rishaad: it is tuesday, september 13. this is trending business. i am rishaad salamat. we are going to be taking you to singapore and sydney. this is a look at watching the market rebound. the chances of a rate rise this month received as the governor urges patience, saying there is no need to rush. samsung -- recuperating some of its losses. china posts of the savings rate,

saying it is looking for at least $8 billion in a share offering in hong kong. it would be one of the world's biggest ipos so far this year. look at one day off the public holiday in singapore, we have got them coming back today. a much brighter session. nerves have called a little bit in the markets, although you have seen these major markets come off their earlier highs. getting to the ones that have come online, taiwan up by .7%. we are seeing weakness from malaysia and singapore, which were closed mondays are the holiday. it looks like there is little bit of catch-up going on in those markets. 17%ng a look at korea, up as we see -- up .7% as we see samsung rebound.

we do have insurers and banking stocks leading the game. it is worth noting, it is the first gain have seen on japan's equity market and five sessions. volatility, certainly a lot lower than it was during monday's session. the volatility gauge fallen by almost 6% today. futures rise -- copper futures rise. sometime in the next hour, -- new zealand's market is up by .5%, but it had a shocker of a session during monday's session, down by 2.6% and volatility incredibly high. i want to show you the bond market. comments gave a little bit of a boost to some of the stock in the u.s. read there was a comment saying, why didn't we see treasuries follow suit? he is saying watch out for the

japanese bond markets. we are still seeing the yield pretty flat there on the 10-year note. the story we have on the bloomberg as well, j.p. morgan chase saying the bank of japan has created an atmosphere of paranoia in the japanese bond market, because yield hunters really becoming the hunted. japan's debt losing around 9% this quarter. keeping an eye on the bond market throughout the course of the session, we are still seeing negative yields on both of the five and 10 year notes. the shanghai composite dropping as much as 2.6% on monday. the offshore yuan surge the most in seven months. there is a correlation here, isn't there? reporter: don't feed the bear. that could be the motto, as it has been defending. chinese authorities may be willing to sacrifice stock performance in the short-term,

in favor of possibly keeping the yuan allegedly stable ahead of that sdr inclusion on october 1. and of course, the expected rate hike or possible rates move by the fed later this year. the shanghai composite index shank -- sanctifies much is 2.56% monday for closing. the benchmark indexes now down nearly 15% so far this year. let me take you into the bloomberg terminal and see the correlation. -- the correlation between the rise -- the three-month offshore yuan highborn, the inter-bank rate here in hong kong, climbing some basis points. we can see from the last few times that high bore surged both in january and in august of last year, shares were sold off. the blue line, there. the city private bank at hong kong says the pboc is squeezing

offshore yuan supply and that is pushing up high bore. tosays the pboc wants increase cost for yuan bears betting against the currency. 12 month, non-deliverable forward contracts on the yuan. single traders are on the most bearish turf on the yuan and almost four months. worstrrency is asia's performer this year, with a 2.8% drop against the greenback. a fund manager at a life insurance company says high bore is a reference for investors. increaserge means an in capital costs, and that is bad for equities. we are going to get a bunch of chinese eco-data within the hour for august, including industrial production, retail sales, and urban investment. also bull new loans data as well that could come out today. we are looking for further signs of stabilization in the economy. some economists say earlier targeted stimulus may be starting to wane.

and dust real production is expected to take a slightly upwards from july, but we are not talking about a blowout number. retail sales, we can see forecasts remain just about flat from july. but any dip below 10% for retail sales is going to be the lowest since february of 20,006. -- of 2006. we are also getting fixed asset urban investment. we are going to see numbers likely below 8% growth, the slowest pace since the late 1990's. let me once again take you into the bloomberg terminal and show you -- even though data has mostly stabilized from the earlier half of the year, the overall trend here, as you can see, is of an economy decelerating. that may mean another round of monetary easing, such as a rate cut. authorities have

been pretty consistent and trying to curb the expansion of -- at the bigs banks arrest 11 year high. i am not going to guess what the pboc is going to do. rishaad: taking a look now at what could be the biggest on the market in a while. we will have a look at some of the other stories we're watching. reporter: this is a big one. the savings bank of china is seeking as much as $8.1 billion in its hong kong ipo, which could make it the world's biggest share price this year. ands a ubiquitous presence smaller chinese cities, offering 12.1 billion shares that range between 4.68 hong kong dollars to 5.18 apiece. that is according to the terms obtained by bloomberg. buy $5.9 committed to billion worth of stocks, or about 76% of the offering at the

midpoint of that range. to pass thenk plans offering on september 20 and begin trading on september 28. sachs, america, goldman j.p. morgan chase, and morgan stanley are the joint sponsors. coastal savings bank joining the bank of tangier and selling shares in hong kong to fund their expansion. samsung has nominated and heir to tackleo the board this worsening smartphone crisis that it is facing. -- has beenr known helping run samsung since his father's heart attack in 2014. he will have to show if he has the mental this deal the company through its biggest crisis in years. customers have told to stop using notes 7 phones for fear of batteries catching fire. take a look at what samsung is doing in the session today,

recuperating some losses this morning. $22 billion of value wiped away in just the last two days alone. company posted its third straight quarterly loss on account of the global supply glut we are seeing. the net loss widened to $475 million in the three months through june. they also missed estimates. china, which is the maker of half of the worlds's steel, has been flooding markets with cheaper supplies. that has been forcing competitors to lower prices and eroding their profits. in may, they announced its u.k. business was up for sale. it been suspended that process in the wake of the brexit throw. 4.4% beforeng down that earnings announcement. at japan'ske a look electronics agreeing to buy a

u.s. chipmaker. i guess the question was, why are they making this acquisition? reporter: they are making a push to shift focus to the automotive sector, and this is part of it. it is offering $22.50 a share. it says it plans to play with cash -- pay with cash. they expect the deal to close the first half of next year as long as regulator he and shareholder approvals rose smoothly. the components already make up nearly half of the annual revenue, and its customers include toyota, nissan, and or. semiconductorse and hybrid and electric vehicles and operate onboard cameras and displays. themberg intelligence says average car contains about $330 of tax content in 2015 -- tech content in 2015. premium cars can have as much as $1000.

they are expected to leave semiconductor revenue growth through 2019. if you compare it to chips in commuting -- communication, the growth areas far slower. as thought does look the renaissance has started to turn around. if memory serves, it has had years of losses. reporter: it reported its second year of profits and the year end of march 31. it has lost more than $4 billion in the five years before that. took office in june, and he says the company would look overseas for rmb and they had already started to relocate some outside japan. this was perhaps unthinkable in the past, but it is now seen as a way to reduce development costs and hedge against currency swings. the ceo says the development cost has become more important than manufacturing cost, because

it was more difficult to get enough engineers domestically. the company has reduced domestic production lines to 11 this year, down from 20 to five years ago, and cut it stock by nearly 15,000 to just sort of 20,000. stake ownedtrolling by mj, the governors governments own investment fund. on our website, we are looking at how singapore's property stock is getting some relief from wealthy indonesian buyers. luxury homes at the top of their shopping list. later on the program, we are going to be talking to the head of the world -- c-span has to say about the head of the global shipping industry. what would a doll trump presidency look like for the world economy? ♪

rishaad: we have heard the last word from the fed before. next week's big policy decision, traders are looking for clues in a potential rate hike. dennis lockhart says he wants to encourage further discussion about a rate increase. notwithstanding a few recent week monthly reports from the institute for supply management, for example, i am satisfied at this point that conditions warrant that serious discussion. rishaad: the message from the fed governor is they will proceed with caution. she said while the economy is making gradual progress, the bank should not jump to tighten. effecthe extent that the on inflation of further gradual tightening and labor market conditions is likely to be moderate and gradual, the case to tighten policy preemptively is less compelling. spokespersonrgan's

says the u.s. economy is strong enough, and the time to raise rates is now. >> the fed has to maintain credibility, and i think it is time to raise rates. normality is a good thing, not a bad thing. create an economy that has been going on like this for seven years is a good thing. to make, the return to normal is a good thing. gets much more psychological attention than the actual economic effect of raising rates. guest says, next regardless of the timing, the rate hikes may be shallower than previously forecasted. ats is head of investments the singapore bank. what are you making of this commentary? fedur view at city is the will hold off on raising rates at its september meeting next week, as the dogs on the committee wait for more assurance that the u.s. economic

recovery is on track. notwithstanding the more hawkish comments from some members of the fed, including vice chairman fisher and chair janet yellen. is, whatthe thing happens after? this whole debate will resume again. how the markets behave themselves? >> i think essentially what the fed governors are trying to do is talk up the possibility of a rate hike. they want to ensure they have the option audi -- option. at the same time, if one really to the full employment and gently rising inflation, we see that while we are almost there on full employment, at about 4.9%, the inflation picture is not strong enough to convince all members of the committee to move forward. therefore, we feel that december

the committee will move forward with the second rate hike since the global financial crisis. probablythe election plays a role whether we like it you are not and do matter what they say, too. >> our view here at city is that the rate hike will go forward in december. however, that is contingent upon a hillary clinton victory. we feel that a clinton victory would afford the markets and regulators certainty and confidence about the path of policy going forward. where a trumpet victory would increase the uncertainty, and we feel that the fed would likely hold off on raising rates in december and the less likely scenario of a donald trump victory. trump, as you have mentioned earlier, -- you have got ak 65% chance that hillary clinton wins.

if we get a doll trump presidency, you are talking about -- eight donald trump presidency, you are talking -- about global growth is shrinking. >> that is pretty soon if again. are reallytors that driving our views on the paring back of global growth in the event of a trump presidency are one, the significant policy uncertainty that a trump presidency would come with. we do not know exactly which policies donald trump will or will not and ask. at the same time, we do think that the chances of a global trade contraction are relatively high, given trump's discussion of challenging trade agreements, as well as his questioning imports from many trading partners. those factors we think will drive growth down and global growth down. rishaad: let's also have a look

at the emerging markets side of things. we have had a lot of money move into this part of the world. are you seeing any of that peter and out -- petering out? >> the factions that have really driven the strength of the emerging market have been a weakening u.s. dollar, low yields, and a continuing belief that we will not see an increase in rates from the fed. therefore, we do think that will be slowing down. however, assuming the fed does hold off rating -- raising rates in september, and assuming the u.s. dollar does not significant re-strengthen, we do believe that emerging markets will continue to reform well. -- perform well. -- we haverket debt a positive view on emerging market debt across the board. rishaad: one of the reasons you have not been looking at the u.s. so much is the earnings.

earnings should pick up at some stage. we are seeing lackluster performance by corporate. i suppose when they start picking up, that changes some of the evaluations in making them more attractive. >> exactly. at this stage, we really yet have to see the strong earnings growth that we would love to see from corporate's around the world. we have seen multiple expansion driving stocks upward. continued opene spaghetti of global central bank monetary policy driving monetary valuations upward. ofcontinued open spigot global central bank monetary policy driving monetary valuations upward. thanks for joining us. just got some breaking news coming through from the people's bank of china. market again,e injecting more liquidity into the system. 60 billion yuan at the moment.

this is coming through from traders right now. i bet more support, that's more money sloshing around the system. up next, data jb strike a good deal for the good guys? they could be a $650 million electronics deal in australia. ♪

rishaad: we are looking at jb hi-fi shares. this is the australian electronics -- bit about us a little this deal. give us an idea of the size, to begin with. >> it is a very big deal for the good guys. 870 million australian dollars, about $660 million u.s.. it does value the good guys at

about 11.7 times the earnings. hi-fi nowtioned, jb in a trading hold, but seeking to raise around 300 59 million australian dollars to help complete this purchase. share will befi released for every 6.6 held, so a total of -- shares. the rest of money is going to, from new and existing debt facilities. not a huge surprise of the market. there has been a feeling that this is going to happen. they're finally is a deal for them to take over the good guys at stores. likely to be complete around the end of this year or early next. rishaad: not a lot of consolidation when it comes to the electronics retail industry in australia. how much of a gap in the market did the collapse of that story create? >> the demise of a major competitors certainly helps jb , the two harvey norman

big electronics retailers left standing in australia. if you take a look at jb hi-fi's august sales, they are up 11.7%. they are forecast to make 4.5 billion in sales for financial year 2017. dick'soval of dekes -- is definitely helping them there. they will have another 101 stores taking a total footprint to 295 stores. the plan is to expand both brands. we are going to see a lot more of these electronic stores in this side of the world. just minutes away from the start of the trading day in hong kong and shanghai. we are reversing the call that we saw on monday's session --

still ahead, courting china. the treasury says the u.s. needs to change its view. ♪

♪ the chances for a september rate hike have slipped to 22%. gradual progress on inflation and jobs. says wen jamie dimon need to maintain credibility, and now is the time to raise rates. some slides this morning after the air parent was anointed.

it is something like billions of the company's value. they should stop using -- is seekingings bank up to eight $1 billion in hong kong share offering. found cornerstone investors in shanghai port. let's have a look at what is going on. we currently have the nab monthly business survey out. at six inome up august. it was at four and july. it's coming in at seven. let's get to markets. let's have a quick check

on the aussie dollar. those are still quite well-off where they used to be. the aussie is a little weak, -- 75% --. 75% well below the level they were hoping for, considering the economy is transitioning from mining to non-mining. big selloffery yesterday, the hang seng lost about 800 points. seere looking like we will money coming back through that market following on from that rally on wall street. really pushing back the likelihood of a rate hike

anytime soon. shanghai up by 2/10 of 1%. .orea coming back as well it is a 7/10 of 1%. still some upside on the nick i -- nikkei. the buildings coming online, down by a 10th of 1% to that is similar to what you see in malaysia and singapore. remember these markets were closed on monday. they are playing a little bit of catch-up to that selloff we saw during that session. just want to show you some of the stocks in particular that we are looking at. asc in hong kong, this is china's investors pile onto the stocks from the stock connect program. that topped out at seven 4 billion hong kong dollars is month. cetkovska going up again -- santos falling off again.

credit core group has hit a record high. provides credit services in australia. a record high coming to there. all looking pretty good on the market front, just having a quick look at the japanese yen. we did see that strong finish coming from the yen during our monday session. it is still strengthening, up by a quarter of 1%. morgan stanley saying it could get to 99 by years end. we are going to get back to samsung. really on the headlines for the wrong reasons. biggest loss of value pickup a scene in years. they're trying to take care of the note seven phone. what is the master plan here?

>> right now they're thinking if partung could be of their -- a bigger part of the decision process. we are seeing the stock , more thanstrongly 4% today. that is after plunging on the biggest two-day decline since 2008. remember, samsung has been declining since the release of the new iphone. on friday, it plunged as we got more information about the problems with the note seven. now we're hearing from u.s. authorities and samsung itself that the note seven, the battery, it could catch fire. than 2recall of more million phones could cost the company $1 billion. a bit of a rebound, a huge and iceman -- huge rebound. rishaad: that looks nasty,

doesn't it? aviation authorities asking people not to use those phones on the plane, either. we are seeing samsung shares reacting to that plunging, rebounding. you have to put the whole problem into bigger context. if you compare samsung with the company itself, compared with other south korean for -- firms. look at at the pie chart. it was $186 billion after the $22 billion plunge any market value. right now, they're worth more than $190 billion with that rebound in its shares. still, put all those other korean forms -- firms combined, and their market value is still topping that. rishaad: it is also more than 50% of the helsinki main index. we have to remember samsung is not just about smartphones.

there is also brand damage here, ultimately. >> and how far that brain damage could go and what that could mean for the south korean market. that drag down. that drags down the korean you on, which has been the best performer among major currencies in the last quarter. it is not just the problems that samsung, but also the nuclear test in north korea. we have samsung, we have north koreans, a possibility of another nuclear test, not to mention the possibility of a u.s. fed rate hike. states: the united should step up to attract investments from china despite

legal resistance. commentslson, those contrast with donald trump's criticism of china. contrast, the report from henry paulson is titled demystifying chinese investment in the united states. it comes just two weeks before the first presidential debate. trade and foreign investment were expected to be topics. if trump takes office, he says he will label china a currency manipulator and will come down hard when it comes to that trade relationship. paulson says outbound investment will grow significantly over the next decade. unless the u.s. steps up and efforts, it will miss out on its fair share of that pie. he is also deeply concerned about what he calls this wave of protectionism sweeping the united states. he is planning out that foreign trade and cross-border

investment are key pillars of economic growth. he also takes on the criticism that foreign investment kills domestic job growth. he said that benefit society along -- at large in the long-term. chinese investment could create jobs in the u.s.. he demands both country avoid putting entire sectors off-limits to foreign investment , and instead have reviews. he is urging china and the us to complete investment -- investment treaties that -- inevitably takeovers have a vertical dimension. the u.s. really needs -- a political dimension. the u.s. really needs to watch out for this wave of protectionism which could spiral out of control. -- aad: >> it is interesting.

we have had spending from conglomerates back a little bit. despite the slowdown in china, or behalf because of this increasing at this -- mainland companies have investigate -- invested more than double the previous record in the u.s.. you can see the surgeon that bart chart there. we are at levels up from just two point billion dollars -- two $1 billion. according to one report, about 80% of outbound are what they consider strategic investments. 20% are made primarily for financial returns. if you take a look at this next graphic, it breaks it down. there is a rebalancing story we have been talking about or the

service economy, nonmanufacturing. appliances for 5.6 point -- ars, entertainment, that these are some of the high profile position. they very much fit in with the story of chinese rebalancing. rish? rishaad: not long until china comes out with their numbers. china editor is with us now. what sort of should you expect to be painted? get more evidence whether the rebalance is on track or not. we are expecting a pickup in factories and industrial production. it will likely come through at 6.2% from 6% a month earlier. an investment for of 7.9%. that is slow by chinese sanders. -- by chinese standards.

rishaad: it is not a happening. >> it is virtually zero. it may go to zero. we have the state stepping in. we will probably see that trend again. what it tells us is monetary policy ease -- is still effective. those effects are tapering off now. we may get the aggregate financing numbers. we are looking for a bit of a comeback on that front. a seems to be going back 10.5% back in july. that was the shocker of the july numbers. the big follow-up design credit aggregates. rishaad: that take a lot of pressure off chinese policy makers. did we see a bit of a shakeup from these numbers? >> anything is possible, but the

most recent signals continue to be this juggling act. they're trying to moderate some of the asset bubbles. of thec researched weekend describing property markets as bubbly. that does not suggest it comes from someone who would be advocating rather interest rate easing. assuming we do not get a big shock on either side, we're likely to see more of the same mix of stimulus channeled through policy banks with certain moderation on central-bank easing, because it doesn't seem to be getting where it should be. rishaad: thank you so much. having a look at some of the other stories we're following tonight. tension in vietnam rejecting china's claim to these of tennessee. -- of the child that south china

sea. japanese prime minister shinzo approval ratings have jumped to a two-year high. 57% of responders but can -- back him. number approve of tokyo's decision to increase bilateral talks for these islands in the south china sea. malaysia is looking to spend $1 billion over the next five years to refurbish its airport. the terminal in kuala lumpur will need update soon. upgrades will benefit regional airlines, including air asia, which are expanding fleets. biggest container ship leaves waves in the

industry. ♪

♪ rishaad: a new report out of soul saying it may take -- sale -- the korean regulators saying it is uncertain the struggling company will be able to raise funding from the airliner at all. alone afterroved and -- hanjin handed over a state. -- lendedh -- len and did hanjin ships. what you make of this? it is been money-losing.

notlong terms, it is just sustainable. -- aad: >> it is a huge nuclear bomb. it shakes up the supply channel. you're talking about $120 billion worth of goods on the ships that are stuck. ports andiveries to two people at walmart. there is a material impact to the supply chain. people are suffering from the consequences of this major shakeup. it has never happened in the past. rishaad: surely it is happening the past. >> not on the scale. it's just huge.

you're talking about one of the largest shipping lines in the world, that is moving millions of oxus. rishaad: it affects you as well. you chartered three ships to them, haven't you? >> yes, we have three ships on long-term lease to them. we are having a hard time wheeling with them. what i'm trying to get is the impact of the manufacturers and supplies, the receivers, people like walmart, people like activities -- rishaad: and you're not the only one who chartered ships. are you going to get these ships back? >> we are comparing what they offered to us and what we can get from the market. time, i have in nothing more to comment. what i'm trying to say is, the impact was huge.

the whole supply chain has been shaken up. there is a tremendous flight for safety. in the long-term, i do not know. --re is one thing for sure the fought will help. -- the fallout will help. the charter rates have been really impacted as well. freight rates have gone up substantially from asia to north america. he rates have doubled. europe, the rates have gone up 15%. a long timehas been coming, i suppose. many of the ships are half-empty. , but there half-empty

load factor is actually pretty good. we're talking about christmas, peak season.- -- hanjintemic impact from fallout is like a nuclear bomb. you're dealing with all the after quake consequences. manufacturers are involved, shippers involved, receivers involved. in --d: it goes back to an intrinsic flaw. when things are good, they order a ton of new ships. by the time they're ready, the market has turned against them. then they have to scrap, then when things are getting better, it goes back again. >> it happens to any other industry. other

you deal with cycles. what we do, we lease though ships on long-term basis over the waves, and hopefully we get out of thisy process. that is our business model. we have done well despite the hanjin fallout. there is a small impact there. comment on,want to south korea is here to stay, and they will recover from this thing. korean economy is heavily dependent on exports. i am sure they're trying to work very hard to come up with a national carrier. rishaad: do you think this would make you take twice, seaspan, with doing business in south korea? >> correct. rishaad: you're thinking how long? obviously, it is not pretty.

it is not a good situation to have. i am looking over long-term. i believe in the resilience of the south korean economy. south korea has a big economy with $1.5 trillion. a nationalneeds shipping carrier, and i am looking forward to working with them. build a national carrier, sponsored by the government. it becomes a link in the economy. it is heavily export oriented. we need a reliable supply chain to deliver their goods to the receivers. it is very very important. i am looking forward to working with them. at the end of the day, i believe south korea will come about strong. rishaad: always a pleasure having you on the program.

focus.e of is the country turning away from the u.s.? ♪

♪ both candidates use on pretrade could hurt the global -- on free trade could hurt the global economy according to the barclays ceo. it could have significant long-term effect, pointing to the u.k. brexit vote, which distance the -- which distance them from global economy. -- clinical trial for a drug to help people quit smoking. they might not have accurately

captured the side effects. bezos is going head-to-head with elon musk. spacex is announcing a in the ghosts beyond simple . people intoto take space. afterls it "new glenn" john glenn. he hopes to launch by the end of the decade. we have had just about a half hour of trading in hong kong. raising some of that fall back we saw on monday. tokyo on the up. that trading driven up by recovering shares of samsung

electronic. for china watchers. three more indicators to be released in a few minutes. we'll get them line -- live. ♪

♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin with north korea. that country conducted its fifth underground nuclear test on friday. the government confirmed the test after a magnitude 5.3 earthquake hit near the country's nuclear site. it suggests the country is moving closer to building a earthquake hit near the functional nuclear warhead and the missiles to carry the warhead. international leaders have condemned pyongyang's actions, which occurred days after the g-20 summit in china. president obama expressed continued support and security for our regional allies and called for serious consequences.