♪ is july the 28th, thursday. this is "trending business". i am rishaad salamat. ♪ we will be visiting singapore, sydney, and philadelphia. japanese stocks on the way down, the yen strengthening, investors waiting for the boj. shinzo abe announced that massive spending plan. sales, samsung's

buying back $1 billion in shares. do le us know what you think of our top sto. let's get into this next picture across the asian market. here is a look at what is behind sentiment. >> we do have singapore unemployment data to in an hour and a half. it is expected to rise from

1.9%. malaysia coming online. pressureeen downward on the kospi. it is down by 2/10 of 1%. samsung reported its earnings today, but weakness on japan's equity market as investors were given that surprised by shinzo abe prime minister. we have seen the yen strength and and the world in the boj's court, awaiting their decision tomorrow. australia, some upside there on the rally in gold. weakness in other mining players. some mixed movement on the base metals exchange in london. new zealand down by a 10th of

1%. a little downward pressure coming through once again. the yen,look at falling through that 104 handle, up 6/10 of 1%. indeed, earnings season continues apace. samsung electronics reporting impressive numbers. also giving money back to shareholders. let's start off with this big live back. david: lots of numbers. it is a very busy table. so many aspects and parts of the business. this is what stood out. not a big surprise. the fourth and final round of the buyback, 1.8 trillion yuan, the bulk of which will be common shares. shares not really reacting to that at the moment. mind, a rally and

samsung shares for the last 2-3 months. 1000.m dividend of ,ishaad: looking at the topline how did the different businesses do? david: you can see $44 billion in sales. all of these were basically beating estimates. today, and these are audited statements. we got a breakdown of the business. what is interesting is that the -- what you have as far as mobile and semiconductors was a split between the two. semiconductors used to make up half of the prophet. that belongs to mobile now, more

than 50% of the moment. frome just came out samsung that they shipped in 19 million -- 90 million handsets in the second quarter, very impressive. if you look at what the potential could be, it is in research, andogy, that's where they have the pricing power. what about visibility? what is the outlook? of course, we have to talk about currency factors. as far as the currency impact, they took a hit, not a , 300 billion won. it might not have

going for it as we move into the second half is you might see an increase in marketing expenses, which they did not have to do. the telcos shouldered that when they launched the s seven. the component units, they expected to be solid. shipments, they shipped 90 million handsets last quarter and expect to ship the , 180 million cents that' handsets. rishaad: thanks. the trading day getting underway in singapore. oh cbc with a slump in profit. -- ocbc with a slump in profit. >> if you look at the stock,

trading lower. second-quarter numbers are weak, prospects not looking good. take a look at the breakdown. , $654 million. analysts were looking for $663 million. contracted, insurance dropped, banks under pressure, a strong singapore dollar weighing on interbank rates come a not surprising given what moody's said last month, down the outlook for lenders in june. it is concerned about weak economies, weaker trade growth. ofo, the worsening quality loans, especially to energy companies. singapore banks are heavily exposed to energy-related companies. uobng said that, we saw beating estimates.

second-quarter income rose 5%. it said it will stay vigilant, nimble, and is setting its sights on the region's long-term prospects. rishaad: another singaporean also out with a report. what is going on there? >> it is singapore's sovereign wealth fund. returns are down 4% in the 20 year. to march. a year ago it was 4.9%. gic returns have been under pressure. the pain is likely not over. thesame warning sounded by singapore state owned investment company. low yields, stagnant global growth, inflated by a wish and's, so returns expected to be muted for as long as 10 years.

here is how it looks in terms of holdings at gic, a third of assets in the u.s., 20% and japan and the rest in the eurozone. rishaad: thank you a lot for that. nine minutes past 9:00 in the morning in pennsylvania. national convention. they continue to talk. here is joe biden. >> i love you. ladies and gentlemen, eight years ago i stood on a stage in , and i accepted your nomination to be vice president of the united states, and every it hasday since then

been the honor of our lives for jill and me, every day we have been grateful to barack and michelle for asking us to join them in that incredible journey. that can onlyy happen in america. togetherly have worked , but we have become friends. we are now family. family.ow folks, you have all seen over the last eight years what president obama means to this country. of honor,embodiment result, and character. one of the finest presidents we have ever had.

that's right. this is a man of character. and he has become a brother to jail and me. and michelle, i don't know where you are, kid, but you are incredible. you are incredible. i was talking to barack today. it is no longer who will give the best speech. we are ready know who did that. you were incredible monday night. the delaware delegation, as they baracksouthern delaware, and i married way up, way out.

up. tonight, i stand here i see so many friends and colleagues like my buddy chris dodd and the connecticut delegation, so many people here. whoe the faces of those have placed their beliefs and barack and me, so many faces, but one. this is kind of a bittersweet moment for jill and me and our family. he was about to deploy to iraq, and again in ua introduced be me to the country and placed her name in nomination. you got a glimpse, i know i sound like a dad, but you got a glimpse of what an incredibly fine young man beau was.

thank you. thank you. and his two kids are here tonight. but as ernest hemingway once everyonee world breaks and afterwards many are strong at the broken places. i have been made strong at the broken places by my love jill, theon, my heart hunter, and love of my life, my sleep. and by all of you. i mean this sincerely. those of you who have been through this, you know what i mean. all of you, your love, your

prayers, your support. but you know what? we think about the countless thousands of others -- rishaad: vice president joe biden saying president barack obama will go down as one of the finest presidents in u.s. history and paying a tribute to his son as well. as we take a break, coming up stimulusinzo abe's plan as he looks to pull the economy out of its slump. no fedt guesses picking hike for the rest of the year. we will see if that as changed. this is bloomberg. ♪

rishaad: you are back with "trending business". the fed's assessment was upbeat, but remains guarded as to the next rate hike.

my next guest is not expect movement until early next year. what did you make of the statement? it seemed like it was similar to the previous statement with a couple of lines about risk diminishing, which everyone is hanging their coats on. the fed is a little more relaxed after the statement last night. last week, we had the president of the cleveland fed, and when she was ask what the fed would do if it got into a corner, quantitative easing was the answer, not helicopter money. they are more relaxed and waiting for the opportunity to raise rates again. this will not happen straight away. the european risks goes of brexit are not out of the way, and we may see concern among investors in the lead up to the u.s. election.

rishaad: was this statement a shot across bows to remind them the fed is still there, because people are beginning to think in very dovish terms? >> the fed is very clear that they would like to do quarterly rate hikes. next year, they probably will, but at this stage, they are watching data carefully and doing like the 90 kingdom did last month. they are saying let's wait a while and look at the data further. that is the statement coming from the fed. it would not shock us if they got one increase in november or december, but we think they would rather have the growth. it looks very strong at the moment, and there's no reason to direct that, especially when the u.s. is one of the only economies in the world in a position to contemplate raising rates. rishaad: the thing is, we have the yield curve fluctuating

quite dramatically in some instances after this. you are expecting lower yields, why? i am expecting lower yields because any slight dip in the u.s. growth pattern or any fall in the new job creation numbers will cause investors to say a slowdown is commencing. this is one reason why the u.s., with very little support from its trading partners around the world, really does not want to derail the growth pattern and they are on now, so they are being extra careful. they have inflation on their site because they're almost is not any inflation, and with that backdrop, they would rather air on the cautious side. wait to 2017, don't look for a rate hike yet. it's almost irrelevant anyway, a quarter of a percent. rishaad: let's move to boj, the next biggie. what do you look for here?

the thing is, expecting huge stimulus on the monetary side as well as this $265 billion fiscal stimulus that shinzo abe is flashing around. >> we are saying that the clients because the liberal democratic hearted has a very rare position today having strength in both the lower house and the upper house. it could be a once-in-a-lifetime opportunity for the liberal get somec party to incredible policy changes, both on the fiscal and monetary front, devaluing the yen and spurring growth. we are expecting both packages to come out. the announcement yesterday was a bit of a nothing announcement. you can bet that a good chunk of and forgoing to be in structure, and may be some structural policy changes, and those of the changes the most. then we will have the boj

surprise markets with another stimulus package. in other words, printing of money. leftad: we have 10 seconds , when it comes to equities with a rally or is it a case of volatility? come backity will before the election, only three months away. if we have a 50-50 ball, which i believe we will, the markets will have a temporary shock before they resume the upper trend. volatility is dangerously low and equities right now. rishaad: great talking to you. joining us from sydney. up next, getting set to pay a hefty price for last year's dam disaster. we will be back in sydney with the details. ♪

♪ rishaad: this is bloomberg.

♪ bhp billiton on the move. let's get to paul allen in sydney. bhp's share of this reparations deal, isn't it? paul: that is the size of it or bhp, the half owned by , sor half owned by vale this is half share of the current estimate of obligations. this is according to a framework deal agreed on march 2. 19 people were killed, extensive damage downstream from that dam burst, and a lot of pollution as well. thatw mackenzie saying this demonstrates our support to the long-term recovery of communities and environment affected by the tragedy.

bhp shares are rising, up two thirds of 1%. it is fair to say that everybody knew this was coming. aat we did not see coming was rise in the iron ore price overnight, so that probably explains the share movement. you will see this noted in bhp's earnings. to get thebeen plans company up and running and 2016, but it has been beset by delays. it is more likely they will resume business in 2017. rishaad: thank you very much indeed. getting to philadelphia now. we have had joe biden speaking, paying tribute to his late son beau biden. is oneying barack obama of the greatest presidents in american history.

he is giving reasons why at the moment why people should not be voting for donald trump, saying note nominee in history -- the idea that donald trump cares about the middle class is a bunch of malarkey. how cann also saying there be pleasure in saying, you're fired? saying donalde is trump is seeking to so divisions for his own gain. that is the scene at the moment at the dnc and philadelphia. -- in philadelphia. america, second to none, and we owned the finish line. don't forget it. and may godu all, protect our troops. we are america. right, coming up, a bit

of a break, taking a look at sab the takeover in jeopardy following a shareholder rebellion. we will have details on that. ♪

♪ they look at our top stories. asia-pacific stocks mixed as investors digest the latest fed policy decision. rates unchanged, but upgrading its assessment of the economy. announced a 265 alien dollar fiscal spending package. samsung shares falling following the announcement of a $1.6 billion share buyback. and sales cost cuts

helping to beat estimates, second-quarter profit topping $5 billion, benefiting from sluggish iphone sales. a down day in singapore after a 15% slump in its quarterly profit due to contracting loans and falling insurance, net income dropping for ocbc. $54 million what have we got at the moment? auction in hong kong coming to an end, a slight fall back taking place. for the opening proper. all those earnings you were talking about, awaiting the boj policy decision tomorrow. fmo seatct to the meeting,-- fmo seat

quite a lot of weakness on the shanghai market yesterday and also shenzhen. there could be more regulation about wealth management products, so a lot of financials as was predicted in the futures in hong kong.

the hang seng is up by half of 1%. all those energy players coming under pressure. crude is trading that three-month low. the nikkei under significant pressure, a surprise to the upside yesterday from shinzo abe . the ball is in the boj's court. we are seeing quite a bit of weakness from export players. the nikkei off by 1.1%. in australia, upside particular he from gold players. retreating from record highs. the philippines opened pretty flat. some movers we have been watching, big earnings day, nintendo after the bell, down 5% in tokyo. wasfirst quarterly loss wider than expected, but it does not include that recent rally and the recent increase in profit since pokemon go was launch. samsung down 2% after results. alps electric is one of the best performers in the region. first-quarter operating profit down 62%. it was much better than what the market was looking for. we are seeing it rise to a five-month high, up by 13.5%. checking in on the yen as it 1%,ngthens, up 6/10 of sending some downward pressure in japanese equities today. rishaad: thanks. latestabe revealed his

ploy to shake japan out of economic doldrums, $265 billion in stimulus spending. what was unusual about this statement? >> for a stimulus announcement of this size, you would expect bells and whistles. here we go, big bang, try to revive things. instead, it trickled out. speech, a meandering speech, about agricultural policy, and halfway through, by the way, fiscal stimulus. he caught the country and local tv off guard. altogether, a sense of surprise and bafflement at what the strategy is behind it. there had been a lot of speculation as to what he was planning. rishaad: do we know what is in this package?

do we have any details? a sudden such announcement that we have no idea what is in the package. that is the problem. it is what japanese call fresh water. how much will be news spending and old packages rebound old, how much money pledged to make for a big headline affect? fiscalll be the 26th stimulus pan in japan since 1990. until those details are known, we are flying in the dark. coming: we have the boj out with the decision and 25 hours from now as to what it does, monetary stimulus expected there. what this does, i guess, is hit the ball back into governor kuroda's court. >> it deftly does. it puts them under pressure and in a position where he does not want to be.

there is a sense among some economists that he will be pressure to respond and do something to give the government some faith. what he will do, we don't know. of ahe pull something out hat that is completely unexpected and shock markets again. that he isknow is under a lot of pressure to act, even with reservations around what they can do. we will have to wait and see. rishaad: thank you very much indeed. some other stories we are looking at. nintendo with the worst than anticipated loss. stronger yen and weak demand for .onsoles nintendo keeping $332 million full-year profit outlook. that does not reflect the success of pokemon go, which soared the share prices.

japan's biggest mobile messaging service with a profit in its first earnings report since its ipo. net income it line rising to $24 million. losses were double that a year ago. , two hundred $39 million in the second quarter, head of estimates for naver. facebook jumping in extended trading, second-quarter forecast sales of video and instagram ads, revenue climbing 59%, $6.5 billion. profit was $.97 a share, exceeding the estimate of $.82. facebook increase traffic with more than 1.1 billion people using the social network every day. it has only been one week since u.s. regulators have

approved ab inbev acquisition of sab miller. we have the details from new york. >> it has only been one week since u.s. regulators approved ab inbev's acquisition of sab miller, but now halted by the takeover company itself. it is because of the plunge and the pound after the u.k. vote for brexit on june 23. so far, falling 11%, and as much as 13.25% at its most point. some as a be miller investors are getting a bad deal because of that and they want more money. -- sab miller investors are getting a bad deal because of that and they want more money. on october 13, when the deal was announced, it would be worth 97 billion euros.

today that deal is worth 87 billion euros, a discount of 10%. did raises cash bid to 45 pounds a share, but that is not appeasing some investors. that is just 2.25% raise in the all-cash offer, and deal acceptance depends on if you are a big institutional investor or a smaller one. also, if you have cash and stock options or all-cash options. altria has cash and stock options. it is jump from 39 pounds to about 50 pounds. to get $500ts million more by taking the cash and stock options. the new proposal is still undervalued at sab miller because the all-cash bid has not benefited as much. we are waiting sab miller to

overlook that new proposal. shares closed down for all related parties. 3%, sab miller by 2%, and molson coors down by 5%. news, japan'ser monetary policy taking its toll on hands second big -- japan's second-biggest lender. banks coming under more pressure if the boj lowers rates again this week. phone year net income forecast unchanged at $6.6 billion. cinema line has agreed to buy a website that sells movie tickets. it is $280 million in cash. itda cinema plans to keep team.

in overcoming weakness markets to boost profit in the first quarter. 9%, over profit up $1.9 billion. it is new business growth, despite the crackdown on insurance policy purchases. it is part of a bid to curb capital outflows. >> the outlook continues to be solid. we have seen is a trend ofr the last 10-15 years visitors and to hong kong buying insurance. if you look at the p are numbers, it's something like 250,000 out of 46 million visitors, less than half of 1%, so the actual percentage is tiny. the opportunity remain significant. rishaad: right, up next, shinzo abe's latest attempt to reinvigorate the economy taking investors by surprise. we will let you know what is

coming up over the next few days. ♪

rishaad: a quick check of the latest this is flash headlines. new sworn in in jakarta, including the finance minister. heldeturns to the post 05-2010.20 willresident is betting it help him to boost infrastructure were keeping the deficit under control. india one step closer to implement in a massive overhaul of its tax system. the government has proposed legislation that would clear the way for a national sales tax. the goods and services tax has been stalled in the upper house of parliament. china said to be weighing

tighter rules for wealth management products to rein in shadow financing risks. the banking regulators drafted regulations designed to protect mass-market investors and ensure lenders have enough capital to cushion against losses. the market is seen as a potential threat to the system. it's about the yen. strengthening against its major peers. our next guest says expectations are extremely elevated, and regardless of the outcome, further volatility is in store. he is in singapore. thank you for joining us. well, we have seen what shinzo abe did, surprised everybody, wrongfooted the market certainly. making that announcement in the middle of a speech that seemed so nine to begin with. >> we are saying market

collectivity being driven primarily on headlines. there can be some scope of misunderstanding the headline, especially around the stimulus package. some of these reactionary impacts are not considering what actually is the direct amount of stimulus versus what the the stimulusect of package is. sometimes we are seeing markets overreact on the headlines. ifhaad: nobody knows whether it is previous packages, re-bundled, what new is an it, it is industry, isn't it? >> that is why we are seeing uncertainty in the market. on yen has strengthened basically uncertainty. there has been no real direct focus or clear-cut decision, no clear-cut guidance, as to where this money will be directed, so until next week, traders will be

sitting on razors edge anticipating the outcome from the stimulus package. well, thisght, brings us into what the thinking is in the boj. what would governor kuroda to statement byhe shinzo abe, batting the ball into governor kuroda's court? is set high for expectations on the boj right now. it is widely expected they will go further into negative territory on interest rates and will increase the monetary base. any perception by the market that this is sufficient enough will put immediate pressure on the dollar-yen, and we could see the yen strengthened down to the 103 level based on the perception that the boj has under delivered with the recent spate of monetary policy. rishaad: ok, but this of course

then brings us to the next question, is any of this going to work? yeah, well, if history tells us that the monetary policy has been rather inefficient in curbing currency strength, so we look at the last bouts of stimulus coming out of the boj. it worked exactly the opposite. the strengthening yen will weigh on the japanese economy and the japanese stock market, the export side, and the strength of the yen is bad for the domestic stock market, so i think the one thing we need to do is come in and sound very aggressive and halt this appreciating yen a they want to get the currency back on proper footing again. mind,d: with that in let's move to the other story making headlines. the federal reserve statement a remarkableh with similarity to the previous statement, with one paragraph

that has everybody on tenterhooks, saying the risks to the economy have diminished. is that prodding the market to say we are still around and don't be so dovish? the primary was focus, and that was interpreted as one of the hawkish points of the statement, but the markets discounted that in the sense, well, we know there are still fromlingering headwinds the brexit fallout, so whether that comment will be interpreted as dovish, obvously, today it is not and were not seeing that play out in the foreign exchange market. there was a bounce in the dollar, but it faded quickly. the expectation is the fed will remain on hold through september with a possible interest rate hike in december. the employmenton sector again and the strengthening employment sector, and that will heighten expectations going into the next

nonfarm payrolls coming up in the next two months, so the main focus for the market, and the main cues from the employment sector. good that'solutely what we are looking at it so where do we go next? we have not had an interest rate hike nine months before an election in the u.s., do you think history will be a guide here? >> yeah, it is an adjusting question. , the now, the market economy looks like it is surending, and i am not whether the fed wants to deter that in any way by putting an it just rate hike into play. they may let it go for a little bit worried they may sit on the sidelines. it may be prudent to sit on the sidelines and let the dust settle. we still do not have a good grasp of how brexit can play in the global markets, so perhaps it might be a prudent choice to take to the sidelines on this one. rishaad: right, well, where does

this leave the advice you give clients i suppose at the end of the day? markets, wekinds of are headline driven. you see traders kicking the can from news event to news event, so it is difficult to enter into any long-term position. if we look further down the curve, it is anticipated that the fed will move towards a path of interest-rate normalization, so over the long haul we would anticipate the u.s. dollar strengthened based on the fact that at some point in time that interest rates will go up. right, well, there you have it. thank you for joining us. just giving us his thoughts on what happens with the federal reserve, boj, and the decision on monetary policy in japan.

that is about 25 hours away. up next, the dnc convention has been dominating the headlines. and a moment, the best social media reaction. this is bloomberg.

rishaad: we are taking the pulse of the social media reaction to the dnc convention in philadelphia. we are having a look at the mood online to what is the focus? -- the mood online. what is the focus? controversy around this potential russian hack of dnc e-mails, and what many people see as an extra been a press conference the donald trump gave. them take aving look around these 30,000 e-mails. russia, if you are listening,

i hope you are able to find the 30,000 e-mails that are missing. i think you will probably be rewarded mightily by our press. >> so, a lot of discussion about whether that was said as a joke, which is what the republicans are saying and donald trump supporters are saying or whether he has trodden on dangerous ground with that comment. there is a comment from bradley moss. he is a lawyer specializing in national security. he told the daily beast that it is the most egregiously stupid thing i have ever heard a party nominee say ever. he says there is probably a legal case to charge trump for his comments. calling for russia to take lawless action is not covered by the first amendment. one of his campaign aides tweeted that from donald trump's perspective that this was clearly tongue-in-cheek, and the

line "the press will thank you for it" proves it was tongue-in-cheek. this will be a big set piece speech for obama and naming donald trump, so the gloves coming off. rishaad: we heard from vice president joe biden is welker at well, that's what we have at the moment. a quick look at other stories. mcdonald's creating 5000 new jobs in the u.k. by the end of 2017, boosting employment after the brexit vote. it will take its british workforce to more than 110,000. the burger chain committing to the u.k. this coming about as we saw a

drop of 45% in first quarter profit. japan stockmarket slump leading to a decrease in demand for brokerage services. securities, a decline in investment trading deals. nissan reporting an 11% drop due to the strength of the yen, one point $3 billion income, in line and the first of japanese automakers to report. a $1.2shi motors saw billion loss down to sales slumping domestically. right, we have loads to cover in the next hour. chiefly, going to philadelphia and hearing from president barack obama as he makes his case for hillary clinton to become the next occupant of in deed the oval office.

also, a full market check taking place. the kleins for the nikkei to 25, hangs saying and shanghai all lower. the aussie markets bucking the trend with a marginal gain. this is bloomberg. ♪

rishaad: it is thursday, the 28th of july, this is "trending business." ♪ rishaad: here is a look at what we are watching, president obama talks hillary clinton, he of her experience at the highest levels of government. this is that the dnc in philadelphia. the yen higher, awaiting the boj's policy decision. the fed sets fire on a rates.

estimates fueled by the strong backed bythe galaxy, shares here, as well. twitter, me on #trendingbusiness. asian-pacific markets tracking decision, andan what that is saying about the economy, all being digested here with juliet. waiting to see what the central bank in japan is going to do after prime minister abe made that stimulus announcement. we do have the yen very much on the rise, around 1% today. weighing on the overall regional high afterve-month the earnings came through, beating their market estimates. in china,