Woodwork, the cost of hedging the index is above the annual average. Of bearish options has jumped. Some cloudss, forming when it comes to the hang sengs performance this year. Stocks,you chinese little changed. Red,ikkei 225 in the easing some of the days losses. I want to show you some movers we are watching in hong kong. Sinopec gaining this morning, jumping the most since december 2016. Wanda Hotels Falling after firsthalf results. We may have earnings the driver when it comes to the hang seng today, on the up for a second day. Rishaad thank you. Right, lets get you up to speed when it comes to first word news headlines. Lets get things started with china. The country has called on the u. S. To with draw sanctions. And russian entities are accused of funneling money or resources to on yang. The Foreign Ministry says it and thethe measures long arm jurisdiction of the united states. Australias high court begins hearings on a constitutional crisis. Lawmakers could be declared ineligible to remain parliament. The law has seen one cabinet member step aside. The Coalition Holds just a one seat majority in parliament. Deregulation. Bank at six of the largest banks in the united states. Analysts estimates compiled by liftberg say they could income by 20 . J. P. Morgan and Morgan Stanley would benefit the most from changes proposed by the trump administration. Corporate japan is urging shinzo abe to tackle debt and the sales tax. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Haidi one of our favorites out of those 2700. Lets look at samsung, hype over the new phone, shares trading unchanged following the launch of its flagship smartphone, the galaxy note eight. Peter l stremme joins us now from tokyo. Tell us about this new phone. To get overnough that note seven debacle . Quite an event overnight in new york as they unveiled of this phone. It is a big phone, 6. 3 inches diagonally. Samsung has specialized in these oversized phones and done well for them. It has a bunch of features in it. They have squeezed the head and shoulders to get more screen real estate. It comes with a stylus like the note 7 did, so following some of these features that other phones had. They are trying to put behind them the note seven fiasco. They cap theing name, the note eight, continuing the brand name. Talk about scrapping the brand altogether after last years troubles. They decided they wanted to keep it and to convey that they feel like they have asked these problems and moved beyond those troubles. They have moved into this new device and are now rolling it out wide. Haidi how high are the stakes . With every new flagship phone is the mostsay it important one, but this one is pretty key for samsung. This is a big deal. They need to move on from the note seven fiasco a year ago. They need to demonstrate they can get control of the battery issues and the other features they continue to put in these phones. Facing rising competition, and apple is planning on coming out with their 10 Year Anniversary phone, so they need to worry about apple in the premium range, and in the mid range, they have competition in china and india, so competition across the board. Rishaad in terms of the apple rivalry, normally the product cycle is different. It is almost like they are lockstep now. Thats right. Have these debuts in the fall that compete with each other. Wanted to samsung rush out the note 7 because they felt like they had a good phone with strong features and cost them in terms of the batteries. The competition is fierce, particularly in markets like the u. S. Were apple dominates the market. Markets of like japan, they compete head on. Andher markets, the note 7 the galaxy line from samsung do morer where consumers are concerned about lower price points, so they are competing at the highend, and samsung competes more broadly with the lower end devices. Rishaad great talking to you. Coming up, chinas oil majors set to report today. How much opec production could impact their bottom line. Rishaad you are with bloomberg markets. I am Rishaad Salamat in hong kong. Day of corporate results in our straight year, south32 reporting earnings that jumped eightfold, underlying profit rising to 1. 15 billion to june. Paul allen is with us in perth. Much is on that recovery tailwind from commodities . It on themuch all of commodities recovery. Coal prices recovering nicely over the past 12 months. Atl is an important product south32 driving underlying profit. There was a miss as the market was expecting better things. The manganese price improved as well. South32 is the Worlds Largest producer of manganese. The ceo said we are just a production to take advantage of higher prices and that is consistent with our focus on value over volume. The diva didnt is looking pretty good at 6. 4 cents per share. Prettydend is looking good to add 6. 4 cents per share. The returns to shareholders continue the theme of bhp an fortescue metals. It is one of the best performers on the asx right now, shares up around 3. 5 . Rishaad let me take it from here. Take us through the of the results we have had already. The oil and Gas Producers have had a difficult time, the lng producers, underlying profit of 150 6 million, but over all million, as of 506 big improvement on what we saw last year with a 1. 1 billion net loss. It has been hit like a series of hefty writedowns on lng plants come the most recent last week of 870 million, pretty consistent with a lot of the aussie Gas Producers having to take a hit and a lot of debt over these capital intense lsg plants they have been building. A copper producer also having a decent first half set of numbers, 80 point 6 million, up from 55 million a year ago. A little better when you the broad approval for building of the worlds secondbiggest copper mine, construction to begin in september. Rishaad nice one, paul. Oz minerals chief executive joins us just after 10 00 hong kong time. Dont miss that interview with the ceo of south32 to discuss the companys results at half 12 hong kong time. Do stay tuned. Chinas Biggest Oil Company whetherlater, showing they have benefited from the recent oil recovery. We have sinopec tomorrow. The numbers with j. P. Morgans head of oil and gas. Ann we talk about improvement in price, not much really. I agree. We look at whether these companies can do Cost Reductions and whether they are profitable. Having said that, sinopec should benefit from good refining margins, reasonable chemical cycle. Aroundg margins are up asia, and chemical spreads are flattish as well. Rishaad not sinopec. You have overweight on that. Are your ratings going to be dictated by who has more downstream and who has more upstream . To some extent. ,ishaad in laymans terms getting it out of the ground and to the petrol pump. Absolutely. Our ratings are based on who can generate better free cash outlook and return cash to shareholders. If you have cash levers to pull like sinopec, goods, refining chemicals, wanting to ipo their marketing business, cash coming in and distributing it to shareholders. The shares are pricing in the benign oil price outlook. Plus, if they have Cost Reduction and lower capex, the free cash outlook is better and the focus is on the dividend. Rishaad what about, which is your favorite . Who is least wellpositioned out of the three . I think petrochina has some challenges. I think they are making Cost Reductions. It is about how can they restructure some of that corporate business. If you look at broader to prices as they struggle hold above 50, is that going to worsen . You guys see 45 a barrel. Response expect opecs to be to that . Very good question. Some shoulderough months on the demand side, so there could he more downside risks. Opec compliance struggling. U. S. Shale ramps up as well. Demand remains robust. 45 is around former soviet union supply. Holding our view and are taking a cautious few going into next year. Has u. S. Shale, are we getting close to a peak . We have had these indications, hearing from halle burton and anadarko that investment is coming down. To thel we are getting point where u. S. Shale is going to be less of a problem . If i look through the hasntng season, capex really changed too much. We are up 60 for e p coverage. Broadlyon guidance hasnt changed much. There has been a lot of hedging this year. Growthk the u. S. Shale is around a Million Barrels a day. And less there is a material divergence, productivity gains will continue and we will see how to hear pans out in terms of whether growth can continue as the market expects. Haidi there is also the party october. Around are you expecting a shift and a meaningful revision following the conference . I think the Chinese Government has been clear. Have the pursuit of soc reform, asset rationalization, and in the longer term, gradual liberalization of energy prices. Liberalization, you just use that phrase. Is a push by central authorities to have consolidation among these three state champions. Do you think that will go ahead . There was talk about it. Rishaad it comes around, doesnt it . When i was in london, the the one i can think of is big debate with investors about what sort of synergies are you going to get out of combining these entities. We will see. The Chinese Government is doing a good job pushing s oes to get more efficient and reduce costs already. It is difficult to see why there consolidation if you cant see synergies. Is this meaningless chatter as it normally is . There has been some comment around further cuts. Case isgan space compliance deteriorates, and you have good examples in terms of targets. Libya, nigeria is a wildcard. They are talking about complying. Venezuela andr whether that keeps tailing off, so i would not say opec is redundant per se. I think compliance will be more of a challenge next year. Rishaad always a pleasure. Eyeing doubledigit growth in asia after releasing some positive first half results. We will hear from the chief executive next. This is bloomberg. Lets look at some of these headlines. Reality will equip some new cars with solar panels to Harness Solar Energy for future models. Audi hopes to present a prototype by the end of the year. Bloomberg continues to improve its Financial Performance in the Second Quarter as investors announced a revolt against travis kalanick, growth of 17 to 1. 7 5 billion, 9 to 645owed million. Ae delay in finding replacement ceo is creating skepticism with mutual funds cutting their outlook for uber shares. Hp delivering a fourth straight quarter of revenue increases. Sales topping 13 billion, beating estimates across its lineup of computers and printers. Shares on the way down after hours. Haidi samsonite shares trading in this catchup session in hong kong. Robust series of gains this year. Of 256r income million. The results when it comes to a shellacking other regions. Its ceo told bloomberg how he plans to turn that around. It has been satisfying for us. Has been consistent. Cross all regions that gives us the confidence the that trouble businesses resilient in spite of all the noise in the marketplace. The noise once again europe continuing to see terrorist attacks better devastating for the region and the world. How are you gauging that right now . Will we seized shrinking sentiment in that part of the world when it comes to travel or sales for samsonite . We dont see that impact. People dont stop traveling. See these acts of terrorism happening now and then does not stop people. Sawpain, the next day we people in our stores in madrid. Getwhole society tends to more immune to what is happening dont world and you want to stop living life. I have a chart from our analyst that shows the breakdown by region for samsonite. See asia a sore point when it comes to regions when you see gains in samestore sales when it comes to north america, europe, latin america. What is happening in asia the moment . Chinese tourists have not hit a bottom yet, but where does he potential upside in this part of the world. Asia is one market that has been less satisfying. Korea for obvious reasons, less tourists than in the past. What are you doing to help sales . We enjoy high market share, ecommerceesting in because that is one area where we are lagging behind. That with an increased demonstration of the Digital Business that we should be able to bring back asia to doubledigit growth. Rishaad that is the ceo of samsonite talking to yvonne man. Looking ahead, the chief executive of oz minerals will talk about the industry later. This is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. From our studios in new york city, this is charlie rose. Charlie welcome to the program. It is the end of summer and as we prepare for the next season, we bring you some of our favorite conversations on charlie rose. Justice breyer the most i can do is my best. I think that all of us, since i have been there, every one of us has really tried to do his or her best. Youre putting out. And as you get older, it becomes a privilege. More and more. You have a job you can go in everyday and you just have to do your best. And then you