♪ theaad: it is friday july 29th. i am rishaad salamat. this is "trending business". ♪ rishaad: we will be live in tokyo. the yen swinging alongside asian equities, markets jittery ahead of the boj decision. pressure on governor kuroda to take action. daegis brokerage announcing a buyback after its biggest overseas quarterly profit and seven years. hillary clinton planning for the

they guest speech of her political career today. she will warn of america faces a moment of reckoning. let us know what you think of today's stories. -- and do let us know what you think of today's stories. we have nerves ahead of that boj decision. let's see how investors are positioning themselves. particularly in japan, the nikkei off by 2/10 of 1%. fall on the, a 1% singapore strait times on the open. taiwan has come through with second quarter gdp, rising year on year. pretty much bank in line there, but some selling coming through from taiwan, down by a 10th of 1%. malaysia flat on the open. we are seeing upside coming

through in korea, samsung's earnings yesterday, earnings season in full swing. australia, good upside from those gold players. the asx 200 is higher for a fifth consecutive session. in new zealand, some upside there after a couple of sessions of losses. following earnings in japan. as you mentioned, planning a share buyback. this as first-quarter net income came in at ¥46.8 billion. very much above what they were expecting there. a quick check on the japanese yen, upside by

8/10 of 1%. a big down tech in terms of household spending in japan, which will impact the boj thinking. those deflationary pressures, cpi down in july year on year. rishaad: we had that last data , all coming ahead of that bank of japan decision. that data is disappointing, 2% inflation target remains very much out of reach. guess this adds to the pressure on governor kuroda to do something. haidi: already skyhigh expectations to deliver more. release higher with the of this lackluster read on the japanese economy. consumer prices dropping for a

fourth consecutive month. this shows how far the boj has until it gets to its 2% target. consumer prices, excluding fresh .5% in june on year, 4/10 than expectations of of a percent of decline. miss and suggest that even with this recovery and oil prices, we are still saying the stronger yen cancel out upward price pressures. household spending sliding 2.2% 4/10ar, far worse than the we were expecting. that gauge has dropped in the past 10 out of 12 months. the weakness in private consumption is bad news given was expectinge that to carry the rest of the economy.

given thend exports strength of the yen, brexit. business investment falling, market volatility as well, so japanese consumers are not loosening their purse strings. behaad: we could accentuating the negatives here, couldn't we? there were some bright spots, weren't there? was a beatory output , the decline less than expected. market remains a bright spot, employment at 3.1%. the job to applicant ratio increased, keeping employment low or push it lower. what really matters is growth in real incomes here it with wages stagnant, you can see why japanese consumers are not wanting to spend big right now.

we are potentially an hour and a half away from the boj decision. governor kuroda is under pressure to act. shinzo abe flagging that 28 billion stimulus package. analyst see an expansion of the stimulus program, the highest ratio in three years. the question is what more can governor kuroda do. table,ptions on the buying risk assets, etf's, and a deeper cut into negative rates. about half of the respondents reckon the boj will accelerate ¥100buying to as much as trillion a year, pushing the ceiling of their policy capabilities.

the most radical option we are looking at is a pledge to maintain the boj balance sheet and forward guidance, throwing fiscal consolidation out the window. sheet is nowce more than 80% of japan's gdp. rishaad: right, let's turn to china's biggest offshore oil and gas producer. our china correspondent is with us today, tom mckenzie could quite a reversal for cnooc. >> they posted profits of 2.2 billion u.s. dollars, and now forecasting losses of $1.2 billion. a large part is down to the oil price, averaging around $41 for the first half of this year, 30% below the first half of last .ear for cnooc

they have assets in canada and china, and is the largest oil and gas producer. this is their first first half profit forecast loss since they lifted in 2000. rishaad: oil prices have fallen from record highs, does that mean there that on the canadian oil sands enters have not paid off? >> absolutely. say that cnooc overpaid for the assets in the canadian oil sands. plagued withn problems with those assets over the last five years. they have had accidents, even pipeline explosions, and fires as well. -- assets are neil alberta near alberta. oak -- northorth

square blue oak also saying the company is not hedged enough as an up stream producer. it does not have the refineries to hedge against that lower oil price. andimpacts of those assets not reaching production capacity it would have hoped is weighing on them. the share price from the beginning of this year is up 35% .or cnooc that is after the big selloff in january. it is worth pointing out that the amount of oil production they get from canada is still only 4%. rishaad: thanks a lot for that, right here it let's look at some other stories we are watching for you today. one company is suffering due to government regulations. david: that seems to be the biggest risk for baidu, shares falling after disappointing guidance from the company. 30% in netter drop,

income. the core of the problem is that third line, regulatory in forre, new government rules online advertising which the amount ofts ads a search engine can show. the ceo and cfo were speaking a few minutes back, saying conditions that have led to downward pressure on revenue will last beyond this reporting period, revenue suppressed for the next few quarters because of w rules on advertising, the impact on medical and financial services ads. were looking at two-three quarters before ad revenue can recover. talk about google, alphabet reporting second-quarter results .

nice bump in shares, 4.6%. google'shanks to increasing user base on mobile, which led to a solid performance for the company's ad business. our senior analyst at bloomberg intelligence said it is a clean beat, mobile, video, and there is no reason why the company further increase its market share. long-term, alphabet has been investing in cars, health care, thingg for the next big further to complement search. that ad business aging, but still very profitable. finally, fortunes in thing to macau

have changed. analyst seeing declines from last year. the hope is the pace will ease.ue to 5.5% likely drop, median estimate from an 8.5% contraction in june. ease. analyst pointing to a pickup thanks to the summer holidays. bigger picture looking like this. have a look at this chart come a bottom of your screen. of fading fortunes, gaming and take falling, 25 straight months into june, but equally the pace at which declines has also been easing. the corruption crackdowns, slowing economy, high base, low base, that is hitting the vip segment shares.

opening up at 9:30 a.m. local time, some casinos have reported. showing some signs of promise. rishaad: coming up later, green light, getting the go-ahead to operate legally and china. consumer prices drop for a fourth month while unemployment falls. we'll go over the latest data. this is bloomberg. ♪

rishaad: we are back. countdown to the boj monetary policy decision. our guest is at rogers. -- ed rogers. has governor kuroda been painted into a corner? does he have no option but to act today? thank you for having me back

on the show. if i were governor kuroda looking at these numbers, you have to think the pressure is mounting to the point where he has to take action. thank you for having me back on the show. what we have now, four consecutive months of disappointing numbers, 2% inflation target not eating met under the current structure. yes, he will have to take some action soon. rishaad: you can't get out of this deflationary spiral at the moment. he can't get out unless the gets a fiscal stimulus plan, which we have from shinzo abe, but we don't know how it will be directed. be directed. >> the devil will be in the details. i agree with you. they have got to take action. the political will to do so is certainly strong. a positive -- we had

statement of how the country feels given the way the upper house elections went. the pressure is real. the desire to achieve that 2% inflation target and the political mandate to do so is very real, so they will continue to throw everything, including sink,hing in the kitchen into it. we don't know the exact solution, but they will continue to try to do everything within their power, quantitative easing, ratcheting up negative interest rates, or broaden the application of the -- there are a variety of ways to approach this, but we do believe action will now be taken. rishaad: what would you do? boy, i don't know if i would want to run for the job. honestly, if it were mine to do, it would be a multipronged

attack. i would do 3-4 things. you just have to force the cash into the system. there is no doubt that there is an enormous amount of cash on the sidelines in japan. why aren't japanese corporations spending some of the money they have accumulated over the past 3-4 years? they are afraid of what the future holds. you have to be a leader and tell them to not be afraid and we are here to support you and you need to do your part. you need to spend the catch, research and development, hiring, rebuilding certain sectors of the japanese economy such as the financial services sector, which has been losing to other parts of asia, hong kong, singapore, shanghai, the three leading financial cities in asia now. tokyo probably comes in at number four bank. we have the money to change that. we need to bring jobs back. we need to spend and invest in

this country. the cash is here. there is no doubt about it. we have to get the cash out of the bank and into a productive vehicle or multiple productive vehicles. rishaad: what does it do to your investment advice you give to people? what is it do for investment strategy as well? how much is dictated by the volatility of the yen? certainly yen volatility is having an and or miss impact on things. inthink we are not alone thinking that we would like to range, yen and a 110-120 and that would be an appropriate number. those are forces beyond our control. what we can control and investment advice we give people, look, first of all, don't give up on japan. we have seen so much negative smoke andnomics's

mirrors, no real commitment there and japan will never change. i adamantly refutes that point. in the last couple of mons, what have we had that indicates there is a third arrow of structural change happening in japan and japan can be a competitive nation. the line ipo raising over $1 billion. pokemon go a global product sweeping the world. new york, london, not just tokyo, people running around with pokemon go in their hands. there is no doubt japan can create globally competitive products. there is no doubt that japanese companies can grow. look at the emperor and the whole discussion about him being willing to advocate -- abdicate. if that's not a sign of change in japan and you don't understand the impact of that, then you don't understand the japan story, how japan is changing. the results might not be a

until to an investor in 2017 or 2018 when the stock market starts to reflect some of these changes and we see more productivity in a variety of refuteut i absolutely the statement that japan has not changed at all in the last few years and has not made progress in that abenomics is not working. certain aspects are not working. we have not achieved 2% inflation. as more need to be done? absolutely. is the money available to change it and do we need policies that redirect money from savings into investment? yes, that is the answer, and i do believe they have a laser focus on achieving the goal. we are still just troubling, part of it is the global macro political risks and uncertainty in the nine states is greater than it has been since the end of world war ii. brexit, which has

disturbed a lot of investors, forcing cash to the sidelines in the short term. we think a lot of the change we want to see will come once the u.s. presidential election cycle is finished and we know who the president is and we know what sort of policies might result. the world and japan will have to adjust to those, but do we have the structure to make those adjustments? yes, we do. marathon not a sprint. thank you for joining us. ed rogers there. right, we have to take a break. coming up, america's moment of reckoning, hillary clinton to speak. we are heading to philadelphia next. ♪

in the next hour, we should be seeing hillary clinton make perhaps the biggest speech

of her career to date as she accepts the democratic nomination for president. she will pitch the election as america's moment of reckoning. what can we expect here? hillary clinton is going to describe this as america's moment of reckoning. this is the biggest beach of her political career. she becomes the first female nominee of a major political party. she will also seek to unite this democratic party, which behind me some supporters of bernie sanders chanting, breaking up the speakers on stage. no more war is what they are chanting. she will make a pitch to independent and moderate voters that she will need to win over if she hopes to defeat donald trump. has the convention achieve what it set out to, and that was to unify the party? a good illustration

of this is what is happening beside me. the berniesters from sanders socialist wing of the democratic party are continuing to chant, frustrated the democratic establishment see more supportive of the tpp. withare also frustrated hillary clinton's choice of tim kaine. the bottom line is this, hillary clinton will hit the campaign trail tomorrow and this weekend hard. she will stick around and pennsylvania, a key battleground state, then headed to ohio, so she is moving towards her general election strategy, focusing on key swing states like pennsylvania and ohio. you very much indeed. joining us from philadelphia. we will be going back to pennsylvania to bring you that speech live right here on bloomberg. ads.ernment crackdown on we will run to the figures.

cash markets getting underway in hong kong and shanghai, numbers coming your way right after this break here it the hang seng down by .5% in the premarket. ♪

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saying it was helped by an increase in trading income and a rebound abroad. shares and focus come projecting a $1.2 billion loss in the first half due to a right down on canadian oil sands assets. the first loss since 2000. they expect spending to fall this year. let's see what is going on. shanghai and hong kong, investors are waiting for that boj decision. some negative sentiment right now and shanghai and hong kong. juliette: we certainly do. sharesheck those cnooc after a flag that $1.2 billion loss, down by 3%, among the worst performers on the exchange. galaxy and sands coming under pressure as well. the hong kong market down by a third of 1%.

weakness coming through on shanghai's market, down by a 10th of 1%. has not been a great week for hong kong and chinese equities. down day asving a well, down by almost 1% in its first half hour of trading. we have seen upside in malaysia. korea looking good. the nikkei paring back earlier losses. we are awaiting the bank of japan announcement. they are expecting fireworks because we have been waiting a long time. will they meet expectations of the market, and of course follow on from the prime minister's surprise announcement earlier this week? a strong performer on the nikkei, up by almost 7% on that share buyback. australia and new zealand to the upside. looking at other players we are

watching in the region, cnooc, we have mentioned. fosun international also doing well. hitachi jumping the most since it listed as resul came in quite strong following the earthquake. softbank also in focus after earnings. sony coming through after the most analysts are looking past the earthquake on sony. getting confirmation, tokyo exchange confirming there

has been a halt in a 10 year jgb futures. no explanation as to why this is happening. futures trading halt in that 10 year. japan is all about governor kuroda to some extent, facing pressure to boost its stimulus. we are in tokyo. how are things going to play out today? is governor kuroda now in a corner? ?e has to do something or can he stay pat? good morning. yes, the market is certainly waiting for something. you mentioned the halt in trading, and strange movement and the yen this morning, so a lot of volatility and fragility and the market right now. yes, governor kuroda is faced with a huge dilemma. most are thinking he will

initiate new stimulus today. he made by expect more etf's or cut the negative interest rate lower or boost bonds buying to ¥100 trillion. we will know between noon and 1:00. we should get the announcement around that time. , what is actually the expectation there? what is the market looking for in particular? certain amount of data this morning, this amazing statistic that showed prices are falling faster than when the program was started in 2013. prices falling, excluding fresh food, by 0.5%, that is absolutely huge. they want a target of 2% and the

economy is limping along and we are nowhere near the inflation target they have set, so people one action to reduce the appreciation of the yen and generate more investment and spending by consumers and companies. rishaad: now you did mention that data earlier. that data dump didn't exactly, well, in gender feelings of, well, the japan was coming out of the woods, quite the reverse. >> indeed. we had a lot of data this morning, household spending data down to .2% from a year earlier, another drop, but it is a mixed bag. industrial production data was up. most people are expecting there will be some kind of move today, but it is not a sure deal. some economists think he may hold onto his ammunition and wait to see how the government

stimulus package announced this week will play out. rishaad: thank you very much indeed. right, let's get to some of the corporate stories. baidu on the way down in the extended u.s. session, disappointing guidance from the company. going through some tough times here, isn't it? it's not all their own making. >> some has to do with health care ads and recent controversy. we had a student die from cancer which looked up services on baidu that turned out dodgy. the government has been going through interventions and investigations. impose: government regulations here, but also self-imposed things going on, to0. >> in some ways they have fallen on their sword. behind the scenes discussion takes place between

the government and the company, and so the company recognizes which way the wind is blowing and imposes restrictions on itself. rishaad: what are people saying about this company. what are they saying about it getting out of this slump? before this set of results, a lot of people were bullish on baidu, thinking that while there would be short-term impact, it would bounce back strongly. the company itself has come out, the cfo saying the next two-three quarters will see a continuing impact from these negative changes to the way that they do business in search. how long it last after that has yet to be seen. you to: right, let's get another company making headlines with a stock price on the move. a continued decline in betting activity in that gambling hub of fortescue macau. -- hub of macau.

perhaps the worst days are behind macau, but these numbers from wynn painted differently. did pretty well, a solid quarter. the ip comes to their segment, it was a lucky quarter for them. bout thent bet was a same. it did take shares from its peers. it has kept profit study. price did not get hurt by the labor cost issues from the preopening on cotai, but there are still long-term prospects looking ahead as they open their new resort. rishaad: mid august that it opens? this is a mass market place for wynn. they are more a vip player than

a mass-market one, so what are people looking at here? it is a segment they are not that familiar with. >> you are right. they are shifting to cotai to compete in that segment, the higher end of that segment, the premium mass. in hong kong dollars, 2000 to 3000 per hand. are cateredities towards that higher end segment, but it is not to say that they are not doing anything to attract the masses. they have a gondola, a lake in front of the property itself, and all of that could drive more traffic to that property. it will be interesting to see how well they can compete in that space. how do investors been when they do finally open up in cotai, how will they measure success or otherwise?

>> they are known for their efficiency when it comes down to their gambling business, the bread and butter of the business. they do lead by profit per table. they are maximizing utilization on all the resources they have. , morey expand into cotai capacity, more mass-market that spends less than the average bip client, so it will see if that holds up. rishaad: thank you so much. we have to check on some other stories we are following. india planning to block arbitration payment of $1.2 billion to japanese partners. it is taking compensation for its stake in the indian conglomerate. it is wary of setting a precedent with 10 other companies seeking similar waivers. everbright is planning to test investor interest for a hong

kong share sale of $100 billion. it aims to gauge demand monday. they have a few to start trading by august. a $.5 billion raised this year. -- $8.5 billion raised this year. teaming up to build an offshore energy terminal to satisfy the city's energy demands, aim to have it operating by 2020. offshore terminals provide fast access to an oversupplied market. hong kong getting 53% of its , and 22% froml natural gas. the world's second-biggest builder of oil rigs, shares on the way down in singapore. this is after posting and earnings slump of 90% for semb

corp. sales dropping by .25%. joining in the battle against falling prices after profits fell by almost a half. coming up, singapore airlines seeing turbulence ahead. competition is clouding it's a skies. -- wel look behind what will look at what is behind its latest warning. ♪

rishaad: a quick check on the latest business flash headlines. nomurauarter profit in less than anticipated. net income drop of 32% from a year ago. $446 million. buying 2.6% of shares for

$427 million. we have to remain cautious as market sentiment is expected to stay week. ofhave become quite tolerant the harsh conditions, so we are confident of staying profitable. to be the new policy announced, i highly very the fact they are focusing on structural reforms. i expect this will re-energize the economy. rishaad: apple planning to sell $7 billion in bonds to add debt. it will allow the company to lower yields on securities it uses for working capital and debt repayment. it is relying on the bond market to finance the share purchase program. anglo american rebuffed approaches from an indian billionaire to discuss potential

ideas, including a merger. people familiar with the matter on they were briefed discussions, but no current talks. let's have a look at singapore .25%,es shares, down by the carrier issuing a warning on future turbulence, pardon the pun. the airline warning aggressive competition and passenger yields falling to the lowest level in six years. what was really behind this profit jump first of all? the biggest contribution was in thelow oil prices same quarter last year, fuel prices fell more, so it helped to reduce costs.

the other factor is their unit theysold a stake, so registered some extraordinary gains from that sale. hence why we saw a big jump in earnings. rishaad: this is not what is driving the stock down today. it is the airline saying they have challenges. what are they? the rivalry with some of the middle eastern carriers? the biggest challenge they face right now and have been and will be facing is the competition from the middle east carriers on the premium sector and from local budget carriers on the economy sector, so they are getting punched both ways by competition, and that has hit their yields, which you mention is at a six-year low at the moment. that is one of the biggest challenges they face going forward. right, well, what can

they do about it? how can they address these challenges? >> one of the things they have come up with is introducing the premium economy class service, which basically will service people who want much more comfort than a economy, and thinking business is too expensive. they are hoping that will succeed. other strategies they have taken is a how to, where they have hubs in sydney, australia through verge in australia and a a lot ofhere people expect the travel market to boom in the next few years. they are taking that strategy. apart from that, they are introducing new routes which basically is restarting u.s. routes to san francisco. a-350re trying to use the

to open up new routes and reduce costs as well. rishaad: thank you very much indeed. right, alphabets and amazon have been in pressing investors with results. >> strong results in both cases. alphabets and amazon -- amazon, alphabets core business number solid. revenue growth accelerated 21%. a fantastic quarter for them. the numbers i look at our interesting underneath the hood. number ofk at the people clicking on ads, those numbers shot up 23% on a year-over-year basis. decrees, down

11%. part of that is a function of moving from desktop to mobile. is other interesting thing google is offering discrete types of ad units, trying to figure out what marketers are willing to pay. they are selling them. amazon, look at those results. the amazon numbers were so strong, 30 1% growth on a year over year basis. if you look at their aws services, growing as a part of amazon, 9.5% of sales for the quarter, the most ever for amazon. big daddy faster than amazon, but the profits are happening. the profits for amazon web services were 58% of the profits

the company reported. this web services business is growing within amazon and faster than the rest of amazon and throwing off an operating profit of 25%. web services growing so fast and the rest of of amazon growing fast, topline growth, the existence of profits, something of a shocker when you talk about amazon, and a strong result there. rishaad: thanks a lot for that. looking at what is going on elsewhere. shanghai after plans to buy an indian drugmaker, theng $1.2 billion for biggest takeover of an indian company by a chinese company. that would give them control of new medicines and manufacturing facilities in indy -- india.

sab miller backing the takeover by ab inbev. big shareholders had asked sab miller to re-think the offer. sab miller jumping alongside shares and molson coors which will buy their stake in the joint venture. up next, the ride hailing war. how it could intensify competition between uber and didi. ♪

have beenber and didi given the greenlight to operate in china, removing a significant roadblock to expansion.

what are these new laws and what do we know about them? is encouragingnt a wider development of the sharing economy in china. the rules are much more lenient than earlier. suggest that the local governments would be issuing licenses, which was not implemented in this new law. details, thet the drivers will have to be registered with the local government authorities, but the hailing platforms can do that for them. run onor the cars that the road, they will be retired after eight years or 600,000 kilometers of usage. basically drivers have to have three years of experience and no criminal record. all in all, it is positive news for uber and didi. rishaad: what is their take away from this? have beend didi

operating in a gray area in china, shuttling people without clear guidance on whether their business is legit. this is something uber has struggled globally with and in the u.s., so generally positive news that the government has acknowledged their legal existence and given them more guidance. pricing, the enter sting thing is that the government says you cannot offer prices lower than the costs, so it does mean that their previous business model of burning cash is coming to an end, so expect more reasonable prices and a much more reasonable tactic in terms of competing with each other in the market going forward. rishaad: coming up, heading back to philadelphia. it is one of the most anticipated speeches of the dnc

if not the most. hillary clinton formally accepting the party's nomination and ramping up her bid for the white house. this is bloomberg. ♪

rishaad: you are watching trending business on this friday, 29 july. i am rishaad salamat. we are watching the yen swinging along with the asian stock market. kurodassure on governor to take action. hillary clinton is preparing for speech of her career. accepting the democratic nomination saying america is

facing a moment of reckoning. stable allocations for the new wynn macau. countdown -- to the boj decision. it is weighing on sentiment when it comes to the trading day. juliette: boj day. the nikkei is still under pressure. down .5%. the big spike in the yen in the early part of the session. there is speculation that it could have been just algorithm trading. they are awaiting fireworks from the boj. they are trigger-happy to sell if it does not meet expectations with stimulus. we have seen a lot of those export companies waiting down by the again. alsoin