to a low notunge seen since 1989 as it warns of the financial impact of pokemon go. continued bites from apple's margaret -- market share. i'm juliette sally, keeping an eye on the market. investors trying to keep the risk on appetite alive. it is a week in hope of more stimulus. they have really moved in on the hang seng index in hong kong. at 11 these stocks remain month highs and the new zealand bulls continue to be out in force. angie? the best bowl market as

-- the best bull market as investors await the doj decision. declinestraight month in exports. >> we were looking at 11%. the most all is report asked for 9%. it's better than every single report out there. is the ninth straight month of decline. japan is not exporting to its major trading partners. how really it is a global wide problem as well for japan. japan at the bottom of the heap here. you just look across the region.

it's almost a global wide problem. you have everything but the u.s. , emerging markets, not running on all cylinders. when you look at the import , we have a graphic that goes along with this. -- the price of oil has contributed. a lot of this has to do with the drop in oil. the orange line takes you from 110 at the left side of your screen down to 40 at the bottom and right about 45. of course, japan is importing a lot of its energy needs. which is why -- we hope that this too shall pass. if the price continues to fall from here, it will not pass for a while. angie: yeah. reporter: and they are importing a lot of deflation, angie. angie: and anxiety that the boj has to look at that deflation goal. let's break down exports here. which sectors specifically will weaken? chinaer: exports to

across the board really. inyou want to put it all one. exports to china. exports to asia. in a row we saw a double-digit decline in exports to china, third month in a row of a double-digit decline in exports to asia. it's also important to have a look at just broadly, the yen 10%, 15% weaker as well compared to this time last year. when you look at the eu, it is not as bad. i'm curious what the trade numbers will look like. is part of the u.k. the eu. we had that horrible report on friday from the u.k.. 11% stronger against the pound. angie: speaking of the yen, how much did that come into play with falling exports? very hard to

separate what the impact was, but certainly when you look at june, the yen gained against every single one of these except the brazilian currency, the riel . you do understand why japan was the bottom of the heap. angie: ok, how does this all changed -- or not -- the action plan of the boj? david: they were talking about the need -- do they move the goalposts? as far as a tangible action plan is concerned, it would not be everyone, but the vast majority of economists -- we have asked 41 of them. 32 think there will be a move, whether it is a dtf increase, expanding the monetary base -- angie: helicopter money? i don't know how many people think that. david: that is a bit sensitive. i think that is what we saw the yen decrease.

, it is allowed. they might tweet it. -- they might tweet it. -- they might tweak it. watch the yen. angie: oh, my gosh. watch that yen. it is ached in. -- it is baked in. martin schulte says the of a government -- martin schultz abe government will pull out all of the stops. >> in japan to get the economy moving, you need as big a lever as possible. the government is piling up numbers in terms of what will be the fiscal from meals -- fiscal stimulus, what will be driving the economy? shifting to a big

debate right now. domestic demand will be supported from this year by government spending and this is where investors are positioning themselves. sayshief strategist inflation will play a big role in the decision. >> on the monetary easing side of the things -- the devil will be in the details -- it depends on what happens to be japanese yen. my guess is we probably will not get anything on deep a negative deposit rates. i suspect we will see increased etf buying to the tune of ¥6 trillion, and i would not be surprised to see more on the j reit's, to be honest. says them fitzsimmons

yen will take a hit if the boj delivers after its policy week.g next >> market expectations are probably around that 20 level. but obviously on the back of that nikkei report it could be as much as ¥30 trillion. but increasing the asset purchases and the purchases of thing,, that sort of that is consensus within the market. if the boj does under deliver, there is a lot of envisioning. potential he we could see quite a big selloff. word from that is the asia. the pokemon go effect may be over for nintendo with shares plunging as much as 3%. -- wee eugene it tomorrow have eugene with us. what is behind this slump? reporter: sure.

friday night, nintendo put out a press release. this is what the shares of reacting to. nintendo basically said do not expect pokemon go to impact earnings by a lot. it said the financial impact would be limited. that is the exact language that they used. they said they are not expecting to revise their annual profit forecast. for the time being, nintendo is tempering expectations. i said this in my article. i said this on this program as well. a veryo actually has small stake in pokemon go. the game was developed by niatec company spun out of google. pokémon is a separate combo from nintendo. about a third of pokémon. pokémon owns all of the

characters in the game. they will get of licensing fees, a lot of licensed revenue, but nintendo basically will get about a third of that. so, nintendo came out friday morning and say, hey, do not expect too much from pokémon go on our financials. estimates of about 13% of pokemon go sales will go to nintendo. that is a far cry from i think what the market was expecting. again, nintendo shares doubled in the last two and a half weeks . about $20 billion of market value added to those shares. today you are seeing it down 20% at the lunch break. yeah. next thing is the for nintendo shares? reporter: sure, the game came out friday in japan. the next big catalyst will be when the game is released in china or korea.

keep in mind both of those countries have restrictions to the google map data that pokemon go uses to make the game run basically. so, there is a lot of speculation about whether it will be in those markets. is it is, it's a very large market for those games. decides that. it'll just be a earnings on wednesday. angie: sounds good. thank you for that. let's get to tokyo. have these stocks, of their earlier high. >> that's right. you can see it is a little flat at the moment. sector is also weaker. it's a little stronger in the agent trade.

and telcos have been sold off all day, down a quarter of 1%. we had seven point 6 billion shares changed on the regional index. 91.3%. supportthere is solid on consumer sales. jpmorgan has come through with a call on casinos, saying the gross gaming revenue in macau should turn positive year on year by the fourth quarter. you can see galaxy and sands doing quite well. sands china is one of the best performers on the hang seng. a bit of a stitch up for the cow. you see good buying coming through in australia. new zealand adds record highs. a very solid day in the philippines and japan being supported, of course, by that weaker yen. there is a switch out of taiwan.

on stocks in singapore. that is taking a bit of the shine of the index today. angie? angie: thank you for that. verizon is set to buy yahoo! 44 $.8 billion. the announcement could come before monday's trading begins in new york. the deal is said to include yahoo!'s real estate assets. you who will continue to hold stakes and alibaba and yahoo japan. the global demand for smartphones may be waning but while way seems to be bucking the trend. awe may be bucking the trend. it beat samsung and apple in china last year. shares surging the most in 20 years after the company said

it will have a pretax charge of $716 million from its reorganization. assets andng down new store openings as part of his multiyear turnaround. early elections, saying the government plans a multibillion-dollar infrastructure fund to keep growth on track. the government did try to limit the economic fallout from the failed coup. what we're saying to global investors is this time has come and gone and the national will and the will of the citizens has destroyed of the citizens has destroyed the plotters. life is back to normal in turkey and you can continue your long-term investments. we will eliminate obstacles

before you. we are laying out the turquoise carpet in front of investors. we have all kinds of tax incentives and we are giving priority to value-added investments. angie: coming up later this hour, g-20 leaders vowed to get confidence in the global economy back on track. we will be live inching do for you -- we will be live for you with all of the details. week thathis be the they pull the trigger and have more stimulus? we will discuss the boj's next move. this is bloomberg. ♪

angie: a quick check of the latest business flash headlines. a new zealand company plans to boost staff and its u.s. peopleies in unit by 650

this year. the japanese people want a after adding bankers from the royal bank of scotland. about theere raised parent firm financial strength. the insurer has put forth an offering of $100 million, a portion of which would go toward the chinese conglomerate that bought it last year. it turned negative last year because of what it called the drag on the credit profile of high debt leverage. for monday, the new 10 minutes session will include a random close from the final two minutes. some brokers are said to have prescriptions on amending orders. it is designed to reduce volatility.

central banks in the spotlight this week. while rates are expected to remain steady, there is mounting speculation the boj will expand stimulus. let's bring in norman chan from oreana private wealth. loves surprising the market. is it going to be bad news? norman: i think this time probably the direction will be easier because he wants to work with the government on the fiscal stimulus. at they will be really surprised and sit on their hands again -- it's not going to do too well for the japan economy and the stock market. think how much do you that the market has priced in the yen move? norman: it has priced in a

little bit. it is almost like two yens. angie: it is not at 99 at least. norman: yes, of course. can break athey further negative. angie: so, you think not and/or but and/and? norman: i think that they will be buying etf's, as well as further reduce the interest rate a little bit more. angie: what does this mean for the equity market in japan? will be very helpful to the japanese stock market. angie: we did see that any it expanded for the night straight month and a

-- in a row. should yes, i think they allow the u.s. to drop a little bit more. otherwise japan is still suffering from an overly strong yen. at week we saw the last opposition comment from the u.s. and the rest of the world. therefore, i hope that japan will be able to correct a little bit more. and that will allow the japanese stock market to catch up with the rest of the world. angie: what about the liquidity for the rest of the world, especially if they buy etf's? norman: i think it is more of a jester. also, you can see that the boj is actually working with the government. driving, i both think the effectiveness will be higher. is one thingere about thinking it is kind to happen and another thing about agreeing with it.

there is sentiment out there that japan is doing fine. that it does not have to act right now. the japanesenk economy is actually not doing too bad. if they sit on her hands again, i'm afraid in the short-term the japanese yen is going to react by rising again, and that's not going to be good for the economy and the stock market. angie: what you think of the credibility of abe? just one three elections and credibility is improving. the boj has been a little difficult to predict. i think the reputation of the boj is a little bit on the low side. hopefully they will do something this time to improve that. angie: a right, very briefly, if we do see action on the 29th, what sectors could be most benefited? norman: the yen, first of all. but i think more importantly,

the domestic economy recovering momentum. falls, it will help the japanese economy recover to a more inflection point and then domestic stocks will do fine as well. right, but then look at those consumer driven stocks in the market. norman chan, let's continue this conversation. we will bring back all of the other central banks doing some things -- maybe not this week, maybe in december. we will talk about that when we get you back. all right, coming up. flunked by the fed. two months before being included in the imf reserve currency trips up all of the details next. this is bloomberg. ♪

angie: welcome back. you are watching "asia edge."

i'm angie lau. just before the u.n. was supposed to be included in a basket of reserve currencies, yuan- just before the was supposed to be included in a basket of reserve currency, questions. currency has to be safe, which they have not been able to instill that confidence as yet. the currency has declined 3% this year and is slated to decline further. if you are a haven currency, you have to be stabilized at some time. you cannot have an association of declines and still hope to attract haven status. for now, maybe not so much.

if they allow free markets moves, that will take away any safe haven pretensions the currency may have, at least in the short term. so, the currency is not really footing now. what they can do is try to stabilize the currency, allow some sort of -- last week we saw slightly awkward fixings which not follow market moves. if nothing, they can at least instill confidence in the market fairlye yuan is a market-driven currency. robin, thankght, you for that. we are looking forward to business in tokyo. what we are seeing is japanese shares advancing.

it is waiting to see if the boj makes its move on the 29th this friday. of course, we will get the latest on japan's's real opening as we see asia and stocks rise on a weaker yen. this is bloomberg. ♪

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angie: top stories at this hour -- the asia and benchmark -- the an benchmark pullback. investors awaiting policy decisions i the boj. today's japanese trade figures showing exports are still weak, following for a ninth straight month in june. and though -- nintendo shares falling toy percent. that is after they released a statement saying the financial impact from hit game pokemon go will not be significant.

they're trying to manage expectations ahead of their earningsrter release. 's operating margin of 212%. the company used networking care premium phones, helping it to beat apple and samsung last year. this is bloomberg. of let's get to the latest in the markets. for that, we go to juliet sally. juliet: we are seeing risk on in the region, particularly in japan with new zealand looking quite strong. there has been a switch out in stocks also in taiwan. that has taken a little bit of the shine off the overall index. japan has come back after the lunch break and given a few of its earlier gains.

fromurse, the big fall nintendo weighing on the broader index, even though we have the yen weakening. in australia, there has been a pickup in retail sales. and new zealand's market is at a record high today. looking at south asia, a mixed bag. market goingasia up by a quarter of 1%. there has been a call on the casinos by jpmorgan, saying that the revenue should be better you're an year in the fourth quarter. they are a little bit mixed. they are watching the big plunge and nintendo will share rise. nintendo is still saying that the financial impact of pokemon go is quite limited. the overall gain on nintendo

cents pokemon go launched is about 10%. mcdonald's coming under pressure. after the watching -- that yahoo! this is the state of play in a sian markets at lunchtime. bank governors have reiterated a pledge to use all policy tools. john mckenzie is there for us. tom, what were the key concerns voiced at the summit? john: front and center was weak global growth and what tools to employ to lift back growth. you talking about policy makers wanting to deploy all tools. the focus is very much on fiscal and structural reforms.

not just monetary policy. looming over this the ongoing uncertainties over the long-term impacts of brexit. anti-globalism sentiment. it's being articulated in brexit, being articulated in the u.s. with the rise of donald trump. i was lucky enough to talk to the presidents of the world banks about this issue enough -- and also the sector general, and i got their views on global growth. >> we wanted to give good information, good news to people for a long time. , we thought the u.s. was solid, the european union, the eurozone seem to be doing better.

it looks like global growth well be renewed once again. >> i think that we are going to have some weaker performances, especially in the european theater. exit, but also because the recovery has been weaker than we thought. tom: angie, it did not seem that were dominated by talk of austerity. the discussions were very much focused on providing fiscal support. and despite the fact that the communiqué that comes off the back of this is not binding, we would probably expect governments to get more money in

the pockets of families in developing countries. so, those are some likely outcomes of this g-20 summit, angie. angie: can we get any more clarity, tom, on when britain might start official negotiations about is to parch or -- it's departure? tom: that is a question and has been a question for days. here.w exchequer was we spoke to the commissioner in charge of the eu financial affairs. he told us that the timing is crucial. >> it's up to them to evaluate that. it represents huge work. it is something we have to manage for ourselves. we have to prepare negotiations. not too much time.

and one factor is predictability. whatever the time is. i think at one stage, we must know. >> he thinks that we will hear the british government in september. french finance minister wants to see this triggered by the end of the year . he says there must be certainty and clarity around this issue. ocd.so heard from the saying we still do not know what model they want to deploy. also the attempted coup in turkey and the ramifications of that. other geopolitical events. curbrism, how they can some money flows. also tax redistribution.

closing tax loopholes. those were all issues discussed. as were banks and a potential bailout in italy. angie? all right, tom mackenzie there for us and china. checking on other stories we are following for you. individuals will have to meet conditions forng russian athletes. the ioc says it respects the rights of those who have not broken rules. russia is accused of running a state-sponsored doping program. for members meeting in laos have failed to reach consensus on china's territorial claims in the south china sea. is now foreign minister having related meetings with the

southeast agents. he had talks with his counterpart from myanmar, aung san suu kyi. flooding has driven 3000 people from their homes, leaving 114 dead and at least 300 others missing. it is china's worst flood damage since 1998 with 30,000 hectares flooded. at twofit losses are put point $5 billion and the third quarter economic output could be cut by 2%. the global demand for smartphones may be waning, but ei appears to be bucking the trend. our tech reporter david is here with the details. growing so quickly and a slowing market, david? is selling more

handsets than ever before. at one time apple dominated this market. but they have invested and they are successfully selling around the world. especially in the domestic market. angie: the question is, has huawei peaked? some would say so. they have small competitors that are also starting to take share. good news for not apple. increasingly they are being chipped away, your after your, otherly by huawei, but by smartphone makers. in china is a huge market for them. at least, they had hoped. mobile is the gateway.

you lock them into tv services, tens ofrvices, all things apple wants to build on with the ecosystem. in china, it is so fragmented. there are some a chinese brands taking market share, it may not get the stronghold that it wants, may not get the entry point that it wants. just in may, apple falls from third place to fifth place. this year, we saw china ban itunes content and china. that does not help either. they've it: no, regulatory problems are a huge issue for apple, and apple faces the same problem but every phone company faces. all of these laws govern a whole for writing of things and the government can decide at any moment to implement them. angie: very arbitrary. david, thank you for that. it has been an eventful three weeks. we will talk about this in our

group discussion next. this is bloomberg. ♪

angie: a quick check of the latest business flash headlines. production fell 11% in three months. the net debt fell to $2.3 billion. shares have almost doubled in the past 12 months. maker moves 60 may be looking to move to asia. the chinese owner of the land is looking for a domestic ipo next year. they are looking at a $5 billion valuation and has the depth a chinese bank to help with the sale. long list of chinese clothing retailers that have

funded their expansion by selling shares. and the latest entry in the rebooted "star trek" series topped the american box office. beyond" and it off competition from the low-budget horror movie "lights out." star trek is good news for viacom as it sells its they compare out. have juliet and norman chan. we have an expectation of what may happen with the boj. also the fed -- the expectation is nothing. norman: nothing. stable. what should we be listening for? >> we will see if the fed is still dovish.

it's likely not going to have a comment on the interest rate. the fed will say the economic growth is probably improve the little bit and they will refrain from giving any tips on the interest rate for the time being. >> yeah, it really has not worked in their favor, has it? [laughter] >> if the boj acts and succeeds and there is a drop in the japanese currency, does that action question mark you want a currency that does not help china too much. does drop,the yuan and it is under pressure -- which probably 10%, 12% is waiting in the basket, but i would say if it only drops a couple percent, that's probably not going to put too much

pboc.re on the but if the hang seng and the euro drop more -- that would create more pressures to act. thee: they are defending level then. there were signs of possible intervention here. if it's startling to see that maybe they are not sticking to their stated policy of letting the market guide the currency then? yes.n: although they are allowing some market discretion, and i don't think that they are going -- i think they're trying to guide the currency to a certain extent . this is not really their best voice. the -- inis a chance

the long, there is a chance the currency would drop more. drops,currency market you might want to drop along with it. juliet: your outlook is relatively bullish. what sectors do you like? norman: i think domestic consumption is strong. other than that, high-end is really bad. but domestic is very strong growth in the china market and that is also the consumption market is going to be strong. they will come in late. consumption and tourism are the best hope. playingdo you see that

enemy markets in terms of sectors? norman: we have seen this in the economy such as australia, even europe. that happens sometimes. that is a natural phenomena and. -- that is a natural phenomena non. angie: i was just going to say effecte getting a brexit with chinese overseas tourists adding to the u.k. for bargain shopping. what about properties there? norman: that's not surprising. have been going shopping around the world. they will probably be stimulated to do shopping, including banks and real estate. >> if i do not want to play the market because it is too crazy

for me, what else can i do with my portfolio to shield me from sleepless nights. -- sleepless nights? , we have these private equity funds and the --look stock market [indiscernible] the only way you can manage volatility is to have not a public market -- >> get out of it. angie: you know what you are not sleeping so well, david. all of that cash under your bed. david: i have a bad back. [laughter] a bar of gold under his bed. although you think gold might have peaked? norman: i think gold probably theremultiyear high, and

are a lot of geopolitical reasons. i think there is a chance it .ill correct back further unless david buys a lot of it. angie: yeah. david: i [indiscernible] >> every time the gold price drops, it seems there's a pick up an interest in buying. well prefershat gold as a diversification play? angie: like physical gold, not etf gold? norman: yes, sometimes. but there was a scare with the gold downturn a couple years ago. i do not think the interest is as high as a couple years ago. angie: if you do believe that

despite all of the froth we are --ing in the market ultimately what is going to happen? how do you play defense? what do you do with gold? how do you protect your principle here? norman: most of the time you use private equity. , those debtshand are probably lower than the public market. understandably so. and wey have a discount are relying on that as well. mostly tech. boring, consumer -- angie: isn't that dangerous? right now we are seeing even s, you know,unk bond

really, really popular. if it crashes, if the bottom falls out, you are left with default. norman: loans, bank borrowing, much cheaper. return.d has a good we're still holding some of it. but if it goes away, we might going to be private that market more. ,ngie: all right, norman chan we will leave it there. oreana private wealth ceo. thank you very much. still to come on "asia edge," the democrats with another e-mail scandal. will it harm the chances of a united front? details from philly. this is bloomberg. ♪

angie: welcome back. you are watching "asia edge." theats of political bias at democratic convention as it opens in philadelphia. debbie wasserman schultz is wikileaksafter released e-mails that show the dnc undermined bernie sanders during the primaries. our bloomberg political reporter filed this report from philadelphia. dayrter: we are headed into one of the democrat national convention in philadelphia. a big unity moment for the party. it looked like everything was going their way until the bomb drop this weekend that showed internal e-mails that showed within the party seemed to be undermining bernie

sanders during the primary process. this plays into something the bernie sanders team has been saying for a long time that the system is rigged against him. he has come out in support of hillary clinton. he has endorsed or. this could put them in an awkward position today. the democrat national committee chairman debbie wasserman schultz is announced she will resign at the end of the convention. she will speak from the stage, she will gavel out, and she will resign. this is a big win for bernie sanders and his supporters. they have been calling for it for a long time. it does put them in an awkward spot. ernie is speaking tomorrow night, monday night on the convention stage. and we will wait to see how his delegates responded whether they cause trouble for hillary clinton here in philadelphia. back to you. that is our bloomberg politics reporter filing that from philadelphia. our bloomberg markets middle east coming up at the hour.

what do you have for us today? have another exciting show coming your way. more from our interview with the turkish prime minister, who says a new investment fund is on the table to try to spur growth. we will get you the details on that conversation. we also widen that out and get thepective from the ceo at west group, and he is saying, you know what? turkey is to risky. put your money in this part of the world, and specifically plays in saudi arabia. of course, we are looking ahead to the boj. we are looking ahead at what is at stake for the global markets. the chief asia-pacific economist. , there's definitely a lot to tune in for.

i will see you at the top of the hour. angie: that wraps up this edition of "asia edge," as we see asia and stocks kicking off the week with gains.

♪ turkey promises in infrastructure funding to keep growth on track, we speak exclusively with the prime minister. stocks leading losses. japanese exports fall for the ninth month fueling hopes of fresh stimulus this we f