♪ it is friday, the 16th of september. this is "trending business". . am rishaad salamat ♪ singapore, melbourne, and tokyo, our ports of call. news the u.s. is joining the recall over the note seven smartphone. that it struggling cargo operations are chaotic and uncertain. has had a stellar run

this year. may split below $50 a ton again. follow me on twitter at @rishaadtv, use #trendingbusiness. singapore coming online. we are having a look at the state of affairs so far. it is almost easier to tell you which markets are open than those closed. singapore up by .4% on the open. through,ports coming flat on the month, but down 1.9% seasonally adjusted month on month. i should say flat year on year. .3% -- by nikkei up i holding gains,th

but at least on the upside. australia up, the rebound and oil helping. santos up. some good news for new zealand, a tough week, it up by .8%. ds rising, so taking the positive lead from wall street and putting aside what the boj is going to do next week. the wall street journal saying the bank of japan is split on how it is going to potentially push more money into the

japanese economy through stimulus. boj officials telling bloomberg that it could be more in terms of buying more government bonds, but the yen stronger. it is another day, another headache for samsung. u.s. officials joining the recall. samsung urging users to replace phones immediately. it is a new body blow. what is the latest? recall,t is an official one million phones, 97% of phones sold in the u.s. essentially if you bought your , you before september 15 are covered by the recall. take your phone back and have it change for a free one.

they had a conversation with samsung. they found the battery was too big for the phones's case. it created space and pinch the battery, creating overheating. incidents of overheating batteries, resulting in property of earnsd 26 reports two people who were using the phone. we have a graphic that shows you that. burns to people who are using the phone. we have a graphic that shows that. your phone does not automatically turn on. announced thisg recall of 2.5 million. what is their response? the initial estimate was

$1 billion. rishaad: it went up from that. statement is on the website. have a listen. date, we have already exchanged 130,000 units, a fast and meaningful start. willpartnership, we continue implementing corrective steps to exchange every single note seven on the market. clear, the note seven with the new battery is safe. the battery issue is resolved. after that, he urged owners of the note seven to please our down the phones and return them. the new phones will be available not later than wednesday. rishaad: how does this change the smartphone game?

the timing could not the iphone seven. david: the issue with the brand as well. bloomberg intelligence came out with several writeups on this. one of the most interesting things was when you look at this part of the market, the ultrahigh end, smartphones above $700, and the note seven retails for a hundred $50. you don't have a choice. it is lonely at the top. -- and the note seven retails for $850. you don't have a choice. it is lonely at the top. you can get your phone replace. you don't want to spend money on a new iphone. this is something to consider. in terms of replacing, you can perhaps go down to the galaxy seven or apple. as you mentioned, the timing could not be worse. this morning, we had live shots

of people lined up outside the apple store in tokyo waiting to get their hands on the new phone. not jet black. that phone is sold out. rishaad: thank you very much indeed. this bat between germany's largest bank and the u.s. justice department. haidi: that's right. such a bank asked -- deutsche -- ansked to pay 14 investigation in the u.s., ranking high out of what other banks have paid stemming from the financial crisis. deutsche bank has no intent of settling the claim near the numbers cited. it expects to agree to a smaller amount similar to what other banks have paid. deutsche bank has started talks with the boj to settle these claims. -- the doj to settle these claims.

shareslook at how performed, losing more than 6%. bankingd's top regulator is facing revolt from european banks in two heated meetings. germany, italy, and other countries told the committee that its proposed changes to risk assessment must be scaled back or slow down. there is concern that some countries may not adopt the basel 3 standard. beicials said they would not adopting the proposals as they stand. if the european union resists, it could undermine the global regulator's authority and fragment the banking industry. reaching deeper into

china with the new partnership, joining with union pay as it searches for a better position in cross-border commerce. they will be able to accept payments through paypal's braintree platform. appeal tocrease its european merchants trying to reach chinese consumers. they expect chinese consumers to spend 120 billion dollars on cross-border transactions this year. rishaad: thank you for that. in shipping under pressure again. is faced with chaos and uncertainty at the docks. what is going on here? >> to put it simply, it is not working out for hanjin. cargo owners and companies that vessels arein

complaining that they are making it difficult at the docks. there is a lack of information and protocol to unload ships. isy also say that hanjin asking to be paid in cash for the release of goods or even to be paid twice. one cargo was dropped at a port that had not been agreed upon, and to retrieve it would cost more than the goods themselves. a lot of problems, headaches, uncertainty as the christmas shopping season is fast approaching. were talk about billions of dollars of merchandise stock, unable to get to retailers. , theill pay for the fuel equipment, and services used by hanjin vessels? maritime law says they have the right to arrest ships, ensuring payment. day ifing to be as sad there are no presents for christmas.

rishaad: that's the thing, isn't it? brewing inroblems singapore shipping as well related to debt. >> that's right. is a persistent problem. shipping companies in singapore facing a record $1.8 billion in bond maturities next year. let's show you this bloomberg bart chart. you will see how tough it is for creditors. they are asking creditors for leniency, asking bondholders for approval to delay. one analyst says it does not look like the worst is over. in august.ulted look how shipping shares have slumped. oil global trade slowing, prices slumping, companies servicing the energy industry are suffering, becoming a minefield in the bond market. rishaad: thank you very much

indeed for that. isther story on our website why china's housing market is getting expensive. have a look at it, bloomberg.com/asia. outlook calm, and the for the gaming industry with crown resorts. a secondr dropping for day. u.s. retail sales dropping more than expected. we are discussing the odds of a fed rate hike. this is bloomberg. ♪

a look: now let's have at the business flash headlines. japan, seemingly going ahead of --, expected to be the second biggest ipo this year. as the equivalent of $24 apiece.

raisecessful it should $3.8 billion. the offering will be 26 teens biggest after the postal bank of china. that when is set to be priced next week. actionfeating a class lawsuit by investors who lost money in the bernie medoc scandal. hsbc had ignored red flags while administering a group of funds that place money with bernie made off. e outthrew that cas thursday. off is in jail. the world's biggest hedge fund manager plans to cut jobs. employees.

laos, as the company projected it may make less money this year. the hedge fund is 9% down. at thosee a look markets. there we go. .3yo on the way up by percent, the yen gaining a little at the moment. that is not helping exporters. 200.pronounced on the asx in wellington, we are higher. it is a curtailed session. lowsies up from three-week with the apple driving a rebound. toh interest rates expected remain low, are next guest believes the search for yield will continue.

tell us how you are doing at the moment and what you are looking at. the search for yield has not changed. is there anything else you are doing? at the moment, the primary focus has been on the search for the credit space and son european credit market opportunities as well. absolutely. in emerging markets are becoming more popular, aren't they? is there a reason for that? >> in the emerging market space, moreve valuations that are attractive, and looking at the macro economic data, the growth numbers are showing a little bit more optimism for investors.

at the same time, developed markets, we do have a bit of headwinds ranging from the resolution of brexit, which we are still waiting for more not to mention the political calendar is getting quite crowded. in the next few months, there are quite a few elections coming , againmany, france bringing back talks about how the brexit will pan out. as they're waiting for theresa maycation, says they will not invoke article 50 until next year. we have the u.s. presidential election and that referendum in italy. these are all political risks in the pipeline, aren't they? >> that's right. it doesn't make sense for investors to be watching all , andwithout much clarity

just looking at what is going on in the story about fed rate hikes, one week ago, odds were much higher, then yesterday, odds of a december hike have dropped below 50, september hike below 20. you get a different story every week, and that is not going to be the best thing for investors to try to predict what policy makers are going to do and the politicians will say. right, ok, you know, that thets suggest election has not been priced in either way, either a hillary clinton victory, which i guess mean, more popular -- i what i would like to say it is the one that most people feel is going to be the result. the thing is, what does that mean in terms of let's say the dollar and u.s. equities looking ahead? simply theok at

polls, it looks like an election for hillary clinton to lose, but the clearest signal will calm towards the end of this month when the debate start and we get clarity as to how the public is responding to the stories they are telling. at the onset, i think most people will argue that a donald trump victory is not that great for the markets. clearly and asia, there is a bit of anxiety of a donald trump victory with all that he said tradewanting to act on and so forth, leading people to believe that protectionism might a possiblesible -- certainty once he wins. fear will bereater ofhe wins, the perception

what he might do to trade could impact emerging markets more than u.s. markets. where are you looking in this part of the world for value, etc.? do have a preference for china and india. would avoide european equities, partly because with what i said earlier about the political calendar in the next few months come on top of that, when more of this certainty we want to look for in briggs it appears, we would probably start to have a repricing of markets, because with the way european markets have rebounded off rags it, it seems most people have forgotten about the execution risks especially of the brexit itself, so we avoid european equities,

but there will be some value to be found in european credit on top of the emerging market credit i spoke about. rishaad: great talking to you. have a great weekend. to take a break. coming up, iron ore, a winning streak turning to rust. what is behind the change in fortunes? ♪

rishaad: iron ore has had a stellar run this year, but things are petering out, the longest losing streak in more than five months and the possibility of a slump below $50. what has happened and turned sentiment? said, in the sub wednesday, iron

ore has had consecutive losses. it is not a surprise with holidays in asia today. this is probably two factors. one is a long-term factor, people weighing the sustainability of the improved demand in china. has boostedulus infrastructure building and the construction sector, and that has given a boost to steal. people are weighing the prospects of that to continue. second and more immediate factor has been the surgeon the price of the ingredient you need when you are making iron ore. is as prices surge, steel meals and china have been trying to recover some of that margin that they lost on the other side. hort term,d be s

but medium and long-term is the story of chinese demand. what are producers telling us about plans for new supply here? >> there are really two critical projects on the horizon, one in brazil. this week, they said that that will add supply at a slower pace than previously thought. they see that ramping up over four years. total to theess in export market. similar news in australia, it has also said that it sees its target for production rising into next year rather than this year, so also a slower pace. some positive signals on the supply side. there.: nice one the fall in iron ore prices after a stellar start to the year. onll ahead right here "trending business", on track

for japan's biggest share sale this year. more detail on the ipo for kyushu rail. this is bloomberg. ♪

♪ ishaad: united states officially joining the global recall of samsung's note seven smartphone, whose batteries can overheat and explode. least 70 phones are known to have caused fires in the states. the recall will cost at least $1 billion. hanjin shipping's efforts to unload vessels is not working as planned. winning protection from

creditors, but lawyers say the situation dockside is uncertain. they are being asked to hey in cash for the release of goods. to reach deeper into china by joining with union pay as it searches for a better position in cross-border e-commerce. it will appeal to european merchants trying to reach chinese shoppers. consumers there's been $120 billion on cross-border year.ctions this investors watching the boj, policymakers do to release their comprehensive review. people are looking at this boj meeting next week not only to watch for further easing, but also to see the outcome of that comprehensive review of monetary policy. what might we see as a result of

all that? one of the things that analysts are telling us is that a commitment by the boj to continue with easing programs over the prolonged time would be a logical outcome of that review. they may be able to shakeup inflation expectations for the future, so that is one idea that analysts think we could see from this review, which is very anticipated. absolutely. how will this, well, manage inflation expectations? >> right. the 2% inflation target is far off, so the goal would be in doing what we think may happen with that review would be to say to consumers and businesses that the boj will continue to be in the market and ontog bonds and holding

them, so even after perhaps the 2% inflation target is reached, therefore shaking up inflation expectations that way. absolutely. we have reports and have seen some evidence of people saying that there is a split on the boj board over monetary policy. what could this mean as we move ahead? >> right. well, we won't know the outcome and tell we see those votes next wednesday, but at this point, it howertainly debatable about to ease. our survey has shown that there as anticipation for further easing, but how they go about that is the question and the question of negative rates unpopular with banks and have created confusion with the a placewhether that is they continue to go, lowering the negative rate or trying new things, so that is what the debate seems to be about at this

point. muchad: thank you very indeed for that. right, we moved to mitsubishi ..s lenders saying the policy will squeeze lending income as low rates,t rates -- low negative rates, net interest the presidenter and ceo insists that the two banks are not in conflict. a quick look at japanese banks and how they are doing today. juliette: those japanese lenders are doing quite well. it has been a tough week as we hear conflicting reports into what the boj will do when it

meets next week. journal saying that according to their sources that the boj is split as to whether it will buy more government bonds or push further into negative interest rate territory, but finally some relief for those big banks under pressure. the nikkei trading higher, up up .4%.n the philippines coming online. and hong kong it is lower by .4%, but some good moves coming through in singapore. are seeing the singapore straits times up .8%. good to see a rebound in new zealand as well. australia looking good. region,performer in the as you would expect, with a rebound in the energy sector. some other stocks we are watching in the region, particularly and australia.

antos up 5%. commonwealth bank trading higher. the banks will meet to discuss financial regulations in october. qantas airlines under pressure, although it has announced a new to japan aselbourne it sees more demand for japanese services. a quick look, some more japanese stocks. yesterday, a strong loss -- a strong gain, coming off a little, down by 1%, lawson. generally we are seeing some good lying coming through across

the region today, so finally some relief after what has been a tough week for asian markets. remain: japan does attractive for the second biggest share sale for kyushu rail. is drawing interest for its property and retail operations. the sale would free it from state control. why is the government selling this company? well, the original plan for this all goes back about 30 years. all the train makers owned by the government were in one group called japan railways. in 1987, the government split them up into seven groups. its plan was to privatize each one of them. they privatize the first three in the 1990's, and this will be the fourth one. put them inng, they

the roma shareholders. they have gone in and cut costs and increased trains and put on faster trains to read to give you -- trains. to give you an example, jr central, people did not see it as a growth company, but now it has an operating margin of 43%. for the past three years, it has topped apple in its operating margin. rishaad: right, well, what is attractive about this company compared with other train operators? , one thing it lacks is that it is away from the major population centers. aroundin operators megacities have millions and millions of people with a lot of passengers. does not have that. it is on japan's third-largest

island, so what they have done is focus on real estate. one thing in japan that stands out is that real estate is most expensive new train stations. has is what kyushu rail capitalized on by building hotels, shopping centers, restaurants, and that's where it gets most of its profit. you a lot.ank they're in tokyo. a quick look at some other stories. the british government approved a controversial plan for two new china-backed nuclear power stations. theresa may decided to review the project in july after concerns that beijing's involvement might be a security risk. the reactors will be built over 10 years. they will have a total lifetime cost of $30 billion -- 30 billion pounds. reviewingcarrier options for its stake in a

malaysian mobile operator. it is facing stiff competition. the review is at an early stage. techank working on a fin venture. the business is expected to launch in the first half of next year. spotify seeking to renew talks with record labels to nail down long-term licensing deals as it considers an ipo. it is said to be considering limiting new releases. in return, spotify would pay a

low percentage of revenue to the labels. the company has declined to comment. virtual reality making headlines at the tokyo game show with the sony headset to be released, one of several companies that have made a significant push into virtual reality recently. our asia tech reporter checked out some of the kit at the show. vr is what is hot. companya taiwanese does not have to be a solitary experience. you can already experience an oculusality with rift and the comfort of your own home. with a little bit of gear, you can take it to a whole new level. next door, we have a brand-new company on the scene. it is a startup backed by softbank. that thisecial is

headset tracks the motion of your pupils. this helps to reduce motion sickness and increase the quality of the experience as well as allowing you to interact with the world by looking at things. sony will release its playstation vr. at $400, the most affordable headset on the market good with 's million playstation 4 already sold, sony is guaranteed to be the player that will take vr mainstream. 046 is said to be year virtual reality, but this is an industry hitting the ground running. it is garrett to be in the headlines for months to come. it is guaranteed to be in the headlines for months to come. rishaad: we have to take a

break. asking -- this is bloomberg. ♪

a look atet's have business flash headlines. donald trump plans to overall and the biggest hiring binge ever in the united states, aiming for 25 million new jobs in the next 10 years, three times as many created since the financial crisis. number ofy that the unemployed workers is less than 8 million. apple fans in the asia-pacific are the first to get their hands on the new iphone seven. apple is not releasing initial sales numbers, but said the

larger iphone seven plus sold out. apple to return to growth in the fourth quarter, it needs to ship more than 48 million units. at iron ore drag down. 2%.nue falling close to it is due to the waning popularity of older products. cloud business surging 59% in the last quarter. competitiong tough in the cloud from rivals such as microsoft and salesforce. sold anth, a billionaire stake in crowne resorts, reducing his interest to less than 50%. we can find out what else is in his pipeline. we are with the chairman, robert rankin. take it away. itthat restructuring, well,

is to position the company for the next decade or so. credit agencies not too happy with the restructuring. it is putting crown resorts on negative watch. what you make of their reaction? response to a corporate restructuring of this size and scale and complexity, it would be quite normal for the credit agencies to put it on watch. we are in active discussions with the credit agencies. we know them well. we have said publicly that we are committed to an investment grade rating and will work through these discussions with the agencies and regulators and other stakeholders. >> is the reason to be concerned about cash flow? reason to beis no concerned. the aggregate cash flow of the business will not change. we are not selling off the business. the aggregate cash flow will remain the same. we think the two

companies will be easier to understand by investors, and the market has said that to us and the stock is performed well since the announcement of the merger. is spinning off its overseas ventures, including macau. what is the thinking behind that? is it the right time given that revenue out of macau grows for the first time in 27 months? >> august was a good month in macau. i think the key point is we are not selling macau. we are not selling our international assets. we are separating our international assets from our domestic assets. rishaad: it is to reduce the drag? toknow, to allow people correctly, independently, and separately valued those two assets. macau has been a tremendous asset, but a volatile investment. macau is a volatile market for the whole industry. it has grown very quickly.

declinesd 20 months of , and we think that separation for our shareholders will help them look at these assets on their own together with the portfolio.al shareholders have voted clearly and the stock has performed well. how much clarity is there in the recovery in macau? >> i would not say there is clarity, but the signs are good. we are very confident about the long-term future for macau. august was the first month where we have seen increases, modest. we are cautiously optimistic. we are very optimistic about the optimisticcautiously about the near-term. we have seen new properties come on board as well. we are looking for demand to grow little bit. about aave talked

potential ipo in your property trust. is that likely to happen, how soon, and what is holding it back? d we have announced the e-merger. it's not unusual for these processes to take 6-9 months. are on schedule with the regulators and agencies. it does take time. we think it will all come together in the timeframe we indicated. >> by the middle of next year? ofyeah, in the first half next year, and hopefully earlier. has been valued at -- is that a safe amount? >> australian dollar is very safe. have not formally announced which properties would be included in a reit vehicle.

people are speculating it would be the non-gaming hotel components. these are great assets well valued by the market, but we have not agreed which assets of the portfolio will be included. we have not formally announce the final details of the reit. we think it would be well received if it did occur. the market is looking for quality assets with yield. hotels there are fantastic. >> you bought vacant land in vegas for development. we have heard very little about it and have no details. shed some light on it. >> vacant land, yes, but what a great position. the piece of land that james and the partners bought is adjacent ynn's property. optimistic about the

long-term future for vegas. we are excited for our plans, but we are in no rush. >> why not? withinave a fair bit on our existing portfolio. >> are you looking for new investments? right, theto do it property right, the financing package right. we want to do it right in a timely and orderly way. we are working through the right financing package and will come back to the market when we have completed that. >> we are looking forward to that. rishaad: thanks a lot for that. an international view, a special report on why some chinese students are enrolling at ex-pat schools. ♪

is "trending

from hong kong, streaming on bloomberg.com as well and your mobile device. international schools are often the only realistic choice for an education in a foreign country, but increasingly chinese parents are enrolling their children in the schools. paul allen has a look at the reason why. ♪ morning assembling lays on an impressive cultural mashup. .he school is australian the ceremony and uniform is deliberately chinese. there are many locals, too, parents turning away from traditional chinese schools and paying $28,000 a year in fees. and by fart thing the most important for the older students is the pathway to overseas universities. gettingfollowed by

their kids to be able to speak english well and naturally. thirdly, a different type of pedagogy. one grueling exam looms large for chinese students, the college entrance exam. result can condemn an otherwisstrong student to a lower level university. for many chinese parents, removing such crushing expectation is part of the appeal of an international school. >> he thinks that by playing with the kids at his age at international schools, it will be enriching and characteristic for him in terms of developing interests. he will be under less pressure than students at traditional chinese schools. by taking these elements into consideration, i chose the place for him to study. paul: for other parents, the chinese way is the only way.

college entrance her is a challenge to psychological quality, because there is a great pressure on kids. now attend00 chinese international schools across part of aandful, but growing minority trying out a different approach. all right, chinese sending their kids to international schools. formula one returning to this part of the world, the singapore grand prix, final preparations underway. practice is little later on today. race itself is on sunday. singapore is unique on the grand prix calendar and the fact that it takes place at night around the marina. lewis hamilton leading his teammate by two points. all to play for their.

right, looking at what we have coming up on "trending business" , some song taking a blow as the u.s. takes action. we will ask how the company can contain the damage. ♪

♪ >> from our studios in new york city, this is "charlie rose." andrew: good evening, i'm andrew ross sorkin of "the new york times." it is my privilege to sit in for charlie rose tonight who is on assignment. the media's coverage of the president shall campaign has been a topic of heightened interest throughout the primary and election season. donald trump's handling of the press was a decisive factor in his path to securing the republican nomination. this week, hillary clinton's health is the latest source of rampant speculation after a delay in revealing she had pneumonia. brian skelter is the host of cnn's "reliable sources." it examines the week's top media