Policymakers say they want to stab the stock market route. We are seeing optimism, shares shipping on the prospective deals in the space. Well get you more details on that as we receive them. Region, i doubt day across South East Asia is on holiday today. They celebrate the 50th anniversary, and we wish them well in the lion city. Malaysia, some challenging times. Selloffl risk showing a , Foreign Investors get on the market. Keep an eye on the market. Vietnam giving us a little reason to be optimistic, and the philippines, Philippine Airlines is a key member, as it executes its turnaround. Rishaad thank you. Policymakers to boost stimulus after that weekend ada. Ande than expected demand Stephen Engles with me now. How bad . There was a lot of euphoria in the first half with the stock market bubble. Asking thewas continuing weakening of demand. Imports were bad, exports were bad. Cpi is pretty tepid. Ppi, the biggest decline since october 2009. These are wholesale prices. Ppilast inflation of was in 2012. Has been consistent, and we can have a statement coming from the advisors saying that deflation of the ppi will continue for some time. It was rather tame, most of the uptick was due to poor prices going up. Food is very tame. That shows a demand game, not going up. Exports down, 8. 3 . The yuan has been stable versus depreciating currencies like the yen in japan. The euro in the eurozone, eu ask her to the eu. Rishaad what about the measures that policymakers are looking at . They have many to look at. But there are some traditional, the qe with chinese characteristics. Trying to get some growth in the real economy. A lot of economists expect another Interest Rate cut. It really has not sparked the kind of recovery that some seychelles have some say should have happened. Also, traditional stimulus. The government is said to be to one trillion yuan in construction related bonds. That is the old cocktail to stimulate growth, roads, railways, bridges and the like. They have a number of tools at their disposal. How far do they want to go. . . Rishaad thank you. Further Government Intervention is necessary. We have to do more, and we see as the data that is coming in. It is also clear that there are not coming to the rescue. That is a general problem for asia. If you look at exports, they are pretty weak. It is really translated into better sales for the asian market. And yous to do more, come a vast market for asia. Countries, china is really key in the whole system here. You think that the government will do more the chief tonomist joining us now dross in the letters between the china stock wrote on the financial crisis halloween the collapse of lehman brothers. If you look at the tradeoffs that they are making right now i do not much of a difference between where they are today and where the head was in 2008 it six years to come back to the peak area i do not think that china will take six years to come back to the peak. Investors both individual and corporate understanding that investment environment seems like Corporate Investors buying back their shares and thinking there is a no lose environment as a really big issue. Global head of commodity agrees that it will take some time for the markets to fully recover. Rishaad enough talk in the market that the government is trying to restimulated. We do not think it will be enough to get the market commodities. His will be volatile. There will be a lot of all starts. Markets where we will perform an underperformer. That was the word from asia on china. Rishaad banks in japan are reaping the fruits of a voice. Market and a renewed appetite for mergers and acquisitions. Among them, Goldman Sachs is a clear winner. How gs did. Pretty well. On the roads across the board we are talking about revenue, profits, head count. If you do get their business youre busy net income rising 39 . We also have revenue rising, 31 . Even their headcount in a japan unit is up 6 . Optimistic stock market, not to mention Japanese Companies to appetite for mergers, overseas expansion as well. That has altered fees on transactions. As an example, they have 12 transactions that were created for the year through march. Can see that season commissions from the deals helping during investment banking. , profite businesses jumps to a four year high. Equity also rising at 10 . Lifts all rising tide boats, that is the theory. Citigroup, gained as much in profit and revenue and Goldman Sachs. Of 31 . Thedifference there is that headcount did not rise. To 577. Es of 43 people profits,venue, higher they also had some job cuts. Of course were only talking about the winners. There were some losers as well. Stanley saw underwriting fees that hits there profit. In other news the market has china what theto way from its u. S. Debt holdings. Fell six percentage. Oints Warren Buffett sure half way business last quarter profit falling. The Division Posted a loss of 38 million because of geico and reinsurance took a hit from currency fluctuations and storms in australia. Berkshire are quick a pick up in australia, because it is merger. Said to beri considering a merger between two large shipping company. Cooling economy has seen shipping rates and volumes fall. Those companies is better their shares from trading today, telling the company that they are planning a major issue. Get more on that and the rest of the days news that bloomberg. Com. We will find indepth reports and market data there. You can watch some of the interview here. Get back to the markets, key Market Movers today. The amid this positivity in market in high, which goes against what were seeing, up 2. 5 on the shanghai composite. The shipping space is capturing much attention today by investors all across the asiapacific. It is one of the leading Industry Groups right now. We want to give you the sense of what is really powering ahead. Shipping stocks raising by the daily limit in shanghai. Which names you should be following today. The government in china has been trying to restructure the shipping sector. These are the stocks that are really benefiting from the merger speculation. Here is what is happening. These companies have this on a report. , you can seeoups those huge containers traveling across to asia, and certainly across the pacific to california and beyond. A major conglomerate in china. These names you want to watch china shipbuilding, china holdings, National Marine container. Concerns, about the chinese economy. Watch the shipping space. Thisey dominant theme monday and in the hong kong market, many of the shares are suspended. They remained suspended and we will watch for an announcement from the stockings range of the companies to see if a merger does happen. The dynamic affect on india on that story coming from that coming right after the break. Rishaad a check on some of the stories making headlines around the world now. Has weakened to a Tropical Storm as it moves inland on china. Still more people are missing. People died and five more were unaccounted for in taiwan. Eightyearold twin girls and their mother were swept out to sea. A firefighter was hit by a drunken driver as he tried to clear a full entry. Inpeople have died in almost one million more have been displaced sinc in the worst flooding in myanmar. The government admits its response was slow that is asking for international help. The delta is the hardest hit where the large rivers converge before heading out to sea. Anniversary of the bombings of hiroshima and nagasaki. Survivors of the bombs that ended world war ii her speeches denouncing Nuclear Legislation bring it back. Lets have a look at what is going on in asia. On wednesday, Analysts Expect profit of 1. 2 billion. Travel content, and locationbased services in china. Our messaging platforms like we chat that reach more than one billion people. The latest weapon in the smartphone will wars on thursday, galaxy unpacked. We are expecting to see the galaxy note five and samsung six edge. While it remains the largest smartphone maker, and has a lackluster response to the latest products. Struggling with the debt ridden development fund, and goodling for currency reserves. Economists predicting a year on year to decline. A potentially divisive day for japan and its neighbors. Shinzo abe is expecting to make n address on historic relations with asia and outline his future view. China once and to apologize for militarism in the 20th century. Topics, heading for its first loss in nine days. We have some trade data coming out of japan today. Some people saying it is disappointing, but shrug it off. What do you think . The micro data in japan, i do nothing that will cause much variation in the markets. What is important for japan is two things. The delivery of earnings which has been spectacular, relative to the u. S. , europe, and everywhere else in the world. And secondly, the yen. The yen has been trading on the weaker side, rather than the strong side. Tomatoes are the two main drivers of this. Is this why you think that the opportunities are there . Yes. We are overweight in japan. As far as the u. S. Is concerned, we have bought the down a lot. Japan is very overweight. The market has done well for us. Where you bringing down u. S. Equities if it is one of the major rivers of the economy . Is being a driver of the World Economy is one thing. But we have little nudity. We have liquidity. Qe halted last year and this year we have rate hikes. Liquidity is a big driver markets. And it is quite expensive. We are trading 19 times current earnings. Earnings have been downgraded more than in japan. As a result of that weve been sending down the u. S. The last months now. Into japan, money into europe, and also looking at china. Do you think theyre on track for the 2 inflation goal . That is a tough one. That is tough to achieve, unless they actually change the composition of the cpi basket. Many countries in the world of the last 20 years have done that. In japan is prepared to do so, maybe they will do it. One thing that is interesting is that it is very product specific. It is very curious. But indeed, it is a good measure , a good barometer of what is happening in japan. Still the least, there is a labor pressure right now as people see to find wealth and grow. That is definitely the trends. The important thing is that wages have started to rise a little bit. It is not just the stock market hitting an alltime high, but the wealth has spread a little bit across the whole nation. The demographics are still against japan, and we know they are a more saving nation rather than a consuming nation. It will be a tough time for us to see a core inflation rate approaching to present any time soon. Itll be an interesting buying opportunities today, and what is the driving the market down is china. Youill talk about that when rejoin us in about 20 minutes. Coming up next to malaysias confidence problem. How the nations dealing with the guest fund outflow in years. Rishaad overseas money is heading for the doors and malaysia is one of the biggest outflows in seven years. That also commonl coming in this political scandal around the Prime Minister. Asia go to our southeast correspondent. It is coming in thick and fast. Haslinda it is. Put itbritain in in perspective for you. Loss through the high in april. That is prompting some to say that a correction is due. The worst may not be over. Expecting more selloff, investors want their money out. Boy have they been pulling money out 3 billion withdrawn this year so far. The fastest pace in asia. The klci index reeling from that. He is taking his attention from growth, distracted by allegations of wrongdoing. Million dollars have been said to make its way to his personal bank account. Investors do not like uncertainty. The political scandal plus a makingty rout all investors nervous. It has been dumped as a result. How much lower can it get . Rishaad absolutely. The thing is, can the central bank can you to drop it up because they have goodling tax bankves can the central profits up because they have dwindling tax reserves. They are at the lowest level since 2008. Haslinda 96 billion to be exact. Commodities but we have been talking about, slashing its revenue. Andntervention is limited, some say intervention will stop a 90 billion holding. It is very little that they can do to prop up the current state. Rishaad thank you. Coming out of japan. There has been a lot of talk about this. It does seem as though they will bes darting off that first reactor under the punt fukushima rules. They wont do this as soon as tomorrow. The first reactor to come on , planning to restart the electric as well. We are looking forward to the afternoons business in tokyo. Next, getting the latest on japans reopening after that never break earlier. Narrower than the economists were thinking. The reopened is next. The top stories this hour. A Senior Advisor has told Chinese Media prices could remain negative for some time. Sold five. 4 in july, the steepest drop in six years. Exports dropped adding up to pressure on chinese policymakers for more stimulus. Japan mayrecovery in be losing steam. 4. 5urplus came in at billion in june. That is the lowest in five months. Surpluse expecting it of 6 billion. Stocks are down slightly in tokyo. For the firsting time in nine days. Several banks are seeing improving results in japan. Goldman sachs is the standout, the only bank to boost revenue. Japan unitat its searched and revenue jumped by a third. It reduced its staff by 6 . Lets rejoin zeb eckert right now. How is it looking . Zeb a down day today. Lets take a look at the map and tell you how we are doing. He reported on Southeast Asia and the klci index like to in concerns domestically in the economy. Among shares, you are seeing some positivity today in the philippines and vietnam. , both ofnd thailand those markets lower. Australia as sales of commodity producers are shrugging off the downside in crude oil today. The brent benchmark in the new york nymex. Jpmorgan pulling back on its forecast. In japan, the nikkei 225 come back online. I want to zero in on some of these electric producers, the tokyoys powering the metropolitan region and most of japan. Tokyo electric, the fukushima reactor, falling significantly. Shares down 7 . We are also tracking another electric company. This plan to restart its reactor in sendai, north of tokyo. Fukushima plant where of course the meltdown happened after the devastating tsunami. They would be one of the first to restart. Nuclear power controversial in japan. Economy, huge country with huge power needs. Certainly there is a case to be made for Nuclear Power. Japan has been importing lng at a significant cost. There is a debate. Tokyo down in the session. This utilitypower, provides power to the osaka area. Getting an uplift on news it will, or is intending to restart the reactor in sendai. We know sunday, if you drive to those places that were devastated by the tsunami. Thatwill strike a nerve in region for those people who suffered. We will watch the stock and the story out of japan, angie. Angie that is notable. You are so following shipbuilders. Zeb we have shipbuilders suspended in hong kong on speculation there will be a merger. In China Shipping and cause go. We will get you details. These stocks have been moving in the shanghai market, leading the market higher. We will bring you back to what we are watching. The stocks have been rising by the daily limit, 10 . China shipbuilding up 10 . China interNational Marine container moving higher a few minutes ago. Here all downtum to a possible merger. Chinas shipping having the suspension. A reporter joins us now. The reports of the merger, are they surprise . Not really. The chinese shipping industry has been going on and off the last couple of years. They have been doing well. With all of these suspensions and companies coming up with a lot of suspensions and what they say about the parent unit expecting some news to come out the next couple of days, seems like something is brewing. Expect fromt can we this potential merger . Companies think these have wideranging shipping or transportation businesses. If anybody is looking to the real merger, which is a similar merger by chinas government, this is going to be way more complicated. Hasproblem with cosco is it a lossmaking commodity shipping business. China shipping is the better, wellmanaged company over here. Listed units off the parent body. It is complicated, which is a reason why this merger, this discussion, will take longer than it took for the real merger completed, the new entity started trading in june. Theaad clement, fundamental question, how does this change the Global Shipping industry . Clement it is tricky. Sizes combine the fleet of China Shipping and china cosco, it will technically form the fourthlargest fleet by size. Is, how this merger will go on, because this is a mandated merger, it is not going to be there will be complications from other antimonopoly commissions. Shipping is a global context. A deal last year involving the top three biggest shipping companies. It will be interesting to see what will happen. We not only have domestic obstacles and some other challenges we face in consolidating such a bloated industry, but also going overseas, whether it will meet the guidelines set elsewhere. Rishaad clement, thanks for that. The shanghai composite closed over 3 . The strength of the market is down to intervention from the countrys rescue fund and after some digging, we know what it has been buying recently to support stocks. Maybe a backstop. What are they buying so we dont short it . Shorting these stocks. You dont want to be on the other side. It was interesting because when they came up with this scheme to bring the money together, together with the Chinese People corporations, the were guessing. At what point will they start buying . Which stocks . You had petro china that was being bid up. Notave been able to dig, too hard, because these were based on exchange filings. It has built up such a substantial position that they had disclosed it. That is how we found them. So these are the four sectors. Lets show the graphic and have a look at some of these individual names. People are wondering. There we go. China railway, you have the tcl, dairy maker, guanghui, these are sorted by the size of the position. Angie gotcha. How have these stocks done . David not very good. We have the top three, the railway stocks, and you have the dairy maker. They have done this, but you could argue without intervention, they would have done worse. Angie maybe creating a floor thanks to cffc. Thanks, david. Thanks for all of that. A look at some of the top corporate stories on the terminal. Weve got Juliette Saly standing by. Shares extended losses , losing half of its value. 56 thisas fallen year. There are concerns a slowdown in auto sales is hitting growth. In july the Dealers Association said annual sales may fall for the first time in more than 13 years. A car booking service has attracted more backing. Beijing automotive has joined China Investment corp. As investors. Rival ineen as ubers china. Looking to is also expand its shuttle bus and carpooling services in china. National Australia Bank shares are up after its profits rose more than 9 . That is thanks to lower bad debt charges. Shares have fallen 1 this year. Benchmark index is up 1 . Those were the top stories this hour. Caught najib razak between a rock and a hard place. He wants to use more robots and factories but does not want automation to destroy jobs. Natalie joins us now. 30 contradictory aims. How can they work . Ah, it does look like a contradiction. Perception robots still jobs. That is not entirely true. You need somebody to maintain the robots, Software Engineers to put them into the factory line. That means you actually get more jobs beyond the industry. Challenge is educating the workforce to take advantage of this opening up. 287 Million People are illiterate in india. That is, more people than the entire populations of most countries besides china and the to beso is modi going able to educate those people in time for the factory jobs of tomorrow . Tell me something as well, what impact will automation have on his plans . Does he have a plan in place . Natalie it is a good question. It will intensify this race he is in. Modis is in a race against machines, his own democracy, and in a race against other countries that are trying to grab a share of that manufacturing pie. He will not be able to stop the adoption of technology. That would make his factories less competitive and able to compete with the rest of the world. Forother troubling factor him, he is not only competing against other asian nations. The thing is, automation and robotics is making factories in richer nations, western europe, japan, the u. S. More competitive again. So once again it comes back to a question of is modi going to be able to scale up his workforce to create, to take part in this new economy that is evolving . Rishaad thank you very much for that. Foxconn has confirmed plans to invest billions of dollars in india. The 5 billion deal is expected to generate 50,000 jobs by the end of the decade and it is a boost to the government. Foxconn chairman says he wants to tie up with local firms as the plan expands. To come here. Not just to invest. We are looking for partners. Like a marriage. We need stepbystep. Friends andecome then stepbystep. Sometimes across industries. View. Ent angle point of so, yes, we will be working logistics and four may be you know, our area. The case for up, more stimulus. We will discuss chinas latest trade data and what the numbers say about the economy after the short break. You are watching asia edge. Rishaad some of the stories making headlines. Japan saying Nuclear Power will come back tomorrow after a suspension of thatcher years. Kyushu will fire up their first 10 30 local time. Regulatorsysias will investigate an incident in which a plane reportedly rolled backward. They said to be budget terminal is sinking. Million at 100 blames on problems of the terminal and claims the operator says it is baseless. Rishaad singapore wrapping up its 50th Birthday Party celebration after fireworks, a parade attended by tens of thousands of people. The festivities included a tribute to the city. Facesrrent Prime Minister slowing growth and an aging population. Angie joining me is steve and khiem. Societe generale things the shanghai composite can increase 40 . Get out. We are not in it. We dont want to. How about you . One thing about the asian market we have to recognize, the authorities are prepared to do equity qe. A lot of banks to bond qe. So when people do that, or you going to short or are you going to buy with the government . In the case of the ecb and the fed, everyone was buying bonds with the central banks. Do you want to short against the authorities . It is the same as saying you dont bet against the fed. So you wont. Khiem this is a form of equity qe. Whatever the reason. So the thing is, are you betting against the government . Which has a lot of money. Angie should we be buying what the csf is buying, railways, health care. Should we follow them . Those are the best growth sectors. Angie ok. So what should they do to get the Growth Engine going again . They have a lot of room. Interest rate cuts. Has not sparked a recovery. Or do they need to devalue the yuan . You have to ask the question, how much in order to raise the export volume . Consumers around the world are not buying that many goods anymore. 10 . Japan has to devalue by 45 plus. How long are they committed to that . Khiem the key thing is to cut Interest Rates to 0 . At the moment it is 4 . So we have four basis points to go. Angie how about doing something that is more indicative of a communist party and maybe trying to get, provide social welfare support and get these people spending again instead of saving . Happen, thatat to is a long process. If you look at the Employment Situation, it is not bad. Most people who want to find ins actually have a job china. So the Employment Situation is not bad. Money fory are saving retirement. Saving money to take care of themselves. They have tongs save for. Khiem that is true. When you talk about pension, it is a longterm process which takes time to implement. To get the economy moving, over 12 months, what is required is to give more funds to the. Rivate sector you have to cut Interest Rates sharply to make that happen. Angie what stoked to the u. S. Equity markets when they went from pensions to 401ks . That is a very good thing. A 401 k is a great scheme in the u. S. Has a massive Pension Scheme as well. So does australia. The thing is, the stock market should become more stable before investors feel comfortable about using their savings and invest in the stock market. Said reducing the rrr. That is a problem because the staterun banks, they channel money to their preferred borrowers. Not necessarily the private sector. Khiem in the case of china, you can manage that. There are always ways. Great having you on the program. Angie coming up, helped by hackers. Rishaad embracing the dark side to make cars more secure. Angie details when we return. You have one of these, the tesla . It is billed as one of the most secure his cars. Rishaad experts have been able to hack the cars onboard computer. Here is a look. Im a security researcher. Im a hacker in my spare time. Im the founder of lookout. We hacked aause tesla to build safer cars in the future. Musk is a visionary. We want to see how good his car was. Was it a benchmark for the industry . What were the issues . Ive packed a lot of things. The iphone, the google glass. The tesla took a little bit of time. It was not just about hacking the car. Attack one system, gather information, get access to another system and finally use that to get more information. We were able to get full control over one part of the car. That means you could do everything the touchscreen can do. You could pop the trunk, honk the horn, unlock and locked the car. Switch the car off. Away is thatt take cars are computers. It has more in common with your laptop than it does the model t. We have to think about Cyber Security issues as we do safety. Things are hacked all the time. Hack with tesla. If not me, someone else will. People will be doing it maliciously. It toou want is, you want be found by the good guys. This is the Software Update we worked with tesla to prepare. Click you have to do is install now or set it to install overnight. They can push this out really quickly. The majority of teslas will already be safe. Angie that is it. 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