fund may go shopping after the value of its investments tumbles, it might have to spend $53 billion. and it was to the rescue, sinopec outperforming big rivals. 98%, and a first ever first-half loss. also coming up, caught in the crossfire. artists find themselves caught up in spotify and apples fight for streaming supremacy. juliette: and i am juliette saly keep an eye on the markets. it is a tale of two central banks today. governor kuroda's comments that the bank of japan may add more stimulus is lifted -- has lifted the nikkei up over 2% on the lunch break. emerging-market stocks entrancing getting a hammering after janet yellen putting the likelihood of a september rate hike on the table. the yuan at a five-week low. the one also falling. -- won also following.

i will have more in the markets shortly. angie: thank you. central bankers reaffirmed their belief in the power of monetary policy at their meeting in jackson hole, with janet yellen signaling a hike is still on the table next month. meanwhile, we have kuroda vowing to act decisively on stimulus is needed, saying there is ample roof -- room for additional leaving. editor brettnomy miller is in tokyo. what clues does this give us, at the boj meeting? reporter: we are certainly in for a tense wait.kuroda has implicated as he has said before,, that a full increase in policy is possible. that means we could see negative interest rates cut further. we could see the asset purchase plan increased as well. variables ist of

open. we have seen in recent days, analysts talking about the possibility of the boj moving into new areas including looking at buying local government bonds, and areas where public corporations are issuing bonds projects,t like rail sewers, building hospitals. a whole host of areas we could see the boj moving into. at the boj meeting in a couple of weeks from now, will this comprehensive review we are hearing about at the meeting actually affect policy? reporter: it really is a wildcard, but we have had the governor say previously after the review was announced that there will be no retreat. when he signaled the review, he was talking about finding ways to the pricej target. we certainly expect more rather than less. that said, there is the they could that

question the effectiveness of policy, and then everything is up in the air. and, everybody is questioning the price target whether or not the language needs to change. what about inflation? reporter: inflation really is a week.oint, as we saw last cpi came in at -0.5% in japan. that puts it back in exactly where it was when kuroda began. the bank has struggled to hit the inflation target, despite the record monetary easing. we will see questions raised more and more about whether they have to give up on the target, or at least the timeframe. ifn people are waiting -- they don't, people are waiting to see more stimulus to boost the prices of the target. angie: brett miller, thank you for that out of tokyo. staying in japan, the boj, another central bank having a front row seat as janet yellen spoke at jackson hole, and indicated a rate hike is on the way. chief economist

david carbon saying, the fed must be more resilient to global events when it comes to making the big decisions. >> if something would happen in financial markets, they would back off, or get a bad payroll number and the fed would back off, and then brags it came off -- brexit came up.all the while, the economy has been doing just fine. then when it caps off, to get a little further behind the curve. it is not really a hawkish move, it is saying we have to start paying attention to the real economy, and not getting so freaked out by the little financial market shenanigans, which for the most part, they totally are. many inferred that a september hike remains on the cards, j.p. morgan says it doesn't matter when the hike happens, but by how much. >> rates are simply going to normalize. we need to see a period english interest rates go up in the u.s., and whether it happens in , december it does

not particularly bother me. what matters is how far they go and what that will mean for the long end of the curve, which is low at the moment. with low bond yields, that is converted into equity markets that are very bifurcated at the moment. they discussed different potential ways of jumpstarting the global economy, patrick of the texans as doing nothing is not an option for the boj. >> in japan, no way to read a cannot stop- kuroda your japanese banks are holding two years of gdp bonds in their assets. if you stop monetary policy, there will be a banking crisis immediately. my worry is that central banks feel that the burden should be shifted to the rest of policies and government should do more, time,s, but at the same they are constrained and cannot

stop. angie: that was the word on the fed meeting from asia. the marketsck to with juliet. janet yellen's comments have the most adverse effect on stock and currencies. juliette: they have. we have the yuan trading at a five-week low, and the korean won also under significant pressure. ignore this impressive gain from, japan and what you it falls more than 1% coming through. we knew that if janet yellen was going to be more hawkish than the market had expected, that seems to be the case with putting the september rate hike bike and the table -- back on is able. that is what we're seeing. jakarta down around 1%. singapore up by 8/10 of 1%. the hang seng up by a third of

1%. it is holding at a two-week low. this is amid concerns the borrowing costs could actually start to dent the already fairly fragile property market in hong kong. we know that has been weakening. and shanghai, the market looking pretty flat. a lot better than it was earlier than in the session. it is very solid game from -- gain from the nikkei. the divergences in the central bank, policy as the is looking to tighten monetary policy. it looks like rhoda is putting the chance of loosening -- kuroda is putting the 10th of loosening my three policy back on table. having a look at the emerging leading the korean won the charge against em currencies down by 1%, versus the dollar at 1123.75 korean won. this is dollar strength on the back of janet yellen's comments. it has had this impact. also the chinese yuan at a five-week low. not much moving, looking at the offshore renminbi.

it is a little bit stronger holding at 6.6883. also, the weaker japanese yen is helping in part to boost japanese equities, down a third of 1%. 102.15. upward pressure on japanese equities down elsewhere today. angie: thank you. let's check in on other headlines. james packer has sold his $338 billion -- 338 million dollars state, reducing ownership by almost half. the billionaires privately held investment vehicle, consolidated pros holdings, agreed to sell 35 million shares at 12 australian dollars a piece. shares fell down 2.3% in sydney. struggling air blog -- airbag ker to contact, suffering

more headlines. reports from texas say one person was killed and four others injured in an explosion on a subcontractors bus. it happened last monday, though few details have been released. says the truck was carrying airbag inflator is an confirmed it is working with an official investigation. volkswagen korea has reportedly said it will not take legal action in response to a ban of 32 of its models of the emissions scandal.that is according to news. the van affected 83,000 vw cars earlier this month. korea's environment ministry launched investigations into 23 foreign automakers, and 110 diesel models for possible manipulation of data. japan's giant government pension set for a it could be

shopping spree. shery ahn is looking into this. the besto back in game, what does this mean for stocks? orry: it depends on whether not the fund stays committed to their allocation target. but we know so far is the value of their investment in stocks has plunged, with the market in japan following this year. the topics being double-digit losses this year. what that meant was that their the allocation and japanese stocks, fell to 21%, instead of the quarter of the portfolio, the 25% they were targeting. take a look at the graph. you can see their allocation and stop -- in stocks, domestic and foreign, are falling short of the target on the blue bar. the only asset where they have a slightly overshot is in domestic bonds, because of bond yields falling and prices rising.

the weight of the holdings has passed their allocation target of 35%. essentially means is that they will need to spend $53 billion in japanese shares in order to get to that 25% target. they have some leeway on whether or not they want to stick originally to the target, but the fact is that the pension fund seems committed to keeping up their strategy. take a listen. holdings, theuity earnings ratio may appear volatility in the short-term, but in the long-term, it is easier to achieve the profit target the pension fund system aims for. we don't intend to change our management style, where the acid is the accumulated through stable interests and dividend income. shery: the reason they are

talking about volatility in the short term is because their strategy has seen headwinds. their domestic debt, that is the only asset class where they had actually recorded a profit. they saw $52 billion losses in the fiscal year ending in march. angie: i guess one positive at least for the japanese economy is the famously low jobless rate. shery: you are right. if you take a look at the 3.1% and unemployment rate for june, we could see that the lowest since 1995. we can see on the graph, more jobs are also available for job seekers. we can also see the unemployment rate has been steadily declining. hidden behind this data is the fact that although we have seen an overall increase in the workforce, there were 14.7 workers between 25

and 44 years old in june, and that was the lowest level in 48 years. take a look at the next graph, showing that although we have more women in the workforce, we can see that male workers have been declining. although this looks great for female workers, the fact is that female workers are more likely to hold low-paying jobs with fewer benefits, such as part-time jobs instead of full-time jobs. a persistent problem there. thank you. coming up later this hour, pulling the plug. the new rules which could kill some chinese electric car started. next, fighting deflation is a strategy from central bankers at jackson hole. morgan stanley's jennison garner joins us. this is bloomberg. ♪

angie: welcome back. you are watching "asia edge." i'm a -- i am angie lau.

at least nine dreamliner flights between now and wednesday canceled because of engine problems. corrosion in the rolls-royce prompted them to check all of the fleet. last week, ana said he had been experiencing in -- issues. three planes suffered trouble -- e in flight, an mitsubishi has aborted a tech flight of the domestically designed airliner for the second time due to problems with online systems. it returned to know ugly up because of an error in the air-conditioning system. mitsubishi says the plane will be fully inspected, but will not fly to the u.s. today. agricultural bank of china posted second-quarter profit game -- gain of half of 1% on

the back of increasing bad loans. net income rose to $7.6 billion, leading estimates of $6.7 billion. the bad linebackers down by 3%. let's take a look at the reaction to jackson hole here my next. guest expects emerging markets to continue. let's bring in jennison garner, chief agent and emerging equities strategist at morgan stanley. you still call for equal weight despite the reaction from investors today selling off. >> i think there's a bit of profit taking there, because what is achieved at jackson hole question of the next more debates about ultimately, we think they will not hike rates, and the dollar will remain stable. much more important, em growth is actually accelerating, and

all the big countries except china where it is stable. we are seeing a turn in the earnings cycle. e.m. surprised on the upside. earnings revisions are far more positive than they are in japan. angie: but that will end when the fed raises rates. >> i don't think the fed is the be-all and end-all for growth for countries in asia. there are many other countries that drive that. angie: but sentiment investors looking for yield, if they increase rates in the u.s., that is where they will put their money. >> i think you have to be careful about nominal yields and real yields. if rates come off the floor in nominal terms, that is important. one of the points we made all year on the yen, as deflation settled back in in japan, you actually have deflation in japan, with the short end of the curve for interest rates have been higher than in the u.s. that is when you know the nominal rates move in a different direction. last december, it has been that way. angie: investors seem to

believe, kuroda and jackson hole saying he still has a lot more ammunition left, a lot more policy left. least fromnk, or at morgan stanley, your team thinks -- >> the yen can strengthen further. yes. july.k to i think we paused for reflection on the part of the boj. there was a long study period to find out what they will do on the 20th and 21st. will expand their qqq e program. this is encountering diminishing returns. is not thelicy be-all and end-all in growth. fiscal policy needs to come for productivity improvements. ironically, china understands that. they did modesty -- monetary and fiscal easing which is why the economy is in better shape this time. most everywhere in the

developing world, we have not had enough easing. n,gie: was jackson hole a yaw or successful when it comes to guidance? >> i think they're trying to keep the markets honest about that. it prompted profit-taking today in relation to em, and covering shorts and japan. but you have to get back to structural problems and why we are having the policy debate and what are the limits to monetary policy. angie: she did not mention negative yields, but there's a lot of academic argument for negative yield, also diversifying asset purchases. do you think we will see that in the u.s. in the fed? to behat we can see >> not on the cards in terms of the debate in the academic community. it has happened. and inpe in a major way, japan. i covered japan to one of the

unfortunate episodes that happened this year is negative rates caused a major problem ground credit transmission and bank profitability. there was a backlash from major brinks -- banks for the boj which is why they entered a study period to figure out whether negative rates do more harm than good. angie: and for the consumer class, it means they have to save more if they want to retire. >> there's also the signaling thing around negative rates. when you go to when extreme of actually going to negative rates, it is to an extent a shot to the consumer sector.it is saying, we have a real problem here . we can debate how real the problems are in europe and japan, but i think that's land the american side and the other side of the atlantic, that they are so reluctant to court that. angie: jennison garner, stay right there. -- jonathan garner, sera there. we want to get your outlook in the group discussion on pmi's this week, the jobs report, and the rest of the year. thank you. still ahead, fueling the first half.

sinopec outshining its rivals. this is bloomberg. ♪

angie: welcome back. you are watching "asia edge." refining came to the rescue for gas in china. the company far outperformed as -- c energy right -- what are the results? stephen: downstream been a saying sinopec as opposed to its rivals. the refining side of the business is supply costs, much lower when crude is down.crude averaged in the first half about 30% . the firstcompared to half a year ago. .hat helped input cost there's also a new policy from the government that put a floor on gas prices at the pump, helping refiners.

they are pumping a lot more, or refining a lot more than petro and cnoc. petrochina company more than double. they really benefited. petro china and cnoc, we got they werelts lesley, the worst result on record since they listed, which is basically on record. sinopec outperforming 19.9 billion yuan profits, 3 billion u.s. profits. year-over-year, but more than double what they did in the second half of last year when they had the worst 2000 angie: two. how do they plan on continuing this. they will keep on refining and keep on making gasoline from the crude. they will increase refining three and a half percent. that has been their bread-and-butter. and are exploring

processing less. they are the three largest producers, but production dropped 11.5% in the first half. what you will start seeing is more refining beat -- because margins are fatter there. angie: fat margins. ok. have to check that out. thank you for that, stephen engle. let's check in on some trading for you right now. starting in sydney, where we are much, theses pretty predominant story across the regio, as we see the impact of a hawkish fed from jackson hole. down 1%. this is the view from their -- t here. arerally speaking, we seeing the dollar rising on these rate hike signals, especially affirmed by the deputy stanley fischer after jackson hole, comments by janet

yellen. in hong kong, we are seeing a polluted sky, and a down, dour day as well. but the highlight in the region is japan, after this break. ♪

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angie: the top stories this hour. boj governor kuroda's affirmation of his commitment to stimulate stocks -- the economy has boosted japanese stocks. the odds of a rate hike from the afterxt month increased, janet yellen's comment at the economic symposium in jackson hole. the world's biggest pension fund may go on a shopping spree, after the value tumbled last quarter. we calculate that japan's government pension investment fund would need to spend more than $50 billion on domestic shares to meet its goal of having a quarter of the

portfolio in stocks. it was at 21% at the end of june.the fund also has room to upload domestic bonds, which are above the levels. cheap oil for the world's biggest refiner in the first half. 22% climb ind a profit with net income down to $3 billion. the big tree energy companies in china suffered this year. they all have. petro china sought profits fall 98%, while cnoc announced the first ever half-year loss. seized thes the global oil glut continuing and prices staying low. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. let's get the latest in the markets right now. a bit of a mixed day. yes, a next-day day.

we have a great game coming through in japan, running back after the lunch break and holding onto the 2.4% rally. this is what you get when the bank of japan governor kuroda signals there could be even more, loose policy action whereas janet yellen on the talking about tightening monetary policy in the u.s. and putting the september rate hike back on the table. we have seen quite a lot of weakness coming through in emerging markets, and stocks and currencies, but japan leading the way. the weaker yen pushing companies hire. so you to up by about 4%. it is the car and electric appliance makers leading the way in japan. in australia, a negative session led the asx by -1%. -- weakerobe caribbean while. the hang seng is trading at a two-week low. there is concerned there could be something in the property market.

impact of some of the currencies, particularly the japanese yen continuing to weaken. 1% aty around a third of the moment holding at 102.09. that is the state of play in asian markets. angie: china has launched more than 700 investigations into wild price swings on the stock markets. according to official we have rosalind chin on the story. why have regulators stepped up monitoring of this? rosalind: they're looking for wild price swings and they want to dampen speculation on the stock market. the china securities regulatory commission has said there's a a german has been running it since february. they have published cases of trading. call abnormal

there are not keeping it secret. they want to put the word out there that they are watching. thereing to microblogs, have been 774 investigations open since the beginning of july, and 38 accounts have been halted. it is not just talk movements. they're looking at brokerage reports, that could move share prices. strategy does seem to be working. the 10% daily limit has dropped to third -- a third. the shanghai composite, you can see this is three months, the gains since july 26 has been less than 1%. it was a percent in the two months before that. the gains have been slowing down. angie: that is not good news when you're trying to recover $5 trillion stock route that was triggered last year by all of activity.depreciation

is that a good idea, if it is curtailing activity? maylind: curbing volatility be a good idea in the long run. some retail investors may not be too happy. 80% of the volume on china stock market comes from retail investors, people who want to be in and out for a quick gain. they want to make a quick profit and dropout again. there are reports there are more traders sitting by the side is days. industrial securities are saying squeeze them will into lower valuations and bigger companies. the direction of the money is also changing. but this could make it more attractive to global investors, who may feel more comfortable with what chinese markets are doing, if the prices are not so extreme. it's also a argument to boost regulations. angie: thank you for outlining that.

let's continue the story about china, bad loans continue the way on china's biggest banks as they grind out only meager profit gains. earnings jumped just half of 1% ahead of slightly bigger gains for constructions and bank of communications. bloomberg's china finance editor joins us.what has caused these lower figures? reporter: two things, one of the provisions the banks set aside for the bad loans in the future. the other one is the interest rate cuts we had in 2014 and 2015, they have compressed the margins so that banks are lit making -- making less money on the money they angie: are lending. more provisions for future bad loans, which everyone is worried about, and also interest rate cuts. what about the bank of china? are they going to be able to offset this in any way? reporter: we have artie had

report. the big banks -- already had three of the big banks report. there are turning up profits, anywhere in the 0-1% range. angie: is that going to change in the coming quarters and years? reporter: i think we can't yet see a turning point. the bad loan problem is still there. the big banks are getting more cautious in the lending. they are doing a lot of mortgage lending, which is actually low risk for them, but also low-margin.as they push more money in that direction it means they are less likely to make profits. angie: there are also being asked to bail out a lot of the overcapacity industries as well, to kind of absorb the bad loans. reporter: that is being worked out for the debt-to-equity swaps. that's another overhang. angie: how healthy is the banking system in china as a whole? reporter: i think the two issues, one is the bad loan

question of visibility.a lot of analysts say the bad loan problem is a lot bigger than the banks have acknowledged. the second issue is smaller gotten into shadow lending aggressive extensions, raising questions about the strength of the small banks. angie: this is a wait and see story that we continue to monitor with your help. thank you so much for that. checking in on some other stories we are following. president has ordered the military to maintain full readiness following the latest missile launch by the north, writing on her official website, she says young is unlikely to abandon the nuclear arms program. the south must be ready to take any steps necessary. rocketek, a sub launch traveled 500 commoners before coming down in the cia japan --

see of japan. indian mine minister says he wants to attract $15 billion in investment over five years, to double production and cut mineral imports. the government wants to move from small-scale explorations, .o a fast-track approach he says foreign companies would be welcome, but acknowledges the challenges of the land acquisition and environmental standards. copper is expected to keep falling. hedge funds have switched to a net short position, and goldman sachs says prices will be lower by supply storms. chinese demand for copper was at its lowest in 17 months in july. as of friday's close, copper was down. the deputy foreign minister of germany has warned those hoping that the u.k. can secure a good deal on leaving the eu to think again.

michael ross says the negotiations would be very difficult, and that britain would not be allowed to cherry pick the best the block has to offer. he says he hopes the u.k. would formally declare the intention to leave soon so that, talks can begin. gil he is are expected to pull the plug on many of the 200 plus companies that make up china's electric car industry. the government is imposing strict new standards on technology, and could cap the number of manufacturers. let's go to the asia auto editor, talking to rishaad salamat on way they are being tighter rules. >> china has identified electric cars as being a strategic priority, so they can come back acquisitions, and reduce reliance on oil imports. to encourage them, they have created new licenses for companies outside the oil industry, to encourage

innovation and provide competition for the incumbents. what we are hearing now is that the government is considering capping the number of new licenses to just 10. if you would consider that there are about 200 companies in various stages of developing, the majority of them, just by the math, they would fail. rishaad: a lot of money being poured into new energy vehicles. are things becoming a bit overvalued when it comes to all this? we interviewed analysts who , it was just recently reported that one company raised $1 billion from investors, and a lot of the tech giants in china have backed various startups. the backdrop to this is that china has put in a lot of

resources, subsidies, i'll to encourage development -- all to encourage development. subsidies from the government can make up to 60% of the sticker price of an electric vehicle. there is a lot at stake here. there's a lot of money to be made for those that are successful. angie: coming up, the case for a rate hike may be strengthening, but what other ways can countries jumpstart their economies?we talk about that and more with morgan stanley's jonathan garner. this is bloomberg. ♪

angie: quick check of the latest business headlines. billion plant.5 in canada tax by petronas has been given a boost. the local aboriginal community had opposed the do -- development but has now signaled a change of heart if the location is moved. the developers is nothing has been changed.

they plan to meet with local leaders in the coming days. japan's plans to enter the gulf energy sector. khan says president says terms are being negotiated. any deal is not expected before the gulf quarter. says the gulf and india will be the fastest-growing, and hopes to expand 10% annually in those markets. he seesysler's ceo says samsung as a potential partner in growing interest in the auto parts unit. sergio marchionne declined to comment on whether or not they are actually in talks. earlier, sources told bloomberg samsung has changed -- set to buy some or all of the operation, with an interest in lighting and entertainment systems. >> we have a very good relationship with samsung both

as a supplier, and strategic partner.what i did say when i was in sterling yesterday is that the opportunity is an opportunity that has been looked at by a variety of other people. we have no interest in just selling. we had strategic value. angie: welcome back. joining me right now is rishaad, yvonne, sherry, and jonathan garner, chief emerging-market editor at morgan stanley. we will talking about emerging bangs and what they will have an impact on monetary policy, when it is fiscal policy that is important. >> it is important to help stimulate growth. have a viewr less that we are suffering a secular stagnation problem in advanced economies, so we need fiscal monetary and -- to come to the table. angie: we have the gdp that just cannot for the u.s., vary weak.

we are expecting a jobs report for a data-driven set from the u.s. it will still probably be subject hundred. >> the u.s. is actually achieving a lower rate of unemployment, but it is that level of income growth that feel like not a good recovery. >> as a stock investor, does that matter? loose monetary policy, more money in the market. >> global corporate profits have been falling for 18 months now. if you look at the median stock, the 35 clearly dollar global equity index, it is only growing around 2%. this is actually an adverse outcome at this stage. low risk is turning into riskier, acting like -- bonds acting like of goodies. how do we square the circle of weak earnings growth but

markets are up? it is almost like spansion. -- it is multiple expansion. rishaad: what are the long-term implication of the bond buying program and different types of monetary stimuli out there?is there a price to pay , five years down the line, and see kind of pain can we inflicted on people? >> in terms of signaling from central banks, we may have reached a stage where it is somewhat adverse in terms of signaling to the corporate banks remain on alert about the bad economy. we do think, for bank credit flattening ofthe yield curves and the shift in negative rates in europe and japan is not good for the basic functions of the banking systems. rishaad: are they in a whole they cannot get out of? do they have to keep on buying bonds and finding it very

difficult to get out of it? >> that is true of the boj and now the bank of england and ecb, but at the margin, the fed is starting to unwind policy another direction. that is the difference between the major central banks. jensen -- junction, we decide whether we will go into the negative or positive going forward, whether this will end well or badly. but at least when you are talking about earnings for emerging markets, don't analysts mostly have a consensus that they are improving? >> certainly in the second quarter, we had an upside beat, best earnings we have seen in the second quarter for some time. we will probably get flat on last year, and next year maybe a modest positive. there will be parts of the world where the earnings cycle picks up slowly. for europe and japan, we still see meaningful downside risk. we expect japanese earnings to be down more than 15% this year. shery: what about valuations?

>> that comes back to what we were talking about earlier. if you look at the s&p, it is probably on around 17.5 times our earnings numbers. europe and japan are only slightly cheaper, around 16.5 because of downward pressure earnings.em is about 14.5 forward. rishaad: hong kong is 12. you are still equal weight for hong kong, right? >> hong kong to singapore and australia, that is a call that we had. the top markets in asia are india, taiwan and korea. angie: are you worried about some sort of reaction, if not this year or next, perhaps a global reception -- recession triggered by events on for seen right now if you look at probability of the global perfect? >> -- recession, it is around 40% it is quite high. .

we released that u.s. recently as mid-july. i think we are one chocolate from a global recession. this is a mature business cycle. it was interesting janet yellen would put those rate, so that she could actually cut them if things go wrong. >> hopefully not too soon. that would be a mistake. look at the ecb in the summer 2008.they did a rate hike and had to reverse it quickly. that was policy error. unfortunately, central banks are not omniscient. angie: are there markets here where even with a rate hike, we could use some resilience that could continue? >> if you look at a country like india, one of the key overweight, it lost a lot of its sensitivity to u.s. rates not at at is running deficit like 2013. it is undergoing basic economic growth in terms of industrial production. there is still ongoing urbanization and leveraging of in the household vector. india is likely to be will to grow almost a percent in a world

-- 8% in a world struggling to grow at all. i think policy is important. some people were worried it would shift to a populist type approach but we are not seeing that. but wasn't the populism to blame for pushing them out? >> we can't say why one individual chose to leave, but we can say that continuity is important in the rpi. india was front and center for worrying about the original temper tantrum in summer 2013. we think india and indonesia are not to worry about this time. shery: you think with the consensus now, it seems monetary policy has reached his limit? when you look at the world in general, are you seeing some consensus that now there needs to be political will for change,

and that could somehow translate more fiscal policies? >> fiscal policy easing would be helpful. if you look at where i come from u.k., we seem to be at a turning point in relation to fiscal policy. japan obviously has delayed the consumption take -- tax hike, on counter austerity budgets. but in terms of the longer story, it is around demography and productivity. that is what the world really needs more of. moore working people and productivity to start to grow again. work hard, play hard. thank you for that. jonathan gardner from morgan stanley. coming up, hitting a bad note. spotify and hot -- apple, who is getting caught in the crossfire. this is bloomberg. ♪

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

i'm angie lau. an escalating battle between apple and spotify, leaving musicians cotton in the crossfire. sources tell us that spotify has been retaliating against musicians who introduce new material exclusively on apple music. the fight begin. let's get to haslinda amin for more on that. what is happening, and what is spotify doing? haslinda: call it a bitter battle in the streaming space. talk about alliteration. when fingers and bands give apple music exclusive rights to release a song, they get targeted by spotify. according to people familiar with the matter, their songs get buried in spotify searches, and even when the songs are made available to spotify, the tags don't get featured on the playlist. according to them, this has been going on for about a year, but

it escalated in recent months. apple and spotify have been added since before -- at it since before apple made the debut, especially after apple proposed changing songwriter royalties that would increase costs for rivals like spotify. the streaming war is happening at a time when spotify is trying to renegotiate licensing contracts with the world's biggest record labels. it is important, it needs better long-term agreements in the lead up to the ipo. that is one way to secure better valuations. angie: and there is a new kid on the block. not the band, but amazon may be introducing subscription music streaming as well. haslinda: not journey for sure. amazon is adding to this whole competition. it will join in the battle with apple and spotify in the streaming space. ise reports suggest amazon close to signing an agreement with the biggest record labels,

and services may be launched us in a september. streaming is big business.it is the largest music -- sort of music revenue come over taking digital downloads. revenue is up 30% over last, billion..5 it will not be surprising to see more players trying to get a piece of the pie. angie: ok. thank you so much for that. music to our ears, haslinda amin. bloomberg markets, middle east is coming up at the top of that were. use this is standing by in dubai. highlight what we will be talking about today. reporter: there is so much coming up on the show, i don't know where to start. a good point to do that would be that we are going to continue the conversation about the implications of the commentary coming from the federal reserve, and how all of this is unfolding in markets around the world. we will be talking to the oman investment fund. we kick you closer to the story and saudi arabia, and see how

other investors are making money. stay tuned. that is it for this edition of "asia edge." "bloomberg markets: middle east"

>> the dollar hits a high and ginning yellen indicates a rate hike is on the way. >> jumping in tokyo. and theyides again agree to a freeze production. and its an empty office is the day you do not want to be late. it is when the