Lets go straight to the markets in asia. New zealand starting things off, the Australian Dollar seeing some weakness. We did see it surge a little bit yesterday after the governor talked about needing some more depreciation. We are counting down to the opens in japan, australia, and south korea. In japan, we are expecting industrial output numbers. Nikkei down yesterday about. 1 . Futures unchanged, but pointing to a possible higher open. We saw a slide in the yen. With broad Dollar Strength at the fmoc statement. A closed market to tell you about in thailand. A national holiday, so no trading. In the u. S. , stocks rose after the fed indicated it remains on track to raise rates. Policymakers see more improvement in the job market but declined to give a clear signal on when the rate hike will happen. Lets go to su keenan in new york. Good morning. Kind of vague on the timing. Su the reaction is what is fascinating. Believesan sachs ceo the market will have a shock in reaction to this rate hike. He spoke in a joint interview with Michael Bloomberg about china and president ial candidates. He is predicting a long growth for the u. S. Economy. But get ready, he says. I think it will be jarring when we see an Interest Rate hike. We have not had one for some time. People get out the smelling salts and take a sniff and recover. When we have the first hike, the fed has suggested it will be conservative at the trajectory of future hikes. Su statements on jobs and the housing markets are improving, but no real timing on the liftoff. No one on wall street is missing the message. Rate hikes are coming. The statement is setting preconditions of a rate hike. I think we understand it is going to be a slow, measured cycle. Nonetheless, the first move always has some effect on the market. The fact the curve is steep and stocks are up, it is surprising to me. Su one reason stocks may have rallied his there was nothing in the statement that conflicts with the view hikes are coming at the end of the year. One economist believes there will be a jolt, but we will get over it. The market is not fully pricing in september. But i think it will be a shortlived jolt. She is doing it in a measured fashion. They will raise rates slowly. She has been clear in telegraphing that. Su she says of september. The futures market is not that sure. 40 change is what the futures market is telling us, 40 chance, i should say, that they will raise rates in september. Yvonne we will see the reaction. Su keenan, thanks so much. Lets talk about china. A remarkable rally on wednesday, snapping a threeday losing streak. Lets bring in juliet sully. The last 90 minutes, we saw a surge of 5 . What caused the turnaround . A lot of speculation there was state support. The rise in bluetooth stocks suggests intervention. We did see a little waning retail investment. There was a big gain coming through. Line at lunchat break, but 90 minutes after, a lot of the asian markets were closed. We started to see that coming through. A lot of investors are saying, there could be state support. Months. Turnover in two year today, the market is still looking strong. Yvonne we heard some encouraging words from the head of the imf. She was really pointing to the fact that, longterm, the market is strong. She said no one should be surprised by the efforts the government has taken. The imf has asked china to unwind slowly. She said it is a longstanding market. Lets have a listen to what she said. Believe the chinese economy is resilient. Strong enough to withstand that kind of significant variation. I guess she has faith in the overall possibilities and prospects. Asked, again, i have what do we expect . I think the only thing we can expect is volatility. When you look at what is happening, it is always in the last 90 minutes whether or not we are seeing buying. At this point, futures suggesting positive stocks. Ashares have been doing well in the hong kong market. It was the first time in four sessions the market has moved higher. It is pointing to further gains, but anybodys guess. Yvonne thank you so much. ,hecking headlines this morning profits have beaten analyst predictions, surging to 1. 2 billion. Helped offset. S. A slowdown in china. Helped nissans outpace honda and gm. However, sales were trailing in the first half. Our sales have been growing as the market gains strength. That helps our rivals. We would like to increase sales of models like the maixma and titan. Helpinga weaker yen nintendo return a surprise 67 million. Figures were lifted by its new splatoon game. These were the last results overseen by satoru owata. Net income rose to 500 million. Fees were up by a quarter, offsetting a drop in trading income. Half the prophet came from retail operations. Lets talk about more earnings. Facebook has posted betterthanexpected sales overshadowed by a surge in spending. Lets go to sarah frier, live from sandra and scope. San francisco. What are the numbers . Estimates,ng beat top and bottom line. But investors were hoping for more. People are used to facebook blowing past estimates. Spending was still an issue. They increased spending on infrastructure, rmb. R d. They have warned that 2015 will be like this. But during the call, we heard investors pressing for details about what facebook has planned for newer initiatives. Yvonne we have always talked about how this is an and investment year. What did you gauge from the Earnings Call . My impression is that zuckerberg is asking for patience. Messenger,t instagram, whatsapp, may not be at full monetization until they hit one billion users, but on the call, we did not get an update on user numbers. We heard zuckerberg say he has confidence in these things. They are steadily growing. One day, they will make something out of them, but it will take time. Yvonne they talk about this robust ad business and growing mobile users. How did they portray their opportunities moving forward . A lot of talk about video advertising. They want to make sure that everything on facebook is immersive. They have been moving into ecommerce in thinking about advertising in a more actionable way. They have products that make it easier for marketers to advertise across the internet. Are and knows who you can target you on various mobile applications, no matter where you are or what device you are using. They hope that gives them a leg up in mobile advertising. Yvonne sarah frier, joining us from San Francisco on facebook earnings. Thank you. Nn resorts reported a 72 drop in profit less quarter as bettin g fell in las vegas and macau. Net income missed estimates. Shrankincome in macau 36 in june, extending a slump caused by chinas drive against corruption. Saw an advance as net income climbed. Garuda announced a plan earlier to buy 60 boeing planes. We will have more on the results chieforning with garudas executive on asia edge at 11 30. Coming up, the u. S. Moves closer to a rate hike. But when . We asked a former fed governor. Yvonne checking headlines around the world, senior officials from 12 asiapacific nation have launched talks to hammer out a trade deal that has been in the works for six years. U. S. Trade representative Michael Froman said delegates had to confront tough political issues including patents and exports. Ability ofted the the u. S. And japan to broker an accord. From afghanistan, reports say a leader of the taliban is dead, said to have died two years ago. 2001. The insurgency in isis not known why kabul releasing the information now. His death may complicate peace talks with the taliban. The hunter who helped an american tourist killed cecil the lion has been charged in zimbabwe. Cecil was protected by law, but police say he and a local farmer used bait to lure him off the area. The killer, minnesota dentist walter palmer, has not been charged. She believed the hunt was legal and did not know cecil was protected. Social networking site neighbor has released secondquarter operating profit. Falling 12 on year. We will continue to look at the stock as trading comes through in korea in just half an hour or so. Shares got a boost from strong earnings and the feds bullishness on a labor and housing markets. The s p 500 rose. 75 . The dollar close to a fourmonth high on anticipation of higher Interest Rates. Energy stocks rallying as crude Oil Continues to climb. Petroleum up 4 Anadarko Petroleum up 4 . Twitter shares falling nearly 15 . Lets get more on what that with randy kroszner, a professor at the university of chicago and former fed governor. I have to get your intake on this statement. It is the first time we will see rates rise this year. What do you think . Any surprises . Not many surprises. They slightly upgraded the Economic Situation and outlook, what not enough to make any promises about moving in september. If they will move, they have to have a positive view of the economic outlook. But there is still a little uncertainty about inflation. Yvonne lets talk about inflation. They did talk about how they expected to rise gradually towards 2 in the mediumterm. But we have a commodites rout, china slowing down. That story still remains. What do you see coming through for inflation in the u. S. . Inflation has been quite low recently and has either been moving downward because of lower Commodity Prices or the volatile food and energy sectors. It is still below the fed target of 2 . With china slowing and concerns about china going forward, Commodity Prices have been lower than they have been. This puts downward pressure on inflation and might make the fed delay a little bit and not move in september. Yvonne further to fall in commodities is what most are expecting. How big of a question is china . That is really the key to commodities and of the source of deflationary pressure. If china is experiencing a blip but it does not have a bigger impact on overall demand for iron ore and copper, we can just move along. But there is a lot of uncertainty about how much the real economy will be slowing. We just do not know right now. That might lead the fed to wait. Yvonne will it be a way for a sooner than later liftoff . What do you think . Will the consensus be in line with that . They left all oceans options open in the statement, but not so much that they made it seem like they had to move in september. We are not seeing wage pressure in the u. S. Commodity prices seem lower than higher. There is no pressure on september, but they may want to get started. Employmenting two report, one in august, one in september, that will tell us about the labor market situation. We will see how things evolve with respect to china and commodities, whether pressures are falling off or maintaining steadiness. Yvonne maybe get the ball rolling in september. What happens after could be the big question. Will it be another one in december or do we wait until january or march . That is really key. So many people focused on initial liftoff. 25 is not going to have much impact on the economy itself. But what does this mean for where Interest Rates go . If it means they will go higher rapidly, that can have a negative impact. I think the fed is trying to make it clear that when they raise rates, they will raise them a bit and take a pause. Theyey move in september, will see what the Market Reaction is, what the economic reaction is, before they decide on september. Yvonne all right. They are keeping their options open. Randy kroszner, thank you. Former fed governor and professor at university of chicago. Coming up, the Singapore Stock Exchange goes from strength to strength and is looking to expand. We dive into the numbers after the short break. Newne singapore exchanges chief is open to making acquisitions and exploring growth opportunities. The exchange has struggled with stagnant trading volumes compared to rivals like hong kong. Amin. Go to haslinda what do we know about the strategy . It is about exploring the new growth engines. The ceo says if there are opportunities, they will evaluate to see if they fit with strategy. This is his first public appearance after releasing results of the market last night. What he said is interesting. Overredecessor try to take asx in 2011 as part of the growth strategy. He failed because the Australian Government did not think a takeover was in the countrys best interest. But failure left a smear, it is not hindering lo from exploring the idea. As part of the strategy, he says sgx will focus on its own products and services. Truth be told, it has been tough for sgx and will continue to be challenging. Its equity trading business has yet to recover from the financial crisis. Average trading values lagging well below precrisis. That means a lot more work. Fourthquarter results released last night are up 24 , but still, a long way to go. Yvonne what about the outlook for ipos . What can we expect . There have only been six ipos so far this year compared to 100 in hong kong. It has been tough. Sgx wants to double the value of companies listed. Theyre looking at india and china. It sounds good, but it looks ambitious by karen performance current performance. Markets in asia are all competing for listings. Chinese investors were opening investment accounts at record pace to push valuations to multiyear highs. Wants to get to where it wants to be, it has to work on its hardline. Yvonne thank you so much. We will come back to you in the next hour, where you will be speaking with exchanges chief financial officer. 10 10 if you are watching in the name. Hermes has been told to rename is bag by the actress it named after. Jane birkin decried the rule methods to make the back. Will penalize any breach of its Animal Welfare code. The back accounts for 15 of sales. How do you send a yvonne it is 7 30 in hong kong, half an hour from trading in australia, japan, and south korea. You are watching first up. Top stories the fed market continues to improve, keeping policy makers on track for a rate hike this year. But no clear signal on when that will happen. There needs to be further improvement in jobs and confidence inflation will reach a 2 target in the mediumterm. The fed will get together again in september. Is imf says chinas economy Strong Enough to whether the stock rout. Christine lagarde addressed volatility on an online conference in washington and said they have appreciated significantly in the past year despite the composite dropping 27 on june 12. We believe the chinese economy is resilient and Strong Enough to withstand that significant variation in the market. Spendingacebooks spree overshadowed betterthanexpected earnings. Revenue rose 40 in the last quarter, just over 4 billion. Increased hiring and investments on mobile apps sent costs surging 80 . Shares are falling after hours, down 3 . Checking in on markets in asia, it looks like we continue to see some green after the u. S. Saw positive results. Statement signaling a rate hike in september. New Zealand Dollar weakening to . 66 u. S. Counting down to the opens in japan, australia, and korea. Japan expecting to see a rise of. 3 . We will see how that goes. Nikkei closing out. 1 down yesterday. Futures up slightly, pointing to a higher open. Dollarthe yen weakening. Lets go to korea. The credit worthiness of companies is taking a hit as the export economy falters. Korea ratings have slashed Credit Scores of thousands of borrowers. Lets bring in shery ahn. How bad is the situation in korea . Shery the economy is facing a triple whammy. A slowing china is weakening demand for exports. A weakening yen making korean products less competitive against japanese rivals. And at the recent outbreak of mers has dampened consumer demands. Firms have been deadly hit. Thea ratings just cut Credit Scores of 40 borrowers and raised the rating of five firms, the worst ratio since 1999. Korea ratings expects to see the drama word trend downward trend continue. Outlookse is the credit for firms, in the negative for 24 firms, positive for only nine. Yvonne exports really stalling. What are the industrys most hurt . Shery we are seeing the impact across 1. 5 trillion in south koreas economy. The biggest hit industry is shipbuilding, oil refining and to steal. Steel. Three biggest shipbuilders were all downgraded this year. Shipping accounts for 8. 5 of the countrys total exports. Yvonne a lot of the companies feeling pressure. Samsung has earnings out later today. What should we expect . Shery it does not look great for samsung right now. Seven consecutive quarters of profit drops. Exports dropping, the smartphone business being hit as they tried to lure customers away from apple. The Smartphone Market share is dropping since the beginning of last year. We expect secondquarter earnings. We had an indication earlier this month that the profits trailed estimates. S6 and should not winning back lost shares from apples iphone. We will see how they do in a couple of hours. Yvonne s6 really did fail to meet expectations. The problems at the factories put a damper on the company. Time for a look at corporate stories we are following. Hutchison said close to be combining operations in italy, creating the largest carrier with 6 billion customers with wi mpelcom. Were upns abrs slightly. Elon musk looking to boost tesla sales with help from his friends. The company will offer discounts when a customer offers a lift to a friend. Syone ordering a new model before the end of october will get 1000 off the price. The current owner will get a discount for a new car or accessories. Microsoft has released its latest operating system without much fanfare. Windows 10 quietly rolled out on wednesday. The company told shareholders it will reach one billion users in three years, the fastest adoption ever. Microsoft bypass windows nine was heavilys 8 criticized after its launch in 20 to 12. It is the best upgrade ever. We are providing it free to all windows 7 users on the planet. It is about bringing the best of windows across all devices with one experience, one platform. Those are some of the top corporate headlines this morning. I am and krueger. Chat, looking at fire which lets users send messages even if there is no Internet Connection or mobile network. Was popular during the occupy hong kong protests as networks became congested. It is being regarded as an off the grid private messaging service. Joining us is the cofounder and ceo, misha. Very exciting day for you guys. Basically, a private messaging app to talk without a network carrier. Sounds fascinating. Explain how it works. Is bigtime because we launched private messaging. I. M, and today it is off the grid messaging. That means if you do not have access, you can still send and receive messages. Yvonne how does that work . It is kind of like tethering, i guess. Can you explain the technology . Users do not have to do anything. Firechat, likell any messaging app. You do not have a network or data plan, it goes to other smartphones. Yvonne bluetooth . Bluetooth or variations of wifi. Users do not need to do anything. App, the more,he the better is the network. Yvonne it would only take 20,000 people to cover the entire city of San Francisco with an average delivery time of 10 minutes. Amazing to me. Talk about how this will revolutionize communication. ,t could be a disruptor threatening governments, which we saw in occupy hong kong. It is scary for government. Government should be happy. It is communication for everyone. Lets say you have a disaster situation like a flood. If people have firechat, even without a cell signal, they can still have communication. It only takes a small percent of the population to guarantee messages. Yvonne talk about your growth in the last couple years. You launched this last march. Started with 5 million. You have 5 billion people across the world. Where are you seeing the opportunities, especially in asia . Last year, 6 Million People install firechat. The next market is the 5 billion people buying smartphones in the next three or four years. They have cell phones but do not pay for data. Is probably the next evolution of the internet with off the grid communication. Yvonne is it china, india . India is a huge opportunity. Southeast asia, africa. South america. All these markets. Big opportunities for the company. Yvonne i have to talk about occupy hong kong. A remarkable story. You are all actually here during a layover when this happened. It was a surreal experience. I was in india, stopped on a layover in hong kong. 24 hours later, 100,000 people had installed the app. I decided to stay. During the protests. Within a week, half a Million People had installed firechat. Yvonne wow. Some of the users are very excited. Especially at concerts or protests. It seems like it could be used for so many different situations. , when families go on vacation music fans, they use firechat to find friends. Musicians communicate with the crowd. Situations like latvia and hong kong. The only way for you to have a minimal form of communication is firechat. We believe once you can message people without thinking about if you are connected, there is no reason why everyone should not jump on to firechat. Yvonne very exciting day for you guys, launching this private messaging app. Thank you, micha. Have a good day. Yvonne on high flyers, we make meet a woman shaking up the working environment. Says having a strong mother was a great help growing up in a los angeles ghetto. She was a seamstress and cooked at night for a restaurant. Busight, she would take the for an hour to san pedro. Well up will go and said if that man harasses me again, she says i will get him. I saw her take a cleaver. Yvonne you can catch our interview this evening at 6 00 hong kong and singapore time. Take off for Bell Helicopter with a deal in japan. We speak to the president and ceo. Yvonne checking headlines around the world, investigators trying to work out if debris on the island of reunion may be from Malaysian Airlines 370. Officials on the island have sent images of a plane wing to the team leading the search. Analysts are saying it could be 7, the aircraft that vanished last year with 239 on board. A man in court on sydney over a series of deadly bombings and shootings in the 1980s. Leonard warwick arrested in connection with the attacks that target of judges and members of the public. Four people died at the time. Warwick had ak longstanding custody dispute with his exwife. An eightyearold american boy has become the first child to successfully receive a double hand transplant. Harvey lost both hands to an infection. Earlier this month, a team of 40 spent 10 hours on the complex procedure in philadelphia. Hospital staff said he should be home in a few weeks. To rewrite then constitution and offer the military a wider role has been followed by new orders for helicopters. Chose fuji ministry helicopter and Bell Helicopter kawasaki. Olor sake we are talking to the Bell Helicopter ceo, john garrison. This deal was announced a couple days ago. Japan shows you guys for this deal, this 3 billion deal. Talk about it a little. It has been great. We had a great month in july. We celebrated 80 years in the bdustry and had the be 22 22. That was a tremendous win. We followed it up with the uhx program with fuji to build the next generation of medium helicopters for Japan Defense forces. It turned out to be an outstanding month for us in japan. Yvonne tell us what really solidified at the deal. You have had increasing competition. A lot of big names and local partners. How significant is this . It is a huge deal for japan and a fantastic deal for fuji and bell. We have been partners for 55 years. We have coproduced 600 aircraft in that time. This is a great opportunity to build out infrastructure in japan. They are a known partner, we are a known partner. It reduces the risk and offers a lower cost solution. It turned out to be a great win for us and japan. Uhx plan will replace 150 in their aging fleet. Some of these date back to before the vietnam war. How do you see growth . It seems like this is a huge market opportunity. Could there be more than 150 . Absolutely. The of the solution is 154 and the Defense Forces opportunity to export to a surrounding area. There is potential beyond the 150. We make a great product and this will solidify our relationship with japan for many decades. Yvonne obviously, they have seen a change in town in the constitution. Revenue just came in this week. Hurt by a decline in deliveries in the Second Quarter. How will you turn things around . We have known that for a while. U. S. Governments quantities have been reduced. What we are doing is outselling and investing heavily in our products. We have a brandnew 505 jet ranger coming out, a product called the bell 280. It is a difficult market, but we are investing to win for the medium and long term through new product developments, listing to our customers, and introducing new products to the marketplace. It is not the first cyclical downturn we have faced. We are confident we will make our way through this period. Yvonne definitely making a presence in japan. John, Bell Helicopter president and ceo. Breaking news out of japan. Industrial production figures have just been released. David, how is it looking . David fairly encouraging numbers out of japan. June, thetput month on month and year on year beating estimates. Not beating the most bullish forecasts, but at the high end. Month on month,. 8 improvement. The survey was for. 3 . 2 improvement in the year on year figure. That is coming off a 4 plunge in may. Both better than expectations. Futures, 10. Dollaryen basically unchanged. Very encouraging figures. A reminder to viewers, this is a fairly difficult number to forecast, looking at how wide the ranges are. But very competitive numbers towards the high end. Back to you. Yvonne we have more breaking news. Chipng, Second Quarter one s at 3. 4 trillion yuan. The second display business, yuan. S at 540 billion we will see how things compare with estimates. Theyre operating income fell 4 . Ast was a miss on estimates we saw the new galaxy s6 fall short of expectations. Yodeling for joy in the alps. We find out why after the short break. Yvonne welcome to the stock exchange. The openoking ahead to in japan, australia, and south korea. Who is winning this week . Zeb. 11. Is jsap holdings. They provide broadcasting services. Theyre operating profit down 17 . Firstquarter net income down 43 . A Japanese Trading Company that dabbles in big things. First quarter net income may reach ¥120 billion. That would be a record for this industrial giant. Yvonne juliette . Alps electronics. , aintuarter net profit 8. 64 billion yen. Yvonne that is the verdict from the stock exchange. We will be back in an hour to see how they have done. Facebook sales beating estimates, but investors are not giving the company the thumbs up. John i am john halperin. If you are thinking about lying, you may want to think about running for public office. On the show tonight, two candidates in one advisor. First, donald trump in the news again today defending it past comments about breastfeeding in a deposition. Now his remarks famous mexican immigrants and prisoners of war. There is a new flat over his divorce. The question is, is strong done