China. At thes take a look numbers as we begin this monday session. Stocks are rising. A bit of a rebound on the regional benchmark. The msci regime asiapacific, rebounding from a twomonth low. Optimism creeping back up. We have u. S. Futures rising. Emergingmarket currencies rising. This is from geopolitical risk taken out of the market. We are monitoring the events in the middle east and iraq. Lets take a look at what is happening as singapore and malaysia begin. You are seeing about 4 10 of 1 . Malaysian airlines, back trading today. Shares were suspended friday after struggling with losses for years now. Haslinda amin is looking at all of this. Airlines, a huge task in front of it. Absolutely. The shares are expected to trade higher this morning on the back of that announcement. Start. Llion buyback to it will be a challenge given that Malaysian Airlines has had two huge blows to its image, backtoback disasters. Even the Prime Minister said so. He said, piecemeal changes will not work. It requires an overhaul. Details will be released by the end of the month. Take a look at the shares. Currently, the stock is trading higher by about 8 , but year to lower by about 20 . Date, khazanah will pay shareholders a 13 premium for the buyback. Dont hope for a higher offer. Maybank says secondquarter results will be awful. Analysts have a sell call. Enough said. What are people telling you about what this airline would for iske after a revamp, it just too early to tell . Expect it to be leaner with the cost cuts. Malaysian airlines will fly to fewer destinations. It will likely get rid of its unprofitable routes could unprofitable routes. With airout competing asia. All Asia Airlines will not make that a priority. New you can expect his executives, new management, new leadership. Whether the measures are enough, the jury is still out. Some are skeptical. They say they need to look closely into their business model, what it wants to achieve in the longterm. They are not doing that. There have been successful restructuring stories. Japan airlines is a case in point. Bankruptcy in 2010, now back and profit. Swissair went bust in 2002. Now in the money with the new owner. Hopefully Malaysia Airlines shares that success story. All asian up by about 8 right now. Malaysian airlines up by about 8 right now. We are going to look at treasury wines. An unnamed private equity group matched the 5. 20 per share offer made by kkr. Analysts say there may be now a bidding war. Ibm says it has come up with the way computer chips can think like human beings. Engineers have developed a chip that is modeled on the brain. They say it is faster and more Energy Efficient and could help computer sense their surroundings and multitask. It hasnt said when the chips will be available but claims the technology could transform the processor industry. Alibabasts ipo, lifting all ships. Companies rallying after alibaba reported strong results in june. Having a look at chinese american depository receipts, it includes these companies. Alibabas ipo is expected to be held in september. Alibaba wasnt quite so for softbank in the last quarter. 68 , softbankll owning a stake in ali baba, and the company took a charge on the investment amounting to 600 million. Aboutare price is down by two thirds of 1 . On aagain, china relied tried and tested tool to spur growth. Were talking about credit. To askng is, im going david this, how effective this is. Thing we have seen not only from china, but from different economies. It is the efficacy of Monetary Policy and its limits. In chinas case, we have started to see that. For every one dollar of new ofdit for the first half 2014, you are seeing an extra . 20 of gdp. If you and to stimulate 1 trillion, you have to put up 5 trillion. If you compare that to 20122013 , the comparable growth in credit give you an additional . 29, and compared to 2007, that was north of . 80. We come up with the china monetary conditions index. We put together data from about 10 years. Three factors go into this. You look at loan growth, real Interest Rates, and the Real Effective Exchange rates. It tells you what the relationship basically is between the extension of credit or debt and how this affects the fundamentals of the economy. Is the are talking about right most part of the chart you are seeing. You see little bit of a bump up. It shows the fastest pace of loosening Monetary Policy number two years. You also have the big spike up they basically lent their way out of the Global Financial crisis to prevent things from getting worse. What the chart is saying, yes, it has worked, and the efficacies may be coming down a bit. Over the next two or three or four years, they cant go back to this old fool. Growth will obviously have to come from reforms, and they are walking a bit of a tough line at this point. Theyve got room to ease with the data coming out. A benign inflation. That was something over the weekend weve been discussing. The inflation data, 2. 3 , still below 3. 5 . We have been hovering about 2 two. 5 for the most part of the last three or four months. If you single out where the most inflationary pressures coming from, and there is a table that shows that, it is actually food inflation. 3. 6 . Energystrip out food and , cpi is basically 1. 7 . Lets look at the producer prices, something that will affect sentiment. Markets open up in about 20 minutes from now. It is showing deflation. It brings the street of monthly declines the street of monthly declines one economist we speak to frequently, he says perhaps the pressure on the central bank is not so much to spur growth but again to keep the borrowing costs quite low, one of which is the index we have. Weve got to get you back to the market action. Open in 20 hong kong minutes from now. Lets have a look at what is going on right now. Look at this rising asiapacific at the moment. Stocks are rising across the region. Dipping geopolitical tensions, laura lee is the prospect of it, and we see that filtering through to the currency markets. Dollaryen, you are seeing the yen lower, this on prospects of the market believing that geopolitical tensions in the middle east are improving. Militants onl and the gaza strip agreeing to an egyptian proposal for a 72howard truce. We will follow that and the latest developments in iraq. Emergingmarket currencies are advancing today. The korean won and malaysian ringgit. About 3 10 of 1 for the ringgit. Tell you about some stock movers we are following today. Airlines, look at this, down about 4 . The stock has tumbled in recent days. The sun reports the carrier will vacate narita airport, vacate its operations. They had canceled that contract for six airbus aircraft. Japanese wafer maker, the silicon wafer maker for the semiconductor industry. Shares are down because its profitand operating forecasts fell below analyst estimates. Rich stone tire in focus, sids 6 10 of 1 . It has raised its fullyear net and operating profit forecast. The stock is not seen in advance. Another star performer. About youxt have indeed sk telecom, down about 2 , continuing that decline. Some of theck on other stories making headlines around the world. Israel and hamas have agreed to a new ceasefire, clearing the way for more talks on ending the fighting that hissing the deaths of more than 2000 people. The truce took effect at midnight preceded by rocket fire. Israel says 30 missiles were fired ahead of the truce. Hamas once the blockade to be start any longterm agreements. Meanwhile, food and water is being dropped to thousands of people stranded in the mountains of northern iraq. The operation was launched in tandem with u. S. Air strikes against islamic militants who have seized large parts of the region. It is thought about 100,000 people from the yazidi minority when sinjar fell. The fighters warned the sunni or faceconvert to islam death. Prime minister is facing a power struggle with the new president. Named himself interior and defense minister in iraqs new parliament. Next, stocks and age were on the slide last week in asia were on the slide last week. A good day today. We will have a look at what is expected over the next five days. Just checking on some stories on our radar for you through the course of the next five trading days. With its instance out latest gdp release. Secondquarter numbers out on wednesday expected to have shown an economy shrinking following that sales tax hike in april. Analysts are predicting a shrinking of 7. 1 through the three months through the economy grew 6. 7 in the first quarter. On wednesday, Quarterly Earnings out of . 10, asias Biggest Internet Companies seeing its stock surge. A 50 rise in profit sales. The stock has been up more than one third. You can see a lack of margin decompression. Pope francis kicks off a fiveday visit to south korea. Of all be the first visit pontiff to visit asia in over a decade. He says he wants to shore up catholicism in this part of the world. Mark and the anniversary of the end of world war ii, Prime Minister shinzo abe is expected to not attend a shrine ceremony in designs to not worsen strained ties with china. He wants to the summit with xi jinping in november. Lets have a look at what we can expect for what Investor Sentiment is looking like right now. Joining us from singapore is an equity strategist. Thank you for joining us. Indeed, couple of brief rough weeks. Are we going to stop the rout . Helpedmarket hasnt been by the geopolitical tensions in russia and ukraine. Asians point in time, how markets and the Global Markets develop depends on the developments in russia and ukraine. We have seen over the last couple of weeks the tensions arising. Russia has put troops on the border of ukraine. There could be a possibility that Russian Troops would cost would cross the border. That would probably worsen sentiments for their. In the short time, we see more downside corrections for asian equities. How much of this is good to be dictated to you by fundamentals . You can point to the geological story, but even when we saw the downing of mh 17, we had a weekly advance. They shrugged it off. How earnings, and how is earnings momentum . At this point in time, we see Earnings Growth in asia to be about 12 this year. It has been a mixed earnings season so far. In singapore, we have seen earnings come in line with expectations. Elsewhere, we have seen earnings disappointments. Earningsia, we saw downgraded about 2. 8 . In hong kong and china where the earnings season is just getting started, we dont see a huge earnings disappointment, especially the chinese banks where the bar has been set quite low. We could see earnings, the casino stocks, as well as the consumer stocks. One company i just mentioned ncent. What are the sectors that are probably looking expensive . Do we have cheap valuations still . The point is, they remain cheap, but are they over the worst . Are you seeing a nascent bull market perhaps in china after recent rises . Sure. Referring to your internet sector, its an expensive sector. We are still bullish on china during this year. We have seen markets rising. Despite the recent rally, chinese equity markets are still among the cheapest in the world. We have seen an improvement in economic growth. We have seen improving pmi. We have seen a lot of targeted measures this time around. We see a finetuning of Monetary Policy. October, the Hong Kongshanghai mutual market access. That will be supporting chinese equities. We see a 20 upside from here. Lets just kick it out to one equity market, which is also an under performer, and we are talking about tokyo. Gdp data is expected to be a pretty horrible number given the sales tax hike, but there is an anomaly and these and the first and Second Quarters. If we get weak data, which we are expecting, is it already priced in in your view . To some extent, it is already priced in. Looking at 1. 4 gdp growth this year. Japanese equities, we have been positive. We see quite a bit of value way. A bit of value. On relative terms, trading at a discount to the rest of your developed markets. We do see a resumption in yen weakness coming forward. We see the dollaryen at about 105. That is going to help the nikkei 225. It is going to create quite a bit of demand for japanese local equities to a tune of about ¥11 trillion, approximately 4 of the nikkei 225 market cap. Jason, great talking to you. Have a splendid week. Weve got to take a break, but on the other side, we are having a look at how to take matters to new heights. Taking a tour of the five tallest buildings in the world. Just minutes away from the start of trading here and in shanghai. This is a look at futures. Up 8 10 ofet ended 1 . Positivity across the board. Lets take a look at a bit more detail as to what is happening. If you want to sell shanghai shares through the Hong Kong Exchange link, you need to set your alarm. The Hong Kong Exchange its shares need to be transferred before 7 30 a. M. It is to abouts the exchanges to settle trades per mainland rules. India, thatnk of income up for the first time in six quarters. Of 38 in this instance. The state bank has the worst bad loan ratio among its peers. The roadshow is improving, and growth is improving. India is getting its First Real Estate Investment trust. Property to boost development by channel investment into the sector. Regulators are approving the creation of rates of the weekend. No word on when the first of these investments will be up and running. How big is big . That is the question for todays ranks as we have a look at todays tallest and most imposing buildings. Lets tell you what we have coming up. We have a relationship that turned sour. We are going to be looking at why toyota and tesla are heading in their separate. Plus, does the open in hong kong. We have shanghai coming. It asiapacific equities well supported. Rally thising at a week after a couple of weeks of declines. You are watching on the move. Lex taking off a big jump from Malaysian Airlines. After receiving a competing taker. It is a rebound across the Asian Pacific heritage stocks are rising after two straight weekly declines. The stick look at this spat between singapore and malaysia. Engaged in a titfortat round that could cost vehicles traveling between the two countries a lot more. Haslinda, tell me something. Quacks quacks malaysia will raise its own charges on the causeway, no specified amount. If you are driving a malaysian car coming into singapore, expect to pay as much as 20 in additional charges for a oneday roundtrip. You will probably grin and bear it if you just make occasional trips, but if you are commuting every single day, that will suddenly add up. Obviously, singapore businesses employing malaysian workers will get hit. Salaries will have to be raised. If youre wondering, more than 15 million malaysians crossed the border to singapore for work every year. That is according to estimates from barclays. This additional levy will likely work against singapore, where aey are already having crunch. Uacks of course, gives idea of some perspective. Relationsin bilateral , you can call it that. The two are very close neighbors. Singapore was part of malaysia or mother what was expelled in 1965. Relations have often been likened to sibling rivalry. In recent years, ties have improved. The Prime Minister from both resolved the railway land issue, a thorn in relations for decades. This spat could mark a turn. Relations have always been tested. Issues like water, land reclamation, the relocation of the customs immigration complex. In the end, both sides always adopt a pragmatic approach. Theres a lot to lose. Both are very close neighbors. Thank you. This latest row between malaysia and the city state. Lets go to corporate headlines. Bank earnings falling short of estimates. The company taking a charge on 600 touch ofnt of 620 million. They lured customers with discounts. Ibm says it has come up with a way that computer chips can think like human beings. Engine. Engineers have designed a chip is modeled after human brain. It can actually help computers since the surroundings and multitask. Ibm has not said when the chips will be available. The technology could transform the processor industry. Amazon has blocked the free order option for disney dvds including tax in america. Amazon has used this tactic with anyer bros. And the dispute over lowering the price. Four years ago, elon musk for a ride inys his new set of wheels. The relationship went sour and analysts say we are unlikely to see another test. We have the inside line on the story. How did this partnership come about in the first place, before we have a look at what went . Rong yet drive in theed a roadster, the sports car that tesla had in its lineup at the time. It was not making the model as just yet. It was unclear as to whether or not tesla would end up a Successful Company as they have turned out to be up to this point, or if they would go the way of fisker and have trouble like every other entrance to the Automotive Industry has had since chrysler started up. It was a. Where toyota was struggling with recalls, where they were closing a plant in california that they operated with General Motors for some time. They were looking for somebody to take over that plant and tesla showed interest. That was really where it all started. They decide from there to build a rav4 electric vehicle. Specificabout the efforts is between engineering teams . What is the deal . Mentioned that the relationship to go south. The problem was, you step back and look at these two companies and they really operate like night and day. Tesla is a fastmoving company that really engineers as they go along. They make changes on the fly and they have done updates to the air werewe over the you flash an update to the car. Does not operate that way. They have obviously been an incredibly Successful Company, but they are really not a company known for being fastmoving. They are deliberate and careful and they make decisions for the longterm. The specific problems they have had were parts that the battery case, which toyota was not pleased with the intent to dust extent to which they felt the case would protect the battery vehicle. V4 tesla has had trouble with the model s battery. Some highprofile fires and an investigation in the u. S. That really ended when tesla decided to beef up the protection of their batteries. Stats betweenng the engineers that are particularly interesting now that we look at some of the problems that tesla has had with its model s, which otherwise has been incredibly successful. Is there any chance these two companies have a future together ye . The plan from the beginning was three years of production from his vehicle at about 2600 units. Were coming up on the end of this model at the end of this year and they are short of 2000 units sold. , the modelrspective as did 20,000 last year. The future dofor not look very good at this point. We will find out what is happening market wise as we get back to hong kong. Zeb is having a look at the action. Member friday was down. Developers today. We have some news and you can see the Property Developers moving. The news today out of china is xinhua news reporting that china may adopt a property tax in 20 16. I want to give you a sense of some others that are moving as well. Hong kong and shanghai listed. I pulled together a mix. We have some results and sales data. 1. 1 percent at agile property. These are Hong Kong Listed shares. Value downe significantly. Below what analysts expected. Today gemdale up today. 3 advance for the stock. 3 . Act sales were up we are an upside there. Dismalwo shares by some july contract sales numbers. Interesting to see that in the chinese market. China,perty market in the imf warns that it is the biggest nearterm risks to the economy. Rish . More on the stimulus plans from beijing. We will be headed over there after this very short break. Rate inis the fastest almost two years. Lets go to beijing. Tom or nick is there. Tom, how does this all work . What is going on exactly . China has been showing some at thepositive states last month. Secondquarter gdp growth rebounded. Tot is really behind that . Answer the question, we have constructed a monetary conditions index. We look at loan growth and real Interest Rate to understand impact of Monetary Policy on domestic demand. Look at the Exchange Rate to the impact of Monetary Policy on driving International Demand for chinas exports. When you put all that together, what you see is that in the Second Quarter, we saw a very rapid loosening of Monetary Policy. As you mentioned, the most rapid loosening in the last two years. That is what is underpinning chinas growth. The positive is that expectations are that july was another month of strong loan growth and that suggests monetary conditions remain relaxed. We can expect chinas rebound to have lights into the third quarter. Withegative is that chinas banks looking overstretch, with big concerns about corporate debt, there are serious questions about how long this looser Monetary Policy can be sustained. Picture isgrowth showing a rebound. It looks like we bottomed out. Have we left the slowdown behind us now . For now that is the case. Consumer price index data for july came out over the weekend 2. 3 , unchanged from june. To, therel bank wants is room to do a little bit more in terms of monetary easing. The concern from the central bank is that lots of the money continues to go to the bad old unreconstructed areas of the economy, luxury, Property Developers, creaking parts of the state owned sector. In recent months, thereve tried to take some innovative moves to direct credit to newer, higher Growth Potential areas of the economy. Missing cuts in the reserve requirement ratio for banks that lend more to small and mediumsized enterprises. Recently, with scenes of very strong rumors in the market investmentn many Bank Analysts that the central bank has made a massive credit line available for China Development bank to try and direct funds to the Government Program of affordable housing. That. Nks for kong turn to these hong and shanghai markets as they prepare to move closer together. We have had investors take a closer look at where to find value and where not to as well. That is the subject of todays Global Outlook. A veteran banker in hong kong now runs a research company. He runs that she ran a comprehensive credit check up. Buy,nclude which stocks to he measured how effectively corporations manage their balance sheet. His methodology used what is called the altmans z score. It sounds complicated but heres what it looks that, efficiency, process profit, asset turnover, working capital as well as debt level. He studied companies with 1. 5 trillion in market cap. That is about one third of combined market cap in that combines the largest Chinese Companies. And propertyties stocks face the biggest challenges. That is consistent with recent warning by the imf on the Property Market area and heres what he is a warning against buying. , the water supplier to the metropolis of challenging. Of chong ching. Two major utilities. These stocks have had to train 9 and 11 negative returns this year. Where can you find some upside . Financials are favored. They like China Construction Bank and citic securities. Banksr among the chinese outperforming their rivals. Energy shares, weve been talking about them a moment ago. Rating highly for its positive fundamentals and return on equity. Space,healthcare shanghai farkas pharmaceutical has a 9 return on equity. He expressway operator in the industrial space, designs and operates toll roads as well as fueling stations in that part of china. This is the Hong Kong Monetary authority as the authority continues to inject money into the system to protect the currency peg. The hang seng tends to trade higher when the hong kong dollar appreciates. As a check of the Global Outlook for today. I am zed eckart. In terms of responding to customers on social media, how important is it. They got some surprising results. Well tell you about them when on the move returns. Media consultants social bakers has released has released its socially devoted brands. These are companies that rank highly on the Customer Service response list. Simon . I thought your name was jason. Tell me something. Asked, facebook, what do they all do differently for a company . I think what were seeing is that social media platforms are experiencing huge amounts of growth. There are obviously different those platforms. Ever take a step back, brands have realized that this is where the eyeballs are. Long gone are the days or tv ads and traditional bumper line advertising was the only way to reach a market. Brands have gotten interested in facebook and twitter and interest and other iterations. This totally civil totally devoted brand on facebook. Klm is topping this list. You need to respond to 65 of the questions that are being posted on the social platform. Whether it is twitter face book. I think the consumer makes up their own mind in terms of what their preferred channel is. With klm, if we look at the industry vertical airlines, sometimes it can be quite serious and urgent matter when you need to engage with the passive organizations. Klm has asked has responded extraordinarily well. Is interesting to see two Bangladeshi Companies here. Is a great example of how some of the emerging markets are realizing embracing this new technology. Exactly. One, it is a very cost efficient consumersponding to requests. Secondly, if you are using a channel to communicate with an organization, it makes complete sense to respond using that same channel. , what is the difference between a facebook social devotion and eight twitter social devotion . I think twitter is much more micro conversational. It is more noble and responding to conversations. Telkomsel is a way that Indonesian Companies are following this. We see a bit of a trend here on twitter which rather than the airlines is more technologybased. Some Technology Companies may have complicated products. Theres up to see a lot of turnover with mobile phones. This is one of the reasons why twitter is an effective channel. Quick skip me an idea of some ways of gauging this. What actually would people be . King what were seeing in the telco industry is communities starting to self govern these Community Platforms themselves. It might he about the new Samsung Phone or the new iphone and what is better and what has the features and what doesnt. Those types of conversations are happening. Online,viously an ecommerce player. It is more than likely, where is my delivery . How many of these companies have actually look atstaff simply to social media and engage with social media . Are we saying that all these companies have that . What the report has shown is are only 5 of companies actually socially devoted. Only 5 are responding more than 65 of the questions. It really depends on the profile, depends on how eager they are to embrace this new wave of consumers. Have actuallyions dedicated teams for Customer Service. Which of the worst people at social media right now . There has been some spectacular social media fails. Idea, because your fun. There is a highprofile case of an airline that did not respond to a customers problem about some lost luggage and even though they are running a 24 seven service, the social Customer Care team are only operating 95. The consumer decided that the Customer Service experience wasnt good enough and decided to promote a tweet. That tweet was seen by 78,000 people before the social media Customer Care team came online. This thing can bubble over the top of it is not managed well. It certainly can. Simon, thank you for joining us. Bakers, talking about klm being the best on l toppingand telkomse the charts with twitter. Of course, it is easy to stay in touch if you want to. You can follow us on bloomberg tv. You can follow me at my handle. If you have any questions, please feel free to contact me and join the program if you wish. Now raphael and michelangelo, the turtles are back and back on top. Hermann survival of the 1990s franchise is raking in 65 million at the north American Box Office over the course of the weekend. Thatll leave student disneys guardians of the galaxy at second with 41. 5 million as well. Up with the next 60 minutes of on the move, asia getting the chance to see what it is like being an astronaut. Find out more about this in about 45 minutes as we get a way gravity coming your to a town or city across asianpacific weird this is on the move. This is on the move. So i am reshot salamat in hong kong. Rishaad salamat. Jumping on plans to go private. The growing taste for treasury wine. Chinas rebound has legs. Suspended on friday, the shares at least. Malaysia airlines resuming trade and moving to the upside or the carrier preparing to go private after struggling with losses for years. Our Southeast Asia correspondent haslinda has a report. So far, so good, in terms of how investors are reacting to those restructuring plans paired up about eight or sent this morning. It rose as much as 10 . Investor support reacting for the First Time Since the buyback plan was announced, costing 430 million. Under the lifeline after billions spent already in the past six years. It will be a challenge, especially given that Malaysia Airlines have had two blows to its image, backtoback disasters, mh 370 and mh 17. Piecemealent said changes will not work. It requires an overhaul. Lets take a look at Malaysia Airlines shares with todays gains. Malaysia airlines still down 16 year to date. Paymajor shareholder will shareholders a 13 premium for the buyback. Forget about a higher offer if you are thinking about it. They say it will not happen. Will beuarter numbers awful. 13 out of 15 hours we track of the Bloomberg Cap sell rating on the company. Is, this airline will emerge on the other side of the revamp looking like quite a different entity. What people suggesting that it will be like . Hopefully it will look like another entity. It will be trim and probably fly to fewer destinations. It will likely get rid of those unprofitable routes and forget about competing with air asia in the budget it was doing that before, not now. The center for aviation. It says Malaysia Airlines will not make that a priority. But you can also expect is new management leadership, whether the measures will be announced, it is really hard to say. Some are pretty skeptical. They say the carrier needs to look closely at its business model. Also, what it wants to achieve in the long term. That is not happening. Theyre not doing that just yet. Still, having said that, there have been successful restructuring stories. Japan airlines, case in point. , now inprofit, swissair the money as well. Hopefully, Malaysia Airlines will share that success story. Linda. Nks for that, has lin indeed, what are we looking at here. Lets you is happening with the airlines today. A mixed story. We have an update for stocks across the region, but dont be fooled. Some of airlines in japan having significant downsides today. Limited to through it. The nikkei two to five in the broader topix index look like this. It 2 advance on both of these indices. Risk. Itical less so in the minds of investors. That is why you will see the yen and Precious Metals pulling back. Look at this, the stock is unchanged. Perhaps a chance for the stock to gain. Nikkei reports it is a abandoning its plan to buy airbus a 380. We have reported on this for several weeks now because of financing issues. Last week, skymark says it is considering a withdrawal from Narita International airport. Its fortunes are dismal at this point. Skymark is a domestic carrier in japan. It had big ambitions for international expansion, however, those ambitions appear like they will not be realized. Nick ondown 4 erie it Airlines Shares are rising, but we had a big typhoon yesterday. Two people killed, Dozens Injured when a typhoon slammed into western japan. On saturdayfall morning and continues through the weekend. We saw hundreds of flights canceled. All nippon air said today that 500 come 500 passengers are impacted. Japan Airlines Yesterday canceled upward of 160 flights on the typhoon. Jal saying over the weekend canceled 157 to mystic flights. 620 passengers affected. Services in western japan also impacted. This is the peak of the Summer Travel season am i yet there are significant inner travel disruptions today in and around tokyo. Across japan, whether youre con site or elsewhere. You want to watch your flight arrival and departure information. Other news ahead of us, ali baba is lifting all the shifts. Vip shop. Including we have an index of chinese adrs, this includes these companies at least. To bebas ipo is expected held in september. Ali baba was not so profitable last quarter. The net income of the japanese telecoms carrier falling 60 . The company took a charge on the investment. Softbank saw its slowest subscriber growth. They were on their way down at the start, but we are moving to the upside alongside the rest of the asianpacific area if you want to sell shanghai shares through hong kongs new exchange, you will need to set your alarm. To be x says shares need transferred before 7 30 a. M. The boss says that is all to allow the exchanges to settle trains trades for mainland rules. Theyll start beginning operating on october 13. Treasury winds up today, a may ensure that another suitor has emerged. To paul allen in sydney. We were doing about this rival , then the tables . Well bidders want to remain anonymous. ,he media has decided that tpg quoting my favorite source, those familiar with the matter. The mistry firm, lets call it that, has said there is no certainty that it will result in an offer. Its proposal is conditional on a number of matters. They are offering 5. 20 a share. Ands not the same as kkr ronan offered last week. Kkr is doing to childrens. The offer at 3. 2 billion. That is an improved offer from one they put on the table back in april of 4. 70 a share. That is an 11 increase. Now we have two offers on the table at 5. 20. Privateugh there is equity firms think their offer is fair value, the market thinks something different. Shareholders may well be anticipating a rather enjoyable war. Ng mo no great news for shareholders. That is something of an understatement. The bad news was flowing much like the wind at treasury at the start of the year. That annual chart really does tell the story. If you look back in january, that is when the bad news really hit to do with these impairments. In 2013 they suffered 160 million in writedowns. Beleaguered with oversupply issues. They had to dump stock quite literally digging a large hole in the United States and pouring the wine into it. Things have since improved since the bids are put on the table. If you look at the big bump they got in april when the kkr bid was first announced. It traded considerably higher than that. Ever since. Now we have it parked at five dollars 23 this morning. It could be fair to say the story has some legs. Paul, thank you for a much. Paul allen for us in sydney. Youre watching on the move. Co. Black, white and mostly gray. Our next guest takes on a murkiness of doing business in china. This is on the move. C to you from Central Studios in hong kong. Ure watching on the move were talking credit once again. The case. St what about the effectiveness and what about the efficacy of it all . David is here to take us through the details. They did it was back in 2009. To some extent, that also goes to the factor of how efficient the efficacy that she efficacy of Monetary Policy. They continue to do it. Take a look at this new index. Is a monetary index conditions index for a new . Down a fraction. At is 82. 8 mean . Rates,have really just or basically how low borrowing costs have become. And have the real Exchange Rate which shows how attractive the exports of china actually are to the rest of the world. Also that the altogether any of this new toy that economists can play around with it is a snapshot of what is really behind this recent pickup in chinese data. You will see an explosion. Last week record trade surplus for example. Loosening, aa relaxing of Monetary Policy. Haver as what policymakers affordable housing, agriculture, small business. Will it continue . What theyre saying is it has worked, but the efficacy is coming down. For every unit you get slightly smaller benefits. What were basically saying over the next two or three years is it has to be reformed. Eventually it will take old. Which is what the imf has been saying. Lets talk about the conditions indexes. Was going on with the economy given that money supply data new loan Growth Numbers . That number could come out as early as today. There are two things i want to point out. Billion out erie it 127 is equipment for july. That would be the highest amount we have seen for july on record. 175 billion. Money supply and to the broadest 14. 4 , which is reflected when you look at these rates which have actually come down substantially from early this year. The stock about difficulty between business in china. At the same time, western Companies Including mercedes, audi, microsoft, all under investigation by beijing for possible antitrust that violations. Our next guest comes from chinas streetsmart. The author of the book joins us now from shanghai. Thanks for coming on the program. This talk about Peter Humphrey trial here on friday. This gives of the problems and the murkiness of doing business in china, or is this all quite egitimate and above board . Thanks for having me on. The key thing about what has you have i believe, is to understand how the local market operates. The government has a vested interest in protecting its viable assets. I think the key thing is to focus on doing business. If you focus on doing business, you will be far better off. Such as having the right goods and services for what the local customer needs. That is the thing, john. You can look at all these rules as they come up, but then suddenly, there is a whole new set of parameters you are having to deal with. It is just a case that they can make up their minds willynilly . Of course not. The fact is that a lot of people complained about these moving goalposts that is constantly happening. The fact is, china is an evolving economy. As a natural aspect of how china is going to operate. You get a new set of rules, people will start trying to figure it out. The government likes to make the rules of little bit vague and then look at how the reaction of the market reacts to the market and then based on that, they can clarify. I will give you an example. That was all about the lobbying group for counterfeits in china. Basically, we hailed it as a huge victory when it became a criminal prosecution if you were caught with less than 5000 euros dollars with counterfeit goods. The key into implementing the law is how to captivate the value of 5,000 . Is saying umbrella with sells retail for 800. The type of interpretation, you have to work with local officials to really try to figure out what is the strategy for your company. Introduction, all these carmakers, microsoft is well, all are suddenly being investigated by authorities. Tell me why that is the case. Lets take this into account. What youre referring to are the multinational companies. You dont hear about all the thousands of potentially local companies that also coming under scrutiny. If you look at lucian as an example, there are new sets of pollution law coming out all the time. National Companies Might be targeted in the beginning, but i can guarantee you it is a matter of time and inspect it, because Chinese Companies are getting shut down. If you look at what happened in a province that surrounds beijing, last year over 8300 companies, and i guarantee you the vast majority of them are all chinese, were all shut down. It is not just a microsoft and the Large Multinational Companies that are coming under scrutiny. The key is, it is a matter of perspective in terms of your time horizon. I guarantee you, the law applies to everybody. You said that companies should just use common business sense. Far have these companies not been doing that . Is what of the reasons why they find themselves in a message they are in . Ok, once again. If you define that these companies are in a real mass, companies vote with their feet. Companies are staying put in china. Troublesome rules and regulations of people he do follow, but trust me, ive been in china for more than 20 years and i can tell you that in the early 90s, it was far more vague. China is moving much more to the international norm, so to speak. Now and getting easier for Foreign Companies to do business here. I can certainly appreciate the fact that people dont want to be under scrutiny. As long as you stay within the parameters, you will be ok. John, if final question here. To the are we going rules of a base system which we trusted and transparent . How far e away from that . The simple reality is that china is an evolving economy. It is not black and white like we have in the west. It is 10 white, 10 black and 80 shades of gray. How you operate within is 80 shades of gray really determines how successful you will be. If you look at law firms, you will assume that law firms is your to the law. The fact is that theyre been operating as a rep office which means you cannot generate income. Writer to 10 years you could not generate income. Guess what . Theyre generating tons of income. Theyre doing it by billing offshore. In couldnt operate more more than one city anytime. They set off a bit dusty set up offshore Consulting Companies and other cities. It is how you operate a learn to operate within the rules and use those little bits of gray to your advantage. Believe you me, a lot of these companies, including microsoft, are all getting a lot more. Reetsmart are japan has been mopping up after the typhoon. We have more on the latest of the storms fury. At least one person is reportedly dead in japan and around 70 injured after the typhoon. The storm brought torrential rain with winds gusting up to hitmiles an hour when it land. It disrupted air and rail services. The storm dumped a meter of rain in an hour in some places. A longdelayed code of conduct for the South China Sea was not enough and that all claimants must justify their positions under international law. Turkeys current Prime Minister wants to be president after his rivals have admitted defeat. He got 53 of the vote and that removes the need for a runoff. In his 10 years of premier you seen an average of 5 growth in turkey. He wants to transform the presidency from a ceremonial role to one that combines head of state with head of government. Israel and hamas have agreed to a new 72 hour ceasefire, clearing the way for more talks and ending the fighting missing the death of nearly 2000 people. The truce took effect at midnight local time preceded by rocket fire across the border. Israel says at least 30 missiles were fired ahead of the ceasefire. Hamas wants the sevenyear blockade of gazas borders to be lifted as part of any longterm agreement. It lets check some stores were watching out for starting with japan and Second Quarter gdp figures. Theyre out on wednesday. Theyre looking for contraction of 7. 1 in three months to the end of june. Gdp grew 6. 7 in the first quarter. Biggest internet company. We have seen a stock surge ahead of the results. Predictions of a 50 rise in profit and sales up more than one third. Pope francis is due to start a fiveday visit to south korea on thursday. He will be the first pontiff to visit asia and more than a decade. His aim is to shore up catholicism in this part of the world. Friday marks anniversary of the end of the second world war. Prime minister schanzer oblate is expected to refrain from a shrine to avoid straining ties that japan shares of china. He wants to clear this clearly air for his summit with thesing paying in with chinese president in september. Whenll be live in jakarta on the move returns after this very short break. Rebound asia, stocks after a two weekly decline. The defeated candidate will except the legal ruling on that result. Lets get to jakarta. Tell us a bit more about this. The court has heard testimony tom as many as 25 witnesses challenge the Commission Decision on the president ial vote last july. He claimed the victory of his opponent joko widodo was done unlawfully. The last challenges chance. The hearing resumes today. How big are the chances of prabowo of winning this . Analysts are set in that they chance is pretty slim, especially with the sixpoint margin between the two candidates. Survey shows 78 of voters are satisfied with the election showss and only around 2 dissatisfaction. Eight and when the court decided a national and even when the court decided a national revote, the survey showed that prabowo would only win 39 . Ording to provoke lows brother, there will be a concession speech. The court is due to announce his ruling on august 21. Thank you. A check on indonesias neighbors and how they are trading this monday morning. This is consistent with the general rebound across the region. We have lessened geopolitical risk in the market. That is leading to increasing equity risktaking by investors. Like yan andhavens Precious Metals, gold, platinum, palladium all of them back in this market. Across the screen from the philippines to malaysia to singapore to jakarta. Gains today. Thailand closed for a National Holiday so no trade there. You do see gains for the most part in south asia and Southeast Asian currencies. The rupee is forward moving. In the ring it is also and the ringgit is also. Gas is in focus today. It has been raised to market perform from underperform. The price target is 21. 54 malaysian ringgit. Tell, lays up in the session. 3 . And ytl is up. 6 . We have sinned well as well as all on international we have olamel as well as international. Thestock that is leading on downside is covered dobro comfort delgro. It is the taxi operator. It is down 1. 1 . Thank you for that. Lets have a look at some of the other stories we are following for you this morning. Net income rose for the first time in six quarters, up 38 . Shares have rallied on bets that the indian new Prime Minister will booth boost growth. Higher taxes, the costly legal battle with sothebys largest shareholder. Ibm says it has come up with a way computer chips can think like human beings engineers have developed a chip that is engineered on the brain they say it is more Energy Efficient and can sense its surroundings and multitask ibm has not said when the chips will be available but claims that technology could transform the processor industry those are the top corporate. Eadlines if you are looking for melissa sent, you cannot. It worries a lot of people. Maleficent, you cannot. It worries a lot of people. Done is itave is important to know that amazon offers trials in preorder for its online streaming service. What it is blocking is the preorders for dvds. Weve seen that happen with captain america. Transcendence on the lego movie. The point of all this is the hefty position they are in to demand better pricing from its vendors. Disneye analyst says cannot cut off amazon but amazon can cut off disney. That is the reality. They have built this, whatever you want to call it, this ecosystem. It is not just the movie industry. The film studios, i have been hearing complaints from publishing houses, that they need to go through amazon. If they dont, they are not going to sell books and it puts pressure on them. It has allowed them to reach users they could. It they could not previously reach. Amazon is actually using it against them. There is an example between the standoff of amazon with this french publishing group. Saying thatsically lower book prices lead to higher sales and authors and publishers are not exec lee terry keen at are not exactly very keen at commoditizing. The paperback has not created the same destruction with what a lot of people were seeing when you come up with a book, which is 10 times cheaper than he hardback. And now there is ebooks, which is slightly cheaper than the paperback. They say it is not going to cause a big problem. In fact, it will increase your sales. It is a continuing story, but an example of how you have one company that has all the leverage and eight content providers who are nicely sell the content through this big company amazon. Remember the turtles . They are back on top. Revival ofamounts the 1990s franchise, raking in 5 million at north American Box Office is over the weekend. It beat out disneys guardians of the galaxy. Us dons,usiness of 8711 is the Company Behind them, including ninja turtles, hunger games, and others. Performer,e stunt you are maybe one of the coolest people on set because we get to play for a living. They do the action sequences from beginning to end. We choreographed fight sequences and then we execute them for the actual movie. The performers we have our incredible acrobats. Some of them have an advanced background in breakdancing. You need people with extreme talent. I dont have a fight background at all. I literally threw my first punch when i stepped foot in this gym. Hunger games is more running and jumping. Something like xmen is more fighting and the. Martial arts let me get into stunts and then build this company. There are actors who can do 90 percent of their own stunts and they can do them better than the stem performers. I would say brad pitt and matt damon. Hugh jackman is one of those freakish athletes. There are a lot of chicks to the trade. Moretunt double is prominent in film than you really realize. Them, the disguise way you photograph them, a lot of it is rigging oriented. The photography that we apply to green screen elements that make us look like we are in a dangerous spot. An action sequence or a fight screen fighting, where you cannot see the face, i would say it is usually a stunt double. Most of the time, they are not hitting each other and making contact. There are accidents were people do get hit. Definitely bruised up a lot. Had kneeally, i have reconstruction and i have broken my wrist and i have had a couple of concussions. It is a part of the job. You accept the risks when you get into stunt. Got more on the Film Industry coming up later on bloomberg hollywood. James cameron joining charlie rose in his studio, the director between titanic and avatar. The business and inspiration behind his movies. I got to have the privilege to dive to the real titanic wreck in 1995 as part of the movie project. It is not an exaggeration to say that i made that film just so that i could make those dives. Of course, i finished all the dives and i still had to make a movie for the next year and a half of my life. When you make a movie like titanic, and also with avatar, you say i will make it as big as i as big as i can possibly make it and as real as i can possibly make it. Your engineering skills as well. Absolutely. Were always looking to technology for every film to realize that vision or to put the camera in a unique place or give something to the audience they have not seen before. You can watch charlie roses whole interview with James Cameron tonight at 11 00 this evening singapore hong kong time. The law of gravity does apply for my next guess. I will tell you why when on the move returns. Its like know what to defy gravity. More with the asia vice president. Tell us what it is. How does zerog work . Or thatve an aircraft is being modified in order to do parabolic flights. That is going up and down. Yes. We accelerate so people get a bit of geez gs. 20 to 22 seconds, people feel no gravity or less gravity as we go down. 35 knows my and then 35 nosedown did yes. Roughly 20light is minutes because we have to go to specific spots where we can do have 20neuvers and seconds of zero gravity for 15 sessions 15 times in one session. Normally, we would reserve airspace in the shape of a triangle. Singapore is a very tiny airspace, same with hong kong. So they will block is a corridor rather than a triangle and we will do this back in forth for an hour to. An hour or two. Do people get sick . People got sick in the vomit comet. The differences this was made for professionals. Astor not soon training do 60 or 70 parabolas during a flight. If we go beyond that, people can get very sick. How does the experience compared to that one . Is thething we are doing parabola would be much more precise than anything ever done before because it will be electrically driven. So no manual commands. A precise parabola, a smoother ride if you wish, and only if it came parabolas so everybody can 15 parabolas so everyone can enjoy it. It aint cheap. Yeah. We want people to experience this. If we go to space eventually. Well its cheaper than going to space but it is no expensive for 100 minutes of going up and down. The000 euros, that is cheapest option for three. And you would get 15 parabolas. Yes. 5000 euro for premium and vip passengers. Is that a different class . There is a vip room that i can hold 10 or 12 people. The aircraft is separated in three zones. The vip room works well for corporations and families and friends. But the experience is going to be the same. Yes, but we may have some activities that are different from one zone to the other. Difference is really because our sponsor is including the price watch, time fees, limited edition, not available in stores. And you would get that available that she would get that as a bip. And you would get that as a vip. What do you get if you pay the 2000 euros . You cant keep the suits. You just have the experience. You have pictures and video. For 5000 euro, you keep the watch in the suit and other goodies. How much does that watch retail for in the store if you buy it . We would have to ask breitling. Im not sure that they would tell you. Blacka very nice watch, titanium, limited edition. You are marketing this already. We are not marketing it. But here you are in this program. Some ofwe are meeting our sponsors, partners and investors but we are not officially marketing it. Breitling is doing a good job marketing the watch. We are going to Start Marketing in midseptember, once we are closer to the launch date. What is the overall reaction like on the run up to that . Very interesting. Thoughstinations, even we have not started marketing it, have already sold out. There are people calling us from countries that we have not planned this a we want you to come to my country and i will underwrite to floods or three flights. Flights underwrite to or three flights. I will sponsor them. So please come to my country. Thank you. Next, back in the bank. Indians indias finance minister and details after the short break. Sart ofing down to the the trading day in mumbai. Message. Nt to know the very good morning. Morning. This was the finance minister meeting, a urgent report meeting. A budget report meeting. The governor has some intention to face on this front with the former finance minister. Important symbolic way from that sense. The governor had maintained status quo on benchmark Interest Rate, including the cash reserve ratio as it tries to fight highdefinition. High inflation. Cpi has spiked to 11. 2 in november of last year. With three interestrate hikes from the governor, it has brought down inflation in june. While the government has taken on several measures recently, foods anddelisting theing rice on the market, month sans about 17 and has added pressure as far as the food inflation goes. Also, bringing the economy back from the 5 growth levels and r. B. I is in discussion with the government to approve a Monetary Policy framework that would adopt a former cpi target. Those are the comments from the governor yesterday. Thank you very much. You can find it easier and easier to stay in touch with all of us. You can go to bloomberg television. I am always available for any comments you have to make during the show. You can follow me on twitter. That is it for this monday edition of on the move. It is asia edge coming up. Join us as we recap the stories of the day so far. Asianomics founder jim walker will join us. Asia edge. Malaysia airlines up in on plans to be taken private. The growing taste for treasury one. New suitors made a bid. A rebound across asiapacific. A change of tack. Indonesias been president ial candidate says he will accept the legal ruling. The latest on this letter from jakarta. When a relationship sours tesla and toyota had big plans for the future. But now they are going their separate ways. The inside track on where it all went wrong. And where does a economics go a ande edward is where does abenomics go from there . We are coming off a twomonth low inequities. Investors going back into the equity markets. They perceive the geopolitical risks are less than last week. That is why we see gains. New zealand of the exception and the anon the exception. Up. 3 re and malaysia,