it is tuesday, the ninth of august. this is "trending business" with me, rishaad salamat. ♪ taking you to tokyo and sydney in the next 60 minutes. we are looking at asian stocks. all 10 industry groups posting gains. brent crude trading above $25. the cartel says they spent the market to stabilize by years end. hong kong property stocks are the hottest they have been since

.he 1950's that is more than two decades ago. the market action. pretty much green at the moment. in different in the u.s. coming onnd taiwan board. a holiday in singapore today. here is a look at what has happened so far. haidi: caution has been the team. we have pulled back from games that we saw earlier. the tokyo session is flat at the moment. the nikkei coming off that 2.5% gain. we do have a slightly stronger yen today. that is weighing on japanese exporters. rbnz expected to cut rates again this week.

we are seeing energy sectors driving the gains across the region. elsewhere around the region, taiwan is flat despite having a beat on import and export numbers yesterday. .alaysia also up singapore is closed today for a national holiday. let's take a look at the movers. nintendo back in the spotlight. it has been a few days. here we go. pokemon go, a report out over the last couple of days saying that revenue crossing the $200 million mark. nintendo surging by as much as 8% today. 19.highest since july that was also when we saw the precipitous nosedive when it came to that stock, down about 13%. up.endo still

gainer despite reporting a 3% decline in cash profit. possibility that we will see some cost-cutting efforts in that andy space -- energy space. you can see these gains across the oil and gas space. some of the gold miners rebounding today after the declines that we saw yesterday. rishaad: producer price numbers are out in 27 minutes or so. numberhe producer price still in inflationary terrain. here is juliette. juliette: a slight edge down in consumer price inflation. median estimate of 45 economists

inecasted 1.8% year on year july, down from 1.9% in june. that will be the lowest rate since january. it should reflect the normalization in food price inflation between had a supply shock at the end of the year. looking to business inflation, as you say, still in deflationary territory. it is expected to edge up to -2% . very much still deflation, but a huge improvement on the level we saw in january. this is a combination of international commodity prices in the industrial sector. as we see a bit of stabilization in growth in the chinese economy. inflation well below the government target for a 3% increase. room tos give the pboc

further ease policy is needed. fraud will refrain from and monetary easing as it keeps the balance. delusionit is quite a out of china this week. we have a lot out. tell me some of the key points. a huge week. , china's mainata monthly measure of credit growth. it is a widely volatile period. the forecast is one trillion yuan in eufinance in july, down from june. on friday, the big one, industrial production, a major indicator. forecast held at 6.2% year-over-year. fairly steady at 10.3% year to date and 10.5% in july year on

year. monday, we saw a bit of an expected trade surplus. imports are still a huge miss. still very much week domestic demand. rishaad: we will have add a look at that story in this show. do give your opinion. oil trading near a two-week high . opec announcing formal talks next month. stabilize by the end of the year. bloomberg energy will tell us about the situation. how significant is this meeting? >> it is a situation where opec talks and the market reacts. everything about this meeting is routine. it is a routine meeting. even the talks are quite routine. talk to eachrs

other about the oil market with the meeting in various places. the market seems to have tempered the talks, hoping for a deal. the market is rebounding from the bear market. it didn't below $40. his are coming together. a lot of speculation seems to be pushing the price up rishaad:. what does it mean for a few members who want this production freeze? a lot of resistance from tehran. is this -- is there any agreement on that? >> what you can compare it to, the last time that these talks were first flagged, the market is in a better position than it was. you compare that to the start of the year. supply was outpacing demand. at this point, it does not look like there is any need for a

freeze or cap production. the ministry saying there was no need for any type of meeting. at this stage, it looks like it might be talks, speculating on the sideline. ,ntil we hear anything formal it is unlikely anything will happen on that front. rishaad: thank you very much. the latest on the meeting taking place over in algeria next month. let's have a look at some of the other stories we are watching for you. ingles.david david: we will be tracking shares of the property developer in shenzhen. surged.ave we know that that state has been raised to 5%. have a look at the one-we change. that is based on a filing from the company bank.

those other ones listed in shenzhen over the last two weeks. these two companies are rivals. you have the analyst at j.p. morgan that ever grad -- evergrande does have a history of takeover attempt let's talk more deals now. doubling down on its e-commerce bets. it has agreed to buy jet.com. founder will oversee the combined online over -- operation and both will keep their own branding. that will be separate. it is walmart's biggest that yet -- bet yet. jet does give walmart and asset that just topped $1 billion in merchandise in just over a years time. that is pretty impressive.

of course, have a look at this chart. sales at brick-and-mortar stores have been slowing consistently for the past two decades or so. is the biggest company in the world by revenue. number one. by sales right 34th and revenue, but it is number five. of course, staying here, we will talk about tech more. a lot of of people are looking forward to the new iphone, which sources say may unveil as early as next month and here is what we know about what these new iphones may offer. say it will be more or less the same in terms of design. with noticeable tweaks. the larger one will have the dual camera system that will produce writer photos with more

details. in the process, merging the two into one. it no longer going to have the headphone jack. the sizes will be the same. 4.7 inches for the smaller one and 5.5 inches for the bigger one. apple will also be removing the two innermost antenna lines. they run at the back of the iphone. we reached out to apple and they declined to comment. rishaad: on the website, we are looking at japan's efforts from the seabed. later on theg up program. and we are heading to sydney, hearing from a strategist who is cautiously optimistic on hong kong and singapore. that is next.

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rishaad: a quick check of what is going on with market in this part of the world. sydney.orea, we are giving up some of the stronger gains that we had at the start of the session. it has been a fourth day of gains, taking stocks to almost one-year highs. crude trading eight had higher. the highest price in two weeks. let's get you to sydney, where we have the chief market strategist at cmc markets. give us a flavor of what is going on, in your view. >> we are seeing a. of performance from the asia-pacific region and the emerging markets. the reasons for that are pretty clear. there are potentially structural

disruptions coming through. recent data in the u.s. has shown some improvement. ,rom an investment point of the that means the asia-pacific winner -- region is the winner. we are seeing good gains year to date in markets across the region. the other markets and the emerging markets like malaysia and thailand, we are seeing double-digit performances in comparison to what we are seeing over the same period in europe. good news for investors locally. rishaad: what about the job number on friday? it is that making you feel? does seem as though people thought there could be a rate hike this year. it is becoming fairly academic. what difference would it make? let's say we do get the rate hike and have a little bit of a breather.

>> that is exactly the question. there has been a curve in the periods of weakness and strength. we are coming through the most recent period of weakness and heralding a picture of strength. u.s. markets trading at all-time highs. that looks stretched. the question is, is it about low interest rates or is it about the flight of money. if we do see at least one rate hike this year, and i would not rule out the possibility of two if the data continues to strengthen, how will it respond? it might still hold up if it is a flood of money, if it is not just about the low interest rate hurdle. if that is the case, a lot of us will have to rethink our approach to the markets. rishaad: i am going to stick with equities and look at the higher risk market you are talking about here. valuations stretched

for the u.s., one of the things you favor is in hong kong and singapore as well. >> absolutely. they have well-developed markets, great prospects, and are trading at good multiples. dividend yields close to 4%. 12.5% thursday. payout ratios look conservative. the only reason not to be in hong kong is if you have a credit crunch in china. it looks attractive to local and international investors at the moment. rishaad: that leads me to the other bit of your research. i am a believer of gold above 1300 right now. >> that is right. gold has had as good as it can get rid fears about potential

disruptions. we have had concerns about growth in the u.s. none of these have come to fruition. we are looking for a turn in the u.s. data. we looked -- likely to see a .eriod of stronger u.s. data the stronger u.s. dollar will be one of the key factors as we move away from concerns about a breakup in europe. as the u.s. dollar strengthens, i expect to see gold come under severe pressure. a drop below 1300 will signal a further move down. rishaad: gold above 1300. looking at hong kong and singapore and liking those. you are suggesting short u.s. stocks because of the earnings season being over with and the response to that was required.

>> yes. we would like to see a healthy pullback in the u.s. markets. valuations look stretched. the recent earnest season does not justify the levels we are at. there is the -- there is some relief that the fallen earnings was not as bad as expected. earnings isdrag on still around 3.5%. that is bad news. earnings is one of the surest predictors of price moves. if we are revising our expectations downward, it is likely the markets would come with a stronger u.s. dollar. we have seen what that does to the u.s. economy. it certainly has a drag on the growth affect. put those two factors together and i suspect the u.s. markets are about to go through underperformance and other markets around the globe will catch up. fallnot looking for a huge

, but a 6%-7% fall would give more sustainable footing for gains. rishaad: great to see you. a quick check on the latest business flash headlines. india's lower house of parliament approving the prime plant --s constitutional amendment. more than a dozen states and federal levees. saying that small businesses will be the main beneficiary. net income up 36% in a year over year period. that exceeds the company guidance. in june 2016 grew year-over-year. 89% of them are on mobile.

shipbuilder has failed to make a bond payment that was due on monday. wuhan logistics failed to deliver payments on $60 million. at least 18 chinese-u.s. bonds have defaulted this year. up next, hong kong property stocks have not been this hot the bubble some two decades ago. are the alarm bells ringing? we will try to find out.

rishaad: this is "trending business." hong kong real estate stocks are

as hot as they have been since the city's last housing bubble. this has got some people worried. >> it has. date, the hang seng property index has gained 12%. january, it since has surged 37%, which is a considerable amount of gains in less than six months. the look at the 20-your situation, it climbed to its highest level versus the hang seng in nearly 20 years. rishaad: it is quite something, isn't it? >> and that was on july 29. greatst time it was that was in october of 1997, just before the financial crisis. you know what happened after that. let's take a closer look at the hang seng property index and look at the big gainers for that one.

just shy of 20% gains year to date. 12, up just over 45% against the broader hang seng index. rishaad: the thing is, the housing market used to people in september. suggesting this is due for a big correction. it cannot be related to fundamentals. what is the driving force behind this? >> there have been low borrowing costs. borrowing costs are near record lows. and concerns about increases in rates have eased the last few u.s. fed rate a hike has been pushed back. with the stronger jobs number on friday, that is part of it. home prices have dropped.

home prices fell about 13% from record highs, as you mentioned before. alarm bells must be growing out and there are concerns about another collapse in these stocks, right? >> perhaps a collapse is a bit extreme, but looking at a dent in the property market. economic growth in hong kong is weak and there has not been a large supply in the number of flats available. authorities that bloomberg intelligence say the number of units completed jumps to 71000 and the end of june, the highest in 12 years. but there is some way to go in this rally. they are saying that hong kong property developers are still cheap on an international level. thank you very much indeed. i am going to tell you what we have coming up.

all important data for this week. it is these inflation numbers. cpi, producer price index, levels we have not seen. deflationary pressures on the consumer price figure. ♪ [ hip hop beat throughout ] [ fans cheering ]

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♪ to the couch where you at? ♪ ♪ "show me the latest medal count?" ♪ ♪ xfinity's where it's at. ♪ welcome to it all. comcast nbcuniversal is proud to bring you coverage of the rio olympic games. rishaad: it is 9:30 a.m. in hong kong. asia-pacific equities on the way up. closing in on a one-year high. equities, just a slight move higher, a pullback in the yen. oil giving up some of the last session's gains, almost 3%.

opec has called an informal meeting in out years next month -- algiers next month. six years of record earnings, the cost involved in shrinking the cost of operations. the outperformance is ringing alarm bells, investors worried shares climbed too far too fast. china,r price numbers in many signs of this overhang disappearing.

juliette: bang in line with what the market was looking for. the lowest rate we have seen since january. food prices rising quite significantly. inre was some flooding southern china, that is likely to have boosted inflation prices. thealization following start of the year. ppi has narrowed in july. this is a deflationary territory, but the best rate we have seen. you have to look back to january. the survey looking for -2%. deflationary pressures easing somewhat. see a littleng to bit more stabilization and normalization coming back

through. reflecting firmer commodity prices. a very good rate coming through for ppi for july. looking at that cpi number, very much what the market was looking for. cpi came in at 1.4%, also above estimates. estimate was 1.2%. we have seen the big jump coming through in food prices, up 3.3%. we know the central bank in china still has a few more arrows to fire if it needs to in terms of monetary easing. thank you for that. look at anying a

reaction. what is going on? >> we are getting a little bit of weakness coming through from the aussie dollar. letdown.bit of a we do have the aussie dollar sitting at .7643. very strong gains in the overnight session. we did get a pretty good reading in terms of chinese demand for australian commodities. the trade data came out, boosting some of these commodities. not about reading in terms of the chinese inflation numbers. a little bit weaker in terms of the aussie. we did have the copper price making early gains. this is what we are seeing in

terms of the equities picture. hong kong shanghai open, shanghai looking pretty flat, indicating negative. we did have that volatile session across the region yesterday. elsewhere.luster negativity coming through from southeast asia as well, malaysia down by a quarter of 1%. over to australia, new zealand, sx looking pretty flat. a little bit of mulling over what this potential meeting of opec members will deliver. supply cuts, perhaps that will be on the table. with the correction and oil price over the last couple of

hours, we are still seeing gains in the energy space. japanese oil producer up by one and 7/10 of 1%. jumped the most in 18 years. best performer on the topix. rishaad: brother industries still going. index coming in at 4. the index for business conditions coming in weaker, eight as opposed to 11 in the previous month. about even though the bank announced a falling cash profit for the third quarter. good morning. bad debt, it was not good.

it was in line with the first half, that once you strip out those provisions for bad debt, the results were not too bad. cash profit up 5% if you ignore the provisions. once you lump the men, cash profit down -- lump them in, cash profit down 3%. net interest margins have held steady. on the afxrformer today. anz continuing to reduce its focus on asia. it is focusing on its core strengths. we are waiting for the big one tomorrow, commonwealth bank reporting earnings, make september sent of the local

index -- makes up 10% of the local index. athaad: we will take a look some of the other stories making headlines. donald trump laying out his plan for growth in the u.s. telling the detroit economic club he wants to simplify regulationssiness and to simplify the energy sector. i am proposing an across-the-board income tax reduction, especially for middle income americans. this will lead to millions of new and really good paying jobs. the rich will pay their fair share, but no one will pay so much that it destroys jobs or undermines our ability as a nation to compete. delta airlines is

struggling to resume normal failure at ther atlanta hub. displays,tus technology was disrupted. the emperor of japan is concerned about his role, telling the nation he is worrying. he refrained from discussing abdication as that would require a change in the law. ofbecame emperor in january 1989. he would be succeeded by his son. --zon's office in japan let's get over to our asia tech

editor. what do we know about this inquiry? >> the one important thing to know about this is that it is not a full-blown investigation. it is an inquiry, they are asking questions, doing some preliminary research. an investigation is a much more serious issue in japan. at the core seems to be what amazon is asking its sellers to do, vis-a-vis amazon and perhaps not with competitors. those details are not very clear. amazon has become much bigger in japan. this is because it has caught the attention of regulators due to its increased presence in the local market. rishaad: give us an idea of how amazon japanese business is doing at the moment.

>> amazon had about $8.3 billion worth of sales in japan. if you look at the company's entire revenue number, it is not that big, just under 8%. amazon has become a household name in japan. they launched here back in 2000. they have their prime membership program, a rather sophisticated distribution and delivery network. it is a big business. there is no doubt about that. with that comes an extra level of scrutiny, which they are now experiencing. this is also happened to a lot of non-japanese companies operating in the country. we will just have to see how serious this inquiry gets. rishaad: what changes might we see from this? it is not a full-blown inquiry,

but is it an act of punishment? see somely we could sort of statement with an agreement on changing business practices. there could even be a fine. there is no hard information at the moment. that has been the historical pattern with these sorts of inquiries. we will just have to keep a close eye on it as well as how amazon is faring in japan, one of its biggest markets overall, especially in asia, where they are also trying to get into other places like india. this is going to provide a benchmark of sorts for how amazon will operate in other countries. rishaad: thank you very much. getting back to what is going on in the hong kong market. shares up for a sixth day, the longest winning streak for the company since march of 2015.

reaction to the latest economic data out of china. ♪

rishaad: barclays agreed to pay investigation into interest rate manipulation. -- it is theon first lender to settle on this one.

the cfo resigning on monday. overng club has struggled an internal inquiry. gapslumping in extended -- slumping in extended trade. they were down 4% last month. analyst expecting a decline of just 1%. second-quarter results will be released next week. latest back to the inflation number out of china, pretty much in line with estimates. .reat of you to join us

cpi is bang on. i want to look at the ppi number. it does show we are weeding out this overcapacity in chinese industry. are we reducing the inventory overhang? seeing somertainly progress. i'm afraid we still have to weak there is very domestic demand. the data looks much better, but it was based on a much lower base than a year ago. looks pretty good. flood making the vegetable prices going up. it looks like the core remains quite stable. aggregate demand is rather

sluggish. rishaad: so much pressure when it comes to inflation. you can tell that with the important numbers we had out of the trade data yesterday. >> absolutely. if we look at the commodity imports, it looks pretty weak. that is a sign we still have yet to see the investment demand has come back on firmer footing. still very much in the middle of this capacity reduction process. rishaad: how long will it take? >> we really need to see more momentum coming from the demand side. maybe extended property investment growth recovery or better infrastructure investment. from the private sector investment perspective, we have yet to see more momentum. rishaad: how will the people's

bank of china look at this? there does not seem to be much here for them to work off of. >> at the moment, i believe policymakers look at the whole set of data and their perception might be that it looks reasonably ok. economic fundamentals look rather firm. they will not be in a hurry to introduce more easing when they are concerned about the overall leverage ratio. rishaad: how do they deal with the debt? you have to be clear as to what the actual debt is. we just do not know. >> correct. we look at the data. the public sector leverage is not very high in china.

problem is that it is already at a high level. it will potentially hamper the recovery by the time china is getting out of the current slowdown. rishaad: a lot will be contingent upon what happens globally. >> absolutely. rishaad: how does china react to its debt issues? are we seeing progress? these zombief companies be allowed to fail? if they do fail, how will it be dealt with? >> i'm afraid that is only part of the issue. the zombie companies, we should allow them to die. to get out of the high leverage, the problem is in the denominator. you need to get the productivity growth up through institutional changes. rishaad: that is the problem.

andhave the private sector the state sector, two completely different beasts. the case.aid that is neither is seeing very strong demand. tore is not such strong boost china out of the high leverage. we will not be able to see an easy solution. it means fewer jobs as well. that is another problem to grapple with. >> i am more optimistic in the long run. the future opportunities for investment, think about the -- inng in sittings cities in china. think about the traffic jam. even tier two cities these days.

the growing middle class is demanding more and more stuff, but it is not being offered because it was highly regulated. a lot of areas can be changed and they are investment opportunities. rishaad: thank you so much for coming in. the shares of a company that electronic casinos in the philippines. most atmbling by the the moment. gaming regulators saying it will not be renewing the company's contract. the president ordered a stop to online gambling at his first cabinet meeting. is this still the happiest place on earth? expectedvenue growth

for disney. we got a preview. ♪

rishaad: back with "trending business." disney set to come up with its third-quarter numbers later tuesday. analysts expecting strong studio growth. scarlet fu breaks down the numbers before they are published. >> disney reports earnings after the u.s. closing bell on tuesday. theme parks, movie studios, and tv networks. let's dig into all of them. you have the theme parks. bob iger opened shanghai disney back in june. disney attracted just under 140

million visitors last year. the shanghai park is critical to disney in helping boost its international business. business has not reported a profit on its international -- disney has not reported a profit on its international park business. disney could see a record box office this year. the film operating income jumped 27% last quarter. season, other films could supply big boosts. there is also another star wars movie due to be released later this year. on the small screen, espn and the cable networks are a big profit driver for disney. this quarter, the result are a

mixed bag. cable advertising expected to rise, and subscriber loss weighing on espn. translates into 10 million fewer customers than in 2013. because of the high demand for sports programming, espn charges a high fee. disney is vulnerable to people unbundling their cable packages. we will be looking for numbers when disney results cross after the u.s. closing bell on tuesday. rishaad: to get more on that story and all of the day's top bloomberg.com is your online source. laste next hour, the policy meeting as the governor

of the reserve bank of india. looking at his legacy at the helm at the r.b.i.. this is bloomberg. ♪

>> from our studios in new york city, this is "charlie rose." charlie: he is a staff writer for the new yorker, a senior legal analyst at cnn. he writes books. his new book is called "american heiress." in an age of terrorism, the chronicle how she morphed into a gun toting revolutionary, a definite fascination. i'm least to have jeffrey toobin at this table. welcome.