ts bestheaded for i weekly gain since 2009. optimism that further fiscal stimulus is coming. mine is going up. the messaging apps soaring 50% in its tokyo debut. it is a vote of confidence for text biggest ipo of the -- tech's biggest ipo of the year. you can let us know what you think by following us on twitter. don't forget to include #trendingbusiness. gdp crossing the bloomberg. reporter: gdp coming up at 6.7% in the second quarter. year-over-year, the consensus thisate of 6.6% stop what -- 6.6. what the 6.7% mean? it is the estimate of the previous quarter. , also aover quarter

pickup. we got 120% from the first quarter to the second quarter. we are expecting 1.6%, so there is a little bits of momentum. the chinese have revised their quarter over quarter figure for the first quarter from -- quarter from -- quarter to 1.2%. production better than expected in june, six point 2%. we were expecting 5.9%. it is also better than may, 6%. this was the highest number since march of 6.8 percent. retail sales better than expected, 10.6%. we were expecting 9.9%. the previous month was 10%. this is the highest for retail sales since december. retail beat estimates, industrial production beat estimates. urban investment coming below estimates, 9%.

to june, up 9%. we were expecting 9.4%. the previous month was 9.6%. it is the lowest number since the year 2000, but this is a much larger economy, so you have to look at the base effect of fiscal spending. fiscal spending in june was up 19.9%. wrap thism going to up slightly better than expected. 6.7 percent growth year-over-year in the second quarter. >> better than worse. let's get the market reaction. juliette, how's it looking? >> have a look at this spike in the aussie dollar. 1%was down one quarter of before those numbers dropped a couple of minutes ago. it was flash from yesterday's

close, but it has fallen a little bit again, down by 1/10 of 1%. that being spied on that better than expected number of 6.7%, as steve was missing -- as steve was mentioning. the shanghai composite was flat before the numbers came through. it is now up by 2/10 of 1%. there are technical signals that this market is overboard, but we are seeing investors get back into it today. the hang seng is underperforming the region. it is pretty flat at the moment. 1%, so itn by 2/10 of has reversed some of those losses on the back of the data. by 1%.ia is at -- is up having a look at the nikkei, it is up 8/10 of 1%, adding to the 8% gain at already has had so far this week.

japanese shares are now holding a five-week eyes. highs.ive-week the longest rally since november. region,e around the things are looking very positive. asian stock on track for the best week in three months. looking quite good. what's have a look at how some of the commodity players are going in this session. we have seen a comeback coming through, a little bit of weakness, i should say, coming through in the crude price in the asian session, down 1%, holding it for $5.21. -- $45.21. is wakening aen little bit. it is getting a little bit of that upside to the japanese equity market, holding it 105.02. down by 6/10 of 1%. downpore dollar is also

one third of 1%. the dollar is 44.41. these have been a little bit oversold, but in terms of the equity market, looking incredibly strong. as i mentioned, a solid rally for asian equities on the back of those record highs in the u.s., and we are holding at the best gain in three months. >> text for that. localng news, china's currency loan for june came in at 1.3 trillion yuan, bigger than estimates, higher than yuan.s 98.5 billion we have seen credit fueled growth in china continue, including liquidity supply in terms of credit. again, china june new yuan coming in at 1.3 8 trillion

yuan, beating estimates. let's go back to our top story this morning, the attack in the south of france. a truck drove into a crowd, killing at least 77 people. hasident francois hollande spoken in paris, saying 10,000 security forces will be deployed, including army reservists. us fromcencio joins paris with more. what else did the president say? said,top of what you just he is the clearing a state of emergency that he initiated last november during the bottom on attacks will be -- the by tech attacks will be extended by three months, until october 26. the country will be under a state of emergency for nearly a year. on top of that, the president also referenced the threat of islamic terrorism during his

remarks that he just finish up in the past few minutes. he spoke about 20 minutes ago, started speaking about 20 minutes ago, at 3:45 a.m. local time. it is unclear if he is painting a broad swath of security, angie , or if there is something he has been briefed on that is unbeknownst to the public, at least in terms of the identity or religion with regards to the attacker. as far as we know, we don't know his religion, we don't know his motivation, and we don't know many other things about that attacker. lot, it issident a going -- hollande, is going to be a very short night. past hour orn the hour in 15 minutes or so, and he is scheduled for a security meeting at 9:00 a.m. or earlier. he is still tweaking, -- eting that france is

mournful right now, but she says that she is strong and will always be better than fanatics who want to hurt the country. still putting forward a very strong face to the country and the world in light of these events. the biggest attack on the country since bought on on onember 13 of -- bataclan november 13 of last year. theret is the problem, does not seem to be a control of the situation as these attacks continue. the french president meeting with the interior ministry. what exactly -- we know security -- but what about the anti-terror police, the , perhapsor officials the kind of investigations we are not aware of until we see some neighborhood being cordoned off because of a crackdown? right, many good questions,

very few answers with regards to those. with regards to the events in nice, we are unsure if it was a wolf attacker or if there were accomplices. one thing i do want to point out, in the video we have been showing, there is a white truck that can be seen basically ,lowing down revelers in nice and the nice authorities have said that truck actually contained arms as well as grenades. that at leastying one person had the intent to kill and damage even further. >> ramy, thank you so much for that. just after 4:00 in the morning for you in paris. the latest from the terror attacks in france.

let's take a look at some of the other stories following for you today. -- we are following for you today. >> online is the corniest way to describe what is happening. we are watching shares 30 minutes back. 41%,ntly, shares are up as high -- which were as 49% at one point. the offering price is still quite good. tokyo, they just writing that opening bell a few hours back. a dual listing. in new york, it also closed higher, 26%. not the high for today, but let's not be greedy. higher than the ipo price. the company is looking to use h to influence other

priority markets. you are looking at its market share across the world. you are looking at japan, taiwan , thailand, and indonesia. those are the priority markets. tech listingiggest this year, 10 times larger than the next one. a fairly impressive first day. let's move things along and have a look at shares of fast retailing. also on a chair this friday. better by 16%. largest jump in 13 years. income talking as -- income topping estimates despite the fact that the company lowered its four-year guidance on that income. -- net income. it peaked at ¥60,000 a share this time 12 months ago. we are still down 43%.

just in case you think it is cheap, you are looking to get in, here is what analysts are saying. uy,are looking at 5 by three hold, one cell. consensus reading 3.42, some of the most bullish, more of a hold. 32,807 yen aat share, about ¥700 higher than current levels. what's talk about nintendo. the magical run continues. shares up 4% or 5%. what are we doing now? 66%. tos actually takes gain north of 80%, taking shares back to the highest level since of0, down to the success pokemon go, which launched in the u.k. on thursday.

analysts are looking at this, and they basically see nintendo and its partners may have actually come up with a formula that is shaping up to be the next big thing in smartphones. while that is a new customer base, the company is also reaching out to the old-ish .rowd who remembered this you are looking at the nintendo entertainment system. the new version is coming out soon with 30 built-in games, and it will soon be available. nintendo closing to 200 times earnings at the moment. angie. >> x for that. coming up, australia's central bank says it is considering a multi-pronged stimulus plan. we will bring you that bloomberg scoop later. plus, we are going to get jpmorgan's take on the latest gdp numbers of china. this is bloomberg. ♪

china's gdp jumped 6.7% from a year earlier. let's analyze these numbers with the chief economist of jpmorgan. growth betterrter than expected as well. it showed more strength than expected. guest: yes. if you look at the gdp numbers, sequential growth in the second quarter is much stronger than the first quarter, so that suggests the economy is recovering after the rather weak start of this year. angie: a weak start buffered by credit, and it has worked. guest: if you look at the policy from the second half of last year, if you look at fiscal policy, fiscal spending has been increased, and

credit growth has started a pickup from the second half of last year. all of these adjustments show up in the data, starting with march. angie: the data for june showing loan growth at 123 trillion, above what the expectation was for one trillion. that is more than the 985 billion that was flowing through. why is the pboc doing this? do they see weakness that they need to make sure that they shore up? much strongera is than the market expected. but don't forget the starting point. first quarter, china has an historical high, and that -- in april and may for two months, consecutive months, were much weaker than expected, so there is adjustment there. the reading is that the pboc does not want to tighten. they do not want to give the marketing -- market impression that the stimulus is coming. market policy is more neutral.

where is that money flowing into? are we still talking about the overcapacity sectors that we h d ve yet to see the kind of contractions promise, or are they flowing into new, like tech and digital and health? guest: very interesting question. ,f you look at the investments numbers are much weaker than the market expected. overall investment is coming down. if you look at the details, manufacturing investment continues to be weak. real and -- real estate investment continues to be strong. is high-tech,rea ,ut also infrastructure related like infrastructure pipelines and the new energy. these are the areas where the

government is spending big money. angie: china can sometimes be accused of functioning in its own bubble, it's a vacuum. it is very domestic-centric and driven. of the latest global round of uncertainty, including brexit and concerns about global growth, factoring into pboc policy? guest: the policy is mainly domestic. you have the external environment not very potent for china. that puts more pressure on the domestic stabilization effort and restructuring efforts. if you look at the government policy, response policy, one area that will probably be affected is economic policy. it has been depreciating against the u.s. dollar. angie: intentionally, you think? guest: i think it is part of the adjustment. article arguing

that this is not by benchmark, there is some adjustment to be made. that's why the index came down to the 94, 95 level. angie: there is expectation that it could go seven to the u.s. dollar. guest: i don't think the chance is that high. yen isorecast -- the forecast to likely have depreciation against the u.s. dollar. at that time, we will talk more about volatility. this second of quarter gdp figure of 6.7%, we have been talking about the possibility of the china bank bailout in the next two years. aboute been talking concerns of shadow financing to the tune of north of 250% gdp in terms of debt pile.

are these things still a concern, or are they not being reflected in the numbers? guest: this definitely is a major concern in the coming years. a high death level and potential credit quality issue. the mpo official number has been moving up very quickly. external mpo is probably higher than the official in po figure. 150% ofe debt is about gdp, the highest if you look at the death level. quality is mainly concentrated in the overcapacity industries. the problem, the two intervene with each other. when the government is talking about overcapacity reduction, quality willoan fuel the leveling of the banking system. china needs to address that in the coming years. and not only growth. objective,ket policy

growth, restructuring, and stability. angie: thank you for getting of -- for joining us. it is good to get context. latest headlines coming out of france. interior minister saying now that 80 people are dead after that nice attack. the debt toll continues -- death toll continues to climb. emergency in absolute . police did neutralize the truck driver. video of thee truck riddled with bullets on report that police had shot into stopabin of that truck to the driver from killing more. a probe is going to take a look at that nice that -- if that nice attacker had accomplices. so far, it has been blamed on one driver, one truck, but there could be more involved. bloomberge to come on

television. you are watching "trending business." ♪ ♪

angie: the singapore exchange has reopened after trading was halted on thursday. it was the second disruption in the past year at sgx, prompting an apology from its chief executive officer. all systems go? does seem like it this morning, but it has been a huge hit. the view is that it could be a bigger problem facing sgx. it's systems may need scrutiny. still little clarity on what actually happened. x releasedall, sg

five statements. it said that during suspension, orders can be taken out, amended, so they will be matched only when the market reopens. -- been underther a new ceo for the past year. he took charge exactly a year ago yesterday, the day of the technical malfunction. predecessor left just a few months after he was forced to make a public apology because of two trading disruptions within one month. sgx was recommended by the authorities -- reprimanded by authorities, and another incident. angie: it's not the first time. certainly watching this as investors scratch their head as to exactly how and why it happened. haslinda, thank you so much. coming up, we will bring you the latest developments on the attack in nice with local

reaction. this is "bloomberg." ♪

♪ angie: the top stories trending this hour, the french president has extended a state of emergency for three more months and will do employ a next her 10,000 security forces after the attack in nice. the truck was driven into the crowd celebrating the best deal day holiday -- bastille day holiday. francois landes says all of -- francois hollande says all of france is under threat of terrorism.

in the second quarter, but makers stepped up -- bond makers stepped up policy board. after june6.7% retail eight estimates. -- b testaments. it raises questions about scalability. and finally, surging over 50% at its highest intraday, that is japan's trading to view, confidence. the messaging app raised 1.3 billion dollars after pricing and offering at the highest. it has two thirds of its stock in the u.s. and one third across asia. juliette with to a look at what else is moving the markets. juliette: it does not seem anything is going to stop this

risk on rally that we have seen across asia. let's have a look at the nikkei, up over 1%, more than 8% gained on these index so far this week. the strong performers is retail, up 16% on the back of the third-quarter numbers. that is his best game in seven years. japanese equity still waiting for details of prime minister abe's stimulus plan, but we do have been at a five-week high at the moment. the rally we have seen over the course of the week is the longest in japanese equities since november. in australia, that china gdp number better than expected. we are seeing the asx 200 holding at levels not seen since august. highs, very much holding onto and consolidating at the 5400. here in hong kong, the hang seng coming back after a bit of a shaky start. it is up 1/2 of 1%.

just looking at these key players, we are watching fast retailing, wind corp., look at that, up 41% after the 50% jump on its ipo. just looking at the weakness in the yen as well, which is giving a solid boost to japanese equities, it is now at that 106 handle, weakening further, down almost 1% against the dollar today. having a look at the commodity-based currencies, the aussie dollar had a bit of a job when we had the start coming through from china. you can see at has jumped by one half of 1% on that bigger than expected gdp figure.

.7665, a good boost. let's update you on the situation in nice, where a truck has driven into a crowd killing many. less than an hour ago, french president francois hollande made a televised address in which he that declared a state of emergency, and the interior minister taking questions. what is he saying? reporter: he said 80 people are dead after the attack in nice. absolutem are in emergency, critically wounded. he also said we are at war with terrorists, and they are working to identify the attacker and looking to whether the attacker has a caucasus earlier, we heard from francois hollande. extend the state

of emergency for three months, and it will keep 10,000 forces deployed. he also called a military reservists to help police. a state of emergency gives legal forces the right to conduct investigations and arrest suspects. hollande will travel to nice on friday. we do not know if the attacker was working alone or had accomplices. the paris prosecutor's office says the anti-terrorism unit will be looking into this attack. france has been on top of that over the last 18 months. it suffered multiple attacks. what we know about this particular attack is that it happened around 10:30 in france. there was a fireworks display in front of the bastille day celebrations. the car crashed into the strip running along the beach.

emergency crews arrived on the scene at the time. several hundred injured, 18 critical. ,olice have sealed off the area and soldiers have blocked the intersections, stopping people from getting close. that is the latest. angie: thank you so much for that. the attacks come as heads of state meet in mongolia's capital for the 11th asia-europe meetings. bloombergs tom kinsey is there for us. tom, what are the reactions from the leaders? reporter: the german delegation telling us that terrorism now has moved to the top of the agenda, and light of what has happened in france. early this morning, amongst the 50 or so heads of state and ministers, we did hear reaction and comments from the president of the european council. we also heard from the belgian

foreign minister. take a listen to what they had to say. day for france, for europe, for all of us here. and here in mongolia. it is a tragic part of the , people celebrating liberty, equality, and fraternity. we are united, the family of the victims, the french people, and in this fight, against violence and hatred. >> we will try to combine our efforts. that is the most important issue. have no real action presented at the level of the united nations, but we need to avoid terrorist attacks. [indiscernible] the belgian foreign

minister calling for more intelligence sharing between eu states and between the eu and asia. he was coming here to talk about radicalization anyway. dalton was a victim of a victim of attacks on march 22. we are expecting -- belgium was a victim of attacks on march 22. we are expecting more comments throughout the day here in mongolia. angie. angie: is this threatening to take over the rest of the agenda at the meeting? reporter: the germans said that it is now at the top of the agenda. i don't think it will take everything off the table. sea, china says it is not a forum for discussions. be brought up.to we have ministers from the anon, malaysia, and indonesia, so we are expecting discussion on

that. leaders pressure on acn to come out with a joint statement, and pressure on the eu to come out with a joint statement on the south china sea ruling. there are rumors in the german press that some of the eu are divided on this issue, and that is why it has taken some time to come out with a joint statement. we have also heard china scolding the australians for talking about more freedom and navigational operations in the south china sea, so that will be part of it. we are also expecting more bilateral's, possibly between merkel and medvedev, and also discussions about trade, global growth, and china. angie: tom mackenzie, thank you so much for that. let's get to tokyo, because line is surging in its debut. right now, it is up close to 42%. the japanese messaging app raised more than $1 billion in the biggest tech idea what the year. eugene at nara has been standing

by -- eugene has been standing by in tokyo. what are investors saying about this huge move today echo -- today? i think investors are saying a couple of things. not a huge surprise. we had written about this several days ahead, that demand would be very large from retail investors in japan. just in case some of the viewers are not familiar, retail investments in japan are a big segment of trading. about 20% of all turnover everyday, much larger than the u.s. and europe. presence, andg they also tend to like popular stocks, things that you might see on tv every day. something 61ne is million japanese people use every day, about half the population. it is a very timely, exciting topic, so a lot of retail investors rushed in, they are buying it up.

another thing investors are it "50%at at -- is that upher -- is that it opened about 50% higher. they have already trade all the to thethat were sold public. in afternoon trading, i am not sure it will make more exciting moves, but for now we see the initial reaction, which has been very big. angie: that's an amazing observation. it raised $1.3 billion. what is it going to do with that money? what is next for line? guest= that's exactly righ reporter: -- reporter: that's exactly right. the test is not what happens today, it is what happens next week. , those companies also did not have super strong growth potential. they ipo to very strongly and sold off. i think line is in a better position. but rather or not -- whether or

not lining keeps surging -- line keeps surging, like facebook, that is the question investors are looking at. long-term growth prospects are not great. it is japan-focused. if it wants to challenge facebook, it will have to go outside of japan. frankly, the investors i talk to you do not really know. i also don't really see how line will do that. pretty much all of us already have our chat apps that we use. why would anybody in the u.s., europe start using line right now? that is a good question. you have to wonder how much more growth there is in this country. try tot takeaway, line ipo two years ago in 2014. at the time, it had much stronger growth. it was adding a lot of users every month, and investors valued at at about $10 billion. its valuation right now, after a

jumped 40% this morning, is also about $10 billion. it kind of lost momentum. but, can they keep on growing, can it go much higher? that is a really good question. got 200 18 only million users. it already said in its roadshow adding users as much as it used to. it is slowing down. lots of good points. coming up, room for maneuver. australia's central bank says it is prepared to adopt an unconventional approach to monetary policy. details up next. ♪

to boostina's measures

the economy may be paying off. growth stabilized as lending and consumer spending perked up in june. what else does the data tell us? you.od morning, and i think it is mission accomplished in some respects. remember, the year started with total chaos in the markets. here we are midyear, and they appear to have stable retail sales. not bad given the sentiment on china over the last quarter. when you consider where we started and where we are now, it is a decent result, but we all know the old trick. angie: we saw it in the june inures for new yuan loans local terms. 1.3 trillion yuan. >> there are a lot of factors. the growth story is ok for now. can they continue to pay over

the first quarter of the second half of the year? that is the real question. the private side of china does not want to spend. they are not investing or expanding. as long as that imbalance is risk, that leads to leverage, debt. it is ok for now, but surely -- [indiscernible] angie: what are the problems with the flooding in china gecko -- china? one side of the ledger will deflationary rates lead to prices going up. the other side will to you it is a reconstruction effort. property -- , there is a potential rebound effect for gdp, so that is definitely on the watch for the third quarter.

angie: we have seen that in response to any kind of major disaster. thank you for that. the latest in china. over to australia, the rba has been studying the extreme policy options of some of its peers in case economic conditions force it into uncharted territory. for more, let's get to paul allen in sydney. everash rate drifting lower. what are some of these unconventional measures the rba would consider? the top of the listed seems to be balance sheet expansion. that would be the purchase of government assets or long-term repurchase deals. the rba also saying it is studying looking into corporate bonds. not terriblyet is large, but if it went down that path, it would be looking for government support. for foreign assets, that could be viewed internationally as exchange-rate-targeting,

although direct intervention would be something else that might be considered in an extreme scenario. those words are important to remember, because these models have been done under the circumstances of and extreme scenario. you have to head over to australia after a visit to tokyo maybe to get some ideas. -- alsoe also produced potential measures the rba is not so keen on, right? mentioned japan. one of their ideas has been negative rates. the rba calls that "unattractive" because of the risks. another is what they call pure helicopter money. it has it's a damages, what are the dissipated to his -- it has its advantages, one of the disadvantages is that it can become addictive. be onehyperinflation to of them, and it could get out of control. are things that bad in australia, that the rba might

actually deploy some of these measures? reporter: the assistant governor says the likelihood of the use of these measures will be very remote. got an, we've interesting situation, because things look good on the surface, three point 1% year on year growth, very strong in the weeloped world will stop as saw on thursday, unemployment is still under control at 520%. -- 5.8%. the wage growth and inflation is very low. we get our next read on that on july 22. if we have another deflationary quarter, analysts say the rba might cut again. they point out that as the cash rate creeps lower, the cash rate becomes less effective. angie: that's right, and that's when you have to do a lot more. paul allen, like that of sydney. text for that. -- life out of sydney. thanks for that.

england has surprised investors by leaving interest rates on hold. the monetary policy committee said more time was needed to express -- two look at brent its impact on the economy. impact on at brexit's the economy. the found -- the pound fell immediately following the decision. bankverseas arm of china's of communications is expected to have an ipo, which could raise up to $200 million. if the bank of communications does proceed with a plan, it would be the first of china's big five lenders to risk and investment banking unit. says incomecope interest and tax will rise to $436 million.

asia, upve rallied in about 40% in china. is fivew in sydney, it and 1/4% higher. coming up, details on what is being done to achieve this goal in the region. this is bloomberg. ♪

angie: the french president has extended the state of emergency for three months and will the employee and next or 10,000 security forces after what is now being called a terror attack in nice. for the past hour, the french interior minister says the death toll is 80 and another 18 people are critically injured. francois hollande says all of france's under threat of islamist terrorism. called for a special security meeting in a little over four hours. singapore's environment minister bloomberg it is willing to cooperate with indonesia on solving problems. >> indonesia is concerned.

they have to put an oversight where they did in concessions to we are nothat burning. i am happy there are good steps being taken. naming and shaming companies that do not share a mission with them, publicly -- reporter: is there enough political will? there will be less, and i believe it is because they have gotten -- they have done a good job, or the weather is on our side. it happens every time they need to clear a plantation to plant new crops. over the long-term, what we hope to see, looking together by

2020, is that this will be -- [indiscernible] haslinda: singapore has made clear it wants to prosecute those responsible for the hayes. it has yet to be successful. how difficult is it to put into place? >> legally, under the international convention, a country can take into task anyone who has hurt either the environment, people, or property on our land. put a notice to a number of directors of companies to show us they are actually doing something. it may not result in actual prosecution, but i am sure, from the signals we are getting, they are working. haslinda: is it true that the majority of those who have received the notices have yet to respond? sovereignty ofhe

indonesia, which means that we will not apprehend them and bring them back. we have the cooperation of india -- of indonesia to bring them. if they come to singapore, we get the process on the road. is it for "trending business," as we continue to watch france, as france while holland meets with his -- francois hollande meets with his interior ministry. stay tuned for "asia edge" now, vonne will have the top stories.

yvonne: we are live in hong kong, and the china gdp figures showing stabilization. we have seen shares of the hang seng up three quarters of 1%. we are live in hong kong. this is "asia edge." yvonne: the top stories this hour, state of emergency. france has the ploy to 10,000 security forces after a truck has plowed into a holiday crowd, killing 80 people.

a surge of asian stocks for the fifth day. the topix heading for its largest jump since 2009. and gdp growth beat estimates, easing fears. also, investors fall in love .ith line the messaging app soars 50% on its tokyo debut, and nearly 30% in new york. it is a vote of confidence for tax biggest ip -- tech's biggest ipo of the year. juliette: keeping an eye on the markets, what a week it has been for asian investors. the regional index is up for a three-month session. despite calls from big-name investors like larry fink and bill gross that this global equity rally has run too far too fast. japanese equities headed for their biggest weekly game since 2009. -- gain since 2009.