than anywhere else in asia. the u.s.-singapore free trade agreement has been described as the united states' most successful f.t.a. globally. since the f.t.a. took effect in 2004 u.s. exports have increased over 50%. singapore was one of the p-4 who first initiated foreign t.p.p. which now includes eight additional countries, including the united states. i don't want to steal too much thunder but safe to say t.p.p. would not have existed if it were not for singapore. beyond the economic tides the relationship has had an important security and military dimension. singapore air force pilots train in the united states and u.s. combat ships rotate through singapore. as a result of the strong political, economic and defense ties, singapore has served as an anchor for the united states pivot to asia. now it's my honor to introduce the president and c.e.o. of the u.s. chamber of commerce mr. tom donahue. tom has led the chamber almost 20 years and as a result of his leadership the chamber has played a dominant role in defending

asia has tried both. the world has tried both. 1930's, with a very difficult international environment, you had a rivalry with japan which led to war. war, because america was open and because you promoted trade and you encouraged investment and other countries to open up, the asia-pacific has been peaceful. if over the next 50 years you continue to work toward interdependence and cooperation and neutral prosperity, we can say these have been peaceful years and we have made further progress together. if you go in the opposite direction and you decide that middle.l split down the i think that's a very different world. one of the reasons why you don't have a manageable relationship with china now is because you have trade. it is mutually that official. both sides want to maintain that relationship. if you didn't, it would be like the soviet union during the cold war. to find ways to work together, but it's much harder. the tpp does not include china. it points the direction toward the world. direction,the w

and to asia. ofis an integral component the u.s. rebalance to asia.rt from economic benefits, trade and market access, it is vital from a strategic point of view and a strong signal of the u.s. commitment to continue its deep engagement in the region. we appreciate the efforts of the president and his team to push for the tpp, which grew from a now, the tpp will encompass 40% of the worlds population and one third of the world's gdp. we are near the finish line, and we hope that the countries, particularly the u.s., will be able to ratified the tpp as soon as possible. finally, we discussed our partnership in tackling global challenges like counterterrorism. it is a problem for all countries. every day, you read of new attacks somewhere. america, europe, the middle east, closer to home. we in southeast asia are concerned about this, because the terrorists are active in many countries in the region. several hundred, perhaps a thousand from southeast asia are in the middle east fighting isis and we have witnessed attacks in both indonesia and malaysia n

what is your message to your successor to engage singapore, southeast asia, the asia-pacific? prime minister lee: with respect -- president obama: with respect to tpp, i thought prime minister lee's points were right on target. this is an economic agreement. what we have learned in history is you can't separate economics and issues and security issues. the prime minister is right. we have benefited from a norm us enormous peace and prosperity around the world. we have had an unprecedented time where the great powers were not engaged in conflict. this was in part as a growing interdependence. if you think about those parts of the world where we still see conflict, where we still see high levels of violence, they are places that are less integrated into the world economy. there is a reason for that. there is a powerful economic case, a bread-and-butter case about why this is good for american workers. it's ultimately good for american wages if it's structured properly. i think it's important for people to recognize that the alternative is not tpp or some imaginary circumstance i

the east asia summit with leaders of ten members of the association and full east asia summit and amy will talk about that and there will be bilateral with turkey and other leaders including from europe, vladimir putin will address what issues might come up. this being the last trip i received a lot of questions how to think about president obama's legacy, and the history of us strategy, and good starting stuff for, i have been thinking a lot about where we are in the art of history of american engagement with asia. let me start with opening thoughts on the obama legacy, with the cosby, most historians would say it is too early to make such a judgment but reality is for decades afterward, let me make a stab at that. after 7 years there is more about president obama's policy, it is not a radical departure from what clinton and bush did, neither is it a bold discontinuity for departure from what previous presidents did. the first to declare themselves the first pacific president was richard nixon who served in the pacific, the governor general of the philippines, herbert hoover had been

you opened your markets to friends in asia and rest of the world too, fueling in asia, the east asian economic boom. and it was growth through trade and not through war that made the difference and these countries became more economically interdependent, conflict became a remote and unattractive option. today america has a unique opportunity to anchor its engagement in the asia-pacific with the tpp you know the facts but they're still worth repeating. there are 12 parties in the tpp. we represent 40% of global gdp a third of world trade, 800 million people of one market. the tpp will be an economic game-changer for the u.s. because improved market access will mean cheaper products for consumers, more exports for manufacturers. incorporate in the tpp human rights, intellectual property protection, safeguards for labor and environment. there will be strong standards to support innovation and benefit many u.s. technology giants but those are just the economic benefits. there are strategic, significance in the tpp too because the tpp is vital to america's engagement in the asia-pacific. i

in that asia can depend on america. tppratification of the therefore would be a clear statement of your commitment and confidence of our region. here who haveyou a vested interest in the success of the tpp and in america's friendship and cooperation and trade with asia will lend your voice is to support this. 's hope to create and sustain the current world order and international rules which we all have a say in, no other country has economic capacity, the political strength where the soft power to play this role. it is america's possibility -- responsibility. of skippable at the pinnacle the power to continue to chart the course ahead for the world. thank you very much. [applause] >> thank you very much. welcome the honorable ambassador susan swap to moderate the q and a. [applause] >> thank you very much. that was terrific. as expected. welcome again. the business council, the chamber, the secretary, let me add that thank you that everyone else has added . we are delighted to see here. i have to tell you, i first met

on that, focus southeast asia. historians will say, if they look at the so-called pipit, the most significant legacy for the to beent is going engagement of southeast asia. president obama had a lot to do with this. president bush decided not president obama, and maybe matt somepeak to this, after debate, decided to join east asia summit. secretaries clinton and kerry have attended every meeting of the foreign ministers meeting in asia. ther predecessors in clinton and bush administrations missed a number of them. this is probably the most deliberative and sustain engagement and southeast asia since the vietnam war. subsequent presidents have had spurts of energy, but no sustain comprehensive approach. i think the obama administration will observe some rightful credit for reconnecting to intheast asia and opening up a sustained way and engagement strategy. i am sure that will be part of the celebration on this trip. the east asia summit and the u.s. all the in summit -- and the u.s. summit will show that. i think a

what is your message to your successor to engage singapore, southeast asia, the asia-pacific? prime minister lee: with respect -- president obama: with respect to tpp, i thought prime minister lee's points were right on target. this is an economic agreement. what we have learned in history is you can't separate economics and issues and security issues. the prime minister is right. we have benefited from a norm us enormous peace and prosperity around the world. we have had an unprecedented time where the great powers were not engaged in conflict. this was in part as a growing interdependence. if you think about those parts of the world where we still see conflict, where we still see high levels of violence, they are places that are less integrated into the world economy. there is a reason for that. there is a powerful economic case, a bread-and-butter case about why this is good for american workers. it's ultimately good for american wages if it's structured properly. i think it's important for people to recognize that the alternative is not tpp or some imaginary circumstance i

this is bloomberg. ♪ ♪ >> this is "daybreak asia".ists are that cuts to our strays cash rate losing impact. let's bring in paul allen from sydney right now. the rba worrying about this loss of effect. the governorlarly who will take over the top job after september. he said lowering the cash rate loses effectiveness when you get close to 1%. we saw an example last week when the thanks failed to pass on the full impact of the cut and raised rates on deposits to protect margins and capital. >> what are the economists saying here? paul: they are quite scathing. i take this one, he takes the prize. he says i believe zero measurable impact will come from the latest cut. another says risk markets expect the reserve bank to cut every time there is a weak cpi read. the reserveexpects bank to look towards unconventional methods that have been flagged in the past, asset purchases and direct intervention on the currency markets. >> is there any sign the government might start reforms? paul: no. although the treasurer reiterated over the weekend

asia is at peace, though tensions are not entirely absent. actions have contributed greatly to this current peace and prosperity. keeping our markets open to trade, deepening your partnership with asean and cooperating with countries in the region to enhance regional security, you have helped create the basis for a peaceful, rules-based regional and international order. president obama, the u.s. rebalanced to asia is unimportant affirmation of a long-standing policy of the united states and has been warmly welcomed by all asean countries. your efforts to build a constructive relationship with china will set the strategic backdrop for the whole region and beyond. you have personally pushed for the trans-pacific partnership, growing a small -- that's singapore started together with chili, bruni and new zealand into what will be a major trading group linking both sides of the pacific. i know that america's many preoccupations both at home and abroad. some americans are anxious and frustrated with economic uncertainty, and the uneven results of g

and asia pacific and japan.hing unique to the way you do business in southeast asia? other places?t to let's talk about indonesia for instance, what about cloud computing there? how much room for growth when it comes to that and what about data security as well and the ongoing discussions you have with the indonesian government? >> great questions. , cloudf all, to remind computing market is growing 16% around the world. insoutheast asia and indonesia, it is growing quickly. we have to be conscious of the environment we operate in. indonesia is one of the fastest-growing mobile user an internet user populations in the world. ish its population size, it a relatively young population that is growing up with digital means, but we have to be aware that there are barriers around infrastructure in certain parts of the country. we are partnering with government and industry to ensure that not only our tech knowledge he is enabling the big localis, but supporting communities and providing that social benefit as well. th

you are watching "daybreak asia." ♪ >> you are watching daybreak asia.now just a few away from the opens in japan, korea, australia. >> let's check in on how commodities rallied after a report that jackson hole. gold ended its longest losing run since may. our next guest says commodity prices will remain volatile. a senior commodity strategist, daniel. what we're looking ahead to about 30 days from now, "-- now, opec and oil. >> it has certainly been so for a successful exercise, talking up the market as they had it i suppose it highlights where they see prices in the market. certainly when we saw the crude oil price fall to around 40 dollars a barrel, there was genuine concern regarding the level and in relation to where they saw the market. clearly talked it up and it has been successful. way the market has performed over the last six months particularly just prior to their last meeting, it is significantly tighter and i think they were genuinely concerned about the prices falling despite that tightening in the market they have seen over the past few m

cannot tolerate a top power in asia. china is not reaching that level of latino but no one knows if china will do so in the future. to sum up, whether china toually have enough power challenge the united states is less important than how such .apacity is interpreted it's very different from the first type. the second is based on one parties judgment about what changes in the other parties material power. in my view, regardless of which , ie of trust is involved lost trust continues to be on the u.s. side if it will reach into a better strategy by those policymakers in washington dc. i will now move over into another section. believe nowing, i action on these issues is an option. that should be considered as tough responses. self restraint, not action or dropper approach will affect different states of patients, so, as you can see from table run -- from table views andifferent mistrust, that's the current u.s. china policy. we need to include ,he area to make adjustments but how can we do this? there are two ways. need to

it's an integral component of america's rebalance to asia. apart from the economic benefits, trade, market access, standard setting, it's also vital from a strategic point of view and a strong signal of the u.s. commitment to continue its deepen gaugement in the region. we greatly appreciate the efforts of the president and his team to push for the tpp which grew from a small fta which singapore started together with chile, brunei and new zealand. now the tpp will be a free trade agreement encompassing 40% of the world's population and one-third of the world's gdp. we're near the finish liern and we hope the countries, particularly the u.s., will be able to ratify the tpp as soon as possible. finally the president and i discussed our partnership in tackling global challenges like counterterrorism. it's a problem for all countries. ref reday in the newspapers you read of new attacks somewhere, america, europe, middle east, closer to home in malaysia. we in southeast asia are very concerned about this, because the terrorists are active in many

in the asia-pacific and beyond. both our nations understand that having secure lanes and sea lanes and open skies, that is what allows for the guarantee of free flow of commerce. having high standard trade agreements that protect worker rights and the environment in intellectual property, that is what drives economic growth and prosperity throughout the region. if we get tpp, i think it is going to advance economic cooperation throughout the world. having strong institutions like asean and international rules and norms, that is how to resolve disputes. we talked about that today in the oval and to ensure a peaceful future for all of the embassies. that is the future that singapore in the united states are working side-by-side to build. that is why we stand together as partners to address the global threat of terrorism and violent extremism, both in the middle east in southeast asia, is again we talked about in the oval today. that is why we are doing more together to address the 21st century challenges, liberation,

and the rest of the asia pacific? thank you. >> well, with respect to tpp, i thought that prime minister lee's points were right on targ target. this is an economic agreement, but what we've learned in history is that you can't separate out economic interests and issues and security issues and interests. and the prime minister is absolutely right. we have benefitted from enormous peace and prosperity around the world. and unprecedented period where the great powers were not engaged in conflict. in part because of borrowi igro interdependence. if you think about those parts of the world where we still see conflict, where we still see high levels of violence, they're typically places that are less integrated into the world economy. and there's a reason for that. so i think there is a powerful economic case, just a basic bread and butter case to be made about why this is good for american workers and good for american exports and ultimately good for american wages, if it's structured properly. but i also think that there

asia is at peace, though tensions are not entirely absent. southeast asia has prospered through countries cooperating peacefully as members of asean. america's endurance, policies, and actions, have contributed greatly to this current peace and prosperity. keeping your market open to trade, deepening your partnership with asean, and cooperating with countries in the region, you have helped create the basis for peaceful, rules-based regional and international order. president obama, the u.s. rebalanced to asia, an important affirmation of a long-standing policy in the united states, has been warmly welcomed by all asean countries. to further build a constructive relationship with china will set a backdrop for the region and beyond. to personally push for the transpacific partnership, together with chile and new zealand, into what will be a major trading group linking both sides of the pacific. i know that america has many preoccupations both at home and abroad. some americans are anxious and frustrated with economic uncertainty and the uneven

we are looking at gains are across asia.are looking at 30% lighter than usual when you compare to what we are used to seeing this time of day. a third of 1% higher for contracts and singapore. earnings in focus in japan. shares of toyota, we will talk about that. announcing a buyback, 1.4 percent of shares, as well as an upgrade from a brokerage. the other big market story is the bond market, yields falling for obvious reasons. level, 10e lowest year .6%. we did a survey on where analyst think this yield will be. .9%, so forecast is take out those revision pencils. u.s. 10 year flat at the moment, 1.5%. basiss tenure down one point. 1.9% for the aussie 10 year. trading is cautious ahead of the jobs report later on. rishaad: virgin australia 2%ning altitude, up by despite a forecast of a loss. people are taking some hard from this. $440 million impairment charge for restructuring, losing old aircraft. this is something we saw qantas result, a hugear impairment, then the market went up. rishaad: we saw them down a little bit w

asia is at peace, though tensions are not entirely absent.a has prospered with countries cooperating peacefully as members of asean. america's endurance, policies, and actions, have contributed greatly to this current peace and prosperity. keeping your market open to trade, deepening your partnership with asean, and cooperating with countries in the region, you have helped create the basis for peaceful, rules-based regional and international order. president obama, the u.s. rebalanced to asia, an important affirmation of a long-standing policy in the united states, has been warmly welcomed by all asean countries. your efforts to further build a constructive relationship with china will set a backdrop for the region and beyond. you have personally pushed for the transpacific partnership, together with chile and new zealand, into what will be a major trading group linking both sides of the pacific. i know that america has many preoccupations both at home and abroad. some americans are anxious and frustrated with economic uncertainty and the une

we in southeast asia are very concerned about this . because the terrorists are active in many countries in the region. thousands from southeast asia and the middle east fighting isis and we have witnessed attacks in both indonesia and malaysia that were melted by isis followers under orders from isis operatives in the middle east to launch attacks in their home countries. so the efforts to counter isis are crucial and that's why singapore is a member of the coalition and we are making a modest contribution to the effort. we're going to be sending a medical team to iraq. we have already been participating with fueling and image interpretation and in other ways and now we are going to send a medical team into iraq. it is also important to fundamentally address the root source of violent extremism in order to counter the underlying ideology of isis as well as to address the issues of extremists and views being propagated by isil so these are major issues we have discussed among our two countries and we look forward to working together and

can you express investment in south asia or in asia in general through u.s.u have to go abroad to do it? jason: as a matter of fact, you can. i would argue that for the average person, that is probably the way they should do it. what investing in equities in the region is really driven a lot by china and emerging markets, china, in my opinion, it will have its macroeconomicm a point of view. it is probably better to take the long-term trend through a u.s. company that is investing for a relatively long period of time, as opposed to china -- pick your spots -- in individual markets, in my opinion. francine: what is your take on chinese currency declining today i go there are concerns that capital outflows from china are increasing once again. renminbi hashinese been on a decreasing trend for some time now. every so often, the narrative gets punctuated by one bank or another telling us it is on because of a seismic shift. we just do not get them. we have occasions last year, a year ago, and where we did have a misstep on the currency in china -- since then, the

in asia, the big markets have done well. up because the biggest components in msci china are the technology stocks. they have done extremely well in the last quarter. rishaad: right. well, there is obviously value here. the valuations in this part of the world are much cheaper. some say they are not cheap, but certainly not expensive at what you advise your clients to do? >> we like emerging markets right now. valuations as you pointed out are cheap. without asia japan, they are trading at a significant discount. from a valuation perspective, they are relatively cheap. seen stabilization and exports, and we think exports could point up in the next couple of quarters. so right now is a good time to start investing in asia. rishaad: great talking to you. have a good one. we have to take a check of the latest business flash headlines. toshiba reporting results. it will post a first corley profit since 2014, $200 million. since 2014, profit $200 million. shares of 4%, people buying. yamaha aiming to make up for byling motorcycle

of it's an integral component of america's rebalance to asia. apart from the economic benefits, trade, market access, standard-setting, it's also vital from a strategic point of view. and a strong signal of the u.s. commitment to continue its deep engagement in the region. we greatly appreciate the efforts of the president and his team to push for the tpp, which grew from a small fta, which singapore started together with chile, brunei and new zealand. and now the tpp will be a free trade agreement, encompassing 40% of the world's population and one-third of the gdp. we are near the finish line and we hope the countries, particularly the u.s., will be able to ratify the tpp as soon as possible. finally, the president and i discussed our partnership in tackling global challenges like counterterrorism. it's a problem for all countries. every day in the newspapers, you read of new attacks somewhere. america, europe, middle east, closer to home in indonesia and malaysia. we in southeast asia are very concerned about this, because the terrorists are

and rest of asia-pacific. thank you. >> well, with respect to tpp i thought that prime minister lee's point were right on target and, this is an economic agreement but what we've learned in history is that you can't separate out economic interests and issues and security issues. and interests and the prime minister is absolutely right. we have benefited from enormous peace and prosperity around the world. an unprecedented period where the great powers were not engaged in conflict, in part because of growing interdependence. if you think about those parts of the world where we still see conflict, where we still see high levels of violence, they're typically places that are less integrated into the world economy and there is a reason for that. so, i think there is a powerful economic case, just a basic bread and butter case to be made why this is good for american workers and good for american exports and ultimately good for american wages, if it is structured properly. but i also think that there is a strong se

and that asia can depend on america. tpp,ratification of the therefore, will be a clear statement of your commitment and confidence in our region. of you here who have a vested interest in the success of the tpp and in america's friendship and cooperation and trade with them -- with asia -- will lend your voice is to support us. america has helped to create and sustain the current world order and the international rules which we all have in all countries. no other country has the economic capacity, political strength, or the soft power to play this role. responsibility, preeminentle as the global power. thank you very much. [applause] >> mr. prime minister, thank you very much. please join me in welcoming susan schwab to moderate the q&a. [applause] >> mr. prime minister, thank you very much. that was terrific, as expected. welcome again. on behalf of the business , madam, the chamber secretary, let me add the thank you's that everyone else has added. to tell you, i first met the prime minister when i was and was called

it is on bloomberg.com/asia.na may be able to implement a key change to its stock market, a return of volatile times. can japan ever reach its 2% inflation target? will the fed pulled the trigger this year? we are putting those questions to i.t. markets. ♪ withad: right, checking markets and the positive start today, rebounding from the worst decline in five weeks. great to see you. characterize what is going on right now? what are people looking at? people call it silly season when we have lawyers that are nonexistent half the time. >> they are indeed. end ofo get the back u.s. earnings season, the start of asian earnings season, so it is a little bit tough. markets are grinding to this strange level. seen an interesting pullback over the last week in the u.s.. asia is also in an interesting time as well. you have to be very vigilant. major strategic change. i don't see any major crash or correction in the next 6-12 weeks. there are headwinds, macro issues, geopolitical issues, but a very strange time. comes bac

asia has tried both. the world has tried both. in had the 1930s, with depression, with a very difficult international environment, you went for protectionist policies and off rivalry with japan which led to war. after the war, because america was open, because you promoted trade because you encouraged investments and encouraged other countries to open up, therefore the asia pacific has been peaceful and has been a pax and not at war. if over the next 50 years you continue to work towards interdependence and cooperation and neutral prosperity, then 50 years from now, we can see these have been peaceful years and we have made further progress together. but if you go in the opposite direction, and you decide that this is a big pacific, but is big enough to split it down the middle and one chunk is mine and the other chunk belongs to some of the variations, china or india or japan. i think that's a very different world. one of the reasons why you don't have -- you have a manageable relationship with china now is because you have trade

we are dealing with the stronger dollar here in asia.s well.ped with gold this is bloomberg. ♪ . . to increaseq's move exports despite a global supply -- endw oil run its lon its longest run of gains in four years after baghdad announced plans to boost deliveries 5%. nigeria will also boost output after militants said they will stop attacking oil installations in the niger delta. fined $180 million for violating u.s. anti-money laundering laws. mega international commercial's compliance program was a "hollow shell," regulators say. suspicious transactions between the new york and panama branches related tontly fonseca, the law firm at the center of the panama papers scandal. bitda 50% higher. blue scope reported full-year underlying profit at 222 million dollars, below analyst estimates. they expect higher pricing for the australian stee businessl this year. global news, 24 hours a day, powered by 2600 analysts in 120 countries. this is bloomberg. the latest from the markets right now, going to david ingles for that. david: it's not very

reba lansing, a significant part of peace and stability in asia. how do you envision this continuation proceeding in the next 50 years? and what role do you see singapore playing in this con next? what are some of the hot button issues that we're likely to face as the u.s. continues to reba lance? second question, you mentioned a strong bipartisan link that singapore has had with nine different u.s. presidents from both sides of the political divide, very strong record there. how would we address the u.s. leader, which is more empty globalization, for example, if you see that in november, poth bama, i have a question about the military collaboration which has been a corner stone of the relationship between singapore and the u.s. especially coming heels on the global threat of isis. the potential for military confrontation in the south china sea. how you do see singapore featuring in plans to address this going forward? last question, four more years is a phrase that we've been hearing a little bit in the past few weeks and months and while it's not

yvonne: let's go to our top story in the asia-pacific.esults in australia, the last of the big iron ore miners due to report. blue scope steele is out with an impressive result. do?did they 160%, that's how much profit was up, three hundred $59 million, so a good result. they let us know in july that something special was in the works. they signal profit would be up. up aroundhealthy leg the middle of july, 17% gain and the stock price there. that is not only boosting profit, but turnaround in the steel prices helping them along. net debt, $778 million. the first half of 2017 will be good as well, signaling an increase of 50%. a three cent dividend, and were still waiting on fortis q. sque.rti ,> we will be watching here u.s. second-quarter gdp numbers later this week, which will give us another idea on the economy. however, some question as to whether gdp is still the most relevant measure of growth. get to gdp as a yardstick, i'm curious of what you make of the comments. somethingeminding of that is lost sometimes in the noise. in terms

focused on asia and away we were not when i came along. the countries in asia have noticed. our alliances are stronger. our security arrangements. theher in australia or philippines or singapore. budgets reflect our things likeo maritime security in the region. continuing efforts around building the east asia summit there is ae means kind of day to day interaction around a whole range of issues whether it is disaster relief or public health issues or counterterrorism. those consultations taking place today were not taking place eight years ago. dimension,on every we are in a much stronger influence, engage, and learn from our asian-pacific partners. the things i enjoyed most has the young southeast asian leaders program because whenever i meet with the young people those countries, i am inspired and it makes me very optimistic and what will happen over the next 50 years because of you asked them about the future they want to see they are very much committed to in interdependent world in which people are learning and ideas and engaged in scientific and educational exchange an

. -- in southeast asia. investor -- as well, correct? >> yes. sorry, i was going to ask you what attracted you to them first of all, how much you invested, what you are looking at in that space. >> well, we first invested the and the company three years ago. essentially a smaller company focusing on providing allowing people to book a cab in malaysia. we like him. he has had a lot of passion in the business. and with otherim people's money, we can grow this into a larger regional player. we reached agreement and started investing in the first round. then, the company has had many rounds of financing from softbank another people. terry on, sorry. -- carry on, sorry. , it is goodof uber news for the local players like ourselves toward didi. it shows in this business of shared economy, local knowledge, local capability is important. people like ddr able to di arete in the -- di able to focus on the region and dominate in the sector they are good in. rishaad: you mentioned local knowledge. you also mention antho

have a look at the asia index minus japan.n by .8%, pressure from health care and basic material stocks and telcos under pressure. consumer goods looking stronger, .2%, butstocks up by excluding japan, not such a great day for regional markets. show you the japanese yen. this is the story we have been focusing on on the back of governor kuroda does and janet yellen's comments. it continues to weaken against the dollar, down by .1%. rishaad: we will look at losses at japan's government pension fund. it doesn't fly they could be set for a shopping spree. what is this all about here? we are seeing is that if the pension fund does commit to their targets, we could see them by japanese stocks, which could give a boost to the japanese stock market. according to our calculations, the fund it needs to buy 53 billion dollars of domestic shares in order to meet their allocation target. this. look at they are falling short of their allocation target for japanese stocks and foreign stocks. whichly asset class in they went overboard is wit

inflows into emerging economies in asia. course we had anticipated inflows. i'm curious what you think about what we have seen so far as we close out earnings, whether you think that hawkish tone, judging by what we have seen, whether that hawkish tone is justified. the toneected that will be more hawkish, definitely. first of all, the external environment is more stable than it was a few months ago, so the spillover from brexit has been and stabilization of the chinese economy and the second quarter which gives the fed room to breathe and focus on domestic factors. see recovery and upside surprises in the u.s. economy. yvonne: should we be worried about those chinese numbers? we are expecting the economy to remain stable ahead of the , so noeting in september need to worry for the time being , and that will also influence publishdecision to hawkish minutes. i would like to stress that a more hawkish tone could open the door to another rate hike in the remainder of the year. it is highly unlikely anything will happen before

position in asia. it is essential to our economic strategy of the last 70 years of china to create a champion, a rules-based ordering and that is very important. self-advertising, i am doing a piece today about that. it is critical. was agreed & it does a significant accomplishment. a lot of people think that was impossible. optimistways been an and everything that was supposed to have happened has happened as long as you did not pick a date. i will met pick a date but i think tpp will ultimately be ratified by all 12 members including the united states and i think the president will try to assure leaders in asia that that is his belief in his strong intention and he will work as hard as he can before he leaves office to try to get this ratified. i personally think it's going to be a long shot, as mike said, to get it done, but i think it is possible so i will leave an optimistic note. anything's possible in politics. politicians can decide and say things today that they decide-- they feel differently

in asia, we see central banks cutting. policies still speaks to stable to a strong growth. rishaad: emerging markets -- do they get the same thing? is that a different story altogether? asia, i think it is a little exaggerated. some of the strengths will go away towards the end of the year when the market realizes it was just a small increase. the better story is the high-yield. the world is seeking yield. where can you find it? india. it is a good structural growth story. even though these currencies should weaken, they should still have a return. rishaad: put your hat on as a commodity strategist. looking at gold? if you saw a hike in december, it would be difficult to see gold rally. let's just keep gold where it is. i love it from an insurance asset. holding gold as insurance, absolutely. down the road, we see more strength from asian consumers. i hope that will be helpful. in order for that to achieve, look at all the amounts of futures that we hold in gold. rishaad: final question, we have yuan as aeeing the stable c

and the rest of the asia-pacific. thank you. >> well, with respect to tpp, i thought that prime minister lee's points were right on target. and this is an economic agreement, but what we've learned in history is that you can't separate out economic interests and issues and security issues. and interests. and the prime minister is absolutely right. we have benefited from enormous peace and prosperity around the world. an unprecedented period where the great powers were not engaged in conflict. in part because of growing interdependence. if you think about those parts of the world where we still see conflict, where we still see high levels of violence, there are typically places less integrated into the world economy and there's a reason for that. so -- i think there is a powerful economic case, just a basic bread and butter case to be made about why this is good for american workers and good for american exports, and ultimately good for american wages, if it's structured properly, but i also think that there is a stron

weakness on the shanghai, asia market.market which is closed lower by 1.4%. weakness coming through in asian equities and also in currencies today. the yen down .2% holding at 101. anna: juliette saly with the latest. the picture coming out of the asian session. up next, axa's first half earnings. we speak exclusively to the ceo. this is bloomberg. ♪ manus: we just had the earnings from axa, francis -- france's biggest insurance company. insurance upsetting the claims. thomas, great to see you. you take up the position month. the profit up 4%, a little less than the market anticipated. what are you going to do when you set the chair that's when you sit in the chair. - when you sit in the chair? tell us your vision. thomas: thank you very much. good morning. we are operating in a very challenging environment with low interest rate -- rates. the key issue we have to take is to focus on getting our operating results stable and moving up in a difficult environment. at the same time, transforming the business, because our custo

asia-pacific equities on the way up. closing in on a one-year high.n the yen. oil giving up some of the last session's gains, almost 3%. opec has called an informal meeting in out years next month -- algiers next month. six years of record earnings, the cost involved in shrinking the cost of operations. the outperformance is ringing alarm bells, investors worried shares climbed too far too fast. china,r price numbers in many signs of this overhang disappearing. juliette: bang in line with what the market was looking for. the lowest rate we have seen since january. food prices rising quite significantly. inre was some flooding southern china, that is likely to have boosted inflation prices. thealization following start of the year. ppi has narrowed in july. this is a deflationary territory, but the best rate we have seen. you have to look back to january. the survey looking for -2%. deflationary pressures easing somewhat. see a littleng to bit more stabilization and normalization coming back through. reflecting firmer commodity prices. a very good rate

asia is come, how moving the mountain of muslim wealth. hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. minutes.ng the last the rebound of the three-month low and the prices are within 10% in the markets. the marketfor stabilization next month. ondvcing towards 100 dollar and giving up the currency gain against the dollar. , investors hadck gaine hike and there was a against the currencies in the past month. >> the worst annual results on net loss with shale assets and -- salamat.ishaad cranny.manus there counting down to markets and this is the view of andmarkets with a reading the back part is what we are expecting on services. this

of oure now about 13% operating income in asia.ot going to succeed in asia without seceding in china. -- succeeding in china. francine: thank you. prudential share price of 3.3%. up next, eon posts a loss and write-off billions. we speak to the chief financial officer. this is bloomberg. ♪ markets a little bit flat. let's head back to the bloomberg with nejra cehic. nejra: certainly after yesterday the risk appetite seems a little calmer. we saw a bank of america merrill lynch measure of risk falling to a seven-month low. we saw stocks in the u.s. rally toward a record high. we saw the dax moving to a bull market. it is slipping ever so slightly today, but still up more than 20% from this february low. the stoxx 600 pretty much unchanged for the first time in six days and also dropping from its highest level in seven weeks. we're talking about a little flatness in a market of risk appetite. let me take you to the u.k. guilt markets. we've seen the u.k. 30-year yield fall below 1.3% for the first time ever. we're at 1.307 at the mom

quickly want to show you asia. europe and asia, particularly asia have been pulled higher by wall street's gains on friday. the nikkei was up 2.5% as the yen fell around half a percent earlier today. seema. >> the so-called fear gauge, the volatility index dropping to the lowest level since last august. but this month is historically known for nasty market surprises. using analytics tool can show our -- what might other can you remember if the vix jumped back. they tend to do well with exchange rate of funds. they profit in times of worry according to -- the gold trust and bnd the total bond fund. you can go to cnbc -- the equity market showing us different stories. equity, the investors are confident in the economy. perhaps a bit more bullish. bonds, though, with record low yields says the investor is risk averse. >> in the u.s., we started to move away from them slightly on friday as we got back to better than expected jobs number. japanese emperor akihito making a rare video address to the public today. hinting

the united states is engaging more deeply across all of southeast asia. it is absolutely central to the region's peace and prosperity. both our nations are committed to building a regional order where all nations play by the same rules, resolves disputes peacefully, and cooperates to address regional challenges. thank you very much. >> good morning. i am the white house executive chef. the singapore state dinner is a celebration of america's bounty. all the way from the rich farmlands of california to the waters of the chesapeake, and incidentally for our first course, we are serving our famous maryland crab, which is actually from cambridge, maryland, which is accented with an asian hybrid of citrus, a cross between lime and kumquat. it is also garnished with root festivals, sweet potatoes, yams. for the second course, we want to celebrate summer. we are highlighting local tomatoes from farms in ohio and are also marrying this with some wonderful asian flavors, which is the green papaya and green mango pickle. with a wonderful, tropical, oriental fruit.

chinese tourists are fanning out across the globe, and asia, europe and the u.s., and they want places where they can accommodate a lot of people because they like to travel in groups of family and friends. there's a lot of moving parts there and i do think airbnb ton't given up on trying expand the number of rooms it is also renting out in china. road is littered with u.s. tech companies that have tried and failed in china, whether they got pushed out or left on their own from facebook to twitter to google to now over. should airbnb even be bothering? guest: i think there is always -- roger: i think there is always hope that each company can find a home. i can't speak to what the other opportunities at airbnb are. but there was a time which to have ended about a year and half or two years ago when they started to make the changes, the purchases of routers favoring their own products. but there was a long time where china was getting progressively more open to western companies. where it was a really good place , but now things have slowed down, the rules are changing, and they are cha

anna: stock losses in asia as crude remains bew

that is it for this edition of "asia edge."g markets: middle east" >> the dollar hits a high and ginning yellen indicates a rate hike is on the way. >> jumping in tokyo. and theyides again agree to a freeze production. and its an empty office is the day you do not want to be late. it is when the

asia-pacific markets brought down by the oil slump. crude hovers around $40. table nextins on the month with the labor market gaining strength. follow me on twitter. do not forget to include the #trendingbusiness. china getting underway in about 30 minutes. david looking at what is going on with the markets. david: hong kong canceling the morning trade session. morning session has been canceled. we will get you the updates on what happens in the afternoon session. equity markets looking like this, a lot of these markets are trading just above or at zero. a significant risk day. fiscal stimulus coming out of japan. .ositioning ahead of that when you look at japan, coming off flows of the day. -- off flows of the day. -- off lows of the day. easing, you get a decent bed across some attractive -- decent bid across some attractive sectors. more than the equity markets, have a look at what is happening across yields. we are hitting record lows. the 10-year, there we go, there is your yield. down about four basis points. the aussie dollar, a little bit on the back f