As shareholders weigh in. Our investors likely to embrace the deal . Is pretty likely they will, particularly, the minority shareholders are expected to go for this deal, and it is a good one, with will lawrence offering 2. 25 billion, and that beats the david jones retailer with a substantial premium. 3. 19. There was a big spice in the spike in the share price. Votesrity of the proxy are in, and it represents 31 of shareholders, but it is not going to be as simple as all that. There are a couple of wildcards in the mix, and one of them is an investor who is quite well known in australia. He holds in over nine percent stake in david jones. Now, the company is offering to stake, the deal being contingent on the david jones been. Bid. Others are taking an interest in the extra deal, describing it as it may be an inducement to lew and could be a breach. Vote in favor, it is not going to be the end of it. Therell be a Court Hearing into the other matter on thursday. David jones. A big vote. Acord who iss that looking at this and also some other stocks this morning. Good morning. Seeing movement in the commodities market. Good morning. Hopper is rising. We are tracking that as well as some other commodities, and as you look at australia and other benchmarks, you are seeing the ms ei asiapacific index is rising. In fact, rebounding with commodities. The afx is up. Resorts has a seven percent gain. At of the biggest movers, its june quarterly production beating forecasts, so you want to watch that, trading above its upward bollinger band, for those who track stocks. Up 3. 4 , one company says it has not made any formal decisions on a stock i that. A final deal for with constellation group. Markets around the region, this is what we have. The kospi is advancing. By abouti 225 changed one point 25 , and in singapore, you are seeing a mild move. Taiwan. Lets check out the movers in japan this monday. Olympus, the camera maker moving in the markets. At australia. Here is what we have. Hopper is advancing. Performanceed there. As we take a look at stocks that are benefiting or moving, fortis key metals. Cut. Nother stock has been a snapshot of the market, as i said. Copper, and looking at gold, unchanged pretty much. We have some increasing optimism creeping back into the markets this monday across asia. Other stories making headlines this monday morning, a british corporate sleuth and his wife are on trial in shanghai. The holding back of humphrey and his chinese born wife are related to a sex tape at the drugmaker. Writer equity group is making a purchase for about 1. 5 billion. They say it will help to speed up growth in chinese markets. A stakegreement to buy in another country, the nikkei cash and swaprted in the deal. It still needs regulatory approval. Trackings the location of the iphone cannot be used to track user activity. Trackerthe location collects data and may even lead to state secrets being linked, we have more. You have got an iphone. This is what cctv says. The location tracker is a security concern for them. The hat at the Peoples University of china, and apple it has never worked with any Government Agency from any country to create a backdoor, and they also say they appreciate the cct efforts to educate the public. Inwant to make sure all china are clear about what we do and what we dont when it comes to privacy and your personal data. That information is only stored on your phone. Third parties cannot get access to it. Used incker feature is a lot of apps. For example, if you are driving. That need some kind of location function in order to find out where you are. And if you lose the phone, you can track it. But this is not the first time that apple has been under fire in china, is it . That is why last year, the ceo, tim cook, offered and apologizing. Offered an apology. Cctv was talking about complaints focusing on the fact repairedeplaced broken phones as opposed to replacing them, and they were also criticized by peoples daily for poor customer service. And they were looking at resetting the warranty to one year, and template did offer an apology. Many phones are criticized for various consumer issues, and they are trying to raise protection. Every year, there is a program in march on cctv, and in it, it targets not Just International companies but also tiny companies, as well. Apple, again, underscored me in china. Win for germany, the first for unified germany, just beating argentina to take the world cup title. Reporter was at the game, lucky man, and now joins us live. Jubilant germans, not so jubilant brazilians. Tonight, the german celebrations are combined with other celebrations. Germansne side, the have managed to conquer them. On the other side, the brazilians have avoided the biggest shame, which would have been for argentina to win the world cup. Between the german fans and the brazilian fans. There are some at the copacabana. But a very bittersweet jubilant situation. They were beaten again by the dutch. They are probably not that happy. Yes. They cannot be that happy, but they are relieved overall. A potential win for argentina in brazil. Tonight, they are happy, but ,hey had been very discontent and there are a lot of questions and about the coach. The next few days, we are going after that future quite, quite bad situation, given the last two games. How with the tournament go down in world cup history . One of the best ones . It is not only one of the , and it was the best of the tournament. Difficult it is very for europeans to win in latin america. They have not done that before. They managed to conquer the cup. Undoubtedly, it has been a great performance by the germans. Thank you for joining us there from rio, juan pablo spinetto. Still to come, one bank and several worries. One of portugals biggest lenders as sure as the debt crisis is very far from over. Back. Come it is monday, july 14. A look at the stores we are following this week. Getting today, expect billions the biggestnd carrier is in talks. This will continue through the week. And the latest indication of how the China Economy is performing. Gdp out. They are looking at expansion holding steady. The Las Vegas Sands is still growing despite the strain on macau. Analysts expect net income to rise. Thursday, chinese president xi jinping will be on tour for the second time since taking office. He will go to argentina, venezuela, and cuba. His trip last until july 23. And very much looking at , and theto the fed head of asia investments, thanks for joining us. Being german, you how do you feel about the german victory, being swiss . Of course, i would have preferred for switzerland to win, but that probably will not happen in my life. The impact on the markets . , theusly, the said reserve testimony this week is very important, probably the most important market event. Probably. What we have here is a situation where the fed clearly still wants to delay tightening, although signs indicate things are picking up, and the labor market keeps in proving. The question is, what is the fed going to do once inflation reaches three percent by the end of the year, which is possible, and unemployment is at 5. 5 . Islooks like janet yellen preferring some strategies, and it is a dangerous strategy. You are saying to brace yourself for a u. S. Crunch. A real risk. What are you talking about . And how bad . Well, i would not call it a crunch. But we have inflation rising because the import of labor in the economy has increased, which means liquidity has plunged, and what we have as a result of the fed zero percent Interest Rate policy, although companies are borrowing, they are borrowing to buy back their own shares instead of plowing the proceeds back into the economy in terms of capital spending. Capital spending has been at about four percent annualized for the last several years, and that is just enough, so i think more will be needed. I think the fed does not have any justification anymore. Therefore, behind the curve. Is aterest rates going up very possible scenario, probably next year . I think people are talking about the first and Second Quarter of 2015. If inflation is at three percent by the end of this year, then the fed will face a tough decision, and then we will see what they are going to do. Thats the across the pond to your land, if i may. Mario draghi said he would do what it takes. What is your concern, apart from the portuguese bankers. . We are still overweight europe. We have loosened the overweight a bit in favor of japan. As far as the euro zone is concerned, it shows that the crisis has really not been resolved. Structural changes have not taken place because the debt what happened back then, what mario draghi said, he will do anything to safeguard europe, and i think that was enough for the markets changese job, and the have now taken place. Although we do not think there will be an outbreak again of of the euroin 2010 financial crisis, the situation remains serious. Set is the debt crisis over or not . On the surface, it is, but it actuality, it is not, so we have to brace ourselves for more to come, and i think policymakers atd to take a hard look whether the past policies have worked, but the ecb is most likely to expand quantitative possibly, and look at monetary easing for this. Putting that into perspective, what are you advising your clients . Are you doing asset reallocation . Well, we stayed overweight equities. In certaint bubbles asset classes, notably in bonds, and notably in junk bonds, and some emerging markets, as well. Mentioned, we are still overweight europe, though to a lesser degree in favor of japan. We like the japanese equity market because the bank of japan is still likely to expand qb if e if itmes expand q becomes necessary. As the head of investments, when your team comes together, what are the concerns . You know, i think clients really are worried what happens when finally Central Banks normalize policy. How they are going to do it is anybodys guess, but what is going to happen when, lets say, the fed raises Interest Rates . Are stocks going to plunge . Are stocks going to collapse. We dont think so. When you have an inserted yield worry,there is the major apart from some geopolitical situations that we cannot control, of course. Many thanks for joining us. The head of investment joining us there. In a moment, back on the radar. Stay with us, on bloomberg. Back. Come david jones just voted in favor of will words buying the company. 80 ofirman says over the votes are in favor. And pursestrings of a military to look atcing some the aviation sector for growth. One of the biggest defense contractors wants to cash in by working with planes. He is responsible for refitting planes for the military, but he and the company k, works for our changing tac comforto the cobbler of luxury. From the exterior paint finish to the interior in any combination, so whatever leather, whatever carpet, whatever seating arrangement you want, we can do all of that work here from the design specification. Heard ofght not have marshall, and that is the way they like it, but the company has an annual turnover of more than 1. 5 billion. Its bread and butter is servicing military planes. That makes that 80 of their aero business, but times are changing. It is becoming more and more competitive as customers drive for value and military budgets are being cut. This is the bombardier. A bigger name, bigger price tag. Marshall once a piece of this. But for now, something slightly more affordable. This is a citation, about 10 years old. It would have been made in america and probably costs about 9 million to 10 million if new, and this one is about 2. 5 million that you can acquire this. Puppy forgetting your checkbook out, there are some costs. To keep your plane in the air, it will set you back at least 800,000 a year. That is money marshall are hoping to take advantage of as military contracts wayne. Bloomberg. Cargo ship is on its way to the space station. It blasted off from the virginia carrying odor free gym clothes. To rendezvous in wednesday. At next, across china. How does china deal with pollution . We are going to find out one way through a fleet of government cars. That is next. Do not go away. Clearing the road ahead. News for cleaner government cars. And new production in southern china. And mongolias culture keeps the world cup on site. [captioning made possible by bloomberg television] details on this all morning, how did they vote with the woolworths takeover . John, the takeover looks like its going to go ahead with 89. 6 of shareholders voting in favor. Its a pretty generous offer, too. Values the company at 4 per share and when that offer was made david jones was trading at just 3. 19. Pretty healthy, so no surprise that the shareholders voted to accept the offer. A lot of the questions really to do with the protection of the david jones brand. Its an australian institution. The Department Stores been around for 176 years. One of the questions, for example, a shareholder wanted to ensure that the trademark instore pianoists would be retained. That received a rousing round of applause and the vote went ahead. Hopefully they will be able to keep them even when south africa takes control of david jones. They may have voted in favor, but there are a few obstacles to get over . Thats right and questions remain namely over the voter tention of sol 0 om solomon lew. Its unclear yet which way he voted because woolworth south africa was trying to gain his support by offering him 17 a share to buy out his shares of country road, a clothing retailer. Thats when the australian securities and Investment Commission got interested. They believed that could be a an inducent and a breach of stock holder principles. So there will be a Court Hearing and even though the voters shareholders have voted to accept the offer, that may not be the end of this just yet, john. Now to zeb for the opening f china and on to hong kong. Seeing generally an update or stocks across asia. Concerns about valuation in the european economy. Remember we reported on banks in portugal on friday. Dataheavy week now. Lots of data coming from chineafter in particular. Shanghai starts the day earlier. Well get you into some of the movers in just a moment. But lets take a look at whats happening elsewhere across the region the not just limited to china, we see gains all across korea and japan the the topix is up from its july low which we saw at fridays close. And the b. O. J. Policy statement is due tomorrow. Well be watching that. Elsewhere, malaysia, singapore, and taiwan, seeing mixed performers today. Capital mall among the key movers. Were watching topper copper as wrl as cold. Gold is at a fourmonth high if my memory serves me correctly. And commodity shares tracking in sydney today. Northern star rising a fourth day. Its june quarterly production numbers beating forecasts. Karoon gas, nice performer, up 3. 23 . And fortescue is down. Lets end on hong kong and china. Key stocks moving to the upside today. Sino lab, up 1. 6 . A new project called mayfair by the sea sold for 140 million. Air china advancing on reports that bank of china may be that air china may be buying new jets. And b. Y. D. , the government likely to increase the share of Energy Efficient cars. So maybe not as many a8s in the mix. Now, shares of chinese car makers have in fact started trading. This after beijing order marching marched orders. David with bring us up to speed. Excuse the pun. Which you wrote, by the way. Thats right. Every year the government buys a new fleet of vehicle. There is a requirement now that by 2016, 30 of what they buy will be alternative vehicles. Thats either electric cars, plugin hybrids or fuel cell. Thats the requirements for city. Outside the big city, places where pollution is not as bad as beijing. 10 this year minimum, 20 and 30 by 23016. Thats the statement right there if you want to take a look at it. Incentives. Youre handing me a statement in chinese. What . Le camera couldnt zoom in on that but david just gave me a statement written in pure mandarin. Thats mandarin, right. Which you can read, right . Im ok. So thats mainly what it said. I guess more than government purchases it really has to i guess spill over into the consumers space. Talking about 22 million vehicles in china across the board sold. Out of 22 million last year, less than 20,000,. 09 , were electric cars. And they put a lot of these subsidies in place. Still, 500,000 of these on the road, thats the target. Its a good step. They hope to gain some traction. Which companies are going to benefit from this change . Byd, obviously. He stock i think is up 2 . Seic, for example. Faw. Photoon. Theres a car park stock thats listed that could also benefit here. Apart from that, i forgot to mention just last week they actually announced this tax break, so anyone who wants to buy an electric vehicle between september to all the way up until the end of 201, you actually dont have to pay the 10 sales tax on cars. Of course well see if this druzz does prove decisive. Theyve put a lot of these financial inkent incentives in play but none has gone anywhere. Actions speak louder. Now to the world of corporate. Cleanup work at the fukushima plant last summer may have con taminated a stited 20 kilometers away. Bank of chinas Aircraft Leasing unit is said to be nearing deals for more boeing and air bus planes. Sources say theyre interested in 35 air bus a320s, and competing p boeing models may also be ordered along with 777 planes. The air show starts at farnsworth in the u. K. Today. Appal has dismissed concerns that the phones pose a security risk. State television had said the software could be used to collect data and result in a leak of state scratess secrets. The allegations come amid an escalating war between beijing and washington over allegations of spying and hacking the is going green. The new factory is looking to produce 8 billion worth of annual out putt by 2018. Foxconn has a vision, a another Silicon Valley in the east. We send a lot of highly skilled people, engineers here. They love this place. Its temperature, humidity, air. Its the only place aside from beijing that can call itself chinas sillison val iments two are partnering with foxconn for the echo friendly mpus produced largely with recycled steel and produce smart phones and tvs. Nearby, china unicom, mobile, and telecom are also building facilities. Go says all three will be chipping in to build infrastructure around the air. By march 2015, the Company Projects annual out fut of 5. 6 billion with 12,000 workers on site. Theyre touting this as their greenest industrial park. The glass here is all selfcleaning. They treat waste water on site and even the food is tested for safety. Its a beg step forward from past investments. Why . Probably because it embodies what foxconn wants to do eventually, working with the countrys Top Countries at the forefront of high tech industry. Eventually they want to service their clients at every step of the chain from components to consumer and perhaps one day may even supply clients all way from Raw Materials to final delivery of products. This takes time. Maybe three to five years. Then were going to do some robots. We dont want to go back were traditional, the labor intensive jobs, ok . Simple and then boring the big ambition. But for a country with 30 production areas across china and employeing employing a million people, its perhaps not too high to climb. Up next, a littleknown lender in portugal manages to ratdle the markets. After the break. Welcome back. The bank of japan meets today and tomorrow. Obviously concerns about a ropean debt crisis are reemerging. Lets get to the most important thing today you are a very proud and happy german, arent you . Not that i had anything to do with it have you slept . Not a whole lot. You spent seven years in a german submarine in the navy. Right. You are pure german through and through. That is true. And its the first victory of a European Team in the americas. As a unified germany, too. Its great. Its a new generation and this generation that had been developed result of german reunification asmed did. And now this generation has made it. Were you watching at home or with friends . At home because at that hour who wants to be ununless you have a good reason for it . That is a good reason the a good reason the putin sat next to angela merkel. No idea why. Putin happened to be in the neighborhood. He went to nicaragua and saw his old buddy, mr. Ortega and then i guess he stopped by in brazil. Why not . And its a great history. The president was there too, an east german. Very interesting the congratulations, anyway. Yes. Obviously you had a big hand in that. Apart from that, germany wins so germany is the strongest and also the strongest economy. What is not is portugal right now. Concerns about the debt crisis significant he how is Banco Espirito . Very difficult to make an assessment at this point because theres a lot of i dont know, individual aspects of that with respect to this particular bank and its not clear that the other banks in portugal are affected in the same way. The important thing is that in order for this to be resolved the european economies must move and theyre not. Theyre going the other way. May Industrial Production was horrible across the board, including in germany but really very, very bad in france. France is the biggest concern right now. And ecole has a big share in b. S. E. Why . Because of policy and because of the fact that they cant seem to be able to getd their act together on labor policy or anything else. This is a real difficult situation. Do you think another debt crisis is oncoming . I think that depends on whether or not in particular france and italy want to make the rorls that they need to do. The new italian Prime Minister allonde dont seem to be interested in that. They seem to be interested in spending more money, money that they dont have. If they go with that attitude, markets will punish them. You could argue that banks are far better capitalized now across europe than before . No question, but that doesnt necessarily help because if you are loaded with a lot of bad, nonperforming loans, under those circumstances you have a problem. And if your top line growth doesnt go anywhere and you are not lending money, the banks are not lending money. European money is negative. Your clients talking to you, what is the biggest worry . I think its not really the biggest worry, but its refur resurfacing as one additional worry that people didnt want to see. That makes the thing a little bit troublesome. So i think the fed will not raise rates any time soon. Absolutely not because the u. S. Economy is doing absolutely nothing. And affirmed triplea rating status . Well, that helps. Good timing indeed. Thanks for joining us. Thanks. Now, some people were disappointed with independent ars budget, while others indias budget, while others said its not too bad. Thats the topic of todays global outlook. Well, theres a price that those who were expecting sweeping changes, they left the budget doifers target unchanged how does that affect the stock market . First, two views, coming from citi bank. They described it as mildly market positive and there was hope for what they called real Economic Sensitivity and earnings policy. Banks because of the potential or spending and loans. Second, the infrastructure. Third, cigarettes. Why . Were look at lower than expected taxes. And fourth, property. Now, overall they remain positive on the stock market. If you look at the forecast, by yard end, 23,600 is their target. 25 thround is where we are right now 25,000 is where we are right now. Another note from Morgan Stanley. Key things to watch for them are government spending, tax cuts, and higher Foreign Investment in places like insurance. Stock picks. Theres a list from Morgan Stanley. You have two industrials right here. This bank. And i. F. B. Other picks, unilever and Jubilant Foodworks because of higher exemptions in personal taxes. And the forecast, by june 2015, thats the level Morgan Stanley sees the index at. 4 upside from now. Thats the outlook for today. Still to come this hour, the world cup celebrates culture and tradition. A special report. This is on the move, back in a moment. A month of earlymorning futbol has come to an end. The only goal of the game, coming from gotze deep into extra time. Both sides had chances but it was germany, the unified germany, who lost hoisted the trophy 20 years ago in 1990. Fans around the world watched the game. Mongolia prefers its own sporting and cultural events. Heres how one festival is helping boost the economy. An escape from urban life. A combination of the old and young. The naadam festival is high on tourists lists. I knew it was the year and its the only month of the year where its quite warm. Nucks of the Statistics Office showed that the most number of tourists come to mongolia in the last two months of summer. That makes up one third of all the tourists coming to the country around the year. The government is planning to use attractions like this to dub the numbers. The country is planning to double the number of tourists it receives by to one million. The goal made it possible for visitors from 42 nations to explore the country without visas. Offering them visa facilitation and also we would like to increase our nomadic cultural events and support our events and were very optimistic lots of people will want to see this unique culture. Whether or not the Company Country can keep its twodigit Economic Growth in he mining sector, the citizens will keep conquering the vast steppes of the country. And in the nba, one of the last mysteries of the Free Agency Season has been cleared up. Carmelo anthony is staying with the new york knicks. He reportedly signed a fiveyear deal worth more than 100 million after rejecting offers from houston, dallas, and l. A. In the next hour, on the move returns. It was a convincing those, 89. 6 of shareholders in favor, taper for deste. 4 against. 10. 4 against. Billion valuing the company at four dollars a share, which was an excellent premium over what the stock was trading when the iphone was made. The meeting itself was quite lighthearted. The shareholder questions concerned protection of the brand which has been trading under the name david jones for 176 years in australia. Shareholders wanted to make sure the name was kept. There was also a round of applause when asked whether the inhouse pianists would remain. I believe it now heads to court. Yes, it does. It is not quite over yet. There was a screaming deal on noon. De for solomon it would have been enough to block this deal. Solomon lew took up that deal. The australian securities and Investment Commission was callingabout the offer, it an inducement and maybe a breach of equality of opportunity principles. So there will be a Court Hearing on thursday. Gave the Shortest PressConference Ever after the results were announced. He made a very brief statement welcoming the deal. Take anyo questions and walked off. Sri lanka has left rates unchanged. Governor, many thanks for joining us. Several were forecasting a rate cut but you kept rates unchanged. Why . I think the rates seem to be appropriate to our overall growth. We have been pleased with the way it has been moving with growth remaining strong and inflation remaining at levels we wanted it to be. So it is a very good situation for us to be in now. There was a little bit talk with raton thats with regard there was a little bit of talk but regards to the banks, other than that the main thrust of the economy seemed to be performing well and we believed it was not to make not time to make changes at the moment. Would you say a rate cut was imminent or not . The rate cut say is due particularly because the effects of air radius policy measures need to also filter previouserly of our policy measures that need to also filter down properly. It gives us more confidence to maintain those same levels. We are watching the credit growth carefully, but it has been slightly low because there are many other sources from which businesses are able to have money coming in to their businesses. Of course, inflation being low makes the overall credit growth to that extent need to be shrunk so there is no additional pressure on the banks as a result of higher credit being dispersed. The west are looking to raise rates now. The top of normalization of policy. Pace and timing responsive to conditions with emerging markets are a concern. Aat should the fed the giving message tonight and tomorrow night from janet yellen . Will do what they believe is the best cause of action for themselves that has been the way the fed has been making their decisions all these days. I dont expect it to be indifferent. The fact that the u. S. Economy has been recovering is a very good sign. I am sure the fed will take that into consideration. If the u. S. Economy is recovering the way they believe it would, i believe the need for additional stimulus will be reduced. That will be a bit of a signal for the rest of the world to believe that the stimulus that they had been using to keep the stage would in that probably be removed in due course. With that will come normalization. Thatl have to understand earlier the normalization process starts kicking in, the better it is for everyone because that we know it is not artificially keeping up a moment them in the world and it is fundamental ins fundamentals moving it forward. There is a little bit of adjustment that was pain to people. It would be far better overall and in the longer term. Thank you for your time, governor cabraal. A surprise contraction for singapores economy last quarter. Manufacturing slumped hurts by tightening labor markets. Lets go to Haslinda Amin for this. Again, if you saw this coming, did they . You bet, john, a huge surprise. The market was looking for 2. 4 gain. A does look like a slump in the services sector. The severe labor crunch not helping. Services accounts for two thirds of gdp. Manufacturers grappling with that in singapore no longer wants to be dependent on cheap overs is workers. That translates into higher costs for companies. Attract really is to new Industries Like r d. Until then, singapore will remain susceptible to fluctuations in demand. Down a tad on a mostly positive day for asia. But up 1. 5 this year versus the dollar. Also, how does it look for singapores economy with numbers going ahead . What are the biggest risks . A lot depends on the labor market. If the tightness persists, growth and some labor will be hurt. The other thing that can weigh on growth. You talked about the fed earlier any unexpected increase could and dont forget china. Reigning in credit growth is not good for singapore. U. S. And thein the recovery in europe in the second half, one Economist Says singapore will not be able to economize to capitalize on the global progress. Stocks are rebounding since the gauge. Asiapacific msci , concerns of the economy but a rebound. Singapore is an exception. We see the Straits Times industry betraying gains and Straits Times swaying between gains and losses. You are seeing a nice advance, three tenths of 1 for the jakarta composite. Malaysia advancing today. Philippines is having a bit of downside. The kospi and indicate 225 rising in north asia and the nikkei 225 rising in north asia. Havese carmakers, we reports that the government in china will see to advance the proportion of electric and Renewable Energy cars on the roads that are part of the government fleets. That is what we are seeing today. Byd seeing a healthy gain , 3. 4 . The chinesee on automakers today. In a month of Early Morning football has come to an end. The only goal of the game came from mario goethe. It was germany that made the final breakthrough. It was west germany that last lifted the trophy back in 1920. Location location, when on the move returns. You are watching on the liv move. Economists believe that expansion will hold steady. Aboutvery interesting talking to most nationals how to expand in china. I must ask about the football. The thunder orff is a german name but you are fourthgeneration dufendorf is a german name but you are fourthgeneration from argentina. You have had no sleep. I have had limited sleep. [laughter] you have to applaud them. Great team. Job well done. Lets talk about china. You have done a lot of interviews. Talking about how Companies Need to expand throughout china and what they need to do. Multinationals crucially. The new book is the rise of the new east. The point of this is interesting wednesdaye gdp this is very crucial. What do they need to do to expand effectively . What we are hearing among conversations among Senior Executives is it is no longer enough to have a residence in china and chase gdp growth. The real question is where are you in china . Are you in the fastestgrowing region . These are parts of the country where it is less leveraged. Gdp growth slows in the rest of the country, these are the parts of the country that will make the most for multinationals. We are starting to see a change in the way china invests abroad. Bylooking to buy bands brands and technology. Looking to tap into what is going, services spending. So if i am a Small Business enterprise, why should i be in china . You should be taking some easy entry points. Perhaps you are in the retail and Product Services sector, you need to enter some of the larger coastal cities where, yes, competition is tough but there is greater purchasing power and theumer sophistication for businessthat Medium Enterprises are excelling. It can help you survive and a Slower Growth environment. It is more effectively deploying your brand, your ability to use shared services to cut costs, operating smarter, focusing on value and not just volume. Hancock, bangkok, hanoi, it makes sense. Cairo is different. Many are sourcing out of hong kong and are increasing with the purchase from egypt because of chinas rising prices. Egypt is a little bit unstable at the moment but retailers are looking at that instability and re because the they can ship to european markets and lowers the sales price. Gdp, howbout china, reliable is this figure . Around 7. 5 . We think growth will be steady. What a lot of multinationals are really interested in is do we have the right Business Model . Growth is strong but, if we dont have an effective multichannel or online sales presence, regardless of where gdp growth is,. We might be losing money. Is it reliable . Improving, but trying to capture the Economic Activity of a billion people is difficult. The chinese are so determined to reach 7. 5 as pledged by premier g jinping. They will do a lot of spending. I think they will do limited spending. Back to your point on the liability, what the figures do not measure is spending in the services sector. Groups said to us that consumers are desperate to spend particularly on the ledger sector but they have limited opportunities to spend. Gdp figures do not capture these kinds of spending. Why should i buy a book . One of the few books to look at the region as a whole. I talked to some of the smartest people in the region, some of the smartest operators and the book contains their wisdom. Thank you very much. Can a moment, foxconn has big plans in southern china. Apple says they Location Tracking function on the icon cannot be used to track users activities. Ross chin is here with more. You have an iphone. I have an iphone. We dont have state secrets. It, which i do often, you can use the function and there we are. They have said the location device could lead to state secrets being late being leaked. That it has never worked with any Government Agency from any country to in any ofack odoor the products. It is software protected and not accessible to other parties. The traffic the tracking andrmation is for taxi apps for tracking devices if you are driving and using it as a gdp directions device. They want to make sure that all customers in china are clear about what we do and your personal data. The tracking option can be turned off. Apple is not the only company that is targeted by state media. Thank you for that story. Apple supplies going green with a new production in southwest china. Produce 8 is to billion worth in annual output by 2018. He has a vision, a bustling tech company with a dynamic population of engineers. The Silicon Valley of the east. We sent highly skilled people here. They love its place. It is a good place to build a hightech hub. It is the only place besides aging the can call itself the china Silicon Valley. With the help of peking university and semiuniversity. An ecofriendly campus built mostly with recycled fuels and house 130,000 square meter r d cener. Center. Unicom, china there will be chipping into develop the area. Foxconn is touting this as the greenest and eventually must hightech industrial park. It is not the manufacturing process that is green. The glasses alternate insulating is old translating ul trainsulating. Foxconn wants to do is move up the value chain, moving away from laborintensive low profit workinganufacturing, with the countries top brain trusts at the forefront of Top Technology industries. Services at every step of the chain, from components to consumer. Perhaps one day, they may supply clients from Raw Materials to final delivery of consumer products. Once we build a foundation here, maybe three to five years, then we will [indiscernible] want to go back to traditional, using laborintensive jobs. Big ambitions. For a company that has 30 production locations across china and employees over a million people, it is perhaps not too high. Get more on that in todays top stories on our website. Nba mo one of, in the last mysteries in the Free Agency Season. Anthony signed a deal of 130 million after rejecting offers from chicago, houston, and outl and l. A. China rolls on new rules for government vehicles. We are live in jakarta. An indian budget, some say a missed opportunity. Others expect stocks to soar. Time flies when we are up here. Lets take a look at what is happening. We see gains for the hang seng index as well as the the Global Recovery weighing on Investors Sentiment but a bit of optimism creeping in today. The kospi index in south korea, the nikkei 225 in japan, Economic Data out of japan ahead of the boj meeting. We have data coming out of china as early as today as we watched gdp growth. That is expected to remain unchanged. Also key data on inflation and other metrics. Elsewhere, telecom oddities moving the asx 200. Leading gains, northern star, the rare earths producer, and nrw holding three percent today. We see copper advancing. Gold is also higher in the market. In on electric and other carmakers in china, a report that the Chinese Government will reduce the amount of emissions that the cars in its fleet produced, looking for cleaner energy fueled cars. Beijingcomes after released new march orders. The chinese car stocks are rising in most cases. Yes. Driving it excuse the pun your chinese story. Yes, the statement coming out. What it basically outlines is the requirement for Government Units as far as how big a percentage of their fleet cars withshould be in alternative energy sources. It is 10 for most of the country. It will go up to 20 by 2015. So about a third of all government, new government cars by 2016. By 2014, these places where you have the highest levels of pollution, beijing for example, the requirement is actually 15 . 2016, beyond 2016, the minimum will be going up but they did not specify. 10,you look at the latter, 20, perhaps 40. Longerterm, you want to phase out regular cars. That is speculation but, again, this is the latest measure introduced. This comes after a series of measures. A few months ago, there was a plan to scale back subsidies in the electric car market. They decided to slow down the reduction of that. It was supposed to be a cut of 10 but it will be cut by 45 . There is also this tax break. Electric byto buy the end of 2017, you do not have to pay the 10 purchase tax which comes on top of the selling price of the car. We have seen a lot of these subsidies in place. Which companies will benefit the most . You look at the big names in china. Most, if not all of them. Auto, g lee auto. C. E big ones, sai all of them in some way are related to the electric car market. I mentioned the tax break today announced last week. It also applies to qualified imported electric vehicles. It paves the way for foreign carmakers like tesla, bmw, volkswagen to also benefit from this waiver. They need all the help they can get because they are still quite short of the target. 500,000 vehicles by 2015. Thank you. Chinas aircraft producing unit is said to be increasing deals. Boc aviation is interested in about 35 airbus a320 neos. Bloomberg tv will be live at the air show today. We will be talking with john leahy. Just after that, boeing ceo jim mcmahon he will join us live here live on bloomberg tv. We are still no closer to knowing who will be the next leader. Both candidates have claimed victory. He says he wont give up without a fight. Now they are just waiting for july 22 win Election Commission officials declare the winner of the president ial election. This will be a test to prove impartiality. While the streets are relatively quiet, the result seemed questionable by either side requests legal challenges and public protest. They are ready to reserve competence desk offices shall confidential rides. Overall, the dispute over the election result is not having a positive them act for the market positive impact for the market. Other stories making headlines thousands of people in northern gaza. Israel ignoring International Calls for a ceasefire. At least 160 people have died in just six days of violence. Israel says it is updating plans for a possible ground invasion. Leadingd the u. S. Are International Calls for a stop in attacks on both sides. The ship ran aground in 2012. Up rightlated and set last autumn and will eventually be towed to genoa for scrapping. A cargo ship is on its way to the International Space station. It blasted off from the virginia samples,rying food, and odorfree gym clothes for the crew. It is due to rendezvous in orbit on wednesday. Germany is celebrating after winning a fourth world cup. Thank you for joining us. Resiliencee that were jew that brazilians were jubilant in the crowd. Absolutely. A 71 semifinal defeat reid is ago defeat three days ago. [indiscernible] i am seeing a lot of brazilians sporting the german insurance and they bought for this day german shirts they bought for this game. They were seven minutes away from a penalty shootout. Pretty close, pretty intense into the final mark. Absolutely. It has been an intense and dramafilled competition. Not allowing any extra time for jiminy to when the turn for germany to win the term it but tournament. Have13th minutes, we it turn on a sixpence. Germany, the ultimate machine, they almost deserved to win. But costa rica playing so well throughout. That is one of the stories that people here are making. Royal theo the world cup heavily fancied to depart. They were put into this group with three or four world cup winners with uruguay and italy. By the second game, they had already qualified for the second round. They ended up winning their group. Rica defensive did not seem to bother the spectators or the people at home because it was so fantastic. For one ofpenalty the penalties [indiscernible] i picked the costa rica and goalkeeper through the same like picked the costa goalkeeper who seemed like a magnet. Celebratory experience. We are going to hear about one Company Helping apple and facebook increase their memory. Welcome back. We are on the move. Look at ang to company that provides storage solutions. It is monday, july 14. These are the top stories. The possible takeover of australias david jones. Shareholders have approved a 2 billion bid with 90 of investors saying yes to the deal. David jones is currently suspended in sydney. Germany has won the world cup for the fourth time, beating argentina 10. Both sides had chances but it was germany that made the crucial breakthrough. First win for unified germany. West germany last lifted the trophy back in 1990. Apple says the Location Tracking function on the on phone cannot be used to identify users activities. Cctvfollows a report by that claims a location tracker can collect data and could lead to state street its state secrets being leaked. Talking about apple, our next a companys from providing flash memory. He joins us from singapore. Many thanks for joining us. You are in singapore, a big launch. How big a game changer is this . We think there is a major transformation going on in data centers around the world but no asia. O than here in google, microsoft, etc. , we think there is a tremendous need for a new way of looking for how to build out those data centers to get the best return in investment, specifically looking at things like power and they cost of fueling those dissenters at a time when data growth is growing exponentially. Reporty, there was a suggesting that 90 of the world data was created in the last couple of years. This explosion of data and the challenges of how you manage that in a Data Center Environment is what fusion io and the atomic series is all about. Making the shift from hard disk to flash storage. What are the risks if any . Hard disk drive technology has been great for many years. Youre hardpressed to see why a company that is deploying new applications in a data center would look at what is a less reliable and low performance technology. The part the promise of Flash Technology is dramatically better performance in an environment or a world where Everyone Wants access to data at the speed of now, whether it is on your mobile phone, on a tablet, or a desktop computer in an office environment. That need for speed and the need for access to data with norv with no compromises around is where Flash Memory Technology comes in. They came from the Consumer Electronics technology for iphones and mobile phones and laptops and digital cameras have been using the technology for many years. It has now transitioned to the Data Center World and is hard disktraditional drive technology at an accelerated rate. The big concern is about security, risk to security, privacy, etc. Can you insure those involved that process is intact. We work with the worlds leading storage and server vendor. As part of aed system or solution solved by the worlds leading server vendors like lenovo, hp, dell, cisco, etc. We work very closely with them to ensure our rod x are integrated within the server our products are integrated within the server and that data is detected by the myriad of Encryption Solutions that they and their partners wrapped around a Data Center Solution based on their server storage technology. Sandisk currently a stay in utah, 7000 customers, almost 1000 employees, how does that merger shift the Corporate Culture and shift your direction . Sandisk has been a leader in the flash storage, last memory marketplace for many years and has really evolved from the Retail Consumer space into the the compute environment in the last few years. We acquisition of fusion io, are going through that process as we speak, will create a company with the broadest range of Flash Memory Solutions from everything from retail to the most High Performance demanding data center applications, where performance and access of data is at the speed of now where there really is no patience or companies are made or broken based on the Application Access to that data. That is the company that will emerge from that acquisition. We are going through the process as we speak. The acquisition is due to be fiscalwithin scandisks q3. Have a great trip in singapore and thanks for joining us. Thank you. Still to come, what is ahead for the indian budgets . Brace yourself. We will be live in mumbai. You have hong kong and cheyenne and shanghai opening a little higher. Financials driving the hang seng higher. The bank of japan maze today and tomorrow. He may trim back growth forecasts. 1 . Kospi up by one third of australia and new zealand looking like this. David jones, the majority 84 backing the takeover. Thing thelked kiwi topping australia as you can see. Singapore straits is declining as opposed to the rest of asia. Yellen will be speaking tomorrow and the next day. The beginning of the mumbai session, as you can see, clearly, the budget is still very much on investors minds even though it was last week. Indias benchmarks may triple in the next three weeks. This estimate comes from blackrock. Blackrock fairly optimistic. The big budget announcement overhang that we were watching, we did not see too many new announcements. Modi has definitely laid the groundwork for future expansion and expecting growth to next five 7 in the years as growing Business Confidence leads to spending. Corporate Earnings Growth will probably climb to as much as 20 from the 15 that we are at the moment and there is a high probability that the sensex could double in three years. , on thursday, the finance minister said holding deficit. Factor for that. More thank you for that. More after the break. Welcome back, we are live in hong kong and this is asia edge. The top stories this hour china boosts official commitment to electric cars. Singapores expansion has come to a halt. No overwhelming investor support for david jones. Hour,o coming up this china has some concerns. Apple has some reassurances. We will look at the claims and the denials. Cleaner and greener, foxconn launches an environmentally friendly land in china and we have a special report. Germany celebrates a fourth world cup with victory, beating argentina. All of that and more on this monday edition of asia edge. Stocks are advancing across the region. Different story this week as investors look ahead to key Economic Data from china and the bank of Japan Monetary policy tomorrow. A nice advance in hong kong and shanghai. Carmakers doing well today. In australia, keep your eye on commodityrelated shares. We see a fourmonth high