Supporting their economies and also containing debt and asset prices. If you look at what is happening in australia moving further into the rest of the year, maybe more, and the other side of that same coin is you have home prices. In sydney, something they have not seen in at least a decade. Another good example of that is to take it take a look at what is happening in south korea. A surplus, but it is not being driven by exports the way it should be. That is the main engine for growth. Trying to support that part of the economy and balancing fairly high household debt. And looking at taiwan, the biggest mover so far in asia this multiyear bull run. And we pushed past 10,000 at one point this year, under increasing threat. We are approaching the 8500 level at this point. The previous low was back in october of last year. Below that, we are headed to about 7900. I will leave it there for now. Back to you. Rishaad well, we had david alluding to china, and the Manufacturing Survey showing another month of contraction. The official gauge out over the weekend, that was a fivemonth low, but it was all of that stimulus. Yvonne, little to rejoice about. Yvonne the Third Quarter really starting things out on the weak side, and we talk about this pmi number, and we saw a new orders fall and output falling to a fouryear low. And the output numbers, staying below 50 showing contraction, so it might be a tough turnaround in the second half. Stock market swings, as we have been covering for weeks, and we saw car sales dipping in 17 years, just making things worse for the economy, and the manufacturing pmi turned out better than expected. Rishaad and in some cases people should look at that in pay more attention to it. Evil that is more of the transition they want. They want the economy to move towards it. With the national statistics, they are saying blamed the hot weather, blame the storms we have had, blame the Commodity Prices that have taken a tumble and looking at easing and fiscal spending just to reach the 7 growth target towards the end of the year. Rishaad and fiscal spending. Even on the prayer has highlighted one area in particular, which is the underground pipe systems in the ever expanding cities, severely outdated, as he has called them. He also wants to support the construction of airports in some of the regions, so it could give some more work to some factory workers and that sector overall. They said fiscal policies will be the key to stabilizing the growth for the rest of the year. Of course, this is all ahead when they meet for their annual meeting. Rishaad yvonne, thank you very much for that. Ok, we will take a look at what has been going on with our guests. We have been chatting about it all morning. A chief asian guy remains cautiously optimistic. In all honesty there is still not a great correlation between these pmis and the volatility. All of us have chatted the pmi for production, and sometimes it does not really give us too much information, but nevertheless i think it probably was not as bad as it could have been. In fact, we were looking for 49. 9. I would not have been surprised to see as will contraction especially since that number from 10 days ago was particularly dire at 48. 2. Chari sherry and they say that is what investors are looking for before they come back into the markets. For people to come back to china, number one, you need to see the chinese economy to be stabilized, and right now, it is not. The pmi is falling, so we need to see the pmi to stabilize, and then the Interest Rate cuts, we do need to see that before people want to step into the china market. Rishaad and china has been hurting Commodity Prices. You guys have a take on that . Overall though, it is a week china story. We are seeing the pmis not just on the export side looks fairly weak but also on the domestic side also looking fairly weak. I did notice that the National Energy association for china, they released their expectations for electricity demand for the second half of this year, and that is usually a pretty good proxy for activity. We do see a pickup in the expectations. Sherry now, that is the word on china. And there is word that the Greek Stock Market may fall off a cliff when it reopens in a few hours. They are showing that the systems are ruined, and so, the market reopens, but what restrictions and training . Reporter mainly on buying, not selling. As you mentioned, it looks like it will fall off a cliff. Changing hands throughout this they have clinched by 17 , so that gives an indication and there were those in the market before the controls came into place, but the greek traders will be able to buy stocks and bonds and derivatives if they use new money, so cash from a broad or pushing out money from their balances. Also, there is going to be a much easier way with the stocks that fluctuate widely. This is within 10 minutes. They will be halted immediately. That is down from the previous restriction, where they had the stocks moving. Still quite a lot of restrictions coming into play. Reporter what about Alexis Tsipras . It looks like he will hold an Emergency Congress in september. The leftleaning section wanted to hold one on friday. The news finance minister is saying it will continue, but the Prime Minister is facing an economy that has got employment numbers out of grief this week about 26 or one quarter of the population do not have a job. It looks like it will be an Emergency Congress on the future of the party in september. Reporter and you mentioned the economy being shattered right now. We are fearing they will miss another payment, or there is a fear coming from germany . They oh money by august 20. There were unidentified german officials saying they main up he able to do that without another aid package. Reporter thank you, from greece, and we will be live in berlin in about 20 minutes, and we will also be speaking to the ceo of the athens Stock Exchange, running us first on bloomberg at 10 past 5 00 this afternoon hong kong time, 10 past 10 00 in london. Rishaad other stories we have been tracking for you, that wing that washed up they have identified it as a flapper from a boeing 777, and it is the only such plane known to be missing. Another piece of debris has been ruled out of the mistry. They say it is an ordinary household ladder and nothing to do with the aircraft. An air asking for more than 100 billion in damages from the operator of the quality import airport due to problems at the terminal which has hurt its reputation, and the safety risks. The terminal is syncing with standing water on the taxiways. Some are saying that the airasia claims are baseless and that they will challenge them. Shares jumping by the most in six years in tokyo after expected profits managing to buck the slowdown in china with net income rising in the quarter ending june, mainland sales rising 30 . There was the introduction of new models. Chari she4rry and where we stand on the shanghai composite. David . David profit warnings, and between these two companies, petro china, just putting that into reflect be heavyweights and either a better than expected drop in the first half or they are coming out with dyer profit warnings, i think is the best way to describe it. We are seeing it across more than one area. Now, the shanghai composite about 20 minutes to the close so i will get my chart up. Basically, 3592. And where do we head this week . This is your 100 day moving average. We are basically stuck. This is about 3550 if i am not mistaken, so that is something to watch, something that has really helped to daddy this week. It is very tight ranged, more than the outside perhaps but i will leave it there for now. Rishaad well coming up later this hour, we will see how there could be something that affects the online payment arm of alibaba, and one of the biggest underdeveloped nickel deposits in australia. Asia edge is back in two. Shery welcome back. Some shares at a low, so should we expect more defaults . Owing back to the conference in kalgoorlie we are joined by a ceo. Thank you so much for talking to us. You are an example of a rags to riches tale, having found one of the biggest nickel deposits. How does that excitement over that discovery change with this commodity slump . We have had plenty of excitement. We were a 5 Million Market Cap Company when we discovered this and there was the merger offer which is happening in a very short space of time so the situation is serious it is quite immune. Shery yes, you mentioned that merger offer with independent group. How is it going to change . Well, this transaction means that Independence Group will merge with us, and we will essentially ceased to exist. The team that is developing the neck all mine will cross to independence and the team that was responsible for the discovery will move across to a new Company Called s2, which will be merged instantaneously and the business will change quite a lot. The guys responsible for bringing that into production will continue and the expiration side exploration site of the business i guess will be reborn and become another smaller explorer again but well set up with plenty of cash in the bank to explore the asset that are being spun out as a result of the merger. Shery mark, the development of your nova project is coming much faster than expected. How is that going to affect your business . Well, i think the merged company will benefit enormously because given that we are sort of on the back and now, c back end now we are able to get the best at good rates, which is different to how it was two or three years ago, so that has flowed to developing the minds cheaper, quicker, and with good quality, as well, so that is what we are seeing. The infrastructure is ahead of schedule, and the underground mining is 59 ahead of schedule, which is pretty unheard of really. Shery how concerned should we be about this commodity slump we are seeing . Because gold and others have been slowing. How concerned are you about the commodity slowdown in china . Obviously the slowdown affects demand, but in the case of nickel, it is a supply story, so there are fewer coming on stream and in particular, there are very few liquid ones coming online, so all of the big smelting around the world, they are hungry and this produces one of the best quality concentrates in the world, which is why we are not concerned about demand so much. The supplyside seems to be the fundamental here and also, no vote will not be in full production for a year or two yet, so we are not exposed to the here and now. The nickel price in two years time and Going Forward for the next 10 years. Shery so you do expect the nickel prices to rebound. Thank you, joining us from the conference in kalgoorlie. Rishaad talks may resume after they failed to reach an agreement, and managing to look at Environmental Standards but there are long sticking points like automobiles. Some have confidence a deal will be reached at the next meeting. The United Nations has warned that the number of the sums in myanmar may rise. There were unusually heavy rains with the monsoon, and 20,000 homes have been destroyed and at least 200,000 people affected. The government has been criticized for reacting too slowly. And china says by hosting the Winter Olympics in beijing they can unlock a potential sports market of some 300 million people. The 2022 games, making beijing the first to host the summer and winter event. There is concern about the conditions. Winters are usually cold and dry around beijing. There is concern that the al qaeda events will have to be out, and u. S. Secretary of state is coming to asia to get this Iran Nuclear Deal through. That is coming up on asia edge. Shery welcome back. These other stories we are tracking. Rio tinto is wanted to help the mining industrys missed opportunities, allowing access to their Laser Technology to search for new discoveries. In return, they would become a partner on any significant wind. They are uncovering the lowest number of major discoveries in 20 years as they tighten expiration budgets to cut costs. The slump in oil is hitting some of the industrys biggest names with exxon and chevron posting their worst earnings in years. Exxon saw profit fall to the lowest since 2009, while chevron hit a 12year low, and that is despite both Companies Cutting costs and taking writedowns worth aliens. There are over supply concerns that pushed oil into a second bear market in the middle of last year. Rishaad well, it will be a big week on wall street and in washington as Lawmakers Debate the Iran Nuclear Deal, and su keenan has a look at what were watching from new york. Su the week ahead on wall street will bring economic reports that will be closely watched, and there is also a good chance we will see lower volume, as many traditional traders typically take off for vacation in the final weeks of summer. Economists say a report on jobs will likely show employers in the u. S. Added more than 200,000 jobs, and that will hold the jobless rate at a sevenyear low, with u. S. Personal spending likely shows, according to our economist survey, reduced spending in june, and after the biggest gain in six years now, july manufacturing and Services Data also on top in the coming week, and the Auto Industry will be and the spotlight as ford, general motors, and rivals come out with some of their latest sales. In washington, it will also be a quieter week than normal. Some already on the august schedule and they are scrutinizing the Iran Nuclear Deal and secretary of state john kerry will be going to asia to reduce concerns about that deal. On the earnings front, walt disney, cbs and hsbc are among Companies Reporting earnings. In new york, su keenan, bloomberg news. Shery and before we head into the short break, the mission is accomplished for tom cruise, where he had his new movie that collected 56 million in north debut. In the fifth installment of the action series, secret agent ethan a hot out in the cold with the Mission Force disbanded. It gained 93 positive reviews on rotten tomatoes, which is a high mark for an action movie. And, of course we are looking forward to afternoon business in tokyo. We will get you the latest on japan reopening after this short break when asia edge returns. Shery letup stories this hour two gauges of chinese factory activity have come in below expectations. The pmi for july was 47. 8. Half a percentage point below forecast. The fifth consecutive month of contraction and its lowest level since july 2013. The official measure released at the weekend was 50, a fivemonth low. Markets are down across asia on concerns about the slowdown in china and the failure of stimulus. A shares in hong kong are headed for the lowest in eight months. Shanghai stocks fell more than 2 , led by energy and tech. The Greek Stock Exchange reopens later today after a fiveweek shutdown to shield the Financial System from ruin. The asc has been closed since june 29 having dropped 18 over the previous three months. The closure was another blow to investors who would see the markets give up 80 5 of its value since 2007. Lets get more on that story live from athens. Bloombergs international correspondent, hans nichols joins us now. Tell us more about these restrictions that will be in place in the athens Stock Exchange when it reopens. Hans good morning to you from athens. The restrictions only apply to domestic buyers of the stock. They dont apply to international brokers. The restrictions require them to use funds from either International Accounts or future earnings on their own internal accounts. It is an attempt to put restrictions and these restrictions were imposed by the greek finance ministry. They worked with the European Central bank. The restrictions put in place to make sure you dont have any attempt to escape the capital controls, so you dont have any capital flight, which is still very much a real concern in athens. Another restriction is going to be a lot easier to halt the trading of the stock. The new rule is, the stock drops more than 7 in five minutes, you can halt trading. Before, it was 10 over a longer time. They do want to get things opening. It is an important step for greece returning to normalcy. We are going to get more normalcy later today when we get a sense of where the economy is. We get pmi numbers 11 00 local time. Shery with so many limitations, it is a real question whether this is a market but what are members of the Stock Exchange saying about this . Hans they are concerned about the fundamental integrity and mechanisms of the athens Stock Exchange. They have voiced their criticism. We will be speaking to them throughout the programming. Here is a quote. They say the restrictions imposed only on the transactions while leaving the transactions of sales free and unrestricted will clearly favor the sales rather than the purchases of financial instruments. One question no one really has answered is, how much is the Exchange Going to drop . There is a fund that state open through all this. That has been down 19 . Those havent always been a good indicator of where markets are going. Theres any tf that state open when the cairo Stock Exchange was suspended during their difficult period in 2011. That etf was down only 1 the day the market opened. Collectively, in aggregate, it was down 8 . A key criticism as well as handling criticisms of so many restrictions. Shery investors seeing quite a day ahead. Thank you so much hans echols in athens. Rishaad having a look at the impact of important manufacturing gauges from china, playing out when it comes to some of these equities. Heres david. David pmi obviously in the mix. 2. 5 drop for the shanghai composite. That is something to watch. Lets flip this a little bit and take a look. My finger is a bit cold today. Fx markets. We were talking to hans in athens. That is going to be in focus in london. That is a oneyear chart of the year. This phase here was when people were starting to talk about qe. It bounced them back up and then fell asleep somewhere towards here. 1. 0985 is the current level. Similar looking chart just change the name. It really is about dollar strength. . 73, that takes us back to levels of 2009, below which 69 12 i think. Two rate cuts here. Will we get more ahead . They have to rebalance. The other side of that coin is asset prices. South korean won, there we go. Thats approaching multiyear lows as well. Current account surplus at a record. Malaysian ringgit, fresh 17 year low against the dollar. Rish, back to you. Rishaad we are going to have a look at the biggest commodities trading in this part of the world. Noble group is to take the unusual step of bringing forward secondquarter earnings. In turkey, with a look at why this company has revealed this and why it is doing this as well. Good morning. It was a pretty bad week for noble group. Shares went down 28 , which is the most the stock has been down in one week since 2008. It is obviously facing a lot of headwinds. At the moment, Commodity Prices are down. One of the investments it has made in australian coal announced job cuts. A lot of speculations swirling around the stock. One of the things that really happened last week was that noble group went into a socalled blackout period. Before the Company Reported results, for two weeks, it had to stop all of its share purchases or share buybacks. That has been one of the things the company has been doing to try to stop the slump. As soon as it did that, we saw on thursday and friday, the stock went down double digits on both days. The company weekend it also heard a lot of speculation and rumors about it having very bad performance. It decided to put an end to it and bring forward the results to show a much more positive picture then people may be imagining. Critics say that also allows them to get back in there with the buybacks. Rishaad noble has also mentioned approaches from third parties. Do we know what they are talking about . Do we have any details from the third parties or from them . This is the first time that noble has come out and said theyve had any kind of approaches. Theyve been very sparse on the details. A number of parties have come to them with potential financing, strategic or investment options. They wont name any names and they will say that any details they will pass on to the market. It really gets to the issue where a lot of the critics had said noble group, to survive the attacks and the shortsellers, it really needs to bring forward a white knight, someone that will invest in the company. At the moment, the company says we dont need to do that. It certainly seems to some strategists in the market that this information seems to have really given a bump to the share price today. People thinking that maybe someone in the sidelines, on the sidelines, willing to come in and help noble if needed. Rishaad thank you very much indeed, yuriy humber. Shery as sydney house prices soared in july to their biggest gain in 13 years, Property Values jumped in nearly 18. 5 from a year earlier. Buyers have snapped up property after the Central Bank Cut rates to a record low of 2 . The countrys mainlanders raised some Mortgage Rates last month after regulators forced them to hold more capital against potential losses. Chinas equivalent of airbnb has been valued at 1 billion in its latest funding round. It has raised 300 million with backing from allstars investment, which also supports smartphone maker xiaomi. It is looking to expand in places that draw chinese travelers, including thailand, indonesia, south korea, and taiwan. In his first action since gaining new powers to combat money laundering, the Hong Kong Monetary authority has fined indias largest bank 960,000. The regulator says the Hong Kong Branch of the state bank of india failed to conduct proper Due Diligence before doing business with 28 corporate customers. It also says the bank had taken steps to address the assets and that suspicious transactions had taken place. Rishaad the gold rush could be coming to an end. We are having a look at the details of a new crackdown from beijing. What are we talking about here . Zeb we are talking about peertopeer finance, the margin right dancing the margin financing that led to the collapse. This is a multibillion dollar trillion dollar industry in china presenting a huge challenge to traditional banks. People are doing banking online, getting margin accounts and taking on huge amounts of risk. You have traditional banking now being conducted by these online payment platforms and the government cracking down, trying to tighten the regulations here. There are 270 online payment platforms, including alibabas finance arm. They have the biggest claimant payment platforms. They will be subject to tighter rules. Individual customers can only pay online about 800 u. S. Dollars per day. All of this in an effort to rein in some of the risk in the Financial System prevent stock market movements like weve seen in the past two months, and certainly to level the playing field. Rishaad what happens to these companies . Do these new rules mean that they go into extinction or do they get together and consolidate . Zeb thats what the analysts are saying you are likely to see, consolidation, failures as well. These companies simply unable to stay in business given this new framework the government has outlined. Rishaad thank you very much indeed, zeb eckert. Shery up next, a further round of disappointing data causes renewed concern over the slowdown in china. We will be discussing that and the rest of the days top stories when asia edge returns. Rishaad we are going to check in on some of the stories making headlines around the world. Shery the Bitcoin Exchange has been arrested. Mark was detained in tokyo accused of accessing the computers in february 2013 and inflating his account. If convicted, he could face five years in jail. Mt gox went offline earlier. Thousands of bitcoins worth several hundred Million Dollars were unaccounted for, suggesting they been stolen. Rishaad at least one person has been killed and 12,000 evacuated as wildfires rage across drought stricken northern california. The most affected area is near san francisco, where 50 houses and other buildings have been destroyed. A state of emergency has been declared. Shery a second american tourist has been accused of illegally hunting a lion in zimbabwe. The National Parks authority says the doctor killed a lion with a highpowered bow and arrow in april. The hunt is said to have taken place on land where the animals are protected. The doctor was featured prominently on hunting websites pictured next to his dead elephant, hippo, ostrich, and antelopes. Rishaad weve got yvonne and zeb and richard harris. Longtime no see. A lot has happened since then. The worsening pmi data as well. Richard thats right. The pmi data, i think, was slightly off boil. It wasnt too bad. I kind of figure china is maybe going through the last movements of this bear market now and you might find some support. Rishaad bear market as in equities, not as in economy. Richard in equities. Shery you pointed out in an article that instead of focusing on benchmark indexes, that people should invest in the broader chinese economy. Given how the situation is playing out, would you still invest in china . Richard i think if you look at the chinese benchmark, you look at the Companies Listed in stock markets all over the world. Youve got alibaba. Shery they have also taken a hit. Richard thats right, but if you are going to invest in china and china goes down, you are going to take a hit. The point is you can find stocks in hong kong, stocks in new york you cant find in hong kong. I think what we should be doing is looking at if you like a unified benchmark of all those companies. Then people may not be so hit when those economies start to fall. Zeb so the arbitrage opportunity is not as lucrative as it was in the past. Do you think we need to look beyond that in terms of Stock Selection . Richard thats right. If you look at the debate about the msci that we had about a month ago, are they going to bring china in or not, they should probably bring them in so that investors have the ability to invest in chinesebased stock markets wherever they are listed. It should be irrelevant where a stock is listed. Yvonne do you expect them to include them next year . Richard i cant imagine including them in its entirety but Foreign Investors can invest in the market to a certain extent. Yvonne some Foreign Investors are investing in the bond market as well. Are you exposed to that . You are seeing sales records hitting records close to last year. Richard that needs to be an area that the Chinese Government wants to develop. One of the issues i see, even big companies, the amount of shortterm debt is extraordinary. You get a crisis, the banks want to call in that debt and the company is in trouble. Chinese needs china needs a bond market to be traded by investors. I think that will also stabilize the Chinese Market. We are kind of at this funny state at the moment sorry to butt in it is like a man trying to get on a boat. You got state owned control on one side and the market on the other side and you have to get on the boat without getting wet. That is the image it conjures up at the moment. Rishaad or them going in opposite directions and having some very painful form of the splits. Richard we get lots of comments about liquidity too. Yvonne you said that we might have hit a bottom in the ashare market. What is the line in the sand for you when you look at these movements . Richard im looking at around 3300 at the moment. Nobody likes to lose 10 , but it is possible it might spike down there. There are a number of support lines in the Chinese Market going back over eight years that seem to indicate that thats probably going to be some kind of support level. In a market as emotional as china that doesnt really look at valuations, you are looking at the entrails, the charts, to see where some of the hard points might be. I think 3300 looks like a reasonable point. Rishaad a lot of people had said 3000 would be in the line in the sand. Richard it is difficult for the government to control the market in china. It is one thing to control individuals, but the market millions of individual decisions make up the markets. You control it by having caps on trading. You can control it by companies stopping trading in their shares. Rishaad you can call in the visible hand. Richard there is a big visible hand already. You might say the same of the u. S. Bond market. Shery greece is starting to trade again. Where do you see that going . People are expecting a plunge of 17 . Are european stocks doing pretty well . Richard of course when the market opens, it is going to be pretty unstable. People are looking at some etf pricing around that label. Traders will price down because they dont want to get hit. I would imagine by the end of the day, it will be down, but not as badly as that. The european markets have done quite well and theres lots of evidence to say the economy is not in such a bad shape. With all the daily headlines, it is perhaps a reasonable patch. Zeb Summer Vacation time. It might be a good time to go to greece and look at some hard assets. Get some good deals at the moment. Rishaad the isle of santorini is gorgeous. There may be others. Richard im sure there is. There do seem to be a lot of people on holiday at the moment. I think generally its going to be quite cheap. Tourism is greeces only asset at the moment and they have to milk it as much as they can. Rishaad i have reports of people saying dont think you are going to get a bargain in greece. Arrive in a glass taxi. Shery thanks a lot, richard harris. Coming up next rishaad back to kalgoorlie for the mining industrys annual gettogether. Shery after the break, a look at what the conference brings to the city. Rishaad you are back with asia edge. The remote australian town of kalgoorlie is the center of attention this week. Shery this has been going on for 23 years. The event is known for his lively socializing as much as networking and schmoozing. Paul allen is there for us. Paul kalgoorlie isnt the easiest place to get to yet 2000 executives make the long journey boosting the population by about 5 . This historic goldmining town is an hour inland from perth one of the most isolated cities in the world. Theres a lot of effort to attend the conference. Why have it here . Kalgoorlie is probably the center of mining nostalgia. People like to come here. They Stay Together for the whole three days. It is much better here. Paul it is not just the delegates that need to make the trip, but pretty much Everything Else as well. Industrial kitchens food audiovisual equipment, and even the venue itself, the largest marquee in the southern hemisphere. Hotels are booked solid and many locals are fleeing town and renting out their homes for up to 5,000. Im also feeling the economic impact. It is costing almost 200 a night for me to stay in this caravan park. It is very good for kalgoorlie. We get about 1800 delegates coming. Weve got several thousand people coming to kalgoorlie. It is very good for kalgoorlie. Paul while most of the familiar names in mining are here theres a few notable absentees. Some companies have stopped coming due to the afterhours entertainment downtown. They say the nightlife is not reflective of their values area Goldman Sachs has also stopped coming but wont say why. I think the skimpy issue is just a side issue. Paul kalgoorlie is infamous for its socalled skimpys, the barely clothed waitresses that for the drink. Im not allowed to film them. Paul allen, bloomberg kalgoorlie. Rishaad paul allen at the diggers and dealers conference. We will be talking to him tomorrow. Shery as well as the fortis q boss. Catch him at 10 00 p. M. Singapore time. Rishaad an interview later on this afternoon. We are talking to the chief expected of of the athens Stock Exchange. Shery they open from a fiveweek shutdown. Rishaad trading getting underway at 10 30 a. M. Athens time. That is this afternoon. Shery thats it from us here on asia edge. The following is a paid presentation for body beast, the fast proven way to build muscle and build your best body. Brought to you by beachbody. This is as real as real gets. We will learn and we will sweat and we will have fun and we will see results. Before bo