♪ it is thursday, the 14th of july. i am angie lau. this is "trending business". ♪ angie: we will be live in singapore and tokyo this hour. , the best three-day run since april. 104, withmains around japanese officials denying reports they are considering helicopter money. singapore as it

grows faster in the second quarter after the monetary authority eased in april. the economy is still seen as vulnerable. betting on a bank of england rate cut as theresa may names are. boris johnson becomes the uk's top diplomat. you can follow me on twitter. don't forget to include #trendingbusiness. breaking news, south korea keeping its interest rate on hold at 1.25%, in line with expectations. from thewe expect china and hong kong markets today? they get underway in 30 minutes. look at what is happening this morning. a rally: we are seeing and a should continue for the most part, although investors in

korea were awaiting that interest rate decision. no surprises, but still some downside for the kospi. taiwan weaker by .25 percent, and weakness in malaysia. throughe gdp coming that we will talk about in a little while, growing at a faster pace in the second quarter. a quarter of5 up 1%, it's best three-day rally in three years. have investment remaining quite skittish. the asx 200 up a third of 1% despite the falling crude prices. by zealand's market is up 2/10 of 1%, holding on to earlier gains.

the crude price in asia trade has rebounded after that 4% slump in new york, up 1% at the moment. a little bit of support to the asian session. also watching the aussie dollar. we are going to get the june employment numbers, expecting employment could have picked up to 5.8%. angie: thanks. a pickup comes despite the global uncertainty. let's get over to our southeast asia correspondent. the question is whether this pace of expansion is sustainable. >> you are right. the sense of the market is it will be difficult to sustain a recovery. this expansion is probably temporary given the risks across

the world. lackluster global growth, brexit, all weighing on the singapore economy. versus 0.2% of the quarter before. economists were looking for 0.9%. singapore is susceptible to swings in global demand. it is an export-dependent economy. externalmists says the weakness is spilling into the domestic economy and we are seeing the repercussions, more businesses shutting down. that will weigh on the labor market here i. we are bracing for tough times. the centralat what bank of singapore did in april. it moved to a neutral policy, and zero appreciation, something it has never done outside a recession. that move says a lot. do youhow much support

think the singapore economy needs? are we expecting another move from the monetary authority there? >> some economists are betting on another adjustment in october. that would mean a one off weakening of the singapore dollar. been so faras supported by investors looking for a safe haven. its strength has been weighing on exports. china, the eurozone, the two largest markets for singapore products. china is slowing, and the imf cut its growth outlook for the eurozone for the next two years. singapore can hardly afford any more bad news for its economy. angie: live in singapore, thanks for that. china's trade data for june shows a sluggish demand at home and abroad, but the weaker yuan soften the blow. let's get more on this.

what is the trade data telling us about the state of the chinese economy? >> china's exports remained week in june, global demand unsteady and uncertain. especially following the brexit vote. a lot of and certainty is what the trade numbers are telling us. termss falling in dollar after a 4.1% drop in may, even as the weaker yuan, which has depreciated 7% against the dollar in the past year, gave chinese exporters more competitiveness in yuan terms. imports are also week, falling for a 20th consecutive month, down 8.4 percent in dollar terms, 2.3% in yuan terms. the numbers, head of gdp numbers that should show a continued managed slowdown in the economy, 6.6% year over year growth, the slowest pace of growth since the

first quarter of 2009, that was falling the outbreak of the global financial crisis. with exports week and domestic demand stuttering, the central government has picked up fixed asset investment. the private sector remains more bearish in the slowing economy. the chinese economy continues aped recovery as conditions are widely seen to have improved since last year. even so, the tepid overseas demand means mastic demand will have to be they driver of growth for the foreseeable future. authorities in beijing favor a weaker yuan as it has depreciated against the dollar. even those the kleins have their limits. we have already seen that depreciation trend against the dollar stall at just under 6.9 to the dollar.

faster depreciation could spark another panic like we saw last august and lead to further outflows, capital flight. so much for you that. let's look at some other stories. rosalind: bloomberg has been told that ubs told singapore authorities about suspicious transactions. were not immediately recognized as suspicious by ubs. singapore said it is reviewing several institutions and accounts over suspicious and unusual transactions. is under investigation at home in the u.s., whether some money raised was siphoned off. one that reported to be an talks to buy 49% of paramount pictures. saysall street journal paramount's owner once a deal

that could value paramount up to $10 billion. reuters has reported that wanda is in talks about eying a majority stake, but summer redstone is against the sale. the news comes after it was reported that amc entertainment to buynding in europe odie on cinemas for $1.2 billion. a taste for fried chicken and china may have helped yum brands perform better than expected. roserands said net income better than analysts predictions , $.75 per share. the executive said kfc and china saw continued momentum. raised its forecast 14% this year compared to the previous 12% in the face of stiffer competition and a slowing economy and china. itsbrands will spin off business in china to focus on

u.s. businesses. angie: still ahead on "trending business", getting behind the wheel and singapore has become more expensive. find out why later in the show. plus, japanese officials back away from plans for helicopter money, so what is left in the abenomics arsenal? we will discuss that and more next. this is bloomberg. ♪

angie: a quick check of headlines, japan's biggest bank is quitting as an underwriter of government bonds. moveys it is part of the to optimize sales and trading businesses. this is the first financial institution since the boj moved to negative interest rates. shares down 1%. malaysia's new central bank

governor has unexpectedly cut interest rates for the first time in seven years, lowering the overnight policy rate by 25 predictions to 3%, a by only one economist at bloomberg. he has been under pressure to lower borrowing costs now at its slowest pace in seven years. monsanto looking for alternatives after rejecting a takeover offer. sources say the company has revived talks about a possible combination of their aggro-chemicals business. no final decision has been made. sourcesbeen told by that monsanto would face pressure from shareholders if it decided to issue shares instead of accepting the all cash premium offer. are swinging today

after a three-they run, so things are waning, but my next guest thanks fiscal stimulus won't trigger eight new bull run. he joins us from singapore. good to see you. you don't think we are getting ,et for another bull run perhaps the reality of the true fundamentals of the global economy kicking in? >> yes. that is the best analogy or best description. if you think about it, there is a lot of distortion in global financial markets. the bond market toes you a different story to equities -- tells you a different story to equities. you also need better earnings growth and better gdp growth, and that is not happening. many central banks around the world are still cutting interest

rates, and it is clearly a race to the bottom. what we are seeing and equities is a -- >> some would say if you look at earnings, that growth could be andainable in this quarter maybe four quarters to come. do you think that could provide a bottom for those optimists that think that the dow could reach 20,000? >> who knows here it don't forget -- who knows. don't forget the current environment reminds me of 2000 and 2007. in 2000, the narrative was that earnings don't matter because of the new economy. in 2007, it was housing prices always go down and the authorities won't let housing prices correct. this time it is about stimulus. equity prices are still cheap because we have further stimulus. if you look at your bloomberg ralliess, equity market

, hopes of further stimulus, but the fundamental problem is there is so much quantitative easing and interest rates at negative levels that it distorts the price discovery mechanism in the economy, and with regards to valuations, the risk premium. had you calculate risk premium in a world where you have negative interest rates? negative, thise is what the bond market is telling us, then equities look attractive. angie: absolutely. especially equities with dividends. the dividend yielding equities are seeing a rigor climb in growth -- a bigger climb and growth, outperforming 25% year on year versus 4.8% for the s&p. it is an upside down world. yieldslooking for inequities because we are not getting it in bonds. how does one build in risk and

diversify? >> that is a good question. to the point you just made, this is the irony of the moment that now people are trading bonds for capital appreciation. as you said, people are buying equities for income. the risk are skewed and upside down, but your question about potentially diversifying your having more of a risk management approach to current markets, i per se think it is in cash. in that sense, the narrative is changing. most banks officially told everyone that cash is trash because cash was unattractive, especially when we had these trades. now we are at the level of valuations and cycles to where it raising cash is potentially a smart thing, because you take a lot of risk for low returns when suddenly the risks are rising, so cash is potentially a better often -- option. angie: goldman sachs is

overweight cash as a diversifying play for its clients. having said that, which currency plays, how much in each pot? think the personally best currency to own his gold. you have many people on your programs who discuss gold, and like equities, their opinion is divided. it comes down to those who consider gold a commodity or those who consider gold to be a currency in its own right. look at the terms of gold performance in terms of british pound. gold has outperformed the british pound by 37%. even in japan, which had large swings in its currency and potentially worsening fundamentals, japanese who had some of their wealth and gold have outperformed the majority of other investors because gold itthis case was doing what

is supposed to do, to maintain purchasing power. angie: i have to ask you about japan. the yen, despite all the fundamental weakness, despite this talk of helicopter money, we still see it as a safety haven play. what point is that perception pop? >> that is literally the trillion dollar question. recently, everything the bank of japan is trying to do turned out to be the other way around. they tried to engineer the stock market higher and tried to bring the yen down, but the opposite has happened. i suppose this shows you that at this stage the law of unintended consequences is becoming more prevalent. this is why the most important variable to watch in fixed income or commodities is the u.s. dollar-yen exchange rate.

i per se think the yen could further appreciate. angie: interesting. one last question for you. what do you think the trigger event will be? europe, maybe attain banks? -- italian banks? >> i think some of your colleagues showed it the other day, the share price performance and chart for deutsche bank is important. systemic risk in european ,inancials is still mispriced but i think there is serious risk in european financials, particularly italy. this debate between france, germany, and italy, that is the one to watch out for. means everyone is bailing out of banks. we will leave it there. joining us live from singapore. thank you so much for joining us. boris,up, the return of the brexit backer bags britain's

top position. strong reaction online. we will take a closer look next. this is bloomberg. ♪

angie: this is "trending business". i am angie lau. welcome back. the teamay has named she will lead as they negotiate to leave the european union. david davis becomes the minister in charge of brexit negotiations. boris johnson, a leading figure in the league campaign. -- the leave campaign. >> as we leave the european union, we will forge a bold new positive role for ourselves and

the world. we will make britain a country that works not for the privileged few, but for everyone of us. boris the appointment of johnson as foreign secretary may have taken some by surprise. some strong reactions on social media. when i saw he was named as foreign minister, i thought his political career was over. >> know, you can never say die. the moste of surprising to appointments by theresa may. boris johnson was the former london mayor, but has never had eight ministerial position, and this will be the first time he hold such a position in the government. he will be working with david davis and william fox. basically, the outward facing positions that theresa may has put in place like foreign said secretary -- like foreign

be those ofnd to the leave campaign. you can see the picture of boris , thisn on this zipline person basically saying, dear world, this is what you get. others tweeting a similar picture, what could possibly go wrong. of the betterne known political figures out of the u.k. globally. one, you could asked someone in the u.s. or elsewhere in the name would pop up because he has been so prominent during the leave campaign. we also have ricky german ace, wasting, just when britain

becoming a laughing stock around the world, boris johnson is appointed foreign secretary. another reference to the top , referring to richard hammond and james may, presenters of the top gear show, also philip hammond had been the chancellor exchequer. you will all be surprised when onmp takes boris johnson friday, with reference to the fact we are expecting donald trump to come out with a name for his vice president pick as soon as friday. angie: i want you to look at this congratulatory tweet. theresa may saying "i look forward to working closely with you and wish you every success." less adversarial than you would think. we will talk about that when we get you back. next, minutes away from the us

train jobs data, which analysts find notoriously hard to predict. will they get it right this time? this is bloomberg. ♪

♪ angie: the top stories trending this hour, asian markets swinging with japanese shares extending gains for the fourth day. consumer and health care shares are making headway, energy stocks also higher. financials down in seoul, korea after the central bank held rates as expected. economy grew at a faster pace in the second quarter, but the recovery may be difficult to sustain as risks to global growth climb.

gdp expands, pretty much in line with forecasts. china's trade data for june show sluggish demand at home and abroad, but the weakening yuan soften the blow. that weakness helped china's overseas competitiveness, preventing a sharper slide in exports. breaking news, the latest unemployment numbers from australia. let's get right over to paul allen in sydney. the unemployment figures have come in line with estimates, which is always reassuring when it comes to all strays and implement figures, 5.8% for june, 7900 jobs created. encouragingly, 38,400 full-time jobs created, which is a reversal of what we saw last month, 30,600 part-time jobs lost, so possibly a lot of the

part time jobs created in may way become full-time, one of explaining these statistics. the participation rate is 64.9%, so more people in or looking for work in june than may, so a solid set of numbers for the month of june. , a% unemployment as expected lot of full-time jobs created. angie: all right, adding close to 8000 jobs in june. thank you so much for that. let's see how the markets are responding. the aussie dollar had paired those gains, seven-week rally ahead of that report, but what is it doing now? juliette: a big spike from the aussie, up a third of 1%. it had been down 2/10 of 1%. a big jump in the aussie when those numbers were released, better expected -- than expected.

the aussie dollar back above marketsetty much where were calling it if we got a better than expected employment number. looking at the markets, hong kong and china coming online and selling off, so it looks like the risk on rally in asia has hit a speed bump. good movement in japan, up a third of 1%. investors waiting for your details as to what prime minister shinzo abe's stimulus package will be. the bank ofkorea, korea keeping interest rates on hold at 1.25%, some downward pressure coming through from financials. let's show you some movers in japan. all the printing companies are doing well. this is on reports that the set to seekapan is abdication, and that means the printing system would have to be

redone from the system it is at the moment. we are seeing the market by into that with solid gains from japanese printing shares at the moment. angie: thanks. avestors waiting on news of japanese stimulus package as growth and for cash and -- inflation forecasts are cut. we have jodie snyder joining us live from tokyo. japan's economy looks like it is limping along. what is driving that slow down? yesterday we got revised figures for the outlook for gross domestic product and consumer prices, and gdp was revised downward considerably to less than 1% growth, and consumer prices were downgraded as well to 0.5%. there are a number of factors.

consumer spending is flat, and that drives 60% of the economy. also, exports are off and wages have not grown. with the strength in the yen from the start of the year, that has also weighed on concerns about exporters and their profits and also on expectations. we have also seen there is a lot of global uncertainty with the rights it vote. .- the brexit vote angie: there is now expectation for fiscal and monetary stimulus, but what do we know more on that? anything? >> we don't know of a lot. we have a lot of expectations 's coalition had a big win in the upper house. there have in expectations of stimulus because shinzo abe said

himself he would do something bold and fall. $96le have been discussing billion as a package. we don't know the shape of it. there are a lot of expectations that it will be something big income in the fall. in the meantime, further expectations for further easing from the bank of japan. their advisors hope it is a coordinated approach, governor kuroda and prime minister shinzo abe do things in a way that can spur the economy quickly. angie: thank you for that. checking in on other stories we are following for you. says the developers to biggest shareholders cooperated last year during a share purchase last year, fueling speculation that a mandatory takeover is possible. vanke has been in a public spat with the to shareholders over

the restructuring proposal involving a public transit operator. u.s. exports have put a price on how much chinese consumers are willing to pay for clean air, $213 over five years. sales ofmics studied air purifiers in 81 chinese cities over seven years. they worked out that people will pay $5.50 to remove each microgram of pollutant per cubic meter of air. pollution and large chinese cities regularly trigger health warnings. amazon says daly sales hit a record in its second annual prime day promotion. orders jumped more than 60% from last year, shoppers picking up a record number of gadgets. it helped the company tripled last year's sales of in-house devices. some shoppers say technical glitches occurred early on, but

were solved and momentum built throughout the day. already ongapore are among the most expensive in the world. prices are about to go higher, and drivers can blame it on ride hailing companies like uber. it's going to be expensive for you. oh, it's going to be very expensive, and it is all about the bidding process. unlike other countries, you need a permit to own a car in singapore for 10 years. you bid for this permit. it is a way for the government to control the number of cars on the road and prevent bottlenecks. the price of that permit has been rising since february. now hovering at $40,000, partly because rising demand from ridesharing companies like uber.

they have been buying licenses to expand their fleet. car loan that, regulations were eased recently, encouraging more people to buy cars, so prices on the rise. how expensive is it? i hear you asking. a tour yield a very popular in singapore will set you back $87,000, permit included. that is four times more than the u.s.. a bmw or even a supercar will cost you more than just an arm and a leg. it is expensive. $87,000 for a small vehicle? oh, my. how high can we expect them to go? it doesn't look like this trend will stop. peak, permit prices went as high as $60,000. some carb day there's say

without demand from ridesharing companies, comet -- permit prices would have continued to fall. the question is how long would it have taken to satisfy appetite like that for companies like uber. the transport of authority in orgapore had earlier and barge taxi companies from making bids for the permits. that prevents the premium for cars getting overheated, but uber and other private companies are not subjected to these regulations. it is something the authorities may have to review. i think it is advisable to just walk. angie: it is also healthier for you. i think we will have to walk around the next time we are hanging out in singapore. toing up, live in melbourne get more analysis on a stray's latest job figures. this is bloomberg. ♪

angie: a quick check of the latest business flash headlines. has overhauled its compensation structure to comply with regulations. the bank is increasing salaries while of limiting allowances. european regulators clarified their terms on pay, closely examining allowances that might reach rules capping bonuses at twice the fixed salary. civilian landed to airliners in the south china sea. the flights came as beijing rejected an international court ruling quashing its claims to 80% of the territory in the waterway. the planes from china southern and another airline landed in

the spratly islands. copper surge to its highest since april, briefly topping more0 per metric time on global stimulus. it economist are expecting the boe to ease today and are watching japan for further fiscal stimulus. china's copper imports rose 22% in the first half of this year. it is the world's largest producer and consumer of refined copper. let's get back to the latest jobs data out of australia, which is largely in line with expectations due to a big increase in full time employment. melbourne.ore from you have the job of explaining helphis aussie job report to spike up the aussie dollar. i guess the market was

suspecting we got a larger effect this month. eight months ago, we had an exceptionally large rise in employment that came from part of the sample that had a high employment intensity. that dropped out this month. we did see a little sample rotation effect, but not as much as the market might have expected. i think he market was relieved to see that employment growth was in line with expectations and the employment rate did take up 1/10. it is a bit of a relief rally on the aussie. i guess that carry trade can continue and the search for yield? that is the thing, markets are more settled now. factors that those are a draw to the aussie dollar.

story isive yield there, and that continues to be a draw for the aussie dollar. there is some uncertainty on when the fed might move. cpi coming out at the end of this month, and that will be important in the lead up to the august r.b.i. meeting. investors likere the yield story very much. angie: absolutely, until rba cuts, which is expected in august, do think that will shore up that aussie dollar a little bit? , if you lookrket for theutures market rba interest rate curve, it is split right down the middle on whether the rba will cut in august, so pretty much hanging on to how low this cpi might be, particularly the statistically modified underlying rate. the potential for the aussie

dollar to move two ways. if they do end up cutting, the market will be thinking whether it is the last one or more beyond that. number, theigher aussie given the current mood would power on. that is 10 days from now. dollarok, but the aussie , as he gets higher, that has to bring some risks to the austrian economic outlook overall? is a long game, isn't it? at the are looking aussie dollar and its affect on the economy, it happens over time. we have seen a push up in the aussie, but can't forget that the commodity price story has been a little bit more supportive, very recently, to, so i would be more interested in the base metals complex,

particularly iron or prices, pushing up toward $60 a time. -- a time. on. gold prices have seemed more stable as of late as well. that is suggesting that downside risks in terms of trade. angie: you say iron ore still has a way to go. it was very strong in the first half. the second half is questionable with china slowdown. david: that is the $64,000 .uestion , whetherh reflation that will continue on, how much legs it has got. it is interesting that iron ore has pushed up to $60 in an environment when supply has been more than abundant.

shipments push through $40 in that so it is suggestive china's demand is probably remaining resilient, probably given thatver effect japanese stimulus will be a reality and higher infrastructure spending in japan. angie: where do you see are strays economy and the second half this year as it relates to copper prices? we have seen it pushed out. gold is a super safety haven play as people flee to gold. that will be a nice boon for producers there. is that going to help support this transitional economy? does,, if we do see some more resilience and stability and the resources sector, i think the market is

suspecting that that will continue to be a head wind to the economy's growth. we have the winding down of construction from the spending on the new projects, so that will continue to be a head when, but the commodity price to rate might be a little supportive and we see a continuation of the growth we have seen and the non-mining economy, which is growing faster than the economy in general. you would expect that generally to be supportive of the economy's growth rate. question, but not least, non-mining gdp growth, how is that faring? david: sorry, could you repeat that? angie: non-mining sector, how is that faring? as it plays into gdp. david: it has been growing at 3% , and spending is growing faster

than that in the nonmining economy. the mining story is interesting, cutting back on spending investment, contracts and the like, but mining output is rising, so it depends on how these things are defined, but certainly activity in that sector has been coming back, but we are certainly seeing it in services, tourism, even in , more, manufacturing activity over the past 6-9 months. angie: all right, maybe that aussie dollar could rear and ugly head there. as you said, it is a long game. china prepares second quarter growth figures, can it remain on target? we will hear from stephen roach next. this is bloomberg. ♪

angie: this is "trending business". i am angie lau. hasnikkei 225 swinging asian stocks move between gains and losses. as the yen hold steady at 104. in sydney, that better expected -- than expected jobs report for june. 8000 jobs over all in june created. got gdppore, we also growth coming out, not enough to pull investors out of doldrums and negative territory in singapore. in hong kong, the clouds are gathering over big warrior harbor. -- over victoria harbour. showumbers expected to growth slowing in the third

ask for a take on what is in store. >> >> we are in an unusually leak -- week time of global economic activity, especially in the advanced economies of the world, major markets for export led economies like china, so the challenge for china and other export led economies is to rebalance towards more internal demand, and china has been focused on that for about five years, but progress has been on even and needs to intensify. that focus is indicated in its recent five-year plan. maintain that't growth of 6.5% while doing this restructuring or rebalancing, and also ensuring financial stability, right? what can the pboc do? >> i think it is debatable.

china is capable of still growing in a 6% to 7% growth channel while rebalancing. it has shifted its growth impetus dramatically away from the old industrial sectors towards more labor-intensive services, so that is boosting gdp and also holding the line on labor absorption and unemployment growth, so i am hopeful that china can walk and whichum at the same time, is something other economies really struggle with. angie: ok, so they can walk and two gum at the same time, but i want to ask about as oe reforms. we have seen a change in language coming from the president, saying we should make them bigger, better, and stronger with full confidence. does this signal a setback to

you on china's plans to boost efficiency? >> well look, china has to clarify its state owned enterprises strategy. you are right. they talk about supply-side initiatives and taking excess capacity and headcount out of industries like steel and coal, then they talk about maintaining their unswerving support for state owned assets. talking out of both sides of their mouth. the goal here is i think to really focus on a leaner, more productivity-driven state owned enterprise sector and provide ample in courage meant for private industry to fill the void as these excesses are taken out. angie: coming up in the next hour of "trending business",

japanese shares swing as investors await stimulus. form of come in the money falling from the sky, may thrown out of helicopters? we will be live in tokyo for the latest. this is bloomberg. ♪

♪ announcer: from our studios in new york city, this is "charlie rose." charlie: welcome to the program once again. we look at dallas in the aftermath of the horrific events there. today, president obama and former president bush spoke at a memorial service. here is coverage from cbs evening news with scott kelly. >> our sorrow can make us a better country. those are the words the president this afternoon. he eulogized the slain police officers of dallas, pc's this moment of national attention to play for reason for both sides of the racial divide.