♪ it is thursday, september the eighth. this is "trending business".s". i am rishaad salamat. ♪ live in sydney and san francisco this hour. the japanese economy grew more than thought in the last quarter. tokyo, supering in mario heading to the iphone. lucky number seven for apple?

let us know which you think about today's top stories by following me on twitter at @rishaadtv, use #trendingbusiness as well. another 30 minutes to go before the chinese session kicks off. david: here is david. a lot of data coming through. we had the gdp numbers out of reaction onjerk dollar-yen. japann lows of the moment under a little pressure, asia mixed. the has erased --kospi has

erased most of its gains. we are watching for the apple effect. three,re apple's big these guys need apple as much as apple needs these three. has 850,000 employees, roughly speaking. these are the guys that make the iphone. the taiwan dollar has been driven up. when you talk about the companies that need apple the most.

herea look at this graphic . as you make your way down the list, you have the likes of , andron, japan displays others that get a lot of software revenue from apple. debate iphone, a big whether it is something new and will help the trend in china, but a lot of companies depend on what happens there. thank you for that. rishaad: some rare good news for prime minister businesses have been upping their spending. >> it seems japanese is this is

complied somewhat in the second quarter. economic growth rose 7.1% in the three months to june. that was an upward revision of .201% and did come in above expectations. quarter on quarter gdp was up .2 compared with the preliminary figure of 0%, so flat growth. the revisions reflect new figures on capital spending and construction. private and public spending and stronger than first thought. business spending fell by .1% in the second quarter, above estimates and less than the preliminary read of .4%. this upward revision comes ahead of this month's boj meeting and seek ease pressure as they

to revive the economy and stir inflation. >> you look at the japanese economy. this is an economy and a holding pattern. some good developments, bad development's, but not a lot of gusto there. at -- senior economist securities told bloomberg that the doj may not rush to add stimulus this month. they cold hold off until the meeting at the end of october. japan mayreports that modify its stimulus program because despite this uptick in gdp in the second quarter, any and the market believe that what ever they are doing to revive this faltering enomy is not really working. tim cook says that the iphone seven is the best ever, but will it be enough to help

flagging sales. cory johnson sent us this from san francisco. another iphone announcement from apple. apple faithful were gathered, n boys, analysts, journalists. this is principally a pr event. the new upgrades to the apple line, what tim cook had to say. >> and here it is. [applause] is the best iphonwe have ever created. this is iphone seven. you would not expect them to come out with the second test it ever. -- test ever. it was not just about the iphone

seven, iphone set the stage for , theple of new products significant upgrade to the watch, waterproof capabilities, a partnership with nike and furthermore. there is talk of new technology around headphones. to be used in a new series of beats headphones as well. this is a fruition of the partnership between apple and the company that acquired beats. >> there is so much technology packed into each one, the chip, dual accelerometers, microphones, antennas, batteries , a technical tour de force in this new air pod. upgrade, something in

the way that the new earbuds were a part of apple's marketing. maybe they will have the same kind of effect on apple sales. they can only hope. right.: let's have a look at some other stories. withe starting things off super mario. on the newsn tokyo that super mario is heading for the iphone. apple made the announcement at its annual release event. 18% atjumped as much as the open. a basic version of super mario , free to download, but users will have to pay to play the entire game. nintendo says mario will be available on android phones.

revealed that pokémon go will be released for the apple watch. china continues its defense of the currency, the foreign exchange reserves slipped to the lowest level since 2011. the reserves fell by $15.9 billion to 3.9 trillion dollars, down slightly, but still in line with most of the readings this year, which show growing stability. is still very active in the forex market. the stockpile has slipped from $4 trillion in june 2014. outflow pressures have increased as fed official signaled they may raise the main interest rate as early as this month. the suppliers to major global brands are rethinking of how to get their products to their

customers. the plunge and shipping has left $14 billion of goods a drift leading to the year and holiday season. 85 container ships have been although enter port, temporary bankruptcy protection in america make ease the situation. there are claims 11,000 jobs could be at risk. seoul, korea will hold hearings today over the restructuring of shipbuilders and shipping companies. popular auto racing circuit, formula one, getting a new owner. to by thedia agreed company that controls formula one from a private equity firm. the deal is worth $4.4 billion in cash. liberty acquires an 18.7% stake in formula one's parent and taking full ownership later. popular secures a

programming at a time when tv faces increasing competition from digital alternatives. broadcasters and advertisers like formula one and the english premier league soccer because they draw large live viewing audiences and have a global growing following. later, whyming up the problems facing the developed world from aging population to growing inequality are the biggest drags on the economy. what can be done about this? we will find out from one of the world's most influential management thinkers. when people buy an apple car if they try to release one? we will find out. this is bloomberg. ♪

rishaad: right. more on the new iphone.

it is charged with lifting flagging sales. is he iphone seven good enough for the job? let's bring in bob o'donnell. thank you for joining us. tim cook says it is the best iphone they have ever made. no doubt he will be saying that next september as well. >> some people are saying they will hold off until next year because next year is the 10th anniversary of the iphone. evolution, and perhaps they are expecting revolution next year, but for now some nice modest upgrades in terms of the camera. unfortunately the loss of the headphone jack. you get the best stuff only if you get the seven plus. for thee improvements seven, but the dual lens, the ,elephoto, the portrait effect soft background, it only comes with seven plus. rishaad: you have these air pods as well, so they are trying to

get the most out of their customer base. the idea is that apple's claim is we want to move to wireless. a lot more people would rather have seen wireless charging, but there we are. next year, they will probably have wireless charging to complete the picture. the wireless headphones are interesting, but they are very small, so it is likely they will fall out of there in years, so people will lose them. at $160 of payer, that is not a cheap proposition. theyare bluetooth days, so will potentially work with other devices. you get the extra features because of all the functions only with an apple product. , this isthe thing is the most flagged iphone in recent memory. >> it is. the problem you have is innovation in the smartphone

market, and this is not unique to apple. this is true for other vendors as well. we are seeing diminishing returns in terms of which you can do from an innovation factor. get foldable or bendable screens, that is interesting. that is the problem. have that along with the fact that people are now keeping their phones longer, and unfortunately those expectations were set and living up to those more diminished expectations. wehaad: bendable phones, if get that next year, is that going to be the revolution? devolution this year, and revolution next year? >> it is certainly a possibility. people can make those greens now in extremely small qualities this quantities. the challenge is to build them in the hundreds of millions that you would need for something like an iphone. that is the big challenge that remains. one other interesting thing i

was going to mention is apple made quite a bit of advancements for the japanese market. how importantt china is, but from a nation perspective, i thought it was interesting that there was so much focus on japan. nintendoudes all the news, some of the biggest surprises of the event. on, is theremoving anything at this event they came as a surprise to you? was a nintendo stuff little bit of a surprise, but otherwise, no. everything was pretty much expected. that is the challenge. the question is how does apple take its brand and move forward, and that's what we will be looking for for new iphones and other products. rishaad: if you look at this industry, why there is so much competition, so many, 300 smartphone makers in china, the industry is in danger of going the way of pre-smartphone phones

in terms of it being highly commoditized. >> exactly. arguably the same thing happened to the pc market and starting to happen with the tablet market. the factors that drove the challenges in those markets are now being seen and smart phones. i would not be surprised to find the fourth quarter of last year was the peak worldwide smartphone shipments. that is entirely possible. tim cook has always been under pressure since he took the reins over from the late steve jobs. withs needed to come out perhaps, or has been pressed perhaps, to come up with something revolutionary that would change the game for apple. what about the apple car? you have done some research into it. >> i did a study asking consumers are about their normal purchase habits and through in one hypothetical question. weres, if apple or google

to do a branded car, would you be interested? surprisingly, more than 50% of the americans, 1000 american consumers who own cars, 50% said they would be willing to consider it. would absolutely purchase an apple car, versus 11% for google. to me, that was shocking to see that big of a jump in consumer minds to go from smartphone two cars, but it is clearly a signal to the automotive market that they have to be on the lookout. this action is rhetorical, suppose it is rubbish? >> no one knows what they will buy until they see the product. the question is how open and willing are people to even consider something like that. tore has been a lot of talk say no one will considered, so the fact that people are willing to consider it is surprising, and that was the point of this research.

me, that was a small keys of a much bigger survey, but an interesting one. rishaad: severe sales declines for apple in china. it turn thingss around there? what does it need to do to get in the world's biggest iphone market. >> there are people who were like the camera advances, the waterproofing is important as well, however, fundamentally, i don't think this dramatically changes the game. people leaning towards an iphone will probably get an iphone, but will this drive massive upgrades? i'm not sure it will. reason is that it will be three years from the introduction of the iphone 6, the first big-screen iphone and the first that hit in china, and so that's why next year is looking increasingly important for apple in china and around the world.

rishaad: great talking to you. right. let's have a look at the business flash headlines. sony has released a supercharged version of playstation 4 designed to run virtual reality games and run for k video. k video. sony also announcing a slimmer version of the ps four. it does mark a shift in strategy. the hope is gamers will buy a new console. looking to pick up stake in vietnam, heineken and abn to have among companies to express interest in saigon beer. the government is the vesting its 90% stake in the brewer. it is vita at $1.8 billion. saigon beer will be listed on the stock exchange ahead of that auction.

sources their revamped board of viacom will meet to discuss the possibility of the sale of its stake in paramount pictures, shares jumping 4.7%. the former chief executive submitted the plan. there is no concrete deal on the table at the moment. viacom, $12 billion in debt and profit dropping for the last two years. reserves atna's fx their lowest level since 2011. details, coming up. this is bloomberg. ♪

rishaad: you are back with "trending business". china's currency reserves fall to the lowest since 2011. we are having a look, it is still a colossal amount of money. >> it is.

it's probably not that much when you compare it to imports and exports. it fell again, two months now. saying the foreign currency reserves fell $15.9 billion. that match the median estimate of economists. look at the reserves. is the monthly foreign-exchange reserve, but it has 10 stabilizing, even after the yen weakened. -- yuan weekend. off-shore down 0.9%. rishaad: it has stabilized.

>> it has come yes. it is still down, but stabilize. outflow pressures increasing again. rishaad: quickly, volatility down when it comes to stocks. it is evidence of the tightening of the regulator, i suppose. >> exactly. that's what they wanted to do. volatility down to a two-year low. state backed funds selling bankshares in august, helping to control the volatility. rishaad: thank you.

right. australia's trade deficit is forecast to have narrowed last month. we will have those numbers in a couple of minutes. it is the market opened in hong kong. ♪

♪ the new iphone is the best ever according to tim cook, but geeks and investors seem less than press. less impressed. it does not include the functions that many were hoping for. apple hopes it will revive sales, especially in china. 7/10 ofeconomy grew by 1% in the second quarter, more than the government's initial

reading, which was 2/10 of 1%. boj somethinghe to think about ahead of its meeting later this month. their reviewease of boj policy and decide whether to expand easing. the latest u.s. company to buy a global sporting property, $4.4 billion to buy the company that controls formula one. liberty media will buy the rest early next year. straight to some breaking news, trade data out of australia. this is for july. here is paul allen. it is better than expected, 2.4 billion trade deficit for july. that is better than the market was expected, narrowing to two point 7 billion was forecast, and a big improvement on the

june figure of a $3.2 billion deficit. most of the action came in exports, up 3%, and reverses a trend in the second quarter gdp numbers when not exports provided a .2% track on gdp. it looks like things could the shaping up in the third quarter if these numbers continue. little change in the aussie dollar, up slightly on the release of these figures. expected better than july trade deficit come off $2.4 billion. rishaad: there we go. that is what we have. right. a quick look at the open and what is going on in hong kong and shanghai. there we go. the market was down. this is what we have at the moment. shanghai down, but flat. more times to digest the news making headlines in the last few hours.

the nikkei falling back, declines in korea as well. the korean won seeing weakness. oil on the way up for a fourth day, speculation about the u.s. collect easing, but asia-pacific stocks retreating from 13 month highs. sydney as well, let's have a look at that one, a 1% fall taking place there. it is the msci asia-pacific index this week. the aussie market their are dropping the most in five weeks. are the other ones. straight times index a notable one. that's what we have currently. we are awaiting the latest trade numbers out of china. asian economics expert is with us now. what are we looking for here? >> the u.s. economy is hitting

recently, eurozone not growing fast, so are not expecting a turnaround in china's trade story. in yuan terms, more a very cushion there. side, thenese import imports number is weak. we have to remember that it could indicate a weakened consumer or point towards the correction in commodity prices. beyond china's borders, we are seeing manufacturing exports from taiwan, korea, so it might be a soft number, but it won't change the narrative very much in china one way or the other. been growinga has its exports, haven't they? what is that all about? fascinating. global trade is falling. china's exports are falling.

when you look at the numbers, they show china has grown to a record share of the global trade , bigger than any other country. againstquite sensitive the anti-globalization backdrop. risessues we are seeing a in the u.s. presidential election, a lot of finger-pointing. china itself is battling rising wages, competition from other countries like cambodia and vietnam. they are clearly growing market share. rishaad: tell me about the fx reserves. >> it is a good reminder of how fragile sentiment remains on china. the capital outflow story has stabilized. communication has improved. the clampdown on capital controls the government has been

enforcing, money is still leaking across the border. if this amount of money is leaking across the border, what would happen if the yuan started etc. in losses? we would see more pressure to get money out of china. rishaad: right, some other stories we are following for you. what has been said in the fed's latest beige book, increasing anxiety about the november election. uncertainty is cited as a source of concern in the beige book. that is up from two mentions in the july survey. there are none in june. malaysia central-bank leaving rates unchanged after a surprise cut in july, cap that 3%, a decision predicted by

almost all economists we surveyed. policy makers are waiting to see if the government adopt stimulus measures when it announces its budget next month. hong kong's most experienced businessman says the property market is difficult. we are talking about galaxy entertainment. he has watch the industry for more than half a century, but his property arm has been outbid on 16 land tenders this year. the property market is not only hong kong and mainland china, they have all been affected. it is hard to tell the trend. we need to wait for several more months. hereve tried hard to bid and hong kong, but have failed. it has been a headache. mark carney defending the actions of the boe sense brexit.

-- and since brexit. he has been criticized before and after. he said the decision worsen the outlook for the economy. he said he is "absolutely serene about the bank strategy." he suggested that you came a avoid a recession. >> part of it is that there is a bounce back because the bank took timely comprehensive and concrete action. the action has had an impact. it has had an impact on financial conditions. they have improved considerably since we acted. right.: let's get you back to the action. we do have asia-pacific equities under pressure. what has got the bears out? of gains.ee days when you look at the major benchmarks right now, we hit a one year on wednesday after coming off not exactly the best

news from wall street, basically a flat finish there. right now across the major benchmarks, down a third of 1%. out,st have the data come trade balance their, and we are looking at a narrower than expected deficit. up,ral markets just opened the chinese markets, there we go, flat. the shanghai composite, similar losses across the hang seng index for a second straight day. decent it. philippines, 7574, credits weeks saying that credit suisse saying the market seems pricey. have a look at what else we are watching. we are looking at currencies as well.

nintendo, that is an apple starting -- story. still seeing a good session off the highs. longfor properties one of the biggest decliners, down almost 8%. markets,ok at the fx not much in there. the yen spiked after the gdp report and gave back all of those gains. the won weakening after the biggest one-day pop on wednesday. one trader telling us that while we are seeing a little bit when it comes to the offshore spot they have turned to the offshore market for funding needs. let's have a look at southeast

asian currencies. , peso, look at the weakening in the paseso there. the taiwan dollar weakening after hitting a one-month high on wednesday. we are seeing the opposite of the price action on wednesday. rishaad: thank you a lot for that. agreed that ant and openness is essential to the recovery of the economy. they need action now. >> what they got right is the diagnosis of the global economy, and what they got right is what needs to happen to improve prospects and make growth more inclusive. this was a big step. most detailed the communiqués i have seen out of the g-20. that is the good news.

news, going from design to implementation is very hard. if you look at what awaits these leaders when they get home, the domestic political and berman is so complicated that it is unlikely we will get implementation. >> the devil is in the details. talk about the prescription. i was just in japan -- china as you know. i was talking to a senior government official who said we need to get to globalization 2.0. what does that look like? >> it looks carefully at the benefits of growth. are they inclusive enough? answer is they have not been. why is that the case? how can you make it more inclusive? >> it also looks at governance issues critical to sustain growth. recognizes that it has to deal with what has not been done in the last few years. it has to take on the backlash we are seeing against globalization. >> what could we do to make it

more inclusive? issue in the u.s. presidential election right now. what could be done to make the benefits of trade and investment across borders more inclusive? when you look at the u.s., both hillary clinton and donald trump have picked up on the issue of inequality, have picked up on the collateral damage of free trade, even though the benefits far exceed the collateral damage. it is an issue for both parties. to beeeds to be done is more comprehensive in terms of policy actions. frozen the most important redistributive policy measure, which is physical. we have completely frozen that. in addition, we have not done enough to promote growth. everyone recognizes a massive infrastructure deficit, and yet no one is taking steps, even though interest rates are ultra low. there is a lot that can be done. we just have to continue to

press that in order to get action. >> the things use adjust sound unilateral, not multilateral. does it require the individual actions of the players? >> first, you need multilateral. this take fiscal, if one country moves and others don't, the net country may end up with the worst of the outcomes. there is a reason why other countries are not politically constrained, because they understand that if they move another stoke -- don't, they may be worse off in the currency markets. there is a need to move together. april 2009, the meeting was critical in avoiding a global depression. i think that we are at a stage where we need better global coordination. we need a crisis to focus minds. up, a warningg for china. our next guest says that without

reforms that there is a risk of a sharper slowdown. ♪

rishaad: this is "trending business". u.s. businesses are increasingly anxious about the november elections. there willest says be extra pressure on china regardless of who moves into the white house. he is with me now. let's start off with the chinese angle. there will be pressure not just on free trade, but fair trade. >> that is true. u.s., europe, the and other countries, so this is a long-term issue about not just free trade, but fair trade. be pressure. will my own sense is that when you get into this kind of pressure,

the country which runs a huge trade surplus is in a tougher spot. that there is a trade war, but certainly the pressure on china is very likely irrespective of who wins. i think china will have to in some sense give. rishaad: china would lose a trade war. there is no upside for them to engage in one. fair trade is best for everybody. we are getting trade numbers later on. ust is it likely to tell about the state of china and the global economy as well? go 7-8 years back and look at the trade surplus that china used to run globally versus the picture now, it has changed quite dramatically. right now, china's net trade exports versus

imports, it is not really a concern. in terms of the major import markets for chinese goods, u.s., europe, etc., so as those economies grow at a slower pace, the demand for chinese exports comes down. also, wage increases in china is shifting to some places like mexico and so on, so in terms of trade, it is not as big of an issue today as it used to be. rishaad: as it tries to become more domestically focused. they must ask on some reforms they have been promising, but it has been piecemeal here. they need to get on with it a bit before the risks of not doing something become higher. >> yes. from a top-level point of view, to, forgetchina were about increasing its investment,

but if china were to maintain fixed asset investment over the next 5-10 years at the same then the2015, even total amount of excessive investment in china will increase in the next five years compared to the last five years. that theeans is sustainable growth rate in the short to medium term for china is more like 5%, not 6.5%. if the leadership wants to 6.5%,in the growth at that creates the risks of artificial stimulus, and that increases the risk of a sharper slowdown in the years to come. , thend: we look at that the position next turn away. -- we can't seem to

get on our feet when it comes to growth. why? slowdown, i the would say the biggest factor behind that is the much sharper slowdown in the advanced economies as compared to the emerging economies. in the developed economies, i put three big factors at the top. number one is demographics. ,he population is not growing rather it is declining. that itself creates several problems in terms of economic growth. population effect, old age versus younger people, and so on, so that is one factor. the second factor in the rich economies is the effect of inequality. inequality is high everywhere, growing, but the high level of

inequality means there is more savings and less demand. that leads to a glut of money and lower interest rates, but at the same time, not enough reasons for companies to invest. the third is technology. uber, airbnb, the shared economy, and that deficiency in the useh of assets. for example -- moot point.s is a how does that play into growth? >> in terms of what the rich economies need to do, what they biggerrently doing is thy neighbor policy, monetary easing, reduction of interest rates, going down to negative interest rates.

instead of that, what they need to do is fiscal expansion, building infrastructure. rishaad: the election in the u.s.? people getting more worried about it. >> yes. the elections, we have to see how it plays out, but both clinton and trump, at least the rhetoric has been against the tpp. the rhetoric has been in terms , insisting on fair trade, not just free trade. i think the arguments against tpp are worrisome. i hope tpp passes after the election, but before the new president takes over. rishaad: thank you very much for that. it was a pleasure. up next, when the world's strugglesnk company with technology. apples twitter troubles ahead. ♪

rishaad: right. we are looking at apple's attempts to be more open with its first official tweet. it just backfired. what happened? apple is well known for being super secretive. what happened was so funny because on their if fish or twitter account which has this ,lue mark, they just announced newased these videos on the features of the iphone before they were launched by 45 minutes. that has been deleted, but not before media took hold of them before people took screenshots of what happened. they delete to those posts 10 minutes later. rishaad: somebody at apple posted them. i'm sure that was a career-limiting thing to do.

not be laughing because probably this was just an oversight, but the fact is -- for 10 minutes, a big oversight nonetheless. it revealed a lot of the features of the iphone, including how waterproof it is. that being shared 1500 times. there is a lot of talk in reaction about the new iphone, including the fact that they don't have the headphone jack anymore. take a look at this suite from one person saying the cord attached to them is how they found them. this person saying that they of our these cords headphones as cap call repellent. you have broken our hearts. i recommend getting one you useddevices that to whistle to find your keys and

they would respond. that is the height of tech as far as i'm concerned. , we will getumbers the word from j.p. morgan. ♪

announcer: from our studios in new york city, this is "charlie rose." charlie: we begin this evening with politics. the presidential campaign enters its final stretch with just 62 days until the election. a new cnn poll has trump leading clinton among likely voters or 43%.ters, 45% to that is a national poll. clinton holds a comfortable lead in swing staples such as pennsylvania and florida. they will face off on september 26 in three weeks. joining me now, the stars of