The event. Fresh industrial profits feeling of the event. Better. G marginally let us quickly check on the hang seng movers. Banks of communications up 4 . Clearing where all of the stocks trade. You would expect that given we have entered a bull market. 10 cents has been granted a license. Its increasing push of by alibaba and others to enter the financial space. Some of the Property Developers we want to keep an eye on. We had news chinas will be allowing debt sales for the first time in five years. Food related stocks. Widened recalls. The provider and suppliers to mcdonalds. Check out china. It is representative of how the food sector is the doing. If it dropped 0. 8 . These are the movers. Nice performance today. Energy leading the way. The energy shares. The 8 share into able market. The fast food scandal. The worse is seemingly gets. Releasedes in shanghai an initial findings. David has been watching since the get go. Paraphrase, a total recall. Yeah. That is what they are announcing. They have fallen. Meatt 70 of the essentially change production. The rest, about 70 have been sold. The rest have been taken into custody. Authorities have held that. Makes it different from the other incidents in china is it is any american company. One of the largest in the u. S. And founded in 1909. It has a longstanding relationship. , it that Parent Company runs 10 factories in china. They are basically saying full recall. All products made out of the shanghai processing plant, we are asking for them back. The Parent Company is not saying we want to rebuild the trust because there is an Ongoing Investigation process right now. Been detainedve so far. There is a new Management Team to make sure its operations are continuing to be efficient and compelled to withdraw all of the products. As i mentioned, shanghai did confirm that some of the production you had raw meat and then a fresh meat and not fresh and they were mixed up. Now, the Shanghai Party secretary himself, the most senior communist member overseeing, took a position and wade and wade in and said they will be candid to the public unlike some of the scandals in the past. Hopefully, get into behind them. I will pick up the post. This is the headline harsh words. What is this piece telling us . The local paper. Mcdonalds first denied that they did not buy anything from the shanghai supply. They did say they did business with the company but sourced from other plants. They have 10 plants in china. What happened is they are saying sorry. People were confused. In fact at the very end, they halted sales of several products like chicken mcnuggets. It admitted it imported chicken and pork. It went very quickly but they did not answer questions. Thank you fors, that. You can get that story at any time, download bloomberg plus. And jordan, apple android, apple, or windows. Recalling more than 200,000 cars due to faulty airbags. Reporter joins us from tokyo. Another round of recalls . And that is a right. 220 thousand vehicles being recalled from nissan. This is related to a supplier shakad, based in japan, which this recall has really touched a number of automakers. Nissan is far from alone. Are essentially controlled explosions when they activate here. Flaotr insulators they make was in a plant with uncontrolled amounts of moisture. Is ais a leading to somewhat rupturing when the and causingeflating pretty scary accidents. A small number of incidents because of the serious nature of and steppedup monitoring of automakers through the first few months of the year from a you are seeing a number of recalls. This is the latest in a long term. Yeah, you do not want your cars airbags to injure you worse than a what ever accident you got into. Do that airbags recalls hurt nissan . Are reportinghey later. What do we expect from them . The expectation should be we have substantial amount of recalls involved in this quarter and related to the plant. The latest recall out of the u. S. Announced over the weekend. Beis unclear if they will included in these results. It wouldption would be probably fall into the following quarter. You will see some recalls related to this. Recalled ah are number of vehicles as well will which tomorrow honda, recalled a number of vehicles as tomorrow. Report they had serious recalls for the fit, which is a new model. It is a hugely important car 400 apan. For honda in j one of the busiest two weeks for japan. Let us see how they ended the morning session. How is it going . Up by zeroei 225. 5 . A little bit of strength but not affecting the exporters. 0. 5 . Nikkei 225 up by mitsubishi, heavy rising on a reported that hit bocce ceo negoti ceo is closer to iations. Stock,ur eye on this moving lower but and lines with estimates. Panasonic is up 0. 4 . A 1uld generate over billion in terms of revenue. The financials. Back shares. Y i want to give you a quick snapshot of the yen. Rising modestly if you compare it to yesterday friday rather. Up toading level and speed on what is happening with korean won. We are seeing currencies moving across the region and one stock i want to bring to you in the korean market very quickly. As i was looking through this, tesco, look at this. Utilities, 5 gain. I was looking at headlines out of mongolia, the power plant. It is all i have at the moment. Up 10 . Tepco, big move for that company. Let us check on some of the stores. The United NationsSecurity Council will meet and 45 minutes for an unconditional cease fire. Hamas said it will stop fire rockets ahead of ramadan. As the cabinet met, rockets were launched. More than 1000 palestinians were killed. Israel has lost 43 soldiers. Released photos of russia shelling across the border of ukraine. The state Department Said that it shows russia backed separatist using force. Netlist said a heavy fighting has stopped them for reaching 7. E site of flight mh 1 malaysia is considering a new name for the struggling airline or. It was losing money before the and the downing of flight 17. Storyn get more on this and the rest of the news, go to bloomberg. Com where you can find indepth stories and interviews you may have missed on bloomberg today. Coming up later on asia edge losses than 800 million since a new ceo of sony. What is the turnaround plan . A difficult job. Why figure out employment in china is so tricky. We will talk with marshall mays. Stay with us. Chinas factories are picking up pace. The biggest jump this year. 18 . We still have concerns about the mediumterm outcome because there is still a lot of imbalances and Property Market which is still showing negative increases in property. Near term i think the momentum is Getting Better but when you look over the next couple of years, theres a lot of risk. We heard a more upbeat outlook from david goad. He said a decisions are driving growth. Policy decisions are driving growth. Not meant to have an impact on the jobs situation. That could put that reform trend. The momentum and china is quite strong and is now recovering. We are getting the best of both worlds, reform and momentum will. We see more increased. Another of our guests is overweight on china. Two months ago, we went all out. There you go. We have to wait and see. What would cause you to scale back . Go upproperty prices which will probably not be onto the end of the year. That is the word from asia. Our next guest is marshall mays. He used to advise China Central bank. What is he telling them now . It is on the rise. Keep the course. Are, please,ns please, do not mess with us. They are going in the right direction. Trade the index as well to stabilize. What about this data we are talking about . A bigger problem is the market gets hooked on pmi or employment. Labor number so we are talking about. Indeed. The fact that the numbers are hard to believe, china is trying to launch more. A lot of old stores. The reality is not cooperating. It was not measured very well before. The best in the world will be in the financial sector. Jim chanos who will be on charlie rose this evening said [indiscernible] bull butot a bear or we are in a point where we need to have the market to go up. Well have a good story. In all have that growth year. Ok. What jimst threat is chanos said. Basically, the market is hell in a handbag it. You can go and keep forgetting about it. Keep building. Not really based on consumption yet. There is an investment need. The problem right now. The need a politically and for employment to have big growth there and the demand for product, not there yet. It could be a year or so. . What would you buy what would i buy in china . Or would you stay clear . The Petroleum Sector. It seems to be a good longterm growth. The iron ore has been a lot of concern over consumption. Ones. Re the big i think the commodities sector has some play right now because people are counting their money. No where to go. Demand for fuel is so high. The americans have to export gas. Ut, the stops have political they need to lift. The bank has to recapitalize. It is based on need and not reality. Marshall, stick with us. Up next, not a bird or plane. The beast. Have a look at this. Well have a look at it after the break. It is been a while since the u. S. Military has stormed any beaches but the marine corps is testing a new equipment that could revolutionize. Let us take a look. Checking other stories. U. S. Isitizen have contracted ebola. The doctor sitting on the left. Seen on the left. Nancy. Her person is nearly 700 people in west africa has died. Ebola does kill about 90 of the sufferers and has no known cure or treatment. Prompted in libya has u. K. A u. S. Officials to advise residents to leave. At least 27 people were killed on saturday. The u. S. Has even he waited the embassy evacuated the embassy. Concordia will be scrapped. It hit a reef and cap size in 2012 killing 32 people. It will be search for the remains of an indian a waiter, the only body never found. The captain has been tried with manslaughter and causing a ship wreck and abandoning his vessel. Trading day in india about 90 minutes aways. We will be over live. The session at the start in sydney. Rising, losing a little momentum. What is going on with the hang seng. Some strong gains. After the break, we are looking forward to the tokyo reopening after the lunch break. Shanghai leading gains across asia, pushing the benchmark to sixyear highs. The man who shorted enron remains bearish on china. Avoiding the crowds during peak season. Where the tourists are heading. Hour inearing the lunch key markets across the asiapacific. Lets head to zeb eckert right now. Lets check in on the markets. We have a rebound for stocks across the asiapacific. Laste on a sixyear high week on the msci. Now at a fullares market, 20 rebound. The hang seng up. Topshanghai composite, 2 for that index. Indonesia will be shut all week. Quarter of 1 t a decline. On these shares as well as some of the two are is himrelated stocks in thailand. In taiwan, modest moves to the downside. The commodityrelated shares have been moving. An uptick on gold. On friday. Pgrade corporation, paladin energy, 5 gains. Constructionrelated companies, we are watching in the later sydney session. We are seeing a modest move on the first day of trade. Across the region, a nice way to start out the way the week, the monday session. In japan, traders finishing their lunch break. The nikkei 225 started out the day lower. We reversed to those declines earlier in the session. Higher. 5 . Chemical, up 3. 5 . Hitachi chemical rising the most in five years. Some of these chemical stocks ,nd some of the exporters gains. Tokyo electron, consistently down over the past three days on the acquisition. However, it is an up day in tokyo. Experts from japan arent what they used to be but does it aint as bad a picture of the economy as it used to . What does it say about the future of japans largest firm . For decades, it is no secret that japan has been known to sold and exported among the worlds [indiscernible] but the numbers are not quite what they used to be. Is still about a quarter lower compared to the peak back in 2008. Icymakers are shared basically pointing twoweek overseas demand to explain the sluggishness in the export sector. Why then are rivals doing well . The next chart shows you the recovery in exports in the u. S. , south korea and in germany. It is fairly clear that japan is lagging behind its rivals. Why doesnt look so bad . If you consider first the currency, the japanese yen, three years here, eight weekend substantially against the u. S. Dollar. It did the same against the euro. Date fell 35 against the south korean currency. There is the price advantage in japanese exports. They are much cheaper. Apart from japanese electronics, which have lost their luster compared to apple, samsung, a lot of the japanese products that you buy outside of japan are not made in japan anymore. They are not considered the countrys exports. Look at the japanese yen over the past 10 years or so. It strengthened substantially against the u. S. Dollar following the Global Financial crisis. When that happened, a lot of moved theiries production overseas to protect their bottom line from the adverse effects of the currency. Whatwhat white the the economist at mizuho had to say. Japanese companies accelerated the shift of production abroad when they yen appreciated after the lehman shock. Goodake a look at one very example, the auto sector. Over the first half of the year, up six percent. They are making their cars there. Honda, toyota, they set production records in the u. S. You take a look at all these numbers, japanese firms may not actually be doing as bad perhaps as the exports picture paints. Has nissans management reshuffle helped . Carlos go it is acting ceo and made dozens of executive changes. Expecting profits of 850 million. Singapore Airlines Reports wednesday and looking for the first loss in two years. Competition is on the rise on two fronts, the highend in the middle east and the budget side from the locals in asia. , if youy of state cary did not have enough on his plate, he has to cochair the talks on bilateral relations in india. Results out of sony, lets look at the aspects. It. Ugh time of the reshuffle going on. This earnings season also focuses on the bottom line. Last year, we saw a couple of forecast cuts. Now we want to see if the restructuring plans at the pc spinoff and to the tv split with the subsidiary with the subsidy, if these are payoff. People are putting pressure on the company to split itself up. But also talking about the tv business, to get out of making tvs, spin that off. Is ahile, the world cup great time for these companies with satellite tvs. And they have is ultrahigh deaf televisions, havent they . 60yes, sony is expecting Million Units to be sold which is fairly aggressive because it 16 Million Units to be siliceous really aggressive. They were sponsors of the world cup. Four k was right center at the world cup. That is with the key focus will be on. Maniacal is what you call a focus. Sony is the only company trying to wish all elements from your television to your handy cam, to your bluray players. They are trying to push their products using content strength and shipping these [indiscernible] and hoping to get market share from samsung. One thing that is working for them is ps for. It did ps 4. It did better than me xbox. If you look at the numbers, the cumulative xbox is still recharged data. Of consoleseration was 165 million. The typical cycle lasts for seven years. Profitability kicks in in the third or fourth year. It depends on what Pricing Strategy microsoft adopts. Cycle, the xbox 360 was priced lower than the ps 3. They cut 100 off the price. So we will see how the its list of titles and the pricing strategies playoff and what they do. Thank you so much for that. For a look at some other stories making headlines for you today. Supply in the china scare has called for a recall. Authorities say almost 70 of the repackaged meat has been sold. Five people have been attained. Icbc aims to raise 13 billion dollars in preferred shares. Bank of china and the Agricultural Bank will have massive share so this year. Chinas four against lenders may have a capital shortfall of 87 billion by 2019. E bo accusesse beat investor in china, jim chanos was once again questioned about that countrys economic model. Heaking to charlie rose, says why he remains unconvinced. Just completely wide open. More and more credit is going to support less and less growth. In the chinese economy, based on basically construction, it is really manufactured growth. The minute you stick a shovel on the ground and put up a building, that counts as gdp. But when you finish building it, youve got to put up another one. It is not based on ongoing consumption. Optimist four years ago is still elusive. And some of those buildings are still vacant. A lot of them and will never be profitable. Gone from a double growth a doubledigit growth to 7 plus. We have two color this with the concept that china is the only major industrialized nation that knows its annual gdp on january 1 of that year. [laughter] because . They say what is going to be. We have a cartoon and one of our presentations of all seven of them sitting around the table and say, ok, the growth will be 7. 5 . How do we get there . There are corporations that do that. I think there are a lot of corporations that do. There is a lot going on for that economy. They have a growing middleclass. They are making a serious effort to deal with corruption. Clearly a serious effort to try to deal with pollution. It is a priority for them. The third priority they say is sustainable economy. Again there are people with very serious ghost. They are serious skills. They are very serious. China. S a saying in the mountain is high and the emperor is far away. Where the rubber hits the road happens at the local level. Int is where the technocrats beijing, although they can direct things, there is a little bit too much faith that is put in the Central Committee and the Planning Committee because, at the local level, it is still to produce numbers. Catch the full interview with jim chanos at 11 00 p. M. This evening hong kong or singapore time. Next, not quite out of the words the woods. Asia edge returns in a couple of minutes. Welcome back. I know you talked about china but talk about the bull run. Not being talked about as a bull run. I read an article five days ago about the annual return to the growth in the last quarter cup quarter, third. It is going to happen, its going to happen. Technically. Word inically is a trading stock of getting things going. I was arguing it was a good buy back in spring but is probably still a buy. Stockd to issue a lot of to reduce our debt ratio. That is part of the restructuring. Issue more stock. The banks do have a problem with that. So there will be growth. But it is a vicious cycle, isnt it . It feeds on itself. And you believe the retail and the people who buy the stuff are just sectors just suckers. I am not being cynical. There is a need. This is the problem i mentioned earlier. The Central Bank Governors try to allocate credit on risk and not on political need. A fewus was talking about oddities that make them interesting to listen to. China is making a shift and it will drop the ball a few times. Will we see more defaults . That will be the number one symptom. Is risk being priced in . Said, yes,ral bank we will see defaults. We need defaults. That is actually required. We should have seen it last week. We had a dollar market we had to follow. In the dollar market, anything could happen. A sharesmestic stocks, only, it doesnt happen a lot because of the loss of confidence. This is the wobble going from real growth to manufactured growth. And we will have some balls drop which means some big stops will be dropped out. You might see stocks that are politically related dropout. There is a need beyond any corruption. Are we talking big Stateowned Enterprises . These will be companies that have been siphoning money from stockholders to the sale enterprise. What we see our breakups in the Petroleum Sector and the motorcycle sector. Thehenever you are on program, it is nice to get a sense of where we are with the world with all of these different tensions taking place. I always appreciate your take on it. Because a good day today is the philippines state of the nation day address. [indiscernible] a lot of people are celebrating something. I think we are in a transition arehich the new generation establishing themselves. Mr. She has had a yearandahalf and a much more complex and bloodthirsty market. Hes got the momentum at the moment. Athink we may see continuation of a real bull run. If i put my money on one of the two markets, india is the better of the two this year. Which government will do better . It is a matter of who can rewardtheir enemies and their allies. India is a federal system. It has a federal system but it doesnt [indiscernible] china is moving from a command economy to something else. Xi ise is very mr. Very intimidating. He has the momentum and then use in his favor. Cjhanos is only the spirit of te age. Mr. Has military experience. There is no doubt he hobnobs with all the central bankers. Im sure they have are your phone conversations. China has no shortage of talent in a regulatory sector. China is one of the best. India has had one of the india has had problems in the past. Then so bes in china are less effective. What about next year . I think they are moving toward a lower number. They changed the script about a month ago because it did not hit with the bull story. It is inevitable. 7 is the longterm. The local growth will the longterm target. Will reachrowth that. That is why the banks have to issue equity. Coming up, heading off on asia edge will be right back. In mumbai, heading in opposite directions, down by 2 10 of 1 . The battle for air travelers in india is heating up. It is the middle of summer and that means time to plan that next vacation. Leadinga look at the cities in Transit International tourism this year. Lucylett johanssons is that about lucille ball . No, it is about drug dealing. She doesnt look anything like lucille ball. [laughter] this is a drug mule. Lucy raising and 44 million over the weekend. 29 million for hercules. Girl power for a number of smaller films that have done well this summer. That . Mp street, remember that was the sequel to 21 jump street. The following is a paid program. The following program is brought to you by supple, the Health Regeneration drink. Hello and welcome to the smart medicine show. We have a great show today. If you have pain or know someone that has pain, joint pain, back pain, bone pain or muscle pain. Or if you suffer from arthritis, osteoarthritis, Rheumatoid Arthritis am a fibromyalgia, you need to stay with us for the