♪ rishaad: it is monday, the 12th of september. this is "trending business". i am rishaad salamat. ♪ rishaad: right. taking you to tokyo and beijing this hour. smashinghine orders expectations. blockagen shipping eases as a u.s. court allows vessels to enter port.

suggested a merger however yahoo! says the terms were not sufficiently compelling. let us know what you think. follow me on twitter at @rishaadtvand use #trendingbusinessas well. a number of markets closed. singapore and malaysia out of action. elsewhere pretty negative. we are getting a complete headwind out of new york this morning. >> not the best headwind you want. those losses we saw coming through from wall street on friday. also, volatility back, the vix back above 15. i won the only market coming online now. -- taiwan-- hi juan the only market coming online now.

seeing anl very much impact, down 1.4%, the won weaker against the dollar. we will get to samsung in a moment. the nikkei off by over 1%. strengthen,ting to up .2% at the moment against the dollar. there were positive signs coming through from the factory floor in terms of machine orders, still very much deflationary pressures. to 2%. 200 off by close friday and base metals, iron or, gold, oil, not helping things there. new zealand extending losses, down by 2.3 percent, only one stock in the black in new zealand. samsung, $20 billion wiped from its market cap since the close on thursday. noteer note from the

seven, samsung advising anyone who has won in their possession to be very careful and make sure they turn it off because there is a concern about fires things started by the battery. by 5.5%, adding to that 5% owned friday, the biggest two-day drop from this company in five years. quickly looking at the japanese bond markets. there had been a call on the saying you could see yields recover. them intill seeing negative territory, the 10 year off and the five-year in negative territory. watch this space. there could be a bit of a recovery there. rishaad: leading indicators of capital spending both b and both beatthis is -- and missed estimates.

break down these numbers for us. the boj may be reluctant to surprise markets, but the data today out of japan a bit surprising. machine orders beating estimates, jumping 4.9% in july instead of falling 2.9% as expected. worth noting that this is a highly volatile set of data. it jumped 15% in january, then plunged 11% in april, so it has been quite erratic. wholesale prices have been consistently in the red since april of last year. for august, they fell more than expected by 3.6%. and japan isow that companies are holding tight on spending. ande see a stronger yen sluggish demand, the currency strengthening 14% in the past year.

we will see if the central bank can fight this with the new communications strategy. is saying that the og changing its tactic to one focused on dialogue with the market. costxample, last week, the policy were of boj highlighted, also providing analysis on the negative rates and cautioned about that danger of low yields on long maturity bonds and damaging confidence. we are now starting to see markets react to those warnings with a steeper yield curve. the white line is the curve where it stands now as opposed to a month ago in red. 20 year government bond yields back above 0.4%, look at that. that after indications that the saying improved

rates in that part of the yield curve. rishaad: a health scare surrounding hillary clinton. we are having a look at that as well as other stories. questions about hillary clinton's health are back in the news after she was forced to leave and 9/11 commemoration ceremony early. a video showed her appearing to stumble as she was helped into a black van. her doctor later released a statement saying that clinton was recovering nicely after being diagnosed with pneumonia on friday. she had become overheated and dehydrated. daughter'st to her apartment and emerged to say she was feeling great. greece will continue to unload its cargo after a u.s. court granted the shipping company bankruptcy protection. payparent company agreed to

$54 million for goods to be unloaded. it left $14 billion worth of goods stranded at sea. ministry iss trade offering $360 million in cheap loans to hanjin shipping vendors and fortis experiencing difficulty. forwarders expensing difficulty. tensions rising in korea as the north is ready to test another bomb. it will take place at number three tunnel in the far northeast of the country. out its fifthied nuclear explosion on friday, triggering a 5.3 earthquake and later claimed it had succeeded in making atomic weapon small enough to fit in a rocket warhead. thereigence officials say is a high chance of a new test taking place. severalh has testfired ballistic missiles in recent days, most traveling 500 kilometers before falling into

the sea of japan, putting the whole of south korea within range. rishaad: other big fish caught in china's anticorruption net, the boss of tianjin is the latest to be snared and the corruption crackdown. this is very significant. >> absolutely. he is the highest ranking official to be investigated for corruption in more than a year. he's not only the mayor of tianjin, but the acting party secretary. he is also the former subordinate of president xi jinping. the central commission for discipline in a statement said being investigated for serious disciplinary violations, euphemism for taking bribes or corruption. has been acting party boss for 20 months in tianjin, and

was in charge when a large explosion ripped through the tianjin port. thevoided punishment at time, but it looks as though what ever of umbrella of protection he may have had is now gone. anyone who violates party discipline will be sternly dealt with no matter who it is, though match of the post. the situation adds intrigue to next month's central committee meeting, which is expected to lay the groundwork for the reshuffle next year. contraries across the country are jockeying for promotion. , if named permanent party secretary, was likely in line to drive -- join the 25-member politburo. he was known for breakneck investment growth, incurring new debt, building large city centers, including the mostly empty manhattan-like business district.

officials havein been caught and corruption probes, including the vice mayor last month, now the mayor ensnared. , tianjin is the key port for the capital beijing and is without a party secretary, a mayor, and without a public security chief. rishaad: thanks. right. coming up, markets are pricing in an easy victory for hillary clinton. out new questions over her health could affect that. ♪

rishaad: right. a look at the business flash headlines. iran's national oil company agreeing to a deal with sinopec to develop a refinery.

the contract is worth $1.2 billion. this is after years of sanctions. boost oiltempting to production to pre-sanction levels before joining a proposed cap on output. tesla updating its autopilot technology, doing so to focus on radar imagery than cameras. it is the third attempt to convince critics that its features are safe. it has designed the auto steering software to engage if -- dissing gage if drivers ignore warnings. is betting on copiers as it looks for new areas of revenue. it is planning to announce new machines for corporate customers. dominate thatn market, but hp is hoping the move will help it take more of

the $55 billion business by pushing into 3-d printing and switching to digital mobile devices. political temperatures are rising ahead of those november elections in the u.s. our next guest says the market is pricing in an easy victory for hillary clinton, which could mean continued gridlock in washington dc. he is with me now. we are pricing in this whole scenario, a senate and the house which could be more evenly divided. this is what is so astonishing. single mostibly the important election in 30 years as far as financial markets are concerned. the markets have been extremely calm about the upcoming election. do with the fact that

markets are confident that not only hillary clinton will win, but when with a landslide victory. this is the reason why despite marketevents that the only gives a 30% chance for trumpet to steal this thing. at the same time, the market -- rishaad: look at what happened with brexit and how the market was looking at that, they did not see it coming. the authors for brexit were longer than donald trump winning the presidency. >> that is what i was saying. think about this. the june when we had general election in a u.k., every pollster said david .ameron was going to lose a year later, the principled, the polls suggested they were going to lose, and they won. the reason people may be

embarrassed to admit to pollsters who they are going to vote for, when it comes down to walking in and voting, the results may be different. this is why the embarrassment bias is in trump's favor. rishaad: let's look at the , the hydration, pneumonia that hillary clinton has had. does that change anything? >> it might change things on the margin. the whole issue of health is going to deal her a small setback, but the bigger issue is whether what happens between now and the first presidential debate. one thing we do know is that the market is pricing in a landslide victory for hillary clinton. the one thing we know for sure in the last 20 years is that the race becomes even tighter. was behindtt romney

obama as much is five points before the first presidential debate. rishaad: that was a disaster for him. is nott now, the market paying enough attention to the fact that trump has been moving up aggressively in the polls, especially battleground states like ohio, pennsylvania, and florida. rishaad: in the absence of volatility, the markets have been very dull. on friday, it was back suddenly. do we have the unwinding of all those gains we saw when we did not have volatility? >> it is very possible. market is mostly complacent about the outcome of elections. in market has been pricing gridlock, which means the fed will bear the burden of the u.s. economy, therefore the market

expected rates to remain low, basic conditions for risk assets to remain supportive, but now it is no accident that the latest .olls show trump moving up all of a sudden, the risk parity trades are having problems. the last four years, we have had two instances of massive unwinding of the risk parity trades. at this point, i would argue that the risk to the risk parity trade is just as big. rishaad: as we go towards the fomc meeting, historical precedents suggests the fed does not move three months before a general election, is it steady as she goes? to remember as that so far it was notch as nonfarm payroll that was weak, but auto sales, i is him, week it wasthe board -- ism,

week across the board. had been poor, the stock markets wobbly, if they were to hike now, it might be seen as saying that these guys might be helping trump, which is what they don't want to do. more important is what the boj does or does not do later this month. there, the issue is very different. years, centrale banks have surprised to the upside. this year, a number have surprise to the downside, not to mention the boj itself to-three times, then later the ecb. fire is theing strongest indication that central bankers are starting to wonder whether monetary policy still has anything left in the tank. the fact that the ecb did not move in my opinion will

reinforce the camp within the in september,vity net way be a problem for the financial markets. rishaad: will this review bring up anything concrete in your view? .nflation target, get rid of it they will not change at any time soon, are they? >> exactly. the market is seeing through the emperor's new clothes. rishaad: is there anything new they can do anyway? time tohey did was by buy some political cover, so they have to go back to the government simply cannot do very much. yenaad: what happens to the and the dollar? >> this is why i said it has come down to the u.s. elections. right now the market is pricing in gridlock. if we end up with gridlock, the fed will be on hold for longer than people expect, and that's an environment in which the

dollar struggles and rates go to zero. if we get a republican clean , half a trump presidency of the stuff he's talking about on the fiscal side were to come through, one of the biggest fiscal expansions in the postwar. . the u.s. economy would probably take off in a big way. sweep,et a republican higher dollar and higher u.s. rates, then probably higher dollar-yen, which would take the boj off the hook. that is why the election is so crucial, gridlock versus clean sweep, no fiscal and a lot of fiscal, no growth and a lot of growth. rishaad: thank you very much indeed. up next, a month after the deal to sell yahoo!, new filings show the company rejected the

opportunity to merge with yahoo japan. details are on the way. ♪

rishaad: you are back with "trending business". yahoo japan made a play for yahoo! and rejected. our tech editor joins us from tokyo. why make an offer? >> as we all know, yahoo! ultimately went to verizon. it looks like this bid came in second place. there were five bidders ranging from $3 billion to $5 billion. the scenario was probably a situation that if the verizon bid had failed, yahoo japan

would have been in position to win have that initial deal fallen through. rishaad: would the deal have brought any benefits? that is hard to say. it would have involved some downside, the way it was structured would have involved a tax hit on the alibaba shares owned by yahoo! itself. in terms of strategic or technical benefits, there probably was not a lot. at this point, we are talking about random value more than operational or technological value in regards to some sort of transaction. that is probably why it yahoo! make better sense to go with verizon. what does this all mean for yahoo japan and its operations? will the business to verge even further?

>> in a sense there were to begin businesses with. yahoo japan is like the ebay of japan, the biggest auction operation, a solid web portal where people go for news, mail. it is also the brand for softbank's mobile and telecommunications businesses, so we're talking about two different beasts that happened to share a name back in the early dawn of the internet era, but in terms of whether an opportunity was lost to find or or a global yahoo!, i think that ship sailed long time ago. rishaad: thanks a lot for that. joining us there from tokyo. premarket, a loss of about 2%.

more bad news for samsung's latest smartphone, how the note seven is dialing up the wrong sorts of numbers. ♪

♪ rishaad: a look at her top stories, selloff in global stocks resuming. msci asia-pacific heading for the biggest three-day loss since june. financial markets jolted by concerns that central banks are questioning the benefits of lose monetary policy. , poised for the biggest two-day drop in five years, 20 billion dollars in market cap gone since thursday.

u.s. and south korean users were phones andrn off stop charging them due to risk of battery fire or explosion. announced a recall of 2.5 million phones, a cost of $1 billion. let's have a look at hillary clinton to chi is trying to dampen speculation about her health after abruptly leaving a ceremony for the 15th anniversary of 9/11. she stumbled as she was helped into her vehicle, and the photos made the rounds in social media. she says she felt overheated. her doctors said she has been diagnosed with pneumonia and was dehydrated. just openingket up, futures down premarket 2%, shanghai also coming on. malaysia and singapore closed. it's a day when you want the futures to be wrong, but they were hang on, the hang

seng off by 2.4% on the open. heading higher, so widespread selling. casinos, also insurance stocks coming under pressure in shanghai, off by 1.7% to kickstart the trading week. in the selling across the region on the back of what we saw on wall street on friday night. volatility also back in play. 15 for thevix above first time in 44 training sessions. korea sold off to the tune of 1.7%, mixed economic data outage japan affecting the nikkei. the yen stronger versus the greenback. their weakness and commodity players weighing into the weakness and asx 200. a lot of selling and volatility in the new zealand market today. have a look at some stocks we have been watching. a lot of them in the insurance

space good japan life insurance rising after the boj sent to be looking at the yield curve in terms of the impact of flattening that curve. also, that last stop there is a korean insurance stock. it has risen to an 11 week i as the bank of korea kept interest rates on hold last week. i look at the offshore renminbi, stronger at the moment. we have seen china set the yuan parody on monday. today, that is significantly weaker. some upside in the offshore renminbi. rishaad: the uk's go to leave the european union could produce winners in asia. agent economics expert

is with us now. china, japan,ke and hong kong have a digital opportunities. rishaad: potential the operative word? >> that's right. very early stages of this brexit process. delegationssending to asia. we heard theresa may talk about how britain is open for business. for are chasing australia trade deal. when you look at who might gain the most, it is china, japan, and hong kong. what are the direct linkages between britain and this part of the world? , direct trading, sale of goods and services between the two countries, again, china, japan, hong kong do well there. japan is a big foreign investor into the u.k., and that is why

japan is among those. rishaad: there were strong words from shinzo abe at the g-20. >> entirely right. the city ofbetween london and tokyo and hong kong, and increasingly shanghai. tourism of course. when you look at all those the threehose are countries that may benefit from brexit. rishaad: anybody likely to miss out? >> malaysia, indonesia, and the philippines have the week's trading links. they may also have opportunity to deepen those links. rishaad: thank you a lot for that. hasary clinton's health become a big election issue again after she left a 9/11 commemoration ceremony early. video doing the rounds of her needing help to get into her car.

that took these pictures has been catapulted into the public eye. rosalind: that's right. and simplyhe video 9/11led it hillary clinton n.y.c.. it shows her needing assistance to get to her van. that he movederg to the u.s. 24 years ago and had attended 9/11 memorials a year ago. he was taking pictures when he noticed hillary clinton leaving early. that she doctor said was improving nicely and had then diagnosed with pneumonia on friday and had become overheated and dehydrated at sunday's event. this is the video being played raising questions about hillary clinton's health. there has been lots of comments

on social media about it. one person saying stay away from the weight room for a while with no late-night walks. he has a slavic name, why is no one questioning if he is a putin spy. --ocrats have been republicans have then criticize for speculating on hillary clinton's health. donald trump's help details have not been released. this video is being played by all the big networks. it will not help hillary clinton and her campaign manage their message about her health issues. the tweeps you saw are some of the more polite ones. you saw are some of the more polite ones. >> there are.

there are different an extreme views of the video, who the man was who took the video and whether he was working for somebody. i hillarywas missed clinton's press pool has sparked a firestorm in the u.s.. at samsung,e a look really bad time of it and saw seoul, korea, down 6%. note seven users should immediately turn phones off because they may be a fire hazard. it costs about $20 billion of the company's market cap since thursday. i global recall announced a week ago, why is the stock just now reacting? that we dide things not see any major downgrade either brokerages. some peopletime, still believe that is a temporary product pickup and they might use it as a buying

opportunity, but now we see more coming out. we all know it is not a good involve any regulators. key market,such a accounting for 20% of sales. there we go. i was going to ask you how important the market was. samsung is a conglomerate and does not just do smartphones. it has a lot of different products it makes. >> correct. we have to bear in mind that the brand equity is very viable, especially on the consumer electronics front. that itple understand is a cyclical industry, but with the franchise and smartphones, , recurringreliable income stream. lose confidence,

the stock price may react more than earnings. rishaad: right. is it priced in in your view into the shares? that priceto realize to forward earnings is still nine times. 2014, whenback to apple launched the last smartphone, they gain market share from samsung, and samsung's stock price could go below eight times price to earnings. right now it is about nine times. rishaad: thank you very much. the trial centric innovations of samsung electronics with the note seven drawing the wrong type of attention. the world of motoring, hyundai saying it will start car sharing services in its home market. the operation will be launched

and will expand to a fleet of 100 vehicles across five cities by 2018. the service will kick off in with the with 15 cars aim a 300 cars by 2020. bmw planning a major restructuring of its executive board. the company will also combine the marketing and sales operations for the bmw and mini brands. they want to take the game to test it. the bmw supervise report is expected to approve new models at the end of the month. may lead to aars drop in insurance costs eventually. says premiums may fall by 40% as vehicles become safer and are more widely adopted. aon says the impact of , autotion on the business

insurance accounting for 50% of global premiums. , do companies with female directors perform better than their peers? we have some surprising results. who are they? we are taking a closer look next. ♪

rishaad: a look at the latest business flash headlines. malaysia airlines talking to regional rivals about offloading their jumbos. ceo says the double-decker's are no longer needed. the carrier negotiating with airbus jamaica plain make the planes more attractive to others. they would become the first a 380 customer to cease using the aircraft. asking witnesses to share

video and photos of the rocket explosion. they are trying to find out what went wrong. his musk making the plea on twitter account, calling the incident the most difficult and complex failure and the company's history. the rocket was engulfed in flames minutes before a prelaunch engine test. the cause has yet to be established. movie hasstwood topped the north american box office. tom hanks stars as the pilot who put his crippled aircraft on the water after losing power in both engines. the film taking $35.5 million. now, investments that aim to promote gender equality, environment of protection or social responsibility as well as others, have been searching.

there is no clear definition on what ethical investing is. what is ethical investing? it is a term which means different things to different people. >> absolutely. there is no right or wrong answer. rishaad: there has to be a wrong answer. >> the wrong answer would be to do things that are unethical, armaments, tobacco, things we all exclude. thatnk the fact is , younger, millennials investors, are of the view and understanding that doing the right thing by the community and the world does produce better outcomes. that includes gender diversity as you mentioned. rishaad: right now, for instance, an oil company. you could argue that some oil

companies are better than others. how do you define and decide which one? we would invest potentially in an oil company, but companies that do on short not offshore drilling. we think that is more sustainable. we understand that you need to have fossil fuel still. we understand you need to have steel, so a company like fortescue. we ought it sometime back and continue to hold it. it is one of the largest holdings in our australian equity portfolio. why is that ethical? the head has ensured that the whole of his supply chain, and in turn their supply chain, is labor, a no indentured campaigner against slavery, so what we are saying is that you can be and is based date may at first glance appear to be not ethical or not pro-environment,

but companies are able to affect change, and that's what we are trying to reward as well. your contention here is that if you don't have diversity of lord level, then the company does not do well and the share price reflects it. >> exactly. bloomberg has done a lot of work surrounding this in recent times. mckenzie has a big report out. the facts are pretty clear. gender diversity does promote that are financial outcomes, and what we are encouraging is that we would like companies to have a target or quota of 30% representation females on board as we into the next decade. in australia, the only fund manager i am aware of that is not invested in any company that does not have female board -- rishaad: are these the things you look at before you invest? if theydealbreaker

don't have a woman on board? we would invest as if the fundamentals were compelling and the company was prepared to engage in a discussion about change. rishaad: you would be an activist shareholder at that point? >> sometimes it is better to be inside the room having a discussion rather than outside throwing rocks. rishaad: if it disappears? wewe would say change or will divest. if you move in the right -- as we have said, what is driving all this other than social equality is the fact it does generate better outcomes. very few female ceos and australia. onlyality, it is one of 2.5 percent of companies in the asx 200 that do have female representation. i should say, female ceo. rishaad: you have that is core elements and principles, but

then how does that translate into how you invest in what should looking at now and how do look at the bank of japan and the fomc? >> we screen negatively and positively, but the company in our view will be dictated by just the same factors that any other fund manager would be looking at. right now we are cautious in our international equity portfolio, 15% cash. we do see risk off now. fomc is positioning potentially to hike interest rates of they can subsequently cut them, which to me is not a , soicularly good sign cautious environment and we are position defensively for those reasons. rishaad: 15% cash. how do you make a play? what are the industry groups you are looking at? >> consumer discretionary, pretty much anything. we are benchmark aware. in the international context, we

have flexibility. we want to have 10% or more of overtly ethical investments in our funds. rishaad: overtly ethical? >> we will screen out the negative ones, the ones that are unethical, but the ones that overtly ethical, promoting benefit to the community, we will include in the portfolio with a minimum allocation of 10%. impact have community loans in our cash portfolio. i think this is an area that is increasingly becoming more supported by investors, but also intellectually very interesting. rishaad: we were doing a piece on the fund management industry, what, australia has something like, i can't remember the about exactly, japan has twice as many funds as australia , but a population that is five times or six times larger. >> australia has the fourth

savings pool in the world. not directare the beneficiaries, if we have gender we will see more diversity in greater choice in the industry as well. it is interesting to see the ethical space we are part of his growing at a far faster rate than the rest of the fund management industry down under. rishaad: thank you very much indeed. right. close,. open comes to a more than one clear winner on court, but it is not just for his racket skills. ♪

rishaad: you are back with "trending business". a new champion it the u.s. open,

stan wawrinka, his third grand slam's title. he claims his first win in new york. he is the oldest u.s. open champion since 1970. at this year's u.s. open, traditional sponsors were left behind. all four semifinalists were ,earing japanese labels, yonex onqlo, asics were popular court. and good callsk that picking the winning athletes to sponsor. nike has traditionally been represented at virtually every grand slam final until now. federerg stars, roger and rough i am the dell have had

tough seasons battling tough injuries. yeardid not make it this at the u.s. open or any final, so that has been tough for them. the other thing is that these , and theyds, yonex have had a good year backing stan wawrinka, and asics is , a surprise monfils making it to semifinals, but a very strong year. rishaad: is the trend likely to can you -- to continue? japanese brands entering the spotlight in tennis right now. >> it is good for uniqlo. they got a lot out of their sponsorship program. two years ago, it was an all-uniqlo final. finalsain, in the semi throughout the year, and expanding program, huge in wheelchair tennis, backing the number one player there.

they back to the entire wheelchair tour. we can expect them to get a big benefit. yonex is backing a lot of stars. yonex is massive and the women's game. they have the number one who just won the u.s. open. , they don't back the higher ranked players, but they could get some up and comers. american stars rising, 4-5 branch, betting on a couple of brazilian players that look strong as well, it's so you can expect to see their name in the game as well going forward. rishaad: thank you very much indeed for that. joining us from tokyo, the atcess of uniqlo and yonex the u.s. open and how japanese sports brands are managing to get ahead of american rivals.

alert,the next hour, on tensions rise as north korea may be preparing another nuclear test. we are heading to seoul, korea for analysis. ♪

rishaad: it is monday the 12th of august. this is "trending business," and i'm rishaad salamat. ♪ rishaad: we are going to take you to beijing, seoul and tokyo this hour. we have got japan dropping back along with the rest of this part of the world with mixed messages coming from the factory floor. we had machine orders with a surprising increased, but prices down again. samsung closing down. they turned off their new seven phones -- note seven phones.

we have tensions on the rise with the korean peninsula. the north preparing another nuclear test. it is now their fifth atomic weapon. let us know what you think of the top stories. please use the hashtag as well. it is a holiday in many muslim countries. in this is including indonesia, closed and singapore. they are relieved they are not trading. it is very negative out there. here is juliet. fairly negative indeed. indonesia not trading, singapore, sri lanka, bangladesh and the philippines. have a look at markets that are .pen they wish they weren't either because we are seeing the malaise from wall street being taken. by asian markets. have a look at the hang seng off by 2.4%.

the retailers up 3.4%. goldman has come through saying you should be buying chinese shares listed in hong kong. they say they have raised their stance on the overall chinese index thanks to a renewed policy easing and regulation and corporate earnings. korea coming under pressure by 18 by 8% -- by 1.8%. and this is down 2% even though we have seen a little bit of yen strength playing on the export companies. fairly positive rate. australia being weighed down today by commodity players, off by 2.1%. look at this selling on the afx 60. it is off 4%. check out the volatility on the

and then. have tripled. the selloff in new zealand really quite rare in terms of magnitude. it has only happened three times before since the jay inslee. -- jfz. thecan see the 0 score, circle of the end. that is standard deviations from what we should normally see. a standard deviation of one is normal. it is currently at 4.5. not only watch but selling in new zealand and also volatility. that is what we are seeing right across the market as asia is waiting for the final of the fed. she is thought to be quite dovish. we could hold comments well that would put the chance of a september hike back on the table again. rishaad: it is the temper 12, not august 12.

not august 12., we have company standing on the stronger yen. there could be a new communication strategy for the boj. break down the numbers for us. reporter: it has been hard to gauge what is happening with the federal spending in japan. you see machine orders higher than estimates, jumping 4.9% a month in july. instead of falling 2.9% as it was expected. it is worth noting this was a highly volatile set of data. to a 15% to a feed -- in january but no plunging 11% in april. has been quite erratic six months. wholesale prices, although they have been consistently in the april red -- the red since april last year, they have fallen by 3.6%. the reality in japan is companies are holding tight

spending.ding -- on the currency is strengthening about 14% in the past year. what we are seeing is if the fit -- central bank can fight this, steering away from enterprising markets. ubs says the boj is changing its tactic to one more focused on dialogue with the markets. last week, governor kuroda and his deputy highlighted both cost and benefit of the boj, promising very similar language. they also provided analysis on the negative rate tools i cautioned about the excessively low yields on bonds damaging confidence. what we are seeing now in the markets, they are reacting to those warnings with a steeper yield curve. the white line is the curve where it stands now. in red, 20 years ago. back above 0.4% as you can see there.

that is an indication the central bank prefers to see significantly positive rates in that part of the yield curve. rishaad: thank you very much indeed. let's look at other stories we are watching for you today. here is the roundup. reporter: questions about hillary clinton's health are back in the news after she was forced to leave a 9/11 commemoration ceremony early. she appeared to stumble as she was helped into a black van outside of the event. her doctor released statements saying clinton was recovering nicely after being diagnosed with pneumonia friday. she had become overheated and dehydrated. she went to her daughter's apartment and made her -- and later managed to say i am feeling great. boat will get finished unloading cargo in l.a. other ships are waiting after a u.s. court granted a shipper protection. and the biggest shareholder, an

-- $40 company, paid $53 billion worth of goods stranded at sea. south korea's trade industry is offering cheap loans to help shipping vendors and porters because of this transportation cost. tensions rising again on the korean peninsula. the north is ready to test another bomb. they say will take place at the number three tunnel in the far northeast of the country. they carried out their fifth explosion on friday, triggering a 5.3 magnitude earthquake. and they succeeded in making atomic weapons small enough to fit on a rocket warhead. intelligence officials in the south and the u.s. say there is a high chance of a new test taking place. they have testfired several ballistic missiles. most of them traveling 500

kilometers before falling into the sea of japan. that could put the whole of south korea within range. rishaad: we have another big fish being caught in china's anticorruption net. this is the party boss of tianjin, one of china's biggest cities. we look at the significance of all of this. stephen: it is significant. this is the highest rating official to be investigated for corruption in more than a year in china. he is not only the mayor of tianjin but also the acting secretary. that is the top-ranked position in this city southeast of beijing. he is a subordinate of president xi jinping when they were in the guangzhou province. is being investigated for serious disciplinary violations. that is a use prism -- that is euphemism for taking bribes.

he was not charged when the large exposure wrapped through a lab, killing 165 people and causing more than $1 billion in economic losses. he avoided punishment, but it looks as though that umbrella of protection he may have had is now gone. the state ran this in an editorial that that anyone that violates party discipline will be dealt with no matter who it is, no matter what post. situation adds to the central committee meeting, which is expected to lay the groundwork for the decade leadership summit next year. people across the country are busy jockeying for promotions within the communist party. if he had been named permanent party secretary was likely in line to join this elite 25 member panel. he is the now standing committee member, now the former party boss. it was known during his time for investmenteakneck

led growth, entering huge amounts of debt, building large new city centers including the mostly empty manhattan-like district. interestingly, maybe coincidently, three top 10 state officials have been caught in these probes, including the vice mayor last month and now the mayor. after his presumed attempt, tianjin is now without a party secretary. it is without a mayor, and it was without the public security chief. rishaad: we will get more on north korea's nuclear ambitions later on in the show. we will get the latest reaction. and could shanghai be the best performer in china? ♪

♪

rishaad: please of the latest business flash headlines. iran is trying to deal with china. agency saying it is worth $1.2 billion. it is part of iran's plan to upgrade its oil industry after years of sanctions. they want to boost production to pre-section levels before it would join the rocket proposal attached output. -- testing electric cars later this year. they will be launched in the fleet overnd it will 100 vehicles in five cities up to 2018. the car show will kick off in guangzhou. 15 electric vehicles with some 300 on the road by 2020. newspaper hopes the company will combine market sales operations for the bmw and

mini brands. they are changing their electric car strategy to take the game to tesla. the supervisory board will approve a new model at the end of the month. gui yang, apparently the best-performing city with shanghai, still a second lace. -- place. that is all on their economic performance. let's get more. carry one is the managing director. thank you for joining us. how did you come up with this? how do you come up with good yang as the number one city? what are the things you used? much try totty capture the one-year growth, five-year growth of employment and wage, and we also look at the regional gdp growth.

and also, more importantly perhaps, try to capture the high-end service segments of the market to detect how fast they grow outside the economy. and also look at or evaluate how tightly this particular market tied to the global market with the approximate measurement of fbi. rishaad: tell me something. ? y guiyang what measures does it really exceed? -- succeed? perry: we are using the same template as the past 20 years. we look at the u.s. regional economic growth. when we look at guiyang, the low base of the economy, it is slightly lower, developed the first cities, and we look at the upside potential and the pace of

job growth and wage increase. we also look at the amount of investment being a place in the regions. growth,f five-year meaning both temporary return and also long-term. rishaad: let's look at this also. -- did you have quality life of life in this index, or do you? perry: i am sorry, i did not quite catch that. rishaad: do you take account quality of life in this survey? quite.not i think for a region such as guiyang, it is a very -- if you will -- low developed city. if you look at the past few years, it was not doing such a good -- i think -- [please stand by]

the infrastructure in play in the city. youaad: all right, well have been through the first tiered cities, you just touched on the second one. what about third tier cities? perry: the third tier city we note is one thing we stand out. the smallest city, mid to small city within the east coast clusters, if you will, superclusters, they do quite well. but there is a newcomer. that is where we can see the government policies promoting, and is working so far. some of the smallest cities, five of the countries are popping up. they are performing increasingly in favor with job additions and

also investments. we also see some of the foreign companies are moving into those smaller cities in the western side or central side of these. rishaad: does this also actually represent any success when it comes to the five-year plan, the 13th five-year plan in place, and the belt road project? perry: correct. it actually, i think one of the reasons guiyang has done so well is because one of the key points of the overlap from the central government, one is the belt. when you look at the river economic belt, the beginning of the belt actually is from guiyang, runs all the way from the mountainous region into the ocean. so the chinese government uses

the river belt economy, so to speak, i think, try to make economic growth from the eastern side of the country to the western side of the regions. exactly.ishaad: do you see any improvement in a lot of those cities which are in the northwest, some of the poorer ones, prior -- former provinces? what about the rust belt in the northeast? well, i left off on comparison. the rust belt china is still slightly better than the rust belt of u.s. by comparison. but you are quite right. the northeast economies are coming down. coming down in a way that is rather difficult to stop so far. last year, we have one of the capital cities in the northeast corner have done ok, but this

year, it fell. and the last remaining large city in the northeast region ,hat is doing well is balian but it is very different from its sister cities in the region because it is a port city. it is a tourist city. also it is a city to be engaged in a lot of financial activity. it is doing much, much better and is action ranked among the top 10 this time. rishaad: great talking to you. thank you for joining us from beijing. breaking info coming through, more on samsung shares, 7.3% down, the biggest drop since 2012. 7l down to the note smartphone, massive recall taking place. samsung saying just a few hours ago if you are using it, turn it off and stop turkey because of -- risk of fire or explosion

stop charging it because of the risk of fire or explosion. 73% down as we speak. how japan is one of 50 bidders to make a bid for yahoo!. we go to tokyo electron fixed -- next. ♪

rishaad: this is trending business. we have japan making a bid for yahoo!, but it was rejected. yahoo! and said they were not compelling. why make an offer here? yeah, it looks like what yahoo japan at least and also softbank behind them was trying to do was have a backup plan in case the verizon plan fell through. back in july when yahoo! received is finally -- final

bid, there were five ranging from $3 billion to under $5 billion. this one was around a second-place. what they wanted to do was make sure they were in the game and ready to pounce in case the prevailing deals -- which ultimately went through with verizon, actually happened. rishaad: the question is, it may have went abroad, but what happened? the big question. reed: yeah, it was also hard to see what exactly, apart from money, the deal would bring to both companies. in many ways, the paths of yahoo japan and yahoo! diverged to many ways. -- in japan, they have quite a thriving business. it is something what you saw at the don of the internet age, auctione a successful

site. and it is also a brand for telecommunication business here. in the u.s., yahoo! got completely overtaken by facebook, google and other web properties that really became at the center of people's digital lives. in japan to some extent, yahoo! japan remains the visible. rishaad: what if it had gone through? because what it actually means is these two companies go separate directions. it is an interesting question. definitely the brand itself will carry yahoo japan for quite a while longer. essentially in the u.s., yet who 'sll become part of verizon growing web portfolio which includes aol. but in japan, it will continue to evolve and will probably move

into other areas or if nothing else, just consolidate the position they have here. they really don't need yahoo! to succeed in japan. it was just the deal to make, that might have made sense at least in terms of restoring the entire yahoo! family, as it were, to its former glory. rishaad: thank you. joining us from tokyu. -- tokyo.l looking at first quarter earnings out of tartar steel. they are trying to push the urban population by 2050 in india, so there warming at liberal competition from china. data dump on tuesday, china releasing oil production and retail sales numbers after both sets disappointed the previous month. economists looking to see improvement from the factory

floor and retail sales picking up a further 10% of the year. major technology companies in japan falling for the tokyo game show. the theme once more, virtual reality ahead of sony's space mission. that smartphone game, takers would be on watch of nintendo's announcement that super mario is going to the iphone. here nextl be back weekend, we have the singapore grand prix. it is taking place two points ahead of the mercedes teammate. mercedes is dominating, winning all but one of the grand prix so far. up, but alsooming looking forward to malaysia airlines as it looks to offload assets and plots a new future. and we have stocks sliding.

we have global stock selloff taking place as we saw. following hot on the heels of what happened on wall street on friday. ♪

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you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. ♪ rishaad: a look at our top global, sotloff and stocks continues. msci asia-pacific headed for its biggest loss and june. financial markets jolted by concern about central banks and now they are questioning the benefits of loose monetary policy. , down 7.3unging percent, poised for its biggest two-day drop in five years. market cap gone

since thursday as u.s. and korean users were urged to turn off their note seven smartphones and stop charging them due to the risk of battery fire or explosion. some sun announcing a recall of all 2.5 million phones at a cost of $1 billion. hillary clinton trying to dampen speculation about her health after abruptly leaving a ceremony. sheappeared to stumble as was helped into her official vehicle. later she released a statement saying she felt overheated and a doctor said she had been diagnosed with pneumonia and dehydrated to japan having its lunch break. -- dehydrated. japan having its lunch break. closed, a few markets indonesia, the philippines, singapore, malaysia among those. waiting for a key

speech from a member of the fed. it is not janet yellen. quite thought to be dovish, but there has been speculation that she has become more hawkish about the state of the u.s. economy, and if her speech before next week's meeting is more hawkish, that could but the likelihood of a september rate hike back on the table. at the moment, significant selling coming through, korea off by 2%, mixed economic data and a stronger yen weighing. significant selling in australia, weaker commodity players in play as well. by 2.6%,nd down volatility very high. having a look at some key movers in the asian region, some sun is

one, -- samsung is one. wiped from its market cap since thursday. all of this on the back of that note seven recall and calls for people who have the device to be very careful with it following concerns that the battery made start fire. sun -- samsung sdi, the battery maker, falling as well. at some oilk stocks, particularly australia, falling significantly because oil extending declines. thank you very much indeed. we have oil making waves, extending declines following the togest drop in a month down

u.s. producers increasing drilling despite the supply glut. what is going on? rig count number on friday, a small gain, but it is a trend. are seeing those incrementally a climb, the highest level since february, so add some weight to the market. rishaad: people are using it as an excuse to get rid of oil. a stronger have dollar weighing on prices, but you have a fundamental situation with an overhang of crude in the u.s., and it adds to that harris -- bearish trend in the market. sellad: you buy at $40 and it $48, that seems to be the trend. we are not breaking out on either side of it. work is doing a lot of between $40 and $50, and will do that interweave approach the

opec talks. an informalis meeting, which has effectively become a formal one given the pressure put on them. >> exactly. there is speculation all want members may or may not do and the outcome. minister said on friday that all solutions are possible. rishaad: what are we talking about? freeze,the production that will probably not do anything. alsou look at the market and the market is in a better position than it was earlier in the year. outpacing demand by one million barrels a day. starting toet is rebalance and get into a nice equilibrium. while it may not affect the fundamental side, sentiment should improve or rise if there is any deal. rishaad: what are people saying though about the price, looking longer-term?

longer-term, people are quite positive on the price. putting aside -- rishaad: the head of statoil we will see $100 a barrel again. wayhat is probably a long off, but the $60, $70 range is quite feasible. better balanced market means better prices, maybe not $100, but in a range where producers are happy. rishaad: thanks a lot for that. indeed, i'm sure the airline those betterd like price is referred to. malaysia airlines talking to regional rivals about offloading its six eight 380 superjumbo's. they seek to add new routes and the asia-pacific.

what is going on here exactly? >> good morning. malaysiaid, we know airlines is in talks to sell the a3 80's to carriers and china or the southeast asia region. they are no longer needed. it is the next step in malaysia airlines attempted recovery, and airline in everyone's mind since 2014 when an airplane disappeared, then a few months later another airplane was shot down over ukraine. it is an attempt to cut costs and returned to profit in 2018. meanad: well, what does it actually for the group, for malaysia air? statement that really there is enough demand in asia

to sustain malaysia air it self and run a profit. it has realize that all the growth is in asia. it is looking at more than a dozen new routes and china, japan, and south korea, and it as itot need this a380 once did. it is a four engine airline purpose held to do long haul legs to huge airports. if you are malaysian air, you can satisfy customer demand by flying short-term routes in asia, and that is a story we have seen other airlines copy as well. qantas has done the same, looking at deferring its 80's to focus on asian routes. around the region, airlines are looking at economic twin engine jets. this has serious

implications for the airbus project as a whole, doesn't it? they have not sold in the in the last three years -- they have not sold any significant orders in the last three years. >> that's right. the significance of malaysian air selling its six aircraft is that it could be the first airline to stop running the a38 0, a plane that has been suffering from slow sales and first came into service in 2007. in 2018, airbus will cut production to one per month, a reduction of more than half its current rates. in this story is if malaysian air can find buyers for its aircraft in china or southeast asia, it could create a second hand market for the superjumbo's, and that will soften the market for airbus.

if a buyer wants to take on 0s, then that38 will sustain maintenance costs and convince other airlines that it might be worth taking on these orders that are stretching out for years. there are more than 100 on order that have not been delivered, so if you are an airline and you can see a sustainable secondhand market, then you might think we will take a couple more on because we can find a buyer for them somewhere down the line. muchad: thank you very indeed. joining us there from sydney. right, some other stories, space x asking witnesses to share photos and videos of the rocket explosion. on hissk made the plea twitter account, where he called the incident the most difficult and complex failure in the company's history. wasfalcon nine project engulfed in flames minutes before a prelaunch engine test, and the cost -- cause has yet to

be established. self driving cars may be to a drop in insurance costs. premiums may fall by self driving cars become more widely adopted. they need to assess the impact on business as carmakers embrace the technology. almost 50% of global premiums are auto insurance according to aon, . clint eastwood's movie top the north american box office. tom hanks stars as the u.s. airways pilot who put his aircraft safely on the water after losing power in both engines. it took in $35 million. hillary clinton has canceled

plans to visit california on monday and tuesday with her cap -- or health a campaign issue pg left a 9/11 commemoration ceremony early and the video is making the rounds. these picturesk has been catapulted into the public eye. >> this man is originally from the czech republic. he posted the video on twitter clintonaptioned hillary 9/11 n.y.c., which shows her standing in front of the van and requiring assistance to get into it. that he hadmberg or been a firefighter before moving to new york and had attended 9/11 memorials every year. both donald trump and hillary clinton attended the september 11 commemoration ceremony at ground zero. she wass doctor says recovering nicely and has been diagnosed with pneumonia. she had become dehydrated and

overheated. this is the video being played by the networks. of the issues that has been revived, hillary clinton's health. the question is how this is going to play out for hillary clinton's campaign. plenty of comments on social media. one person saying, stay away from the weight room for a while. saying, he has a slavic name. why is no one questioning if he is a putin spy. a key question is what can the republicans do with this, i guess. >> bloomberg sources are saying donald trump is planning to keep quiet on this. trump strategist believe clinton had a bad weekend and this is a defining moment for the campaign. the question is whether donald

trump will be able to stay on message. in the past, he has not had much self-discipline when it comes to certain things. the democrats criticize republicans for questioning hillary clinton's health, saying they are spreading conspiracy theories. donald trump has not released his medical records. fact that and the hillary clinton had to leave the 9/11 commemoration event earlier adding fuel to the fire. she has canceled her trip to california, where she was expected to attend fundraisers on monday and tuesday this week. coming: what have we got up? south korea saying north korea preparing another nuclear test. is on the back of pyongyang's claim that it can mount an atomic weapon on top of a missile. ♪

look at let's have a the latest business flash headlines. more problems with samsung, u.s. and south korean users are to turn off devices. stop charging phones due to the risk of fire or explosion. airlines warn passengers not to use the phone on flights. samsung announced the recall of all of its 2.5 million phones, an estimated cost of $1 billion. it is updating autopilot technology to focus on radar images. attempt tohird convince critics that its semiautonomous features are safe. tesla says it has designed the autos during software to disengage if a driver ignores warnings to hold the wheel. anla under fire since accident in may involving a driver using the autopilot technology.

hewlett packard betting on copiers as it looks for new areas of revenue. announceay it will several new machines for corporate customers later today. on dominating the market, but hp is hoping it will help to take more of the 55 billion dollar business and make the transition to 3-d printing and the switch to digital mobile devices. is reportedly preparing another nuclear test. it will take place at number three tunnel at a test site. the north carrying out its fifth explosion on friday, triggering a 5.3 earthquake. the north has test fired several ballistic missiles in recent traveling 500 kilometers before falling into the sea of japan. this would put the whole of south korea within range. theh korean watchers said nuclear test was not a great surprise.

let's get over to seoul, korea. what is kim jong-iun trying to do here? >> he is determined to have a full-scale nuclear force capable of reaching the continental united states. he is working very hard. his engineers are far more successful than anybody expected to he did a lot of nuclear tests this year. maybe they will test another bomb. he made 37 launches of long and medium-range missiles. what is important is that he successfully tested a submarine-based ballistic missile. anyan theoretically go to point in the ocean and attack any city they like.

it will take time before they deploy it, but this is what he wants and he is working hard with great success. have people really underestimated him ever since he took over? >> yes, because he looks funny. he is fat, strange haircut, even looks funnier than his father, but when it comes to politics, there are some policies which look unreasonable, but basically , he isnomic policy encouraging capital reforms while denying it. the north korean economy is recovering and growing. you have this idea of the country stalling. not stalling anymore

because of private business that he encourages. he wants to be able to strike any country he wants to strike, including the united states. is doing well in spite of sometimes looking strange. that it the point being would rally the population to some extent to cement his position. he seems to be unsure of his position, and given the changes that the top levels there, how far is he at the moment cementing himself in the job? knowledgebest of my from a talks with north koreans everywhere, he seems to be very popular. he is shooting a lot of generals. one of his hobbies is to execute a couple of generals or top officials.

you don't care about these people whom you despise anyway because they are seen as fatcats, corrupt, irrelevant people. korean people don't mind when these people are shot. the average north korean sees the economy improving and life getting better. to the best of my knowledge, he does not really need to care much about popular support. many ofds to the elite, the elite is not happy and his execution squads are always ready to silence a couple of generals or top party secretaries who have their own ideas. rishaad: is he prepared to go to war? >> no, absolutely not. he is not suicidal. he does not want to go away as leader, the way of saddam hussein and iraq or colonel gadhafi in libya.

he does not want to be attacked. if he faces an internal rebellion, he does not want the international community intervention. he wants to be capable of shooting people as efficiently as necessary. is afraid of foreign attack. he saw what happened in iraq and libya, and he has to be ready. suspicious of everybody, china, russia, japan he wants to have a nuclear deterrent. he knows he will not start a nuclear war because he knows he will be killed. he likes his life. he has a beautiful wife, a young daughter. he does not have any ideology a part from mild nationalism and the desire to make his country great, powerful, and reasonably prosperous. he is not stupid. like his father was not stupid. rishaad: great talking to you as

usual. coming up, quality control, a japanese carmaker refusing to bow to the pressure of mass production. ♪

rishaad: right.

japan's motoring industry change in the way cars are made, setting standards for efficiency and cost-effectiveness, but mitsuoka is bucking that trend. we went to their factory. ♪ priority is designed, not cutting edge functions. it has to be cool, cute. it has to be adorable, just like fashion. of course there are many cool and cute cars on the streets, but ours are different. he is now using sandpaper to smooth the surface of the car after putting together two separate bodies. to check theands surface is completely smooth out. it takes time. we use machines in the process, but have to use human touch to make sure the surface is perfectly smooth at the end. we cut off the body in front and extend its length. he is now smoothing the joint

parts. it is a nerve-racking job. only a few craftsman can do this. we depend heavily on individual craftsmanship. it is our big headache securing the right people over the long-term. they need to understand the quality and spirit of mitsuoka vehicles. of course you can depend a machines and robots to mass-produced cars. here it is not only the individual techniques, but communication between staff members is also crucial. i must admit we have low productivity. i believe the more time we spend, the better product we can make. we pay extreme attention to subtle details that automated machines can't. of course it is not cheap to put the emphasis on detail, but i think it is worth it. ♪

♪ angie: first -- not shining on the markets today. ♪ angie: i am angie lau.

the hang seng is headed -- boost drilling despite the global glut. turn off their phones immediately. $20 billion has been wiped away. rivals in the fight for visibility --