♪ it is thursday the 21st of july. i am rishaad salamat. this is bloomberg. ♪ this is "trending business". >♪ we will be visiting singapore and sydney this hour. stocks up to a fresh 2016 high. investors feeling positive about the economy. the u.s. justice department alleged money trail of stolen billions from wall

street and beyond. calls for a truce and china's ridesharing wars. do let us know what you think of our top stories. follow me on twitter @rishaadtv, and include #trendingbusiness. open of the session and hong kong and shanghai in 30 minutes. and feel thelook puls of investor sentiment. david: what we have seen since brexit his investors are shrugging off any reason to begin selling. ,hat is the main story expectations that the japan will move on fiscal stimulants, new

zealand will cut next month, a the rbnz willt move. japan getting a decent bid after the yen back above 107, gold on the way down. safe haven assets being set aside at the moment. weakness across these two markets opening up. kong, chances are that this becomes the next member of the bull market. it is a 20% threshold. that is your trough right there. something to keep in mind as we make our way throughout the trading day.

the biggest story across markets is this. obviously it has died down a little bit. mcdonald's is feeling the love, .% up, lots of reports on why rishaad: right, breaking news, elon musk releasing his master plan for tesla. rosalind: this much awaited teasinglan, he has been supporters and followers for weeks. he has released it on the tesla website. how toxplaining accelerate the advent of sustainable energy. 's master plan is to create

solar roofs with battery storage -- his master plan is to create solar roots with battery storage. it will enable your card to make money for you when you are not using it. to make money for you when you're not using it. there have been some speculation that he would come out with a mass vehicle to go into the public transport sector. at analyst was looking mobility services, electric autonomous vehicles. others saying this is the way to connect the dots between solar,

electric vehicles, and sustainability in general. rishaad: more on that story later in the program. allegedn government has cooperate as u.s. investigators seek to seize $1 billion in assets. .t is linked to 1mdb let's get more on this from our southeast asia correspondent. what do we know so far? >> reaction from the malaysian government says it will still -- 1mdb, that is that 1mdb is still under investigation. the opposition pressing for clarity, asking the prime minister, chairman of 1mdb, to come clean. all this hot on the heels of u.s. prosecutors taking action to seize assets worth $1

billion. they have filed civil lawsuits. here is what loretta lynch had to say. well, the fbi says the malaysian people were defrauded on an enormous scale, very strong words, at least 3.5 billion dollars alleged to have been misappropriated, one billion dollars laundered through the u.s. banking system. rishaad: let's just look at this. has anybody been named in this u.s. complaint? are there any claims as to who was involved? mentioned, the stepson of the malaysian prime minister. he partly owns red granite pictures, which backed "wolf on wall street" starring leonardo dicaprio.

the other person named is a malaysian financier. known for partying for paris hilton and lindsay lohan. the two of them named in the complaint. rishaad: swiss banks seeking help from the u.s. what do we know there? bsi wasow that involved. its operations in the lion city have been shut down. u.s. prosecutors have highlighted other banks linked to the 1mdb scandal. swiss prosecutors are seeking help from their u.s. counterparts to gather the necessary information. 1mdb is under multiple investigations across the world.

the money trail goes back to malaysia, singapore, switzerland, hong kong, u.s., and the caribbean. one year on, still unraveling. rishaad: thanks a lot for that on this developing story. nott, oil search deciding to submit a counter interoil proposal for -- counterproposal for interoil. dan joins us live from singapore. why did oil search drop out? >> oil search might actually win by losing here. oil search is part of two different gas projects in papua new guinea. they work with exxon on an lng project. on another, they are involved , andtotal and interoil their whole purpose in making to find a way

to integrate and make some money. easier for those two projects to be integrated. they get the benefits of the acquisition without the eluded interoil stock effects to without the diluted stock effects to purchase interoil. it is a pretty strong statement. the natural gas world is facing a big oversupply, projects are being shelved or delayed all over the world. for an oil major like exxon to up this offer and show this much , itrest in papua new guinea shows they think that gas reserves will be cheap to develop and export and can compete at these low lng prices. the projectseans

get accelerated, and there is more feeling they will move forward now than if exxon had not made the bid. rishaad: we will get more on the chief executive at oil search and just about an hour. right, events in asia. the turkish lira taking a huge hit. for that story and others, here is the roundup. turkey has declared a three-month state of emergency the president pursues those responsible for last week's failed military coup. army units will take orders from provincial governors, meeting the country will not be under military rule. low.ira hit an all-time they said the threat was not over. died since the push by a faction of turkey's armed forces. thousands of officers, judges,

and prosecutors have been arrested. uber investors are calling for a truce in the costly fight in china. several institutional investors want uber to sign a partnership agreement. they have discussed the potential deal they would negotiate. they fight for dominance in the world's egg is marketplace. declaredpreviously spending $1 billion a year to expand in china, and both companies have instances for drivers and users. -- have incentives for drivers and users. and hsbc executive has been granted bail after being arrested for the fbi as he planned to fly out of jfk. foreignlobal head of exchange in london appeared in court and had to surrender his export -- passport.

manipulatingges of the pound to take advantage of information. he is accused of front running the currency transaction in 2011, $8 million in the bank. he left the bank two years ago and remains in the u.k.. he is expected to face extradition from the u.s.. the pair are the first individuals to be charged in the long running inquiry. rishaad: thanks. still ahead, targeting kfc and apple over the dispute and the south china sea. details of that later on. gold, our next guest saying it is a good hedge be the biggest surprise for the market this year. ♪

asia-pacific stocks at

2016 highs. wall street setting a string of records. r the good times back for equity investors? -- are the good times back for equity investors? we see these record highs on wall street in a year when i so much news. fewer see any clarity and potholes as we go to the second half? as you said, the first half felt like two years already. it has been a long first half, very turbulent. onseems like we are back track. it was a very volatile first half, let by the essential policy mistake by the fed, raising rates into a rising u.s. dollar.

we had a few disasters as a wake-up call to the fed, and now the penny has dropped. they realize that less is more. equities,k at u.s. after 15 months of volatility, new highs. from a trend point of view, we are back on. is, does thishing tide really lift all the boats? at the end of the day, do you see any asset allocation moving in favor rather than coming here in the asia-pacific. >> it is a great question. hadbull market we have since 2009 really has lifted heavy teches and stocks all the way up. so the question is the new phase of the cyclical bull market, is it going to lift up the rest,

the boats that have been left behind, asian and european equities, global banks. if you look at the pessimism around those areas, the valuation buffers are built into those markets, and the fact that now we realize that china is not falling apart to china is stabilizing, and emerging market countries are starting to heal as well. led byl market will be areas, energyld stocks, asian and european equities, and that's the areas where we have investment in. we are also looking at global banks, which have been sold down quite heavily. rishaad: i have to ask you to hang on. we have breaking news. the yuan fix, david is having a look. what do we have? , the: the past two days pbo c has come out with a

surprise, fixing stronger than what most bank models have suggested. against the yuan 6.6872 against the u.s. dollar. let me check where we are as far as the spot rate is confirmed that concern. -- concerned. you see the spike right there. there we go. so just about unchanged at the moment. not really saying anything just yet. we have to wait a few minutes for an update. again, the message is fairly bear that the pboc may spurring speculation they are defending because fixing is below for a third straight day. saying, as david was

six point seven, is that the line in the sand? >> i think it is. also from my market reaction point of view, what we had last year was a total surprise, little communication, sudden evaluation, which created panic. model driven,s prices driven devaluation of the currency against a basket. it is very different. reserve in at the fx china, they have stabilized even though the yuan is breaking into new lows. while we may have the same kind it isnd, but the point is not posing the same panic it did earlier in the year or late last year, so it is different. stabilizing.is this brings us to what

you believe is the biggest surprise of the year. i don't disagree with you, and that is the price of gold. does that rally have more legs? >> it does. i think it does. biggest coststhe to having gold was the cost to carry. bondith 30% of gold indices and negative yield territory, there is not much cost of carry. gold is a great hedge. number two bank, people are underestimating -- number two bank, people are underestimating the inflation pickup. the inflation is picking up in the u.s., and it won't be too far behind in other countries. ,old is a great inflation hedge so hedge against attentional volatility and geopolitical

risks, but also as a hedge against inflation. rishaad: thanks a lot for that. great talking to you. right, quick check on the latest this is flash headlines. meanside in energy prices australia's second-biggest producer made less. 8% inwere -- they slid the second quarter. woodside reported its worst result in 13 years, annual profit fell. woodside stock has plunge. right now shares on the way up by two thirds of 1% in what is a rising market. buy a rail operator for nearly $2 billion. it is seeking to take the company private after a series of service interruptions. it is expected to become a november.by

volkswagen shares paring gains. first half earnings exceeded .25et expectations, eight billion dollars operate -- $8.25 billion for operating profit. that included the $2.4 billion put aside for provision with impending lawsuits in the u.s.. ankswagen in that predicting increase in profit as it tries to recover from the scandal there. for mho come, the search 370. have investigators been looking at the wrong place all the time? we will take you to sydney to try and find out. this is bloomberg. ♪

withad: you are back

"trending business". i am rishaad salamat. mh 370.ing search for they found no trace of the flight the disappeared in 2014. we have been following this story from the get-go. a piece whether they are looking in the right place. >> that's right. i guess that is the next question, isn't it? we have almost finished the a nont search, which is mas in its expanse of southern indian ocean. present -- they are 90% through that. they are now saying that we might be looking in the wrong place all along. this of course has huge implications for the search zone. rishaad: now the thing is, what

are people telling you about where else this aircraft could actually be? yeah, of course you know there are many conspiracy theories about where this aircraft is, but the science of the search all indicated that the aircraft did fly south towards the southern indian ocean. the big question is, and the real black spot in this investigation for the last few flight.of that fight -- investigators are in the dark about what went on. they have only been able to make their best guess. the current assumption was the aircraft was not in control when it fell into the ocean. no one was in the seat. if you assume that someone was, then it could have glided hundreds of kilometers further, and that is the conclusion that some analysts are saying, that the aircraft is way beyond the limits of of the current search

sewn in an area almost as big as california. rishaad: great talking to you. next, uber investors calling for a truce and china. find out what could be on the bargaining table. that is just ahead. ♪

♪ rishaad: a look at our top stories. of aang seng on the verge bull market as asia keeps the global equity rally alive. earnings putting the wind back in the sales, hoping to sustain a run that has added $4.5 trillion to world markets in three weeks. three-monthing a state of emergency as the government pursues those responsible for a failed military coup.

president blame the uprising on the u.s. cleric. 9000 people are arrested and another 50,000 lost their jobs in the country. 3 wall st investment banks have/compensation by the most in four years. goldman sachs, j.p. morgan chase, and morgan stanley cutting pay by 17% to shore up profit there. goldman reducing by almost 30%. straight to the markets, here's david. weeks, from 100 for 107.en to a six-week high for dollar-yen. talk of stimulus again in japan,

this time fiscal. possibly ¥20 trillion. i won't get into details about how that will be allocated, but that said, the government will seek approval of the plan in early august, ¥20 trillion is ok, $185 billion. it's really big. shanghai composite opening up now. has been on the up, so we are now at an april high. billion, so 881 million renminbi to be exact. that's basically 130 billion u.s. dollars.

hang seng index, that's a market you want to watch. msci hong kong intraday bull market yesterday. 22,931. asia looking like this. , roughlyin japan expected as well in new zealand and australia, monetary stimulus that is. it will be interesting to see when they bring those rates down. were looking at a 92% chance ont the rbnz takes it down august 11. it will be interesting to see how they control speculation in the property market. let's see how all this plays out.

asia looking like this, up about 6/10 of 1%, highest level so far this year. not bad given all the challenges for the global economy. rishaad: thank you, david. let's look at how china has managed to weaken its currency -- so muchting much as a squeak out of its trading rivals. it has triggered cries of market manipulation and interference. g20 finance meeting taking place this weekend, they don't seem to be worried about the yuan anymore. it is a curious situation. when china last hosted the g-20, there was concerned that china was planning a steep device wishon and global markets were on the edge.

all forward, and the yuan 3% against the dollar, 6% against the basket. ase people have described it a stealth device way should, but there is no finger wagging. there therestory is is so much money around the world, so china is going into this g-20 as the chair and a comfortable position. it will not get too much criticism of its yuan policy even though the g-20 will reaffirm they don't like competitive delay way she's. rishaad: outside of china, will brexit feature into these talks? revive global growth. take money on the side, pressure off the central banks. , we do not know how it

will play out, but that is a concern even if market volatility has dissipated. the italian banking situation is deathly a concern in terms of its impact on the eurozone. worries for the emerging markets, geopolitical risk, turkey, and, and, and. what are the chances of just a bland communiqué at the end of it all? >> it is a midterm catch up. we might see some new language or extra focus on anti-terror financing. this has been a g-20 priority. some progress on creating a new global safety net for the financial system. down towhen it comes it, it will be another piece of paper, laws, doing more to promote global growth, but when

they go back to their parliaments, we will have to see if they deliver on that promise. rishaad: thank you. stronglyk about rbnz, signaling more cuts to its cash rate in the pipeline. the bank releasing an unscheduled update on the economy. paul allen has a look at what the government has been saying. paul: sometimes we have to decode what central banks governors say, but not in this case. it seems likely for -- further policy easing will be required. graham wheeler wants to get the inflation rate between 1% and 3%. inflation in new zealand has been below 1% for some months, but the cash rate, 2.25 percent, the next opportunity to do something about that is on august 11, and majority of economists think the cash rate will be going down on that day. a rate cutviously

would risk is stoking new zealand's red-hot housing market , but i think he has taken some steps to try and address this, but some have said he has not gone far enough. paul: not enough. we have had the ceo in new a higheraying that loan to value ratio would have been needed. graham wheeler telling investors they would need a 40% deposit. rishaad: that's just it, we have already seen him achieving one of his aims, graham wheeler, the new zealand dollar. a bit of slippage there. just by releasing this update this morning, he has achieved one of those goals. exchange ratehe is needed, and that's what he

got. the new zealand dollar fell two thirds of 1%, although it has recovered. past look at it over the 12 months, you can see it has been climbing ever steadily against the u.s. dollar, just pulling back in the past few days. graham wheeler saying the new zealand dollar is holding down the tradable goods inflation, so he is doing what he can to keep that train going. all right. thanks a lot for that. paul allen in sydney for us good let's check on some other stories. theresa may is traveling to paris on thursday, talking brexit with the german chancellor. the german chancellor said the u.k. must stick to the rules to leave the european union, ruling out talks before britain invokes article 50. theresa may says that will not be happening until next year. with myt to work colleagues and a constructive spirit to make this a sensible

and orderly departure. time tos will need prepare for these negotiations, and the will not invoke article 50 and tell our objectives are clear. that is why i have said it will not happen before the end of this year. rishaad: the pokémon juggernaut rolls on. developing a live action movie franchise to be based on pikachu. it is tracking production to start this year. announcing its own tie up with pokémon go, nintendo's market cap hit $38 billion. uber's big investors appear to have had enough of its costly fight and china. they are pushing management is signed a partnership agreement with didi. our news managing editor joins us live from tokyo. uber investors pushing

for a truce? are they throwing in the towel? the mostas been one of romantic battles in the technology industry. uber is the most highly valued start up in technology, and didi is not far behind. year and raisest more than $1 billion, the ceo saying china would become its most important market. they set up a separate entity to battle against didi in that market. it has been fast growing and challenging, in that uber had to , and it wasivers easy to get free rides in china as the companies bent its marketing dollars. now several investors at uber are pressing for some kind of market.th didi in that it is not clear what form that would take. it's not clear that executives of uber and didi would sign on

to any deal. they want some kind of true's. truce.: -- some kind of rishaad: what kind of influence can they bring to bear? >> it is hard to tell what they could do at this point. uber and didi would have to agree to a deal. at this point, there is no sign they are ready for any kind of deal. have been other startups that have competed fiercely with each other did not -- the did not want to combine and were pressured by strategic investors. this happened early on with didi . a combined with one of its early rivals. other cases, too, so it's not clear what kind of leverage these investors would have with uber at this point, but they would like to see those losses come down in some way. at the end of

this, does the management want to cut a deal and what is the sense that you are getting on that? at this point, it is not clear exactly what they would like to do. uber has been expanding globally, china is an important market for them. it is not clear they would be willing to cut any didi kind of deal. didi-- to cut any kind of deal. cut deals with several companies, so they may be more determined to gain market share on their own rather than cut a deal. rishaad: thank you very much indeed for that. a billionaire says his goal to grow the family business tenfold in 10 years is still on track despite india's slow down. to bloomberg and

mumbai. she asked him how he plans to continue his company's rapid growth rate. achieveds to be partly organically by normal growth, and partly through acquisitions. now i expect the indian economy will do well. we are expecting good monsoons. bad monsoons that affected the growth rate here. we are hoping gst will go will go through. all in all, i expect strong growth in india, and our growth targets will be achieved. india, ang outside of three by three strategy, where you have focused on africa, asia, and latin america in hair care and home products.

white those areas and those markets? >> those are product areas where we have strength. those our product areas where we have developed affordable products. penetration of consumer products in india is low. consumer products penetration is also low in other countries. opportunities for growth are huge. we have great knowledge of these fields and are doing well in india in these fields, and we think we can do well in other developing companies. years, we have0 acquired local businesses that fit into this strategy and have been able to build a strong business together. >> specifically within the group of companies, any ipo possibly's? >> we have no immediate plans for an ipo, but there might be time in ar some private company that is growing rapidly, and we might look at taking it public. >> any specific acquisition

targets? >> no, no specific targets, but we are keen to grow organically. next, results, up for until and microsoft, the growing importance of the cloud and the internet of things. ♪

a quick check of the latest business flash headlines. shares of lufthansa dropping after the carrier cut its profit forecast for the year, expecting weaker demand for european travel after terrorist attacks. revenue is expected to fall by 8% to 9% in the second half. the airlines index is down after that announcement.

. airlinesu.s. america allowed to take daytime flights instead of the current unpopular overnight journeys. they will begin flights from minneapolis. india clearing the way for apple to open its first retail store after repeated delays. the government is set to approve an extension of local sourcing rules that have kept apple out of the market. required toies are by at least 30% of components locally, but india will make an exception. let's keep the tech theme going. givingosting a drop, rise to concern that the server chip division will not be able to make up for weakness in the pc market.

the vice president head of mobility and the internet of things joins us from singapore. thank you for joining us. let's get a word on what you think of intel strategy right now. >> intel is looking at the future, the internet of things that will drive their revenue stream, but they are not sure where it will come from. ofy are investing in a lot different areas, wearables, visual solutions, storage, and especially the platform space, which would support all these offerings. rishaad: with that all in mind, we talk about the internet of things, but tell us what it means. >> it is one of these terms the industry has built a lot of hype around. it's no different than what we have been doing, leveraging new technology to improve a process. internet of things is connecting devices, smart

watch, car, light switch, and allow it to transmit data over a network and automate a process around it. a light switch will automatically turn itself off. the idea is we don't need human interaction. we allow these devices to talk to each other and automate the process. ashaad: so this produces wealth of opportunities, one that saw tank this week looked softbank this week looked at. what are your thoughts on softbank? say it is not in this space. you have to look at the future of softbank. are ai robots, which is quite interesting. a lot of the chips that amd

makes it would support the rise in artificial intelligence that softbank is banking on. it got amd on a really decent price as result of the decline in the pound. presentation,ot a i think it is called, what is it again? and stopor two minutes chasing pokémon and you will tell us what is hot in the space. space, what is hot in the is a lot of stuff below the surface. we have built up a lot of hype around the internet of things, but we don't see a lot of it. so a lot of these initiatives from smart inner prices is about cost-cutting. tois about finding ways reduce your costs through predictive analytics, where you can monitor maintenance equipment. it is about smart building solutions that will drive energy.

it's a lot easier to drive a business case on something that will save money than these future scenarios that may or may not produce revenues in the future. you want to know what is not hot? buzz abouteen big s.w-power wan instead of working with a mobile operator, you can go into this , and theed spectrum idea is these are iot dedicated networks, which means they support low bandwidth type solutions, a very and expensive network to deploy that will allow people to connect more things as the cost associated with it are so low. timead: that's all we have for. thank you for joining us. we have to take a break t.

the chinese company getting militant on mobile. ♪

right, a look at what is going on social media wise. some chinese tech companies warning employees that if they buy non-patriotic products, they could be fired. juliette: this is all about patriotism and claims that apple is anti-chinese. that only has 50 employees has issued a notice to employees saying that if anybody buys an iphone seven in september, they will be fired effective immediately and no readmission. they say they will help out employees who have the other models of iphones and give them a bonus in order for them to buy chinese-operated mobile phones. one person has said why would you bother to buy an expensive

iphone and instead be a little bit more patriotic? rishaad: it is now extending to rights at kfc branches. >> kfc has 4000 branches. there have been patriotism rights coming through. people are smashing their iphones. protesting andre smashing their iphones, a two in one solution. andhey are saying that koc apple are symbols of the u.s.. this has to do with claims about the south china sea. chinese state media has said this is the wrong way to go about it. they say it is doing a disservice to the nation, these protests. you very much, indeed. we have to take a break.

on the other side, heading to cleveland, ohio to hear from donald trump vice presidential pick, mike pence, who is hoping to push a message of party unity. ♪

rishaad: this is "trending business" with me, rishaad salamat. we are going to be taking you to singapore. asia pacific stocks, we have strong earnings. investors are feeling positive about the economy as well as stimulus packages. electric trucks, buses, safe autopilots. elon musk unveiling his plan.

a money trail of stolen billions kuala lumpur. the jakarta session is getting underway. david looking at the state of play when it comes to the market. david: something for the bulls o put their hats on today. bank indonesia is expected to ove on the reference rate. shares are up. not surprising giving -- given a sea of green.