joining us live from tokyo right now. him this election win put

in a stronger position to move forward with his the newest plans? -- his stimulus plans? hebefore the election, already had a majority in the upper house, having a greater majority does not mean they will be able to do their stimulus plans. they have not been stopped from doing any of their economic policies before, so it is not really a big change in terms of how much power he has to push through parliament what he wants to push through. does this mean we will see more fiscal stimulus? campaign the election and again last night, he promised to make bold steps to stimulate the economy. people in his party have thrown out some wild and large numbers on how big that stimulus will be. some people in the ruling party

have set up to ¥20 trillion, but there is definitely to be some kind of fiscal support for the economy. the economyth in itself is not particularly strong, so he's going to come out with details of the plan in the next few days. angie: what are the key challenges here for abenomics? is the challenges he has been facing in the three and half years he has been in power. the first one is consumer spending has not been strong. business spending is also quite week. with theartly to do yen which a strength in quite a bit from where it was last year. the consumer side of the economy is not firing strongly, the business side is not firing strongly, and after three and a half years of abenomics, the government needs to do something to bring those two cylinders back in line and push the economy forward. angie: we are still waiting.

thanks for that. live out of tokyo for us. despite currency gains from the surging yen, american investors are pulling out of japanese stocks. listedthe biggest u.s. etf's have shed almost $10 billion so far this year. let's get more on this right now with our asia stocks editor. what has been happening? say, we have been looking at the data for japan stock etf's listed in the u.s., and as you say, there has been a huge x of money from these funds. -- huge exodus of money from these funds. both of those funds, one by wisdom tree and the other blackrock, the two largest japan inck etf's, both of them are

the top five in terms of outflows of money. is surprising though about the outflows that you are noting? year, the topix is down 20% because the yen has strengthened a lot. at the end of last week, the yen had strength in percent against the dollar. the two funds, one hedged and hedged. doesne from wisdom tree not get the benefit of the strengthening yen, so it has fallen a lot more than the blackrock fund. however despite the disparity in performance, investors are pulling the same amount of money from both funds, so that is a little bit surprising. angie: right, i mean they are almost shrugging off those currency gains there regardless.

what are investors saying about this trend? although one of these two eps is performing better than the other because it is unhe dged, the japanese market itself at the end of the day is not attractive. if you compare the fall in the topix, the s&p 500 has had again this year. wondere beginning to whether governor kuroda has any kind of tools left to stimulate the economy. what they are thinking now is it is better to put that money at home rather than invested in japan. angie: tom redman, thank you so much for that. >> the latest first word ministers g-20 trade

have warned a decline of up to 50% and global cross-border investment. the 20 representatives pledged to improve international trade as the uk's decision to live -- leave the eu and tax businesses. other wto members were urge to approve global deals. the leaders of the g-20 nations will hold the next summit in september. north korea test fired a missile one day after south korea and the u.s. agreed to deployed an antimissile system and the korean peninsula by the end of the year. north korea described new u.s. sanctions targeting their leader ." an "declaration of war o to failile has appeared early in his flight. itsdard chartered started first brokerage business in japan with 100 employees, 20 sell emerging market products. ceomove comes even as the

cuts costs and sales businesses, trying to turn around the london-based bank, which last year posted its first loss in's 1989. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. angie: coming up next, going for gold. chinese firms get their game face on, a huge surge of investment in soccer. this is bloomberg. ♪

♪ you are watching "trending business". i am angie lau. welcome back. andy murray wins, the 29 your old is the first british man since 1935 to win the all england club title more than once. murray has now won three grand slam finals and lost eight. he told the centre court crowd that those losses make the wins even more special. portugal are the football champions of europe after defeating france 1-0 in extra time.

visitors had to overcome the loss of their superstar striker to first-half injury. a goal from a substitute in the 109th minute broke the deadlock, and portugal held on to win , the first major title first win over france since 1975. let's stick with the beautiful game, chinese companies on a spending spree and everything from health care, hotels, and technology. now many are making a massive play ford soccer, pumping $1.7 billion into a sport that recently -- until recently attracted zero investment. this is a huge jump. is --e rachel chang join joining us from shanghai. why the sudden surge of investment? >> this dates back to a government plan to grow the

,hinese sport industry by 2020 $750 billion. the chinese president has made clear that he is a big soccer fan, and he has made public a goal for china to host the world cup and when it like 2050, so this is really the broader political agenda pushing a surge of investment into all areas of international football, whether top-tier teams or whether smaller teams and france, spain. chinese companies are also active there. angie: our international players and teams happy to engage with chinese buyers? seem very happy to engage because the kind of prices that chinese tires have been paying our historic. in the last season, chinese companies paid $270 million for

european international players to come play in china. one of the biggest signings was a brazilian star for $61 million. analysts are saying these players can get five times 26 times what they could in europe to come to china, so there is a lot of excitement at this surge of chinese money. a lot of money in factory where is this trend headed? we don't see this trend stopping soon. there are lots more deals in the works. a chinese consortium is nearing a deal to buy ac milan. some analysts and advisers have told us that chinese companies are also looking at buying teams this surge ofo investment and interest does not seem to be slowing down anytime soon. whenever you hear talks of deals with soccer teams, you always hear chinese buyers are interested. that always pushes up the price.

angie: a huge boom expected in china. thank you for that. rachel chang live in shanghai. animated film's continue to dominate the north american box office as the secret life of pets took the top spot in its opening weekend. it raked in over $100 million and ended the reign of finding dory. five of the top 10 movies have been animated or computer-generated. universal is hoping to cash in on the trend by buying dreamworks animation for $3.8 billion. that is it for "trending business". ♪

>> it's the middle of the asian trading day, a live look at victoria harbor here in hong kong, kind of gloomy but stocks seeing a jump this monday morning. you're watching "asia edge." >> the top story this is hour. asian stocks have their best day in more than four months. yenn leading the way as the weakness. i.p.o. at the top of the raping in this year's biggest tech debut. and nintendo has the biggest

lift since lifting in 1983. okemon go at $7 billion to its market value in just a week. also warm up the war chest, pension funds prepare to become stock market players with $300 billion at their disposal. salley. illiette the strong jobs report friday giving investors reason to bet on equities. the regional index jumping the most in four months and great buying right across the board. japanese shares have had their best gains in about three months leading the surge. chinese stocks listed here at the most in seven weeks. and the shanghai composite increasing following the